Wednesday, October 16, 2013

D.C. Deal Defers Default?

Posted By on Wed, Oct 16, 2013 at 10:34 AM


So it appears that the government shutdown and debt-ceiling brinksmanship is coming to an end today. Talking Points Memo has the details here.

John McCain tells The New York Times:


“Republicans have to understand we have lost this battle, as I predicted weeks ago, that we would not be able to win because we were demanding something that was not achievable.”

Jonathan Chait surveys the damage to the economy and sees an important win for democracy:


The Republican debt-ceiling gambit was meant to force Obama to accept the GOP agenda without any Republican concessions — a depressing enough outcome on its own. But it also would have dragged in a reordering of the Constitutional order and the institutionalization of endless crises and panics. We can’t be certain Republicans will never hold the debt ceiling hostage again; but Obama has now held firm twice in a row, and if he hasn’t completely crushed the Republican expectation that they can extract a ransom, he has badly damaged it. Threatening to breach the debt ceiling and failing to win a prize is costly behavior for Congress — you anger business and lose face with your supporters when you capitulate. As soon as Republicans come to believe they can’t win, they’ll stop playing.

Most of the analysis has focused on the mind-boggling stupidity of Republicans in Congress, who blundered into a debacle that failed in exactly the way they were warned it would. The episode will be retold and fought over for years to come, perfectly emblemizing the party’s internal disorganization, mindless belligerence, and confinement within an ideological echo chamber that sealed out important warnings of failure. A grassroots revolt forced Republicans to shut down the government two weeks before the debt ceiling deadline, serving to weaken the party's standing at the moment they hoped to hold the default gun to Obama's head. (It's possible they lesson they'll take away from their failure will only be not to shut down the government and threaten default at the same time, requiring another showdown.)

But it also represents a huge Democratic success — or, at least, the closest thing to success that can be attained under the circumstances. Of the Republican Party’s mistakes, the most rational was its assumption that Democrats would ultimately bend. This was not merely their own recycled certainty — “nobody believes that,” a confident Paul Ryan insisted of Obama’s claims he wouldn’t be extorted — but widespread, world-weary conventional wisdom. Democrats would have to pay a ransom. Republicans spent weeks prodding for every weakness. Would Senate Democrats from deep red states be pried away? Would Obama fold in the face of their threat?

Part of what undergirded Democratic unity went beyond a (correct) calculation that it would be dangerous to pay any ransom at all. Democrats seemed to share a genuine moral revulsion at the tactics and audacity of a party that had lost a presidential election by 5 million votes, lost another chance to win a favorable Senate map, and lost the national House vote demanding the winning party give them its way without compromise.

Probably the single biggest Republican mistake was in failing to understand the way its behavior would create unity in the opposing party. Not until the very end, when the crisis was well under way, did any conservatives even acknowledge the Democratic view that the GOP had threatened basic governing norms. Ted Cruz and his minions may have undertaken a hopeless crusade, but they dragged along the Paul Ryan Republicans who all along seemed to think their extortion scheme was a simple business deal. Its collapse is one of the brightest days Washington has seen in a grim era.

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