Obama: No Guarantee of Social Security Checks if Talks Fail
Speaking to CBS News, President Obama said he cannot guarantee Social Security checks will be mailed out if an agreement fails.
Scott Pelley: Can you tell the folks at home that no matter what happens, the Social Security checks are gonna go out on August the third? There are about $20 billion worth of Social Security checks that have to go out the day after the government is supposedly gonna go into default?
President Obama: "Well, this is not just a matter of Social Security checks. These are veterans’ checks, these are folks on disability, and their checks. There are about 70 million checks that go out each month."
Pelley: "Can you guarantee, as president, those checks will go out on August the third?"
Obama: "I cannot guarantee that those checks go out on August third if we haven’t resolved this issue. Because there may simply not be the money in the coffers to do it."
GOP Overture Follows Corporate Plea for Debt Deal
McConnell’s surprise proposal came just hours after he told the Senate chamber he does not foresee a debt deal so long as President Obama’s in office.
Sen. Mitch McConnell: "I hope the economists are wrong and that our economy will continue to grow over the next year and one-half to buy us time to tackle the problems we face. But, after years of discussions and months of negotiations, I have little question that as long as this President is in the Oval Office a real solution is probably unobtainable."
McConnell’s apparent change of heart may have been influenced by corporate pressure. On Tuesday, a coalition of business executives and lobbyists issued a statement imploring lawmakers to strike a deal on raising the debt ceiling or risk harming the U.S. economy. The signatories included hundreds of top executives and groups, including the U.S. Chamber of Commerce and the Business Roundtable. Business Roundtable President John Engler said: "The business community in large numbers is saying to our leaders in Washington, ‘Do your job.’"