Money and Politics with Larry Kudlow: Solve the Debt-Limit Problem and Promote Growth? It’s Possible – CNBC

Money and Politics with Larry Kudlow: Solve the Debt-Limit Problem and Promote Growth? It’s Possible – CNBC.

As uncertain and unruly and disheveled as the debt-ceiling debate may be, there are still good grounds to reach a deal.

It could help the economy. It could keep the policy ball moving in the direction of smaller government.

It could add a key business tax incentive for economic growth. And it could even stabilize the dollar.

There really are two problems here: First is raising the debt ceiling to avoid default. (That’s a real good idea.)

Second is stuffing enough spending and deficit reduction into the deal to accommodate the newly militant demands of S&P and Moody’s, who want roughly $4 trillion in cuts over ten years in order to keep our AAA rating.

But here’s the tricky part for me: What kind of numbers are we talking about in the event of a last-minute deal?

So many of these numbers are phony, and they often reflect baseline fiddling and out-year budget cuts that never materialize…

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