Tuesday, July 26, 2011

Losing by Winning

The more I read about the Debt Ceiling crisis, the more it becomes clear that Democrats, expecially the President, have decided that they are finally in sight of winning a political battle.  They're showing the country how crazy and unreasonable the Republicans are: "Look! We're offering them practically everything they say they want, and they still won't take it!  See, they're impossible!". 

So Obama starts with an offer of a deficit reduction package that is tilted 85-15 toward spending cuts, even though the deficit was caused mostly by the Bush tax cuts.  This despite the fact that polls show most Americans in favor of raising taxes on the wealthy to close the deficit.

And I think it's working so far- the Republicans look absolutely crazy to refuse subsequent offers that keep all the Bush tax cuts and just attack a few tax loopholes in exchange for cuts to Medicare and Social Security.  If Democrats can keep pushing hard on this, they might make gains in the 2012 elections.

But look what they've lost! They've ceded all the policy ground to the GOP.  Democrats, including Harry Reid and Nancy Pelosi, are on record supporting plans to solve the deficit problem almost exclusively through spending cuts, and it's rumored that Obama floated an offer to go 100-0 with spending cuts until Senate Democrats shot him down.  To suggest going 50-50, as Bernie Sanders has done, is seen as a wildly radical idea, even though tax cuts caused much of this problem.

So we win the battle but lose the war.  Discretionary spending is going down to levels not seen since the 1970s.  Social Security benefits are going down one way or another, without even a thought to raise withholding from paychecks or start deducting more from high-income earners.  Democrats are suggesting an increase in the age of Medicare eligibility.  If Democrats won't fight for basic stuff, then what's the point?

And in addition to all that, these policies aren't going to work in bringing the economy back according to most economists, and that's what really matters for re-election.  Democrats might end up losing the politics as well as the policy.  But for this liberal it's hard to even care about the politics- may as well lose now, if winning looks like this.

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