Rosenstock to Politico: GOP Will Seek Leverage in Debt Limit Fight

In today’s edition of Politico – Washington’s leading source for political news – TRP’s Jason Rosenstock comments on the current economic climate and its impact on the upcoming debt limit debate. Politico reflects back on previous debt limit debates, noting that "big fights over lifting the debt limit in 2011, the 'fiscal cliff' in 2012 and the government shutdown in 2013 all helped derail previous periods of faster economic growth," with Rosenstock adding that “there will have to be an extraction of concessions of some sort from the president to Republicans to get the debt limit raised.”

​Politico: Cloudy economy rains on Barack Obama's parade

​The effect on business and consumer confidence could be serious. Big fights over lifting the debt limit in 2011, the “fiscal cliff” in 2012 and the government shutdown in 2013 all helped derail previous periods of faster economic growth. Brinkmanship took something of a holiday in 2014 but returned this year with the fight over funding the Department of Homeland Security. That may have been just a prelude to a much bigger fight this fall.

​“There will have to be an extraction of concessions of some sort from the president to Republicans to get the debt limit raised,” said Jason Rosenstock, a Washington analyst at Thorn Run Partners.

​​Obama’s approach in recent weeks — and on his current economic tour — has been to tout strong jobs numbers and hammer away at Republicans for what he describes as their “top down” approach to economic policy. This week he is focusing on GOP support for eliminating the estate tax. The White House also hopes positive feeling from progress in talks over a nuclear deal with Iran will also help boost the president’s approval rating.