Losers
1. The budgetary process. The debt ceiling is an anachronism that should be abolished but it has now supplanted the traditional process of budgets and continuing resolutions. Weâ??ve discussed our opposition to the debt ceiling and our nascent love of Chilean fiscal rules in this inherently thrilling post. In short: policy decisions shouldnâ??t be divorced from the decision to pay for them. Debt ceiling rows have flared up before, but 2011 seems to set a dangerous precedent. Roll on 2013!
2. The unemployed. The White House tried to include the extension of â??emergencyâ? federal unemployment insurance in a grand bargain with House speaker John Boehner. It didnâ??t form part of the final deal, and now looks likely to expire at the end of 2011. With the US still very much facing an â??emergencyâ? employment situation, this will make life harder for job seekers and reduce private consumption.
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