News
NY Times | In World’s Eyes, Much Damage Is Already Done
Even before negotiations went down to the wire on Sunday night, the bitterness, division and dysfunction that resounded around the world in recent weeks as the United States veered toward default did more than just fuel a perception that Washington is approaching Japan-like levels of political gridlock.
Source | Downgrade of U.S. Debt Amounts to Only Few Basis Points in Ratings History
As the prospect for the loss of the U.S.’s AAA credit rating approaches and congressional leaders agree on a pact to avert default, bonds and currencies are signaling increasing demand for the assets of the world’s largest economy.
NY Times | Opposing the Health Law, Florida Refuses Millions
While 36 states shared $27 million to counsel health insurance consumers, Florida did not apply for the grants. And in drafting this year’s budget, the Legislature failed to authorize an $8.3 million federal grant won by a county health department to expand community health centers.
WSJ | An Agreement Is Struck, but the Deficit Isn't Solved
The firmest piece of the deal to which congressional leaders of both parties and the Democratic president agreed Sunday is a 10-year cap on annually appropriated spending for domestic and defense programs.
Econ Comments
WSJ | A Tea Party Triumph
The debt deal is a rare bipartisan victory for the forces of smaller government.
WSJ | Why Canada Is Beating America
It shrank government, and now unemployment and debt are declining.
Blogs
Forbes: Political Economy | The Small Government Establishment Joins the Establishment
What’s funny about a 40% reduction is that far from draconian or painful as both the big and small government wings would like us to believe, such “austerity” would simply bring us back to 2006 Bush era levels of spending.
Heritage Foundation | Scribecast: Sen. Mike Lee on the Need for a Balanced Budget Amendment
Sen. Mike Lee (R-UT) is a man on a mission. The freshman senator came to Washington after defeating an incumbent Republican, angering some in the GOP establishment but exciting Tea Party activists for his desire to end Washington’s reckless spending.
Atlantic: McArdle | A Few More Charts That Should Accompany All Debt Ceiling Discussions
In fact, most of what's driving our current deficits is the economy, and the onrushing retirement of the Baby Boomers. Those are the things that are changing rapidly, not the size of the Bush tax cuts.
Reports
Mercatus Center | The Real Debt Crisis: What Can Be Done?
The specter of a credit downgrade looms, and it is frightful. A downgrade threatens to push interest rates higher, making it more difficult for consumers to borrow, for businesses to hire, and for the economy to grow.
