The Next Fiscal Cliff

The Next Fiscal Cliff

When Congress passed  its overall budget outline it was a bipartisan deal and most of the votes came from the Democrats. Only 79 of the 246 House Republicans supported the package and 17 of the Senate Republicans.

Now there are three way negotiations beginning with Paul Ryan leading House Republicans, Mitch McConnell Senate Republicans, and the President or more likely his designee —either Shaun Donovan from OMB or White House Chief of Staff Dennis McDonough representing the President.

No one, especially the Republican leadership, wants a government shut down.

The only path to success is a coalition government: mostly Democrats and some Republicans to resolve the funding issues.

A broad coalition means that there needs  to be give and take on both sides. It puts Paul Ryan in a tough position as the new Speaker. He will need to lead his caucus but it is doubtful that a majority of his caucus will support a package that is acceptable to the President.

The rest of this month will be very tough for all concerned. There is the opportunity for a “deal” or more dysfunction, another stop gap measure, and more acrimony.

If we are to continue to be the leader of the free world and the world’s most dynamic economy we need the maturity to solve our fiscal problems, not wallow in partisan bickering which undermines our creditability with the public and the world.

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