Retired Ripon College economist Paul Schoofs says passage of a debt ceiling bill by congress to avoid default is good news. Schoofs says the U.S. was facing a potentially disastrous default if congress failed to act. With just two days to spare, President Joe Biden signed legislation that lifts the nation’s debt ceiling. Suspending the nation’s debt limit until 2025 after the next presidential election ensures the Treasury can borrow to pay already incurred U.S. debts. The Treasury Department had warned that the country would start running short of cash to pay all of its bills on Monday, a development that would have sent shockwaves through the U.S. and global economies. To mark the signing, Biden could have held a public ceremony at the White House with lawmakers from both parties, showcasing the bipartisanship he’d cited in an Oval Office address Friday evening. But the president signed the legislation Saturday in private in a reflection of the tight deadline facing the nation.
