Washington’s latest stalemate over federal spending has divided partisans, as the threat of an economic downfall continues. President Obama and John Boehner must come to an agreement by August 2nd about whether to raise the debt ceiling, or the nation will default on its economic income.
If this begrudging debate results in a U.S. debt default, it could potentially weigh in on American’s personal finances in many ways, such as boosting interest rates and loans and denting already dwindling retirement accounts.
Democrats and Republicans continue to sift through proposals that could cut trillions of dollars from government programs including much needed Medicare and Social Security.
The NAACP and other black groups though, have adamantly asked Obama not to cut spending for federal assistance programs, saying that it would most hurt urban areas with high rates of unemployment.
Amidst the economic downfall, recent data from the Pew Institute was released showing that the wealth gap disparity between whites and minorities is the widest it has been in a quarter century.
“The findings are a reminder — if one was needed – of what a large share of blacks and Hispanics live on the economic margins.” Director of Pew Social and Demographic Trends Paul Taylor stated.
In addition, Taylor told Newsone.com that “When the economy tanked, they’re the groups that took the heaviest blows.”
Failing to raise the debt ceiling could weaken the already jobless U.S. economy, and could increase the anxiety and stress amongst companies, investors, consumers and unemployed Americans.
In this extremely pivotal moment in U.S. economic history, we stopped by the beauty shop to see how they were reacting to this momentous political debate.