It’s All About Leverage

There are many Hollywood movies about the behind closed door meanderings that go into closing a political deal. Whether it be Lincoln or House of Cards, there’s a certain ‘you scratch my back, I scratch yours’ attitude that is thought to be a visage. This attitude seems to be the MO for the upcoming debt ceiling debates, as House Republicans have the majority and what they see to be the time to make some deals to pass some long fought for legislation. Republicans want to make sure that they get certain policies underway, such as the Keystone Pipeline as well as the delay of individual mandates for Obamacare. In return, the Republicans will throw in some entitlements that the Democrats are after. President Obama did not negotiate over the sequester, and tried to use bully politics to make the public scared of its effects. These effects never went into action at the veracity the Obama administration proclaimed, and the Republicans called Obama’s bluff. The White House is fighting back, however, and realizes that the 16 trillion debt ceiling that the government is using will run dry and needs to be lifted. According to Politico, White House Officials are meeting with Republican senators on August 29th “in search of a fiscal deal that cuts the deficit, lifts the debt ceiling and funds the government.” Speaker Boehner said that the American people will not tolerate a government shutdown, even if Obama is threatening one. Some Republican senators do not fear this shutdown, and think that it should happen if Obama plans to implement individual mandates as part of the Affordable Care Act. Senator Ted Cruz and Senator Mike Lee wrote a letter to House Republicans saying that if this is part of the budget, the government should indeed shutdown. With all drama aside, the budget will pass as deemed by the sequester with 998 billion that will then lead to an omnibus bill that will fund the budget until next year. These threats, however, are what makes politics a sport, and both sides are waiting to see who will cave.