Friday, October 18, 2013

Necessary brinksmanship

Right now the US is in an unsustainable position. We are increasing our debt faster than we are growing the economy. The inevitable result is default and global economic disaster. There is currently no combination of tax increases and spending cuts that the US public will accept that will solve this situation. The american public's Overton window is too narrow. This is no different than Greece or any of the other PIIGS countries. The major difference is that the Tea Party has put into Congress a number of figures willing to engage in brinksmanship and repeated efforts to push partial solutions, with the effect of each round moving the public's Overton window a little further in the necessary direction to make the fiscal changes politically viable. A little trip down memory lane regarding long term budget problems and the political strategy of partial solutions with the Democrats using the partial solution strategy and the GOP pushing a full blown solution (that eventually lost electorally in 2012).