June 26th, 2012
07:29 PM ET

Congress playing Jenga with America's economic future

OutFront tonight: Capitol Hill's dangerous game of Jenga.

Let us explain.  Bloomberg reported today that Congress might try and delay the automatic spending cuts set to kick in next year. Not resolve, not compromise – delay.

In other words, Congress is trying to get out from under its own deadline of January 1st. That's when our leaders in Washington either have to find ways to cut the deficit by $1.2 trillion or face automatic across-the-board spending cuts equal to that amount.

Those automatic cuts are designed to hit in the worst places – places that you wouldn't make quick cuts to solve the spending problem. Poorly designed, unpalatable to both parties on purpose. Bipartisan reports say the cuts could cost over a million jobs.

But instead of that forcing Congress to find better, smarter cuts, it appears that they're only motivated to keep putting off the hard choices.

Republican sources confirmed to OutFront that these talks are indeed going on.

The problem is, they don't add up to a solution! All it does is delay making the cuts this country needs. And if Congress delays them, that it only makes dealing with taxes and finding a path to a solid economic recovery that much more complicated.

Dealing with these issues piecemeal is a lot like taking pieces out of a Jenga puzzle. It's all connected, and one bad move could destroy it all.

The truth is, our country is already on shaky ground. If you delay action on the automatic cuts, saving the hard work for another day, our entire country could come tumbling down.

Filed under: Deconstruct • Economy • Politics
soundoff (3 Responses)
  1. Anthony Horan

    Good television for economics. It is hard to underestimate the public's lack of economic education. Great dress. Electric blue! Manufacturer? I have become interested in these things since a visiting to the Jean Paul retrospective show in S.F.

    June 27, 2012 at 12:40 pm | Reply
  2. Raymond

    Seems that to be fair and sound .... finding cuts where the business model is labor intensive would be not desired..... finding cuts that are not labor intensive models would be the best path to financial and social success.. if jobs is truly the only point.. the funny thing is that with the numbers of people reaching retirement age the trend theory wise would be that workers are harder to find.. making the youth employment very low and the economy would hum along??? however FEAR is rampant in the world either by design or chance.. older workers are choosing to stay on the job because they are afraid?? or the number they want is not there anymove and they are SCARED.. instead of boldly going forward with the ability to adjust and get along okay... not rich but okay.... Sometimes I believe we create our own problems

    June 27, 2012 at 9:14 am | Reply
  3. Joey at Purdue Univ

    OK, that 3rd block looked pretty deliberate, but it's an apt metaphor.

    June 26, 2012 at 9:20 pm | Reply

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