Last week Republicans and Democrats were at an impasse over how much and what to cut from the federal budget while a potential government shutdown loomed. At the last minute Friday night they reached a deal to cut $38.5 billion in spending. So what will this new budget mean for the economy? This hour we get economist DEAN BAKER’s take on the new budget, the federal deficit, and the general state of the economy. Baker is the co-director of the Center for Economic and Policy Research. We’ll also talk to him about the federal debt ceiling and Congressman Paul Ryan’s budget plan for 2012, “The Path to Prosperity,” which proposes deep cuts to Medicare and Medicaid in order to control the nation’s deficit.