Houston's Morning News

Houston's Morning News

Houston's Morning News From News Radio KTRH with Jimmy Barrett and Shara Fryer covering your Local News, Weather and Traffic.

 

POLL QUESTION: The debt ceiling

A stalemate continues on Capitol Hill regarding the nation's debt limit, and many are warning of a possible default, should no agreement be reached by June. So, do American's care what is going on?

Gallup polls show 48% care more about banking than the debt limit debate, and Economist Elizabeth Ames says it is not surprising.

"That is probably because the story is loaded with political jargon...people hear that, it goes by you, and you really do not know what is going on," she says.

Many Democrats warn of doomsday should the ceiling be touched. Economist Mark Zandi, who was a Democratic witness at the Senate Budget Committee hearing for the debt ceiling, says it would cost 800,000 jobs, and up the unemployment rate by a half percentage point.

She says the Left has a flair for the dramatic on this issue.

"There is a heavy theater element to this...it is a serious thing...but no one wants that, and the United States just does not do that," Ames says. "We need to keep in mind that the debt ceiling has been extended over 100 times, and in the last 13 years, we have had crises like this...and the end result is always increasing the debt ceiling."

The media is to blame for some of the doom and gloom, too.

"They take the side of the Democrats, and reports this like we are on the edge of catastrophe, which is not going to happen, because it has not happened in the past," Ames says. "I think that will be avoided."

Now, House Republicans have passed a bill, which would cut federal spending, and bring solution to the problem. But President Joe Biden and Senate Majority Leader Chuck Schumer refuse to consider the idea. Schumer has even called the bill 'dead on arrival' on his Senate floor.

"The demands of Republicans are very reasonable...interestingly, the bill would reduce the deficit by $4.8 trillion over ten years," she says. "That is the future, and that is what this is about, spending in the future."

Ames added the way to kickstart a vibrant economy again, in addition to solving the debt issue, is to pass the House bill to cut federal spending.

Players from both sides are set to meet again Friday with President Biden.


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