President Barack Obama and House and Senate leaders announced today they have reached an agreement on the U.S. debt. The plan calls for increasing the nation’s debt ceiling to avoid default, and then convening some kind of congressional committee later sometime to do something about reducing the deficit, maybe.
The plan might reduce spending by a trillion dollars someday, and there might also be tax reform to increase revenues, although no one is sure.
The agreement does clear the way for both Republicans and Democrats to move forward with their election campaigns without the distraction of taking care of the nation’s business, and without being pinned-down to any real policy that might prove unpopular with one or the others’ constituencies.
So after weeks of fighting, arguing, whining, moaning, crying, threatening, and acting like spoiled children, the nation’s leaders have decided to go back to business as usual.
The State of Minnesota closed-down after state lawmakers failed to resolve a budget impasse. Democrats want to cut the state’s $3.6 billion deficit by raising taxes, while Republicans want to cut spending. The budget deadline passed and the new fiscal year began with no resolution, throwing 20,000 state employees out of work and closing almost all state facilities.
Only Minnesota transport workers were on the job, placing large “Closed – turn around and go back where you came from” signs on all roads crossing the state border.