Regardless of what anyone thinks we might be winning or what we might have won in the midst of the debt ceiling debate, we have already lost. When the bar has been lowered so much where we are celebrating just the perceived idea that we might not default on the full faith and credit of the US when this was a run of the mill standard bearer issue and happened 7 times under the Bush administration, it really shows oh how the mighty Democratic party has fallen. How do I know?
Lost in the rush to frame the dramatic conclusion of Wednesday meetings was word of the actual substance of the talks. According to several attendees, negotiations stalled from the onset over the same issues that have proved irresolvable. Working off of talks that had been spearheaded by Vice President Joseph Biden, the president said he would be comfortable signing off on northward of $1.5 trillion in discretionary spending and mandatory spending cuts. With additional negotiations, he added, he could move that figure up to $1.7 trillion, and with a willingness to consider revenue increases and tax loophole closures, lawmakers could get to over $2 trillion. His preference, he said, was to continue to push for the biggest package possible, so long as it was balanced.
The biggest package of cuts during a jobs and demand crisis is apparently the good scenario of this debacle. Why? The president thinks we’re dumb enough to believe that balancing the budget is what gets the economy moving again under these conditions.
Hint: It doesn't under any conditions at all, at least for those that know something about economics and how deficits increase private wealth and put money into private pockets, 101. It’s not going to win Independents either.
This overall dynamic we are witnessing was easy to see once the horrible deal for the tax cuts was put into place but those that thought that was a brilliant maneuver forgot their history and none of them saw this coming. Deficits are a dangerous political tool as we can see, but especially if your party’s president buys the BS argument about deficits being dangerous at all in that a family’s budget is like the federal budget. That is the most egregious lie we are told every day by this president. It’s a lie that hurts families and hurts his base as well as the ability to grow it and garner acceptance and defend the New Deal to those who reject it out of ignorance. At least I hope it's a lie otherwise it doesn't speak very well of this president's understanding of these matters.
No one wins when the president won’t even make the case that creating jobs and spending is the best way to bring down the deficit and debt even though the way our whole system works since the fall of Bretton Woods it’s very unlikely that it happens or that it is even desirable since we are not on any kind of gold standard and reserve constraint. BUT Leaving that aside, this is a winning argument abandoned from the get go if we want to start educating the American people on how the federal budget really works and how reducing the deficit can be connected to jobs to start out while gaining their support for demand side policies we need, like the deficits we need.
The problem is and it’s a huge problem, once you adopt the rhetoric of the Republican Party or Third Way Neoliberal Democratic Party (not much difference here) you set the bar so low that besides getting this debt ceiling raise done like every other president has without a knock down drag out fight, you have already conceded defeat like our president has done or maybe he still thinks this is the 90s. Defeat in this scenario means no jobs, no real recovery with net jobs, and no real help for the working poor or middle class. Seniors who count on Medicare and SS will also be hurt if that part goes through as it was stupidly put on the table for no good reason.
We have abandoned Keynes and common sense and moved in with Milton Freidman while partaking in shock doctrine austerity binge drinking, but we’re told we won’t get drunk. We’ll just have a few drinks while we forget what we are supposed to stand for as Democrats.
So what the hell are we celebrating anyway?
Updated: Especially since even Ezra Klein is stressing concern h/t Digby:
In my Bloomberg column today, I argue that the Obama administration is much more intent on reaching a deficit deal, and much less intent on making revenues a major part of it, than is commonly assumed. That’s led them to offer Republicans a deal that is not only much farther to the right than anyone had predicted, but also much farther to the right than most realize. In addition to the rise in the Medicare eligibility age and the cuts to Social Security and the minimal amount of revenues, it’d cut discretionary spending by $1.2 trillion, which is an absolutely massive attack on that category of spending.
10:10 AM PT: Be sure to read Digby's piece on Ezra Klein on the latest disturbing developments.
12:33 PM PT: Carney: Obama Doesn't Want McConnell Deal, He Wants Big Cuts. 'Bigger Is Better' Nuh uh! Uh huh!
1:00 PM PT: (h/t slinkerwink) The White House Doesn't Want A Clean Debt Ceiling Bill
