Earlier this month, Standard & Poor’s downgraded long-term US debt.* But what is the real issue at hand? Robert Stavins writes that US political polarization has not only stopped economic policy, but a myriad of of public policy such as health and environmental policies. Stavins point to three areas which provide the framework for this polarization:
- An increased importance of primaries which “greatly favors candidates from the extremes”
- Redistricting which provides very safe havens for political parties which leads to Point 1
- Money – campaigning costs lots and lots and lots and lots of money
Stavins finishes up on a not-so-positive note:
So, it’s reasonable to anticipate – or at least to hope – that better economic times will reduce the pace of ongoing political polarization. However, in the face of the three long-term structural factors I’ve identified above – the increasing importance of primaries, continuing redistricting, and the increasing costs of electoral campaigns – it is difficult to be optimistic about the long-term prognosis for American politics.
* Let’s forget for a moment that S&P totally missed the mortgage debacle.