by Ayvaunn Penn, Your Black World
Many of you have heard the recent controversy over Congress not allowing President Obama to raise the debt ceiling. Many are also wondering exactly what this means for them individually — better what it means period. Cutting to the chase, it means YOU are trouble if they do not hurry up and figure out a solution — yes, even if YOU are wealthy.
The reason is this. According to reports from CNN, if the debt ceiling is not raised, the federal government will not be able to pay all of its bills next month. Further more, CNN reports that “if Congress fails to raise the $14.3 trillion debt limit by August 2, Americans could face rising interest rates and a declining dollar, among other problems. As the cost of borrowing rises, individual mortgages, car loans and student loans could become significantly more expensive.”
From the sound of things, it seems like our nation would basically be well on its way to falling apart. That then makes one wonder why Congress would not do anything to stop such a catastrophe — why they would not consider raising the debt ceiling. Well, they are trying to do something, but House Speaker John Boehner says that increasing our nation’s debt is not the answer. CNN reports:
“In a televised response, House Speaker John Boehner, R-Ohio, insisted that excessive government spending is the root cause of America’s financial problems and that expenditure cuts are the only solution. ‘The sad truth is that the president wanted a blank check six months ago (to raise the debt ceiling), and he wants a blank check today,’ Boehner said. ‘That is just not going to happen.'”
Contrary to this blank check belief on Boehner’s part, Obama says he is not looking to simply throw the nation into a deeper debt pit. Rather, CNN reports that “Obama has pushed for a comprehensive plan that includes spending cuts, increased tax revenue and entitlement reforms, while Republicans have sought to shrink government by proposing spending cuts and reforms without increased revenue.” In Obama’s address to the nation on Monday night he said:
“The only reason this balanced approach isn’t on its way to becoming law right now is because a significant number of Republicans in Congress are insisting on a cuts-only approach — an approach that doesn’t ask the wealthiest Americans or biggest corporations to contribute anything at all….and because nothing is asked of those at the top of the income scales, such an approach would close the deficit only with more severe cuts to programs we all care about — cuts that place a greater burden on working families.”
Despite Obama’s concerns for the greater percentage of the population — the middle class and below — Boehner did not demonstrate any willingness to stray from the Republican party’s refusal to increase taxes. Actually his stubbornness does not make a difference because reports say that it is not likely that the Republican nor the Democratic plan to raise the debt ceiling will be passed by the Senate or House repectively. As stated by CNN, “Both plans — one by Senate Majority Leader Harry Reid, D-Nevada, and the other by Boehner — provide a path to raise the debt ceiling through the end of 2012, but they differ in scope and in key components involving requirements for future congressional action. Obama endorsed Reid’s plan, but acknowledged it has little chance of getting passed in the House, just as the competing Republican plan unveiled by Boehner is unlikely to get passed by the Senate.”
One thing remains clear. This is a big mess, and there is only one week left until the government will run out of money. Nonetheless, CNN reports that “Fifty-two percent of Americans think Obama has acted responsibly in the debt ceiling talks so far, but nearly two-thirds say the Republicans in Congress have not acted responsibly. Fifty-one percent would blame the GOP if the debt ceiling is not raised; only three in 10 would blame Obama.”
Ayvaunn Penn is the founder of Your Black Poets and an award winning writer completing her degree in English and philosophy. To inquire about her freelance editing services, click here. To like Ayvaunn on Facebook, click here.