Why Obama folded?

by Marathadi-Saamiyaar Wed Aug 03, 2011 7:18 am

He was opposed to essentially to the same plan when Mcconnell proposed it. In the end pretty much agreed to the same plan (minus the 3 congress approvals) with a bipartisan panel + automatic cuts in case of a logjam.

The reason, I think, is political as always. He must have thought the dems and his constituencies will never ditch him in 2012 (as they did in 2010). His promise to include revenue generation in Phase II is an olive branch for his former supporters. He figured that his array of opponents dont have anyone of stature/standing to beat him. Expects the tea Partiers to ruin the party for the GOP substantially in the primary to yield a powerful opponent (he may be wrong in that). And, he probably thinks by his grandstanding till now has made GOP congressmen look bad as also the Tea Partiers, as people might look at him and Dems as willing to come half way and sacrifice and it is all the GOP that is at fault - or so he may be thinking.

My guess is that the hard bargaining will end up in cutting more for education, healthcare, uneployment etc.etc. as NO ONE would dare cut SS, Medicare, or Military (military industrial production/procurement may be cut/postponed). This will in turn hurt the state and county govts. - expect rising real taxes.

by indophile Wed Aug 03, 2011 8:34 am

This will in turn hurt the state and county govts. - expect rising real taxes.

I agree with the first part. Counties and states are already hurting (By law they cannot engage in deficit financing). But real estate taxes may not be their panacea. There is a lot of push back on that with the property values (real as well as assessed values) going down down down even in relatively less hurting counties. Then there is always an item on property tax rates every election.

Around here, local govt's are raking in oodles of money by strict enforcement of traffic laws (mostly through cameras). You go 5 mph above the speed limit, you get a $40 ticket. Don't come to a complete stop at a stop sign - $100, etc. etc. Don't know how long this will last.

by charvaka Wed Aug 03, 2011 4:35 pm

Marathadi-Saamiyaar wrote:He was opposed to essentially to the same plan when Mcconnell proposed it. In the end pretty much agreed to the same plan (minus the 3 congress approvals) with a bipartisan panel + automatic cuts in case of a logjam.

I disagree. He was ready to take the original McConnell plan. But once McConnell proposed it, he got a lot of heat from the Tea Party. They basically called him a RINO and suggested the plan was giving Obama too much authority. House Tea Partiers made it clear they would never vote for it. That is how that plan died.

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