Thursday, October 10, 2013

Why the GOP offer was a red herring.

The market got excited, news outlets spouted off: The GOP made an offer to raise the debt ceiling for 3~6 weeks so long as the President and Democrats agreed to sit down and talk.  Seems reasonable, right?  But it was a red herring.

The Republican proposal maintained a closed government, and in order to reopen it, both sides would have to agree; short of that, we'd be stuck in a closed government and another debt ceiling crisis in 3~6 weeks.

The tactic here, is to drag out the crisis and chip away piecemeal all that Republicans want, even though they lost seats in the last election and failed to beat President Obama.  It's why Democrats are against mini-CRs, and it's terrible governance in the first place, because it diminishes confidence in government and reduces economic output by holding the economy teetering on the edge of recession.

If the GOP's biggest argument for a long-term deficit reduction plan was to bring stability, then their tactic to drag out the crisis is hypocritical.

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