A thin wallet will limit Barack Obama's second term agenda, regardless of who wins the fiscal-cliff showdown, according to the Washington Post.
That's because various constraints on spending were already settled during the debt-ceiling crisis in 2011, according to the Post. Lawmakers will have to make cuts of ~$1 trillion over the next decade.
As for the current fiscal cliff crisis, White House aides are saying any new revenue from taxes will go towards deficit reduction, axing chances for new programs and ambitious expansion.
Spending will likely focus on smaller initiatives like repairs to infrastructure or small grants for blighted neighborhoods.
The lack of revenue is no small source of Democratic concern: scheduled cuts and restrictions on spending will likely cut into in programs viewed as crucial, ranging from college aid to programs for the poor.
And the cutbacks may get even bigger: Democrats are worried President Obama will still give away too much in revenue and entitlement spending in fiscal cliff negotiations.
Via the Washington Post