In the Nation's Interest
Who Wins in the Budget Deal? Not Congress.
Although Members of Congress are lauding their bipartisan efforts to produce a budget, a January 15 Washington Post article sums up their standings in the public eye quite succinctly, “Congratulations on your budget, Congress. America still hates you."
Since the financial crisis of 2008, the American economy has teetered on the brink of the fiscal cliffs and defaults more than once. A near debt-limit collision first occurred in August 2011, and included, an S&P downgrade of Treasury securities, financial upsets, and more.
Again in 2012, we faced potential upset. The Partnership for a Secure Financial Future warned that “Automatic spending cuts and tax increases triggered by "going over" the fiscal cliff would remove about $600 billion from the economy in 2013 and more than $8 trillion over the next decade.”
The federal budget is the largest single economic actor in the United States. Congress should not be so reluctant to take major action and stop this vicious cycle of near-misses. If for no other reason, it might help their approval ratings.
Read more about The Committee for Economic Development’s SAVEGO proposal to support smart deficit reduction here.