Debt Ceiling Worries Locals

As politicians squabble and stonewall in Washington over raising the debt ceiling, South Jerseyans registered their concerns that the impasse could render the phrase “backed by the full faith and credit of the United States” meaningless.

The country is fast approaching an Aug. 2 deadline to either raise the debt ceiling—the legal amount of money the U.S. government can borrow—or default on its debt. The latter, most experts agree, could have disastrous consequences.

Equally disastrous, others charge, is if the U.S. raises the debt limit without any plans in place to control spending.

South Jersey Patch editors fanned out across the region Wednesday to hear opinions on the stalemate. Regardless of political beliefs or preferences for handling the crisis, one common theme emerged: South Jerseyans are worried about America’s financial standing, and how the outcome will leave average Americans.

John J. Weber Sr., an Absecon municipal employee of 27 years and a Galloway Township resident for 17 years, retired three years ago. He said whether taxes go up or Social Security or Medicare get cut, it’s senior citizens and the disabled who will take the biggest hit.

“They don't get any breaks,” Weber said. “I’m at the point now where I pay the minimum on my bills because I don’t know if the Aug. 3 check is coming.”

“Historically, the debt ceiling has been raised numerous times and I feel this is a prime opportunity to end that trend,” Gloucester Township resident and graduate student Steven Fluharty said. “In a way, it’s time to get real. In theory, the limit is supposed to assist Congress control spending. In reality, it doesn’t.”

Collingswood resident Megan Kline agreed: “I’m concerned our government is creating a deficit that will be difficult to ever recover from, and that our citizens are not aware of what it takes to recover.”

Kim Moon of Haddonfield, however, doesn’t see that the U.S. government has a choice.

“I think there’s no way that we couldn’t raise” the debt limit, she said. “What it would do to the economy, not only in America but worldwide, would be so significant. If you think we’re in bad times now, it’s just going to get so much worse.”

So, what’s the best approach to handling the crisis? Most Republican politicians balk at agreeing to a deal that would raise taxes, calling for strictly spending cuts. Most Democratic counterparts maintain that increased taxes are necessary to avoid cutting programs like Medicare and Social Security.

“Funneling more purchasing power out of the people’s hands and into the hands of the government bureaucracy leviathan cannot get us out of our financial hole,” said Cinnaminson’s Luke Murry in backing Republicans’ approach. “We’re trillions of dollars in debt. Our debt nearly matches our GDP... Do we tax people 100 percent of income in order to fix bad economic policy? No thank you.”

Haddonfield’s Laurel Musto countered that it’s “unfair to ask people to take cuts for fundamental health care that could save their life… These are checks people paid all their life. That was their money.”

The majority of those interviewed by South Jersey Patch sites agreed, siding with the Democrats’ approach.

Ashley Clark, a graduate student who lives in Haddonfield, said that while the U.S. is a country that “wants too much and refuses to pay enough for it,” entitlement cuts aren’t the way to go.

“In order to be sustainable, we need to raise taxes,” she said. “Either we raise taxes or we cut Social Security, and I don’t feel comfortable cutting Social Security.”

Gloucester Township’s Fluharty said Republicans must own responsibility for previous decisions by the party, including the starts of the costly Iraq and Afghanistan wars under President George W. Bush, that he said contributed to the debt crisis.

“I understand the importance of being fiscal conservative in this fragile economy, but I feel it is not efficient for Republicans to eliminate essential services while slashing taxes,” Fluharty said. “Personally, I feel it is irresponsible of the Republicans for not adjusting and/or eliminating the millionaire tax cuts itself to help curtail our debt.”