President Barack Obama pledged to cut the deficit in half by the end of his first term. But because he focused on political gimmicks, rather than real reform, we’ve seen trillion-dollar deficits and nearly $6 trillion added to the debt instead. Based on what we heard from the president at a news conference Tuesday, his unserious attitude is likely to continue.
The Great Debate
As the 112th Congress came to a close last year, bipartisanship made a rare showing. The U.S. inched its way up to the fiscal cliff, but Congress voted to yank the country back, with 85 House Republicans voting not to reinstate the Bush tax cuts for individuals who earn more than $400,000. It was a rare moment of bipartisanship, however begrudging, for a Congress that has steadily become more polarized in the past 30 years.
2012 was the first class-warfare election of our new Gilded Age. The first since the middle class has come to understand, in the words of new Senator-elect Elizabeth Warren (D-Mass.), that the “rules are rigged against it.” Business-as-usual may no longer be acceptable.
We are careening toward Dec. 21, 2012, the date of the Mayan apocalypse, when the world is supposed to come to an end through a series of cataclysmic upheavals, according to assorted astrologers and mystics ‑ though not the Mayans themselves, who said it was merely the end of their calendar. We are also hurtling toward the Jan. 1 “fiscal cliff,” when the American economy could re-enter a devastating recession ‑ a man-made mini-apocalypse.
Technology is changing how power struggles are waged between the White House and Congress. For the last few years, negotiations between Democratic and Republican leaders have too often led to stalemate. The battle over how to avert the “fiscal cliff” is the latest example.
The conventional wisdom has arrived: 2012 was a status quo election. President Barack Obama was reelected. Democrats continue to have a majority in the Senate. Republicans still control the House. Only two states changed their presidential votes from 2008 to 2012 (North Carolina and Indiana). Six billion dollars were spent and almost nothing changed!
After the sound and the fury, the public disdain for government — particularly for Congress — the high stakes and looming fiscal disaster and $6 billion, we end up where we began — with Barack Obama in the White House, Democrats with a modest majority in the Senate, and Republicans retaining control of the House.
The state of the union, fiscally speaking, is perilous. Despite record deficits and dire warnings from Europe as to the consequences of sustained fiscal imbalance, our leaders have been unable to find common ground. The Simpson-Bowles Commission in 2010, the Gang of Six last summer and the misnamed Super Committee of this past fall were all bipartisan efforts to cut through the Gordian knot of budgetary gridlock. And all of them failed. Miserably.