Posts Tagged ‘Obama. Barack’

Most people seemed to agree that the narrowly avoided government shutdown would have hurt the economy. But the question is whether the budget deal struck to avert the shutdown will hurt the economy more than if Washington had just turned off the lights?

The budget deal struck by President Obama and John Boehner and other Republicans over the weekend will cut $38.5 billion from government spending in the next year. Generally, when the government spends less that slows the economy, just like when consumers or companies spend less. That was afterall the reason many people thought a government shutdown, which would have temporarily slashed government spending and furloughed 800,000 government workers, would have hurt the economy. (more…)