You know you're in trouble when Nancy Pelosi says you now "see the light", as she said of Republicans in an interview Thursday.
Asked if the GOP would buckle, Pelosi said, “I wouldn’t say buckle. See the light might be a better term.”
Yikes! And to add insult to injury, the Democrats not only expect Republicans to cave on taxes in the Fiscal Cliff negotiations, they are demanding a massive new stimulus package! The fact that Republicans have not just walked away from the table on this is outrageous.
Democrats feel emboldened by Obama's win, the increase in Republican Governors and a strong Republican hold on the house, being cleverly ignored. There has been a lot of discussion on blogs and Twitter about the ramifications in the next election cycle if Republicans don't hold firm on taxes and spending cuts. If only that were true. When have Republicans ever really had their feet held to the fire when they have voted against conservative fiscal principles? We keep electing the same wishy-washy bunch over and over again. We should be demanding accountability for the decisions they make in the name of "bipartisanship".
Grover Norquist was on the right track with the tax pledge, but he did not go far enough - we need a similar pledge on spending - and we need to follow up at the fundraising dinners and voting booth to hold responsible those who choose to renege.
A fiscal stimulus package is the gift that keeps on giving! It provides 1) a temporary bump in GDP 2) an equivalent drop in GDP when it's over and 3) a further drop in GDP later as it's paid for by higher taxes or by increasing the debt. That's why the Congressional Budget Office warned that the Obama stimulus would hurt the economy in the long run. It is essentially a parachute adding drag to an already labored system. The greater the stimulus, the greater the effects - both positive and negative - with the negative effects outweighing the positive. The effect is magnified when stimulus money goes outside of the American economy to other countries as much of the Obama stimulus did; we get a smaller bump but still pay the full boat.
Are we so willing to close our eyes to the fate of other big spending countries, or is it selfishness and the growing "what's in it for me" culture? I think about the future impacts of today's runaway spending and wonder of we're going to follow in Greece's footsteps with unemployment over 25% and people rioting in the streets as the government imposes unavoidable austerity measures? Unless we get spending under control to the point where we can actually cut the debt, we are well along that road.
