Influence: Surviving the “Fiscal Cliff”

Though we had gone headlong over the “cliff” (technically) – we were saved in the 11^th hour by negotiations.  

According to a Pew poll, people think that President Obama “won” in that skirmish.  Interestingly enough,  only 38% approve of the results.  ABC News had similar results, with 52% of respondents approving how Obama dealt with the issue (vs. 37% who disapproved).  

But thinking about how all the various "influencers" were played out in this round of “who blinked first,” what were the results of the timing and gamesmanship?  

To arrive at a compromise, Republicans voted for taxes for wealthier Americans and Democrats had to back-off on who would be defined as the "wealthiest" (to bear this tax).  But the compromise didn’t touch income taxes, so – as CNN noted – most Americans will still feel it in their paychecks.  And the deal that was reached only delays for another 60 days what could still happen again.

It’s clear that the threat of global financial upheaval influenced both sides to reach a compromise, so that neither was happy with the results though they solved the problem – but it’s only temporary.   It appears that the continued polarization of the two parties is making it increasingly difficult for anything to get done in Congress.  Without imminent threats, the parties seem to bluster back and forth at one another through the media and nothing is accomplished – except the diminishing approval and increasing frustration of the American public. 

If there’s one thing uniting Democrats and Republicans, out in “grassroots” America, it’s frustration.  From CEOs to the general public, the public has had enough.  As CEO David Cote put it, “The compromise to avert the 'fiscal cliff' outlined by our leaders in Washington is a small step in the right direction, but overall it's a missed opportunity to revive our economy and show U.S. citizens, financial markets, the world and the business community that the U.S. can still govern effectively."  

When will the public’s disapproval and frustration have an influence over our representatives?  When will there be room, once again, for reasonable negotiations?   Are we only going to see action at the 11^th hour (and beyond) from now on? 

Only the influence of time will tell.