Paul Krugman: Republicans don't understand economics of the shutdown

Rebels Without a Clue

By PAUL KRUGMAN

Published: September 29, 2013 1085 Comments

This may be the way the world ends — not with a bang but with a temper tantrum.

O.K., a temporary government shutdown — which became almost inevitable after Sunday’s House vote to provide government funding only on unacceptable conditions — wouldn’t be the end of the world. But a U.S. government default, which will happen unless Congress raises the debt ceiling soon, might cause financial catastrophe. Unfortunately, many Republicans either don’t understand this or don’t care.

Let’s talk first about the economics.

After the government shutdowns of 1995 and 1996 many observers READ MORE