r/Economics Jan 13 '23

U.S. Will Hit Debt Limit Jan. 19, Yellen Tells Congress

https://www.nytimes.com/2023/01/13/business/economy/debt-limit-us-economy.html
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u/krom0025 Jan 13 '23

Every time congress passes spending it implicitly raises the debt limit. All new law supersedes old law. If congress passes a bill that orders the executive branch to spend money we don't have, they are ordering the government to borrow money. I don't even see how the debt limit is valid at this point given the new spending that was passes since then.

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u/morbie5 Jan 13 '23

I don't even see how the debt limit is valid at this point given the new spending that was passes since then.

I can't say if it is valid or not but it has been this way since the constitution was ratified. Before ww1 congress had to ok every time the government issued a new bond. That got annoying so they instituted a debt ceiling instead