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Response to nineteen50 (Reply #26)

Tue Dec 18, 2012, 08:25 PM

31. Less likely if deal puts away debt ceiling

for at least 2 years. Then the GOP has no leverage to get more cuts. And if the economy recovers the deficit will shrink, and then they will have no justification for it. If they fail to reach a deal now the economy will get worse, the deficit will get worse, and the GOP will have more leverage and more justification for more cuts.

The devil is in the details regarding CPI. In 2011, Jack Lew told the president it could be formulated in such a way that actually raises benefits a little for the poorest SS recipients. Let's hope the final deal ends up like that.

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