The political brinksmanship leading to the government shutdown and debt ceiling crisis of 2013 was the latest in a detrimental series of events that are becoming all too common in Washington. Standard & Poor’s recently stated that the 2013 shutdown, which lasted 16 days, took $24 billion out of the U.S. economy and reduced projected fourth-quarter GDP growth from 3 percent to 2.4 percent. Moreover, the United States was placed on “Negative Watch” by Fitch. Congress has only funded the government until January 15 and raised the debt ceiling until February 7, making another crisis in the near term a distinct possibility.
These self-created crises have caused real damage to the U.S. economy, and the fallout raises many important questions:
- How do these high-anxiety events affect the global economy?
- How do such political events impact America’s reputation across the globe, both in an economic and leadership context?
- What actions can the international community take to help the U.S. Congress and President stop the bad habit of political brinksmanship, create long-term fiscal solutions and restore confidence in the U.S. economy?
We invite you to read a summary of the discussion that answers these questions.
By Brent Crane, APCO Worldwide