The latest economic news for December 2013.
Proposed Budget for 2014
Yesterday (December 10th), House Republican Paul Ryan and Senate Democrat Patty Murray proposed a budget bill for 2014 and 2015 which would do the following:
- Reduce deficits by $23 billion.
- Avoid a shutdown of the Government in January, and next October.
- Includes; 1. some military cuts, 2. federal pension expense cuts, and 3. raises revenue from airline “travel fees” .
The good news: If this passes the House and Senate, it will be the first time since 2009 that Congress agreed on a budget.
The bad news: reducing deficits by $23 billion is a drop in the bucket. According to the White House Office of Management and Budget website, the expected deficits (losses) for 2014 and 2015 combined is $1.320 trillion. A $23 billion reduction would lower it to $1.297 trillion (or by 1.7%).
Apparently, our national debt will grow from $17 trillion to $18.3 trillion by the end of 2015. As such, over the next two years, we will see more of the Government’s irresponsible spending and no meaningful structural changes to our long term problems. This is very disappointing….