On its current course, the United States is four weeks away from defaulting on its debt for the first time in its history. If that happens, businesses will fail. Financial institutions will fail. Home values will decline. Mortgage rates will skyrocket. Spending and investment will all but disappear. Social Security checks will stop being mailed. Everything from military pay to food inspection will be compromised, if not fully cut off. The millions upon millions of Americans who are unemployed or underemployed will be joined by millions more.
Across the world, America’s second financial collapse in three years will drag down already fragile economies in Europe, Latin America and Asia, potentially creating a “worldwide depression,” as Senate Majority Leader Harry Reid described it. In short, we would be thrown back deep into economic turmoil — only this time with even fewer tools to crawl our way out.
In theory, this is unthinkable, and it will be remedied by reasonable political parties making reasonable concessions across the negotiating table. But Republicans have been negotiating in bad faith, unwilling to compromise even an inch on their extremist and absolutist positions. Some are no longer willing to come to the table at all.