The reboot cast of The Three Stooges, with Ted Cruz a very convincing Moe |
Today, the federal government does the unthinkably self-destructive act and refuses to raise the debt ceiling. Don't for a moment fool yourself that this is a repeat of 1996. The House of Representatives this time is far more hardline than it was in the previous shutdown. The Representatives are far less responsive to their constituents. Many of them are millionaires themselves in the pockets of billionaires. Many have jobs lined up with companies for which they've done favors. This time there's going to be no retraction.
The economic dimension of this crisis is also worse. In the '90s it was just Congress refusing to fund the government, and only did it short term. Now Congress is refusing to pay debts for money that's already spent, for programs it already approved. The government is going deadbeat. Economically, I'm afraid this will be an unmitigated disaster. If it goes on for months, it might make the troubles 2008-2009 look like average years.