---
title: We’ve gotta talk debt ceiling — and you’re already asleep
description: This federal spending talk can be painless, we promise.
---

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# [We’ve gotta talk debt ceiling — and you’re already asleep](https://hs-sbup.thehustle.co/news/we-ve-gotta-talk-debt-ceiling-and-you-re-already-asleep-9)

 Written by [Ben Berkley](https://hs-sbup.thehustle.co/news/author/ben-berkley) | Jun 2, 2023 11:59:15 PM

We get it — most of the population sees “debt ceiling” and their eyes roll back so hard, it’s a wonder their peepers don’t shoot out the back of their skulls.

But with America one week out from a critical deadline, it’s time for everyone’s collective heads to get in the game.

**The debt ceiling…**

… is a [cap set by Congress](https://www.washingtonpost.com/politics/2023/04/26/debt-ceiling-explained/) limiting how much money the US government can borrow to pay its bills.

Still awake? Great.

If the limit isn’t raised, the Treasury Department [says](https://www.reuters.com/markets/us/treasury-confirms-us-default-early-june-1-without-debt-ceiling-hike-2023-05-22/) it’ll run out of money and start defaulting on payments as soon as June 1.

A federal default hasn’t happened before. What would it mean? To start:

- Social Security checks and tax refunds may be halted.
- Federal employees (including active military) may not be paid.
- Stock markets may panic.

The only time-tested way to make all that *not* happen? Congressional action.

**Oh, them? Not good**

Debt ceiling negotiations have become increasingly politicized.

The tense 2011 cap-extension standoff lost taxpayers $1B and downgraded US credit; bipartisan deal-making hasn’t exactly improved since then.

**How worried should you be?**

Medium worried, at least. President Biden and Speaker McCarthy continue to negotiate, but Wall Street is [getting jittery](https://www.reuters.com/markets/us/futures-dip-debt-ceiling-talks-drag-2023-05-24/).

If lawmakers can’t reach a consensus, some secondary maneuvers could temporarily extend the deadline — but in a hyperdivided Congress, those tricks aren’t certain to work.

If nothing happens and the feds default, the [real-life impacts](https://www.cbsnews.com/news/yellen-debt-ceiling/) would be massive:

- Retirement funds may plummet.
- Medicare and Medicaid may see disruptions.
- Credit card interest rates may rise.
- Mortgage rates may improve…
- … Nah, they’d somehow get *even worse*; just making sure you’re still awake.

In other words, debt ceiling news ain’t sexy, but it’s worth engaging with.

**Can you go back to bed now?**

If you can sleep after this, good for you.

[View full post](https://hs-sbup.thehustle.co/news/we-ve-gotta-talk-debt-ceiling-and-you-re-already-asleep-9)

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