It is a tremendous victory for free market activists that, for the first time in history, the debate over raising the debt limit became a debate over cutting spending. For that, we should be heartened that our efforts are truly making a difference. But we must continue to fight, because this deal is simply inadequate to the size of the fiscal challenge our country faces.
Ratings agencies have consistently called for at least $4 trillion in cuts to avoid a downgrade -- and rated the Boehner and Reid bills on which the final deal was based as inadequate for putting the country on a sound fiscal footing. This deal includes only $0.9 trillion in guaranteed cuts and in a best case scenario envisions an additional $1.5 trillion in cuts. And these are Washington cuts, not real cuts; they merely reduce the expected rate of increase in spending, while the federal government will continue to grow.