Monday, June 16, 2014

How GOP Opposition to Everything Obama is a Victory for Liberals & Big Business

Republican refusal to cooperate with the Democrats has prevented progress on the Grand Bargain budget deal, otherwise known as Simpson-Bowles.  A sensible plan to use some modest revenue increases combined with some sensible cuts in expenditures to provide the backdrop for some changes in social security and medicare that would put both entitlement programs closer to a path of long term stability; which they are not on now.

Addressing entitlements now is a lower cost solution than doing it some unknown time in the future.

How is this creating a victory for Liberals?  As Paul Krugman stated today, he thinks Simpson-Bowles is a bad deal and unnecessary.  He believes economic growth will fix entitlements and only sees the hurt fixes today will cause lower income retirees:  AARP's position as well.  Obama supports Simpson-Bowles but the Grover Norquist/Koch Brothers/Tea Party GOP cannot support a compromise to pass Simpson-Bowles.  So this inaction is a victory for liberals.

Link to Krugman column

David Camp (retiring GOP Congressman from Michigan) and President Obama both like the idea of comprehensive tax reform which would address the numerous tax loopholes that allow Big Business and Private Equity/Hedge Fund managers to avoid paying a fair % of income in taxes.  The revenue from closing these loopholes would allow the U.S. to reduce the corporate tax rate to a global level and reduce some personal income tax rates.  The net effect would be to encourage global companies to locate more operations in the U.S. increasing job creation domestically.  But the Grover Norquist/Koch Brothers/Tea Party oppose this too, probably because the 1st two are creatures of Big Business and they provide the $ that the Tea Party uses to run campaigns.

This is not a victory for liberals, but it also doesn't seem like a victory what I think the Tea Party stands for; which is anti Big Banks & other Big Businesses.  It also prevents any rational debate over the future of Fannie Mae and Freddie Mac, which is a victory for their supporters; another anathema for conservatives.

So basically, other than the benefits for Big Business, all this GOP opposition to everything Obama is a victory for liberals and supports of the GSE's.

I guess the inability to see consequences of their actions is more widespread within the GOP than just the Neo-Con military wing.


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