One of the people in Washington that I trust to analyze financial things accurately is Larry Kudlow. On Tuesday, he posted an article at The Daily Caller explaining his views on the Debt Ceiling Deal.
The article reports:
Former Director of the National Economic Council Larry Kudlow said on Tuesday during his Fox Business program that the debt ceiling deal negotiated by House Speaker Kevin McCarthy was “a fiscal win” because it contains many conservative priorities, including regulatory provisions and work requirements for welfare.
McCarthy released the text of the Fiscal Responsibility Act on Sunday evening, which increases the debt ceiling through Jan. 1, 2025, taking it past the 2024 presidential election. “Let’s not forget there are no tax hikes, period, full stop,” Kudlow said. “So, I think this is a political win for Republicans and conservatives. It’s a fiscal win. It is a free-market capitalism win. Don’t let the perfect be the enemy of the good. Save America, pass the bill.”
I understand some conservatives’ reaction to the bill, but do they really believe that they can get anything better? The bill has to get through the Senate and be signed by the President. Compromise is the only way that is going to happen.
The article notes:
The law freezes discretionary spending on non-defense budgetary items at Fiscal Year 2022 levels, adds reforms to permitting for energy projects and includes new work requirements for some welfare programs. Many of those provisions were in the Limit, Save, Grow Act, which passed the House of Representatives by a 217-215 vote on April 26.
The reforms to permitting for energy projects were promised to Senator Manchin by the Democrats if he voted for the Inflation Reduction Act. After the vote, the Democrats reneged on that promise.
The bill also has some other good things:
“Student loan payments will be restarted to the tune of $5 billion a month and Joe Biden’s massive regulatory assault on energy and business will be stopped with a pay-go provision that says any executive branch regulatory costs must be offset by regulatory cost reduction,” Kudlow said. “By the way, Biden’s modern socialism regulatory assault has cost something in the neighborhood of $1.5 trillion.”
It’s not a perfect bill, but it is a good bill.