What we did and what we didn't

What we did: Cut spending during a recession - let's face it, we weren't recovering from the crash of 2008.  This defies every bit of economic logic, but we did it anyhow.  A fringe group took an important long-term issue and monopolized the national conversation with it.

What we did: Perhaps ignited a double-dip recession by cutting spending at the worst possible time.  I say perhaps because it's certainly possible that markets acted rationally to our irrational policy decisions.  Maybe we just threw things for a loop, maybe we actually made the hole a little bit deeper.

What we did: Allowed a small group of radicals to hijack the national conversation and orient our focus on a secondary issue (the deficit) while we did nothing to fix the real problem (unemployment).


What we didn't: Come up with a plan or long-term solution.  All the short-term spending cuts, if they achieve anything, will only hurt the economy.  We have done nothing to address long-term, structural issues such as entitlement or tax reform.  We have done nothing to fix the economy in the short-term.  In short, we have really done next to nothing.  Perhaps we've done even worse, perhaps we've taken a step backwards.

The results of the Tea Party's crusade have been disastrous.  With no understanding of economics, these people were allowed to hold the economy hostage.  Even Republican economists are denouncing their strident belief in cutting wantonly with no regard for programs, people or the greater good.  

Where this leaves us: Certainly no better off than we were before and perhaps in worse shape.  It is certainly good that we didn't default, but the damage was done as America's credibility suffered and our debt rating was downgraded by S&P.  There are many reasons to find fault with S&P, but those reasons did not assuage the panic that ensued immediately after the Tea Party led us to the brink of default.

Now that we have finally put this silly debt-limit debate behind us, it is time to focus on job creation.  It was actually time to focus on job creation two years ago, but some people didn't get that memo, so we find ourselves here today hoping that we can finally pay attention to the real problems.  More importantly, we need to remember going forward what issues are really the root of our problems and we need to elect people with an understanding of those issues and real ideas for how to fix them.  In short, we need to dump the tea.