Photo: PRI’s Studio 360 via Flickr
One of the arguments made for doing something about the debt now is that if we don’t show some seriousness about fiscal consolidation, the market will lose confidence in us.Under this logic, shouldn’t the market be losing confidence NOW?
After all, this budget negotiation is totally pathetic. We can’t even agree on $33 billion worth of cuts, and even at this level, the debate is getting infused with stuff about NPR and EPA funding and abortion. Really, it’s totally silly.
So if we were really on fragile ground with markets, then you’d think this would be one of the last straws, killing our access to the market. That’s not happening at all however.