153: Obama Urges Debt Deal

President Barack Obama urged Americans on Tuesday to support a balanced approach to debt reduction and to let their representatives know how they feel, lest Congress be locked in a stalemate.

Obama explained that there were two approaches to the deficit reduction currently being considered.  One, which he called the balanced approach, would involve everyone taking cuts or giving something up, like tax breaks.  The other, which Republicans favor, would keep tax breaks for the wealthiest companies and would instead take deep cuts from everything else.

Obama favors the balanced plan, insisting that it is unfair to take only deep cuts from certain causes.  According to Obama, under the balanced approach, 98 percent of Americans who make less than $250,000 would see no tax increase.

The Republicans have a different opinion, however, and they currently hold the power to affect the nation’s choice.  In his speech, Obama explained that the method of deficit reduction chosen is tied to the decision about the debt ceiling.  The Republicans will not vote to raise the debt ceiling unless their plan of deep cuts is passed.

This presents a challenge, for if the debt ceiling isn’t raised, America could default on its loans for the first time in history.  Defaulting would drop America’s credit rating around the world and could push the United States into even greater economic distress. 

Obama said he is confident that a compromise can be reached and understands Americans’ frustration with Washington, saying,  “People are tired of a town where compromise has become a dirty word.”  Obama urged Americans to let their representatives know how they feel about the deficit reduction.  He said that he is certain that Congress can put aside “pride and party to form a more perfect union.”