Can Presidents "Make or Break" an Economy?: Debt Ceiling

The video discusses the impact of the Trump administration's policies on the stock market, highlighting tax cuts and stimulus measures. It explains the concept of government debt and the debt ceiling, emphasizing the difference between personal and government debt. The video also covers the suspension of the debt ceiling in 2019 and its potential consequences if not raised again, including government shutdowns and economic instability.

What was one of the key takeaways regarding the Trump administration's policies?

• They had no impact on stock prices.

• They were detrimental to business.

• They were beneficial for business.

• They reduced government debt.

What is the debt ceiling?

• A limit on tax revenue collection.

• A cap on government debt set by Congress.

• A limit on personal credit card spending.

• A restriction on stock market investments.

How does government debt differ from personal debt?

• Government debt is always smaller.

• Government debt is not influenced by economic growth.

• Government debt is a tally of spending and taxation differences.

• Government debt is paid off annually.

What happens if the debt ceiling is not raised?

• It could lead to a government shutdown.

• The government can continue spending without issues.

• The stock market will automatically crash.

• The national debt will be forgiven.

What is one potential consequence of a government shutdown?

• Economic prosperity.

• Immediate resolution of debt issues.

• Increased government spending.

• Stifling of government activities.

What is the role of the US Treasury in managing debt?

• It issues new bonds to replace expiring ones.

• It sells government assets to pay off debt.

• It reduces taxes to manage debt.

• It increases interest rates on personal loans.

Why might investors demand higher interest rates on government bonds?

• If the government has a budget surplus.

• If the government is trying to suffocate itself.

• If the government is perceived as financially stable.

• If the government is reducing its debt.