President Barack Obama spoke with the Wall Street Journal’s CEO Council meeting of nearly 100 chief executives, reiterating that his administration is not “lavishly spending,” and the debt ceiling is more of just a “loaded gun” for politics.
Warren Buffett likens it to a nuclear attack. Economists warn that government spending on programs like Social Security would plunge. The Treasury says the economy would slide into a recession worse than the last.
The government has reported a $97.6 billion deficit for July but remains on track to post its lowest annual budget gap in five years.
Senate Republican Leader Mitch McConnell insisted on Tuesday that President Barack Obama and Democrats spell out where they would cut government spending as part of any massive budget deal to avoid the “fiscal cliff” double hit of automatic tax hikes and spending cuts.