Can President Obama use the 14th Amendment to raise the Debt Ceiling?-President Obama continues to warn of a bleak financial future for the United States if Washington cannot reach a compromise on a debt solution. With August 2nd just around the corner, politicians are frantically trying to come to an agreement that appeals to both Republicans and Democrats. In his public address this week on the Debt Ceiling, the President gave a detailed outline of the consequences America could face if a plan is not submitted that will pass both in the House of Representatives and Congress by a majority. The government is looking for a way to compensate for the additional funds that would be added to the current debt ceiling of $14.3 trillion. Mr. Obama has asked that both sides avoid political posturing and bickering and work together toward a reasonable compromise.
Domestic and defense programs are under fire as Congress desperately searches for a way to balance the budget. The President has proposed elliminating tax credits for those that earn an annual income of over $250,000 per year, which has been met by strong resistance. Reducing funds that are allocated to public assistance programs is also being considered.
Some San Diegans that recieve government benefits such as social security and VA checks are concerned that funds will not be available if Washington fails to meet it’s financial obligations. Payments to government contractors would also be threatened which would result in another blow to an already ailing U.S. economy. SDSU Finance Professor Dr. Dan Seiver expressed his concern that a solution would not be reached in time.
Can the President use the 14th Amendment to raise the Debt Ceiling?
If Washington fails to reach a financial agreement in time, is there another solution available to the President? “The president has the power during crises to take actions that are necessary to protect the country,” said Eric Posner, a law professor of the University of Chicago. Some Democrats have urged President Obama to exercise his authority under a portion of the 14th Amendment as President Franklin Roosevelt and President Harry Truman did in the past. www,usatoday.com