A Debacle for the Republicans

The budget dispute has been postponed, but a global and financial crisis has not been prevented by a long stretch. The political madness continues.

What a drama, right up to the last minute — and what disastrous consequences. The political madness in Washington has cost the country that is already $17 trillion in debt a further $24 billion. America thoroughly embarrassed itself in the eyes of the world.

But this last-minute compromise has only postponed the madness, not resolved it. It is perfectly possible that the same fiasco — no money for the regular business of government and no agreement about raising the debt ceiling — will be repeated shortly after Christmas. Government shutdown is especially painful in winter.

On Thursday night, the only thing that was achieved was another small grace period. The government only has enough cash to go about its business until Jan. 15; America can only carry on paying its debts until Feb. 7.

If by then Democrats and Republicans cannot come to an agreement about the budget, if they cannot reach a consensus about where savings should be made in the escalating Social Security and military budgets and where they want to invest for the future despite limited means, then the next catastrophe looms large. A new global economic and financial crisis has not been prevented by a long stretch.

Winners and Losers

What happened in the past two weeks, when museums and parks had to shut and hundreds of thousands of federal employees were sent home? What did the grueling dispute achieve?

This round of the power struggle over America’s budget was won by Obama and his Democrats. The Republicans lost on all counts. Only too compliantly, they let themselves be taken hostage by a small but influential band of irresponsible extremists. This group of fanatical Republicans does not just reject Obama’s health care reforms, it hates them. All their efforts, supported and financed by lobby groups such as the Heritage Foundation, have just one goal: to abolish Obamacare.

Since the introduction of universal mandatory health insurance is not just unpopular in the Republican Party but also among sections of the population, the tea party’s thinking is that if they make their agreement to the budget dependent on concessions in the health care reforms, then Obama and the Democrats will give in.

But they have made some basic miscalculations. Not one single Democrat changed their position. On the contrary, the Republicans’ aggressiveness led to the Democrats closing ranks and defending the health care reforms. Obama and the Democrats did not let themselves be blackmailed and accepted the fact that in the meantime the government was not just running out of money, but that America was also facing the threat of insolvency.

Republicans Are Losing Support

It was particularly bad for the Republicans that Americans flatly refused to support their policy of blackmail. Seventy-five percent demanded that the government should continue paying and raise the debt ceiling. The people are frustrated to such an extent that 60 percent would like to get rid of all the current congressmen and senators. The Republicans only have the support and sympathy of just over a quarter of Americans.

What’s more, support for the health care reforms went up by 8 percent during the dispute, even though the launch on Oct. 1 was for all intents and purposes a disaster. The Republican strategy could not have backfired any more spectacularly.

A Temporary Victory

The president and the Democrats have won for the time being, but they should beware of savoring the moment and becoming too cocky. The victory is transient; there is too much at stake.

The Obama administration is badly in need of a few dozen insightful Republicans so that it can set a budget and push through the necessary savings. Some Democrats will cancel their solidarity with Obama if it comes to cuts to Social Security. The president also needs these Republicans to push the long overdue immigration reforms through Congress.

Obama’s answer last night to the difficult question of whether the unpleasant wrangling over America’s financial situation will be repeated after Christmas was short and sweet: “No.” That would be a major triumph; all that is missing is the belief that it is possible.