Poll: Most see damage if U.S. debt limit not raised

WASHINGTON — Most Americans think jarring economic problems will erupt if lawmakers do not increase the government’s borrowing limit. Yet they are torn over how or even whether to raise it, leaning toward Republican demands that any boost be accompanied by spending cuts.

According to an Associated Press-GfK poll, 53 percent say that if the debt limit is not extended and the U.S. defaults, the country will face a major economic crisis. An additional 27 percent say such a crisis would be somewhat likely, while just 17 percent largely dismiss the prospects of such damage.

Separately, Republican officials said Wednesday that GOP lawmakers may seek a short-term extension of the debt limit, thus avoiding a default as early as next month by the U.S. Treasury while they try to negotiate spending cuts with President Barack Obama over the next few months.

“The worst thing for the economy is for this Congress and this administration to do nothing to get our debt and deficits under control,” said Rep. Paul Ryan, the party’s 2012 vice presidential candidate who is chairman of the House Budget Committee.

The poll’s findings echo many economists’ warnings that failure to raise the debt ceiling and the resulting, unprecedented federal default would risk wounding the world economy, because many interest rates are pegged to the trustworthiness of the U.S. to pay its debts.

Obama and many Republicans agree with that, though some GOP lawmakers eager to force Obama to accept spending cuts have downplayed a default’s impact.

When asked which political path to follow, 39 percent of poll respondents support the insistence by House Speaker John Boehner, R-Ohio, and Senate Minority Leader Mitch McConnell, R-Ky., that deep spending cuts be attached to any measure increasing the debt ceiling.

About 30 percent back Obama’s demand that the borrowing authority be raised quickly and not entwined with a bitter fight over trimming the budget.

Another 21 percent oppose boosting the debt ceiling at all.

The survey was conducted as the two parties gird for a debt-limit battle that is likely to dominate the next two months in the capital. The fight is sure to underscore partisan differences over how to curb federal deficits that have surpassed $1 trillion for four straight years.

Obama insists that besides spending cuts there should be more tax increases on the wealthy, which the GOP opposes.

While saying he will not negotiate on the debt ceiling, Obama has said he will bargain separately on finding ways to reduce the annual federal deficit.