FORT LAUDERDALE (CBS4) – After daily meetings with congressional members, the President turned to the American people with some tough talk about the debt debate.
“I’m prepared to take significant heat from my party, to get something done,” President Obama told reporters in a televised news conference.
Experts say it’s a critical decision because, over the last couple of years, the country’s debt has increased dramatically, reaching the 100 percent debt ceiling.
“It is scary to some degree,” said Dr. Albert Williams, chair of finance and economics at Nova Southeastern University. “When we look at all of the potential negatives, we need to get this ceiling increased, at least for the short term.”
If congressional members do not reach a deal to solve the debt problem by the August 2nd deadline, and the government defaults, Williams says some key social programs will be affected.
“Then you might go get your social security check, and it might be two weeks late, or you go get Medicare services and it might take a little longer,” said Dr. Williams.
But if you need a loan for a new house, or even a new car, Williams said you’re going to have to pay more, if a deal isn’t reached.
“If they do not increase the debt ceiling, interest rates are going to have to go up, and if interest rates go up, it could impact credit, so if you go get a credit card, you might have to pay a higher percentage, so it can impact everybody across the board,” said Dr. Williams.
Williams also says government employees might not get paid, or could even lose their jobs.
But could private companies also lay off employees?
“That would not happen immediately, it would have to persist, if the problem is not resolved in six months, then we could see that,” said Dr. Williams.