Well, a deal is made. It is hard to be too excited about it because it leaves some very serious structural problems in place. The debt ceiling is raised which will calm markets but the effect on the poor and the working poor will be serious if not severe. When the cuts start working their way through the system they will result in further job losses and government expenditures which have the effect of stimulating the economy. At a time when our economy is desperate for demand to pick up to create jobs instead these cuts will cause demand to fall and the jobs picture will worsen.
We can all give a sigh that perhaps this round of disgust is over with the hope that the Congressional leaders will be able to bring the votes of their respective caucuses along. As usual, it will be the poor that suffer.
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