What we have in Washington is a Democratic administration and a Republican-led Congress that are both using their political savvy purely for political reasons. They are playing chicken between two things that have not been known to help the US economy to get back on track, let alone a recession like the one we are dealing with now.
Rep. Paul Ryan and other Republicans plan to cut about $500 billion from Medicare over the next decade through privatization of this service and the Obama administration and progressives’ plan involves some kind of tax revenue. The administration would most likely raise the taxes on those who make more than $250,000 which would help raise revenue for the wealthiest of Americans (whom can afford it), but would inadvertently hurt the people who support the backbone of the economy: small businesses and the middle-class/consumer class. Small businesses support local economies and the consumer class supports well… the whole economy.
The cuts the Republicans in Congress want would take money away from consumers who would spend our way to a recovery and the Democrats’ proposal for tax increases would hinder investment and would lead to large corporations and the wealthiest Americans hoarding their money. Bill Clinton and Politico’s Bill Schneider think we should stall all negotiations until we are out of this economy and back on our feet because both parties’ ideas won’t stimulate businesses or consumers, both vital for an economic recovery.
It is interesting however to understand everything that is going on in these negotiations, especially with the Obama administration as they have the upper hand in this deal. If the budget talks do stall, the executive branch has the power to choose what programs get funded or not. So why is Obama and his administration making it seem like they are being held hostage by the Republicans?