Originally posted on TED Blog:
In December 2012, Planet Money co-host Adam Davidson stopped by the TED office to talk about the fiscal cliff. At the time, the U.S. Congress was weeks away from a deadline to set a course on federal debt, and head-butting was at a fever pitch. As Davidson explained, the disagreement was simple: Democrats see increasing taxes, especially on the wealthy, as the answer, while Republicans favor lowering government spending. In the end, the so-called cliff was avoided with a last-minute deal.
But this morning, with Congress unable to pass a new budget and the United States government shutting down all but “essential” services for the first time in 17 years, Davidson’s talk seems relevant all over again. We asked Davidson to tell us why this budget standstill is even more concerning than the last. Here’s what he had to say: