As the oxymoronic Super-committee declined to come to grips with the plan to cut 1.3 trillion dollars in spending the next ten years, the next day the American stock market declined in response. A look at the Russell 3000, a collection of 3000 American companies, showed that the collected loss among these companies that day was 4 trillion dollars in value. 4 TRILLION DOLLARS. So the 1.3 trillion dollars in cuts was too much for the nation to tolerate, 4 trillion dollars in losses resulted which the nation presumably will just shrug off.
The ripple effect in the economy that government can generate, in this instance by NOT doing something, is impressive.
Strangely many think that inaction by the government is desirable with the logic that "at least they're not harming anything" but that is clearly simplistic.
Just because the lever is defective does not mean you can ignore the quality of the man with his hand on it.
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