Tags: Sanghoee | Obama | shutdown | government

Banking Expert: Obama Should 'Let the Government Shut Down'

By    |   Tuesday, 17 September 2013 08:21 AM

President Obama has an opportunity to permanently break Washington's political logjam.

He needs to do just one thing: "Let the government shut down," argues banking expert Sanjay Sanghoee.

Republicans controlling the House hope to use the threat of a government shutdown to further cut government spending. Some also want use it to defund Obamacare.

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Obama should call their bluff.

Even if the House temporarily funds the government, the same fight over raising the debt ceiling will return year after year, repeating the "ugly hostage-taking drama," he writes in a blog for The Huffington Post.

By forcing the GOP's hand, Obama can stop the pattern of Washington lurching from crisis to crisis.

A government shutdown may be the Republicans' biggest weapon, but after it's used once, it can't be used again in the near future "without severe political carnage," Sanghoee argues. "Getting rid of this Democles' Sword hanging over his administration would benefit Obama on all issues, not just fiscal ones."

Further, Republicans may take more of the blame for the shutdown, he says. In the 1995 government shutdown, President Clinton was perceived as the winner over Republicans.

Both parties can recover since the next mid-term elections are a year way, he notes. "But I predict that the Republicans will take a more permanent hit — largely because of their sustained obstructionism over the past five years."

Moreover, Obama could eliminate the continual threats of government shutdowns by letting it happen and improve the style of governing in Washington by demonstrating his resolve in not succumbing to political blackmail.

"A shutdown would also show the Tea Party base of the GOP, which is driving the push for steep budget cuts at all costs, how damaging the politics of extremism can really be," Sanghoee states, adding that a shutdown would teach the public what a shutdown would mean to them personally.

Conservative Republicans rejected a proposal to fund the government through mid-December, even though it cut spending, because it did not defund Obamacare. Republican House leadership, who backed the proposal, hoped to put the onus on the Senate for defunding Obamacare.

A CNNMoney pole indicated that only a third of Americans would blame Obama for a shutdown while over half, or 51 percent, would blame Republicans, an increase from 40 percent earlier this year, according to CNN.

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President Obama has an opportunity to permanently break Washington's political logjam. He needs to do just one thing: "Let the government shut down," argues banking expert Sanjay Sanghoee.
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2013-21-17
Tuesday, 17 September 2013 08:21 AM
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