Sunday, April 10, 2011
New Deal avoids government shutdown
Democrats and republicans have struck a deal regarding the government budget. Both parties gave compromises while the democrats agreed to cut nearly $80 billion from the proposed budget for the year, equalling nearly $38 billion less from current spending levels. Although this bill has passed, the next challenge will be the agreeing on raising the debt ceiling imposed on the federal government. The republicans say they will not pass the bill unless the democrats agree to even larger budget cuts, which had led this past bill to almost not pass. Only time will tell.
Subscribe to:
Post Comments (Atom)
2 comments:
First thing come into my mind was: "The Republican won!". This is more like a political decision where the two parties battled over the economic outcome. The decision will surely help the government to carry out more tasks and stay away from being "bankrupted". President Obama said some of the cuts are painful but I believe the negative effect will not be that large.
It's nice to see some efforts of bipartisanship after weeks of bickering. Our national debt continues to grow exponentially out of control, so government spending cuts-however drastic or widespread-are a must. It will be interesting to see what changes will be made for the final legislation and if a government shutdown can be avoided before Thursday's deadline.
Post a Comment