Marylanders 'Sick' of Political Stalemate

While D.C. Democrats and Republicans continue to play a game of chicken, Marylanders from across the board--government officials to working-class area residents--are becoming more than anxious about how the issue will play out locally.

 “I’m angry with both parties. I think they are doing what politicians do. It’s grandstanding,” said Karen Drabick of Columbia. “Someone wants to come in and act as the savior and they’re both holding out.”

Drabnick thinks the crisis will certainly affect the next election, and at the moment she doesn’t see any candidate worth voting for.

“We’ve gotten ourselves into such a predicament,” Drabick said. “It makes me angry when the problem is forced on us because other people are making bad decisions…You expect the government to be more sophisticated.”  

According to the New York Times, leaders within the Democratic and Republican parties have been going back and forth for the last several weeks about how to best deal with the debt ceiling issue, with each party cobbling together separate plans in the run-up to the Aug. 2 deadline.

However a joint-resolution has yet to be reached.

According to Obama’s Monday night address, while the White House and Democrats want tax increases to help curb the nation’s rising $14.3 trillion debt, Republicans are pushing for massive spending cuts without raising taxes.  

Obama said that if Congress fails to raise the debt ceiling by Aug. 2, the U.S. government will go into default, which would not only downgrade the country’s credit rating, but the country will be unable to pay its bills while interest rates could skyrocket.

In addition, if a deal is not made, it would mean an unprecedented defeat in this country’s history.

“If we have a default, it would be the first one ever induced by insanity,” said UMBC political science professor Roy T. Meyers, quoting one of Obama’s political advisors.

Meyers thinks the elected members of Congress don’t appreciate the risk the crisis could have on local governments.

 “State and local borrowing is highly related to federal government borrowing,” Meyers said. “A spike in federal interest rates would have very serious implications for some state and local governments. Those are legitimate concerns for all local county executives and county counselors.”

But while some are already planning in the case of a default, many are taking a wait-and-see approach.

In the wake of the ongoing crisis, just last week, Bloomberg.com reported that Moody’s is reviewing Maryland’s AAA bond rating for a possible downgrade.

As reported in an earlier story, Howard County Executive Ken Ulman, president of the Maryland Association of Counties, called on municipalities across the state to review their finances.

“The responsible thing for counties to do is review their books and prepare for the worst,” Ulman said in a statement.

Ulman has since held a conference call with Maryland’s county financial officials to encourage jurisdictions to brace for the possible default.

“This stalemate poses real risks to residents of Hoard County and Maryland who are employed by the federal government or who rely on social security and other benefits for survival.”

Ulman expressed concern that disruptions of federal programs would have negative effects on local government and business. He noted that a drop in federal government activity could significantly decrease income tax revenues--the second largest source of tax revenue behind property taxes.

Scott Peterson, spokesperson for Prince George’s County Executive Rushern Baker, had similar sentiments.

“We are very concerned,” Peterson said, noting that the default could affect county's plans to build a regional medical center there. He also expressed concern for county jobs. 

“We continue to watch the news. We do hope a deal is met as soon as possible,” Peterson said.

David S. Iannucci, the assistant deputy CAO for economic development for Prince George’s County, explained that the county--with its 15 significant federal facilities, representing a large portion of the county’s workforce--is particularly vulnerable in terms of potential job losses if significant cuts are made.

 “The potential cuts would have a disproportionate effect on the regional economy,” Iannucci said. “I think like all Americans, we are hopeful that compromises will be reached…There are so many unknowns.” 

Carroll County Commissioner Haven Shoemaker added, “It could have all kinds of implications, probably some that we’re not even aware of yet.”

Shoemaker continued that while the Carroll County board has yet to discuss the issue as a committee, most commissioners are paying close attention.

“We’re doing what the rest of the country is doing–waiting and seeing,” he said.

Meanwhile, the Baltimore County Executive Office had no comment on the issue.

“We’re not going to speculate,” said Ellen Kobler, deputy director of communications for Baltimore County Executive Kevin Kamenetz.

Prof. Meyer said that besides potential short-term effects of the crisis on the local governments, there are other problems that could be played out for years to come, especially if massive cuts are made to federal programs.

“Maryland is reliant on government employment and federal contracting. In the long-term the strengths of the local economy will be threatened,” Meyers said. “The eventual magnitude of cuts will be larger than what can be put in place this year. Over the next three or four years local government will have to plan for that eventuality.”  

As for Gov. Martin O’Malley, he’s been voicing strong concerns over the issue in recent weeks.

In a column he wrote for the Huffington Post, O'Malley stated, “The threats are real, the consequences are great and the implications for our country's future financial health are frightening.”

Meanwhile, feelings from the general public are ones of anger and frustration.

“I get so sick of it. I can hardly watch it anymore,” said Hugh Barnhardt of Catonsville. “I’m skeptical of both Democrats and Republicans and their special interests…Obama is a good man but he is in over his head.”

Barnhardt added that he’d like to see the debt limit stay where it is.

 “There will come a time when this country won’t be here; all there will be is debt. This spending has to stop,” he said.

Meanwhile, other locals are still struggling to make their own ends meet, without having to add the country's burden to their debts payable bill. Take Ellicott City resident Hillary Pearlman, who said she’s stopped paying attention to the crisis.

“I honestly try not to think about it most of the time,” the 27-year-old said. “Listening to the news is just depressing.”

Pearlman, who is an artist and works at a bakery, says she is too busy trying to scrape by than to think about the country’s larger problems.

 “I don’t think a lot is changing. Instead it’s spiraling worse. I don’t have the energy to focus on the national issues…I’m struggling paying for groceries.”

Liz Ehrlich, 23, of Carroll County called the economy “scary,” and said that she’s put off investing in real estate because of what’s been playing out in Congress.

“It’s sad to see that things are not being done,” she lamented.

Ehrlich, who works at a boutique, added that she has seen her family suffer through the ups and downs of the recession.

 “We’re being punished for trying harder,” Ehrlich said. “The economy is so uncertain…The job market is so uncertain.”

Of the debt crisis she added, “Unfortunately, so much of it is that both sides are getting in the way of each other.”

 To read an article about how the crisis could affect individual investing, visit .