The Joint Select Committee on Deficit Reduction known as the Supercommittee, failed to reach an agreement last year on where to make necessary cuts to prevent raising the US debt ceiling.
However, the limit will increase anyway because of a deal the White House and Congress struck last year that sets off automatic triggers to reduce defense spending and funding to social programs.
The need to raise the debt ceiling has strong implications on the nation’s unemployment. More money allocated to pay off debts means less money to lend to other areas like job creation.
Nasty debates have fueled partisan rancor on the Hill over the nation’s debt crisis. As Republicans try to hammer out their message against the administration, the president is looking for ways to sell his case to the American people by his state of the Union address at the end of this month.
Because of the way the calender year worked out. The government had to make early payments such as retirement pay for veterans. That grew the US budget deficit nearly 10 billion dollars from 78 billion dollars at the end of 2010 to 85 billion late last year. Some Americans say they wish they had benefits or at the very least a safety net.
Congress has two weeks to make a decision on whether to raise the debt ceiling or vote the measure down.