Monday, September 23, 2013

Government Shutdown is About Negotiation Dynamics

I am delighted to report that the House of Representatives voted 230-189 in favor of continuing funding of the federal government but defunding Obama's health insurance law.  If Obama vetoes the bill, the federal government may shut down.

The main reason the government shutdowns during the Clinton Administration failed was because the GOP bought into the Democratic Party/press's narrative.  They agreed to weaken their own budget, thus giving the Democrats incentive to drag out the shutdown even longer in hopes of further concessions.  The most logical thing for the GOP to do in a future government shutdown is to turn the negotiation dynamics around by increasing cuts to the federal budget every week Obama refuses to yield.

In related news, the Energy Department gave a $42 million loan to a Michigan van company that has since gone bankrupt.  Once again, the Democrats proved themselves the Party of Hypocrites as survey suggests that only about 1/3 of senators pay their interns and most of them are RepublicansAnother report suggests that New York state's economy lost about $45.6 billion due to population outflow.  In light of out-of-control government spending, John Adams's warning seems very apt.

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