GOP's Risky Political Debt Gamble

by John M. Curtis
(310) 204-8700

Copyright July 13, 2011
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         What looks like a deadly game of chicken with the U.S. economy, President Barack Obama and Congressional Republicans are in a political battle on the debt ceiling with the GOP hoping to damage the president before the 2012 elections.  When Sen. Jim DeMint (R-S.C.) fought Obama tooth-and-nail on health care in 2010, he admitted it was to land a political knockout punch.  If Barack’s health care plan passed, so goes the GOP logic, the president would be handed a great political victory.  Defeating his signature legislation would cripple his chance of reelection.  Now that his re-election bid is only months away, the GOP has rallied the base pretending that they’d shut the government down on sound principle following Reagan’s old mantra:  “The government is too big and spends too much.”  Pragmatic GOP officials know that Congressional zealots can’t shut down the U.S. government.

            Since Obama took office Jan. 20, 2009, the GOP goals has been to hang the recession and failed economy on Barack.  Every Republican talking point is designed to associate the sick economy with Obama.  Now the GOP talking points have morphed into painting Obama as the biggest tax-and-spend liberal of all time.  His health care plan, that attempts to insure some 40 million uninsured citizens, helps cement that image.  Not since former President George Bush signed into law the Medicare Part D Prescription Drug Plan into law Dec. 8, 2003, had a Republican soponsored the biggest government expansion since Lyndon Baines Johnson signed Medicare into law in 1965.  When Bush requested increases in the debt ceiling to pay for Medicare Part D and wars in Afghanistan and Iraq no Republican—including the most zealous fiscal conservatives—objected.

            Today’s GOP objections to raising the debt ceiling are not based on some sacrosanct GOP principle but on a desire to gain political advantage heading into next year’s elections.  Among the Congress’ most vociferous Obama critics of raising the debt ceiling, Rep. Eric Cantor (R-Virginia), a Tea Party favorite, has pushed the debt ceiling debate to the breaking point.  “We are not going to raise taxes.  The votes aren’t in the House to raise taxes,” said Cantor, rejecting Obama’s call to raise taxes on income-earners above $1 million a year.  Cantor’s a Tea Party zealot, placating his hardcore constituency for next year’s re-election.  His focus is squarely on his self-serving re-election bid, not doing what’s best for Virginia or the country.  Defaulting on the national debt would placate the Tea Party and make a decisive statement against government spending but would damage the U.S. economy.

            Cantor’s Tea Party demands on more moderate dealmaker House Speaker John Boehner (R-Ohio) have exposed the internecine rift in the Republican Party.  While ultra-conservative syndicated radio talk show host Rush Limbaugh preaches over the airwaves, urging in the GOP, no matter what the costs, to defeat Obama, Cantor echoes the same message.  He’s concerned only about placating Virginia’s Tea Party to assure himself re-election in 2012.  Since taking office Boehner, on the other hand, has more pressing issues to a wider constituency, including his own staff that must continue receiving government payroll checks.  There’s no higher drama in Washington than fanatics like Cantor threatening to shut down the government in order in heap political damage on Obama before next year’s election.  Unlike Cantor, Boehner sees the bigger picture and wants to cut a deal.

            GOP officials weren’t too happy learning Obama has shattered all fundraising records, raking in $86 million between April and June, eclipsing fundraising for all GOP candidates combined.  Despite all the hot air on the airwaves, GOP insiders know that they face stiff headwinds in 2012 against a popular incumbent, riding high on getting Osama bin Laden.  Making Obama squirm and grandstanding on the debt ceiling is the only way the GOP can get some mileage between know and the election.  Sen. Minority Leader Mitch McConnell (R-Kt.) suggested a fix to the current stalemate, granting temporary debt increases to keep the government running between now and the election.  Even GOP hardliners know they can’t shut down the government, defaulting on domestic and foreign obligations.  Such talk by Canter and other Tea Party types is irresponsible political grandstanding.

            When both parties come to their senses, even the Tea Party zealots in Congress know they can’t pay their bills without raising the debt ceiling to $14.3 trillion.  Fed Chariman Ben S. Bernanke signaled today he’s willing to consider more stimulus if the economy continues heading south.  Obama haters, seeking any advantage heading into next year’s election, would do almost anything, including wrecking the economy, to get him out of office.  With Obama’s fundraising breaking all records, it’s a good bet that a sizable group of voters want the president back for a second term.  All the talk about slashing government benefits plays well on cable TV but not in the streets and trailer parks where folks collect the benefits.  All the hot air about shutting the government down has begun to backfire on the GOP.  Unless they cut a deal soon, the GOP won’t have a prayer next year.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com.and author of Dodging the Bullet and Operation Charisma.

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