HOPES WERE high Friday, when President Obama was expected to propose a new compromise plan to prevent the nation from going over the year-end “fiscal cliff.”
Unfortunately, what he offered Republican leaders who came to the White House was more of the same — his way or the highway.
Or, to keep the metaphors consistent, the bottom of a deep ravine.
That’s a big disappointment.
Not surprisingly, America’s financial markets responded to the president’s lack of leadership and deal-making ability with a thud.
The Dow Jones Industrial Average finished Friday with a loss of 158.20 points, or 1.2 percent, to close at 12938.11 for its fifth straight decline. The Dow has given up 373.61 points during this five-day dip.
Investors, like many Americans, have little confidence in the president and all politicians — Democratic and Republican — in averting the automatic tax hikes and budget cuts, which will take effect if leaders from both parties can’t strike a last-minute deal.
Mr. Obama on Friday called on the GOP to support his plan to let taxes rise on incomes over $250,000 a year or offer an alternative that could win Democratic support. This proposal is essentially the same plan he has pushed all along, one that has been a non-starter in the GOP-controlled House.
There had been hope that the president would scale back on tax hikes, limiting them to those who earn more than $400,000 annually. Senate Minority Leader Mitch McConnell said repeatedly Thursday that he was expecting something new from the president Friday, and that he was prepared to review it. Alas, that didn’t happen.
Instead, Mr. Obama insisted that the package he outlined in a news conference Friday would pass both the House and the Senate if Republican leaders would stop blocking it. That’s like playing chicken at the worst possible moment.
As leader of a nation that’s almost evenly split between Democrats and Republicans, Mr. Obama shouldn’t be calling for all or nothing. He should propose a compromise that both parties can accept before time runs out.
After a little more than an hour of talks Friday with the president, House Speaker John Boehner and House Minority Leader Nancy Pelosi were seen leaving the White House without speaking to waiting reporters. When neither of these two seek out the cameras and microphones, that’s a bad sign.
However, there’s still time. The House was expected to reconvene Sunday evening. With lawmakers and Mr. Obama all back in Washington, they can play this high-stakes game of “Let’s Make a Deal” right up to the first tick of the new year on Tuesday.
Perhaps some of what is taking place is political theatrics — just another example of elected leaders milking the clock to score points. If so, may they choke on their polls.
Consumer confidence is fading; the economy is getting more jittery. It’s time for the president to lead and for Democrats and Republicans to cut a deal.