The editorial, “Government needs more cuts to survive crisis,” is something akin to what doctors formerly practiced — bleeding a patient.
Both accomplishes the same thing; worsening the condition it is supposed to cure. Government cutting spending will increase unemployment, which will decrease spending by the public, resulting in lower tax receipts, more government spending cuts, more unemployment and lower tax receipts. Something like a dog chasing his tail.
This has failed before. Most economists agree this is NOT the way to go.
Raising the debt ceiling was to enable the country to pay bills that had already been incurred, including two tax cuts for the rich and two wars. The “debt crisis” was invented to pursue a longstanding ideological agenda — “starve the beast.” As one Nobel prize-winning economist put it, “where are the ‘bond vigilantes.’” Bond rates are about 1 percent.
Lowering of the country’s credit rating and destabilization of the markets was the direct result of the irresponsible actions of the tea party and cohorts in putting a political agenda ahead of the best interests of the country.
Our financial crisis is the direct result of “free market” ideology. Somalia has VERY little government intervention; must be heaven on earth.