Of course no economist in his right mind would favor a sudden 1.4 trillion dollar cut in spending. That would bring on the biggest fall in the GDP since the Great Depression.In about a month, if nothing is done, the federal government will hit its legal debt limit. There will be dire consequences if this limit isnt raised. At best, well suffer an economic slowdown; at worst well plunge back into the depths of the 2008-9 financial crisis.
Last December, after Mr. Obama agreed to extend the Bush tax cuts a move that many people, myself included, viewed as in effect a concession to Republican blackmail Marc Ambinder of The Atlantic asked why the deal hadnt included a rise in the debt limit, so as to forestall another hostage situation (my words, not Mr. Ambinders).
Bear in mind that G.O.P. leaders dont actually care about the level of debt. Instead, theyre using the threat of a debt crisis to impose an ideological agenda. If you had any doubt about that, last weeks tantrum should have convinced you. Democrats engaged in debt negotiations argued that since were supposedly in dire fiscal straits, we should talk about limiting tax breaks for corporate jets and hedge-fund managers as well as slashing aid to the poor and unlucky. And Republicans, in response, walked out of the talks.
Republicans believe, in short, that theyve got Mr. Obamas number, that he may still live in the White House but that for practical purposes his presidency is already over. Its time indeed, long past time for him to prove them wrong.
http://www.nytimes.com/2011/07/01/opinion/01krugman.html?partner=rssnyt&emc=rss
I read several economists every week and so far haven't found one that thinks it's a good thing to not raise the limit. Schumer is right, they prefer beating Obama to helping the country.
As a liberal, I hope the president remains strong.