College Park Weighs In on Debt Ceiling Debate

It appears Republicans and Democrats are far from reaching a compromise in the national debt ceiling debate, making the looming default on Aug. 3 an even greater reality.

Even though default could send "shock waves through the entire financial system," according to Federal Reserve Chairman Ben Bernanke in USA Today, some in College Park don't have anything to say about the fiery discussion going on in Washington.

"I don't care about the debt ceiling," one resident said before scampering away.

But there are others in College Park who are concerned about the possibility of default.

Take College Park resident Lynn Wilson. She said she is "very much so" worried that lawmakers will fail to compromise by the Aug. 2 deadline.

Democrats want to address the debt with tax hikes, reduced spending and raising the debt ceiling. Republicans refuse to accept higher taxes, want deeper cuts in spending and are resistant to raising the debt limit.

The debate is a natural interest for Wilson. She has a degree in economics and currently interning for the Group of Thirty (G30), an economics and financial research organization in Washington, D.C.

But she said everyone should be thinking about this issue right now.

"Just as a citizen who pays taxes, it should be something you should be focused on," she said.

Residents predicted who would be most affected if the government did default: Elderly wouldn't receive their social security checks; the unemployed would suffer from cutbacks in government programs; and new businesses and others won't be able to get the loans they need, they said.

The Washington Post reported Wednesday that if a compromise isn't met, President Obama would be forced to decide what bills to pay and not to pay, like Social Security checks and military and veteran salaries.

To avoid such impacts, the residents agreed it's time for some party compromises, and they all said Republicans aren't willing to sacrifice enough.

"It should be a deal where each side ... gives up something," said Rick Northrop of College Park. "The Democrats have agreed to look at [cutting from] such programs as social security, Medicare, Medicaid. The Republicans absolutely need to consider revenue hikes," he said.

Wilson agreed.

"There's no doubt we need to cut the spending ... [but] just cutting spending is not going to solve this problem. There do need to be tax hikes," Wilson said.

And then there's Woody Scally, who lives in Landover Hills but occasionally shops in College Park. He's keeping up with the debate, but he's not all that worried about default.

"It won't happen. They'll all work together and muddle something out," Scally said.

Watch the video to listen to what else College Park had to say. Then add your comments below and tell Patch what you think. Do you think the country will default, or do our lawmakers have a compromise in them?