| It 
                      is tempting to describe last week�s Congressional battle 
                      over the budget as a spectacle with lots of theatrics reflecting 
                      little more that jockeying for political position. That 
                      would be a mistake. It was much more than that. It involved 
                      weighty substance bearing on the future economic well-being 
                      of millions of people, particularly working people. Perhaps 
                      even more importantly, the future of democracy was also 
                      at stake.  And 
                      still is.  Someone 
                      on television said last week that the bill bearing the name 
                      of House Speaker John Boehner �gave� President Obama an 
                      increase in the debt ceiling. Actually, it was neither the 
                      House Republicans� to give; nor was it Obama�s to receive. 
                      The ceiling has been lifted 77 times since 1917 and it was 
                      never a gift to anybody; it has been a normal process of 
                      government. Never before has the process been a successful 
                      tool for crude extortion.  If 
                      the people who set the Tea Party in motion and sustain it 
                      want a mandatory �balanced budget� there is a democratic 
                      way of going about getting one; introduce specific legislation. 
                      They wouldn�t take that route. Theirs is an awful idea, 
                      it would unlikely ever become law, and more people are coming 
                      to realize that what�s being proposed is just another slimy 
                      maneuver to go after � amongst other things - Medicare, 
                      Social Security and Medicaid.  Some 
                      polls do indicate popular support for a balanced budget 
                      amendment. A lot has to do with how the question is placed. 
                      Responses shift when people are asked whether they favor 
                      such a thing if it means slashing Medicare, Social Security 
                      and Medicaid, or reducing education funding or doing nothing 
                      to stimulate the economy and create jobs.� Another part 
                      in this is the demagoguery about the Federal budget being 
                      the same as one�s household budget, a mythology the President 
                      himself has buttressed with his folksy kitchen table allegories. 
                       
 �Countries' 
                      debts are not like individual households; they can be serviced 
                      over generations,� commented the British newspaper, The 
                      Guardian Sunday.� �In the aftermath of a credit crunch, 
                      a country that tries simultaneously to cut public and private 
                      debt will suffer prolonged economic stagnation or depression. 
                      The cost in lost opportunity, broken lives and busted businesses 
                      is too high to slash public debt; indeed, the right action 
                      may be to increase it.� In 
                      the end, the reactionaries didn�t get everything they longed 
                      for last week but the country got shafted nonetheless. And 
                      there�s more to come. The 
                      economy is in dreadful shape � 14 million people are jobless 
                      - and there�s little hope for significant improvement any 
                      time soon. Indeed, many economists are saying there�s little 
                      more than darkness in the tunnel. This problem wasn�t addressed 
                      in Washington last week, it won�t be addressed next week 
                      as the politicians prepare for vacation, and there is every 
                      reason to believe what they just did is only going to make 
                      matters worse. �It also hobbles the capacity of the government 
                      to respond to the jobs and growth crisis,� economist Robert 
                      Reich wrote Monday in his blog. �Added to the cuts already 
                      underway by state and local governments, the deal�s spending 
                      cuts increase the odds of a double-dip recession. And the 
                      deal strengthens the political hand of the radical right.� Last 
                      Saturday morning, the New York Times said editorially, �Now 
                      the only hope left for avoiding default on Tuesday is for 
                      the Senate to piece together a compromise that can pass 
                      with bipartisan majorities in both chambers. It will undoubtedly 
                      cut far too much, at a time when the economy can�t afford 
                      it. It will contain no needed revenue increases and could 
                      still trigger a downgrade. But it would eliminate the imminent 
                      threat of financial chaos.� Then, in the afternoon, as it 
                      became clear during Senate debate what the price might be 
                      (and was, as it turned out) to avoid chaos, the paper posted 
                      the next day�s editorial online. It argued that there was 
                      no reason to believe that absent action by the government 
                      �conditions will turn around anytime soon.� 
 �Indeed, 
                      they are bound to worsen if Congress approves deep near-term 
                      spending cuts as part of a debt-limit deal while letting 
                      relief and recovery measures expire,� the editors said. �We 
                      will leave it to the historians to figure out how both political 
                      parties, and many Americans, became convinced that austerity 
                      is the road to recovery,� said the Times. �History provides 
                      evidence that it is not, including the premature budget 
                      tightening of 1937 that reignited the Depression.� No 
                      need to put the weight on historians. The warnings have 
                      been sounded over and over again, by some of the Times� 
                      own political and economic commentators. But overall, the 
                      major media has been woefully derelict and dissenting voices 
                      from the left side of the aisle have been shut out almost 
                      completely. 
 �What 
                      is at stake is a radical Republican agenda to totally reverse 
                      the progress in economic justice that began with the great 
                      reforms of Franklin Roosevelt and his New Deal,� wrote Robert 
                      Scheer on TruthDig.com July 27. �Consider the direct consequence 
                      of the economic crisis that unfettered Wall Street greed 
                      has wrought, particularly in reversing the gains made by 
                      the most underprivileged sectors of the population.�� Scheer 
                      went on to reference the statistics released last week underscoring 
                      the devastation that the current economic crisis has visited 
                      upon working people and the disproportionate burden borne 
                      by the women, men and children in African America, Latino 
                      and Asian communities.  On 
                      July 27, Dean Baker, co-director of the Center for Economic 
                      and Policy Research (CEPR), wrote on Al Jazeera: �Policy 
                      debates in Washington are moving ever further from reality 
                      as a small elite is moving to strip benefits that the vast 
                      majority need and support. The battle over raising the debt 
                      ceiling is playing a central role in this effort. �The 
                      United States is currently running extraordinarily large 
                      budget deficits. The size of the annual deficit peaked at 
                      10 percent of GDP in 2009, but it is still running at close 
                      to 9.0 percent of GDP in 2011. The reason for the large 
                      deficits is almost entirely the downturn caused by the collapse 
                      of the housing bubble. This can be easily seen by looking 
                      at the projections for these years from the beginning of 
                      2008, before government agencies recognized the housing 
                      bubble and understood the impact that its collapse would 
                      have on the economy. 
 ��Remarkably, 
                      both Republicans in Congress and President Obama have sought 
                      to conceal this simple reality. The Republicans like to 
                      tell a story of out-of-control government spending. This 
                      is supposed to be a long-standing problem (in spite of the 
                      fact that Republicans have mostly controlled the government 
                      for the last two decades) that requires a major overhaul 
                      of the budget and the budgetary process. They are now pushing, 
                      as they have in the past, for a constitutional amendment 
                      requiring a balanced budget. �It 
                      might be expected that President Obama would be anxious 
                      to correct the misconception about the budget, but this 
                      would not fit his agenda either. President Obama is relying 
                      on substantial campaign contributions from the business 
                      community to finance his re-election campaign.�  �In 
                      this respect, the crisis over the debt ceiling is the answer 
                      to the prayers of many people in the business community,� 
                      continued Baker. �They desperately want to roll back the 
                      size of the country�s welfare state, but they know that 
                      there is almost no political support for this position. 
                      The crisis over the debt ceiling gives them an opportunity 
                      to impose cutbacks in the welfare state by getting the leadership 
                      of both political parties to sign on to the deal, leaving 
                      the opponents of cuts with no plausible political options. �To 
                      advance this agenda they will do everything in their power 
                      to advance the perception of crisis. This includes having 
                      the bond-rating agencies threaten to downgrade U.S. debt 
                      if there is not an agreement on major cuts to the welfare 
                      state.� Baker 
                      described the battle over the debt ceiling as an �elaborate 
                      charade that is threatening the country�s most important 
                      social welfare programs.�� �There is no real issue of the 
                      country�s creditworthiness of its ability to finance its 
                      debt and deficits any time in the foreseeable future,� he 
                      wrote. �Rather, this is about the business community in 
                      general, and the finance sector in particular, taking advantage 
                      of a crisis that they themselves created to scale back the 
                      country�s social welfare system. They may well succeed.� Baker�s 
                      contention that both the Republicans and the Democrats were 
                      anxious to broker a deal that would slash (It�s called �reform�) 
                      Medicare, Social Security, Medicaid and the rest �leaving 
                      the opponents of cuts with no plausible political options,� 
                      goes right to the undemocratic nature of everything that 
                      occurred on Capitol Hill last week. And, 
                      it didn�t end over the weekend. There�s the new bipartisan 
                      commission (or �Super Congress�) that is supposed to sort 
                      this all out behind closed doors and come up with new recommendations 
                      by Christmas, to be voted up or down with limited debate 
                      and no amendments allowed. This time, if the backroom plotters 
                      can�t agree, the cuts will occur automatically.  There 
                      is renewed talk of meeting the goal of the �the President�s 
                      deficit commission.� But there is no such commission goal. 
                      The National Commission on Fiscal Responsibility and Reform, 
                      headed by Alan Simpson and Erskine Bowles, failed at its 
                      task, its� elite, handpicked 17 members couldn�t agree and 
                      they issued no report. But it won�t die. Give it a little 
                      jolt and it springs back to life, like Dr. Frankenstein�s 
                      monster.  Central 
                      to the defunct commission�s co-chair�s �goal� is the slashing 
                      of Medicare and Social Security. Not wanting to acknowledge 
                      that there is nothing close to a national consensus on doing 
                      such a thing, members of the Washington-Wall Street, elite 
                      who are hell-bent on eviscerating the post-war social compact, 
                      keep the myth of a commission report alive as a template 
                      for each of their efforts. And the major media, either out 
                      of collusion or ignorance, keeps the myth alive. 
 And 
                      now they are going to try again.  Firedoglake.com 
                      calls the 12-member Super Congress a � Catfood Commission 
                      on steroids - tasked specifically with cutting Social Security 
                      and Medicare benefits over the next few years� designed 
                      �to make it easier to fast-track wildly unpopular benefit 
                      cuts into law while shielding those who vote for cuts from 
                      accountability.� As 
                      Robert Borosage of the Campaign for America�s Future warns, 
                      �The raw deal sets a precedent that Republican leaders are 
                      already celebrating: from now on, they boast, every debt 
                      ceiling vote will be the occasion for holding the economy 
                      hostage to more extreme demands. A balanced budget constitutional 
                      amendment. A two-thirds vote for any tax hike on the rich. 
                      Privatization of Social Security. The demands will get more 
                      extreme over time.�  One 
                      thing the past week�s events put to rest is any notion of 
                      transparency. It�s been all backroom shuffling by elite 
                      players. Even members of Congress have complained of being 
                      kept in the dark. It is therefore little wonder that, as 
                      Stanley Greenberg wrote in the Times Sunday, lots of voters 
                      tune out the politicians� and express sentiments like these: 
                      �It�s just words� and say things like:
 �There�s 
                      just such a control of government by the wealthy that whatever 
                      happens, it�s not working for all the people; it�s working 
                      for a few of the people.� �We don�t have a representative 
                      government anymore.� The 
                      �bipartisan� measure cobbled together in Congress over the 
                      weekend did not, thank the lord � for now - do the dirty 
                      deed on Medicare, Social Security and Medicaid. Although 
                      you wouldn�t know it relying on the major media, much of 
                      the credit for that is due to grassroots action by senior 
                      advocacy groups, unions and others, and sustained resistance 
                      from parts of the Democratic Party leadership, especially 
                      members of the Congressional Black and Progressive caucuses. 
                      But the battle has only just begun; the slashers have set 
                      the stage for doing it later - by hook or by crook. 
 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. |