‘… debt-ceiling standoff is an act of economic sabotage’

With congressional Republicans promising to create yet another standoff on the debt ceiling, Betsey Stevenson and Justin Wolfers, professors at the highly regarded Wharton School of Business, write in Bloomberg about the economic consequences of the first crisis last summer.

They note, for example:

“Growth in nonfarm payrolls decelerated to an average 88,000 a month during the three months of the debt-ceiling impasse, compared with an average of 176,000 in the first five months of 2011. Payroll growth subsequently recovered and has averaged 187,000 jobs a month since. Despite the rebound in job growth, employment is likely still below where it would otherwise have been.”

And consumer confidence — critical in this recovery — took an even greater and more spectacular tumble, as these numbers from Gallup demonstrate:

confidence

They conclude:

“All told, the data tell us that a debt-ceiling standoff is an act of economic sabotage. The only way to avoid this conclusion is to argue that consumers and employers were reacting to some other economic factors. But the debt ceiling was the dominant economic story at the time. No other news fits the data as well. Although the European debt crisis was a rising concern throughout 2011, the real trouble in Europe arose in the period when consumer confidence and employment were recovering.

The next debt-ceiling battle could be worse, because the stakes are even higher. In addition to the threat of default, the U.S. is facing the so-called fiscal cliff: a raft of spending cuts and tax increases that will happen at the end of this year unless Congress acts to postpone them. Another stalemate would almost certainly plunge the economy into a deep recession.”

It’s also important to note that the standoff created an historic downgrade of the USA’s credit worthiness. And for what? Congressional Republicans got a budget-cutting agreement out of the standoff, but it’s a deal that they began to repudiate almost immediately after it was announced and that they are now actively seeking to undermine.

Maybe it’s just me, but I don’t trust the wisdom or patriotism of people who willing to risk the destruction of the economy to make a political point.

– Jay Bookman

783 comments Add your comment

stands for decibels

May 29th, 2012
8:41 pm

If you have the Documentary Channel available in your home

I don’t. However, I see that Netflix has the DVD available for those who are interested. (Alas, it’s not available for online streaming.)

stands for decibels

May 29th, 2012
8:46 pm

Trump just stated on CNN that many people put birth announcements in papers all the time so they can claim that they were born in the US. Mind you he didn’t have any examples…..

Many people grow their hair long on the sides and comb it over so the can claim they have hair growing on top. Mind you I don’t have any examples…

G Mare 71(PLEASE VOTE NO ON TSPLOST)

May 29th, 2012
8:52 pm

Go, Stands, or in blog speak, lmao.

They BOTH suck

May 29th, 2012
8:54 pm

Scout

“You mean “our troops” will hunt you down ………… correct ?”

Did you speak out against Bush when he said “we got him”, in reference to the capture of Sadam?

I know like my dad, you served in Vietnam and I do appreciate your service, but what is good for one should be good for all

Don't Forget

May 29th, 2012
8:57 pm

Recon 0311 2533

May 29th, 2012
8:58 pm

Looks like the military doesn’t much care for Obuma’s chest thumping on the OBL kill nor on the DADT repeal.

http://www.usnews.com/news/blogs/ballot-2012/2012/05/29/poll-veterans-overwhelmingly-support-romney-over-obama

They BOTH suck

May 29th, 2012
9:01 pm

Recon

That is the exact same numbers that veterans voted for McCain and we both now the outcome of the election.

Going to need a significant push with moderates and independents. That could push the election to Romney.

If any given demographic from last time stays the same, probably will be the same result, but I do see a much, much closer election

They BOTH suck

May 29th, 2012
9:01 pm

“we both know…………”

Recon 0311 2533

May 29th, 2012
9:01 pm

It’s amazing that the hard-left morons really believe Obuma is a shoe in for a second term.

godless heathen

May 29th, 2012
9:02 pm

Thanks, Don’t Forget. A great one, indeed.
RIP Doc

They BOTH suck

May 29th, 2012
9:06 pm

He isn’t a shoe in, but if anyone thinks that current polling that was basically the same results as the last elections outcome for that demographic is a game changer…….. I really do not know what to say

godless heathen

May 29th, 2012
9:06 pm

Bro: Got a programming note for some here. If you have the Documentary Channel available in your home, there’s a documentary coming on at 8pm that might be of interest to the blog here…

What Black Men Think. Since they all think alike…………

0311/8541/5811/1811/1801

May 29th, 2012
9:08 pm

they BOTH suck:

“You mean “our troops” will hunt you down ………… correct ?”

Did you speak out against Bush when he said “we got him”, in reference to the capture of Sadam?”

Yes ……….. and I often blasted Rumsfield for that and many other issues.

1) I have tried my best to be consistent in that regard.

2) I cringed when President Bush did that carrier landing thingie.

Recon 0311 2533

May 29th, 2012
9:09 pm

They Both Suck,

I’ve been consistent in my prediction that this will be a very close election. We’re a deeply divided country. At some point that divide may become a real factor and the thought it concerns me but I won’t go there now, for now the left seems to believe Obama will cake walk into office. I don’t think it will turn out that way.

They BOTH suck

May 29th, 2012
9:10 pm

Scout

Thanks for the reply. I would have to agree and say that the troops are the ones who do the down and dirty work and deserve to be credited for it

godless heathen

May 29th, 2012
9:14 pm

I don’t care who you are, if you want to make a statement about the stupidity of others, try to spell all the words correctly.

They BOTH suck

May 29th, 2012
9:14 pm

Recon

I do not see any sort of cake walk either way. In 2008, the polls were close like they are now, however Romney is not McCain. Not saying that is good or bad, but he is not McCain

Significant gains among moderates and independents could very well send Obama packing. Haven’t seen anything lately, but what I have read is that Obama’s polling in that category is slipping.

Of course the main issue being the economy, but Romney’s VP pick and the debates will also come into play

JamVet

May 29th, 2012
9:15 pm

Las Vegas is ready when you Republirubes are…

Obama -175
Whichever Republican +145

Recon 0311 2533

May 29th, 2012
9:15 pm

Rubio would be a good pick but I think Romney will get Florida regardless. Portman could deliver Ohio and should that happen it would truly be game over.

They BOTH suck

May 29th, 2012
9:17 pm

Recon

When I said close, I mean close during this same time frame of the election

Recon 0311 2533

May 29th, 2012
9:19 pm

TBS, copied your last.

j$

May 29th, 2012
9:20 pm

The only way Obama will play is by slander.

They know that’s the only way he can win given his promises/track record.

America is growing tired and frustrated with the rhetoric:

http://www.youtube.com/watch?v=qNOVLhsX8MI

Recon 0311 2533

May 29th, 2012
9:22 pm

I’m out…y’all be good.

G Mare 71(PLEASE VOTE NO ON TSPLOST)

May 29th, 2012
9:22 pm

Okay, TOTALLY off topic: Josef, when you told me about the fruitcake lady, I started to ask you if you were calling me a fruitcake & remembered one of the many classic scenes from MASH. Hawkeye & Trapper are escorting the quite inebriated Col. Potter. He falls; they pick him up; he says, “Did I fall down?” they reply, ” No, Sir.” and Potter says, ” I didn’t think so.” Ah, one of the best tv shows EVER. So now we can go back to increasingly divisive, vitriolic, often hate filled, rhetoric which masquerades as politics today. Yes, I am old enough to remember when it was “not always thus.”

Don't Forget

May 29th, 2012
9:23 pm

Jm

May 29th, 2012
9:25 pm

I like TBS

Decent centrist

j$

May 29th, 2012
9:26 pm

godless heathen

May 29th, 2012
9:29 pm

Las Vegas is ready when you Republirubes are

If the incumbent weren’t the odds on favorite in the betting world I would be really concerned. The incumbent has many advantages and that is reflected in the Vegas odds.

Jm

May 29th, 2012
9:29 pm

Mash

Almost everyone loves mash…….

stands for decibels

May 29th, 2012
9:30 pm

So while you sit back and wonder why
I got this f#cking thorn in my side
Oh my God, it’s a mirage
I’m tellin’ y’all, it’s a sabotage

http://www.youtube.com/watch?v=z5rRZdiu1UE

j$

May 29th, 2012
9:32 pm

Jm

May 29th, 2012
9:32 pm

Obama: bob Dylan is a hero

Chris Hayes: servicemen and women who lost their lives protecting and serving their country: not heroes

Liberals are really sick

Don't Forget

May 29th, 2012
9:34 pm

Thanks, j$, life gets teejus don’t it?

http://www.youtube.com/watch?v=AMQ7u_bD87k

JamVet

May 29th, 2012
9:36 pm

heathen, no matter the reasons, those boys in Vegas are not into losing money.

And when you look at this map, it is clear why they are not persuaded by the right wing’s RINO…

http://www.realclearpolitics.com/epolls/2012/president/2012_elections_electoral_college_map.html

Brosephus™ - Fact Assassin

May 29th, 2012
9:39 pm

dB

From what I’ve seen thus far, it’s worth viewing. When the facts are laid out for all to see, there would be many a myth passed around here that would get blown to bits. It would probably blow the mind of many of those who “think” they know the Black community to hear so many who are critical of the so called “Black Leaders”. Doesn’t lend much credit to the idea that they are leading anything, as I often try to explain here. I’d suggest it be viewed by anybody with vision. I’ll probably buy a copy for myself.

Redneck Convert (R--and proud of it)

May 29th, 2012
9:44 pm

heathen, no matter the reasons, those boys in Vegas are not into losing money.

Well, I already started working on what I’ll say after the election. And that is, we needed a real Conservative to run against the Muslim Usurper. One that will revoke the Constitution if need be in order to go after the libruls and lock a bunch of these Traders up. What good is a Constitution if we’re going to lose the election? The only thing I haven’t figured out is what I’ll say when No. 1 Foxy Lady gets on here the day after the election and tells us to . . . well, you know.

Have a good night everybody.

Jm

May 29th, 2012
9:48 pm

Jamvet

Obama starts ahead

But it’s close

Obama requires a lot of “ifs” to win, and so does Romney

It’s a real race

stands for decibels

May 29th, 2012
9:49 pm

Don't Forget

May 29th, 2012
9:52 pm

Bro, looks like it’s not being shown in Tennessee which is a shame. Saw a preview on youtube and I bet it’s pretty enlightening. Stereotypes are rarely accurate of anybody. Hopefully it’ll be more available in the coming months.

Brosephus™ - Fact Assassin

May 29th, 2012
9:56 pm

Don’t Forget

Seems like they have a link to stream the full documentary here…

http://documentarychannel.com/movie.php?currID=10403&t=What-Black-Men-Think

Click the “Watch it now” link, and the full vid comes up. It’s close to 90 mins long, but well worth it.

Thulsa Doom

May 29th, 2012
9:56 pm

“If you attack my country, as Al Qaida did, then we will hunt you down and kill you and ensure that you do not get another chance to do it again.”- Jay

Doomy do loves himself some a them thar tough talkin liberals.

JamVet

May 29th, 2012
9:57 pm

But it’s close

No, it’s not.

Flip has to take eight or nine of the ten toss up states to win.

And that will never happen.

Start working on your concession speeches…

Jm

May 29th, 2012
9:58 pm

Sfd

Too much to ask for you to stop dodging the facts and stake your ground out? Yep

Thulsa Doom

May 29th, 2012
9:59 pm

G mare and JamVet,

Yep. Doomy is originally from Buffalo.

G
0

B
I
L
L
S
!

And ya’ll smartasses bout the 4 straight super bowl losses just simmer down now. Ya hear?

Jm

May 29th, 2012
10:00 pm

Jamvet

Obama has to hold a lot of states that don’t historically trend D

If he does so, he deserves to win

I have a lot of doubts that he will hold them

Jm

May 29th, 2012
10:01 pm

All Romney has to do is win Iowa plus 3 states that trend republican historically

Not a stretch at all

Thulsa Doom

May 29th, 2012
10:02 pm

If Wisconsin is any indication Romney sweeps all 10 of them tossup states. 6 or 9 months ago ya’ll were talking recall in Wisconsin and Ds taking back over Wisc. Not only did it not happen but it looks like the Rs are strengthening in Wisconsin.

JamVet

May 29th, 2012
10:06 pm

Like I said, the bookies in Vegas are ready when you Romney fans are!

Easy money! Something like a 40% return in no time flat.

n

May 29th, 2012
10:07 pm

Just curious….
Who is No. 1 Foxy Lady??

bman

May 29th, 2012
10:09 pm

the Vegas bookies were all-in for the Patriots in the Super Bowl, too. I remember the Tyson/Holfield 25-1 odds. I missed the boat on that!

j$

May 29th, 2012
10:09 pm

Anyone who thinks this is a cake walk for Obama is going to eat my shorts.

Put your money where your mouth is.

j$

May 29th, 2012
10:10 pm

Yep, that’s what I thought.

nitenite

Thulsa Doom

May 29th, 2012
10:11 pm

Me and the bookies are pretty even during the regular season in college football but even then I still hold a slight advantage. But when bowl season comes I wear they asses out.

JamVet

May 29th, 2012
10:16 pm

bman, yep, you’re right.

Those guys are wrong SO much more than they are right.

That’s why there are all of those run down hovels up and down the strip!

Jay

May 29th, 2012
10:21 pm

As they used to say in Vegas when I lived there, and no doubt still say today, “it’s the only town in the whole country built by losers.”

Jay

May 29th, 2012
10:22 pm

G’night all. In the words of the immortal Ms. O’Hara, “tomorrow is another day.”

bman

May 29th, 2012
10:24 pm

Jam .. .. I would place a wager on either..

bman

May 29th, 2012
10:25 pm

“wouldn’t”

Thulsa Doom

May 29th, 2012
10:26 pm

Play long enough in a casino and you will lose. Sports betting if you follow the masses you will lose. Don’t do your research and you will lose. Money management and money discipline is also key but the bottom line is that like anything else in life if you invest time and a little money in research you can win in sports betting. But I sure as hell wouldn’t depend on it for making a living.

j$

May 29th, 2012
10:26 pm

“it’s the only town in the whole country built by losers.”

Ummm, no.

I guess Pittsburgh was built by losers also.

Thulsa Doom

May 29th, 2012
10:27 pm

Not sure I would wager on either of em either. Better to put my money on Lord Saban- usually a good return on investment.

j$

May 29th, 2012
10:40 pm

Alabama final ranking for 12/13 – (15~19)

mark it.

Tough year for the Tide.

Can’t win ‘em all every year…

Jimmy62

May 29th, 2012
10:47 pm

I think that making a law about the debt ceiling, then continuing to ignore, is also tantamount to deliberately hurting the economy. If Democrats don’t want to follow laws, then why don’t they just go to jail. That’s where criminals are supposed to go. For that matter, aren’t they supposed to pass a budget every year? Been a while since we had one. Kinda messed up to run a country this size and refuse to even create a budget, much less follow one. But that’s lefty logic for ya.

TaxPayer

May 29th, 2012
10:55 pm

How much does the Republican budget proposal reduce the debt.

j$

May 29th, 2012
10:56 pm

Gotta love the Bills.

Jim Kelly to Thurmond Thomas – a great duo!

JKL2

May 29th, 2012
11:25 pm

Let’s hear what this great American has to say about the President when it comes to national debt:

http://www.youtube.com/watch?v=DyLmru6no4U

Don't Forget

May 29th, 2012
11:36 pm

Brocephus, that was a pretty good program. Lots of observations about not only stereotypes but also power structures, money etc. I’ll repost your link in case anyone else wants to watch that missed your post.

http://documentarychannel.com/movie.php?currID=10403&t=What-Black-Men-Think

I suppose the biggest take home really goes way beyond the scope of the program. The fact that politicians will NEVER solve the problems that got them elected in the first place. That applies to the economy, the deficit, drug abuse, racial disparity etc.

j$

May 29th, 2012
11:41 pm

wanlong, you’ve come to the right place.

ld

May 30th, 2012
12:29 am

The political agenda of both parties is to help only their constituants.

The difference between the parties is that:

The GOP most wants to help those that need help the least and least wants to help those that need help the most. The deficit “starves” government and helps them achieve this goal.

The Democrats want to help the so-called 99% — the economic working class and “least among us”.

The “values voters” likely will again vote contrary to their own best economic interest because, second to he[[, they fear true individual liberty most–it interferes with their efforts to tell others how to live.

ODD OWL

May 30th, 2012
2:32 am

MEMO TO ALL NON RICH AMERICANS…. Wake up and smell the black coffee… Mitt Romney and the extreme right wing, neo-con Republicans are hell bent on destroying the middle class way of life… The behavior of non rich Americans who vote Republican is analogous with the behavior of the German people when Adolf Hitler and the Brown shirts were claiming to have all the answers to all the problems.. No one took them serious… But after Hitler replaced the brown shirts with the black uniformed, goose stepping Schutzstoffels, the German people begin to take notice and realized that they were in danger… But it was already to late… People who don’t learn from their mistakes are bound to repeat them, over and over and over… The shyster Republican politicians have been running the same political scam on non rich Republican voters for the last 30 years. Mittens Romney is a blind man talking to a room full of deaf people… Wake up and smell the black coffee before its too late…

Normal Free...Pro Human Rights Thug...And liking it!

May 30th, 2012
6:21 am

Bud Wiser

May 30th, 2012
6:52 am

The real ‘economic sabotage’ here Bookman is the democrat party’s complete and total lack of thought, preparation, or even common sense when it comes to spending other people’s (our) money.

When these idiots come up with a budget as required by law, and actually get one passed, then maybe you can slide off your pathetic party ideology and say something that make sense, instead of just regurgitating the crap they feed to media stooges like you.

But one term Obama will not; he doesn’t have to, he’s outta here in November.

What a legacy he will leave indeed; the first half black president that never came up with an operating budget for govt during his one and only term.

Granny Godzilla - Union Thugette

May 30th, 2012
7:13 am

Budwiser

You have such a talent for wordsmithing pernicious piffle!

I suppose everybody has got to have something to be proud of.

JamVet

May 30th, 2012
7:24 am

So Bud,

This is the guy that you’re pinning you feeble hopes on? (No, not the boob on the right, the one on the left!)

http://www.ajc.com/multimedia/dynamic/01392/WX108_1392081l.jpg

JamVet

May 30th, 2012
7:33 am

There are many reasons that I would never vote for Mitt.

But laying a big Trump and then tracking it all over the place? That has got to be in the top 10…

http://blogs.ajc.com/mike-luckovich/files/2012/05/mike0530121.jpg

Gm

May 30th, 2012
8:26 am

Amazing when gas prices where high, the right wing nut jobs at fox were blaming Obama and their low IQ viewers were buying in to this, now when gas prices have fallen you dont hear a word.

President Obama gets the blame when prices where going thru the roof but no credit when they have fallen, this shows what a bunch of hypocrites we have in this country, any middle class American no matter what color who vote for spineless Mitt have no clue what middle class America is about.

Adam

May 30th, 2012
9:13 am

jm: Chris Hayes: servicemen and women who lost their lives protecting and serving their country: not heroes

Again I refer you here: http://www.theatlantic.com/politics/archive/2012/05/in-defense-of-chris-hayes/257744/

Don’t be too chicken to read the whole thing now ;)

Adam

May 30th, 2012
9:19 am

Thulsa: Its funny but you keep saying its unfair to ask about their transcripts yet you won’t say why its unfair.

I didn’t say why because prior to now, you never posed it as a question. You just asserted that I must be thinking it’s fair in one case and not in another, again without asking. Just assuming.

So try asking next time, k?

Its mind numbing that when applying for scholarships or for jobs that a scholarship committee or a prospective employer may want to know what kind of grades you made but yet here we have Adam saying that grades and transcripts have no place in determining qualifications for the most important job in the world.

What’s the last job you had to put your schooling on your resume for? You only have to do that when you don’t have any other experience to prove you can do whatever job we’re talking about. And I know it’s popular to claim that Obama only had “Community Organizer” while ignoring all his other work prior to running for President, but that part isn’t true either. And just about every non-nutjob out there thinks the same way – if you have work experience, THAT is what is looked at by the hiring manager, not your grades from 20+ years ago. And in addition there are exactly TWO qualifications for President:

Must be over age 35
Must be a naturalized citizen

Nothing in the job qualifications about military service, tax returns, or grades, and certainly nothing indicating that every single American citizen has the right to know every detail required to verify the above: that’s a government agency’s job, not YOURS. If college records WERE part of it, he would still be under no obligation to provide them to YOU just because you’re an interested citizen.

“And going on and on about “how did Obama get IN to Harvard” practically screams anti-affirmative action talk.”

Nope. Its much more than that.

In other words, yes it does scream anti-affirmative action talk AS WELL AS some other stuff. Thanks for the confirmation.

People want to know if he got other special help or strings pulled.

And SOME PEOPLE say Stephen Hawking is an idiot.

And more than anything its a legitimate question as to whether or not the man may have applied as a foreign student in order to get in even though he is an American. If its so important to know about W’s short military service in Montgomery, AL. then its important to know about this.

You keep drawing parallels to arguments I am not making. I have little interest in Bush’s military service, especially since he didn’t run on being a war hero or something.

” I do recall people asserting Bush got in as part of Harvard’s children of alumni admissions policy.”

Yes. Matter of fact I’m pretty sure that Bush senior helped get him in and that if it weren’t for daddy he most likely would not have gotten in. And you can say that about a lot of people from influential families on both sides of the aisle. The kennedys would probably be a good example on the left.

And your point would be what? I see it all as irrelevant.

“So again, I don’t see the relevancy of those transcripts. Any of them, for anyone mentioned.”

Well it looks like a lot of people are in disagreement with you as to the relevance of college transcripts in regards to qualifications for the most important job in the world.

See, you SAY that “a lot of people” are in disagreement, but so far you have only ASSERTED that. There is no evidence provided that anyone here but you (and perhaps a few other nuts here, certainly not “a lot”) is making this case as some sort of legitimate and pressing question.

If you can’t understand that your college grades should be looked at in relation to your qualifications for this job then I just can’t help you.

If you can’t undertand why it doesn’t matter when it comes to being President, as I explained above, that other experience is considered instead, then I can’t help YOU.

Joe Hussein Mama

May 30th, 2012
9:30 am

F. Sinkiewicz — “There ya go! How many of you lib ilks got 3% raises this year?”

Oh, Fishy, you poor thing. Did you get passed over for a raise AGAIN? :D

Adam

May 30th, 2012
11:28 am

“There ya go! How many of you lib ilks got 3% raises this year?”

Well, mine was over 8%, so….

Grob Hahn

May 30th, 2012
11:52 am

Why don’t we just raise the debt ceiling to infinity? Then we can pay for all the social gimme programs forever. It really is that simple isn’t it?
Grobbbbbbbbbbbbb [/sarc]

Adam

May 30th, 2012
1:11 pm

Grob: The debt ceiling is actually something Congress can decide to simply eliminate. They are the ones that put it in place in the first place. And a court challenge to the debt ceiling itself can be justified as being contrary to the 14th Amendment.

progressive conservative?!

May 31st, 2012
7:21 am

Don’t matter what you libs say, Obamab is out, Repubs take senate as well, the makers inthis country get confidence back, and this economy will tke off. Get ready for 8 years opf Romney. Obama worst president ever, shame we had to have a black liberal as our first black president. Really embarassed himself.