The Debt Ceiling will be an election issue, and jammed more #austerity down our throats.First, they participated in negotiating an informal deal where they compelled $1 in spending cuts for every new dollar of borrowing. This plan reduces the overall size of the deficit.
Then, having secured the #austerity framework, they backed out – insisting on cutting spending on poor people instead of cutting spending on the military.
This forces the Debt Ceiling to be a campaign issue for 2012, because the Debt Ceiling will be breached in the lame duck period between the November Elections and the January 2013 Inauguration.
h/t Matt Yglesias.
It seems very likely the upper echelons of the republican party are fully aware of the ability of governments to deficit spend beyond a balanced budget according to the MMR/MMT/MS/Post K view of the world. Hmm.