Thursday, December 20, 2012

Let's be practical

Who knows what is really going on behind the scenes in the negotiations about the fiscal problems -- how much of what we hear is negotiating tactics, how much is serious business?

The latest flap that has liberals up in arms is the report that Obama has offered to change how the annual cost of living (COL) increases are calculated.   I'm not very knowledgeable about this.  Some have said that old way of calculating it is not really realistic anyway.  I think it boils down to this:

Yes, it would make a little difference over time in how much a senior's monthly SS check is.  For example, mine will increase by 1.7% next year.   With the change, it might rise by 1.5%.  That's the magnitude we're talking about.   So, say, in 5 years it might be a difference of 1%.

Not insignificant.  But, as a negotiating tactice, it might be OK.  The trouble is, it crosses that line in the sand, where Dems said "no cuts in entitlements" and Repubs said "no new taxes."

Boehner has already indicated a willingness to cross that line by allowing tax cuts to expire on those making over $400,000.   So this is a comparable move, it seems to me.

But my initial response was:   There he goes again.  Obama is caving in on Social Security.  So I understand the emotional reaction, too.    But, if he doesn't concede any more than this, and he gets a deal out of it, that's not too bad.

Ralph

LATE ADDITION:   An NBC/Wall St. Journal poll just released shows that 61% of Republicans would accept higher taxes on the wealthy to avoid the fiscal cliff.   So, maybe a deal will be reached without any further concessions from Obama.

1 comment:

  1. A couple more indications of the trouble Republicans are in:

    1. 53% of Republicans themselves say their party has moved too far to the right.

    2. Senate Minority Leader Mitch McConnell is in political trouble. In his home state of Kentucky, his approval ratings are dismal. I forget the exact number, but it's well above 50%.

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