Damage done
A country embroiled in legislative turmoil, involved in more than one armed conflict and on the brink of financial default. Commentators from the third world like how the US is being described these days; to have these words being said not about themselves but the wealthiest nation on earth.
It appears, however, that the most immediate debt crisis to the US has been averted, with the House of Representatives having passed a compromise deal to raise the debt limit and the Senate and President just about to pass the said piece of legislation after this goes to press. The damage, as far as credit rating is concerned, is done. Standard and Poor’s is mulling downgrading the US’s erstwhile admirable AAA.
The deal, which was the result of intense negotiations between the Republican and Democrats, sees the debt limit raised from $14.3 trillion by $2.4 trillion. There is also going to be a cut in spending by the same amount as the debt ceiling raise. Politically, many expect the current administration to benefit from the turn of events. Even though the absence of new taxes in the package is what the Republicans wanted, pollsters say the US public believes the latter party has acted irresponsibly in bringing the negotiations so nail-bitingly close to the default deadline. Though the money is going to be cut from the federally funded programmes that the democrats and their voters hold dearly, there is a realisation that default was the greater enemy and that the Obama administration displayed statesmanship while its political foes exhibited ruthless selfishness.
Not too bright, the average US voter. Not many of them know, for instance, that it is impossible to be against taxes and a cut in government programmes at the same time. But the media tries to inform the voters and explains to the general audience the various policy trade-offs behind the negotiations between the parties. A stark contrast from our local media, where the polymath pundits (experts on the constitution one instance, the economy the next) are against progressive steps like the RGST and, simultaneously, in an amazing feat of mental gymnastics, are also against cuts in government subsidies for petroleum products and electricity.
