47°
Cloudy
WED
 74°
 54°
THU
 70°
 51°
FRI
 76°
 52°
SAT
 69°
 48°
SUN
 72°
 45°

KRUGMAN: Time to stand your ground, Mr. President

To say the obvious: Democrats won an amazing victory. Not only did they hold the White House despite a still-troubled economy, in a year when their Senate majority was supposed to be doomed, they actually added seats.

Nor was that all: They scored major gains in the states. Most notably, California, long a poster child for the political dysfunction that comes when nothing can get done without a legislative supermajority, not only voted for much-needed tax increases, but elected, you guessed it, a Democratic supermajority.

But one goal eluded the victors. Even though preliminary estimates suggest that Democrats received somewhat more votes than Republicans in congressional elections, the GOP retains solid control of the House thanks to extreme gerrymandering by courts and Republican-controlled state governments. And Rep. John Boehner, the speaker of the House, wasted no time in declaring that his party remains as intransigent as ever, utterly opposed to any rise in tax rates even as it whines about the size of the deficit.

So President Barack Obama has to make a decision, almost immediately, about how to deal with continuing Republican obstruction. How far should he go in accommodating the GOP's demands? My answer is, not far at all. Obama should hang tough, declaring himself willing, if necessary, to hold his ground even at the cost of letting his opponents inflict damage on a still-shaky economy. And this is definitely no time to negotiate a "grand bargain" on the budget that snatches defeat from the jaws of victory.

In saying this, I don't mean to minimize the very real economic dangers posed by the so-called fiscal cliff that is looming at the end of this year if the two parties can't reach a deal. Both the Bush-era tax cuts and the Obama administration's payroll tax cut are set to expire, even as automatic spending cuts in defense and elsewhere kick in thanks to the deal struck after the 2011 confrontation over the debt ceiling. And the looming combination of tax increases and spending cuts looks easily large enough to push America back into recession.

Nobody wants to see that happen. Yet it may happen all the same, and Obama has to be willing to let it happen if necessary.

Why? Because Republicans are trying, for the third time since he took office, to use economic blackmail to achieve a goal they lack the votes to achieve through the normal legislative process. In particular, they want to extend the Bush tax cuts for the wealthy, even though the nation can't afford to make those tax cuts permanent and the public believes that taxes on the rich should go up — and they're threatening to block any deal on anything else unless they get their way. So they are, in effect, threatening to tank the economy unless their demands are met.

Obama essentially surrendered in the face of similar tactics at the end of 2010, extending low taxes on the rich for two more years. He made significant concessions again in 2011, when Republicans threatened to create financial chaos by refusing to raise the debt ceiling. And the current potential crisis is the legacy of those past concessions.

Well, this has to stop, unless we want hostage-taking, the threat of making the nation ungovernable, to become a standard part of our political process.

So what should he do? Just say no and go over the cliff if necessary.


© The Press Democrat |  Terms of Service |  Privacy Policy |  Jobs With Us |  RSS |  Advertising |  Sonoma Media Investments |  Place an Ad
Switch to our Mobile View