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Honey I shrunk my negotiating position in the deficit talks



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Cross posted from Matt Browner Hamlin's blog "Hold Fast":

Back when the austerity (I mean, fiscal responsibility) debate was starting, it was pointed out that the United Kingdom went with a 2:1 ratio of spending cuts to revenue increases. The result has been disastrous for the UK economy and painful to working people there.

When President Obama kicked off his push, he proposed a 3:1 cuts to revenue plan:
Balance Between Spending Cuts and Tax Reform: The President’s framework would seek a balanced approach to bringing down our deficit, with three dollars of spending cuts and interest savings for every one dollar from tax reform that contributes to deficit reduction. This is consistent with the bipartisan Fiscal Commission’s approach.
Amazingly with the GOP walking away from talks, we now find out that a devastating 5:1 ratio of spending cuts to revenue increases was not good enough for them. Ezra Klein reports:
A bit more information has trickled out over the last few days detailing the exact state of the budget negotiations when they collapsed. Both sides, as they often said, were shooting for about $2.4 trillion in deficit reduction over 10 years. They’d already agreed on around $1 trillion in spending cuts and were making good progress on the rest of it. But Democrats insisted that $400 billion — so, 17 percent — of the package be tax increases. And that’s when Republicans walked.
This is bat shit insane. I hope someone on the Democratic side is pointing it out…
So basically, the Republicans keep saying "no" and the White House keeps offering them more and more cuts to programs, and fewer and fewer tax increases, while the Republicans simply keep saying "no."

Heck of a negotiation. The White House is simply negotiating with itself at this point. Lowering its bid, lower and lower, while the GOP does nothing. Guaranteeing that any final deal that is reached starts at a point so low that we're screwed no matter what the details.

Now, I'm sure the White House thinks it's going to win the battle by showing the American people how earnest the President has been in these talks, while the Republicans have been intransigent.  Yeah, fat chance.  That is all a matter of spin.  And the White House folks, and Dems generally, don't spin very well.  They need to hire someone who does, and empower them to win, rather than tying their hands in a never-ending desire to be nice to people who want to destroy you.


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