How Congress Can Derail Improving Economy

Washington’s ideological battle over how to restore fiscal stability continues to go nowhere—and the chief casualty is the U.S. economy. The Congressional Super Committee’s failure to agree on a plan for short-term stimulus and long-term deficit reduction means that policy uncertainty still reigns among boardrooms and households. Plus, without new action by the end of the year, several expiring programs will cut sharply into household incomes and spending early next year. The sad fact is that Washington’s gridlock threatens to curb economic growth just when the economy is starting to show some momentum.