The Debt Ceiling Deal Does Not Go Nearly Far Enough

June 09, 2023

Projections of huge savings are making the rounds. Nothing could be further from the truth.

by Veronique de Rugy Reason.com

We have a debt ceiling deal. It’s a relief for most people. This deal avoids a default and the need for the Department of the Treasury to make hard choices over which bills to pay. It gives Republicans the sense that a step was taken toward fiscal responsibility and gives Democrats the sense that they’ve made an unprecedented sacrifice. Many hope their spending restraint days are over. But a deeper look into headline-grabbing projections of huge savings reveals that nothing could be further from the truth.

Much more needs to be done, and it needs to be done pronto.

Indeed, while we may celebrate the end of another round of debt ceiling drama, it won’t make much of a difference in the long-term trajectory of the U.S. debt.