SALT LAKE CITY -- Incumbent president Barack Obama will face one of his toughest challenges to re-election this month as Congress debates the current debt-ceiling dilemma; a dilemma that could ultimately hurt him no matter what the outcome is.

Nearly every presidential election is directly correlated to the nation's current state of the economy. In general, if the economy is booming, the incumbent president is likely to secure a second term in office. However, if the economy is in trouble, as it has been for nearly four years, the incumbent president will struggle to show the American electorate that the current policies are beneficial for the country.

Congress has contentiously been debating an increase to the debt ceiling for about two months now, with no immediate resolution expected in the near future. However, as Congress quickly approaches its credit limit, the pressure has intensified.

Republicans have previously said they would only agree to raise the debt ceiling if there was a promise attached to reduce congressional spending and to approach a solution with consideration of a Balanced Budget Amendment.

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The debt-ceiling deal that President Barack Obama hopes to negotiate with Republicans won't solve the nation's problem with red ink, as he stated in his first Twitter session with the public.

Among those leading the Republican talks is Sen. Orrin Hatch, the author of a proposed Balanced Budget Amendment, and Sen. Mike Lee, a strong advocate for the Cut, Cap, Balance pledge.

"According to CBO, our fiscal outlook has been made worse by this White House," Hatch said. "Allowing our debt to rise to twice the size of its GDP is unsustainable and economically dangerous."

The President, Hatch said, remains disconnected from the American people and the policies needed for job creation.

"Regrettably, the President remains disengaged and continues to advocate policies to move our country further on a path where the government takes more and more of our economic pie, leaving the private sector, our job creators and our families with less and less," Hatch said. "It's time for real presidential leadership to pave the way towards a new era of stronger job markets, restrained spending, and falling deficits."

On Tuesday, President Obama encouraged Congress to resolve debt-ceiling talks and come to a decision within a two-week period, saying: "We need to come together over the next two weeks to reach a deal that reduces the deficit and upholds the full faith and credit of the United States government and the credit of the American people," he said at the White House. "We've made progress, and I believe that greater progress is within sight, but I don't want to fool anybody: we still have to work through some real differences."

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Obama will meet with leaders from both parties at the White House Thursday, in an attempt to reach an agreement between the two opposing views. According to the administration, an agreement needs to be made by Aug. 2 to avoid economic turmoil.

If President Obama can successfully negotiate a deal with Republicans, it could help him in his upcoming election, as voters see the President working in a bi-partisan effort to forge a solution to an essential governmental need. However, if the president bends to Republican demands, Obama's voting bloc could be hurt, as voters become more skeptical of a president that has given in to Republican demands on several occasions.

In what could be considered a nuclear option for the president if debt- ceiling negotiations fail, there is a remote chance Obama could declare the debt ceiling unconstitutional using a clause of the 14 Amendment, which states that the "validity of the public debt of the United States … shall not be questioned."

Ultimately, the president would be forced to suspend many government programs to pay off current debt loads to come within a reasonable limit.

"I don't think we should even get to the constitutional issue," Obama said. "Congress has a responsibility to make sure we pay our bills. We've always paid them in the past. The notion that the U.S. is going to default on its debt is just irresponsible."

Although the option may have some legal standing, many believe a decision of that magnitude would be akin to political suicide, particularly with a Republican Party that would threaten impeachment if such a decision was sought.

If negotiations fail altogether, President Obama will have an even more difficult time trying to convey to the American people that he's the man to solve the growing problems of the economy. President Obama has a very fine line to walk without damaging his chances for a second term.

Related political news:

• Republican front-runner Mitt Romney released Wednesday a long list of Utah elected officials backing the former Massachusetts governor. Most noteworthy was Rep. Jason Chaffetz backing Romney over his former boss Jon Huntsman Jr. However, Gov. Gary Herbert has yet to declare his support for either Romney or Huntsman.
• The Romney camp announced Wednesday the former governor has raised a total of $18.25 million in the last three months, which drastically distances him from his closest Republican competitors. Romney intends to raise $50 million for his presidential campaign to secure the GOP nomination. The Republican front-runner's closest competitor was Rep. Ron Paul of Texas, who raised a total of $4.5 million.
• Sen. Orrin Hatch will bring the Senate Finance Committee to Utah later this month for a field hearing. The hearing will focus on the growing problems associated with Medicaid.

Email: jfurlong@ksl.com

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