It’s so easy to get caught up in the theatrics in Washington DC, the duelling banjos of Obama and Boehner, and to forget that what is going on has consequences which will extend beyond our own borders. Whether this is still true or not, we continue to be perceived as the leader of the world, and when the leader of the world engages in absurd antics, the results might not be so great.
In an interview with CNN, World Bank President Jim Yong Kim reminded us that a United States default will painfully affect the world’s poorest as well. As he put it, “it’s having an impact on the little guys,” with the cost of capital rising for those in impoverished countries trying to work or start businesses. We may look at our own government and say “To hell with all of them!”–I know I do at this point–but this thing has the potential to turn into a global economic crisis.
Of course, the fact that a default might crush “the little guys” probably means the Republicans will only support it even more. After all, those Third World people should pull themselves up by their own nonexistent bootstraps instead of expecting a handout. So I may be giving them one more reason not to raise the debt ceiling…maybe it would have been better to remain quiet about this one.