Just when you thought that 'ol Hope 'n Change couldn't blunder any more politically he does it again. He agrees with the Republicans to extend the Bush tax cuts for 2 years in exchange for another unemployment benefits extension. So why is this such stupid politics?
1. Obama ran on a promise to repeal these tax cuts. He now has broken this promise to his base while in essence denouncing his breaking of his promise. For him to reverse course in 2012 and support renewal of the tax breaks that he opposed, then ratified while denouncing will be deeply dispiriting to his base and once again damage his credibility. Yet because he compromised on them, he can't present his opposition as a matter of 'principle'. Whatever he does he can be portrayed as a flip-flopper.
2. The tax cuts expire right after the 2012 election, making them an election issue that Democrats will be forced to run on or betray their President when he most needs their support.
3. It is an oft demonstrated fact that extending unemployment benefits depresses employment. This means that the 2012 election cycle unemployment will be significantly higher than what it would have been had the benefits expired.
So let's review the bidding: Democrats will be forced to run on (tactical, unprincipled) tax increases or betray their President. And what did they get for such a boon? The opportunity to run in an economic environment with higher unemployment.
Clearly they only take the 'cream of the crop' at Harvard.
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