It looks like some kind of debt limit deal will get done.
It turns out that Biden is good at this.
Biden is preserving America's status of a reliable country. Biden is preserving "normal." He isn't publicly celebrating or spiking the football. He is letting Kevin McCarthy do that.
Republicans don't really want to cut spending on anything specific. They love defense spending, Medicare, Social Security, infrastructure spending and nearly everything else that costs money. What they want is to say that they won and owned the libs.
Let them.
The debt deal reflects approximately what would have been worked out in any sort of normal budget appropriation push and pull. The debt deal contains a bit of tinkering around the edges on work requirements for nutrition benefits, student loans, IRS spending, and future caps on spending.
Republicans are going to complain, but they can celebrate that there will be fewer IRS audits of their donors and that they made life a little harder for some undeserving people. Democratic complaints are an essential part of the performance to assure Republicans that they won big. The simple reality is that no one should expect to win big. If Democrats expect New Deal-type increases in the social safety net, they need to elect New Deal-type majorities.
Democrats have a skin-of-the-teeth majority in the Senate, possible because Joe Manchin from a conservative fossil-fuel state is an essential vote. No one should be surprised that there is an earmark pork allowing the go-ahead of the Mountain Valley Pipeline stuck in the proposed deal. Climate activists are outraged. People in West Virginia think otherwise, and -- unfortunately for Democrats -- Joe Manchin is the very best that Democrats can hope for in a West Virginia senator. Half-a-loaf deals are what one gets when one has narrow majorities. Democrats are unhappy. So are Freedom Caucus Republicans.
Biden has demonstrated what he is good at. He worked out a compromise deal. He has the talents of a senator. He let others win on some points and save face. In 2020 Americans voted for normalcy, not high drama, and that is what they got.
The budget deal also defines the two political parties. Democrats are the grown-ups. Republicans are the risk-chaos party. The GOP is split between business people, social conservatives, and populists. Social conservatives in the coalition are more focused on abortion and gender than on debt default, but they are suspicious of secular elites right along with the populists. They are swept along in agreement, led there by Trump. However, big business and Chamber of Commerce Republicans understand that they have chaos agents in their party. In the past the factions could get along, uncomfortably to be sure, but with a common purpose of lower taxes and smaller government. That era is over. Populists like big government. Populists dislike financial elites and secular cultural elites.
The New York Times' David Frum called it win-win for Democrats and Republicans:
McCarthy wanted a win on principle: use of the debt ceiling as a weapon. Beyond that, his caucus could not agree on specific demands.
Biden yielded on principle, which opened the way to prevail on the substance. Each got what he most wanted. Win-win
Not so. This is a loss for Republicans. Financially sophisticated people understand that using the debt ceiling as a weapon is a gun to one's own economy. Republican populism is dangerous. Trump lit a fire and is feeding it. The movement is bigger than Trump now. It isn't the party of Romney, Pence, McConnell, or even Kevin McCarthy. They are the establishment, and they lost control. GOP populism is a bull in a china shop. The business wing of the GOP owns that shop.
[Note: to subscribe to the blog and get it delivered by email every day go to: https://petersage.substack.com Subscribe. The blog is free and always will be.]