Source: New Republic
Aug 2, 2011
Kara Brandeisky is an intern at The New Republic.
“Nobody should assume we’re going to have a debt-limit extension,” John Boehner warned. “If the vote were held today, it would not pass.” Sound familiar? This was Boehner in November of 1995, when he was the House Republican Conference chairman and his party was refusing to raise the debt ceiling unless President Bill Clinton agreed to a package of sweeping spending cuts. The big difference is that back then, Republicans backed down, whereas today they’re on the verge of winning major policy concessions in exchange for a deal. How did President Bill Clinton head off this threat where Obama failed?
The story begins in October 1995, when, in exchange for raising the debt limit, Republicans demanded $245 billion in tax cuts, welfare overhaul, restraints on Medicare and Medicaid growth, and a balanced budget within seven years. The GOP’s plan, argued Boehner, was “the only one […] certified to eliminate the deficit and save our nation’s future from bankruptcy.” But from the very beginning, Clinton would have none of it.