Obama Brokers 'Lousy' Fiscal Deal in DC to Usher in the New Year

[Karmadillo]

http://www.commondreams.org/headline/2013/01/01

Published on Tuesday, January 1, 2013 by Common Dreams
Obama Brokers 'Lousy' Fiscal Deal in DC to Usher in the New Year
House will take up bill later on Tuesday
- Jon Queally, staff writer

Despite loud warnings from many quarters that 'no deal, was better than a bad deal' the US Senate passed a fiscal agreement two hours after midnight in order to meet a self-imposed deficit deal deadline masquerading as a financial crisis.

Barack Obama speaking during a press conference on New Year's Eve. Later, he called the Senate passage of the bill a victory. Progressives had a different view, calling it a 'lousy deal' and excoriating the president for his negotiating habits. (Photograph: Rex Features) With bipartisanship evidenced in the 89-8 vote, the agreement was interpreted as a "lousy one" by economist Robert Reich, who had been among those publicly advising Senate Democrats and President Obama to avoid making unnecessary concessions to Republicans in a fight that was contrived to protect the nation's wealthiest from tax increases in the New Year.

Nobel economist and New York Times columnist Paul Krugman—who spent much of New Year's Eve excoriating President Obama for the direction of developments and calling him the 'world's worst poker player'—argues the deal is less bad than it could have been (given the Obama's earlier willingness to concede much in terms of cuts to social programs), but said the real problem with the deal was the path taken to achieve it.

"<Obama> kept drawing lines in the sand, then erasing them and retreating to a new position," said Krugman in response to the Senate deal. "And his evident desire to have a deal before hitting the essentially innocuous fiscal cliff bodes very badly for the confrontation looming in a few weeks over the debt ceiling."

Enumerating the negative aspects of the deal, Reich explains:

more...

[dennis4868]

1. Yes...

extending unemployment benefits for millions is a "lousy" deal....WTF?

[ProSense]

2. Actually,

it was a really good deal.

On second thought: This bill includes no spending cuts.
http://www.democraticunderground.com/10022109603

[MineralMan]

3. What do YOU think, karmadillo?

It's nice of you to post something from commondreams, but you must have an opinion, too. It's easy to predict what will come from commondreams.

[Karmadillo]

4. It's easy to predict what will come from me, too. I

pretty much agree with the criticisms expressed in the article. It would be interesting to see those points addressed and their weaknesses, if any, exposed. Simply saying "it's easy to predict what will come from commondreams" (thoughtful dissenting commentary in a world that encourges group think?) doesn't seem the kind of comment you seem to be expecting from me.

[MineralMan]

5. Its not that, really, Karmadillo...

I'd just like to see your own thinking from time to time on DU, rather than just quoted excerpts. I know you read a lot of political commentary, and that you can write pretty well for your own self.

[Karmadillo]

7. Well, not to drag this out, but

I've done exactly what you've suggested from time to time.

[bemildred]

6. OK, I read it (quickly).

I don't really disagree with the points made, but I would say in response two things:

1.) It's a start, it goes in the right direction, not the wrong one, the President clearly outmaneuvered the Republicans, look at who is pissed off and who is happy today.

2.) The President has the same club in his hand today (the sequester) that he did yesterday, and I expect that he will extract further concessions from the Republicans with it until they get a clue.