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Planet Money

Jay & Shai's debt ceiling adventure

Planet Money

NPR

Business, News

4.6 β€’ 29.8K Ratings

πŸ—“οΈ 18 February 2023

⏱️ 27 minutes

🧾️ Download transcript

Summary

Every year, the U.S. government spends more money than it takes in. In order to fund all that spending, the country takes on debt. Congress has the power to limit how much debt the U.S. takes on. Right now, the debt limit is $31.4 trillion dollars. Once we reach that limit, Congress has a few options so that the government keeps paying its bills: Raise the debt limit, suspend it, or eliminate it entirely.
That debate and negotiations are back this season. One thing that is in short supply, but very important for these negotiations, is good information. Shai Akabas, of the Bipartisan Policy Center, knows this well. Right now, he and his team are working on figuring out when exactly the U.S. government could run out of money to pay its obligations β€” what they've dubbed: the "X Date."
Shai is determined to help prevent the U.S. government from blowing past the X Date without a solution. But this year's debt-ceiling negotiations are not going very well. Which is daunting, because if lawmakers don't figure something out, the ramifications for the global economy could be huge.
So, how did Shai become the go-to expert at the go-to think tank for debt ceiling information? It started in 2011, back when he and current Chair of the Federal Reserve Jay Powell, armed with a powerpoint and the pressure of a deadline, helped stave off economic disaster.
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Transcript

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0:00.0

This is Planet Money from NPR.

0:06.4

Every year the US government spends more money than it takes in.

0:10.0

And in order to fund all that spending, the country borrows a lot of money.

0:14.1

It takes on debt.

0:16.0

Congress has the power to limit how much debt the US takes on.

0:19.5

Right now that debt limit is $31.4 trillion.

0:24.4

And for the government to keep paying its bills, Congress has a few options.

0:28.9

It could raise the debt limit, suspend the debt limit, or eliminate it entirely.

0:34.1

And now it's go time.

0:35.5

It's debt ceiling season.

0:37.2

Republicans and Democrats are at it again.

0:39.2

And one thing that's in short supply, but very important for these negotiations, is

0:44.2

good information.

0:46.1

It's important to any negotiation, but one where the balance of the economy is at stake,

0:50.7

yes, seems extra so.

0:52.2

Which is why a couple of days ago, people are starting to show up.

0:56.6

Oh wait, they're hiding.

0:58.0

I went to hang out with Shai a cabbess.

1:00.2

Hello.

1:01.2

Hi.

1:02.2

Shai has a very important role to play in these negotiations.

1:04.9

He's got a reputation on both sides of the political aisle for telling it as it is about

...

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