The Truth About the Debt Ceiling Agreement

August 4, 2011

You may have read that the debt ceiling agreement's budget cuts are prudent, responsible and an essential step toward righting the U.S. economy. It's not so. In NOW's view, the agreement is unfair, unbalanced, and will primarily hurt women, seniors, poor families and children.

Under the deal, nearly $1 trillion will be cut from discretionary spending over the next 10 years, with another $1.5 trillion in deficit reduction through "tax reform" (a term that few believe will entail requiring the wealthiest to pay their fair share) and spending cuts to be proposed by a congressional super-committee in November.

Because no new tax revenues are included in the first phase -- the Tea Party faction in the House opposed that -- all the burden of reducing the federal deficit falls on low- and middle-income families. Without increasing revenues by fairly taxing multi-millionaires, billionaires and large, highly profitable corporations, the federal government will be left with few resources to help grow the economy and put millions of the unemployed back to work. Cutting important government programs at a time when millions are out of work, state budgets are in crisis and economic recovery is stalling is a very bad solution, and the economic consequences to the country will be severe.

Assessing the exact damage that's been done, and what could follow, is a big task. The mainstream media, for the most part, are clearly not up to the challenge -- in fact, their continued promotion of discredited right-wing talking points suggests the media are acting on behalf of big business and not in the public interest. So, to best inform you about this massive injustice, NOW has collected informative analyses of the debt deal from our most authoritative allies and responsible commentators. We'll add more links in the coming days and weeks, so keep checking back for more information.

Unbalanced Debt Ceiling Deal Cuts Vital Programs; Critical Fights Ahead
National Women's Law Center

Who's Helped and Who's Harmed by Debt Deal, by George Zornick
The Nation

The President Surrenders, Paul Krugman
The New York Times

Statement of Robert Greenstein, President, On New Debt Ceiling Agreement
Center on Budget and Policy Priorities (CBPP)

The Most Terrifying Result of the Debt Ceiling Crisis, Robert Greenstein
CBPP's Off the Charts blog

Good News and Bad News in Debt Limit Deal, William G. Gale
The Brookings Institution

The Hostage Crisis Continues: Why Obama Can't Pivot to Jobs and Growth
Robert Reich's blog

War, Debt and the President, by Amy Goodman
Reader Supported News

From the debt debate to a hostage revolt, Katrina vanden Heuvel
The Washington Post

The Republic of the Debt Ceiling, Matthew Yglesias
Think Progress

How the Potential Across-the-Board Cuts in the Debt Limit Deal Would Occur, by Richard Kogan
Center on Budget and Policy Priorities

Slide Show: The 8 Biggest Winners and Losers of the Debt Ceiling Deal
The Nation