President Obama spelled it out for
us Saturday. During his weekly radio address, he said the
country needs “a balanced strategy” with shared sacrifice,
and for “everyone to be willing to make decisions that are
not popular.”
The
President’s remarks underscored the contention of some observers,
including leading economists that the White House has bought
into the Republican argument as to what is wrong with the
economy – why there are 14 million people looking for work
at the same time. His reference to the employment crisis
was this: “Through cooperation and a bipartisan approach,
we can get our economy on firmer ground and give our businesses
the confidence they need to create more jobs across the
United States.” The
reason for the jobless level is not “confidence” on the
part of capitalists, critics say, but rather the fact that
people aren’t buying enough of what their companies make
or the services they render.
Former Administration economic advisor
Jared Bernstein wrote in his blog Sunday that “consumer
spending is way down and it’s not getting much of a boost
from jobs and paychecks, which means that fiscal stimulus
is about the only game in town, or it would be if policy
makers weren’t spending practically every waking minute
on budget cuts.”
“To get our fiscal house in order,
we must cut spending, but we must also close tax loopholes
for special interests and ask the wealthiest Americans to
pay their fair share,” the President said.
“We shouldn’t put the burden of deficit
reduction on the backs of folks who’ve already borne the
brunt of the recession,” the President said. “It’s not reasonable
and it’s not right.” He then went on to propose precisely
that. “If we’re going to ask seniors, or students, or middle-class
Americans to sacrifice, then we have to ask corporations
and the wealthiest Americans to share in that sacrifice.
We have to ask everyone to play their part. Because we are
all part of the same country. We are all in this together.”
The problem is that working people
are already making big sacrifices, and closing tax loopholes
and ending the tax cuts the Bush Administration bestowed
on the wealthy is only “fair” in a relative sense.
Take,
for instance, education. If tax write-offs for corporate
jets are eliminated and those making a quarter of a million
dollars a year have to pay taxes at the rate they did only
a few years ago, and hedge fund managers start paying taxes
at the same rate as their secretaries, the already well-to-do
will still have little trouble paying their kids’ tuition
bills. But it’s getting harder and harder for the children
of working class families.
“The Center on Education Policy reports
that 70 percent of school districts nationwide endured budget
cuts in the school year that just ended, and 84 percent
anticipate cuts this year,” wrote New York Times
columnist, Nicholas Kristof, last Sunday. “In higher education,
the same drama is unfolding. California’s
superb public university system is being undermined by the
biggest budget cuts in the state’s history. Tuition is set
to rise about 20 percent this year, on top of a 26 percent
increase last year, which means that college will become
unaffordable for some.”
In short, the children of working
families are being priced out of the system.
“The immediate losers are the students.
In the long run, the loser is our country,” wrote Kristof.
Meanwhile, all across the country
social services, which largely benefit lower income women,
men and children are being cut back and people who made
them function are being added to the ranks of the unemployed.
The Administration is proposing to
reduce federal spending by something in the neighborhood
of $4 trillion; the Republicans want cuts amounting to about
$9 million. Both have Medicare - and possibly Social Security
- in their sites as areas for possible savings as part of
what Obama calls a “grand bargain.” Grand it might be but
for seniors and the disabled it would be anything but a
bargain.
Leading left activist, Carl Davidson,
called my attention last week to the view expressed back
in 1954 by Former President Dwight David Eisenhower. In
a letter to his brother, Edgar Newton Eisenhower, of Tacoma,
the general who warned us about the growing power of the
“military-industrial-complex,” wrote, “Should any political
party attempt to abolish social security, unemployment insurance,
and eliminate labor laws and farm programs, you would not
hear of that party again in our political history. There
is a tiny splinter group, of course, that believes you can
do these things. Among them are H. L. Hunt (you possibly
know his background), a few other Texas
oil millionaires, and an occasional politician or business
man from other areas. Their number is negligible and they
are stupid.”
Back then, the right wingers – with
whom bother Edgar identified -- didn’t have Medicare to
kick around but they went after Social Security and they
haven’t let up their efforts until this day. Substitute
the Koch Brothers or the Peterson Foundation for the oil
moguls and you get a sense of historical continuity. They
don’t give up.
Democracy is supposed to be the expression
of the will of the people. The high drama debt ceiling machinations
in Washington
these days is anything but that. All the politicians go
about declaring that they were sent to Washington
to do “big things.” “So I’ve put things on the table that
are important to me and to Democrats, and I expect Republican
leaders to do the same,” says Obama. “You sent us to Washington
to do the tough things. The right things. Not
just for some of us, but for all of us. Not just what’s
enough to get through the next election – but what’s right
for the next generation.
“So I’ve put things on the table
that are important to me and to Democrats, and I expect
Republican leaders to do the same.”
The idea behind the failed Report
of the National Commission on Fiscal Responsibility and
Reform (commonly referred to as Obama’s “own deficit commission”)
was that representatives of the country’s political elite
would come together and accomplish big things – like “reforming”
Medicare and Social Security on a “bipartisan” basis, meaning
nobody would take the blame. Now it seems Democratic and
Republican Senate leaders are considering a “fall-back position”
that is being looked at by Obama. The scheme would set up
a new 12-member congressional panel that would, by the end
of the year, seek to come up with a way of reducing the
deficit through cuts in entitlements and new tax revenue
sources over the next 10 years. Such a commission would,
according to one report, “circumvent parliamentary hurdles
more easily than regular legislation.” This would probably
involve a straight up or down Congressional vote without
the possibility of amendment.
Doesn’t sound very democratic to
me.
(Correction: in a recent column I
ascribed words to White House Communications Director Dan
Pfeiffer, when actually the remarks were made by senior
political adviser, David Plouffe. An embarrassing error.
Apology to Mr. Pfeiffer.)
BlackCommentator.com Editorial Board member
Carl Bloice is a writer in San Francisco, a member of the National Coordinating Committee of
the Committees of Correspondence for Democracy and Socialism and formerly worked for
a healthcare union. Click here to contact Mr. Bloice.
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