Debt-Ceiling Crisis: What Could Happen, According to History

The White House and Congress are locked in a standoff, once again, over whether to raise the debt ceiling—the legislative limit on the total amount of money the federal government is authorized to borrow. Not raising the cap before the U.S. defaults on its debts could have a big impact on the country’s economy, as well as the world’s.

While a full-blown default hasn’t technically happened before, the U.S. has come close to missing payments—and in one case, failed to make a timely payment. Looking at what occurred during those past events can be instrumental in understanding what is at stake this time around. One big takeaway: Plenty of damage can be incurred by simply approaching the so-called debt cliff.