Flirting With Debt Disaster

Image by wallyg via FlickrThe divisive politics of Washington is creating a needless cliff hanger to America's debt crisis.  On the surface, it shouldn't be too difficult to figure out that you need to raise the national debt ceiling (which is at $14 trillion right now) by August 2, or risk becoming a deadbeat nation with the world's economy tumbling in your wake.

Instead, like just about everything else these days, the Republicans and Democrats in Congress insist on acting like pouting children with the grownups banished to the sidelines, refusing to compromise even on what to put on a sandwich.  Is it really worth sabotaging the nation's economy just to score a few political points?

President Barack Obama has tried to calm the waters by having both Congressional leaders work out a deal at the White House behind closed doors.  But House Speaker John Boehner keeps storming out of there with no agreement in hand.

So both sides have their own plan to (temporarily) fix the problem.  Obama and the Democrats propose to raise the debt limit to $2.4 trillion while cutting government spending by $2 trillion, which would run past the 2012 presidential election.

The GOP, who would apparently rather see the deficit become a campaign issue, wants to increase the limit to only $1 trillion and cut spending by another trillion, then revisit the issue in six months.  Oh, and that includes cuts to Medicare, Social Security and other social programs that the Democrats would like to keep.  With no tax increases, the 'haves' aren't required to contribute a thing.

So many of these Republicans have become so loyal to their party (or to guys like Grover Norquist) that they're willing to sign pledges that binds them to vote against raising the debt ceiling or raising taxes, with a notable example being Rep. Michele Bachmann (R-MN).  You wonder why these men and women who claim to represent the voters aren't singing "The Internationale", or addressing each other as "comrade".  If big business is supposed to influence what the GOP does in Congress, telling them to cut the comedy and get a deal done, then they don't seem to be getting through on this issue.

Nobody is faring well here if you believe the polls, which mark significant disapproval ratings for the President and Congress.  Everyone is angry and frustrated at the pace and the tone of the negotiations, but it doesn't really matter.  Whoever is doing the talking thinks all that public anger is just political spin, and they'll press on with what they're doing.  If the net result is a lower standard of living for American citizens, then it will be a job well done when the Treasury starts defaulting on its loans.