Argument: Bitter debt deal debate undermines confidence in economy
- Debate: US debt ceiling deal - con argument.
"The cost of uncertainty." Chicago Tribune Editorial. August 2nd, 2011: "The economy if anything feels worse than it actually is. Call it sentiment, confidence or karma: We're feeling down. The deficit-reduction spectacle in Washington has distressed Americans across the political spectrum. It's a very good thing that Washington has started to confront its spending addiction. But Congress should not have taken this to the brink of possible default. That doesn't bode well for the next round of debt reduction - and there will have to be a next round. Remember, Congress has not agreed to reduce spending - it has agreed to reduce the rate of growth in spending. This bitter debate and the modest result will leave job-creators and consumers feeling uncertain. The Institute for Supply Management's July manufacturing report shows how bad feelings can hold back the economy. Compiled by a private trade group, this indicator is based on a national survey of purchasing executives. It's considered a fairly straightforward snapshot of how America's industrial economy is faring. Production and employment were weak, but that wasn't the worst of it."