David Wessel, senior fellow and director of the new Hutchins Center on Fiscal and Monetary Policy at Brookings and economics editor for the Wall Street Journal, discussed the new budget deal in Congress on WSJ Live. After noting that the opportunity still exists for another showdown on the debt ceiling, Wessel said the "odds on that are limited," and then spoke to the parameters of the deal:
One the really interesting lasting lessons, though, was this was a pretty small deal. And they had a great deal of difficulty coming up with are known as "pay fors," things that would reduce the deficit to offset this increase in domestic spending that they agreed to. And the fact that they had so much difficulty coming up with these little items ... is just a reminder that getting to the big deal someday that puts the fiscal trajectory on a sustainable course is not going to be easy.
Watch the full discussion below:
Wessel and the panel also addressed Social Security reforms and political implications for Republicans in 2014.
Learn more about the new center here.