3,882
edits
2023 United States debt-ceiling crisis: Difference between revisions
2023 United States debt-ceiling crisis (view source)
Revision as of 18:48, 1 June 2023
, 1 June 2023no edit summary
No edit summary |
|||
| Line 115: | Line 115: | ||
==== Expedites pipeline in West Virginia ==== | ==== Expedites pipeline in West Virginia ==== | ||
The agreement would also speed the creation of the Mountain Valley Pipeline, a natural gas pipeline in West Virginia. | The agreement would also speed the creation of the Mountain Valley Pipeline, a natural gas pipeline in West Virginia. | ||
=== Economic Consequences === | |||
Despite the caps in spending, the debt ceiling deal will have a very small or limited effect on the economy. | |||
==== Analyst Estimates ==== | |||
# Goldman Sachs expect the deal to reduce federal spending by as much as 0.2% of gross domestic product per year over the two years of the deal, compared with their baseline estimate. <ref>https://edition.cnn.com/2023/05/31/business/debt-deal-economic-effect/index.html</ref> . “The boost to funding Congress approved late last year for FY23 was so large (nearly 10% year over year) that overall discretionary spending is likely to be slightly higher in real terms next year despite the new caps,” Goldman Sachs economists wrote in an analyst note. | |||
# Pantheon Macroeconomics, expects the deal to reduce GDP growth by about 0.2% in 2024 and by a further 0.1% in 2025, which are “well within the margin of GDP measurement error.” | |||
# EY-Parthenon’s chief economist, estimated that the proposed deal would have a 0.3% drag on real GDP in 2024 and lead to 250,000 job losses | |||
== 2011 Debt Ceiling Episode == | == 2011 Debt Ceiling Episode == | ||