The Republican hostage taking of the American economy in an effort to keep the rich richer has won out. Tea Party members must be thrilled, in the past year their ‘compromise’ has amounted to tax cuts and spending cuts galore.

And many economists will conclude that reducing government spending during times of economy downturn is the WORSE thing you could possibly do. But of course, don’t tell that to thick skulled Republicans.

…the G.O.P. has just demonstrated its willingness to risk financial collapse unless it gets everything its most extreme members want. Why expect it to be more reasonable in the next round?

…..how can American democracy work if whichever party is most prepared to be ruthless, to threaten the nation’s economic security, gets to dictate policy? And the answer is, maybe it can’t. – Krugman in NY Times