The lessons of the 2011 debt ceiling crisis, explained by the negotiators who were there

If the 2023 debt ceiling standoff feels familiar, that’s because it is.

More than a decade ago — in 2011 — Congress was in a very similar position after Republicans retook the House, and Democrats held the White House and the Senate. Then, as now, the GOP was balking on an increase to the debt ceiling unless they got the spending cuts they demanded.

This week, House Republicans passed their debt ceiling legislation, setting the stage for what could be another tense showdown with calamitous implications for the country’s economy. As of late January, the US had already “hit” its debt ceiling, or the amount it’s able to borrow, and the Treasury Department is employing what’s known as “extraordinary measures” to cover the country’s bills. Those efforts are expected to take the US through early June, when it could risk an actual default on its debt. Should the US default, that would have disastrous economic fallout including higher interest rates, millions of job losses, and a major hit to the country’s GDP.