Here we go again.
Intransigence from Republicans basically kept us out of a grand bargain last year. Plenty of Democrats were willing to do it, the White House was more than willing to do it, and even John Boehner was willing to do it, at least on a conceptual level. But House Republicans wouldn’t betray their tax pledge and so it didn’t happen.
There are some different dynamics to the next round of the grand bargain. There are still enough Democrats willing to deal, led by House Minority Whip Steny Hoyer. The White House has de-emphasized a deficit deal, but their budget still shows a blueprint for one, and if they get revenue in exchange, they’ve stated openly that they would make cuts to Medicare and other social programs. So is there a new willingness on the Republican side? According to The Hill, Republicans have joined a bipartisan working group that is preparing a document on deficit reduction.
A small, bipartisan group of lawmakers in both the House and Senate are secretly drafting deficit grand bargain legislation that cuts entitlements and raises new revenue.
Sources said that the task of actually writing the bills is well underway, but core participants in the regular meetings do not yet know when the bills can be unveiled.
The core House group of roughly 10 negotiators is derived from a larger Gang of 100 lawmakers led by Reps. Mike Simpson (R-Idaho) and Health Shuler (D-N.C.), who urged the debt supercommittee to strike a grand bargain last year.
That larger group includes GOP centrists like Rep. Steve LaTourette (R-Ohio), who has said Republicans should abandon their no-new-tax-revenue pledge, as well as Tea Party-backed members like Rep. Cynthia Lummis (R-Wyo.).
What’s interesting is that this is originating from the House. You would expect something to build on the Gang of Six in the Senate, which included Republicans. But a back-channel process in the House shows a new receptivity. Apparently this is linked to a Gang of Six process over in the Senate as well.
I don’t think we’re going to see any actual movement on this until after the election. But the lame duck presents a number of dangers for those who don’t want to see cuts to social safety net benefits. First of all, you have a mountain of expiring measures, most of which have to do with the deficit. The Bush tax cuts, the payroll tax cut, extended unemployment insurance, the doc fix and the triggered cuts to discretionary and defense spending all expire at the end of the year. So something impacting the deficit will have to get negotiated out at that time. And the lame duck session represents the moment of lowest accountability for the Congress. Many of these lawmakers won’t be coming back, and voters won’t get to weigh in for another two years. So the secret austerity society meetings are designed, in my view, to come up with off-the-shelf legislation that can be pulled during the lame duck to substitute for the expiring measures. The anonymous sources disclosing this to The Hill as much as admit this: “A source close to the effort said the focus is on drafting now, and negotiators will address when to unveil the result later.” Mike Simpson, the House Republican leading the way on this, claims that they aren’t waiting until the lame duck, but the fact that they’re not trying to work through the budget process makes their intent pretty obvious.
The fact that Heath Shuler, who’s retiring this year, is leading the way on this from the Democratic side tells you all you need to know from the Democratic perspective.
This doesn’t mean that a lame duck deficit grand bargain will succeed – some of the barriers from the debt limit deal still exist (particularly the no-tax pledge). But it means that those who want it to happen have a plan. I’m not sure those defenders of the safety net left in Congress have a plan of their own.




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For God’s sake can someone get Obama away from the goddamned negotiating table. What exactly did he get for extending the Bush tax cuts especially considering he didn’t have to do anything to let them expire?
Obama got exactly what the <1% wanted.
If Obama’s behind this (And I imagine he is), he’s even a stupider politician than I thought.
In 2011, Obama was trying to get a grand bargain, and his approval rating went into the toilet. The GOP humilated him on that issue.
Maybe he misses those days of humilation, and may yet try and sabotage his re-election chances for a “grand bargain”.
WTF? Sometimes Obama has me thinking he’s really two different people stuffed into one. Barry Obama: the white Midwest Harvard trained GOP Corp. lawyer and Corp. shill / Pres. the last 3 yrs. and then there’s Barack Obama: the black Community organizer and Progressive/Liberal pol. from Chicago. ( only allowed around the campus when campaigning.)
Far too much emphasis has been placed on Barack Obama’s time as a “community organizer” whether from the political left or right. He was only doing that work from 1985 to 1988, prior to entering Havard Law School. Many people use such experiences to “beef up” their resumes. Based upon his actions as President, I would say that being a community organizer was far less important to him than beefing up his resume.
Nope, he’s just one person. He was and is a fraud and corrupt as they come.
All that we the people have to control our politicians is elections but… however frightening it is to contemplate… people must learn to accept the fact that the corruption of the system is near-total and the tools of the <1% will simply do as they are told.
Period.
If Obama needed to take a dive on behalf of our owners he would do precisely that. He openly stated that he didn't care if he was a one-termer as long as he accomplished his goals. Strange how that faded from memory.
But, as it turns out, Obama did far better than perhaps even our owners might have expected… they always seem surprised at the extent of their destructive capabilities… and the bulk of the left rolled over for his superb work on behalf of the elites.
Thus Obama gets another term. That this has already been decided is obvious in the utterly insane GOP campaign.
The GOP primary is now just a terror tactic deployed to frighten sane voters so that Obama will have no problem being reselected and then he will finish the work he's started.
Whoever wins, we lose.
The GOP will go along with the Grand Bargain if Obama caves to their demands regarding contraceptives and women’s health. And he will.
“The GOP primary is now just a terror tactic deployed to frighten sane voters so that Obama will have no problem being reselected and then he will finish the work he’s started.”
Exactly. I believe I said this, with a lot more words, on Friday. We are being pushed purposefully to Obama by those controlling the Republican mouthpiece.
On the other hand, I sincerely hope we do not look back, as those looking back on the fall of human decency are sometimes compelled to look back, at that moment when it was clear civilization was being swept once again into repression. Do the Afghans remember a day when they were teetering on the brink of being swept into the repression of the Taliban?
Beware it almost seems like the successful trail run of passing a budget that the public never had a chance to see in Washington State Senate is being run out for the big time in the US House.
“I don’t think we’re going to see any actual movement on this until after the election.”
I hope you are correct – but then a December sellout is still a sellout.
“the doc fix and the triggered cuts to discretionary and defense spending all expire at the end of the year”…
enough already with the reasons for the Obama sellout – he can just go MMT and find there is no reason to do anything.
Let the Clinton rates return for goodness sake and then pass new tax reduction laws – like the GOP will oppose those tax reductions? – Nope – will never happen. Will the GOP oppose military increases after the debt ceiling caused a few cuts – I doubt it.
Does anyone really believe the Democrats really need to bring gifts for the GOP in order to get a doc fix?
Democrats created Medicare/Social Security so it is on them to kill it. That ‘Party’ needs to go the way of the Whigs
And don’t forget Medicaid.
At least we have a choice: austerity, or if that doesn’t work, austerity.
it seems that Obama and the Dems cannot contain their jealousy over the gop’s most recent exercises to retain its title as the stupidest motherfuckers in the world – living or dead.
I guess the dems will declare victory when they dumb-it-down to the point where they overcome the autonomic protections of respiration and then forget to breath.
“The GOP primary is now just a terror tactic deployed to frighten sane voters so that Obama will have no problem being reselected and then he will finish the work he’s started.”
Brilliantly stated.
Obama is what Obama is. The true disgrace here is the “liberals” and “progressives” who have rolled over en masse for him.
People, Govt has promised more than it can deliver.
You can have a little austerity now, or like Greece a lot of austerity later.
Your choice.
After his re election(and I suspect he might eke through unless the GOP gets it act together) he’ll have this ready to go and he won’t care a bit that 80% of us will be gnashing our teeth about it.
Bite me.
They can cut their defense department budget if they want savings, they don’t get to steal and renege on social contracts like Social Security.
Bite me? That’s the best you have?
Heh.
Meanwhile back at the Supreme Court, it’s been determined you have no contract. Legally you aren’t entitled to diddly.
In my humble opinion, and with all due respect, what you said is really, really dumb, unless you are shilling for the .1% in their efforts to bring the poverty and dependency of the third world to developed countries.
Do we have a deficit problem? Yes. Will we have to deal with it? Yes. Is austerity the only way to deal with it? No. Should we further reduce government spending now? Hell no, we already have and unemployment is still out of control, destroying individual lives and the hopes and dreams of millions of people.
Please go read Paul Krugman, or any macro 101 text, or look carefully at the effects austerity has had on those countries that have instituted it already, or go spout your .1% dogma somewhere else.
I believe that what Shooter says is true (“You can have a little austerity now, or like Greece a lot of austerity later”), but not because of the reasons he says. Irrespective of what Democrats say, they’re behind austerity just like Republicans and along with that we get the illusion of democracy even down to the state/county/city level. Until recently I didn’t see how deep it went when before I just thought it was Federal Democrats, but with Jerry Brown here in California bringing austerity and along with that he’s shown the illusion of democracy. At the state level, Brown’s administration has gone after one of the members of our county community college board because that member has been opposed to austerity. It’s shown that the board is a sham since it’s really following orders from Sacramento rather than being an independent board representing the community.
Nope, he’s wrong. Everything you say is correct — the Democrats are on board the austerity train just as much as the Republicans — but there is a third choice. Default. Bankruptcy.
This is what Argentina did, and surprise! After some initial pain, their economy came roaring back. This is what Iceland did, and surprise! After some initial pain, their economy came roaring back.
We print our own currency. There’s no reason we can’t just print a lot more of it and pay off everyone’s debts. Of course, to get the political will to do that, we’d need to replace both the Republican and Democratic Parties with parties much further to the left.
Boy, wouldn’t all that be a shame. :-P
I agree with what you are saying, but I didn’t pick that up from Shooter.
Also see Iceland.
And Atrios:
“Great Evil
Mehdi Hasan: http://www.guardian.co.uk/commentisfree/2012/mar/04/unemployment-matters-more-gdp-inflation
How many more of Europe’s jobs will be sacrificed at the altar of deficit reduction? How many more lives ruined, families impoverished and communities destroyed in pursuit of growth-choking, job-killing, self-defeating austerity? It is unacceptable for governments to stand by as dole queues lengthen. Unemployment is not a price worth paying. Nor is it a price that has to be paid.
We can debate forever the stupid or evil question, but whatever the intentions of the various governments and powerful non-governmental actors, their actions are incredibly destructive. I’d lean a bit more toward stupid for many of them, as opposed to evil, if ever many of them could demonstrate a credible “feel your pain” moment. They don’t seem to care.”
Ignore the troll. It consistently and happily shills for the <1% and will continue to do so.
"Austerity"… as it is touted by the <1%… is a case of a little "austerity" now" bringing a whole lot of "austerity" later.
"Austerity" <1% style is a self-defeating paradigm in the midst of an economic downturn.