I’ve learned that not having expectations with regards to politics is usually the best way of not experiencing disappointment, and the imminent failure of the Congressional Super Committee indicates that it wasn’t so super to begin with. Negotiations in committee sessions have failed to lead to a substantive agreement, with both sides still far apart on a strategy to trim projected budget deficits by a paltry 10% over the coming decade coming to naught.
But, take heart; there’s an upside. The failure of the committee means that automatic spending cuts will take effect. Taken in conjunction with a rise in the top personal income tax rate brackets (letting the Bush era tax cuts expire and reverting to the Clinton era rates), this would generate another $4 trillion dollars, thus shaving $6 trillion (about 60%) off of the projected federal deficits over the next decade.
So, for once, the patent inability of Congress to achieve anything meaningful, for once, works best to the advantage of the American public. Because they wouldn’t grow up and cut a deal with each other, the American public, for the first time in a long while, comes out on top. Higher marginal tax rates on the rich, automatic spending cuts, and a budget deficit that’s much smaller than what we were looking at a few months ago. Lose-lose for the committee, win-win for America.