Republican Senate Minority Leader Mitch McConnell (R-KY) said in a sparsely noticed comment made on one of those used-to-be-important Sunday morning news shows that the Congress with White House consent could raise the government’s borrowing limit for just a few months rather than striking some grand bargain.(aka deficit reduction) It would mean there would be most likely some minor adjustments here and there but no revisions of entitlement programs and no big tax increases. One thing I have come to greatly appreciate in the past 2 to 3 years is that when Mitch talks everyone should listen.
As everyone who has been paying attention knows, the Federal debt limit of some $14.2 trillion dollars was reached in May. The deadline has been extended somewhat through some creative accounting on the part of the U.S. Treasury. However, the game will be up in early August and unless Congress raises the limit, the Federal Government will not be able to increase its borrowing and could possibly default on its existing obligations. In other words, like millions of Americans, the government would be maxed out on its credits cards and unable to pay the rent.
The Vice President and a group of lawmakers have been trying to find a way to make a deal to cut the budget deficit. In exchange for some fiscal changes, a separate agreement to raise the government’s debt ceiling would be passed in Congress. Republicans have advocated large spending cuts, while Democrats have been pushing for modest and out-year (like after the election in 2016) spending cuts and large tax increases, particularly against the oil companies and high-income earners.
All of this brings us back to Senator McConnell. In my opinion, no one has recently demonstrated more political acumen and determination than the senior Senator from Kentucky. Since President Obama took office, Mitch McConnell has keep his meager band of Republicans together in the Senate on most issues and has used every tactic in the book to promote a conservative agenda and to thwart liberals whenever possible. His only lapse was at the end of last year when Democrats were quite successful in passing a number of last minute initiatives (including, ironically, the Bush tax cut extension).
I have been following the debt limitation process like it was the last quarter of the Super Bowl with one play left in a tied game. It has been and will continue to be clash of will and ideas. The outcome will determine the financial health of the country, growth of government, the level of taxation and ultimately the next election. For intrigue, politics and policy, it does not get any better in the political world. The lines have been drawn but now, the Senator is hinting of a delay, a few months of respite to continue negotiations. His message is--there is not enough time now and we can take it up in the fall. Now I understand the axiom of “good things come to those that wait” but I think the time is right for a showdown. What purpose would be served to wait? What new information will be forthcoming? Does anyone think the deficit will go away? I mean what have all these guys been doing? The Senate has hardly been even working. It did not pass a budget and most measures considered have been minor ones at best. Goodness knows, Biden does not have much to do and for the rest of them, get to work.
The placemats are on the table, the silverware is out, the timer is set, the meal is in the oven and the crowd is ready to dine. The Administration is not going to improve their offer in the fall or their attitude with more time to negotiate. Republicans are not going to be less insistent. Unless the wily Senator has a Machiavellian strategy, then get it done now. Settle the issue. Make the deal before the meal gets burnt. It is High Noon, get out in the street and face down your adversary. Get the big boys together, get serious, lock the door and duke it out. No need to delay the inevitable but, of course, unless Senator McConnell has a better outcome in mind but is not sharing it.