Yes, Virginia there is a Santa Klaus but the bad news is that self-destruction is coming and it is called the GOP! That could be a literary answer to the “crazy economics” that I wrote about earlier on this blog. Now it has gotten to the point where we have further proof – if any was needed – that we are in the hands of those who act like they seek the destruction of our nation for narrow political gain.
We have heard from an array of top economists that we are facing a major financial disaster if America defaults on its national debt. Paul Krugman and Joseph Stiglitz, both Nobel Economics laureates, have pointed to the disastrous global consequences of a default on our debt. Even the likelihood would do long-term damage to our currency and our economy.
As I have noted, there are many dimensions to “national security” as well as military security, and our nation’s security is clearly threaten by “crazy economics.” These crazy economics are motivated by greed and not by concern for the unemployed nor for the average, struggling citizens. But it manifestly greatly degrades America’s leadership abroad.
The contemplated GOP Congressional proposals that threaten to not pay our debt unless depression type cuts are made to our nation’s vital programs will make financing that debt greatly more expensive. It will entice other nations to give up holding dollars as their reserve currencies, which will undermine our global leadership, and it will make some forego taking our bonds. It will likely contribute to a second, and possibly worse, global recession that will further destroy the industrial, technological, and scientific base of our economy, which may take decades if it is ever to fully recover. Unemployment will undoubtedly grow, which seems to be a conservative Republican goal.
With the “pro-depression” economic policies already enacted in the EU and severe budget cutting approaches already enforced in Europe, including in the UK, the knock-on effect will likely be devastating. It will not grow us out of our financial difficulties, but we will be digging our deficit and unemployment holes deeper by the rapid lowering of our GDP. Lower taxes do not help employment; they make it worse when budgets are cut now and in the future. The wholesale laying off of public servants, teachers, and road construction workers and others in the States has once again only proved the point.
Our ability to provide resources and funding for vital global challenges will diminish, if not disappear, making these global problems far worse, hurting global security by exacerbating conflicts and poverty across the entire globe. Budget cuts will make humanitarian disasters worse through lack of resources to respond. It will affect the spread of disease and poverty when we cut foreign assistance. And it will undermine our “soft power” diplomacy to address nuclear proliferation, threats to democracy, and regional conflicts and terrorism.
Finally, mindless cuts will unnecessarily undermine American leadership just when the world needs it the most as we face multi-crises. That will be the legacy of an unneeded debt default and its consequences. What are they thinking!
We welcome all comments and views! Join the debate!
By Harry C. Blaney III.