The practice of politics is usually a victimless crime. The two party system and a well designed system of checks and balances usually keeps politicians from ruining your life. We the citizens can, in general, go about our lives mostly removed from the preschool antics which unfortunately have become standard operating procedure in Washington. They can call each other liars, assassinate each other’s character and even slug each other. Occasionally, a really stupid law gets passed and is harmlessly overturned or ruled unconstitutional in fairly short order. Beyond their entertainment value, politicians have little harmful effects on our daily lives. Yesterday, however, two things happened which might affect your life directly and soon.
The first thing which happened yesterday was innocuous enough. A bunch of Republicans visited Democratville on the other end of Pennsylvania Avenue. The meeting, which was described at “frosty”, was held to allow the Republican House Caucus, all of it, to explain to President Obama its budgetary demands to raise the debt limit. You know, a field trip is always more exciting than blocks and storytime. Reportedly, the President was able to explain his position as well. Since it was the President’s snack time, he shared his cookies and milk with his guests.
Since the President has invited the Democrats today, he has an opportunity to look “Presidential” and also seem to rise above the fighting and bickering. It is important to look a little better than pre-schoolers. I guess Obama is hoping to seem as if he has graduated to the first grade. The Republicans conversely were able to stomp their feet again and seem to be standing up to the school bully. I have learned John Boehner’s top secret strategy to get his way will soon include sobbing and temper-tantrums. NPR reported yesterday the Republicans and Democrats both needed more political cover to do what seems inevitable. Apparently, the GOP needs to satisfy the Tea Party that taxes must be raised and the Democrats have to prove to the left that some change to Medicare or Medicaid is necessary. This political cover may come as markets get more and more jittery which may manifest itself as a world credit crisis.
The reason I mention jittery markets is the other thing which happened yesterday. The market had what some characterize as a near melt-down. Many analysts attributed the drop of over two percent to what is normally an insignificant jobs projection report from the ADP Company. I am no financial genius. I do not pretend to understand market movements. I am told however, a one-day two-percent drop is significant. Furthermore, I am led to believe the markets are very nervous.
The people on Wall Street may not care whether or not it is nap time at the White House or who touched who first on Capitol Hill. Wall Street has an inertia that is not easily overcome. In another metaphor, Wall Street is more like an aircraft carrier than a Cozy Coupe. As we witnessed in late 2007, once a credit crisis starts, it might be hard to stop. Before a credit crisis is brought under control, we may have lost 16-million more jobs. I know there are principles at stake and well meaning politicians on both sides are being asked to do the politically unpalatable. They are all waiting, hoping, to get some political cover from the markets so they don’t alienate their bases of support. Aren’t we however, cutting it a little too close? What if a miscalculation has occurred? With so much riding on this one, can’t they all just take the politics on the chin for this one? Even the Romper Room had its “Do-Bees.” Maybe Washington can get the debt ceiling raised between show-and-tell and puzzle time.
As you have probably realized, I wrote this column on Thursday. Apparently, however, those crazy kids are still at it. During the Speaker’s press conference today, both Boehner and Cantor reiterated their demand that no revenue enhancements would be considered by the GOP controlled House.