Name-calling aside, let's review why the debate over this particular debt ceiling increase was so intense. First, this is the biggest debt ceiling increase in American history (taking the place of the previous biggest increase in history, which was also instituted under President Obama). Why so big? One reason: it gives President Obama a free ride beyond 2012, eliminating one more reason for his opponents to interrupt his campaign speeches to debate Washington's spending addiction. Additionally, and more importantly, several credit rating agencies had threatened to downgrade America's AAA bond rating if the debt deal wasn't done in a manner that addressed America's spending and deficit sufficiently over the long term. These are bond rating agencies, mind you, not Tea Party Terrorist Sleeper Cells. So, call the Tea Party what you want, but they were simply trying to be the grown ups in the room and do something that gave our country a realistic shot at preserving the AAA rating. The first bill that those homegrown terrorists produced was the "Cut, Cap, and Balance" bill. It actually met S&P's and Moody's criteria for preservation of the AAA rating because it reduced spending by more than the $4 trillion benchmark that was required while passing a debt limit increase. In fact, it's the only bill that purported to do so.
Now that the revised Boehner plan passed, Moody's was gracious enough to confirm our AAA rating, but still assigned a negative outlook on America's fiscal future. Fitch's and S&P have yet to confirm our rating, but instead say that they are uncertain if we've done enough to address the problem. Translation: We've averted the immediate crisis and successfully kicked the can down the road.
Many in the tea party are upset with this bill, and understandably so. They want drastic reductions in spending, budget cuts, deficit reduction, a flat tax, energy independence, a return of the gold standard, and a complete change in the way Washington works, and they want it NOW! Unfortunately (or fortunately) that's not how Washington works. They have to realize that we're turning a boat, nay, a corporate-owned, jet-carrying yacht around here. Progress will be slow.
