July 19, 2011
But if the GOP House plan dies in the Senate, how does the GOP win? Again, by simply standing its ground on taxes, and waiting.
This weekend, Democrats and Republicans, Congress and the White House agreed the debt ceiling will be raised, and Obama accepted the reality that he will not be getting any new revenue.
This means that, at the end of this process, Obama will sign a debt-ceiling increase that involves $2 trillion or $1.5 trillion or $1 trillion in spending cuts, with no new taxes and no new revenues.
And that is a victory for whom, and a defeat for whom?
Republicans may have been beaten up for most of July, but come August, Democrats will be asking Barack Obama what exactly he and they got for agreeing to serious cuts in social spending, while the Republican right compromised on nothing and gave up nothing.
Obama won the public relations battle, but the Republicans, if they hold firm on no revenue enhancement and no new taxes, are fated to win the war. And not just this one.
For, from Greece to Ireland to Portugal to Italy, from California to Wisconsin to New Jersey to New York, the crisis of the West is a crisis of liberalism.
Deficits and debts that threaten to wipe out bondholders and banks, destroy currencies, bring down governments and bankrupt nations are everywhere forcing reductions in government payrolls and rollbacks in government programs.
Across the West, the public sector is under siege.
And parties of the left, be they liberal, socialist or Marxist, depend on the public sector increasing its employees, increasing its beneficiaries, increasing its share of the national wealth.
That is what they do. That is how they grow. And that is how they reach and retain power.
Bottom line. Parties of the left are on this earth to grow the government. But the West has entered a period where its economic survival and the prevention of financial collapse mandate constant and deep cuts in the size and sweep of government.
For the left, this is going to be a long decade.