How Liberals Killed The 'Grand Bargain'

The "Grand Bargain" — the mythical agreement between Democrats and Republicans to cut entitlement spending — has died.

The cuts to Social Security that were included in President Barack Obama's budget last year were viewed as a necessary olive branch to Republicans at the time. Many Democrats in Washington, including the President, thought it should be on the table to strike a deal — the elusive "grand bargain" on the budget.

A year later, the paradigm has completely swung. Obama will drop the proposal from his budget this year. Led by Sens. Tom Harkin (D-Iowa), Sherrod Brown (D-Ohio), and Elizabeth Warren (D-Mass.), many Democrats now not only oppose the cuts, but also favor an expansion of Social Security benefits. 

"It is really amazing how much the conversation has shifted," one Senate Democratic aide told Business Insider.

Key members of both the House and Senate Democratic caucuses — including Senate Majority Leader Harry Reid and House Minority Leader Nancy Pelosi — applauded Obama on Thursday for removing the proposal from his budget. 

A lot of the credit, people on and off the hill say, goes to outside progressive groups who began the momentum against the "chained CPI" cost-of-living adjustment, which cuts Social Security benefits by recalculating the growth of benefits with an index that doesn't rise as quickly as inflation. 

Though many Democrats in Washington were willing to sacrifice the cuts in the name of the "grand bargain," progressive groups never thought they should be on the chopping block. In turn, it took much of Washington until Thursday to realize that the elusive grand bargain was finally dead after a four-year run.

The progressive groups say that they were bolstered by the dose of reality outside Washington, and by vast opposition to the cuts from Americans.