On Karl’s Up With Chris Hayes appearance, Betsey Stevenson rightly pointed out the obvious falseness of the claim that we would be better off if we defaulted on our debt during the debt ceiling crisis. Everyone seemed to agree it was a problem that there were no elites to come down on Republican politicians making this crazy argument and tell them they are, well, crazy. But as I blogged back then, sane conservative did come out strongly against defaulting. You had Douglas Holtz-Eakin, Gary Becker, Keith Hennessey, Richard Posner, and Glenn Hubbard arguing that not only would defaulting be terrible, but that it would unequivocally be terrible. This was not a failure of the elites, it was a failure of people to listen to them. I suspect we may see the same thing happen when the debt ceiling comes back again.

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