America’s political polarization could cost the U.S. economy

Despite it all — disputed elections and a Capitol insurrection, debt ceiling showdowns and massive fiscal deficits — global investors have shown unwavering confidence in the U.S. government.

The big picture: If that were to change, even just a little bit, it would be awfully expensive, warns a new paper from a former Biden White House economist.

Why it matters: The U.S. enjoys a "safe harbor premium." It is viewed globally as among the most sound and stable places on Earth in which to invest. That results in lower borrowing...