Obama Address on Debt Ceiling Asks Americans to Pressure Lawmakers
In a televised address to the nation on Monday night, President Barack Obama asked Americans to pressure their elected representatives to work out a compromise on the federal debt ceiling. As he’d done in the past weeks, the president made a point to emphasize the devastating effect failure to come to a comprehensive debt deal would have on the nation.
Congress Still at Stalemate Over Raising Federal Debt Ceiling
In what was Obama’s seventh prime time televised address, he sought to the increase pressure on congressional leaders to reach a debt deal that would allow the government to keep borrowing money to pay its debts after Aug. 2–the date the Treasury Department set for the nation’s default after reaching the debt ceiling on May 16.
He went on to say that House Republicans had created the stalemate by refusing to compromise on a fair deal and then asked Americans to step in and pressure their lawmakers to come to an agreement.
“If you want a balanced approach to reducing the deficit, let your member of Congress know. If you believe we can solve this problem through compromise, send that message,” he said.
Debt Ceiling Increase Needed to Pay Bills
Officials have stressed that some type of deal must be struck to pay next month’s bills and avoid default–and that deal must include a debt limit increase. As noted by Obama earlier in the month, not only would creditors not be paid, but Americans would lose government benefits like Social Security in August and the country would spiral into one of the worst financial crises in history if the increase doesn’t occur.
Earlier on Monday, Democratic and Republican congressional leaders unveiled separate proposals that addressed different ways to manage the debt issue. Senate Majority Leader Harry Reid (D-Nev) wanted $2.7 trillion in spending cuts over the next decade while raising the debt limit by $2.4 trillion.
House Speaker John Boehner, on the other hand, introduced a proposal that required two separate votes. The first would approve $1.2 trillion in spending cuts while raising the debt ceiling through 2011. The second vote would raise the ceiling through 2012, only if Congress approves separate tax reforms.
Due to their subtle differences, each side quickly rejected the other’s, leaving the debt discussions unresolved.
Lawmakers have said they are working behind-the-scenes to agree to a deal that would help them avoid the proposals introduced by both sides. As lawmakers try to work out their differences, Americans will be left to wonder will the U.S. default on Aug. 2?
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