The American politicians may have reached a debt deal late last night and a default is now likely to be averted, but the political circus of last few weeks has left America's reputation in tatters.
The debt ceiling will now go up to $16.7 trillion over eighteen months. However, the deal barely patches economic wounds and methodology adopted is so convoluted and that it leaves many wondering about the caliber U.S. politicians. Also, many are wondering that if a deal could be done last minute, why could it not have been done three months ago, saving America this embarrassment?
What U.S. needed was an increase in debt ceiling and constitution of a bipartisan Commission to work out and implement a plan to revive U.S. economy, create more jobs, cut wasteful expenditure, enable innovators and entrepreneurs to start new businesses using new technologies so that the economy expands and revenues grow. Instead, there is no focus on jobs, economy or the well being of U.S., the only task of the Commission set up under this deal is to cut cut cut. This does not bode well for future of U.S. economy.
It is a pity that a country gave the world the concept of free market economy, innovation and opportunities for all; is going through dire straights. Even an ardent communist, Maoist country like China has very successfully adopted U.S. style free market, creating enormous prosperity for its citizens.
The U.S. public has watched all this in horror and hopefully some lessons have been learned and the voters will send those politicians packing in 2012 who perpetuated this crisis.