Dean Baker: After Budget Deal, Time to Move Forward

President Obama and the Democratic leadership in Congress deserve credit for successfully fending off Republican efforts to first torpedo the Affordable Care Act and then to attack Social Security and Medicare. Unfortunately, it does not appear that they are prepared to seize on the momentum and try to repair some of the damage that is being done by the prolonged downturn.

The problem is that the Democrats still seem to accept the Republicans’ parameters for the budget debate. The implication is that current deficits are a serious problem. This means that any area where there is an increase in spending must be offset by cuts elsewhere or tax increases. Since the Republicans remain adamantly opposed to any tax increases, reshuffling spending is the only option open to the Democrats.