By John Carney

Our nation is heading toward an Aug. 2 deadline to raise the debt ceiling and avoid defaulting on our debt. If Congress doesn't act quickly, the United States will face an economic disaster that could have easily been prevented.

The U.S. owes its creditors trillions of dollars. Our government has a responsibility to pay back that debt with interest, just as any American with a credit card knows. Last week, Federal Reserve Chairman Ben Bernanke testified before the House Financial Services Committee. Chairman Bernanke's message was very clear: a default will signal to the global financial markets that the United States is not a trustworthy borrower. The Treasury Department has also stated that defaulting on our debt would result in an almost 1 percent decrease in gross domestic product, hurting job creation and having a devastating effect on the economy. To put it bluntly: we can't afford a default.

If we don't raise the debt ceiling, the world will lose confidence in the U.S., and its credit rating will almost certainly be downgraded from its current, bulletproof triple-A grade. Losing our triple-A credit rating will increase our interest payments, adding at least $100 billion in new debt service payments for the country and making it more difficult to get our fiscal house in order.

The resulting turmoil across the world will seriously affect ordinary Americans. Banks set interest rates based on the returns they get from investing in U.S. Treasury securities. A default would mean higher interest rates, forcing consumers to pay more for mortgages, car loans and other borrowing.

For too long, Democrats and Republicans have spent trillions of dollars the nation didn't have. I wasn't in Congress to approve that spending, but I'm there now -- and I am committed to finding a solution. I've already voted for more than $40 billion in immediate spending cuts and introduced a bill to cut another $20 billion this year. I will continue to push for smart spending reductions in the short term that don't undermine our economic recovery. But we must also make structural changes over the long term to reduce the debt and put us back on a path to surpluses, as we had in the late 1990s.

I have repeatedly said that the need to raise the debt ceiling is a perfect opportunity for both sides to agree on a plan to reduce the deficit by $4 trillion over the next decade. I've also consistently said that everything should be on the negotiating table -- with both sides agreeing to compromise on a balanced plan that reduces spending, increases revenue through tax reform and strengthens entitlement programs for the future.

The plan put forward by former Sen. Alan Simpson and former White House chief of staff Erskine Bowles -- a Republican and a Democrat -- is a comprehensive, balanced model for action. It's not perfect, but it's a very strong start. If we put our partisanship aside, the two parties can find enough common ground to pass a comprehensive debt reduction plan with a debt ceiling increase.

Many Republicans, including House Speaker John Boehner, acknowledge the importance of raising the debt ceiling. In fact, every Republican in the House voted for a budget earlier this year that requires raising the debt ceiling numerous times in coming years. Speaker Boehner was prepared to work with President Obama on a large-scale balanced plan, and they appeared to be making progress. Obama and Boehner discussed raising revenue by closing tax loopholes, ending unnecessary subsidies and reforming the tax code to make it more efficient. I support those efforts. The president offered three times as many spending cuts as revenue increases. Everyone from nonpartisan economists to conservative talk-show host Bill O'Reilly have said revenue is necessary for any real plan.

Unfortunately, tea party Republicans -- a powerful voting bloc in the House -- have refused to support a plan that includes any new revenue. Majority Leader Eric Cantor has led that group's opposition to a balanced plan, effectively ending the momentum Speaker Boehner and President Obama had built for a compromise that would have produced real progress on deficit reduction.

While I continue to fight hard for a large, balanced plan, individual members like me only get to vote on what majority leadership decides to bring to the floor.

It's time for everyone to stop with the political posturing and do the right thing for the country. This is the United States of America, the greatest and most important economy in the world. America doesn't just stop paying the bills because we don't feel like it. The time has long passed to get an agreement. The U.S. currently has a once-in-a-generation opportunity to fundamentally alter the fiscal path of the nation. We need to take advantage of this moment.

Congressman John Carney, who sits on the House Financial Services Committee, represents Delaware.

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