If you are like most Americans, right now your feelings toward Congress regarding how they handled the debt ceiling dilemma range between total disgust and irate anger. After all, if you recently elected someone to go to Washington and get a handle on spending you were not very pleased when you saw him or her raise the ceiling authorizing “business as usual” i.e. limitless spending. If, on the other hand, you are on Medicare or Social Security and you came to the realization that not raising the ceiling meant reducing your check, you were not that happy either.
The most upsetting revelation regarding this crisis however was how eager the President was to throw those who need a hand under the bus so that corporate tax rates can remain low and their profits high. He volunteered to go against his party if need be to get a solution and was the first to bring up the reduction of senior support. Thank heavens cooler heads prevailed and in the end cuts were made to some imaginary budget items to be disclosed at a later date and not Medicare and Social Security, which so many depend on.
In the future you can continue to look for full-scale assaults to continue to come on what are called, “Entitlements!” In conservative speak, entitlement means “Free ride!” And I don’t mean the Doobie Brothers song here. Meanwhile those who in the past made up the short fall, continue to get away without a financial scratch. As long as the philosophy in Washington is that the less we tax corporations the better the economy will be, finding new revenue sources will always be defined as cutting back on services.
No government can serve two masters, and regardless of whether you are Republican or Democrat, the interests of both parties lie now with making sure corporate success is paramount, not necessarily the interest of the American people. That means the debt ceiling crisis and how it was handled, is only a small glimpse of things to come that are going to show us who Congress really serves.
If you are still pondering what would have happened had the debt ceiling not been raised, one of the scare tactics used was that our credit rating would be lowered. It still was and lo and behold the sky did not fall!! Amusingly the company that lowered the credit rating has close ties to rating financial projects for Wall Street. Thank god laws were passed to keep that from every happening again (nudge nudge)! Bottom line, the lower our credit rating the more money it costs us to borrow, and the more money those on Wall Street will make borrowing for us. Corporations win again!
In the end, what we all need to realize is that had we defaulted Americans would have suffered the most, not the bankers or the people who lent us the money in the first place. As for help had we defaulted, I guess in China they don’t write off bad debts. So in this near tragic tale, Wall Street gets to continue making millions borrowing for America while services and infrastructure will continue to decline for all of us and life in America broke and befuddled continues until the next crisis appears.