I can't believe you guys are still arguing over the election. Or even any of the pre- or post- election issues. It's obvious that you're never going to agree.
My ex leans one way and I lean completely the opposite way. I was at her house and another common friend of ours was there arguing politics with them. My ex said to me, "how come you never argue about politics when you're here?" I said, "first of all, I'm a guest in your house. And secondly, am I going to change your mind?" She said, "no". I said, "then why would I waste my time arguing?"
Liberal Democrats and Ultra-Conservative Republicans have a completely different view of the universe. (And I use "Liberal" in the broadest possible sense because I don't see Obama as a liberal. He only seems that way as compared to the Tea Party right, but he's definitely right of center.) I would guess that their brains don't even function in the same way; certainly their psychological makeup is far different, although they all seek power. Because they have such a different view of the universe, they're never going to agree. Furthermore, newer members of Congress don't seem to recognize the fact that Congress itself was created out of a compromise, which is how we wound up with two houses. Unless one party dominates, nothing can be accomplished unless there is compromise. The far right refuses to compromise and the left gets criticized when they do. So for a number of years, we have had a "do-nothing Congress". They should ALL be ashamed as should the people who voted for these clowns.
But there is one thing that is a clear fact. Obama won the election for a second time and Republicans have lost the popular vote in five out of the last six presidential elections. If Republicans don't change and appeal to more people, they are going to be marginalized in Presidential elections whether you believe they have a better plan for the country or not. House elections are a different matter because they're so localized, so in those elections, Republicans can appeal to a conservative base and still win. The problem is that a Democratic executive branch and a Republican House means that nothing gets done.
The other factor is that while the deficit is still very large and will be for the foreseeable future, this really doesn't impact people on a day-to-day basis. What does impact people are prices, employment and taxes. And the fact is that the economy is actually improving. Unemployment is falling and home prices and housing starts are rising. And for all the crying, corporate profits are at an all time high. While there are few jobs for unskilled workers except in low-paying jobs in the service industry, there are plenty of jobs for highly skilled technology workers. (Of course, workers are still getting screwed in that real wages haven't increased, but they've been getting screwed for 30 years across both Republican and Democratic administrations.) About a week before Bush left office at the end of 2008, the Dow was at 8776. It's at 14,400 today. In spite of the deficit, that's going to make it harder for a Republican to make a case for conservative economics.
The other factor is that with the baby boomer population aging, they're going to be reluctant to give up the benefits they've already paid for. So someone who has paid in $200K over 40 years into Social Security and Medicare are not going to support politicians who are ready to take away those benefits. And the baby boomer population is the largest portion of the population. So Republicans will have to make a better case to reduce those benefits if they want to win elections. That's going to be very hard to do. About the only thing they might be able to accomplish is means testing, but it's going to have to be a much higher number than they've been talking about. Social Security beneficiaries already have to pay taxes on some SS earnings at very modest income levels.
So in my view, if conservative Republicans stick to "principles", they'll continue to win elections in the House and some elections in the Senate, but they'll never win the Presidency. They have to decide what kind of party they want to be: a doctrinaire party or one that appeals to the greatest number of people. I don't think the current crop of Tea Party Republicans would even let Eisenhower, Nixon, Reagan or Bush I in the party. Those presidential winners could never get past a Republican primary these days.