Deal or No Deal: Why is a Default so Bad?

Nancy Pelosi says the Dems are withholding judgment and may or may not support the deal. From the Progressive Change Campaign Committee (via the WSJ): "Seeing a Democratic president take taxing the rich off the table and instead push a deal that will lead to Social Security, Medicare, and Medicaid benefit cuts is like entering a bizarre parallel universe–one with horrific consequences for middle-class families. Via the National Journal: Boehner is holding out for more defense cuts, and Dems are claiming they want to protect Medicare and Social Security: [More…] Congressional aides said Democrats also want Social Security and Medicaid exempted from the cuts imposed if Congress cannot act on a plan from the special committee. The cuts also could be applied to Medicare providers and insurers, rather than beneficiaries, the aides said. It's not to late to call or email your Senators and Congresscritters and tell them to vote no on this deal. A default may be the better move. I don't think a default is good, but I'm not convinced there will be disastrous consequences if the debate goes on past Tuesday.

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