How Disappointing, but how predictable.
Politicians approved legislation in 2011 that was supposed to impose a modest bit of spending restraint over the next 10 years.
It wasn’t much. The enforcement mechanism, known as sequestration, merely was supposed to guarantee that spending climbed by $2.3 trillion rather than $2.4 trillion over the 10-year period.
But something is better than nothing, and the sequester that took place this year was a bitter defeat for President Obama and other advocates of bigger government.
But now there’s a deal to weaken the sequester and allow more government spending over the next two years. Hatched by Paul Ryan, the Republican Chairman of the House Budget Committee, and Patty Murray, the Democrat Chairwoman of the Senate Budget Committee, the most important takeaway is that the agreement will increase spending caps by $63 billion over the next two years.
This chart shows what will happen.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 25th, 2014 | John Ransom