Worries Mount as Debt Deadline Draws Near

FIRST PERSON | Will the United States default on the debt Aug. 2? With less than a week left, there's no deal to raise the debt ceiling in Congress. There is no precedent for the government running past the debt limit. The president and many others predict dire consequences if the debt limit is not raised. The government will still have approximately $200 billion of income, enough to pay interest on the debt, the military and Social Security.

Republicans say we must drastically cut spending in order to get a bill passed. Tea Party representatives oppose raising the debt limit at all. They want the government to live within its means rather than continually borrow money.

We, as middle class Americans, sympathize with the "just spend what you have" philosophy. Our family would like to see the government trimmer and more frugal. We would like Congress to tackle its budget as we do ours. We do not spend more money than we bring home.

If the debt defaults, we wonder how it will affect us. Will interest on mortgages, credit cards and vehicle loans go up? Will the market crash and eat our 401K? If America defaults, how will that affect jobs? Will food, utilities, insurance and gas prices move higher?

With only a week left for negotiations to come together, there's little time for people to get ready for the worst. We have locked the interest in on our mortgage, so it cannot raise. We continue to be frugal and stock up on items we anticipate will go up in price.

Most media pundits say a deal will be struck between the Republicans, Democrats and President Obama. Will deep spending cuts be added if the debt limit is raised? We may be cynical, but it seems Washington cares more about the next election cycle than the good of our country. The spiraling debt will have to be addressed now or sometime in the future. So far, Congress has not wanted to tackle the tough issues. This again appears to be politically driven.

While the debt limit will have to be raised, in the long run, it seems counter-productive without addressing the spending problems. Tough choices will have to be made, and some people will be hurt by them. The country as a whole must change its entire fiscal philosophy. America needs to thrive, but paying 40 cents out of every dollar to interest on the debt is too heavy of a price.