Wednesday, November 20, 2013

Why Do Today What You Can Put Off To Tomorrow?




Even the harshest critic might feel a wee bit sorry for poor President Obama. His administration’s flagship legislation, The Affordable Care Act (“ACA”), has hit the rocks. Not only is the web site not working but some Americans who are already insured have found that their policies do not comply with the legislation, thus cannot be retained.

In my last blog, I commented on the web site failures and that it was unreasonable to hold President Obama to the fire for its failings. However, the President is a lawyer and ought to have taken advice about the rights of American citizens to keep their existing health insurance policies to ensure that this promise was kept. Either he did not do so or his advisers failed him. It is a massive gaffe, whichever way you look at it.

One might think the Obamacare problem is an easy fix. Just add a clause to the act to the extent that if a policy does not comply with ACA, such failure may be waived by the insured. However, this might lead to another round of judicial argument, perhaps enabling the Supreme Court to overturn the Act. You have to admire the American judicial system, if you’re a lawyer.

I find it odd that no one has commented on the failure by the 535 legislators in Congress, not to mention the clerks, advisers and gofors, to spot the problem and fix it before ACA became law. Perhaps the Republicans were being crafty, keeping quiet and waiting for the hammer to fall. I don’t think so. Surely, the Republicans would have used the argument during the crisis to water down, even liquidate, the healthcare legislation?

Talking of the budget, here is an issue that might help the President recover popularity and straighten out his second term. Let me take you back to those heady days in October prior to the 17th of that month. Visitors to the States were denied access to the great sights from the Statue of Liberty in the east to Yosemite in the west. Thousands of federal employees were furloughed, initially without pay. Congress saw how unpopular it would become and decided to pay the employees for not working. You have to admire flexibility in legislators.

Then, on the 17th, Congress re-opened government and funded it through January 15th next year, and raised the debt ceiling until February 7th . The Republicans were given a bone, requiring people receiving federal financial help to buy insurance under the ACA to be honest about their income. A negotiating committee was set up to come up with a long-term budget plan by the middle of December to avoid another shut down next year.

I want to know what has happened since the Fiscal Deal. Oddly, the media who could talk of little else before 17th October have said and written virtually nothing. “Well,” I hear you say, “the legislators have till December 13th to come up with a plan.” True, but to make a plan, you need to talk first and people aren’t talking, at least according to ABC News. Instead they are expounding, not caring what their opponents say or think.

The deal needs to cover across the board spending cuts and agreement on ways to improve the economy. The US deficit, the gap between revenue and spending, is shrinking but this will not take pressure off legislators. Republican Congressman Paul Ryan said last week, “we’re trying to find common ground but we’re not there yet. The hard part is figuring out where we agree.” Reading between the lines, the current talks are nowhere and unless the legislators show some statesmanship, there they will remain, with the prospect of another shutdown, followed by another Continuing Resolution.

The President has a window to show his skills as a negotiator, to persuade his own Party members as well as the opposition that the wrangle last October did no one in Washington any good. It is not for the likes of me to suggest the details of a deal but in any negotiation, it is important for both sides to know they have given something to get something. Mr. Obama has an ace up his sleeve if he dare use it. Bill Clinton was an expert in negotiating budget deals. I would call him in to help.

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