Monday, August 1, 2011

A terrible mistake

Obama has caved again. He may have avoided literal financial default (we'll see how the votes in the House and Senate play out) but by agreeing to cut important government programs now and, in effect, later, he has ensured de facto economic and moral default.

What part of being rolled doesn't the President understand? He agreed to a "bipartisan commission" which will present to Congress a plan in a few months to cut an additional $1 trillion plus from government programs. The scenario for this commission is already clear. Since it is half and half from both parties, the chances are small that it will achieve consensus. But, even if it does, there is 0 chance that the Republicans, led around by the Tea Screamers, will vote for its recommendations unless they are in total agreement with its very narrow "principles". Why should they? Thus, I'd say that the almost certain outcome is that the recommendations of this committee, if there are any, will be rejected, and so automatic cuts to important programs will be triggered. We don't know yet exactly what the nature of these cuts will be, but they most certainly will involve Medicare reimbursements, and slashes to agencies that make our lives better and safer. This will further make our government appear -- and in fact, be -- less effective: a prime Republican/Big Business objective. There will be no tax increases on the wealthy, or even the tax "reforms"  which the Screamers regard as tax increases anyway. And, in fact, as nearly all economists agree, cutting government spending at this point in an economic downturn is a recipe for a double-dip recession. When this happens, Obama, by his lack of leadership will have made himself a one-term president.

In fact, the Republicans will have won everything, including the public-relations battle -- by Presidential default.

Of course, to sound an optimistic note, when the Republicans take over the show in 2012, they will resume the true disaster begun by 8 years of G.W. Bush: 0 regulation, 0 protection for consumers, 0 help for our crumbling federal, state and local education and infrastructure, and soaring unemployment with its resulting toll on already historically low tax revenues. Things will be so bad that by 2016 the Dems have a real shot at a rebound -- if there's anything left.

I can't wait.

1 comment:

  1. If I may quote Stephen Stills, circa 60s:
    There's something happening here
    What it is ain't exactly clear
    There's a man with a gun over there
    Telling me I got to beware
    I think it's time we stop, children, what's that sound
    Everybody look what's going down
    There's battle lines being drawn
    Nobody's right if everybody's wrong
    Young people speaking their minds
    Getting so much resistance from behind
    I think it's time we stop, hey, what's that sound
    Everybody look what's going down
    What a field-day for the heat
    A thousand people in the street
    Singing songs and carrying signs
    Mostly say, hooray for our side
    It's time we stop, hey, what's that sound
    Everybody look what's going down
    Paranoia strikes deep
    Into your life it will creep
    It starts when you're always afraid
    You step out of line, the man come and take you away
    We better stop, hey, what's that sound
    Everybody look what's going down
    Stop, hey, what's that sound
    Everybody look what's going down
    Stop, now, what's that sound
    Everybody look what's going down
    Stop, children, what's that sound
    Everybody look what's going down

    Classof65

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