Late last evening, President Obama announced that congressional leaders from both parties agreed in principle to a deal that would end the current debt crisis. The deal, still requiring congressional approval, would increase the debt ceiling through 2012, and cut approximately a trillion dollars in spending almost immediately. As details of the deal began to emerge last night, many supporters of the president were wondering if he conceded too much to congressional Republicans. Count me among those who believe that the president gave up more than he should have. In the end, Republicans will get the spending cuts that they demanded along with no increase in taxes, both of which are victories for the GOP. Tell me what is fair about that? Does that sound like a compromise to you? While the deal appears to be a defeat for the Democrats and President Obama, it could turn out to be a victory in the long run. For example, if spending cuts alone do not get us out of this mess (which they won't), President Obama can simply say to Republicans, I told you so. On the campaign trail, President Obama can make the case to voters that he was the one who was willing to work on their behalf, while Republicans simply stood in the way of progress. I personally believe that the president will come out of this crisis in a much stronger position politically than his Republican counterparts. For now, Republicans can bask in the glow of their legislative victory. A victory that might have come at a huge cost for their party moving forward.
Republicans will get less than $1 trillion because the cuts will be gutted in future legislation (and spread out over a long period of time). Taxes will not increase. The budget deficit will be reduced on paper but probably increase in reality once the politicians realize that to cut spending requires cutting things that they have made those who elected them feel entitled to.
ReplyDeleteEveryone can feel good as the crisis was averted (postponed?) at the last minute. As I predicted, everyone can pretend they won in the end.
In the end, the future lost because we still have a budget deficit and we still can't pay for all that our government insists on providing. I predict that Republicans in Congress will benefit next November. I predict that President Obama will be re-elected in a landslide as well. And I predict that we will all be doing this again in 2012 unless the huge pyramid scheme that is the federal budget collapses before then.