Obama proposes trillions in spending cuts

By Patrick Martin, WSWS>ORG
14 April 2011

President Barack Obama outlined plans Wednesday for slashing $4 trillion from the federal budget deficit over the next 12 years, the bulk of it by cutting domestic social spending, particularly in the area of health care.

His speech at George Washington University in the US capital demonstrates the consensus in the American ruling elite for a frontal assault on social programs upon which tens of millions of working people, children and retirees depend.

Obama largely accepted the deficit reduction framework set by the Republican right. But he proposed a different mix of spending cuts, as well as calling for tax increases on the wealthy, something that the leaders of the Republican-controlled House of Representatives have ruled out in advance.

The proposed tax hikes are extremely modest, merely allowing the Bush tax cuts for the wealthy to expire at the end of 2012 and restoring the tax rates that prevailed under the Clinton administration. The promise, moreover, is an empty one. Obama caved in to Republican opposition to raising taxes on the rich last year, when the Democrats still controlled both houses of Congress. Why should anyone believe he will act differently now?

Throughout the speech, Obama sought to appeal to two diametrically opposed audiences. He sought to reassure global financial markets and the US ruling elite of his commitment to reaching bipartisan agreement on drastic and immediate spending cuts. And he sought to delude working people about both the causes of the fiscal crisis and the devastating consequences of the measures now being prepared in Washington.

For his ruling class audience, Obama spelled out proposals for spending cuts in Medicare and other social programs that would previously have been considered unthinkable from a Democrat in the White House.

According to a summary posted on the White House web site, these include:

  • Massive cuts in domestic discretionary spending, from the baseline set by last Friday’s agreement with congressional Republicans that slashes $38.5 billion from spending for the current fiscal year. The total in spending cuts over 12 years would come to $770 billion in areas like education, the environment, transportation and other infrastructure, and in wages and benefits for federal government workers.
  • An additional $360 billion over 12 years in cuts in mandatory domestic programs, so called because they provide benefit payments that are mandated under federal law, including farm subsidies, federal pension insurance, food stamps, home heating assistance and income-support programs for the poor and disabled.
  • A further $480 billion over 12 years in cuts in federal health care spending, on top of the $1 trillion in cost-cutting already imposed to pay for the health care overhaul passed last year by a Democratic Congress. Obama outlined a series of policy changes in health care that he said would cut an additional $1 trillion in the decade after 2023.
  • In the event that spending cuts fail to reduce the federal deficit to the desired proportion of the US gross domestic product by 2014, Obama would establish a debt failsafe mechanism that would trigger across-the-board spending cuts and tax increases, likely to include a national sales tax or European-style Value Added Tax.
  • Cuts of $400 billion in military spending over 12 years, less than four percent of the gargantuan sum that the Pentagon, Department of Energy, Department of Homeland Security, CIA and other agencies will spend during that period on the armed forces, nuclear weapons and intelligence and security operations.

For his popular audience, Obama delivered a series of demagogic assaults on the Republican Party and the deficit reduction plan unveiled last week by House Budget Committee Chairman Paul Ryan, which the House is expected to approve on Friday.

He explained that the Republican plan “is less about reducing the deficit than it is about changing the basic social compact in America.” He said that it “ends Medicare as we know it,” and would lead to the loss of health insurance for up to 50 million Americans now covered by Medicaid or scheduled to be enrolled in private insurance plans under Obama’s Affordable Care Act of 2010.

For Medicare recipients, he said, the Republican plan means “instead of guaranteed health care, you will get a voucher.” He continued: “And if that voucher isn’t worth enough to buy insurance, tough luck—you’re on your own.” Grandparents who cannot afford nursing home care, poor children, and children disabled by autism or Down’s syndrome would be told “to fend for themselves.”

Given the emphasis on health care cost controls both in last year’s “reform” legislation and in his speech Wednesday, Obama’s supposed outrage over Republican heartlessness is cynical and insincere. The two big business parties, the Democrats as much as the Republicans, seek to cut the cost of health care for American corporations and the government by placing more and more of the burden on working people, including the sick, the disabled and the destitute.

Even more deceptive was Obama’s explanation of the source of the fiscal crisis. He contrasted the 1990s—when “our leaders came together three times… to reduce our nation’s deficit” in bipartisan agreements under the first President Bush and the Clinton administration—to the decade after 2000, when “we lost our way.”

In this potted history, “America’s finances were in great shape by the year 2000. We went from deficit to surplus.” Then the administration of George W. Bush waged two wars, established a Medicare prescription drug benefit, and cut taxes for the wealthy, wrecking the “fiscal discipline” of the previous decade.

One small thing is left out of this account: the long-term crisis of American capitalism, culminating in the Wall Street crash of 2008 and the trillions expended by the Treasury and the Federal Reserve to bail out the banks. The financial catastrophe precipitated the worst economic slump since the Great Depression—which continues to this day, although Obama barely mentioned it in his 43-minute speech.

The conditions that produced the 2008 crash go back at least three decades, and include the increasing subordination of production to financial manipulation, the deregulation of financial markets, and colossal growth of economic inequality.

Obama made only one fleeting reference to this most important aspect of the economic crisis. He condemned the Ryan plan for proposing another $1 trillion in tax breaks for the wealthy, then added:

“In the last decade, the average income of the bottom 90 percent of all working Americans actually declined. The top 1 percent saw their income rise by an average of more than a quarter of a million dollars each.”

He then asked rhetorically, “And that’s who needs to pay less taxes? They want to give people like me a $200,000 tax cut that’s paid for by asking 33 seniors to each pay $6,000 more in health costs. That’s not right, and it’s not going to happen as long as I’m president.”

This was the high point of Obama’s populist demagogy, a typical dog-and-pony show in which the Democrats pretend to be the tribunes of the common man and the Republicans are assigned the role of Wall Street stooges.

A little over an hour after Obama’s address, three top House Republicans did their part in the play-acting, going before press microphones and practically snarling their hostility to the president’s whipping up of “class war.”

“Class war” is an accurate term for the program of both the Democrats and Republicans. However vituperative the mutual mudslinging, both parties represent corporate America and do the bidding of the super-rich. The leading personnel of both parties consist of individuals, like Obama, who are themselves multi-millionaires.

The US ruling elite is taking advantage of the fact that the working class is politically disenfranchised and the old union organizations have been transformed into instruments of corporate management for imposing wage and benefit cuts. It is moving aggressively to return working people to conditions of exploitation unseen in America in nearly a century.

For the past few months, state and local governments, both Republican and Democratic, have taken the leading role in these attacks, sparking the confrontation with public employees in Wisconsin and increasingly bitter conflicts throughout the country.

It was noticeable that in Obama’s lengthy speech there was no reference whatsoever to the financial crisis wracking state and local government and the devastating cuts being imposed on social services, jobs, wages, benefits and pensions.

For two years, the stimulus legislation passed in 2009 provided limited support to state and local government finances. This period has come to an end, and there will be no further federal support. On the contrary, as the positions of both the congressional Republicans and the Obama White House demonstrate, the federal government is now set to play the leading role in the assault on the social rights of working people.

The working class should reject the entire framework of the official deficit-reduction debate. The Democratic and Republican politicians who claim there is “no money” for necessities like pensions, health care and education represent a corporate elite sitting on countless trillions in wealth.

The working class alternative to capitalist austerity must be the expropriation of this hoarded wealth, accumulated from the labor of workers, and the reorganization of economic life to serve human needs, not corporate profits.

This means the building of an independent mass political party of the working class based on a socialist and anti-imperialist program.

PATRICK MARTIN is a senior political analyst with the World Socialist Web Site.

To breathe the true air of freedom and democracy you need independent media lungs. Staffed with journalists and political observers not beholden to the status quo.
SUPPORT THE GREANVILLE POST AND CYRANOS JOURNAL TODAY.
DONATE WHAT YOU CAN!

____________________________________________

Make creeps like Kissinger and Palin miserable.

Read The Greanville Post and fortify your ability to fight back!

SUBSCRIBE ME TO THE GREANVILLE POST BY EMAIL

 




Republican Plan to End Social Security, Medicare and Medicaid

By Stephen Lendman

By the simple expedient of just removing the upper income social security tax cap, all social security worries—real or imagined—would vanish at once.

Medicaid is welfare for low-income beneficiaries, jointly funded by the states and Washington, managed at the state level.

NOTE: This site has provided extensive coverage of this topic. There are many comprehensive articles in our archives. Search for them.

On July 30, 1965, Lyndon Johnson signed the Social Security (Medicare) Act into law, enrolling Harry and Bess Truman as its first recipients.


(4) Medicare Liability: nearly $79 trillion.

Total: over $113 trillion plus the National Debt.

Republicans, in fact, always opposed these programs. Given unsustainable deficits from out-of-control military  spending and corporate handouts, they now see a chance to end them by a combination of cuts, shifting cost burdens to states and beneficiaries, plus lots of smoke and mirrors. Key is that Democrats concur, despite softer public rhetoric, appealing to constituencies while betraying them behind closed doors, Obama a duplicitous co-conspirator.

At his press conference, Obama outlined a two-step process:

Longtime financial analyst Bob Chapman disagrees, saying in his latest International Forecaster commentary:


• cutting Medicaid by the amount it grows faster than GDP, providing less care for the poor, eventually perhaps none.

A Final Comment

Senior Editor Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour/.




Immanuel Wallerstein: The great Libyan distraction

1 April 2011 — Links International Journal of Socialist RenewalZSpace

I. Wallerstein

The entire Libyan conflict of the last month — the civil war in Libya, the US-led military action against Gaddafi — is neither about humanitarian intervention nor about the immediate supply of world oil. It is in fact one big distraction — a deliberate distraction — from the principal political struggle in the Arab world. There is one thing on which Gaddafi and Western leaders of all political views are in total accord. They all want to slow down, channel, co-opt, limit the second Arab revolt and prevent it from changing the basic political realities of the Arab world and its role in the geopolitics of the world-system.To appreciate this, one has to follow what has been happening in chronological sequence. Although political rumblings in the various Arab states and the attempts by various outside forces to support one or another element within various states have been a constant for a long time, the suicide of Mohamed Bouazizi on December 17, 2010 launched a very different process.

It was in my view the continuation of the spirit of the world revolution of 1968. In 1968, as in the last few months in the Arab world, the group that had the courage and the will to launch the protest against instituted authority were young people. They were motivated by many things: the arbitrariness and cruelty and corruption of those in authority, their own worsening economic situation, and above all the insistence on their moral and political right to be a major part of determining their own political and cultural destiny. They have also been protesting against the whole structure of the world-system and the ways in which their leaders have been subordinated to the pressures of outside forces.

These young people were not organised, at least at first. And they were not always totally cognisant of the political scene. But they have been courageous. And, as in 1968, their actions were contagious. Very soon, in virtually every Arab state, without distinction as to foreign policy, they have threatened the established order. When they showed their strength in Egypt, still the key Arab state, everyone began to take them seriously. There are two ways of taking such a revolt seriously. One is to join it and try thereby to control it. And one is to take strong measures to quash it. Both have been tried.

There were three groups who joined it, underlined by Samir Amin in his analysis of Egypt: the traditional and revived left, the middle-class professionals and the Islamists. The strength and character of these groups has varied in each of the Arab countries. Amin saw the left and the middle-class professionals (to the extent that they were nationalist and not transnational neoliberals) as positive elements and the Islamists, the last to get on the bandwagon, as negative elements. And then there is the army, always the bastion of order, which joined the Egyptian revolt late, precisely in order to limit its effect.

Libya and intervention

So, when the uprising began in Libya, it was the direct result of the success of the revolts in the two neighbouring countries, Tunisia and Egypt. Gaddafi is a particularly ruthless leader and has been making horrific statements about what he would do to traitors. If, very soon, there were strong voices in France, Great Britain and the United States to intervene militarily, it was scarcely because Gaddafi was an anti-imperialist thorn in their side. He sold his oil willingly to the West and he boasted of the fact that he helped Italy stem the tide of illegal immigration. He offered lucrative arrangements for Western business.

The intervention camp had two components: those for whom any and all military interventions by the West are irresistible, and those who argued the case for humanitarian intervention. They were opposed very strongly in the United States by the military, who saw a Libyan war as unwinnable and an enormous military strain on the United States. The latter group seemed to be winning out, when suddenly the resolution of the Arab League changed the balance of forces.

How did this happen? The Saudi government worked very hard and effectively to get a resolution passed endorsing the institution of a no-fly zone. In order to get unanimity among the Arab states, the Saudis made two concessions. The demand was only for a no-fly zone and a second resolution was adopted opposing the intrusion of any Western land forces.

Saudi role

What led the Saudis to push this through? Did someone from the United States telephone someone in Saudi Arabia and request this? I think it was quite the opposite. This was an instance of the Saudis trying to affect US policy rather than the other way around. And it worked. It tipped the balance.

What the Saudis wanted, and what they got, was a big distraction from what they thought most urgent, and what they were doing — a crackdown on the Arab revolt, as it affected first of all Saudi Arabia itself, then the Gulf states, then elsewhere in the Arab world.

As in 1968, this kind of anti-authority revolt creates strange splits in the countries affected, and creates unexpected alliances. The call for humanitarian intervention is particularly divisive. The problem I have with humanitarian intervention is that I’m never sure it is humanitarian. Advocates always point to the cases where such intervention didn’t occur, such as Rwanda. But they never look at the cases where it did occur. Yes, in the relatively short run, it can prevent what would otherwise be a slaughter of people. But in the longer run, does it really do this? To prevent Saddam Hussein’s short-run slaughters, the United States invaded Iraq. Have fewer people been slaughtered as a result over a 10-year period? It doesn’t seem so.

Advocates seem to have a quantitative criterion. If a government kills 10 protesters, this is ‘normal’ if perhaps worthy of verbal criticism. If it kills 10,000, this is criminal, and requires humanitarian intervention. How many people have to be killed before what is normal becomes criminal? 100, 1000?

Today, the Western powers are launched on a Libyan war, with an uncertain outcome. It will probably be a morass. Has it succeeded in distracting the world from the ongoing Arab revolt? Perhaps.We don’t know yet. Will it succeed in ousting Gaddafi? Perhaps.We don’t know yet. If Gaddafi goes, what will succeed him? Even US spokespeople are worrying about the possibility that he will be replaced either with his old cronies or with al Qaeda, or with both.

The US military action in Libya is a mistake, even from the narrow point of view of the United States, and even from the point of view of being humanitarian. It won’t end soon. President Obama has explained his actions in a very complicated, subtle way. What he has said essentially is that if the president of the United States, in his careful judgement, deems an intervention in the interests of the United States and the world, he can and should do it. I do not doubt that he agonised over his decision. But that is not good enough. It’s a terrible, ominous and ultimately self-defeating proposition.

In the meantime, the best hope of everyone is that the second Arab revolt renews steam — perhaps a long shot now — and shakes first of all the Saudis.”

Immanuel Maurice Wallerstein (born September 28, 1930, New York City) is an American sociologist, historical social scientist, and world-systems analyst. His bimonthly commentaries on world affairs are syndicated[1].




The crisis of revolutionary leadership in 2011

The absence of revolutionary political leadership in the working class has enabled, at least for the time being, the Egyptian bourgeoisie to regroup.

By Joseph Kishore | 30 March 2011

Egyptian protesters.

The pace with which events follow each other is characteristic of a revolutionary period. On a global scale, there is an increasing polarization of society along class lines. Two and a half years after the financial crisis that erupted in the fall of 2008, the corporations and banks are escalating their war on the working class. At the same time, the first few months of the year have already produced a significant growth of popular resistance.

The initial struggles of the working class have made it clear that it faces immense and complex political challenges in every country, all of which are centered on the problem of revolutionary leadership.

In the Middle East and North Africa, the heroic battles of workers and youth have so far been unable to achieve any significant degree of democratization, let alone carry through a redistribution of wealth and restructuring of the national economies in the interests of the masses of the people. In Tunisia and Egypt, mass demonstrations and strikes brought down two US-backed dictators, but they have left in place the regimes that formed the backbone of their power.

In Egypt, the military government, hailed by the Obama administration as the guarantor of democracy, is attempting to ban strikes and demonstrations. It is responding no less brutally than its predecessor to the economic and political demands of the Egyptian masses. The absence of revolutionary political leadership in the working class has enabled, at least for the time being, the Egyptian bourgeoisie to regroup. The ruling class has been assisted by the official opposition organizations, which reject the fight for workers’ power and socialism, and have worked to subordinate the working class to the existing capitalist state.

The official unions worked systematically to subordinate opposition to the Democratic Party, which in states throughout the country, and at the federal level, is implementing cuts and austerity measures no less brutal than those demanded by Walker.

In Europe, workers face a new wave of austerity demands even more extreme than those implemented last year, with signs that spring will bring with it a resumption of the European debt crisis. As in the United States, governments have expended fortunes to bail out the banks and are now demanding that the working class pay. The one-day general strikes organized by the trade unions last year did little more than let off steam, giving the ruling class time to plan another offensive.

The war in Libya has exposed the consequences of the crisis of leadership. Popular opposition to the regime of Gaddafi, lacking an independent revolutionary democratic and anti-capitalist program, has been hijacked by imperialism to serve its own ends.

Moreover, the support for the dirty colonial war being waged by the United States and its European allies has laid bare the unbridgeable social and political chasm that separates the interests of the working class, on an international scale, from the liberal and “left” representatives of the bourgeoisie. In the name of “human rights”—a slogan selectively employed to justify neo-colonial wars—the old “left” protest movements and parties, representing the interests and views of the most affluent sections of the upper middle class, have aligned themselves with imperialism. Moreover, while endorsing “human rights” imperialism, these parties and organizations do everything in their power to block the development of working class struggles against the austerity policies of the ruling class in their own countries. In the United States, this takes the form of supporting the administration of Barack Obama, even as he continues and expands upon the reactionary policies, at home and abroad, of his hated predecessor.

—JOSEPH KISHORE is a senior political analyst with the World Socialist Web Site.

The Greanville Post, an independent socialist—but not a Trotskyst publication— is happy to reproduce materials from the World Socialist Web Site, a Trotskyst organization associated with the Socialist Equality Party for the simple reason reason we agree with many of its analyses.  As we both utilize undogmatic Marxian analysis in our work, we inevitably have a high degree of congruency in our positions. This, however, does not negate the fact we also have differences concerning aspects of tactics, priority, strategy and so on. With this caveat in mind, we post here the following announcement by the WSWS/SEP:

The Socialist Equality Party in the United States is holding a series of conferences this month on The Fight for Socialism Today. The first of these conferences will be held on April 9-10 in Ann Arbor, Michigan, followed by conferences in Los Angeles on April 16 and New York on April 30. Since these conferences were called in January, the events of the year have demonstrated their historical significance as a critical stage in the building of a socialist leadership in the United States.

The WSWS urges all its readers in the US to register and make plans to attend one of these conferences today. If you cannot attend, or live outside the US, contact the SEP and its youth organization, the International Students for Social Equality, and make the decision to join today. As the world enters a new era of revolutionary struggle, now is the time to take up the fight for socialism.

To register for the conference, click here.




Amiri Baraka and Barack Obama – Then and Now

A Black Agenda Radio commentary by Glen Ford

All of a sudden, Obama was ‘a negro selling his own folk, delivering us to slavery.’”

The Black poet-author-activist Amiri Baraka has turned his pen on Barack Obama, a man he defended like a pit bull as recently as…it seems like yesterday. “Baraka kept up the abusive barrage against anti-Obama ‘rascals’ of the left, right up to the president’s assault on Libya.” But, a change of heart is not sufficient. Baraka and a bunch of other ex-Obamites need to practice some serious and public self-criticism.

It took a savage assault on Libya by America’s First Black President and his European colonial allies – but Amiri Baraka seems to have finally given up on Barack Obama. Sorry, but I’m not one of those who is ready to say: All is forgiven, Brother Baraka. Because, although he has given Obama a tongue-lashing, in his inimitable, slashing and gutting style in the poem “The New Invasion of Africa [9],” Amiri Baraka has neglected to criticize himself for serving as a Left attack dog for Obama for more than three years.

During that time, Amiri Baraka excoriated and defamed [10] Obama’s “Black and progressive critics” as “anarchists,” “criminal” and whatever other insults traveled from his mind to his mouth. He said that it “is criminal for these people claiming to be radical or intellectual to oppose or refuse to support Obama.” That was back in June, 2008. He called Green Party candidate Cynthia McKinney a “pipsqueak” and disparaged as “rascals” all Blacks who did not swear fidelity to the Obama campaign. “We should be supportive of what Obama is trying to do,” said Baraka. “We should spend our energy opposing the far right and the Republicans.” Obama was not to be challenged. Instead, Baraka declared [11], “It is time for the left to really make some kind of Left Bloc to support Obama.”

Thus, Amiri Baraka was among those who proposed to create a left flank for Obama, in order to shut down left criticism of Obama. The theory was that Obama would help the left if the left helped him become president, with no questions asked. Which is really too stupid to be called a “strategy” – as history was very quick to demonstrate.

Baraka excoriated and defamed Obama’s ‘Black and progressive critics’ as ‘anarchists,’ ‘criminal’ and whatever other insults traveled from his mind to his mouth.”

Amiri Baraka kept up the abusive barrage against anti-Obama “rascals” of the left, right up to the president’s assault on Libya. Then, all of a sudden, Obama was “the negro yapping” to make imperial aggression “seem right” – “a negro selling his own folk, delivering us to slavery.”

Some of us who have been wise to corporate, center-right Obama for going on eight years consider Baraka’s recent epiphany to have come far too late for redemption. Others say, better late than never. But surely, his new position is incomplete without an explanation and recantation of his politics of the last three years.

ought to leave him [13].

www.BlackAgendaReport.com [14].

Glen.Ford@BlackAgendaReport.com [15].

http://traffic.libsyn.com/blackagendareport/20110330_gf_Baraka.mp3

Source URL: http://blackagendareport.com/content/amiri-baraka-and-barack-obama-%E2%80%93-then-and-now

Links:
[1] http://blackagendareport.com/category/department-war/us-attacks-libya
[2] http://blackagendareport.com/category/us-politics/amiri-baraka
[3] http://blackagendareport.com/category/other/ba-radio-commentary
[4] http://blackagendareport.com/category/us-politics/bill-fletcher
[5] http://blackagendareport.com/category/us-politics/left-obamites
[6] http://blackagendareport.com/category/us-politics/malik-zulu-shabazz
[7] http://blackagendareport.com/category/us-politics/obamarama
[8] http://blackagendareport.com/sites/www.blackagendareport.com/files/baraka_n_barack.jpg
[9] http://www.voxunion.com/?p=377
[10] http://hiphopnews.yuku.com/topic/728
[11] http://sfbayview.com/2009/legendary-writer-poet-and-cultural-critic-an-interview-wití-amiri-baraka/
[12] http://hiphopnews.yuku.com/topic/978
[13] http://www.youtube.com/watch?v=KR6mPgSxPtY&feature=player_embedded
[14] http://www.BlackAgendaReport.com/
[15] mailto:Glen.Ford@BlackAgendaReport.com
[16] http://www.addtoany.com/share_save?linkurl=http%3A%2F%2Fblackagendareport.com%2Fcontent%2Famiri-baraka-and-barack-obama-%25E2%2580%2593-then-and-now&linkname=Amiri%20Baraka%20and%20Barack%20Obama%20%E2%80%93%20Then%20and%20Now