After more than two weeks of a government shutdown and threats by Congressional Republicans to not raise the debt limit without serious spending cuts, Republicans conceded late Wednesday in their bitter fight with President Obama over the new health care law. The House and Senate approved last-minute legislation ending a 16-day government shutdown and extending federal borrowing power to avert a financial default.
The shutdown sent Republican poll ratings plunging and this is the main reason an agreement was reached. Most Americans believe it is the Republicans who are at fault. However, everyone is at fault when House and Senate members put politics over progress. The shut down cost the government billions of dollars and damaged the nation’s international credibility.
In the end President Obama refused to compromise so Republican leaders had to back down from their hard line stand and compromise on a deal. Under the agreement to reopen the government, the House and Senate are directed to hold talks and reach accord by Dec. 13 (right before their holiday break) on a long-term blueprint for tax and spending policies over the next decade. President Obama said stated that he is willing to talk about the budget once the government was reopened and the debt limit raised.
Unfortunately, there are absolutely no guarantees that Congress can work out a deal before mid-January, and there is deep skepticism in both parties that those involved in the budget negotiations, can bridge the divide between the two parties. It is possible we will go through the same process again in less than 90 days; which could rattle the markets especially if the government shuts down again.
