Playing Cynical Politics

Politicians play politics as naturally as the Pope says Mass, but there is a difference between above-board and cynical politics. Now, both sides are playing both.

In above-board politics, a politician will push for what he's really for, whether it's tax-cuts or new taxes, more oil-drilling in the Gulf, or stopping it cold.

The dialog on tax cuts is fairly straightforward: the Republicans are for making the Bush tax cuts permanent, since they have enriched their primary constituency (and campaign funders), the very wealthy. The increase in holdings of the top 1% of income classes, and even the top 0.1% since Bush cut taxes is phenomenal.

Obama is also straightforward when he opposes the extension of tax-cuts for the wealthy: an extension would cost $700 billion in the next ten years; he needs those funds to bring down the deficits; extending tax cuts would raise them. The wealthy are sitting on their riches, not investing in jobs, so losing those tax cuts shouldn't hurt job growth.

But Republicans are also against anything Obama proposes, including tax breaks they have championed for years for corporations. Why? Cynical politics. They are against any policy proposed by Obama, or Congressional Democrats. It doesn't matter if they were for precisely that policy beforehand: if he's for it, they're against it. This is true of Obama's healthcare, too. Most of the elements of the new law are similar to Massachusetts' health care law, signed by Republican Governor Mitt Romney--who now advocates repealing the national legislation!

Up until now, it looked as if Obama was trying to promote compromise, by incorporating Republican elements (as in the health care bill) to gain bipartisan support, but now he's playing cynical politics, too. His economic proposals are not really short-term stimulus programs: they are dares. Making the R&D tax credit permanent, would not generate many new jobs, although Obama claims it would, but it does call the Republicans' bluff.

Obama is about to call for a two-year corporate investment tax credit allowing 100% write offs on investments in plant and equipment. The R&D proposal would cost over $100 billion, the write offs could cost $300 billion.

But why would corporations invest in plant and equipment, when there is lagging demand for goods and services? So, they can lay off more workers, perhaps. Neither proposal would generate many jobs, but Republicans have advocated for both, yet will block both; they don't want Democrats to get the credit: (cynical politics).

Then, Obama could highlight their obstructionism and say; Republicans even block their own proposals to stimulate the economy. This is cynical politics: would Obama propose tax credits, if he thought they would pass?

Meanwhile, businesses squeeze profits from fewer workers and don't hire, while nearly 20% of the workforce isn't working.

Which cynical politics will work best?