OK, enough of this uplift. Back to business.
A few months ago, after I had done a post about destructive rule-changes in current American politics, Andrew Sprung wrote back with this refinement:
>>It's not the rules, it's the norms. That is, the GOP, led first by Gingrich and then by Bush Jr., blew through norms and broke taboos that had greased our democratic machinery for decades prior to the early 90s. These include, "you shall not filibuster every pending bill or block every opposition appointment" as well as "you shall not torture detainees or politicize Justice Department hiring." On the other hand: with the old norms broken, we need some new rules to create new norms.<<
That's on my mind more and more as we assess the damage of the past month in American politics. Let's assess why the results are so sobering:
1. In economics, we have the spectacle of a new wave of public austerity just as the private economy begins to contract again. World markets were "uncertain" during the period of doubt about a debt-ceiling agreement. Now that we have the certainty of contraction and austerity, markets have been down, hard. More important, layoffs are headed up.
2. In the realm of public discourse, we have had a discussion that proceeded as if no one had ever heard that cutting government spending, as private payrolls fall, is a time-tested route toward lower payrolls, more cutbacks, and a longer, harder descent for everyone involved. Maybe you don't want to believe Keynes (even just The Economic Consequences of the Peace) or other postwar economists; or historians or analysts from Robert Skidelsky to Liaquat Ahamed; or Richard Nixon! In that case maybe you'll believe Hu Jintao. We've just had a debate about public finance comparable to a debate about the moon program in which no one had heard of gravity.
3. In the realm of public function, we have the unbelievable travesty of the FAA quasi-shutdown. As Don Brown, longtime FAA controller and safety expert, and former guest blogger on this site, has explained, it's largely thanks to one man -- Rep. John Mica, shown looking dapper in an official photo at right -- that at this moment some 4,000 FAA employees and their families are without income, plus some 70,000 construction workers and their families who are laid off without income while construction projects have been frozen. And this while Mica and his colleagues go on their (paid) month-plus vacation. And while the FAA loses far more in tax revenue from the airlines each day than the "wasteful" spending being argued about each year.
Mica and his colleagues did this through a step that was "within the rules" though obviously destructive. They passed a version of the FAA bill with provisions they knew the Senate wouldn't accept -- and then adjourned for (paid) August vacation, leaving the Senate to swallow their unilateral demands or leave tens of thousands of families without paychecks. All this, of course, as opposed to arranging a way to keep things running while they worked out their political disputes. Many airport safety inspectors are being asked to do their work as volunteers, and run up expenses on their personal credit cards in hopes of later reimbursement. We're not just asking the Chinese to cover our inability to pay our way; we're asking our own GS-12s. This is squalid. As one reader wrote today:
>>I have to wonder, how long can the airport inspectors continue to do their jobs without pay while covering their own travel expenses? I know this isn't exactly a typical charity case but have you heard anything about a fund being set up for these guys or anything like that? I'd certainly donate to help keep these guys afloat while the FAA's finances are in limbo.<<
Governments exist precisely because it doesn't make sense to pass the hat for airport safety -- or border protection or the public-health service etc. You can argue about a lot of government responsibilities, but transportation safety is pretty close to everyone's idea of a core public function. But -- to hell with it! And to those 74,000 families with no paychecks. Let them tighten their belts. This will help the recovery in so many ways, just as the the $1 billion or so in foregone FAA revenues will help cut the deficit.