Government Shutdown Averted

by Marilou Long on October 27, 2015

in deficit spending,Fiscal Policy,politics,Recommended Reading

 

Congressional leaders have reached a tentative deal with the White House to raise the debt limit and set the budget for the next two years.  The deal looks very political to me.  From the linked article:

The House could vote on the deal as early as Wednesday, and the legislation is expected to be unveiled late Monday night.

If approved, it would provide a fresh start for Rep. Paul Ryan (R-Wis.), who is expected to be elected Speaker later this week and has not taken part in these budget negotiations, aides said. Outgoing Speaker John Boehner (R-Ohio) has said he wants to “clean the barn up a little bit” to make life easier for his successor.

It would also ensure Congress would not have to deal with the threat of a government shutdown or default before the 2016 elections, a goal of Senate Majority Leader Mitch McConnell (R-Ky.).

Yet getting a deal through the House and Senate could be an enormous challenge.

Raising the debt ceiling by itself is political poison for many Republicans, who have argued for deep spending cuts to be linked to any hike in the nation’s borrowing limit. Instead, the emerging deal would break the sequester and increase spending.

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