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In recent debates over averting a government shutdown, Congress has discussed increasing or eliminating the debt ceiling, an unusual demand from President-elect Donald Trump and Republicans. The debt ceiling is a limit set by Congress on the amount of money the U.S. Treasury can borrow to pay its bills, with default looming if the limit is not raised. This would have severe economic consequences, affecting everything from Social Security to U.S. service members’ pay. The debt ceiling was introduced in 1917 to manage debt obligations during World War I and has been raised 78 times since 1960, with Republicans and Democrats both contributing to increases. The U.S. has a high debt-to-GDP ratio, leading to concerns about ongoing spending and political gridlock. Democrats have long advocated for eliminating the debt ceiling, and President-elect Trump has expressed support for this idea, citing the need to cover spending obligations in his second term. However, Democratic leadership views the elimination of the debt ceiling as a nonstarter, positioning themselves as guardians of fiscal responsibility in the face of increasing debt. Despite the debate, the elimination of the debt ceiling is a contentious issue that highlights the ongoing struggle to manage government spending and fiscal obligations.

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