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By Randy Wray, Professor of Economics at the University of Missouri-Kansas City and Senior Scholar at the Levy Economics Institute of Bard College.
Don’t you feel relieved? After weeks of threats, hostage-taking, and other forms of deficit terrorism, our two political parties have finally “compromised” on what was always a foregone conclusion.
Superficially, the spending cuts don’t look like much. The grand compromise cuts $21 billion next year from a budget of $3.7 trillion—sort of like foregoing one Big Mac from your annual food budget. In spite of all the talk about needing to take the medicine now, rather than kicking the “deficit crisis” down the road, Congress adopted a plan to kick that can right down the interstate.
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