Tag Archives: gang of six

By William K. Black

In July 2011 President Obama and Speaker of the House John Boehner were on the verge of agreeing to the “Grand Bargain.”  The Grand Bargain was not finalized, but its key terms were agreed to.  It involved massive cuts in social programs and the safety net, modest increases in tax revenues, and an increase in the debt limit.  It was a massive austerity program of the kind that was hurling the Eurozone back into a gratuitous recession.  U.S. unemployment was 9.1% in July 2011 and the austerity package and resultant recession would have caused unemployment (and the deficit) to grow.  Unemployment would have been over 10% and rising in the run up to the 2012 election.  Obama would have further enraged Americans by cutting many popular programs and betraying the Democratic Party’s crown jewels – the safety net – in return for far smaller in revenues from the wealthy.  Instead of solving the supposed deficit and debt crises the austerity-induced recession would have likely caused the deficit and the national debt to grow.  Continue reading →