Don’t write the Republicans off as totally crazy. They know that if Obamacare works, it will wreck chances for attaining their real goal—lowering taxes on the rich, wiping out regulations and widening even more the gap between the very rich and everyone else.
That is why they and their business allies are fighting so hard against the Affordable Care Act and threatening to bring the federal government to a halt. If the Republicans lose on Obamacare, it will be nearly impossible for them to shrink government the way they’ve been dreaming.
Keep these goals in mind while watching the antics of the right’s new idol, Sen. Ted Cruz, and his followers. The tea party fanatics, now glorying in publicity, are merely business’ foot soldiers in the battle....As always, "Follow the money."
If the Affordable Care Act works, its success will tilt the balance in favor of government-aided health care—and clear the way for eventual approval of the best solution: a single payer system, Medicare for all.But if the Republicans win, succeeding in dismantling Obamacare or even forcing a year’s delay, the cause of an activist government will be dealt a blow that will be felt for generations. That will strengthen the GOP for the 2014 congressional elections and 2016 presidential race.Then they can move onto the next step that was so clearly outlined in their last presidential campaign and their infamous Paul Ryan budget—reducing taxes for the rich and further dismantling the safety net and regulatory structure that provide us at least minimal protection.
Truthdig
The Reason Republicans Were Willing to Shut It Down
Bill Boyarsky
2 comments:
"They know that if Obamacare works, it will wreck chances for attaining their real goal—lowering taxes on the rich, wiping out regulations and widening even more the gap between the very rich and everyone else."
This comment is a bunch of crap. Maybe all the Republicans should just be arrested and herded off to re-education camps?
Aside from that, my take on the government shutdown is that will be short lived and is just a dress rehearsal for the debt ceiling showdown. Failure of Congress and the White House to make a deal on the debt ceiling does not mean default. More likely it means the economy relapses back into recession.
US GDP is growing at an annual rate of about 2.5%. US federal spending weighs in at roughly 23% of GDP. If the debt ceiling is not raised, the government will have no choice but to go COLD TURKEY to a balanced budget by cutting 18 cents out of every dollar it currently spends.
Slashing 18% from the federal budget would bring US federal spending down to roughly 19% of GDP, (1946-2008 average at 19.6%), and by extension cut GDP annual growth rate from a positive +2.5% to a negative -1.5% in a New York minute.
The only way this scenario could avoid triggering another recession would be if private sector credit expanded enough to fill the vacuum and make up the difference. According to MMT, as public sector borrowing goes down, private sector borrowing must go up. The question is whether the private sector in aggregate has de-leveraged enough since 2008 to reignite the animal spirits to go out on a borrowing spree.
Well, for now, the Republicans have the polling on their side-- Obamacare is quite unpopular with a majority of the plebs. It's easily the most polarizing piece of legislation in the past 100 years. Even more so than the Civil Rights Act. It came into law 100% along party lines. That's not sustainable. Thus, my sense is that by this time next year the sentiment will be pretty much where it is today.
To my mind a 20,000 page piece of legislation is an affront to right reason. My guess is that when all is said and done, Obamacare will be unrecognizable from what it looks like now. That doesn't mean single payer is on the horizon either. It will be a cold day in Hell before that manifests itself here in the USA. Too many jobs would go in the toilet, which isn't politically feasible with a divided electorate.
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