Main Street Sounds Off On Debt Ceiling Debate

Debt, deadlines and doubt--that’s what most residents are seeing from Washington, D.C., as the clock ticks closer to Aug. 2, when Congress must reach an agreement on how to raise the national debt limit.

There are many scenarios that could play out if a compromise is not reached by then such as Social Security checks being withheld, interest rates increasing and the U.S. dollar losing value. But whatever the outcome, it certainly won’t be pretty.

“It’s clear that they can’t come to an agreement,” said Des Plaines resident and college student Melissa Belvedere. “I don’t think they’ll make a compromise by Aug. 2.”

Belvedere, 21, added that she was worried about having the burden of the nation’s debt fall on her generation if Congress could not find a solution to lower it.

And, for now, there doesn’t seem to be an answer because on Wednesday both the Republicans and Democrats went back to their respective drawing boards. After reviewing separate plans from House Speaker John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV), the nonpartisan Congressional Budget Office (CBO) estimated that neither plan would cut enough spending to offset the debt ceiling increase.

Currently, the national debt is capped at $14.3 trillion, and officials want to raise it by $2.4 trillion to get through November 2012. It has been  since the current level was reached in May.

Boehner’s plan called for an immediate debt ceiling increase of $900 billion. Then a second vote would be held next year, which would raise the debt ceiling another $1.6 trillion. The bulk of the savings would come from capping discretionary spending, or yearly spending authorized by Congress, as well as tax and entitlement program reforms.

The Reid plan would reduce spending by $2.2 trillion over 10 years. But the CBO found that the plan would fall short of the originally promised $2.7 trillion in reductions.    

Raising the debt limit is not a new concept. It was raised 18 times under President Ronald Reagan and seven times under President George W. Bush. However, this time is different as both parties are deeply divided and an election season is just around the corner for President Barack Obama and members of Congress.

“I think this is more about partisanship and not necessarily what is best for the people,” said Des Plaines resident Joy Cooper. “I feel like it’s very much about re-election and very much about a party’s platform and not necessarily what’s right, and that concerns me.”

Cooper said she was concerned about entitlement programs, such as Social Security and Medicare, being cut or changed as her parents are on a fixed income.

“Also, people who might not be able to make their health care bills and housing,” Cooper said. “That’s a big concern to me.”

Tim Gorvett, who was visiting family in Des Plaines, also expressed worries about alterations in the entitlement programs, noting his grandmother lives on a fixed income. He said his faith in Washington’s ability to make something happen isn’t very strong.

“If they make the deadline, good for them,” Gorvett said. “But I wouldn’t be shocked if they don’t.”

However, Cooper was a little more optimistic.

“I’m definitely a glass half full type of person,” she said. “I’m optimistic, I’m hopeful, but I’m cautiously hopeful.”