Brandon Parsons Analyzes New Debt Ceiling Agreement in Principle on ABC 7

After weeks of negotiation and just days before potential default, House Republicans reached a debt ceiling agreement in principle with the White House on Saturday.

Pepperdine Graziadio Business School economics practitioner Brandon Parsons weighed in on what the new agreement would mean for the U.S. economy.

“The big condition of this agreement is we have flat spending,” said Parsons. “Non-defense spending is going to be flat, and then next year there is only a one percent increase in spending.”

The welcome breakthrough comes just days before June 5 -- the date Treasury Secretary Janet Yellen warned the U.S. could run out of cash to pay all of its bills on time.

Time is of the essence to push the deal through before potential default. McCarthy has pledged to give House members 72 hours to review the legislation before a vote. And in the Senate, it would only take one lawmaker to possibly delay approval for up to a week.

“The agreement probably should have been done months ago,” said Parsons. “It makes financial markets rocky and there are a lot of negative implications of waiting until the last minute.”

See the full story on ABC 7 Eyewitness News.