Tepid Economic Growth Is The Cause Of Our Political Divisiveness

From The Weekly Standard, "The Beltway Establishment Still Doesn't Get It" by Jay Cost:

The American political process is starting to break down because of major changes to the political economy of this country. For half a century after World War II, the economy grew at such an incredible pace that we could have low taxes, high social welfare benefits, and a low deficit. This was one of the major reasons why there could be bipartisanship. Economic growth bankrolled these “great” compromises. It had very little to do with the foresight, courage, or moderation of the pols in Washington. They were just riding the wave generated by the private sector.

But all that seems to be over now. For more than a decade (not just the Great Recession but going back to 2000), economic growth has been far below its postwar average, and too low to keep the old regime afloat. You can’t have low taxes, high spending, and low deficits when the economy can’t break 3 percent growth.

This is something the D.C. establishment still does not seem to get. For years, their “farsighted,” bipartisan compromises were possible because the guys with the green eyeshades told them that the economy would grow to fill the gaps that they couldn’t fill. But now the economy can’t do that – so we have a mind-bogglingly large deficit and increased polarization in the political sphere.