Congress and the president have a debt deal. Its not a perfect plan, but its better than nothing, better than a default, better than a constitutional crisis. Nobody is completely satisfied, and each sides will continue to blame the other when the U.S. economy does not stage an immediate and miraculous recovery. On Monday, the market closed lower.
Millions of Americans are left wondering what took their leaders so long. Why couldnt the same result have been accomplished weeks ago? Did the nation really have to edge so close to insolvency, even stick a toe over the Aug. 2 line?
The July report on the mountain states economy, released by the Creighton Universitys Economic Forecasting Group, says this about the regions outlook:
Looking ahead six months, economic optimism, captured by the confidence index, fell to 50.1 from 52.1 in June.
Elevated energy prices, an unhealthy housing market and uncertainty surrounding the U.S. debt situation remain important factors restraining business confidence, said Ernest Goss, Ph.D., who directs the group and who is the Jack A. MacAllister Chair in Regional Economics.
A figure of 50 is grown-neutral. In other words, 50.1 indicates a stalled economy, and one reason for stalling was to learn what form the debt agreement would take. Its hard to see how that delay was good for the country.
Threatening to delay senior citizens Social Security payments was unconscionable. Social Security reform is essential, and Congress ought to get to it, but leaving the elderly poor to fear they cant pay the next months rent, buy food or medicine or pay their utility bills was not civil behavior.
Nor was letting federal employees worry about being laid off. If constituents want cuts, make those cuts in a manner that allows for orderly closures, not just by not bothering to devise a plan. Dont pretend that shrinking federal agencies wont make any difference to the lives of the Americans who provide the services and the Americans who consume them. Dont pretend, either that the economy is able to absorb a new wave of unemployed workers.
Yet another insult was dealt by telling Americans that default would be a technicality. A whole lot of people lost their homes because of just such a technicality, partly because the federal government couldnt figure out how to help solve a problem it had helped to create. Holding out till the last moment to hold tax rates down is all well and good, except when it drives up interest rates for John and Jane Doe.
None of that had to happen, because no one in a position to influence the eventual debt-ceiling legislation has gained a different understanding of the problem, a stability that is difficult to credit given the panic this topic has caused. In the end, everyone gave up what they had to and held onto what they could. What did they say to all the constituents who contacted them to say, Get it done!?
Small-government (or no-government) advocates will be tempted to say, See? Congress and the president wasted the entire summer on this issue and nothing bad happened. That means government isnt essential.
Well, no. That means Congress and the president arent paying attention to the people. That wasted time could have been spent on legislation that would have moved the nation forward. It wasnt. No wonder Americans are disgusted with politics.
