Where many disagree is how serious the crisis really is. People like Robert Reich insist that it’s “ridiculous” to concern ourselves with the debt right now, when we can deal with it five years from now. Various Keynesian economists believe that spending will fix our current economic conditions — we can tackle the deficit and debt when we’re on more stable financial footing.
Unfortunately for this side of the argument, the time to tackle debts and deficits is now, and the days are numbered. A recent Moody’s report, one of the most influential debt rating agencies in the country, stated that a downgrade on America’s debt rating “is likely” by mid-July if there isn’t a “credible agreement on deficit reduction.”
This is the second such warning in two months, coming on the heals of the S&P’s threats of a downgrade amidst the debt ceiling discussions currently taking place in Washington. Yet while the seriousness of this situation can’t be understated any longer, Congress doesn’t seem to be too concerned. President Obama set a deadline for a debt ceiling deal to be ready by the end of June, with Vice President Biden leading the talks. However, the Senate is in recess this week, the House will be in recess next week, and Biden is in Italy, making it unlikely a proposal will be ready at that time.
You’d think given the severity of the situation, Congress would hold off on their vacations until a proposal could be agreed upon. It’s their job, right? But alas, it is becoming clear that if there is one thing Congressmen value more than anything, it’s frequent vacations, even in times of national importance such as this. America’s perfect credit rating hangs by a thread, our deficit has grown to unacceptable levels, and important budget reforms have been subjected to fear-mongering and childish insults. Maybe instead of taking a week off, our representatives should commit to staying in Washington to fix this fiscal nightmare. Otherwise, break out the gyro stands and pop the Ouzo — it’s going to look an awful lot like Greece.Published in