The Fine Print on the Debt Deal

By NATE SILVER
NYT

If Democrats read the fine print on the debt deal struck by President Obama and Congressional leaders, they’ll find that it’s a little better than it appears at first glance.

That’s not to say that the deal is a good one for them. It concedes a lot to Republicans, and Democrats may be wondering why any of this was necessary in the first place. But the good news, relatively speaking, has to do with the timing and structure of the spending cuts contained in the deal.

First, the timing: the cuts are heavily back-loaded, so the deal is unlikely to have much direct effect on the economy in 2012.

The spending cuts will proceed in two stages. There is an initial round of about $1 trillion in cuts, which will be locked in place when (and if) the deal is signed by the president. Then there is an additional $1.5 trillion in cuts, which will go into effect if Congress is unable to agree to the recommendations of a bipartisan commission (or “Super Congress”) by the end of the year.

(More here.)