If Mr. Obama wants to avert a fiscal crisis and win re-election in 2012, he needs House Speaker Nancy Pelosi to be removed from her powerful post. A GOP takeover may be the only way. Given the deficit-and-debt mess that Mr. Obama has on his hands, a Republican House would be a godsend. A Republican Senate would help, too. A Republican majority, should it materialize, could be counted on to pass significant cuts in domestic spending next year—cuts that Mrs. Pelosi and her allies in the House Democratic hierarchy would never countenance.
Well – we know that a Republican majority would never agree to tax increases. Steve Benen, however, reminds us that having both a Republican White House and Republican majorities in both houses of Congress wasn’t exactly the recipe for fiscal responsibility just a few years ago. But let’s suppose we did get massive reductions in domestic Federal spending. Maybe we should just turn the microphone over to Brad DeLong to explain why “we need bigger deficits” now.