By Steve Brawner, © 2019 by Steve Brawner Communications, Inc.
While the nation’s attention was divided between President Trump’s back-and-forth with Democratic congresswomen and Robert Mueller’s upcoming testimony, negotiators this week crafted a deal that may “end up being the worst budget agreement in our nation’s history.”
That description came from Maya McGuineas, president of the Committee for a Responsible Federal Budget.
The agreement was reached by President Trump’s Treasury secretary, Steven Mnuchin, and Speaker of the House Nancy Pelosi, and it was announced by an enthusiastic Trump tweet.
The deal suspends the federal debt ceiling until July 31, 2021 – after next year’s election. Suspending the ceiling wouldn’t necessarily be a bad thing under other circumstances; frankly, we probably need to ditch it permanently. It accomplishes no purpose other than creating periodic crises that rattle financial markets and make the United States look like it can’t get its act together.
The problem is the deal eliminates spending limits created in 2011 that actually did slow the national debt’s growth a little. Since those will be gone, we’ll spend an additional $320 billion over the next two years on both defense and non-defense expenditures – paid for by borrowing, as always. The Committee for a Responsible Federal Budget says the deal could add as much as $1.7 trillion to the national debt over a decade. Continue reading
