The Pivot Point Brendan Delaney's Blog

10Apr/110

U.S. Government Averts Shutdown, For Now

 

How Did it Come to This?

With only hours to spare, both the GOP and Democrats worked furiously into the night to avert a governmental shutdown due to a budget dispute. There were many deals laid on the table over the last few weeks although neither party could come to an agreement. With only hours to go, John Boehner, who is Speaker of the House, met with influential Democrats and President Obama to ink a deal that would cut governmental spending by $38.5 billion dollars over the course of the year.

What's at Stake
Some political analysts claim that the Democrats stand the most to gain if a shutdown should occur. Because Republicans have fallen victim to inter-party fighting, a sensible budget was not an easy accomplishment. Republicans took months to draft a shaky budget proposal, which Democrats used as fodder. Parts of the proposed budget contained sweeping cuts to entitlement programs such as Medicare and Medicaid, which are programs that affect older people and those in financial distress. With Democrats holding out for less extreme cuts that would affect other federal programs, Republicans risk looking insensitive to the needs of certain segments of the population. The last time there was a shutdown of the Federal government was in 1995 under the presidency of Bill Clinton, whose ratings would soar following an eventual budget deal. This fact also weighed heavy in the hearts of many of the veteran members of the GOP.

Success for Who
Although the shutdown was avoided and Federal workers' pay is safe, many people wonder exactly which party should claim success. Democrats claim victory based on the fact that the government will still function. The GOP claims victory because they will cut spending over the next year, which is what their party says was the reason for the sweeping GOP wins in November of 2010. However, most economists venture that there is no clear winner due to larger issues that loom in the foreground. The safety of Social Security, Medicare, and Medicaid is at stake because of two costly wars and a housing sector drop that has sent the U.S. in a downward spiral over the last three years. To add to the woes of both houses of Congress, unemployment still remains high in most states.

Tea Party Influence
Another aspect of the political canvas across the country is a movement called the Tea Party.  This movement looks to implement sweeping cuts in spending that they hope will bring the country out of its stale economy. Lately, the Tea Party has been expressing its disdain for House Speaker John Boehner. Judson Phillips has been the most verbal of the bunch and has made it known that John Boehner can easily be replaced if he does not follow the same sentiment as the Tea Party. Many political experts believe that it may have been because of the Tea Party that Boehner waited so long to come to a deal.