White House Meeting on the issue of Debt Reduction

This Wednesday morning President Obama met House Republicans at the White House. However after the meeting, it wasn’t clear of the areas of agreement of how the soaring national debt could be dealt with.

President accepted that strengthening the economy along with shrinking the debt of the country holds very important for the future of the country’s economy. This meeting was held just after a day when the majority in the House refused to accept the idea of raising the legal limit on government borrowings which has now set the stage for a long summer of debates over resolving the largest debt-reduction over the last two decades.

The GOP lawmakers did not vote for the measure of raising the limit on the national debt from $14.3 trillion to $16.7 trillion, although the August deadline is very near. This debt would have been sufficient to cover the government’s bills till the end of next year.

The opposition leaders said that they would never accept any increase in the plan to sharply curtail the government spending and increasing future borrowings.

On this morning House Speaker Boehner also released a letter signed by about 150 economists who were supporting the call of spending cuts up to the amount which could raise the ceiling of debts. However according to polls it is very clear that a higher debt limit is not popular among the large majority of the voters. A day before on Wednesday the House voted for 318 to 97 against increasing the limit which included half of the Democrats accepting what Republicans had voted for. As a result it seemed as if the people had ignored the President’s request to boost their limits before plunging in a complex as well as politically difficult battle on the issue of the size of the federal Budget.

Thus the votes made it very clear that there was no support for the issue of raising the debt limit without real spending cuts and binding budget process reforms.

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Tags: Debt Reduction, White House Meeting on the issue of Debt Reduction, World

Category: Finance, World