The deep division between Republicans and Democrats — across the country, and especially in Congress — makes it increasingly difficult for Americans to believe what comes out of Washington is good for the country. The battle over how to compromise on the “fiscal cliff” was the latest sign our political system is almost broken. It appeared this fight would spill into retirement accounts when the financial markets opened following the New Year’s holiday.
The market meltdown was avoided, and Senate Minority Leader Mitch McConnell, R-Ky., was crucial in brokering the deal that solved the legislative impasse. An Associated Press story explains how an old friendship between McConnell and Vice President Joe Biden helped the country avoid a financial wreck.
This time.
It appears the McConnell-Biden pact saved us from a dive Wednesday on the stock market. Negotiations were stuck between President Barack Obama and Republicans with time running out for a deal before tax increases on most Americans and deep spending cuts hit on New Year’s Day.
“A frustrated McConnell felt he had one last option,” Associated Press writer Julie Pace wrote in a story about the negotiations. “He called Biden, his longtime Senate colleague and frequent negotiating partner, and implored him to step in. Seeking to up the pressure on the White House, McConnell publicly announced that he was reaching out to Biden during remarks from the Senate floor during the rare Sunday session.”
Today Americans can give thanks for McConnell’s skill as a statesman.
But this so-called fiscal cliff is just the beginning of the country’s problems with debt. This was another temporary solution.
Three more deadlines loom for Congress and the White House.
First is the debt ceiling. The federal government hit its $16.4 trillion debt ceiling this week, and the Treasury Department estimates it can essentially shuffle funds around for a couple of months to meet the country’s obligations. That gets us to late February before the next crisis hits. Congress’ last debt ceiling fight in 2011 led to a downgrade in the country’s credit rating.
Second is the sequester, which refers to automatic spending cuts of 8 to 10 percent for federal agencies and programs. Congress put those cuts in place in 2011 when lawmakers reached a temporary fix on the debt ceiling. Those cuts were delayed 60 days in the deal approved Tuesday.
Third is the continuing budget resolution, which has become standard operating procedure for Congress because it typically cannot agree on a federal budget. The current band aid that keeps the government at work will run out on March 27.
Three more cliffs in less than three months.
The country needs a bold statesman in Congress to lead the country out of the revenue and spending crisis. Congress must get control of the government’s spending. McConnell reminded us this week that he’s capable of leading in a crisis, but it’s not clear yet if he’s willing to do it again on a grander scale that would put the country’s fiscal survival ahead of his own political future.
