• Tag Archives debt
  • GOP leaders help Senate pass large increase in debt limit

    Congress approved a massive increase in the federal debt Wednesday, but only after Republican leaders linked arms and jumped together, helping Democrats pass a plan that will let President Obama borrow as much money as needed to cover federal obligations over the next 13 months.

    The vote was about as dramatic as they get. Senate Minority Leader Mitch McConnell, Kentucky Republican, held out for 40 minutes before casting the key vote to break his fellow Republicans’ filibuster. His top lieutenants then followed suit, clearing the way for a final vote to approve the debt ceiling increase.

    via GOP leaders help Senate pass large increase in debt limit


  • This is why the CBO’s deficit report is bad news

    In fiscal years 2014-2015, the deficit does indeed fall; it’s expected to drop another $36 billion next year. In 2016, though, things change: from then on, the deficit skyrockets, growing by an average of $66 billion a year.

    Over the next ten years, just the interest on the debt will grow to 1.3% of GDP, nearly quadrupling.

    The reason? While federal revenues are expected to grow in sync with GDP, spending growth is projected to far outpace GDP growth.

    via This is why the CBO’s deficit report is bad news


  • $1.1 trillion budget deal doesn’t change fiscal cliff

    The Associated Press reported today that Republicans and Democrats are ready to support a $1.1 trillion spending bill that would fund the federal government through its current fiscal year, which ends September 30, 2014. Citing a perceived mandate from voters to put aside their differences, Congress largely abandoned the superficial cuts remaining from sequestration.

    Those widely reported “cuts” weren’t really decreases in spending. They were merely promises to increase spending less than planned.

    Out in the real world, when an employee making $18.00 per hour gets a 5% pay cut, his new hourly wage is $17.10. That’s not how it works in Washington, D.C. When a federal program funded at $3 billion in 2013 is “cut,” it’s funded for $3.1 billion in 2014 instead of $3.2 billion.

    What have been called “draconian cuts” and “gutting the military” by hysterical politicians and media are, for the most part, increases in spending that beneficiaries deem inadequate. Now, even that infinitesimal restraint is gone.

    via $1.1 trillion budget deal doesn’t change fiscal cliff