December 15th, 2013
12:39 PM ET
9 years ago

Budget experts: Don't expect big economic growth after budget deal

(CNN) – Two budget experts weighed in Sunday on the bipartisan budget deal reached last week, saying the deal brings a sigh of relief but not the reforms needed to create a positive shift for the economy.

"This doesn't get in the way. But there's some things out there that could finish this off and make it much more powerful," Douglas Holtz-Eakin, who was director of the Congressional Budget Office during the George W. Bush administration, said on CNN's "State of the Union."

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Holtz-Eakin said immigration reform and other permanent changes like tax reform and entitlement reform would better ease Wall Street's concerns and spur job growth.

The basic budget deal would soften the so-called "sequester cuts" while raising some airline fees, shrinking retirement benefits to veterans and forcing new federal workers to contribute more to their pensions. The GOP-controlled House overwhelmingly approved the measure this week, and the Democratic-led Senate is expected to narrowly pass the bill.

Asked by CNN chief political correspondent Candy Crowley whether the budget deal will help the economy, Peter Orszag, former director of the CBO and director of the Office of Management and Budget under President Obama, said it will help by a "teeny amount."

"I think it gives it a little bit of - even without immigration reform and other things - a little bit of a sense of 'Oh, we're not going to have yet more drama and debacles out of Washington,'" he said. "So the biggest thing is not what's contained within the four corners - it's the symbolism. We have not shot ourselves in the foot.'

Holtz-Eakin, jumping in, added: "Economic policy by symbolism is not a powerful thing."

Watch State of the Union with Candy Crowley Sundays at 9am ET. For the latest from State of the Union click here.

Filed under: Budget • Congress • TV-State of the Union
soundoff (21 Responses)
  1. Peppy

    So in other words, The house and senate are still inept, great.

    December 15, 2013 12:58 pm at 12:58 pm |
  2. Dennis Freeman

    What can be expected is more real wealth re-distribution – not what the Tea Party/GOP has been referring to for years. We can expect more flowing to the top 1-2% where it has been moving for many years.

    December 15, 2013 01:22 pm at 1:22 pm |
  3. Gunderson

    Economic Growth? You kidding me right? As long as Obama Care is hanging over the head of the economy there will be no economic growth. Too many people are not working or working part time. Get rid of Obama Care and extedt the Bush Tax Cuts for another 10 years and jobs will start to come back.

    December 15, 2013 01:30 pm at 1:30 pm |
  4. rs

    Don't expect economic growth as long as the GOP's goal is to undermine the economy with shutdowns and more.

    December 15, 2013 02:57 pm at 2:57 pm |
  5. Matt

    Symbolism is all this administration cares about. The President talks a good speech about jobs, and then just campaigns without implementing policies that actually change business behaviors.

    December 15, 2013 03:29 pm at 3:29 pm |
  6. Anonymous

    Not to worry, CNN. I expect very little from not only our Republican side of Congress but also the news media. Keeping America depressed and angry is a full time job and thankfully very few Americans actually take the time to tune in and listen to Republican controlled talking points media. For whatever reason, the MSM - including CNN - accepts this nonchalance as a majority rules agreement with its own one sided punditry; never mind viewing ratings across the board percentages suggest differently.

    December 15, 2013 04:50 pm at 4:50 pm |
  7. Peppy

    @rs, come on, quit blaming everyone else for bammys ineptness.

    December 15, 2013 05:01 pm at 5:01 pm |
  8. Rick McDaniel

    Don't expect anything more than what you have been jobs, more debt, no economic growth, and more disintegration of the middle class.

    December 15, 2013 05:45 pm at 5:45 pm |
  9. Leftcoastrocky

    And expect a second great recession if the Teapublicans decide to hold the full faith and credit of the U.S. hostage

    December 15, 2013 06:09 pm at 6:09 pm |
  10. Gurgyl

    If USA has brain, is educated–remove all these GOP congress thugs first, including my congress idiot too. Good luck.

    December 15, 2013 06:20 pm at 6:20 pm |
  11. HereInTheUSA

    Americans still need our elected leaders from both parties to start working together on actually trying to fix the real problems in our country like outsourcing, illegal immigration, the out of control costs of health care insurance and our reliance on foreign fuel.

    Fix them together as Americans! – Because united we'll stand, but divided we'll fall.

    If our leaders would really start making decisions based on the fact that they are elected by the Citizens of the United States of America to represent the best interests of those citizens and the country itself, we'd all be better off. * The American people just need them start remembering that they are NOT elected to represent the Global Market Place, Lobbyists or Foreign citizens! *

    The extended unemployment benefits need to be renewed until the Real American Economy actually starts to improve. *** If over the last 2-3 decades, both parties hadn't been selling out the bulk of the American citizens, who they're supposed to represent, by allowing the incursion of illegal aliens (cheap labor) and the outsourcing floodgates to open wider and wider without taking any sensible measures to stem the tide, this wouldn't have been necessary. ***

    Let's face it – Our economic problems didn't happen overnight. It's been happening over the past 15-20 years, but the economy was kept going by middle class Americans tapping into the equity on their homes until they were completely tapped out.

    Returning private sector jobs to American Citizens will provide income tax revenue to OUR Government versus our government having to pay unemployment benefits to those who would be jobless instead. We need our elected officials to Start Protecting American Jobs and do whatever it takes to bring back the jobs they let go. We need leaders who will actually stand up for the American people.

    We need to make smart cuts, but massive cutting just puts more people on unemployment, which just depresses the economy even further.

    The ONLY REAL FIX for our great country is to Raise Revenue, by Bringing Back Jobs to US Citizens who Pay Income Tax.

    December 15, 2013 06:51 pm at 6:51 pm |
  12. Phyllis Gwendoline Williams

    Mr.Douglas if God has given you some wisdom about the Budget, He expects you to see that this Wisdom is used for the benefit of His people (St.James 1: 5)

    December 15, 2013 07:39 pm at 7:39 pm |
  13. Obama - Liar of the Year

    The Obama administration is the most incompetent group of idiots and liars ever assembled. They could care less about jobs. They are more interested in jamming their far left insanity down our throats. They spent the first two years when they had total control attacking and regulating every business in sight. Obamacare is a massive jobs killer, Dodd-Frank jobs killer, green energy boondoggles a total waste of many billions, Keystone pipeline (forget about it, the nutty left owns Obama). 7% unemployment or higher is the new norm thanks to Obama and the Democrats. Almost 5 years after the recession ended, we are still at record high unemployment. The reason is Obama and the far left Democrat party. They are more interested in giving money away to people that don't work, than providing an environment that fosters economic and job growth.

    December 15, 2013 07:52 pm at 7:52 pm |
  14. FidyCents

    Most Americans realize this. Only the progressive hillibillies in the Democrat party are cheering right now.

    December 15, 2013 07:55 pm at 7:55 pm |
  15. FidyCents

    Any economic growth will not included ideas or measures from the Democrats. They only focus on spending and taxing and really offer no new ideas at all.

    December 15, 2013 07:58 pm at 7:58 pm |
  16. rs

    Symbolism is all this administration cares about. The President talks a good speech about jobs, and then just campaigns without implementing policies that actually change business behaviors.
    Remind me again Matt how many jobs bills the Republican lead ("do nothing") House has passed in the last 5 years?

    December 15, 2013 08:04 pm at 8:04 pm |
  17. longfisch


    Don't expect economic growth as long as the GOP's goal is to undermine the economy with shutdowns and more.

    Until you are willing to step away from the hate, you will continue to be a part of the problem of keeping America divided.

    December 15, 2013 11:38 pm at 11:38 pm |
  18. Thomas

    Where were we in 2007 ?

    December 16, 2013 12:44 am at 12:44 am |
  19. Warren

    There is no Budget, it is doublespeak. There has been no budget, and so, no budget oversight, no accounting that the people can use to measure this administration. "Continuing resolution" is the worst example of doublespeak ever. It is the most unresolved lacking of a budget on a continued basis. It means they have failed to do their most important govt. job and they have a media that will lie about this by calling it a Budget "deal", when it is no deal for anyone. It is a failure to "deal" with the fact that funds are limited, economies are strapped for cash and instead chooses to "deal" with everything BUT the budget. The truth is that governmentalists RULE us with an iron glove of Regulations and laws that become required for them to perpetuate this lie of "For the people".

    December 16, 2013 03:27 am at 3:27 am |
  20. A True Conservative

    @rs – you're kidding, right? We will not see real economic prosperity until the left stops trying to redistribute wealth. Giving a man a fish doesn't teach him to only brings him back tomorrow asking for another free fish.....

    December 16, 2013 07:11 am at 7:11 am |
  21. michael

    There will be no economic growth, until the Bush Tax cuts for the rich is repealed, taxes go up on the rich to 45%, Corporations no longer can go without paying their fair share of income tax yearly, no more corporate welfare (they have not contributed to creation of jobs even with tax breaks and the Bush tax cuts), vote all extremist neocon teabag repuglicans and extreme libs out of congress (we need more moderates to get things done), redo all defense contracts (they have been ripping the government off for years), Every congressman who gets kickbacks from corporations and defense contractors should be voted out of office, every congressman who is against Americans getting medicare, social security, unemployment benefits and healthcare (ACA its law) should be voted out of office!

    December 16, 2013 08:01 am at 8:01 am |