The Real Cause of the Crisis: Forget Partisan Rhetoric … The Threatened Government Shutdown Is Caused By Bad Policy By BOTH PARTIES

Preface: Remember what the Founding Fathers said about partisan soap operas.

While partisans focus on specific things the other side is doing – “Obamacare” and the “debt ceiling” are the buzzwords of the day – the truth is that we wouldn’t be in this budget crisis in the first place if the government hadn’t engaged in bipartisan idiocy by:

  • Fighting a series of wars – which are horrible for the economy – when not absolutely vital to protect against an imminent attack

Category: Bailouts, Legal, Think Tank, War/Defense

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “Government Shutdown Caused By Bad Policy By Both Parties”

  1. darkstar says:

    Awesome post Barry. A pox on both their houses…

    The only way out, as far as I can see – vote for a 3rd party. If any 3rd party – be it the Libertarians, the Greens, or whomever – can get above 5%, it will change the world. Vote for either of these clown parties and, as they say, you’re throwing away your vote.

  2. MikeInSF says:

    …we wouldn’t be in this budget crisis in the first place…

    The shutdown isn’t a “budget crisis.”

    There is plenty right with the list above WRT to “things that are wrong” but you would pull a muscle explaining the link between a failed drug war and congress’ inability to pass a CR.

  3. milkman says:

    At the risk of sounding partisan….these all sound like republican policies…passed with the help of a few democrats….(including in some cases, democratic presidents)

  4. ilsm says:

    About wars of choice, Bastiat said that 150 or so years ago. Ike’s warnings started in 1953 about the economic harm of permanent war and unwarranted influence.

    Drug war fills prisons and militarizes public safety.

    Could have related tax cuts to mis-investing SS surpluses in war.

    It started when Madison rather than Jefferson took over writing the constitution. Pandering to slavers…….

  5. Fred says:

    Simply stated solution_breakup the parallel political parties. They serve themselves in an Oligopoly gaining reelection contributions from “constituents” they serve. Vote against each incumbent in elections. We gain a term limit condition this way.

  6. drveen says:

    Seriously?

    There isn’t a “budget crisis”, and that article is a *rant* about everything *but* the ACA.

    http://www.calculatedriskblog.com/2013/09/preparing-for-partial-shutdown.html => last paragraph in particular.

    I usually expect better of this blog, even when stuff not by Barry is posted as “food for thought”.

  7. Blissex says:

    «* Throwing a large percentage of those bailouts at foreign banks (and see this)
    * Throwing money at other corporate welfare queens
    * Propping up the bondholders … which is killing the rest of the economy»

    Unfortunately there are “good” seeming reasons to do all of the above. The main problem is pensions funds and life insurance policies.

    Company, state and even individual pension funds and life insurance companies are massively long the stock and bond and life-policy markets in general, indeed they own a large chunk of most companies, and a large part of that exposure is to bonds, stocks and life-policies of financial companies! After all, for the past decades given a massive credit and leverage explosion financial companies have been the best performing companies in the USA, a fantastic (and fantasy) investment opportunity. No pension fund managed who wanted to keep their jobs was allowed to avoid massive exposure to being long financial company stocks and bonds.

    If the government lets them fail, a large chunk of pension fund assets vanishes, and dozens of millions of angry private and public retirees and quasi retirees will revolt.

    Because that situation must not be made manifest, instead of bailing out directly the pension funds who own lots of financial company bonds and stocks, the government has decided to bail out directly those financial companies, giving them the means to repay their bondholders, and in many cases continue to operate with zero or negative shareholder equity.

    Even worse the governments of most first-world countries didn’t just bailout major financial companies and this indirectly their bondholders, shareholders, and policyholders, but also bailed out their managements, and that’s the biggest scandal. Sure, even management below the executive suite at most financial companies was tainted by complicity in reckless frauds, but at least eliminating a couple of layers of executives would have sent a message.

    «* Refusing to prosecute criminal fraud … which is destroying the economy»

    That can’t be done because most derivatives like CDOs have clauses that if the underlying securities are tainted by fraud, the issuer has to repurchase them at par, thus bankrupting the whole financial system of most countries, as those financial systems have aggregate equity well below the amount of losses in the “toxic” derivatives tainted by fraud they have issued.

  8. panskeptic says:

    This flailing around is unmitigated bullsquash. In a perfect world, all these issues would be taken care of rationally and honorably, but we don’t live in a perfect world, and some adolescents have more trouble dealing with that information than others.

    As for blaming both parties, that’s part of the Chuck Todd School of False Equivalency. The ONE AND ONLY reason we’re shutting down is because around 30 drunken, ignorant Flat Earthers are throwing a sustained tantrum because the Republicans lost the last two presidential elections, and to a black man at that.

    If they can’t win all the elections, they are determined to make the country ungovernable for anybody else. I’m not making this up; they have said so in their own words. Not only do they not believe in Democrats, they don’t believe in Democracy.

    As for voting for a third party candidate, that’s pretty much the same as dating your right hand – feels good for the individual involved but that’s as far as it goes.

  9. VennData says:

    Bad Policies?

    Hey, where’s that up-and-down vote you GOPers always say you want?