By Bonnie K. Goodman
Ms. Goodman is the Editor of History Musings. She has a BA in History & Art History & a Masters in Library and Information Studies from McGill University, and has done graduate work in history at Concordia University.
THE HEADLINES: DEBT CEILING SHOWDOWN: OBAMA VS CONGRESSIONAL LEADERS
According to a Gallup poll released this week, 20% of Americans favor an approach that includes only spending cuts. Nearly a third — 32% — said they favored a deal created “equally with spending cuts and tax increases” and 30% said the deal should be made “mostly with spending cuts.” Only 4% favored a deal done just with tax increases. – USA Today, 7-15-11
Various options for Obama, debt showdown foes in Congress: President Barack Obama, House Republicans and Senate leaders Mitch McConnell, R-Ky., and Harry Reid, D-Nev., have competing ideas about how to handle the need to increase the government’s borrowing limit and cut the budget. Highlights include…. – WaPo, 7-15-11
JULY 15, 2011: PRESIDENT OBAMA’S SECOND PRESS CONFERENCE ON DEBT CEILING CRISIS — SPEAKER JOHN BOEHNER ALSO SPEAKS TO PRESS
Philip Scott Andrews/The New York TimesHouse Speaker John A. Boehner spoke to reporters at the Capitol on Friday morning about the debt negotiations.
“Listen, we’re in the fourth quarter here. Time and time again Republicans have offered serious proposals to cut spending and address these issues, and I think it’s time for the Democrats to get serious as well. We asked the president to lead. We asked him to put forward a plan – not a speech, a real plan – and he hasn’t.” — John Boehner
“This is not some abstract issue. Congress has run up the credit card and we now have an obligation to pay our bills.” — President Barack Obama
“We have a unique opportunity to do something big. We have a chance to stabilize America’s finances for a decade, 15 years, or 20 years, if we are willing to seize the moment.” — President Barack Obama
“You have 80 percent of the American people who support a balanced approach. Eighty percent of the American people support an approach that includes revenues and includes cuts. So the notion that somehow the American people aren’t sold is not the problem,” “The problem is members of Congress are dug in ideologically into various positions because they boxed themselves in with previous… — President Barack Obam at a White House briefing room news conference.
John Boehner: The President said today that the American people are “sold” on job-crushing tax hikes. Most Americans would beg to differ. Our looming debt crisis isn’t the result of Washington not taxing enough; it’s the result of our government spending too much. It’s absurd & self-destructive to continue dumping taxpayer money into a failed ‘stimulus’ philosophy. The White House must step up & embrace real spending reductions. — — John Boehner
- Full Text July 15, 2011: President Obama’s Second Press Conference This Week on the Debt Ceiling Negotiations — WH, 7-15-11
- Obama’s hands-on negotiation a political necessity: President Barack Obama’s decision to haul lawmakers in day by day to negotiate a debt deal comes down to reality: He has no other choice. The president has essentially cleared his agenda to deal with one enormous crisis.
The threat of an unprecedented government default, combined with the shrinking time left to prevent it, has prompted an extraordinary dynamic in a town of divided government and divisive politics. For five straight days, the president and leaders of Congress have gathered in the Cabinet Room to try to work it out…. – AP, 7-15-11
- House to Vote on $2.4 Trillion Debt Increase, Cuts: House Republicans will vote next week on legislation to limit spending and tie a $2.4 trillion increase in the U.S. debt ceiling to a constitutional amendment to balance the budget, a plan President Barack Obama dismissed as not “serious.”
While the measure may win acceptance by the Republican-led House, it can’t pass the Democratic-controlled Senate, said Representative Steny Hoyer of Maryland, the House’s No. 2 Democrat. It will let Republicans put their stance on the record while offering no immediate resolution to talks in Washington aimed at reaching a deficit-cutting deal by an Aug. 2 deadline for raising the $14.3 trillion debt ceiling.
“You’ll probably see the House vote on a couple of things just to make political statements,” Obama said at a White House news conference today. The Republican plan, which would mandate spending cuts of at least $2.4 trillion without increasing tax revenue, “doesn’t seem like a serious plan to me,” the president said.
A constitutional amendment requires a two-thirds vote of both House and Senate, and then ratification by three-fourths of the 50 states. “We don’t need a constitutional amendment to” revamp the government’s finances, Obama said. “What we need to do is do our jobs.”… – Bloomberg, 7-15-11
- House Republicans Plan Vote on Deficit: With budget negotiations with the White House stalled, Speaker John A. Boehner of Ohio said Friday that the House would vote next week on a three-part plan to cut the deficit, cap federal spending as a share of the economy and amend the Constitution to require a balanced budget.
The plan, which has a companion in the Senate, would represent the House position in the final stages of the debate as the federal government nears the limit of its borrowing power. While it would not appear to have a chance of passing the Democrat-controlled Senate, and President Obama is opposed, it could provide a legislative avenue to increasing the debt limit as it makes it way through Congress.
The House Republican leader, Representative Eric Cantor of Virginia, said the House would move on its own because the president’s deficit-reduction proposals fell far short of what was needed…. – NYT, 7-15-11
- Obama calls on Congress to act on big debt ceiling deal: President Obama challenged Congress on Friday to put the country on the right fiscal footing for decades to come by slashing spending and increasing revenue as part of a package to raise the nation’s $14.3 trillion debt limit.
In a news conference at the White House after five days of often-tense closed-door talks with congressional leaders, Obama said there is still time to put together a “big deal” to solve the nation’s debt and deficits problem for the long term and raise the debt ceiling before the Aug. 2 deadline imposed by the Treasury Department.
He cautioned, however, that time is running short to avoid the first government default on its loans, something Federal Reserve Chairman Ben Bernanke and a host of economists have warned would be catastrophic. Obama said he is asking leaders to come up with a solution before the end of the weekend. “If they show me a serious plan, I’m ready to move,” Obama said…. – USA Today, 7-15-11
- Obama calls on Congress to ‘seize the moment’ on debt talks: President Obama with new immediacy today reiterated his call for a sweeping plan to deal with the nation’s long-term debt problems. He warned GOP lawmakers that time is running out on a deal that would prevent the U.S. from defaulting on its financial obligations.
In his second news conference this week on the issue, Obama called on lawmakers to give him a “serious” plan to raise the debt ceiling within the next 24 or 36 hours. But he emphasized the need for Congress to “put politics aside” and tackle an “ambitious” solution to the nation’s deficit problems–not just a quick fix.
“We have a unique opportunity to do something big,” Obama said. “We have a chance to stabilize America’s finances for a decade, for 15 or 20 years, if we are willing to seize the moment.”
But the president acknowledged it would be “tough” to get Democrats and Republicans to agree on a significant proposal before Aug. 2, when the Treasury Department says the U.S. will begin defaulting on its more than $14 trillion debt. Obama warned that if nothing is done, Americans could be facing financial catastrophe, including more job loss and potentially higher interest rates, which he described as “effectively a tax increase on everybody.”… – AP, 7-15-11
- Obama Reiterates Desire for Comprehensive Budget Package: In a news conference, President Obama held out hope Friday that a broad deal could be reached on raising the debt ceiling.Doug Mills/The New York TimesPresident Obama held out hope Friday that a broad deal could be reached on raising the debt ceiling.
President Obama on Friday reiterated his desire to reach a grand bargain that would deal with the nation’s long-term debt problems even as leaders in Washington take action to avoid a financial default by the government.
Mr. Obama said that he was encouraged by comments from lawmakers in both parties signaling an understanding of the need to increase the nation’s debt ceiling in the next two weeks.
“The American people expect more than that. They expect that we try to solve our problem,” Mr. Obama said. “We have a chance to stabilize America’s finances for a decade, for 15 years or 20 years, if we are willing to seize the moment.”… – NYT, 7-15-11
- Boehner: Obama has no debt plan. Republicans do: The House next week will take a vote to raise the debt ceiling and pass a balanced budget amendment, House Republican leaders said today.
The plan is unlikely to go anywhere, since a balanced budget amendment would likely fail in the Democrat-led Senate, but GOP leaders nevertheless called it a serious plan to raise the debt ceiling. They said President Obama and Democrats have failed to come up with an equally serious plan…. – CBS News, 7-15-11
- Debt ceiling adversaries take a time out to face the microphones: With roughly a week left for President Obama and congressional leaders to reach an agreement on raising the debt ceiling, both sides took time out to argue their case to the public…. –
With roughly a week to go for President Obama and congressional leaders to reach agreement on raising the nation’s debt ceiling and prevent a government default, both sides in the debate took time out from negotiations to argue their case to the public.
Friday morning began on Capitol Hill with House Speaker John Boehner (R) telling reporters that congressional Democrats and the president had not been serious in the Republicans’ sometimes heated negotiations with the White House…. – CS Monitor, 7-15-11
- Debt ceiling: financial world warns Washington to hurry up: Fed Chairman Ben Bernanke warns of a ‘self-inflicted’ wound, and Wall Street firms see dire consequences, if stalemate over how to raise the US debt ceiling persists…. – CS Monitor, 7-15-11
- Allan Lichtman: Obama’s hands-on negotiation a political necessity: “It’s absolutely remarkable,” said Allan Lichtman, a presidential historian at American University.
“Obama has got to get this done,” Lichtman said. “Even if people blame the Republicans in Congress, he’s the president. And if things go rotten on his watch, he pays for it. This is his moment. And he knew it was going to be trouble, because Republicans have very little incentive to make a deal.” – AP, 7-15-11