So much for 'economic uncertainty'

By Steve Benen

In 2009 and 2010, the single most common Republican talking point on economic policy included the word "uncertainty." I did a search of House Speaker John Boehner's (R-Ohio) site for the phrase "economic uncertainty" and found over 500 results...The argument was never especially compelling from a substantive perspective. For Boehner and his party, President Obama was causing excessive "uncertainty" -- through regulations, through the threat of tax increases, etc. -- that held the recovery back...It was a dumb talking point borne of necessity -- Republicans struggled to think of a way to blame Obama for a crisis that began long before the president took office -- but the GOP stuck to it.

That is, Republican used to stick to it. Mysteriously, early in 2011, the "economic uncertainty" pitch slowly faded away without explanation. I have a hunch we know why: Republicans decided to govern through a series of self-imposed crises that have created more deliberate economic uncertainty than any conditions seen in the United States in recent memory.

E.J. Dionne Jr. had a great column on the larger pattern today.

Ever since they took control of the House of Representatives in 2011, Republicans have made journeys to the fiscal brink as commonplace as summertime visits to the beach or the ballpark. The country has been put through a series of destructive showdowns over budget issues we once resolved through the normal give-and-take of negotiations. [...]

The nation is exhausted with fake crises that voters thought they ended with their verdict in the last election. Those responsible for the Washington horror show should be held accountable. And only one party is using shutdowns, cliffs and debt ceilings as routine political weapons.

Quite right. Looking back over the last two years -- in fact, it's closer to 22 months -- Republicans have made three shutdown threats, forced two debt-ceiling standoffs, pushed the country towards a fiscal cliff, refused to compromise on a sequester, and have lined up even more related fiscal fights in the months ahead.

So, here's the question for GOP leaders: where did your concern about "economic uncertainty" go? Here's the follow-up: do you think a never-ending series of hostage standoffs inspire investors, reassure "job creators," and improve consumer confidence?

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http://maddowblog.msnbc.com/_news/2013/02/28/17133152-so-much-for-economic-uncertainty

What They Say Versus What They Mean

Over at Wonkblog, Lydia DePillis asks, “Remember when Republicans were worried about ‘economic uncertainty’?”

Actually, no, I don’t. I remember when they claimed to be worried about economic uncertainty — but it was completely obvious even at the time that this was nothing but an attempt to put a new, quasi-academic gloss on the same old same old. What they really meant was that the economy will boom only once we get rid of the Islamic atheist Kenyan socialist, and install someone who will be nice to rich people. They grabbed hold of some research that seemed, if you didn’t read it carefully, to support their complaints, but there was never any question that they would drop the uncertainty thing the moment it became inconvenient for their real goals. And so they did.

<...>

The point is that there are a lot fewer good-faith economic arguments out there than a naive observer might think — and that’s precisely because powerful forces are doing their best to hoodwink said naive observers.

So, goodbye “economic uncertainty”. The truth is that nobody ever took it seriously.

http://krugman.blogs.nytimes.com/2013/10/01/what-they-say-versus-what-they-mean

IMF Chief Calls Out Republican Debt Ceiling Truthers
By Rebecca Leber

As the U.S. nears the final date to raise the debt ceiling, a chorus of Republicans have downplayed the hard deadline and insisted the Treasury can “prioritize” its commitments to debt interest payments and to critical programs. But on Meet the Press with David Gregory, International Monetary Fund managing director Christine Lagarde debunked the claim that “creative accounting” would solve anything.

Lagarde likened the consequences to the financial market crash in 2008, warning that failure to increase the ceiling by October 17 would send the U.S. economy into a tailspin. “That lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over and we would be tipped again into massive rupture,” she said.

GREGORY: You know, there are some figures in our government and congress, Senator Rand Paul, others who say, you know, this is overstated. The treasury can do things and that the concept of default is hyperbole.

LAGARDE: But creative accounting is not the solution. And markets know that. The counterparts to the United States know that. And when you are the largest economy in the world, when you are the safe haven in all circumstances, as has been the case, you can’t go into that creating accounting business. You have to honor your signature, you have to give certainty to the rest of the world, and you have to make sure that your own economy is consolidating that welcome recovery that we have seen in the last few days because it impacts the entire economy.

Thirteen days of the government shutdown have already cost the economy more than $1.6 billion. But playing games with the debt ceiling stalemate threatens to contract the American economy even further and cost taxpayers hundreds of billions of dollars.

http://thinkprogress.org/politics/2013/10/13/2775031/imf-chief-calls-debt-ceiling-truthers/