Political infighting has been a major themes for what feels like the last three U.S. presidential administrations.
It seems like the infighting between Republicans and Democrats has only worsened in recent months. Battles over healthcare spending, defense, border controls, you name it, have only gotten more intense. And one of the biggest issues – and the one that will affect every American – has really become politicized. I’m talking about the skirmish over the debt ceiling.
The metaphorical cap on what the U.S. government can spend and its ability to write checks for things it has already agreed to pay for has become a major sticking point. So much so that some politicians have threatened not to raise it in order to get their way on other political issues.
For investors, and pretty much every American, the battle over the debt ceiling is something we all need to watch.
A Political Football
To be clear, the debt ceiling isn’t about if Washington should spend money on programs, but instead on how much it can borrow. The problem arose because Washington has typically overspent the debt ceiling amount by a wide margin, and it continues to do so. Now the bill has come due.