Alabama's 13 | Who's Telling the Truth about Debt Ceiling?
Who's telling the truth about the debt ceiling?
By Jon Paepcke | Alabama's 13 | July 14, 2011
WASHINGTON, D.C. (WVTM) --- In three weeks, more than $20 billion worth of social security checks are set to ship out.
The day before is the deadline to solve the issue surrounding the cap on our nation's debt.
PresidentObama says one event could impact the other.
“I cannot guarantee that those checks go out on august 3rd if we haven't resolved this issue, because there may simply not be money in the coffers to do it,” the President said on Tuesday.
Republican Congressmen like Alabama's Robert Aderholt have fired back.
“There will be plenty of money in the coffers. The question is, is just prioritizing these and making sure they do get paid. So there is no reason that somebody shouldn't get their social security check come August 3rd,” Aderholt pointed out.
So do we, or do we not have enough money for social security?
We sat down with Dr. Chad Carson from the Brock School of Business to ask him who is telling the truth.
“They are negotiating. And the reality is when the day comes, social security can be paid. There are certainly other places that can be cut. PresidentObama can prioritize in a way to allow for those checks to go out. But, long term, something has to be done,” Carson argued.
Under the current federal budget, we spend $742 billion on social security.
That's one-third of how much money is coming in.
The problem is, we are spending $3.8 trillion.
That leaves the federal government $1.6 trillion in the hole.
Doctor Carson said based numbers like those, the Presidents warning is not necessarily untrue.
“Current structure, I think that is a fair statement I think he can't guarantee it. But there is another side of that, that the truth is he could do things and arrange things in a way that would allow those payments to be made at the first of August,” Carson said.
Aderholt has also called the President's statement false, misleading and characterized it as, “the emergency scare-seniors button”.
Carson claimed political spin is coming out of both camps.
“That's what they both do, what both parties do. They want their side in the most favorable light as possible. Both parties have twenty days to reach an agreement,” Carson added.
Despite the economic Armageddon claims between now and then, Carson believes a solution is on the horizon.
“Some version of a deal will happen. They are not, I don't believe either party is willing to go that far,” Carson predicted.
If someone does not budge, our nation's budget may never be the same.
Carson added much of the rhetoric on both sides is aimed at 2012 as much as this year.
He said republicans and the white house are posturing for next year's presidential race.
For more info, click here.