The debt-ceiling deal that congressional leaders and the White House agreed to last night will shortchange the American Dream and make economic growth after a recession very difficult. Even though it represents a narrow escape from a financial disaster, EPI’s president Lawrence Mishel points out that “the debt we are undertaking now and scheduled to undertake over the next ten years is solely the product of past decisions.” The two-phase agreement which includes cuts in spending over the next two years and a super-committee charged with proposing $1.5 trillion in additional cuts abrogates the blame from those who instigated elements of our current fiscal crisis to those finding a way to fix it. The extension of Bush tax-cuts contributed over $800 billion to our government’s increased borrowing authority. Their two-year extension is now being fully financed with deep spending cuts. Mishel who is convinced that “we should end the need to legislatively raise the debt ceiling” offer his opinion saying “Jobs should be the priority and jobs are the path to get our nation’s fiscal situation to a responsible place. ”
