{"id":1943076,"date":"2023-06-02T17:21:02","date_gmt":"2023-06-02T21:21:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-debt-deal-will-impact-the-economy\/"},"modified":"2023-06-02T17:22:50","modified_gmt":"2023-06-02T21:22:50","slug":"how-the-debt-deal-will-impact-the-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-debt-deal-will-impact-the-economy\/","title":{"rendered":"Debt deal&#8217;s impact on the economy."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-the-debt-deal-will-impact-the-economy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1943076&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Debt Deal: What You Need to Know<\/h2>\n<div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0602\/61d3b69e-6a4b-4110-90d5-22c91d8cba37\/audio.mp3?length=3948813&#038;duration=329\"><\/div>\n<p>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.<\/p>\n<h3><strong>What the Deal Includes<\/strong><\/h3>\n<ul>\n<li>A $50 billion reduction in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-passes-monster-spending-package-with-backing-from-at-least-18-republicans\/\" title=\"Senate Passes Monster Spending Package With Backing From At Least 18 Republicans\">nondefense discretionary spending<\/a> for fiscal 2024<\/li>\n<li>The president agreed not to spend $30 billion in as yet unspent COVID funds<\/li>\n<li>The debt-ceiling agreement provides for a 1 percent cut in all discretionary appropriations if Congress fails to pass all appropriation bills by the end of this year<\/li>\n<\/ul>\n<p>Many Republicans will be disappointed with this small change in direction. However, elections have consequences. With the Democrats in charge of two-thirds of the government, there are limitations to what the remaining third can accomplish. From this perspective, the House Republicans were at least able to trim a bit of the excess federal spending from recent years.<\/p>\n<h3><strong>The Negative Impact of Excessive Federal Spending<\/strong><\/h3>\n<p>My book, <em>Rich Nation, Poor Nation: Why Some Nations Prosper and Others Fail<\/em>, documents major cycles of prosperity and failure. One characteristic of U.S. policy failures has been cycles when <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-debt-deal-will-impact-the-economy\/\" title=\"Debt deal's impact on the economy.\">federal spending grows faster<\/a> than private spending. Since 2020, federal spending has surged, bringing it to 31 percent of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-tale-of-two-depressions-the-forgotten-and-the-great\/\" title=\"A Tale of Two Depressions: The Forgotten and The Great\">gross national product<\/a> (GDP). Despite a recovery in 2021, federal spending increased to $6.8 trillion due to a combination of COVID spending and the initial stages of the president\u2019s \u201cBuild Back Better\u201d legislation. Although GDP rose by a sharp 7.50 percent in 2021, the surge in spending kept the federal share at a too-high 30 percent of the economy.<\/p>\n<p>Even with the debt deal, federal spending will remain at least 23 percent of the economy. This excessive spending can have negative consequences for the nation&#8217;s prosperity and future success.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>President Biden and House Speaker McCarthy&#8217;s debt deal ensures the government&#8217;s operation for 18 months. Both sides compromised on key issues, offering a glimpse into their future plans. The agreement provides clarity on each party&#8217;s vision.<\/p>\n","protected":false},"author":1580,"featured_media":1943077,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[9380,5487,9168,5663],"class_list":["post-1943076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-deals","tag-debt","tag-economy","tag-impact"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1943076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1580"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1943076"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1943076\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1943077"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1943076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1943076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1943076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}