The Republicans have rejected the calls for bipartisanship and the Democrats have passed the stimulus package without their help.
The Republicans are betting that the package fails and that they will regain power as a result of their stance. The risk is that the package will succeed, and they will become even more irrelevant.
Such huge fiscal and monetary stimulus will likely have some feel good positive impact. It is the longer term impact that harbors the greater danger. This crisis challenges many of our economic beliefs and principles.
Spending money you don’t have is easy. It is painless to pass stimulative measure. But when the economy recovers will this Congress and adminsitration be able to raise taxes and cut spending, especially on the sacred entitlement programs in a way that will restore fiscal responsibility and a sound currency?
That is the critical question, and I remain very skeptical.