How To Negotiate A Clean Increase In the Debt Ceiling
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Fri Apr 22, 2011 at 11:28:27 AM EST

Ezra Klein writes:

So in 1978, Dick Gephardt quite sensibly tied the debt ceiling to the budget: Once Congress decided how much we were going to tax, spend and borrow, the Treasury Department was authorized to carry out those instructions. In 1995, House Republicans wanted leverage over President Bill Clinton, so they brought the debt ceiling back. It’s easier to get people to listen to you if you threaten to destroy their credit rating if they don’t. And now, in 2011, they’re doing it again.

Indeed they are. Here is how Clinton handled their threats in 1995:

Clinton Vetoes Borrowing Bill -- Government Shutdown Nears As Rhetoric Continues To Roil

WASHINGTON - With the clock ticking toward a midnight shutdown, President Clinton vetoed a temporary borrowing bill today and prepared to close most government operations in a jolting political fight with Congress. [. . .] "This is not the time or the place for them to backdoor their budget proposals," [Clinton] said.

After raising taxes on the rich in 1993 and standing up to the GOP on the debt ceiling in 1995, President Clinton won reelection in 1996 in a landslide.

Speaking for me only


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How To Negotiate A Clean Increase In the Debt Ceiling | 15 comments (15 topical, 0 hidden)
Obama should demand (5.00 / 1)
that the debt ceiling be completely eliminated, not merely raised. Its only purpose today is as a GOP bargaining chip. It has no economic purpose whatsoever.

by Warren Terrer on Fri Apr 22, 2011 at 11:50:30 AM EST

But Obama's rubber bracelet reads WWRD (5.00 / 1)
What Would Reagan Do.

Clinton just wasn't "transformational" enough on tax policy, man. Don't you get it?

Sigh.

by Dadler on Fri Apr 22, 2011 at 11:52:00 AM EST


First, they would have to want (5.00 / 2)
a clean bill, and not be using the debt ceiling limit as a reason to further their completely ass-backwards austerity agenda.

Does Obama really want a clean bill?  If so, wouldn't this be one of those times when he should exercise his considerable power and show some leadership to get the Democratic caucus in line - especially considering that Geithner has been saying that the GOP has already assured him that they will vote to increase the limit?

The Dems don't have to negotiate anything; they could just refuse to pass anything but a clean bill.

But they won't, because too many of them - and I suspect Obama's call for one is just posturing - want to use it as another opportunity to cut more and cut deeper.

They will own whatever happens.

by Anne on Fri Apr 22, 2011 at 11:54:54 AM EST

It's part of the Democratic DNA (none / 0)
to always have to give up something in exchange for something, no matter how pitiful, and then call it a win. A 'clean bill' means not having to give up anything, so Obama will instinctively disdain that approach.

by Warren Terrer on Fri Apr 22, 2011 at 12:16:51 PM EST
Parent
If it's part of the Democratic DNA (5.00 / 1)
...it's a mutation.  Didn't used to be that way.  

But it explains why I don't feel related to the existing Party.

by sj on Fri Apr 22, 2011 at 01:47:41 PM EST
Parent

Thank you. This is not in the Dem DNA (5.00 / 2)
that traces back many decades.  This is the Nu Dem DNA mutation for the Nu Century.  We must be clear about that, if ever Real Dems are to regain a party.

If not, then this is the Independent DNA.  I'm fine with that as a voter.  But a candidate running as a Dem might want to pay attention.

by Towanda on Fri Apr 22, 2011 at 05:46:04 PM EST
Parent




My thinking too (none / 0)
Obama doesn't want a clean bill.  He wants austerity measures too, and the Republicans will allow him to hide behind them.  I don't care much for any of the economic policy Obama has given us, but I do find it funny how good he is getting at using the Republicans for cover.  

by Militarytracy on Sat Apr 23, 2011 at 01:41:24 AM EST
Parent


You can rearrange the letters in Ezra Klein... (5.00 / 1)
...and make "Like a Zen R."

When you leave out Clinton's response to R tactics, or what resulted from them, you reveal yourself to ultimately be a parrot.

Just like when Obama was spouting the right-wing canards about FDR and the Depression.  Very comfortable being a caged charlatan.

by Dadler on Fri Apr 22, 2011 at 12:03:50 PM EST


All he has to say (none / 0)
is something like "Congress need to send me a clean bill I can sign without delay."

by andgarden on Fri Apr 22, 2011 at 11:43:32 AM EST
That would be nice (none / 0)
but it seems he has already agreed with Boehner.

Obama told the AP without doubt: "We will raise the debt limit. We always have. We will do it again."

He warned that anything less would undermine the solvency of the government, roil financial markets and potentially "plunge the world economy back into a recession." Yet when pressed on how the stalemate with House Speaker John Boehner would end, Obama said: "I think he's absolutely right that it's not going to happen without some spending cuts."



by MO Blue on Fri Apr 22, 2011 at 11:54:37 AM EST
Parent


Was that the main reason... (none / 0)
Clinton won in a landslide?  Or was it the dirt cheap gas?  Internet stock gambles paying off big time for Americans?  Bob "ZZZZZ" Dole?

Point being the average voter probably doesn't really know or care about that wonkish stuff...if gas is cheap and things are going pretty well for them economically, they'll be more likely to support an incumbent. Now if gas is 4 bucks a gallon and you just got laid off, ya gotta blame somebody...and that somebody is the president, right or wrong.

Obama could cure cancer...it won't matter if gas is 4 bucks a gallon and the job market still sucks and wages are still stagnant. And vice versa, Clinton coulda folded like a cheap suit back in '95 and still won in a landslide...because gas was cheap and everybody was giddy setting up their AOL accounts.

by kdog on Fri Apr 22, 2011 at 11:53:17 AM EST

Why did those things happen? (5.00 / 2)
you act as if Clinton;s policies had nothing to do with it.

Maybe so, but Presidents get the credit or the blame.

In any event, more reason to do what's right then.

by Big Tent Democrat on Fri Apr 22, 2011 at 12:00:52 PM EST
Parent



63% of people (none / 0)
oppose raising the debt ceiling!  Give the people what they want!!!  CBS

by lilburro on Fri Apr 22, 2011 at 12:55:37 PM EST
63% of the American people (5.00 / 2)
don't understand economics.

But that's not a big deal given that close to 100% of the economics profession don't understand it either.

by Warren Terrer on Fri Apr 22, 2011 at 03:57:57 PM EST
Parent


Yup (none / 0)
That's a scary number, if only that it shows the extent to which GOP misinformation has permeated the public consciousness.

Basically I think any poll of the American people needs to be contextualized by the fact ("fact") that if you asked the American people if they think Congress should shut up and go away almost 100% would say yes.  Of course this is not a mandate for dispensing with our system of government.  Americans just have no patience for politicians.  Most of the time whoever shouts the loudest will win.

by lilburro on Fri Apr 22, 2011 at 04:07:03 PM EST
Parent



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