Everyone admitted the compromise hashed out on the deficit was pretty poor no matter what way you spun it, I suppose the objective of avoiding default was obtained; other than that it will do more harm than good.
It really is about the economy.
In the past Okun's law [rule of thumb if you prefer] showed the relationship between GDP and unemployment. Times change and modifications are necessary.
These findings have practical applications. For instance, forecasting
the unemployment rate via Okun’s law is much improved by taking into
account its changing nature. These forecasts can be improved even more
by allowing for a dynamic relationship between unemployment and
output growth.
Unemployment has remained fairly static since the beginning of 2009 re:
Labor Force Statistics from the Current Population Survey
Austerity
Another brake on any growth is when you remove money from the economy.
“Over the next 10 years, there will be further spending cuts and higher taxes, and that’s not good for economic growth,” said Paul Dales, senior economist for Capital Economics Ltd. in Toronto. “It is the start of a meaningful move toward fiscal consolidation.”
Stagnant wages and economic uncertainty.
Wages have been stagnant yet underlying inflation has continued leaving less disposable income, again slowing down or even reversing growth as savings are trending higher.
For millions of working Americans, the phenomenon economists call "median wage stagnation" has become a way of life. For decades, their annual incomes have remained virtually the same, leaving many just a paycheck or two from the street.
Tax cuts
Any stimulus from the tax cuts has long since disappeared due to rising health and fuel costs that lead in turn to higher food prices. The lack of revenue has also resulted in austerity measures that may well drive down revenue further.
“There is a risk to the recovery that a large amount of fiscal drag is coming at a time when the economy is struggling,” said Peter Hooper, chief economist for Deutsche Bank Securities in New York.
This then feeds into the stock-market
Adding to the economic worries, data showed the U.S. services sector fell in July to its lowest level since February 2010, while new U.S. factory orders fell in June, pulled down by weak demand for transportation equipment.
Of course any federal cuts then filters through to the States
“The debt-limit deal inevitably will lead to large federal cuts in programs for state and local governments,” said Nicholas Johnson, vice president for state fiscal policy at the Center on Budget and Policy Priorities. “This is going to begin in the middle of the worst year for state budgets.”
This all leads to pessimism since there are no indicators that growth is possible and fears of a double dip recession prevail
Data in recent weeks has shown that the economic "soft-patch" seen around the world in the second quarter is proving deeper and more entrenched than many investors had thought
The myth around any compromise being good considering the difficulties is in fact so much bull it is hard to bear; what has happened is they have pissed off nearly everyone and sealed an economic mess for a decade to come.
When a deal sucks, it sucks
You keep smashing an economy over the head with the austerity is good for you meme and you end up with a bloodied economy.
What growth is going to happen?
Is there a market fairy?
The concentration of our wealth as a nation will continue; and all for what?
The next election will be all about the economy and nothing but the economy.
Who will carry the can?
personally i have never seen so much bullshit come out of DC at any one time its hard to know which way to turn.
Could it have been worse? We were never going to default that was just theater for media consumption.
Adults in the room.....sorry but I didn't see any
By refusing to consider revenue and how to spend it to free up the capital and stimulate the economy, it was then thrown under the bus by one sided austerity.
When a deal sucks, it sucks