Residents Hope for Debt Ceiling Deal Before DC Woes Hit Main Street

The Aug. 2 deadline for Congress to increase the debt ceiling is rapidly approaching and Democrats and Republicans remain at odds on the terms of a potential deal. The debt ceiling, currently set at $14.3 trillion, is the amount the United States can borrow.

In a letter to Republican Sen. Jim DeMint, Treasury Secretary Timothy Geithner warned failure to increase the debt ceiling could undermine the country’s creditworthiness in the eyes of investors around the world.

Freehold resident Ada Torres said the situation reminded her of the ongoing credit crisis in Greece. While the woes in Greece stemmed from a ballooning deficit, Torres noted that any country defaulting on its debt risks its fiscal standing.

"We should be paying our debts. If we don't, it will effect the global markets overall and have a trickle down effect," Torres said.

That trickle down effect will translate into sizable program cuts that will hurt the neediest Americans, Torres believes.

In an interview with CBS News on Tuesday, President Barack Obama said he “cannot guarantee” Social Security checks would be mailed out should the Aug. 2 deadline pass without resolution.

Leon Boyer, who owns Check-X-Change on Main Street in Freehold Borough, is concerned about the local impact should Congress fail to raise the debt ceiling.

“It will affect everything—Social Security, interest rates, car buying,” Boyer said. “Of course I’m concerned.”

Finding middle ground remains a problem in Washington as Republicans call for spending cuts beyond the increase in the debt limit and no tax increases while Democrats want to see additional revenue included in any debt ceiling deal.

Freehold resident Lisa DeAngelo said she was concerned that any tax increases will inevitably hurt the middle class in an already shaky economy.

“The middle class gets hit by raising taxes. They’re the ones that wind up having to pay,” DeAngelo said.

Brian Solden, a Sacramento resident on vacation in Freehold, believes significant spending cuts will need to be made in a debt limit deal in order to get the country back on the right track.

"My foundation is that the government spends too much money. We need to bite the bullet for 5-10 years. You can't spend your way out,” Solden said.

For Boyer, the only reasonable solution is a combination of program cuts and additional revenue.

“We need to reduce our spending and increase our taxes,” he said.

Boyer and other Monmouth County residents believe political posturing is at the heart of the failure of officials on both sides of the aisle to hash out an agreement.

“I’m tired of the political shenanigans,” Freehold Borough Councilwoman Sharon Shutzer said. “I want people to forget the politics and parties and do what’s best for the people. Stop fooling around and battling each other, and whatever the solution is, figure it out.”