Tuesday, October 01, 2013

The "Cost" of Shutdown?

Editorial disguised as 'news.'

A partial shutdown of the federal government would cost the U.S. at least $300 million a day in lost economic output at the start, according to IHS Inc. 

While that is a small fraction of the country’s $15.7 trillion economy, the daily impact of a shutdown is likely to accelerate if it continues as it depresses confidence and spending by businesses and consumers.

Well, yes--but given that IRS does not close its doors (and it doesn't), Obama & Co. will continue to extract money from taxpayers.  That is a "cost", just like awarding back-pay to the hive's worker-bees after the "shutdown" is over with.  (By the way, only half of Federal employees will be furloughed.)

More editorial follows here:

...Congress and the White House also will face off over raising the nation’s $16.7 trillion debt ceiling. The Treasury has said its ability to borrow will end on about Oct. 17 unless the limit is increased. Treasury Secretary Jacob J. Lew has said that failing to raise the limit would risk putting the U.S. into default and could be “catastrophic.”...

That's a gross distortion of the truth.  The US will not "default" unless it refuses to pay its obligations.  Refusing to pay (or the inability to pay) is not necessarily a result of capping the debt.  Reducing spending, instead, is an option--but it's not mentioned here. 

Gee whillikers, Batman, why not?

Well, Robin, the reason that reducing spending is not mentioned is simple.  It doesn't fit the story-line of this editorial-disguised-as-news.

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