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O.K., a temporary government shutdown — which became almost inevitable
after Sunday’s House vote to provide government funding only on
unacceptable conditions — wouldn’t be the end of the world. But a U.S.
government default, which will happen unless Congress raises the debt
ceiling soon, might cause financial catastrophe. Unfortunately, many
Republicans either don’t understand this or don’t care.
Let’s talk first about the economics. (If Republicans shut down the government over the Debt Ceiling)
First of all, hitting the ceiling would force a huge, immediate spending cut, almost surely pushing America back into recession. Beyond that, failure to raise the ceiling would mean missed payments on existing U.S. government debt. And that might have terrifying consequences.
On the economics: Republican radicals generally reject the scientific consensus on climate change; many of them reject the theory of evolution, too. So why expect them to believe expert warnings about the dangers of default? Sure enough, they don’t: the G.O.P. caucus contains a significant number of “default deniers,” who simply dismiss warnings about the dangers of failing to honor our debts.
First of all, hitting the ceiling would force a huge, immediate spending cut, almost surely pushing America back into recession. Beyond that, failure to raise the ceiling would mean missed payments on existing U.S. government debt. And that might have terrifying consequences.
On the economics: Republican radicals generally reject the scientific consensus on climate change; many of them reject the theory of evolution, too. So why expect them to believe expert warnings about the dangers of default? Sure enough, they don’t: the G.O.P. caucus contains a significant number of “default deniers,” who simply dismiss warnings about the dangers of failing to honor our debts.
http://www.nytimes.com/2013/09/30/opinion/krugman-rebels-without-a-clue.html?ref=opinion&_r=1&
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