Immediately after Obama's reelection, I said,
"First of all, expect the fiscal cliff to stay in place. After all, we just re-elected most of the people who put it there to begin with. … Any compromise will include more tax hikes than spending cuts, if spending is actually cut at all."As it turned out, the fiscal cliff did not stay in place. The deal to avert the fiscal cliff included $250 billion in lower taxes compared to just $9 billion in higher spending, relative to what would have happened with no deal. At the time, I said,
"If you think that two month delay is a sign that the sequester will never happen anyway, I think you're right. It was never going to happen in the first place, and we lose nothing by delaying it."This was also wrong. Not only did the sequester actually come to pass, the continuing resolution recently passed by the Senate and House and signed by Obama also keeps it in place for the next six months. While the Senate budget for fiscal 2014 repeals the sequester, the House budget does not, leaving open the distinct possibility that the sequester's lower spending is here to stay.
Color me pleasantly surprised. Even a blog called Expected Optimism wasn't optimistic enough!