HNN Poll: What Do You Think of the Deal to Raise the Debt Ceiling?HNN
President Obama and congressional leaders reached a deal Sunday to extent the debt ceiling. The plan calls for $2.4 trillion in spending cuts over the next ten years, with future potential cuts in the trillions. What do you think of the deal? Comment below!
Food for Thought:
The big picture is that the deal is a victory for the cause of smaller government, arguably the biggest since welfare reform in 1996. Most bipartisan budget deals trade tax increases that are immediate for spending cuts that turn out to be fictional. This one includes no immediate tax increases, despite President Obama's demand as recently as last Monday. The immediate spending cuts are real, if smaller than we'd prefer, and the longer-term cuts could be real if Republicans hold Congress and continue to enforce the deal's spending caps.
The framework (we haven't seen all the details) calls for an initial step of some $900 billion in domestic discretionary cuts over 10 years from the Congressional Budget Office (CBO) baseline puffed up by recent spending. If the cuts hold, this would go some way to erasing the fiscal damage from the Obama-Nancy Pelosi stimulus. This is no small achievement considering that Republicans control neither the Senate nor the White House, and it underscores how much the GOP victory in November has reshaped the U.S. fiscal debate.
A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong.
For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.
comments powered by Disqus
- U.S. Planned for Military Occupation of Cuba
- New picture emerges of Mata Hari, who faced firing squad 100 years ago
- Massive section of Western Wall and Roman theater uncovered after 1,700 years
- Fight over national monuments intensifies
- Martin Luther: Reluctant reformer who rocked Christianity 500 years ago
- Historian Keri Leigh Merritt defends activist scholars
- Historian digs into the hidden world of Mormon finances
- A historian who became a business professor?
- Allan Lichtman's response to critics of his book that makes the case for Trump’s impeachment
- "Do We Have To Fight Nazis Again?” asks historian Paul Ortiz