No government shutdown or default next year, but austerity will continue
In other news, the Senate approved by a vote of 67 to 33 the budget deal, avoiding another government shutdown and debt ceiling showdown early next year. The house had voted before. There has been some commentary in the web when the House voted on how this agreement is good, since it avoids even worse austerity, but in all fairness the changes are minor and the unnecessarily restrictive fiscal policy will continue in place. Graph below shows real government consumption and investment spending.