On August 2, President Obama signed into law a debt plan that if not passed could have resulted in a financial crisis for the United States.
The bill was passed in the House of Representatives on August 1 with 269 voting in favor and 161 against. The bill then went to the Senate the next day with 74 for and 26 against before going to the President’s desk.
This comes after similar plans put forth by House Speaker John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV) were both shot down this last week.
The final debt plan consists of two-phases. The first phase will cut almost $1 trillion dollars over the next ten years.
The second phase creates a committee that will be known as “Super Congress,” consisting of six Republicans and six Democrats, which will be tasked to find around $2 trillion more in cuts during the next decade.
“Super Congress” will have until November 23 to come up with a plan that at least seven members agree to. If that happens, the plan will go through both houses of congress to be voted on and passed with a simple majority, but stipulations include no filibustering or amending.
However, if no plan can be passed, “triggers” in the current bill automatically will cut some discretionary and defense spending in order to make the quota, giving neither party a say in such cuts.
“Everything is on the table for that committee,” said White House Press Secretary Jay Carney. “Entitlement reform and tax reform. And let’s be clear, the president thinks that the biggest possible overall accomplishment, in terms of deficit reduction, is a desirable goal, as long as it’s balanced.”
“Washington has the ability to focus when there’s a timer ticking down and when there’s a looming disaster,” President Obama said. “It shouldn’t take the risk of default to get folks in this town to work together. We’ve got to do everything in our power to grow this economy and put America back to work.”
While lawmakers were all happy that a deal could be reached, not all were so happy with the results.
“This bill does not solve the problem, but it at least forces Washington to admit that it has one,” Senate Republican Leader Mitch McConnell (R-KY) said on the floor.
Senate Majority leader Harry Reid (D-NV) was a bit more optimistic.
“Sometimes it seems our two sides disagree on almost everything,” said Reid. “But in the end, reasonable people were able to agree on this: The United States could not take the chance of defaulting on our debt, risking a United States financial collapse and a world-wide depression.”
All lawmakers, however, hope that this marks the beginning of a better financial future for the United States of America.
