Congressional Compromise

Absent any fanfare, finagling or fireworks, Congress finally raised the debt ceiling, reauthorized the Export-Import Bank and reached a budget deal that raises spending by $50 billion in FY16 and $30 billion in FY17. This is unambiguously good. It also means that federal government spending will be slightly stimulative, boosting GDP in FY16 and FY17 by 0.25% and 0.15% respectively and adding an average of 240,000 jobs/year.