Obama continues to blame the GOP, making speeches with apocalyptic remarks aimed at generating public support for his tax and spend policies. He seems to believe that if he can convince the public that raising taxes so he can continue to spend with no consequences, he can force the GOP to cave in. He seems to forget that the GOP already gave in on taxes during the Fiscal Cliff debates at the end of 2012. Their position is that they already allowed him to raise taxes, and now it is time to cut spending.
Regardless of who gets blamed in the short-term, history will place the blame squarely on Obama. Just as Bush gets blamed for everything that happened during his terms in office (the liberals blame him for everything bad that has happened so far during Obama’s time in office as well), Obama will take the blame for any problems that arise during his tenure. I don’t see the GOP giving in on the sequester spending cuts, and we still have the debt ceiling debate to come, which looks to be much more contentious. (Maybe Obama should have been in Washington last week working with Congress to try to find a compromise, instead of spending three days in Florida playing golf.)
The reality is that $85 billion per year in spending cuts is peanuts in terms of the size of the annual budget (about 2% or so of the >$3.5 trillion total annual budget). It really doesn’t matter. This is just politics and perception, not reality. The reality is that we need to start cutting spending by a sizable amount each year, or we will never, ever get out of debt, and sooner or later (sooner rather than later) our debt is going to overwhelm the entire world, literally.