Congressional Republicans are continuing to throw roadblock after roadblock in the path of a possible debt ceiling agreement, and as the deadline gets closer, they are becoming more outspoken about it. Many House freshman have doubled down on their disbelief of the White House's August 2nd default date, with some, like Illinois Rep. Joe Walsh, strongly asserting that the treasury has more than enough money to service its debt and pay for major government programs.
Others, like Congressman Mo Brooks of Alabama, have expressed utter surprise that credit rating agencies like Moody's have placed US treasury bonds on downgrade watch. Brooks actually wondered out loud why our credit rating may potentially be downgraded:
“There should be no default on August 2,” Brooks said. “In fact, our credit rating should be improved by not raising the debt ceiling.”
It is astonishing that these congressman, with absolutely no background in basic economic issues (let along something as complex and potentially catastrophic as raising the debt ceiling) are able to stand up on the House floor and unequivocally claim that President Obama pandering without a real solution for deficit reduction. Furthermore, Republicans are claiming that he is creating mass hysteria and uncertainty in the marketplace.
This comment has been the go-to for congressional republicans and conservative commentators alike. It all started with healthcare, when those opposed expressed concern that the new healthcare law would create grave uncertainty in the marketplace and would lead to major job loss and confusion among business owners. Now, this talking point has been revamped for the new fight, the fight over whether or not to raise the debt ceiling.
But it's not President Obama who is creating the uncertainty. No, if Republicans want to point fingers at those who are causing turmoil in the marketplace, they needn't do anything but turn those fingers on themselves.
Republicans have spent the better part of July complaining about the President's handling of the debt ceiling discussion, claiming that he's adding to economic uncertainty, that he's out of touch, and that Americans cannot afford tax raises (despite the fact that they would only affect the top 1% of earners and major corporations like big oil). But this claim by Republicans only serves to act as a self-fulfilling prophecy.
By spending the majority of their time in Congress bickering about the President instead of actually attempting to reach a compromise, congressional republicans are actually the ones to blame for increasing uncertainty. To put it another way: By attempting to create artificial "economic uncertainty" by focusing on it nonstop as opposed to actually sitting down at the table and hammering out a deal, House republicans are only making the problem that much worse.
Both sides have spent plenty of time bickering, but the time for partisan hackery is over. I don't know how to stress the importance of the situation we now find ourselves in. Congress is more divided than it has been in decades, a radical freshman class in the House refuses to do anything that could help the President score anything that could be construed as a victory, and the US Treasury is stressing that if we do not raise the debt ceiling by August 2nd, the country is at major risk of default.
This is a dire situation, but unfortunately House republicans would rather play politics in hopes of derailing the President's re-election campaign.
It's time we hold our politicians accountable for what they're really doing: fanning the flames of partisanship and deliberately creating artificial, economic uncertainty.
President Obama has stressed that deficit reduction must be a shared sacrifice. He has offered to accept trillions of dollars in spending cuts, raise the medicare enrollment age, and cut funding to Social Security. In return Obama has asked for top tier tax rates to return to Clinton-era levels and the elimination of a half-dozen loopholes that would not in any way, shape, or form affect middle class workers (like subsidies for corporate jets, big oil, and the timber industry), which would result in revenue increases of only a few hundred million dollars (compared to the $3 trillion in cuts that the President conceded to Republicans in Congress). And what have Republicans, who rode into Washington on a wave of promises to "cut spending" and "restore America's fiscal responsibility," promised to sacrifice? Nothing. Absolutely nothing. After getting the trillions of dollars in cuts that they asked for, and being offered cuts in medicare that they wanted from President Obama, they refuse to compromise at all. No taxes, no negotiations, their way or the highway.
If Republicans want to blame someone for fear-mongering, mishandling debt ceiling negotiations, and creating uncertainty in the marketplace, it's time that they face facts and take a look in the mirror.
