President Barack Obama addressed the nation, July 25, on the stalemate in Congress over how to raise the national debt ceiling by Aug. 2.
Obama warned that if a compromise is not made in time, the United States AAA credit rating will be downgraded and interest rates will “skyrocket” which will amount to a “huge tax hike” on Americans.
“We would risk sparking a deep economic crisis—this one caused almost entirely by Washington,” Obama said.
Obama claims that the debate revolves around “two different approaches:” the first approach asking for spending cuts and tax revenues, with the second approach asking for just spending cuts. Of the two, Obama supported the first approach.
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 different approach—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 scale, 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.
During his closing statement, Obama asked listeners to “make your voice be heard.”
The American people may have voted for divided government, but they didn’t vote for a dysfunctional government. So I’m asking you all to make your voice heard. 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.