In reference to this and this, I think I’ve been less clear than I could have been about how I think Obama and his team should proceed.
For the sake of discussion, let’s take as written the Ezra Klein 83:17 cuts:revenue breakdown. The GOP wanted 85:15 in March, got offered 83:17 (plus a lot of exactly-what type details) in June and walked out. This is their choice. But there has to be a price for that choice.
Since there’s no deal, we’re going to take the GOP’s advice and just pay the interest on the debt. Seems like our only choice, thanks to the GOP’s intransigence re: corporate jet tax breaks and such. So we start by telling seniors to be ready not to receive their Social Security checks in August; if this troubles them, they should call their Congressional representatives. Medicare providers will not be compensated for the foreseeable future; they will receive IOUs in lieu of payment as of August 1. Is this going to be a problem for you? Call the Congress. We tell Wall Street they’d best to do like Cantor and get out of Treasuries.
And, we make clear that the deal, as of right now and for a limited time only is going to be 80:20. Take it or leave it. But if you do leave it, on July 1 it becomes 70:30. July 15th it is 50:50. Want to see where we go on August 1?
Once the GOP actually starts losing things when they pull the old football away, they will stop using the tactic. And until they do start paying a price for it, they’d be foolish not to use the tactic. So far it’s gotten them everything they want and hung blame on the Democrat. That needs to stop. So: you make your case, you state the stakes in clear and unmistakeable language, and then you set the timeline for agreement. Take it or leave it.
Lemkin 