Obama: I Cannot Guarantee We’ll Be Able To Pay Social Security After August 2nd
CBS News is out with a preview of an interview with President Obama that will air tonight in which the President states the government may not be able to make Social Security payments after August 2nd if the debt ceiling isn’t increased:
President Obama on Tuesday said he cannot guarantee that retirees will receive their Social Security checks August 3 if Democrats and Republicans in Washington do not reach an agreement on reducing the deficit in the coming weeks.
“I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue. Because there may simply not be the money in the coffers to do it,” Mr. Obama said in an interview with CBS Evening News anchor Scott Pelley, according to excerpts released by CBS News.
The Obama administration and many economists have warned of economic catastrophe if the United States does not raise the amount it is legally allowed to borrow by August 2.
Lawmakers from both parties want to use the threat of that deadline to work out a broader package on long-term deficit reduction, with Republicans looking to cut trillions of dollars in federal spending, while Democrats are pushing for a more “balanced approach,” which would include both spending cuts and increased revenue through taxes.
Republicans will dismiss this as fearmongering, and they may be right, but the reality is that we’ve never been through this before and a deadline that falls at the beginning of the month makes things very difficult and very dicey.