Study: 2 years of federal budget battles cost taxpayers $700 bil

Study: 2 years of federal budget battles cost taxpayers $700 billion

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Source: MGN Online Source: MGN Online
BIRMINGHAM, AL (WBRC) -

Congress has approved a deal to end the government shutdown and raise U.S. debt limit Wednesday night.

The bill would reopen the government through Jan. 15 and permit the U..S. Treasury to borrow normally through Feb. 7. While we wait for President Barack Obama to sign the bill, a lot of people are talking about the impact of this budget battle.

Every day Congress battled over the budget, it cost the U.S. more money. According to a new study by Macroeconomic Advisors, all the budget fights, the debt ceiling standoffs and discretionary spending in the past two years have cost the American people $700 billion.

"This is creating a tremendous amount of uncertainty," said financial advisor Stewart Welch talking about the impact this is having on the markets.

Welch says the bill didn't accomplish much.

"If you think of all of the chaos that this has caused and the end result is a decision to kick it down the road for a few months. This doesn't make sense. This is not the way you do business certainly. Certainly not the way you run your government," said Welch.

The United States has received a warning from one of the credit agencies, threatening to downgrade the government's credit rating. And Welch says if the U.S. doesn't get it together and figure out a permanent solution on our $16 trillion debt, we could have even more trouble on the horizon.

"You have China and Japan who own $2.4 trillion of our $16 trillion debt, that's 15-16 percent and they are beginning to get really nervous about the way were running our country. And those people, those two countries, are somebody you better listen to because they have the ability to impact what's happening in our economy," said Welch.

Welch says we could be right back where we are in January, but the next go around will be more politically driven since it will be bumping up against the 2014 elections.

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