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Notes to myself, possibly of interest to others.
-- Bill Northlich

Friday, May 13, 2011

Krugman on Banana Relpublicans

...failure to raise the debt limit could act as a terrible signal about the US political system.

When you look at the US fiscal position in terms of what we’re capable of as a nation, it’s not a big problem. Never mind those big numbers you hear about implicit liabilities; we have a big economy, too. So modest tax increases and reasonable efforts to limit health care costs could bring our long-run finances into line.

But all this depends on our having the political will and cohesion to do what’s necessary. What if it turns out that we’re a banana republic, with crazy extremists having so much blocking power that we can’t get our house in order?

...failing to raise the debt limit could be widely read as a signal that we are, in fact, a banana republic. [orig]

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