Robert Reich: Ransom Paid

Anyone who characterizes the deal between the president, Democratic, and Republican leaders as a victory for the American people over partisanship understands neither economics nor politics.

The deal does not raise taxes on America's wealthy and most fortunate -- who are now taking home a larger share of total income and wealth, and whose tax rates are already lower than they have been in eighty years. Yet it puts the nation's most important safety nets and public investments on the chopping block.

By embracing deficit reduction as their apparent goal -- claiming only that they'd seek to do it differently than the GOP -- Democrats and the White House now seemingly agree with the GOP that the budget deficit is the biggest obstacle to the nation's future prosperity.

The budget deficit is not the biggest obstacle to our prosperity. Lack of jobs and growth is. And the largest threat to our democracy is the emergence of a radical right capable of getting most of the ransom it demands.

stillnutty wrote:I hope it is clear to everyone that the Repubs are now in total control of the country. Things will now be done their way. Part of me is actually saying I wish the Pres and the Dems called their bluff on the default.