When the history is written, I suspect the brutal budget battle transfixing the nation will be seen as much more than a spectacular partisan showdown.
Careful historians will, I think, cast it as a symbolic turning point for post-World War II institutions — mainly the welfare state and the consumer credit complex — that depended on strong economic growth that has now, sadly, gone missing. The story behind the story is that prolonged slow growth threatens historic changes to our political and social order.
Economic growth is a wondrous potion. It encourages lending because borrowers can repay from rising incomes. It supports bigger government because a growing economy expands the tax base and makes modest deficits bearable. Despite recessions, it buoys public optimism because people are getting ahead. The presumption of strong economic growth supported the spirit and organizational structures of postwar America.
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