Deadlines spur action. Senate leaders on Wednesday struck an
11th hour deal to end the stalemate in Washington. (You
can read the entire 35 page deal here.) The Senate voted 81-18 on Wednesday
evening to a deal that would end the 16 day government shutdown and allow the
government to borrow more money just 24 hours before the debt ceiling was going
to be reached. The House also approved the legislation late Wednesday night.
The Senate plan funds federal agencies at current spending
levels though January 15th and extends the nation’s borrowing
authority through February 7th. A negotiating committee would be
charged with creating plans for longer-term fiscal solutions.
I also found these nuggets picking through the bill: furloughed
workers get back pay, a former Senator’s widow will get $175,000, and Senate
minority leader Mitch McConnell’s home state of Kentucky will get $3 Billion
for a dam.
Senate Majority Leader Harry Read said the agreement, “will
provide our economy with the stability it desperately needs.” Given the
uncertainty of the U.S. credit, markets have been down over the last couple
weeks hurting small businesses and investors. Markets rebounded strongly today
on news of the impending agreement.
Speaker Boehner signaled the party hasn’t given up on its
crusade against the Affordable Care Act, which was the largest sticking point
in negotiations on a budget deal. He also articulated that Republicans will
continue to fight for additional spending cuts and against tax increases.
House
Republicans tried and failed to pass a proposal to end the impasse on Tuesday,
but were blocked by Tea Party members. The Senate deal is very similar, but has
acceptance from all sides. The Senate deal reflects Republican capitulation, as
almost none of the policy gains they had sought were included in the bill. The
only “win” for Republicans was the setting of new procedures to verify the
incomes of some people receiving government subsidies for health insurance
costs. Speaker Boehner may not have won much, but he did keep his word that he
would not let the nation default on its debts.
Republican Tea Party members may be patting themselves on
the back for standing up for what they believe in and setting in motion the
events that led to the government shutdown. They were seeking a repeal of
Obamacare and an agreement for significant spending reduction measures. They
repeatedly blocked bipartisan bills that would have ended the government
shutdown and used the gravity of a potential default to illustrate their
opposition to the Affordable Care Act.
The Tea Party certainly made the point they despise the Affordable
Care Act, but was it worth it? Speaker Boehner said, We fought the good fight,
we just didn’t win.” The term “good” is not appropriate to describe any part of
this fight.
How could it be? In addition to the very real effects
the shutdown had an Americans detailed in this post from last week, four
deaths at U.S. coal facilities are being attributed to furloughed government
inspectors. What did the Tea Party win in the debate? Revised income
checking procedures. Was that worth the furloughed workers, nearly a 1.5% drop
in the Dow, almost 2% drop in the Nasdaq, and god knows what viruses are on the
loose without the CDC working?
Those who place blame solely on the GOP are missing the
larger issue. Both sides fought for what they wanted, the Democrats
were just less likely to cave given their leverage. President Obama had the
power to make small concessions like repealing the medical device tax that
would have led to a rapid resolution of the standoff by allowing the
Republicans to save face. Unfortunately Democrat leaders couldn’t close a deal
with an inept foe. To be clear, both sides are culpable for the hardship this
standoff put on Americans.
The issues of the debt ceiling and budget deficit are not
gone. They have merely been pushed down the road until January 15th
and February 7th. Without rational conversation, the leaders in government
are primed to go through this same situation again in three months time using
the possibility of default as a bargaining chip.
President Obama said in a statement Wednesday evening, “Now
we have an opportunity to focus on a sensible budget that is response, that is
fair, that helps hardworking people all across this country.” He went on to
say, “We’ve got to get out of the habit of governing by crisis.” That is very
true Mr. President. If you’re the leader who can effect that change, history
will remember you with exceptional fondness and gratitude.