The Long-Term Political and Economic Impact of the Debt Ceiling Drama

Monday, August 01, 2011

President Barack Obama makes a statement about progress with congressional leadership regarding the ongoing debt ceiling talks on July 29, 2011 at the White House. (Martin H. Simon-Pool/Getty Images/Getty)

As Congress arrives at a budget agreement and avoids sending the U.S into default right before the August 2 deadline, we're examining the broader, long-term political and historical impact of the the debt crisis. How will it affect the credibility of the U.S. government? What does it tell us about President Obama, and how will the crisis shape next year's election?

David Sanger, chief Washington correspondent for our partner The New York Times, talks about the response in the global markets and the deal's impact on the military budget and other vital programs.


David Sanger

Produced by:

Duncan Wilson

Comments [1]


"For the first time..some lawmakers were willing to use the payment of the US debt as a political tool"
Which prompts the question why didn't Speaker Pelosi call a vote for the swift raising of the debt ceiling on her party's terms last year when the Democrats controlled Congress? Why delay this highly urgent vote into 2011 with a Republican majority?

Aug. 01 2011 08:21 AM

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