At the beginning of July, the state of Minnesota began a government shutdown over budget cuts demanded by the Republican led legislature and their rejection by Democratic Governor Mark Dayton. On July 14th, Governor Dayton flinched in the fiscal game of chicken, and House Republicansin Washington should take note of this parallel and stand firm on spending cuts in their battle against the White House over raising the debt ceiling.
Governor Mark Dayton said today that he’ll agree to an offer submitted by Republicans on June 30. The plan would extend the K12 school shift by $700 million and borrows $700 million against future tobacco borrowing.
“I am willing to agree to something that I don’t agree with,” Dayton said.
Dayton is at odds with the GOP controlled Legislature over the best way to erase the state’s $5 billion projected budget deficit. Dayton has said he prefers to raise the income tax on Minnesotans who earn $1 million or more a year but is open to other options like raising taxes on cigarettes or alcohol. – Minnesota.PublicRadio.org
The legislature in the state of Minnesota was willing to allow a government shutdown to take place to stand firm in their belief that spending cuts, not additional taxes, were necessary to begin covering a nearly $5 billion shortfall. It is ironic that during these past two weeks, Governor Dayton took his budget proposal and PR campaign directly to the people, and their rejection of him led to his willingness to give into Republican demands.
The irony of course is the parallel to President Obama, who just this week told House Republican leaders that if they don’t bend, he will take his proposals on the debt to the American public.
“The president told me, ‘Eric, don’t call my bluff. You know I’m going to take this to the American people,’ ” Cantor said. “He then walked out.” – Washington Post
More and more, this debt crisis and ongoing recession is being seen as ‘Obama’s Depression’, and no longer can it be blamed on the prior administration. Public support is not in favor of the President, as new poll numbers show his popularity continuing to decline, especially in regards to the economy.
House Republicans did not call the Presidents bluff earlier in the year when the threat of a government shutdown was on the table, but now the situation is more dire and over the last several months, neither side has been able to pass a fiscally responsible bill to cut spending, and curb the increase in debt. As with events taking place in the state of Minnesota, where a government shutdown has now forced a Democratic governor to capitulate to the desires of a Republican legislature, so to should the House Republicans take heed and force the President to make a difficult choice in accepting real spending cuts, or risk a government default on the countries debt obligations.