Saturday, October 19, 2013

The Art of Negotiation--Government Style



The Art of Negotiation -- Government Style


The president said; “I won’t negotiate over paying our bills”;  an oxymoron.  By saying he won’t negotiate over a certain point IS negotiating…he is laying down a negotiating point.  It is obvious that he was negotiating by the end terms.  By negotiating he got what he most wanted; continued spending and gave up very little.


The proper answer to that would have been; I won’t negotiate the raising of the debt limit without some measures to address the cause and solutions to an ever growing national debt of $17,000,000,000 debt.

If that had been done, both sides would have staked out the first position.  Then the only question is who benefits by not blinking.


For this answer we have to find out what each side really wants. 

So what is it that both sided wanted?  The president wanted more spending and the opening of the partially closed government.  If he did not get what he wanted was he comfortable with the consequences of both parties not blinking which would have been default. 


What did the republicans want?  Unfortunately they assumed that they would get the blame for the default and this was their main “Want”!  Whether this is true or not, they believed it, so, in the end they blinked.

The key point in any negotiation is whether or not you are prepared to walk away from the deal.  The president was comfortable with walking away from the deal and defaulting, the republicans were not. 


Unfortunately for the country it is an unequal negotiation.  The president is perfectly willing to see the country hurt for political gain.  The republicans are not, or at least they do not want to be demonized by the media.

The president touted the fact that our deficit is the lowest in years.  I don’t quite see how this is possible, but if it is it is like an overweight person saying; “I know that I am 100 pounds overweight and it will eventually kill me, but look on the bright side; I am gaining weight at a slower pace than before!”


How does this play out?  It will take a tough dynamic leader to sell the tough solutions demanded, but  in the end we will likely not resolve the debt/default question until we actually default.  That will come when nobody will continue to lend us money to pay the interest on our debt.  Without tough solutions, this will happen.


Will we be the Roman Empire or not.  Stay tuned.  With the stakes this high it should be interesting.