I’m guessing the reason lawmakers have not been able to come together on fiscal cliff negotiations is that even though a majority of people in the United States might want to avert the drastic measures of automatic spending cuts and raised taxes for all, all politics is local.
Each individual legislator plays to his constituents, or more to the point, he or she plays to the powers that be who help in the campaign or who have the power to excerpt pressure. Since campaigns are more about raising money than directly appealing to the masses this is what we get — gridlock on the issues.
The Republican Party used to be comfortable in being conservative and pro business interests but now is deeply divided, adding to the paralysis on the fiscal cliff issue.
(I think the current division is an outgrowth of the GOP’s program of appealing the ignorant, the bigoted, and narrow-minded interests, all in the name of simply getting votes. The program worked well in the beginning because it did get votes but now the party has reaped the whirlwind.)
Also this all may be a game of poker. The Republicans who are holding out may be bluffing. Well I guess that is a given.
And this may not be such a good metaphor but maybe at the last minute, New Year’s Eve, both sides will fold — realizing they both have a losing hand. Another stop-gap measure to kick the can down the road for someone else to deal with.
(You will recall the automatic spending cuts and tax hikes were enacted in legislation that was a result of a stalemate in budget talks that produced a lowered credit rating for the federal government, and since our government operates on borrowed money, the credit rating is crucial for survival.)
With Obama’s fairly decisive re-election victory (electoral college wise especially) it would seem he and his party, the Democrats, have the better hand.
In my posts on the subject of the fiscal cliff I have been critical of both sides. My idea is that we all have to share in getting our nation’s fiscal house in order (to the extent that such is possible), rather than do it by a class basis (the Democrats have wanted to spare the pain for the middle class and the Republicans have refused to raise taxes on the rich — although the GOP is now divided on that).
So what happens if the New Year begins with no agreement and then the automatic spending cuts, which fund social programs and lucrative government contracts for business, and the raising of taxes on virtually everyone goes into effect? As I said in my last post on the subject, maybe then there will be enough pressure from the public or from those who legislators listen to in order for something to give. So falling over the cliff may resolve the problem. I certainly do not know.
HAPPY NEW YEAR to come!