While much has been made about the debt ceiling compromise, a number of economic experts are not convinced that it will do much to fix America’s financial woes.
“A drop in the bucket, or even spit in the ocean,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, told Fox News about the potential long-term impact of the legislation on the country’s debt issues.
MacGuineas said that such the legislation was a step in the right direction.
“But this is nowhere close to the amount of savings we need to really get on top of this deficit and debt challenge. We’re on course to borrow about $10- or 11 trillion over the next 10 years,” she said. “And $2.5 trillion in savings over 10 years is not going to fix the problem. It’s not even going to set us on the right course quite yet.”
Regardless of the deal, America’s sterling AAA rating may still be threatened as Standard & Poor’s said in July that the debt needed to be reduced by $4 trillion.
“We expect the debt trajectory to continue increasing in the medium term if a medium-term fiscal consolidation plan of $4 trillion is not agreed upon,” the rating agency said, reports Reuters.