The Democrats are increasingly willing to head right over the cliff Thelma and Louise style. Look at the post below this one. The American economy is in shambles and headed for a double dip recession. Europe is already in recession. The Democrats desperately want a scapegoat and will attempt to blame the Republicans’ unwillingness to negotiate on tax increases as the cause of the double dip. The media will happily promote this excuse and at least half the American people will believe it.
It suits their purposes anyway. The Democrats want desperately to raise taxes on the middle class. They know there isn’t enough revenue to be collected by tax increases on the wealthy alone. They need to raise taxes on the middle class. Of course Obama pledged not to do so and Democrats in Congress don’t want to vote tax increases on the middle class either. Blaming the Republicans for the fiscal cliff that automatically increases taxes on everyone suits their purposes.
The fiscal cliff’s sequestration provisions also allows Democrats to cut military spending dramatically without the need to vote the cuts. This serves their purposes as well.
I see one of two outcomes: The Republicans cave to Democrats and raise taxes in high earners or America goes over the fiscal cliff and crash lands in deep recession. Either way, Republicans lose and Democrats win.