Obama calls for a 'balanced approach' to solving debt crisis
President Barack Obama delivers a rare prime-time address to the nation on July 25, 2011, as polarized lawmakers failed to rally behind a plan to address the pending debt ceiling deadline just a week away.
Marketplace Washington reporter David Gura talks with Kai Ryssdal following President Barack Obama's address to the nation tonight, urging Congress to reach a deal in the stalled debt negotiations.
With just a week to go to before a self-imposed deadline to extend the debt limit or risk reaching our borrowing limit, the President again appealed to Congressional leaders to reach an agreement.
David Gura He characterized it as something that directly affects the lives of all Americans. He stressed tonight that this is about compromise still. He wants America to see this is something between what's right and what's fair and what isn't.
On the two newest plans up for debate, first Senate Majority Leader Harry Reid's new budget proposal:
Gura: This one would have a little bit more than $2.5 trillion in savings over the next decade. Here's the thing: it wouldn't touch Social Security or Medicare or Medicaid, and that's a big deal because that's something that a lot of Democrats -- particularly progressive Democrats -- have said is really important.
Then House Speaker John Boehner's:
Gura: It's based on a plan that passed in the House that was called "Cut, Cap and Balance" -- sort of based on the principles of that, Boehner said. It would raise the debt limit in two stages: first by about $1 trillion in exchange for about $1 trillion in cuts. Then there would be a bi-partisan commission that would suggest $2 trillion more in cuts. After that, there could be another vote on raising the ceiling, and that wouldn't take place until next year. And that's something the Democrats -- particularly the White House -- have said that they're against.
For complete analysis, click on listen to the full interview.