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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?


To: Andrew N. Cothran who wrote (420978)4/9/2011 5:55:38 PM
From: Andrew N. Cothran2 Recommendations  Respond to of 793917
 
2011 is not 1995
By Ezra Klein

(Susan Walsh - AP) The substance of this deal is bad. But the way Democrats are selling it makes it much, much worse.

The final compromise was $38.5 billion below 2010’s funding levels. That’s $78.5 billion below President Obama’s original budget proposal, which would’ve added $40 billion to 2010’s funding levels, and $6.5 billion below John Boehner’s original counteroffer, which would’ve subtracted $32 billion from 2010’s budget totals. In the end, the real negotiation was not between the Republicans and the Democrats, or even the Republicans and the White House. It was between John Boehner and the conservative wing of his party. And once that became clear, it turned out that Boehner’s original offer wasn’t even in the middle. It was slightly center-left.

But you would’ve never known it from President Obama’s encomium to the agreement. Obama bragged about “making the largest annual spending cut in our history.” Harry Reid joined him, repeatedly calling the cuts “historic.” It fell to Boehner to give a clipped, businesslike statement on the deal. If you were just tuning in, you might’ve thought Boehner had been arguing for moderation, while both Obama and Reid sought to cut deeper. You would never have known that Democrats had spent months resisting these “historic” cuts, warning that they’d cost jobs and slow the recovery.

Boehner, of course, could afford to speak plainly. He’d not just won the negotiation but had proven himself in his first major test as speaker of the House. He managed to get more from the Democrats than anyone had expected, sell his members on voting for a deal that wasn’t what many of them wanted and avert a shutdown. There is good reason to think that Boehner will be a much more formidable opponent for Obama than Gingrich was for Clinton.

So why were Reid and Obama so eager to celebrate Boehner’s compromise with his conservative members? The Democrats believe it’s good to look like a winner, even if you’ve lost. But they’re sacrificing more than they let on. By celebrating spending cuts, they’ve opened the door to further austerity measures at a moment when the recovery remains fragile. Claiming political victory now opens the door to further policy defeats later.

And policy defeats are what will matter. The Obama White House is looking toward the Clinton model. After all, Clinton also suffered a major setback in his first midterm, Clinton also faced down a hardline Republican Congress, Clinton also suffered major policy defeats, and yet Clinton, as the story goes, managed to co-opt the conservative agenda and remake himself into a successful centrist. The Obama administration has even hired many of Clinton’s top aides to help them recapture that late-90s magic.

That story misses something important: Clinton’s success was a function of a roaring economy. The late ‘90s were a boom time like few others -- and not just in America. The unemployment rate was less than 6 percent in 1995, and fell to under 5 percent in 1996. Cutting deficits was the right thing to do at that time. Deficits should be low to nonexistent when the economy is strong, and larger when it is weak. The Obama administration’s economists know that full well. They are, after all, the very people who worked to balance the budget in the 1990s, and who fought to expand the deficit in response to the recession.

Right now, the economy is weak. Giving into austerity will weaken it further, or at least delay recovery for longer. And if Obama does not get a recovery, then he will not be a successful president, no matter how hard he works to claim Boehner’s successes as his own. Clinton’s speeches were persuasive because the labor market did a lot of his talking for him. But when unemployment is stuck at eight percent, there’s no such thing as a great communicator.

By Ezra Klein | 01:12 AM ET, 04/09/2011



To: Andrew N. Cothran who wrote (420978)4/10/2011 3:10:13 AM
From: KLP  Read Replies (1) | Respond to of 793917
 
Boehner for President? Hummmm....Let's see what happens to the various tough items on the Dem agenda in these next few months....I think Boehner knows that the real goal is to lessen the deficit, and that Paul Ryan's proposed 2012 Budget is a well thought, positive and viable proposal to that end. He just couldn't allow the House to mire itself in the mud of minutiae, when the really important items were coming up in the near future.

Hearing the Dems revert to their rowdy, rude, lying selves didn't help their cause at all....The cause we all need to think about is....how can we reduce the TRILLIONS of Dollars in Debt we are....

And Boehner brought home the bacon. He proved to the country that he knows what is important, what is worth fighting for, when it is necessary to stand one's ground while keeping one's eyes focused on the goal.