Congress Reaches a Budget Deal

by Marilou Long on December 11, 2013

in deficit spending,equity market,Fiscal Policy,politics

The good news is that there won’t be another prolonged budget fight in January.  However, there really isn’t much in this deal to reduce our long term deficits.  From the linked WSJ article:

The plan is modest in scope, compared with past budget deals and to once-grand ambitions in Congress to craft a “grand bargain” to restructure the tax code and federal entitlement programs. But in a year and an institution characterized by gridlock and partisanship, lawmakers were relieved they could reach even a minimal agreement.

“In divided government, you don’t always get what you want,” said Mr. Ryan in announcing the deal.

Ms. Murray joined him in welcoming the prospect that lawmakers would steer away from a crisis-driven budget process. “We have lurched from crisis to crisis, from one cliff to the next,” she said. “That uncertainty was devastating to our fragile economic recovery.”

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