How the Debt Deal Will Impact the Economy
The debt deal between President Joe Biden and House Speaker Kevin McCarthy (R-Calif.) allows the federal government to continue functioning for the next year and a half. To make the agreement, both sides conceded what they believe are important issues. One thing the agreement provides is a clear picture each party envisions for the future role of government in our lives.
The Debt Deal
McCarthy did achieve several concessions from the president. The most significant was a $50 billion reduction in nondefense discretionary spending for fiscal 2024. The president also agreed not to spend $30 billion in as yet unspent COVID funds. Hence, it appears the main impact of the deal will be to reduce federal spending by a total of about $80 billion from what would have been spent in fiscal 2024….