Policy Backgrounders

What If? The Government Shuts Down and/or We Hit the Debt Ceiling

October 01, 2021

The US Congress is currently locked in discussions on continuing to fund Federal government operations and whether to either raise or suspend the debt ceiling. We have been here before, and it has always worked out—with more or less pain along the way. Indeed, Congress has passed a Continuing Resolution (CR) to fund the Federal government through December 3, 2021. What if come December, we find ourselves on the brink once again? Also, what happens if we hit the public debt ceiling? We explore these possibilities and economic outcomes.