- CNTV English - CCTV News

Fight over U.S. spending far from over

01-04-2013 13:33 BJT

Watch Video

Play Video

By CCTV correspondent Daniel Ryntjes

The fiscal crisis has been averted for now, but U.S. policymakers face a series of predictably bruising political battles over the next few months, over the nation’s budget deficit problems. The problem is, the hard-fought fiscal crisis deal only dealt with the tax side of the equation and not spending reductions. These will have to be addressed soon.

President Obama cut short his Hawaii vacation to deal with the last-minute frenzy of fiscal cliff talks in Washington. Now he’s on his way back to his home state, after agreement was reached on taxation.

But the fight over spending is now heating up. The US Treasury expects to run out of ways to avoid default without Congress raising the debt ceiling by the end of February. Republicans want to use the authorization of raising the debt ceiling as a way to force Democrats to make painful cuts to health care and other social spending.

Dean Baker, Co-Director of the Center For Economic and Policy Research, said, "I think at the end of the day we’ve seen both sides be prepared to bluster. No one here is crazy, so I think it’s a pretty safe bet that they’re not actually going to make the US default on its debt."

President Obama says he won’t bargain over the debt ceiling as he did in the summer of 2011 when the result was a US debt downgrade.

But if the fight doesn’t end there, the focus will be on the automatic across-the-board spending cuts, known as sequestration, which will come into place in late March.

Daniel Hanson from American Enterprise Institute said, "The expansion in entitlements is the thing that’s driving. It’s the main driver of the deficits and the debt. And until they can get some kind of longer-term compromise about how to tame growth in entitlements, they’re not going to really tame the growth of deficits and debts."

Most are now hoping that lawmakers learn the lessons of the past week and consider ways to reach a deal without going down to the wire.

President Obama has himself indicated he’s willing to compromise on social spending.

But in the current political environment, you can’t bank on the two sides bridging the divide easily, when they remain so far apart on what they consider to be the correct size and role of government.


Editor:Zhou Minxi |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program