“Even Reagan, a supply-sider persuaded by Arthur Laffer’s pretty curves that tax cuts would pay for themselves, raised taxes when they did not. Today’s Republicans show no such flexibility.”
“Now the Republicans are using the spectre of a debt default to impose their own radical vision of how to reform America, before having won control of the Senate, the White House or even, many will say, the argument.”
Typical left-wing media propaganda. But what else do you expect from The Economist?
The Economist is published in the United Kingdom.
The UK is part of the EU.
The EU is socialist.
Therefore, the Economist is socialist.
-The collected syllogisms of Michelle Bachman.
Welcome to the faith-based community of America.
The GOP understands more than ever what tax cuts for the wealthy and de-regulation of industry have done for this nation so they see no reason to change course now.
The Economist is just talking its book. If interest rates go up substantially as a result of uncertainty, the value of treasuries issued at low rates goes down substantially (especially for the longer-term notes). The Economist does not want to see its subscribers lose, say, several hundred billion dollars. (And that, remember, is the good-outcome scenario, where temporary default of a few days or months doesn’t have any second-order effects.)