Health & Fitness
Debt Ceiling: Obama Blinks
The GOP gets their way at the expense of the U.S economy but at least they stood firm, something the President could learn from.
The President drew his line in the sand. Then he took a step back and drew another line and then another line.
The proposed debt ceiling agreement between congressional leaders and the White House may have investors cheering, but long term it’s a dangerous deal for the depressed American economy.
President Obama says the agreement calls for an immediate cut of $1 trillion in government spending over a 10-year period and a $900 billion increase in the debt ceiling. Another $1.5 trillion will be added to the debt ceiling by the end of the year if a yet-to-be-created congressional committee can come up with additional cuts that equal that $1.5 trillion.
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Throughout the debt ceiling debate, the President seemed to be holding to his principals, demanding that there be an increase in revenue through tax increases on the rich. That’s out; the President blinked.
On the other hand, Republican leaders including House Speaker John Boehner are smiling, saying the GOP is getting 98 percent of what they wanted since the framework of the deal cuts more spending than the raises in debt limit. Those pesky tax increases that the President wanted, well those are out as well. Of course, not all Republicans are dancing in the streets. Alabama Senator Jeff Sessions says the deal does not give Republicans nearly enough but he’s also saying it’s probably the best that can be done for now. That’s not exactly a ringing endorsement, but it’s certainly not a cry of defeat either.
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Finding Democrats true to their principles who are truly pleased with the proposed agreement won’t be easy. Cuts in government spending during a depressed economy hardly make sense unless of course, there’s a gun being held to your head. To agree to $2.5 trillion without getting the tax hike, well let’s just say, it’s hard to see where exactly the Democrats made out unless of course, we’re talking about saving the U.S. from it’s first-ever credit default. Politically speaking, at its best, perhaps the deal is just a political loss for Democrats. However, at its worst, it’s a long-term economic travesty for the U.S.
So maybe the Republicans are on to something. Wait for a crisis, draw that line in the sand and wait. Eventually, the Democrats cave in.
It seems like we’ve been down this road before.
