Ideology Over Consequences
Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement, default would have actually made this more difficult to achieve, as it would have resulted in increased government spending.
The reasons are clear and the thinking straightforward. America currently pays its creditors about $250 billion yearly on the $14 trillion of short and long term government debt. A default would have caused a downgrade in the U.S. credit rating which is now at the strongest level and considered virtually risk-free AAA, to AA or possibly even lower. The interest rates that the government would have had to pay to fund its debt would have risen as a result of this, an increase in the yearly costs to the federal government of at least $100 billion.
In addition, borrowing costs for state and municipal governments would have gone up with a downgrade in US debt, delaying or cutting various projects, reducing services and forcing these entities to lay off more workers. Private companies would have also had to pay more to borrow money, driving them to halt expansion and funding of new programs, with dismissal of employees and freezing of hiring. Consumers would have also been faced with higher interest rates on mortgages, credit card debt and consumer loans, reducing their spending and impacting the economy. This would all have meant an increase in unemployment, a drop in the GDP and a return to recession. There would also have been less taxes collected so government revenue would have dropped, further increasing budget deficits and the national debt. And with more people unemployed, government would have had to pay out more in benefits.
Thus because of the rightwing unwillingness to compromise on the debt ceiling, government spending would have risen significantly, contrary to their expressed objectives. And the overall economy would have been damaged even further.
At this point, it is possible that a lowering of the nation’s credit rating may occur even without a default, because of the problems this time in raising the debt ceiling and the uncertainty this has engendered about the future. Good going guys.
Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement, default would have actually made this more difficult to achieve, as it would have resulted in increased government spending.
The reasons are clear and the thinking straightforward. America currently pays its creditors about $250 billion yearly on the $14 trillion of short and long term government debt. A default would have caused a downgrade in the U.S. credit rating which is now at the strongest level and considered virtually risk-free AAA, to AA or possibly even lower. The interest rates that the government would have had to pay to fund its debt would have risen as a result of this, an increase in the yearly costs to the federal government of at least $100 billion.
In addition, borrowing costs for state and municipal governments would have gone up with a downgrade in US debt, delaying or cutting various projects, reducing services and forcing these entities to lay off more workers. Private companies would have also had to pay more to borrow money, driving them to halt expansion and funding of new programs, with dismissal of employees and freezing of hiring. Consumers would have also been faced with higher interest rates on mortgages, credit card debt and consumer loans, reducing their spending and impacting the economy. This would all have meant an increase in unemployment, a drop in the GDP and a return to recession. There would also have been less taxes collected so government revenue would have dropped, further increasing budget deficits and the national debt. And with more people unemployed, government would have had to pay out more in benefits.
Thus because of the rightwing unwillingness to compromise on the debt ceiling, government spending would have risen significantly, contrary to their expressed objectives. And the overall economy would have been damaged even further.
At this point, it is possible that a lowering of the nation’s credit rating may occur even without a default, because of the problems this time in raising the debt ceiling and the uncertainty this has engendered about the future. Good going guys.
Ideology Over Consequences Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement,...
Posted by: buy lasix online | 08/23/2011 at 01:13 AM
Ideology Over Consequences Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement,...
Posted by: can i buy flagyl online | 08/23/2011 at 01:29 AM
Ideology Over Consequences Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement,...
Posted by: buy flagyl online | 08/23/2011 at 01:44 AM
Ideology Over Consequences Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement,...
Posted by: buy prednisone online | 08/23/2011 at 01:58 AM
Ideology Over Consequences Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement,...
Posted by: buy synthroid | 08/23/2011 at 02:12 AM
Ideology Over Consequences Legislation cannot be developed and enacted rationally when some of the people’s representatives don’t understand or don’t care about the consequences of their actions. This dilemma was evident in the recent drawn-out contentious attempt by Congress to raise the debt ceiling. The right-wing Republicans willing to let America default on its debt obligations unless they got their way, refused to heed the warnings of mainstream economists, Wall Street and the bond rating agencies about how default would impact the nation. If reducing the budget deficits and national debt were the primary objectives of the Tea Party movement,...
Posted by: can i buy prednisone online | 08/23/2011 at 02:27 AM