The Debt Ceiling – Will the House Cave Next Time?
I have been ignoring the Fiscal Cliff news for the time being but I am guess the debt ceiling is not part of that issue. As far as tax rates go, the Republicans have to play ball since inaction would make all of the rates go up. There will still be a game of chicken for sure, but there is a pretty big incentive for both sides to come together for a deal.
Now the next time we have a debt ceiling deadline, what exactly is the motivation for the House to play along? Republicans screwed last time and got no real benefit out it, politically or otherwise. While it’s true that the president was reaffirmed in last nights election, it’s also true that the House was also reaffirmed in last night’s election which I think will create the mother of all stalemates. Even if Boehner is a natural deal maker, there are too many Tea Party votes that will not go along. This is really the only ammunition conservatives have at all. They can stop things, defund some things, they can run investigations and so on but their only real power is the debt ceiling. I feel like a nothing-to-lose Congress has a much better hand in negotiations than the president.
When is the next debt ceiling increase? Could the House go scorched-earth? Should they?