I mostly agree with you. I think the biggest problem was the Democrats let the Republics set the terms of the debate when they shouldn’t have. The Republicans repeated ad nauseum that in the 2010 elections the country was telling Washington it wanted to cut spending, where nothing could be further from the truth.
Obama does deserve some blame because he let them set the terms of debate when he didn’t have to. He got outplayed in the poker hand. The Republicans had told their Wall Street minders when all this started that they would not when push came to shove let the country default. And they wouldn’t have. Wall Street would not have let them. If it got to 11:00 Tuesday night Wall Street would have leaned hard on the Republicans to pass a clean debt celling bill. So it is partly Obama’s fault in that he blinked first. And more so in that back in December he should have insisted that a debt ceiling increase was part of the extension of the Bush/Obama tax cuts. Yet even after two years of experience telling him that the Republicans will never negotiate with him in good faith or put country above party, he continued to believe that Boehner should be taken at his word that he wouldn’t let the country default. (Well, as I said, I don’t think he would have, but he bluffed Obama into thinking he would.)
And I would say “Sometimes government can create jobs”? One of the right wing memes is that the government doesn’t create jobs. And I just don’t get it. I’ve never heard that idea explained or defended in any way that makes any sense. It strikes me as nothing more than an article of faith, like believing the earth is flat. I mean, around 16% of our total workforce works for the government at the federal, state, or local level. And millions more (all those Blackwater and Halliburton government contractors, for one) have jobs where they aren’t paid directly by the government, but their company gets most of its money in government contracts. I think it is much more true that the government is the most consistent and trustworthy job creator we have or ever have had.