From the New York Times - By BINYAMIN APPELBAUM - WASHINGTON — There is something you should know about the deal to cut federal spending that President Obama signed into law on Tuesday: It does not actually reduce federal spending. By the end of the 10-year deal, the federal debt would be much larger than it is today. Indeed, both the government and its debts will continue to grow faster than the American economy, primarily because the new law does not address federal spending on health care. That is the reason that the ratings agency Standard & Poor’s and its rivals still are threatening to remove the United States from their lists of risk-free borrowers, although the other agencies, Moody’s and Fitch, both said Tuesday that they would watch and wait for now. It is also the reason that many conservative Republicans refused to vote for the agreement, calling it a grossly inadequate answer to a pressing problem. Read more
Aug 3, 2011
Spending Cuts Seen as really an increase in spending
From the New York Times - By BINYAMIN APPELBAUM - WASHINGTON — There is something you should know about the deal to cut federal spending that President Obama signed into law on Tuesday: It does not actually reduce federal spending. By the end of the 10-year deal, the federal debt would be much larger than it is today. Indeed, both the government and its debts will continue to grow faster than the American economy, primarily because the new law does not address federal spending on health care. That is the reason that the ratings agency Standard & Poor’s and its rivals still are threatening to remove the United States from their lists of risk-free borrowers, although the other agencies, Moody’s and Fitch, both said Tuesday that they would watch and wait for now. It is also the reason that many conservative Republicans refused to vote for the agreement, calling it a grossly inadequate answer to a pressing problem. Read more
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