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But a small one is absolutely necessary.  

I have argued elsewhere about the need to move the country to the left and to not compromise with the out of touch with reality "bubble" right.  But the challenges of the wingnuts aside, the problem with the "fiscal cliff" (automatic across the board spending cuts and tax increases) or any "grand" compromise is that the economy is too fragile to absorb a major change in our economic structure right now.  Leading economists and the Congressional Budget Office agree that anything but a token compromise now will crush the recovery.  Krugman was right. The stimulus was not big enough and to raise taxes and cut spending now will be disastrous.  The fiscal cliff or a grand compromise will destroy the work we accomplished last night because  we will have another recession and the Republicans will sweep away everything in 2014 arguing that the economy collapsed because we did not cut government spending enough and raised taxes.  

We need to kick this can down the road until the economy gets stronger and work as hard as we worked on this election to change the House.  So a smaller compromise could look something like this.  Raise the debt ceiling enough to cover the 2013 and 2014 fiscal years. Mandate 15% of the across the board "fiscal cliff" spending cuts in the 2015 budget if the 2015 budget does not have equivalent cuts.  Extend the current tax structure for one year.  Finally leave the bigger fiscal cliff in place but put it off until the 2017 fiscal year.    

We can't afford to not work with the House. But I bet they are willing to kick the can down the road; this solution has always enjoyed bipartisan support in Washington. Yes we need to address the deficit, but with a Democratic House.  The deficit has four main causes, the Bush tax cuts, the Bush wars, the Bush prescription drug additional Medicare benefits, and the Bush recession. President Obama is already addressing three of these things and addressing the tax cuts can be put off for a year to reach a compromise on this issue. Trying to reach a grand compromise or allowing the fiscal cliff to occur would be a disaster, both in terms of trying to address the deficit, and in turning the Bush recession into the Obama recession.

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Comment Preferences

  •  Tip Jar (3+ / 0-)
    Recommended by:
    Quantumlogic, smiley7, AllanTBG

    A Roosevelt Republican: Honest government, walk softly and carry a big stick, national health care, protect the environment, physical fitness, and kick a** on Wall Street. Simple truths that 100 years later we are still struggling to get right.

    by Paradigm Change on Wed Nov 07, 2012 at 09:51:46 AM PST

  •  What will the democrats do now? (1+ / 0-)
    Recommended by:
    tardis10

    Given the huge victory, will they rush into the Grand Bargain to go after Social Security and Medicare?

    Or will they hold the Republican feet to the fire?

    Glenn Greenwald lays out the scenario of what could happen because it is what has happened before as the Democrats caved to the Republican agenda on far too many issues.

    http://www.guardian.co.uk/...

  •  No. (6+ / 0-)

    Let the tax cuts expire.

    Let. the tax cuts. EXPIRE.

    Then slash military spending.

    oh, and

    Leave. the "entitlements." ALONE.

    •  I totally agree (3+ / 0-)

      Let the tax cuts expire, period.

      Going to Clinton-style taxation levels and Clinton-style balanced budgets will take away the only issue, other than abortion, that the Repugnikans have left.

    •  We certainly must be willing to let them expire (0+ / 0-)

      if the Republicans won't compromise, but I would hope that we could keep them for the 98%.  We need to get back to a progressive tax system in which Warren Buffet pays a higher percentage of his income in taxes than his secretary does.

      A Roosevelt Republican: Honest government, walk softly and carry a big stick, national health care, protect the environment, physical fitness, and kick a** on Wall Street. Simple truths that 100 years later we are still struggling to get right.

      by Paradigm Change on Wed Nov 07, 2012 at 10:21:13 AM PST

      [ Parent ]

  •  is this a CT diary? (5+ / 0-)

    Because the title says, a grand compromise would be a disaster.
    While the diary says, a grand compromise is exactly necessary.

    Raising taxes on the wealthy is the key step needed
    to bring this economy back from the dead.

    I agree 3000% with corvo.

    Let. the. tax. cuts. EXPIRE.

    all together now:

    LET THE TAX CUTS EXPIRE.

    If you don't agree, I have a compromise solution:

    1) let the tax cuts expire.
    2) thats it.

    is that compromisey enough for you?

    I am, as apparently we all are,

    by doomedtorepeathistory on Wed Nov 07, 2012 at 10:15:27 AM PST

    •  one small disagreement with corvo (0+ / 0-)

      Leave . the. "obligations" alone.

      I am, as apparently we all are,

      by doomedtorepeathistory on Wed Nov 07, 2012 at 10:16:25 AM PST

      [ Parent ]

    •  I like this compromise!! (1+ / 0-)
      Recommended by:
      doomedtorepeathistory

      Sounds like the type Republicans try to make...

      Two can play the taking hostages game....

      “Mitt Romney is the only person in America who looked at the way this Congress is behaving and said, ‘I want the brains behind THAT operation.’ ” Former Democratic Congressman - Tom Perriello "Small Businesses Don't Build Levees" - MHP

      by justmy2 on Wed Nov 07, 2012 at 10:24:48 AM PST

      [ Parent ]

    •  No, not a grand compromise (1+ / 0-)
      Recommended by:
      Paradigm Change

      The diary seems to call for a little baby compromise until we have more seats in Congress (i.e. control the House), and reject a "grand" compromise with major changes to the budget, tax code and S.S./Medicare/Medicaid as has been floated.

      •  Exactly (0+ / 0-)

        The fiscal cliff is a disaster for us and so is a grand compromise so we must do something.  Thus the need for a little baby compromise.  

        A Roosevelt Republican: Honest government, walk softly and carry a big stick, national health care, protect the environment, physical fitness, and kick a** on Wall Street. Simple truths that 100 years later we are still struggling to get right.

        by Paradigm Change on Wed Nov 07, 2012 at 11:03:52 AM PST

        [ Parent ]

        •  sorry, the fiscal cliff is not a disaster for us (0+ / 0-)

          the fiscal cliff is the only way we will see in our lifetimes a tax increase on rich people.  and giving that up is not by any stretch
          a baby compromise.

          I am, as apparently we all are,

          by doomedtorepeathistory on Wed Nov 07, 2012 at 11:59:17 AM PST

          [ Parent ]

          •  Two different things (0+ / 0-)

            Revenue and spending.

            On the revenue side, Bush tax cuts can just expire at end of 2012.  Fiscal cliff refers to the combination of that tax hike with major spending cuts. Brings budget closer to balance but withdraws demand from an already-weak economy.  Bad.

            Following basic economics, we should ignore the deficit in the short-term (especially since we can borrow at 1%), grow the economy back to real health, and only then fix the deficit problem in the long term. Since all in DC agreed in 2009 that "deficit reduction" is so damn important, we won't do this.

      •  as another diary points out, more seats not coming (0+ / 0-)

        we need seats to get things done.
        but here's an opportunity to get something done
        with the seats we have. waiting for more seats
        is a fools game - democrats should legislate with
        the seats they have, not with the seats they wished they have.

        I am, as apparently we all are,

        by doomedtorepeathistory on Wed Nov 07, 2012 at 12:00:55 PM PST

        [ Parent ]

        •  I hope you still feel that way when we end up (0+ / 0-)

          losing the Senate in 2014 because the Grand Bargain raised the social security age to 75 and medicare age to 70.

          You have watched Faux News, now lose 2d10 SAN.

          by Throw The Bums Out on Wed Nov 07, 2012 at 08:47:38 PM PST

          [ Parent ]

          •  not sure if thats on me? (1+ / 0-)
            Recommended by:
            fenway49

            I'm opposed to any bargain of any kind on this one -
            baby or Grand.

            I say, let the tax cuts all expire in dec.  Then, pass a budget in jan restoring various expenditures that were cut.  that'll be much easier at that point because most of those expenditures will benefit red states more than blue states.

            so, just to be clear, I'm against raising the ss or medicare ages or any other 'tinkering' with the safety net.

            I am, as apparently we all are,

            by doomedtorepeathistory on Thu Nov 08, 2012 at 03:35:10 AM PST

            [ Parent ]

  •  Let the lame duck Congress be a lame duck. (3+ / 0-)

    Let the tax cuts expire. A new Congress will be forced then to take up taxes as a brand new issue. We do not need a Grand Bargain.

  •  No Grand Bargain (4+ / 0-)

    It's a recipe to elect Republicans in 2014.

    "Lets show the rascals what Citizens United really means."

    by smiley7 on Wed Nov 07, 2012 at 10:27:47 AM PST

  •  1 idea (0+ / 0-)

    turn red states into internment camps.  basic denials of human rights and services will change them fast.

    adapt or die.  I bet they choose death.  pathetic religious gun nuts.

  •  apology to diarist about ct accusation (0+ / 0-)

    i just want to apologise to the diarist who seems to be making
    a genuine effort to discuss issues.

    i went to peruse the diarists' other diaries.

    i don't any longer think this is concern trolling.

    i still don't agree with the premise of the need for a
    baby compromise though...

    I am, as apparently we all are,

    by doomedtorepeathistory on Wed Nov 07, 2012 at 01:12:07 PM PST

    •  Thanks for taking the time to check me out (0+ / 0-)

      even though you disagree with me.  I am new here.  As a quant, I probably come from way way out in center field, and I recognize that my diaries have a  different objective from many other's.  But I am dedicated to both an enlightened discussion of the issues and this site's objective which as I understand it is to work for the election of Democrats.  And I do not want to violate the site rules. So could you explain to me your definition of a concern troll?  

      Dedicated to recapturing the American Dream by changing the framework of the debate to focus on: Growth, Efficiency, Community, Sustainability and Economic Fairness. Improve constantly and drive out fear - Dr. W. Edwards Deming

      by Paradigm Change on Thu Nov 08, 2012 at 09:51:21 AM PST

      [ Parent ]

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