Our recipe for prosperity is simple: protect the safety net, stop the austerity, give the economy room to grow, and don't pursue further deficit reduction at the expense of national priorities. The question is whether budget negotiators will listen.
Paul Krugman has a piece up today about how Germany's large and persistent trade surpluses play an important, destructive role in the slump in the rest of the Euro area -- essentially, they import much-needed labor demand from the rest of the zone.
Though the combined votes of the SPD, the Greens and the Left were greater than the votes for the CDU and its allies in the recent election, Angela Merkel for all intents and purposes has been given a mandate to continue her European policy that prioritizes austerity.
We know the shutdown is not about fiscal responsibility. If it was, Republicans would not have run up the deficit under W by trillions of dollars with two unpaid wars, unpaid Medicare prescription plan, and the Bush tax cuts.
This is no longer a hostage negotiation. It has become something far more unpredictable, and therefore much more frightening. Republicans have come full circle from the days when Ronald Reagan proclaimed that "it's morning in America." It's midnight in John Boehner's America.
Forty-one organizations, representing millions of Americans, have signed this letter to Congress, asking them to stand against those who would "hold our economy hostage in order to dictate the terms of the debate."
A government shutdown is an untenable situation. It's even less tenable for the party that causes it. Should their brinksmanship extend past September 30, House Republicans would be poised to take the overwhelming brunt of the blame.