Obama's debt-ceiling strategy needs GOP cooperation
President Obama鈥檚 debt-ceiling strategy depends on there being enough willingness to cooperate left in the GOP, Reich writes.
President Barack Obama gestures as he speaks during the last news conference of his first term in the East Room of the White House in Washington Monday. Obama's debt-ceiling strategy counts on public pressure, Reich writes, to force Republicans into submission.
Carolyn Kaster/AP
A week before his inaugural, President Obama says he won鈥檛 negotiate with Republicans over raising the debt limit.聽
At an unexpected news conference on Monday he said he won鈥檛 trade cuts in government spending in exchange for raising the borrowing limit.聽
鈥淚f the goal is to make sure that we are being responsible about our聽聽and our deficit - if that鈥檚 the conversation we鈥檙e having, I鈥檓 happy to have that conversation,鈥� Obama said. 鈥淲hat I will not do is to have that negotiation with a gun at the head of the American people.鈥�
Well and good. But what, exactly, is the President鈥檚 strategy when the debt ceiling has to be raised, if the GOP hasn鈥檛 relented?聽
He鈥檚 ruled out an end-run around the GOP.聽
The White House said over the weekend that the President won鈥檛 rely on the Fourteenth Amendment, which arguably gives him authority to raise the debt ceiling on his own.聽
And his Treasury Department has nixed the idea of issuing a $1 trillion platinum coin that could be deposited with the Fed, instantly creating more money to pay the nation鈥檚 bills.
In a pinch, the Treasury could issue IOUs to the nation鈥檚 creditors 鈥� guarantees they鈥檒l be paid eventually. But there鈥檚 no indication that鈥檚 Obama鈥檚 game plan, either.聽
So it must be that he鈥檚 counting on public pressure 鈥� especially from the GOP鈥檚 patrons on Wall Street and big business 鈥� to force Republicans into submission.聽
That鈥檚 probably the reason for the unexpected news conference, coming at least a month before the nation is likely to have difficulty paying its bills.
The timing may be right. President is riding a wave of post-election popularity.聽shows him with a 56 percent approval rating, the highest in three years.聽
By contrast, Republicans are聽. John Boehner has a 21% approval and 60% disapproval. And Mitch McConnell鈥檚 approval is at 24%. Not even GOP voters seem to like Republican lawmakers in Washington, with 25% approving and 61% disapproving.聽
And Americans remember the summer of 2011 when the GOP held hostage the debt ceiling, bringing the nation close to a default and resulting in a credit-rating downgrade and financial turmoil that slowed the recovery. The haggling hurt the GOP more than it did Democrats or the President.聽
But Obama鈥檚 strategy depends on there being enough sane voices left in the GOP to influence others. That鈥檚 far from clear.聽
Just moments after the President鈥檚 Tuesday news conference, McConnell called on the President to get 鈥渟erious about spending,鈥� adding that 鈥渢he debt limit is the perfect time for it.鈥� 聽And Boehner said 鈥渢he American people do not support raising the debt ceiling without reducing government spending at the same time.鈥�
The 2012 election has shaken the GOP, as have the post-fiscal cliff polls. Yet, as I鈥檝e noted before, the Republican Party may not care what a majority of Americans thinks. The survival of most Republican members of Congress depends on primary victories, not general elections 鈥� and their likely primary competitors are more to the right than they are.聽