• President Donald Trump and bipartisan congressional leaders, on Monday, struck a crucial two-year debt ceiling and budget deal.
• The agreement would increase the US discretionary spending from $1.32 trillion currently to $1.37 trillion for the fiscal year 2020, notes Reuters.
• The House should approve the budget before members leave for a six-week recess from July 26. The deal needs to pass both chambers of Congress.
• The deal could help avert the looming threat of debt default and across-the-board spending cuts. Moreover, it may also prevent a government shutdown as the current funding will expire after September 30.
• The two critical factors, according to Speaker Nancy Pelosi, that lead to the agreement is to prevent a stock market collapse and the fiscal fallout.
• The deal could push the annual budget deficit to over $1 trillion next year owing to new spending and limited savings.
This bi-partisan deal strikes me as a convenient cop-out for the Trump Administration. Before even considering the aftermath of ballooning the federal deficit when we donâ€™t have much wiggle room in that regard, the dealâ€™s expiration date speaks volumes. A potential dilemma over debt and spending has now been pushed off until July 31st 2021, after the upcoming 2020 election has taken place. What thisâ€™ll allow Trump to take with him on the campaign trail is the means to claim that our defense is â€œstronger than ever,â€ and that we are â€œdoing great.â€ Well sure, by a drastic and reckless increase in budget spending, of course things will seemingly be sailing along smoothly. But thereâ€™s going to come a day in the future where this decision will prove to be a tough fix for whoever inherits it in 2021â€”in a worst case scenario, Social Security and Medicare will crumble from their already unstable structures. For now, though, thisâ€™ll likely only strengthen Trumpâ€™s supporters, as those who benefit from tax cuts and increased spending will be likely to favor the sitting president. Itâ€™s also such a shame to see this happen after Obama tried to rectify his first termâ€™s budget increases during his second term. Thereâ€™s context to consider, though, when looking at Obamaâ€™s initial budget increases. Obama was inaugurated when this country was in a financial crisis. It makes sense to increase federal spending in these circumstances. Currently, however, we have a good economy. To see such a drastic increase in spending seems like a resolution that lacks a vision of the future. Everybody seemingly got what they wanted out of this deal, but it is a band-aid to a problem thatâ€™ll show itsâ€™ claws in the years to come. Even more concerning is