Tea Party stupidity noted

A Very Expensive Tea Party 

The shutdown and debt ceiling brinkmanship did real damage to the economy. The immediate and direct costs are nicely summarized in a blog post by James H. Stock – an academic economist on the president’s Council of Economic Advisers. His assessment is that the effect is a

0.25 percentage point reduction in the annualized G.D.P. growth rate in the fourth quarter and a reduction of about 120,000 private sector jobs in the first two weeks of October (estimates use indicators available through Oct. 12th).

This is actually lower than the impact expected by some private-sector forecasters; after talking with people I trust, I would not be surprised if the overall impact ends up being closer to a 0.5 percentage point reduction in the fourth-quarter growth rate (annualized, as in the quotation from Mr. Stock.)
Does the country make up this growth later, for example because federal workers can now pay their bills? Probably not, because there is a persistent effect in terms of increasing uncertainty about public finances and about economic performance – and this will depress both some kinds of consumption and many forms of productive investment....

Members of the Tea Party movement express concern about the longer-run federal budget – and the potential negative impact of future debt levels. But their tactics are directly worsening the budget over exactly the time horizon that they say they care about.