Diary

Don't fall for another short-term debt "solution" trick

Reuters reported yesterday that Obama and the Democrats may try to push for a budget deal that would kick the can to next spring.

President Barack Obama and Senate Democrats are weighing a scaled-back U.S. budget deal that would avert a looming default but force Congress to tackle the politically toxic issue again before the 2012 elections, a Senate Democratic aide told Reuters on Thursday.

The deal would cover the country’s borrowing needs for seven months, the aide said. That would theoretically include budget savings of roughly $1 trillion to attract the Republican support needed to pass it through Congress.

It would be a HUGE mistake for Republicans to fall for this scheme. In exchange for tossing out a small amount of low-hanging fruit without having to make any significant cuts in entitlements, just think how well it would set up for the Democrats to have this battle again in the heat of the 2012 election…

  • “We’ve already made deep spending cuts, but now the GOP wants to throw even more poor and sick people out in the street.”
  • “The Republicans would rather have the country go into default than to have a small tax increase on the millionaires they’ve protected for years.”
  • “We need to tackle entitlement reform, but the draconian GOP plan involves ending all safety net programs.”

Anyone who thinks Democrats would touch entitlement reform in an election year – other than continuing to demagogue about any GOP plan – needs to get rid of the crack pipe. If the Republicans fall for this short-term ploy again, they are playing right into Democratic hands for the 2012 elections.