In his remarks Wednesday, the president raised the spectre of the August 2011 prolonged standoff over the debt ceiling that resulted in Standard & Poor’s unprecedented decision to lower the country’s credit rating, which triggered a stock market drop.
Partisan tensions flared again Wednesday as President Obama bemoaned continued government gridlock over the debt ceiling. “We’re not going to set up a situation where the full, faith and credit of the United States is put on the table every year or every year-and-a-half and we go through some terrifying financial brinkmanship,” he told business leaders.
Should Congress not increase the debt ceiling, the government’s authority to borrow more money will run out in mid-October. For their part, House Republicans on Wednesday set in motion a plan expected to avert a federal government shutdown on October 1, but bring another battle over the Affordable Care Act, also known as Obamacare, the president’s signature legislation, Reuters reports.
A bill to fund the government through Dec. 15, and thus avoid a shutdown, may move through the Republican-controlled House this week. It would maintain the tough spending caps imposed by the across-the-board cuts known as the "sequester." Embedded in the bill is language that would deny money to fund the healthcare law. That leaves the issue of raising the debt ceiling, which the Republicans want to tie to spending cuts. In late August, House Speaker John A, Boehner predicted "a whale of a fight."
In his remarks Wednesday, the president raised the spectre of the August 2011 prolonged standoff over the debt ceiling that resulted in Standard & Poor’s unprecedented decision to lower the country’s credit rating a notch to AA-plus, which triggered a stock market drop. The credit rating agency questioned “the effectiveness, stability and predictability of American policymaking and political institutions.”
At the time, concern among Affluent investors over the political environment reached an eight-month high, according to a survey conducted by Spectrem’s Millionaire Corner,
That concern is even more elevated today, ongoing Millionaire Corner wealth level research finds. Nearly nine-in-ten (87 percent) said they are concerned about government gridlock. Eighty-five percent said they are most concerned about the political environment, up from 76 percent last year.
When asked in a survey conducted earlier this year about what they see as the best outcome for the debt ceiling debate, nearly three-fourths (72 percent) said, “Raise the debt ceiling and cut federal spending at the same time.” Less than 10 percent said they would allow the government to default.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.