The Other I

August 4, 2011

Useless politicians

According to most economists – and unfortunately according to the stock market that dropped dramatically in New York today –  the chances of a double-dip recession in America have risen sharply following grim economic figures and the risible debt deal.  The euro crisis in Europe unfortunately is compounding the problem.

Assessing the deficit reduction agreement reached by Congress two days ago, the Economist says “there was a simple bargain to be struck:  keep up spending in the short-term in exchange for a big medium-term reduction in the deficit. Congress did precisely the opposite.”

Congress both refused to support the alarmingly weak economy now or to agree enough cuts over the next decade to reduce the deficit.

“America has the world’s most innovative businesspeople, but its useless politicians could yet turn an inevitable period of hardship into longer-term stagnation. ”  That’s what I’m afraid of.

Let’s hope the economists and the stock market are both wrong.

I’d even be willing to live with the Tea Party putting Sarah Palin into the White House and having to listen to her  “I told you so’s.”

But I’m not counting on it.  The clouds on the horizon look very dark to me. I’m thinking of a back-up plan for living with what they will call a recession but that I would call depression.

Oh yes, I do hope I’m wrong.  I am sometimes.

That’s a consolation then.

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