Wiseacre
Retired USAF Chief
In the latest issue of The Economist, an op-ed talks about the impact politics will or could have on the fragile economies here and abroad. The question proposed is whether politicians around the world will enact policiy decisions that improve the situation or not.
We are no longer fortress America, whatever happens in Europe or Asia has a significant impact on us. So whatever happens with Greece, even though it's overall economy is small, influences the rest of Europe if they leave the EU and go back to their own currency. Likewise how China and other developing countries handle their rising inflation.
Here of course, we are dealing with the debt ceiling negotiations and how much spending is cut both near term and far. The opinion is that too much in cuts right now could result in a worsening economy that is already fragile. I don't know if that's true or not, but I would be hesitant to reduce spending too much or raise taxes either. Screw fairness, worry about that after the economy gains some traction.
Point is, the political decisions made this summer and the rest of this year could have a resounding impact later. We better be making some wise moves, or things could go from bad to worse.
We are no longer fortress America, whatever happens in Europe or Asia has a significant impact on us. So whatever happens with Greece, even though it's overall economy is small, influences the rest of Europe if they leave the EU and go back to their own currency. Likewise how China and other developing countries handle their rising inflation.
Here of course, we are dealing with the debt ceiling negotiations and how much spending is cut both near term and far. The opinion is that too much in cuts right now could result in a worsening economy that is already fragile. I don't know if that's true or not, but I would be hesitant to reduce spending too much or raise taxes either. Screw fairness, worry about that after the economy gains some traction.
Point is, the political decisions made this summer and the rest of this year could have a resounding impact later. We better be making some wise moves, or things could go from bad to worse.
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