Ok, I saw this on Bloomberg and had to comment.
Austan Goolsbee, chairman of the U.S. Council of Economic Advisers, said if Congress fails to raise the debt ceiling, the “impact on the economy would be catastrophic.”
“I don’t see why anybody’s playing chicken with the debt ceiling,” Goolsbee said today on ABC’s “This Week” program. “If we get to the point where we damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity.”
Perhaps economics and politics is best played out in the media, but, if true, this truly saddens me. “If we get to the point where we damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity.” Really? Damage to the full faith and credit of the US is a default? Umm, not for nothing but you don't think the full faith and credit has already been damaged? And as for the first default caused by insanity, where do I begin? Soundbytes rock!
Yep, just another year in the third world.
NYT:
President Obama plans to announce a two-year pay freeze for civilian federal workers later Monday morning in his latest move intended to demonstrate concern over sky-high deficit spending.
The president’s proposal will effectively wipe out plans for a 1.4 percent across-the-board raise in 2011 for 2.1 million civilian federal government employees, including those working at the Defense Department, but the freeze would not affect the naion’s uniformed military personnel. The president has frozen the salaries of his own top White House staff members since taking office 22 months ago.
The number of federal workers making more than $150,000 a year has grown ten-fold in the past five years and doubled since Mr. Obama took office, according to a USA Today study earlier this month. Since 2000, federal pay and benefits have increased 3 percent annually above inflation, compared with 0.8 percent for private sector workers, according to data cited by the newspaper.
Just thinking out loud: Imagine if the US had to implement the kind of austerity measures circulating throughout the world. Leadership talks a good game, but did you read the increases taking place? Seriously? Now, take the amount they are being paid, add in their benefits and pension (remember, different plan than the bankrupt social security) and what do you have? Its A Wonderful Life!
