The debt ceiling deal hammered out by President Barack Obama and congressional leaders and passed in the House on Monday afternoon makes deep, painful, and lasting cuts throughout the federal government’s budget. What’s on the chopping block? The numbers tell the tale.
… What’s not in the deal could hurt too. In particular, EPI’s analysis estimates that not extending federal unemployment benefits and the payroll tax cut, combined with the deal’s array of cuts, will result in 1.8 million fewer jobs and a loss of $241 billion in economic output in 2012. “It’s going to suck a good deal of demand out of the economy,” EPI’s Pollack says. “It’s going to be devastating.”