Obama can't negotiate under threat of default or shutdown because it sets (continues?) the precedence (that he sanctioned in the first place by negotiated on the debt limit last time?) that the minority can use hostage tactics to gain policy concessions. This is a unique moment where he has tremendous leverage that he must use. Instead of trying to win the current game, shift the stakes. What if he offers to negotiate on some portions of Obamacare (med device tax, maybe a 6 mo extension for individual mandate) IN RETURN for legislation that prohibits the hostage taking tactic from happening in the future. They would have to get creative but it would mean something that legislatively prohibits de or under funding an existing law as part of a CR and either elimination of the debt ceiling, since congress passes budgets that cause the debt in the first place or specific executive power to raise the debt limit. I'm not a budget policy expert so I'm not sure exactly how to craft the legislation but in concept, give a little on Obamacare to give Boehner a face saving move in exchange for a functional government. As a social liberal and fiscal centrist, and general Obama supporter, I would love to see part of his legacy be a return to a functional government.
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