In 1989, New York real estate developer Seymour Durst commissioned Manhattan’s now-famous National Debt Clock. He wanted to highlight how much the national debt rose during the Reagan administration and call attention to the huge debt being passed on to future generations. But even a debt critic like Durst underestimated how much America loves spending, as it took less than 20 years for the unofficial tracker to run out of digits as the country’s bill surpassed $10 trillion in 2008. The debt has continued to rise since then, and in January breached the $31.4 trillion ceiling set by the current debt limit, a century-old political tool that now has Congress and the White House scrambling for a solution. Republicans argue that debt is a burden for future generations, but some experts say the standoff could be the bigger threat, as yet another ominous clock ticks towards an unprecedented default on the government’s debt.
Talks between President Joe Biden and Republican House Speaker Kevin McCarthy to raise the debt ceiling so the government can continue borrowing money to pay its bills are progressing slowly. Time is running short, as the Treasury could run out of cash as early as June 5, according to Treasury Secretary Janet Yellen.
