Debt Limit Talks Show Deeper Debate on Government's Duties Voice of America

15.07.11

This is the VOA Special English Economics Report.

Anyone who has ever borrowed money can relate to the debate over raising America's borrowing limit. People who have reached their limit can try to ask their bank to increase it, and go deeper into debt. Or they can cut their spending and try to get their finances under control. Or they can do both.

Either way, they have to keep paying their bills. If they default on their debt, that only makes it harder and costlier to borrow in the future.

Congress set the government's current borrowing limit at more than fourteen trillion dollars.

President Obama and congressional leaders held hours of sometimes tense meetings this week at the White House. Opposition Republican leaders agree on the need to raise the borrowing limit by August second or risk the nation's first default.

The argument is over how to cut deficits. Most Republicans oppose any kind of tax increase. Most Democrats in Congress oppose big cuts in government spending, especially programs for retirees and the poor.

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