How much ineptitude does it require for the Tea Party to realize that their current stonewalling will create far greater economic harm to both their constituents and the US economy than raising taxes would?
We are past the point of economic theory on marginal receipts and marginal tax increases.
We are at the brink of a major abyss and a handful of thirty-something year old morons who know less about economics and markets than they do about politics are playing Russian roulette with our financial system.
We should have known that a group of new politicians who were so dogmatic to project images of sleeping in their offices to reduce spending had more in common with the Taliban living in caves than with our way of life. Dogma is a great platform to win an election, it’s a terrible platform for serving meaningful reform to a system built on different principles embedded with massive inertia.
It boils down to a simple analogy. Any company that is so heavily indebted that it may no longer be solvent must raise prices at the expense of fewer sales. It must restructure it balance sheet quickly through a combination of severe cost cutting and raising it’s receipts. It must divest non core operating activities by selling bits of itself off, particularly those pieces that it cannot operate profitably, and it must charge more for those services in which it has a competitive advantage.
This Tea Party stonewalling has already had irreversible consequences. Our political system has been valued as a function of our capitalistic economy because we generally make the right choices in the end. This Tea Party movement is dangerously close to pulling the rug out of any confidence people place in our will to get things right.
Those who dogmatically support the efforts to cap tax increases are going to sustain far greater impairment in their life savings than they ever would in their income. We are beyond rational politics, we are in radical land.