Brian Beutler at Talking Points Memo gives a good summary of the debt deal’s positives and negatives from a progressive perspective. After reading a few summaries like this, I’m beginning to think that the deal, while indeed terrible, could have been worse. The initial cuts are relatively small and won’t take effect until FY 2013, which gives the economy a little breathing room. Medicaid, which seemed particularly vulnerable not so long ago, is shielded from automatic cuts (although Congress could still enact future cuts to the program). That’s not much to cheer about, but with one-half of Congress in thrall to ignorant worshippers of Ayn Rand’s ghost, minimizing the pain is probably the best outcome we can expect.
The most frustrating thing about this whole fiasco is that nothing has been done to address the fundamental drivers of our debt problems–entitlement program costs that vastly exceed revenues. And with Republicans demonstrably unable to offer rational proposals on either front, Obama’s only leverage may be the expiration of the Bush tax cuts at end of 2012. If he loses the election, it may actually be easier for him to let them expire. He may see it as his last opportunity to set the country on responsible fiscal footing and if the Republicans don’t like it, they can try to round up the necessary 60 votes in the Senate to undo it.
