Bullying Us Over The Fiscal Cliff

With today’s far left leaning policy creators in the White House, bi-partisan politics are as likely as the elimination of the national debt by year’s end.  Crafted by President Obama’s personal agenda, these extreme liberal policies face constant opposition by Republican lawmakers and, more often than not, end in a political stalemate.  Stemming from an unwillingness to work at all with the Republicans, Democrats have instead adopted a more labor union style “bullying” approach of negotiating, continually pressing their near socialist agenda while expressing no desire to offer any concessions.   

The pending fiscal cliff crisis is the latest example of the President asserting these bullying tactics in an attempt to force the hand of the Republicans.  With media in tow, President Obama has been on what bears more the resemblance of a re-election campaign tour, speaking to very select pro-Democratic groups and portraying Republicans as money mongering profligates who would rather burden the middle class with taxes than take a penny out of the pockets of the wealthy.  As part of these “campaign style” speeches, Obama also vilifies Republicans for taking the economy over the fiscal cliff, as if he already knows this will be the final outcome.  

Playing chicken with the economy

Judging from all the rhetoric being fed to the main stream media, by the President, it appears as though he is preparing to take our economy over the fiscal cliff.  Failing to offer any real spending cuts and refusing to let go of his personal ambition to impose tax increases, on the wealthiest two percent, sends a clear message that President Obama has no desire to work with Republicans in order to have a deal in place in time to make the December 31^st deadline.  In many regards, doing nothing could be viewed as a wining proposition for Democrats, who appear to be betting the farm that Republicans will give in to the President’s one sided proposal before time runs out. 

If by chance the Democrats end up losing this bet, by virtue of the automatic spending cuts and tax increases imposed by law, as part of the 2011 public debt ceiling compromise, they will still receive a good portion of their desired defense spending cuts as well as revenue gains resulting from the expiration of the Bush era tax cuts.  Maybe best of all, in the minds of Democrats, is by going over the fiscal cliff, they will be handed another opportunity to once again try and undermine the credibility of the Republican Party.

Will Republicans cave at the midnight hour?

There is nothing to gain, economically or politically, for Republicans to concede to Obama’s unyielding demands.  Certainly, going over the fiscal cliff will have a negative effect on the economy, at least in the very short term however, once Wall Street gets past its typical knee jerk reaction to bad news, the already slow moving economy will come crawling back and continue to muddle along, just as it has for the past four years, under the current administrations leadership.

What should be more concerning to President Obama is how the international financial community perceives his administrations lack of desire to work towards resolving the US national debt as well as its inability to gain control of its own spending.  This will certainly be looked upon negatively by those whom the US are heavily indebted to as well as those who rely on the strength and stability of the US dollar.

There may also be a bit of Presidential over optimism in Obama’s belief that taxpayer will burden Republicans with the blame for the loss of the much needed Bush era tax cuts.  Small business owners and the middle class, many of whom are also beginning to realize the hidden costs of ObamaCare, may not be so convinced that this failure is not at the hands of the Democrats, who have made no attempt to avert going over the fiscal cliff.

For Republicans, the economic ramifications of going over the fiscal cliff are far less damaging than what would be realized by giving in to Democrats and allowing them to continue to fund their liberal policies through their foolish spending practices that continue to run up the nation’s debt.  Also, allowing President Obama to continue to wage his attack on the wealthiest two percent of our nation, as part of his redistribution of wealth campaign, is simply not good precedent to set.