Tuesday, October 1, 2013
Many have been viewing the latest budget crisis as now-typical high-stakes bargaining that will soon end in a last minute deal. But there's good reason to believe it's not a bluff this time, and that the GOP sees benefits in a prolonged crisis. Here are three:
1. Shutting down the federal government -- or at least significantly scaling it back -- is part of the Tea Party mission. As Rep. Marsha Blackburn of Tennessee said on Fox News: "People are going to realize they can live with a lot less government." So they want this to be the new normal.
2. An improving economy on Obama's watch hurts GOP chances in 2016, so they're happy to stall the recovery to precipitate regime change.
3. If the federal government defaults on its debts, investors will consider treasury bills a less reliable investment. So the Fed will need to pay more to borrow money, which will drive up interest rates across the board. That helps people the super wealthy -- the key GOP constituency.
So be prepared for this latest GOP-led crisis to last awhile.