In the Aftermath of the Mid-Terms Compromise Rules the Day

Two situations which have developed out of the ashes of the Democrats' mid-term defeat point to both changing winds in Washington and a new taste for collaboration which could greatly impact the economy for years to come. The first is the likely tax deal which would see the Bush-era rates remain, likely for two or three years for all while tacking on an important liberal piece extending jobless benefits. The second is the deficit reduction panel (formally the National Commission on Financial Responsibility and Reform), an entity which could guide future budget decisions and will take on more importance if the aforementioned tax deal, and its associated reduction in revenues, passes.

Both are important efforts that will take the work of both sides to get right; neither would likely have gained traction before cooperation was forced upon Congress. The lesson? It is one that has been learned and forgotten many times before; our leaders do better work when they are forced to collaborate. Unfortunately this lesson has not been forgotten for the last time...

UPDATE: It looks like the tax deal noted above made it. Let's now hope that the deficit reduction panel's voice is heard to ensure that we can someday pay the piper...