IE Business Daily Business news for the Inland Empire.
The recent federal budget passed by the House of Representatives is a mixed bag for both parties. The budget proposed by Democrat Senator Patti Murray and Republican House member Paul Ryan certainly avoids the potential for another government shutdown as occurred in October. It also reduces the size of the meat cleaver cuts contained in the sequestration that began in 2013 which also promised further spending cuts in 2014 and 2015.
Assuming this budget passes the Senate (which is not a done deal) they will have achieved a budget. Both sides did give up much. Democrats gave up their demand for the continuation of extended unemployment benefits while Republicans are giving up spending cuts and agreeing to increases in fees and an overall increase of the discretionary budget by $40 Billion.
But please don’t mistake this temporary bipartisanship for a “Come to Jesus” moment. This budget deal is really about one thing. It isn’t about deficit reduction or balancing the wildly out of control spending in Washington D.C. It also isn’t about “investing” in America or expanding social programs. This budget is the sole product of political calculation for a temporary truce, a truce that will last through the election cycle of 2014. Both Democrats and Republicans are choosing to avoid a messy protracted budget fight with month to month showdowns, hopeful that they can instead run election campaigns on issues they feel will be favorable to their side.
So who wins?
Democrats successfully pinned the blame of the October shutdown on Republicans, causing Republicans to lose significant ground in polls. The shutdown also heavily obscured the disastrous rollout of Obamacare. When the shutdown ended, the Obamacare rollout became the main story for weeks completely reversing the polls and giving Republicans a significant advantage. President Obama’s approval rating is the lowest of his Presidency.
Republicans are hoping to avoid another self-inflicted wound by passing this budget, flawed as it is. This will allow them to focus on policies they believe will recreate another sweep like 2010 where the passage of Obamacare swept Republicans into the House majority. The continuing disaster of Obamcare isn’t the result of a flawed website. It will continue to manifest itself through October of next year as individuals discover they are paying more for reduced coverage and as millions more healthcare policies are cancelled.
So what do Democrat’s gain? They didn’t rescue unemployment extensions? Perhaps, they were willing to pass a budget that significantly reduced the sequestration and are hoping that Obamacare will rebound in the minds of voters by November?
I hate to quote Nancy Pelosi, but this one is very fitting for Democrat prospects next November. It’s time for Democrats to “Embrace the Suck” that they are 11 months from truly experiencing.
