Not raising the debt limit is simply running a balanced budget.
Yes, that’s right: The President and Congress may have to balance the federal budget in the next few days! Horrors!
Let’s get some clarity here. When the federal government hits the debt limit it does NOT mean that it can’t borrow or that it can’t pay existing debts. It just means it cannot continue to run a deficit. Spending becomes limited by revenue, and existing debt may be replaced by new debt. The government just can’t add MORE debt.Details