Grand Bargains

Tyler Cowen, an economist, contemplates the possible S&P downgrade of U.S. debit and opines:

The Republican Party made a big, big mistake passing up a chance for a “grand bargain” with Obama. It’s time to be a realist about revenue increases, rather than signaling ideological purity.

I'm unclear
on his logic here.

Of course the Republican Party is not a monolith. There were elements in the party who seemed willing to be "realists" and raise taxes. It was the newer reps, the tea party people, who were dead set against it - partly on principle, and maybe partly because they want to get re-elected.

At this point, the numbers look bad for the Democrats in 2012. It's early, of course. But perhaps the Republicans were wise to hold off on a grand solution. In a year and a half they could be in a much stronger bargaining position.

I'll vote yes
for "spend less".

UPDATE: The S&P downgrade has occurred.