Debt Limit Talks in Washington DC Continue On

Barack Obama and the US congress currently battle it out over the national deficit. The core issue is the debt limit which congress cannot go past. Democratic party officials warn that if the debt limit is not raised, dire consequences will follow.

Speaker of the House, John Boehner, was willing to sit down in talks with Obama. Negotiations ended when the President Obama insisted on 'revenue-enhancers' in addition to any spending cuts the Republicans proposed.

If the country fails to raise the roof on the debt, the country could lose its triple A credit rating and default on many of its payments. Raising the debt ceiling would allow congress to continue spending. It would not provide any encouragement for the House of Representatives and the Senate to bring the situation under control. The budget battle will rage on and another government shut down may loom. Congressmen still view government shut downs as something to be avoided, although the population generally goes on without noticing much change in their lives.

Failing to raise the debt ceiling would force the men and women of congress to bring their spending under control. Adding revenue enhancers, which is a code for tax increases, will not have any effect on the policies. The government will finally tighten their belts. Many individuals were forced into this situation because of the economic downturn. Congress went on spending merrily even as families tightened their belts.

Failing to raise the amount of money the country can borrow is one of the few things that has resulted by the debt talks. Funding for some programs may fall and there are individuals who will suffer. While Medicare, Medicaid and Social Security are important programs, they are untenable in their current forms. The only way to fix the budget is to cut these programs or find replacements for them. It may be some time before the taxpayers see any benefit. Doing what is actually required to eliminate the national debt requires politically unpopular options. If the policy does force real cuts to the entitlement programs.

The goal of failing to raise the debt ceiling is to force the government to act in a fiscally responsible manner. Once it starts acting in a fiscally responsible manner, it may find that it does not need to charge as many taxes to meet its goals.