COMMENTARY | In the GOP weekly address, House GOP Conference Chair Jeb Hensarling, R-Texas, went over the usual Republican complaints and talking points, but he eventually got to the pressing matter of moment: the debt ceiling and Congress' inability to come to an agreement on how or whether or not it should be raised and, if it should be raised, under what conditions. But Hensarling, in typical partisan fashion, decided to couch the debate in terms that appear in lock-step with the Republican mantra that has played a major part in the impasse over raising the federal debt limit.
"If we're going to avoid any type of default and downgrade, if we're going to resume job creation in America, the president and his allies need to listen to the people and work with Republicans to cut up the credit cards once and for all."
But is that true? Did Americans give Congress a mandate to "cut up the credit cards once and for all"?
The answer is a simple "no."
Although Americans by-and-large agree that spending cuts must be made, they also agree that a balanced approach to the problem should be made. A recent Gallup poll indicated 69 percent of respondents would be agreeable to a balance between spending cuts and tax increases. Thirty-two percent said they would like to see Congress broker a deal that showed equal amounts. Another 30 percent favored a plan with more spending cuts than tax increases. The final 7 percent favored more tax increases than spending cuts. But only 20 percent favored a plan where only spending cuts were used to battle the deficit problem.
What does that have to do with the debt ceiling? The debt ceiling is a legal limit on the borrowing power (the "credit cards") of the Treasury. Once the debt limit, or "ceiling," is reached, the Treasury cannot legally borrow money to offset its obligated expenditures if such expenditures exceed the amount of revenue.
Unfortunately for the United States, its expenditures far exceed its revenues, thereby creating fiscal deficits which in turn attach to the national debt and increase the amount owed other parties. In short, the federal government must use only what is taken in as revenues, which is primarily done via taxes, if the debt ceiling remains static. This creates a shortfall, causing the federal government to first shut down nonessential programs and services, then to default on any other debts it can no longer afford to pay -- like interest on the national debt.
Hensarling and many conservatives want people to believe that President Barack Obama and the congressional Democrats are not listening to the people when it is the GOP that has been ignoring the ideas of compromise. Thus far in the debt ceiling talks (that which would free up the "credit cards" so the government can function properly), Republicans have completely refused to talk about the elimination of Bush era tax breaks ("tax increases" in Republican parlance), and have mentioned corporate tax loopholes only in passing.
At least on poll suggests this has not gone unnoticed by the public. Truthfully, for the most part, it is the Republicans who are not listening to the American people. Unfortunately, they aren't listening much to Democratic negotiators, either, having walked out of the talks on several occasions.
Besides, most Americans understand that without an increase in revenues (unlikely in a down economy and with the tax breaks in place), the government will operate at a deficit. They also do not want government funding cut for the most expensive government programs, like Social Security, Medicare, and Defense. Therefore, a compromise on the debt ceiling is most agreeable to Americans, and although spending cuts are preferable, there is no need to "cut up the credit cards once and for all."
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