Debt Default Threat Splits Right As Heritage Foundation Group Folds
As we enter day 10 of the government shutdown it seems all is not well on the right regarding the threat of defaulting on America’s debt. Heritage Action, a sister group of the Heritage Foundation, is not lining up behind the crowd within the conservative movement who claim defaulting on the debt is no big deal. Heritage Action’s CEO has bailed on tying a debt ceiling vote to defunding Obamacare.
Michael Needham, CEO of the powerful group Heritage Action, said that he opposed conditioning a crucial vote to increase the government’s borrowing authority on the group’s main goal: defunding Obamacare.
Under questioning at a breakfast with reporters, hosted by the Christian Science Monitor, Needham, a product of the Stanford Business School, conceded that failure to raise the debt ceiling would indeed disrupt the global economy. “I’m sure the markets will react negatively,” he said, even if, as he suggested was possible, the Treasury could “prioritize” interest payments to foreign bondholders.
Et Tu Needham? When the Heritage Foundation is slowly backing away from you perhaps you have gone too far out on the ledge. Though we will learn on (or sometime before) October 17th just how far gone the Tea Party that now effectively runs the House is.
Then again, there seems to be a larger movement afoot to pivot from defunding Obamacare to making the shutdown and debt ceiling fight about debt and deficits again.
With polls showing their party is suffering the brunt of the blame for the shutdown, many top Republicans are quietly moving past the Obamacare debate. Many Senate Republicans’ demands do not include changes to Obamacare, but rather cuts to Medicare, Social Security and changes to the Tax Code. House Republicans are also considering a short-term debt hike, but no one expects that it will be accompanied by changes to Obamacare.
So after all the screaming about Obamacare we are going back to cutting Social Security and Medicare and imposing even more disastrous austerity on the economy? I guess that’s what happens when everyone concedes the debate to the Tea Party. After one of their ridiculous ideas doesn’t fly they just propose some more. And somehow we are supposed to believe they are losing? Nonsense, they are controlling the debate.