Obama pledges cuts in entitlement programs

At a press conference the day after releasing his budget for the 2012 fiscal year, President Obama declared his intention to carry out major cuts in entitlement programs as part of a deficit reduction program to be negotiated with congressional Republicans.

The press conference was dominated by critical questions that reflected the right-wing consensus of the corporate-controlled media. Reporter after reporter suggested that the budget contained too little in the way of spending cuts and failed even to mention “entitlement reform”—the official Washington code words for cutting pensions and health care for the elderly and the poor.

Not a single question was asked about military spending, the largest single item in the budget—at least until 2016, when interest payments on the federal deficit are projected to exceed the Pentagon’s share of total spending. There was no suggestion that the gargantuan military budget, larger than the combined military spending of all other nations on earth, was unaffordable or “one of the real drivers of long-term debt,” as one reporter described Social Security and Medicare.

Obama was in his preferred political environment—defending right-wing policies against criticism from even more right-wing critics. He emphasized that his budget provided “tough choices” and inflicted “real pain” on working people who deserved better, as though these were positive features.

Obama singled out federal health care costs as a target for budget-cutting, declaring, “Medicare and Medicaid are huge problems because health care costs are rising even as the population is getting older. And so what I’ve said is that I’m prepared to work with Democrats and Republicans to start dealing with that in a serious way. We made a down payment on that with health care reform last year.”

In one exchange, Obama was asked by Chuck Todd of NBC News why he had “shelved” the report of his own bipartisan commission on deficit reduction, which called last December for major cuts in Social Security and Medicare, as well as a significant reduction in the corporate tax rate.

Obama responded, “The notion that it has been shelved I think is incorrect. It still provides a framework for a conversation.” He explained that there had to be discussions with congressional Republicans and Democrats who opposed various aspects of the commission’s recommendations, “to whittle their differences down until we arrive at something that has an actual chance of passage.”

He chided his critics for demanding action on cutting entitlement programs overnight, outlining a two-step process, beginning with the five-year spending freeze on discretionary domestic programs, proposed in his own budget, along with major cuts in Pell Grants for college students, home heating assistance for the elderly, environmental protection and other vital programs.

“Step number two is … how do we make sure that we’re taking on these long-term drivers and how do we start whittling down the debt,” he said. “And that’s going to require entitlement reform and it’s going to require tax reform. And in order to

accomplish those two things, we’re going to have to have a spirit of cooperation between Democrats and Republicans.”

Obama held up as a model the bipartisan negotiations in December in which his administration capitulated to Republican demands for a two-year extension of the Bush tax cuts for the wealthy. “Both sides had to give,” he claimed. “And there were folks in my party who were not happy, and there were folks in the Republican Party who were not happy. And my suspicion is, is that we’re going to be able to do the same thing if we have that same attitude with respect to entitlements.”

As in his State of the Union speech, Obama presented the US economy as rapidly recovering from the slump triggered by the 2008 Wall Street crash. “The economy is now growing again,” he claimed. “People are more hopeful. And we’ve created more than a million jobs over the last year. Employers are starting to hire again, and businesses are starting to invest again … we’re out of the depths of the crisis.”

This picture bears no resemblance to the social reality confronted by tens of millions of working people, facing long-term double-digit unemployment rates, rampant wage-cutting, deteriorating social conditions and financial crises in the cities and states that have produced mass layoffs and threaten a wave of bankruptcies.

Only for Wall Street and the political representatives of the financial aristocracy in Washington—and their well-paid media apologists—has there been a genuine economic recovery. This restoration of corporate profitability and CEO bonanzas has come directly at the expense of the working class.

The details of the administration’s budget plan began to be disseminated through the media on Tuesday, as major newspapers published summaries of the 2,000-page budget document released the day before.

“Obama to propose more than $1 trillion in deficit reduction”)

While spending on the wars in Afghanistan and Iraq is projected to decline because of the drawdown in US military forces in Iraq, the baseline budget for the Pentagon will rise significantly, up $22 billion in 2012 to $553 billion.

State Department operations receive an increase of 1 percent, but there is an 8 percent jump in “overseas contingency operations,” which reflects the transfer of many US occupation activities in Iraq from Pentagon to State Department jurisdiction.

Other departments engaged in the “war on terror,” including the CIA and other intelligence agencies, the Department of Homeland Security and the FBI all receive substantial increases. The intelligence budget is to rise by 4 percent, the FBI by 4 percent, other Justice Department operations by 2 percent, and the DHS by 1 percent, in a budget that reduces the overall level of spending across the board. Federal prison operations receive a whopping 10 percent boost, and the nuclear weapons facilities operated by Department of Energy get an even larger percentage increase.

The departments engaged in operating domestic social programs receive the bulk of cuts, including a 5 percent slash to Labor Department spending, the elimination of operating subsidies for Amtrak passenger rail services, a $1 billion cut in conservation programs for wetlands, and a cut in overall spending by the Department of Health and Human Services for the first time in the 30-year history of that department, even though spending on Medicare and Medicaid are projected to grow by 8 percent a year.

One new feature of the 2012 budget is the proliferation of “Race to the Top” campaigns, modeled on the reactionary program in the Department of Education that offers incentives to states that carry out the most draconian attacks on public school teachers.

There will be a “Race to the Top” program in the Department of Transportation, to “create incentives for States and localities to adopt critical reforms in a variety of areas, including safety, livability, and demand management.” There will be a similar program in the Department of Energy “for communities to invest in electric vehicle infrastructure and remove regulatory barriers.” Another such grant from the Justice Department will reward states “for tangible improvements in juvenile justice systems,” and similar measures in education and job training.

World Socialist Web Site. 



Who is Influencing Obama’s Budget Proposal? Follow the Funders

By Rob Johnson, NewDeal 2.0

Posted on February 15, 2011, Printed on February 16, 2011
Simulpost with http://www.alternet.org/story/149938/

Gallup surveys suggest that unemployment is around 10 percent — and that unemployment plus underemployment is 19 percent of the workforce — then it’s clear that the best way to raise revenues and close the deficit is to put people back to work. President Obama surely knows this. But his actions don’t seem to follow this obvious logic. Why is that?

recent TedX Talk in San Antonio, Texas. The increasing power of this group produces political contortions by buying results in Congress that do nothing for regular folks. Their influence also steers President Obama to focus on his reelection rather than trying to change the climate of opinion and become America’s Great Persuader.  The public has now heard the conservative mantra that government is the problem and not the solution for 40 years. Couple that with the experience of valid rage following the bank bailouts, and it’s not surprising that the public overwhelmingly feels that the government has become an instrument of the wealthy and powerful. Strong leadership is needed to challenge this narrative. But the President seems content to conform to the prevailing suspicion of government. He fails to convince the public that the government can have an active response to the jobs crisis — a response that benefits them, not monied interests.

And that suits many funders in the top 3 percent of the wealth distribution just fine.

State of the Union address vision. But his budget strategy does not. The current budgets, both Democrat and Republican, appear to be imposing cuts on the lower middle class and poor. We are, as Paul Krugman said in the New York Times on Monday, eating our future.

Andrew Mellon must be smiling.

Rob Johnson is a Senior Fellow and the Director of the Project on Global Finance at the Roosevelt Institute.

© 2011 NewDeal 2.0 All rights reserved.
View this story online at: http://www.alternet.org/story/149938/

[w1]




Is Libertarianism the answer?

randPaul1.donkeyWith the ascendancy of the Tea Party and many fervid libertarians like Rand Paul to the ranks of Congress, this message is more pertinent than ever.

[dropcap]I[/dropcap]s libertarian ideology a solution to the problems caused by megacorporations? Can turning the clock back to the early years of capitalism, freeing it of all political and social restriction, really deliver an optimal system of social organization? The author thinks not.

AN OPEN LETTER TO LIBERTARIAN ACTIVISTS

BY PAUL A. DONOVAN

February 15, 2011

Dear Libertarians,

I SINCERELY APPRECIATE the passion and sincerity you exhibit in your endeavors, and that is why I’d like to bring up a few points to your attention. These comments originate in my recent exposure to a very large number of posts commenting primarily on an article on the Thomas Paine’s Corner blog of Cyrano’s Journal, Annals of Stupidity: The Demise of Alexander Cockburn, by Gerald Rellick. (The article is now available HERE ).

ronPaul.4.donkeyI discern in the commentary thread what I have observed elsewhere, a tremendous infatuation by Libertarians with Rep. Ron Paul (right). That certainly strikes me as logical: Paul is one of your own. The point of divergence, however, is equally simple. The reasons and personal qualities you adduce for elevating Mr. Paul to the status of national saviour are matched, and in many dimensions clearly exceeded, by another political figure, Dennis Kucinich. What is the reason then for this partiality? I don’t want to get ahead of myself here but just let me say the following: the only conceivable reason I can find for your complete disregard of Rep. Kucinich as a serious candidate and his clear and courageous stands is that he is not a Libertarian in political philosophy, that is, he does not worship individualism at the expense of the commonwealth.

In this context, first let me remind everyone here, once again, that it was Dennis Kucinich who filed papers to impeach Dick Cheney in order to get the ball rolling to go after the whole Bush mafia, well before Ron Paul made statements to this effect, so in light of that fact, may I ask what are you all talking about by placing all the adoration on Paul and ignoring Kucinich’s obvious contributions? If we follow your logic, Kucinich bested Ron Paul because he is already (with little support from his own party of opportunistic cowards, or the media) actively seeking impeachment of those responsible in the Bush administration.

Furthermore, Kucinich is not a right-winger, and therefore, in my view, has tangible solutions in the works to solve many of our biggest problems.

I guess the central question is this: what kind of broad social change do you Libertarians really advocate?

Have we forgotten already the long list of abuses in the name of free enterprise, before the system was moderately tamed by social corrective action? Considering your rather brutal philosophy, the fact that so many in your ranks decry social security, employment compensation, and other buffers against personal disasters, may we ask again what is your opinion on child Labor? After all, a true Libertarian would argue that it is a child’s right to work and that’s that.

History books, volumes not exactly written by sworn enemies of capitalism, tell a different story. We can thank workers’ struggle for the abolition of child labor, not the wonders of the free market which thrives off of cheap labor sources, including the children of the poor. (Obviously the markets do not affect the destinies of the well-off, not to mention the real rich. As they used to say in “robber baron” days, both Rockefeller and the homeless are free to sleep under the bridges.)

Isn’t this the logic and morality of the Darwinist jungle? And what kind of “civilization” are you espousing that regards the “morality” of wild beasts as appropriate to humans? In reality, the uninhibited civil liberties you advocate translated into reality, as  the right of employers to do whatever they like, whenever they like, to whomever they like, make for a very lopsided game…of course, in the mythical world of perfect markets, if the workers don’t like it, they can simply go work somewhere else. If this is the best your imagination can conjure up, a “let’em eat cake” approach to enormous social injustice and distress, all in the name of a sustainable future for humankind, then I urgently suggest a different approach to the problem.

In a system of laissez faire “free-market” capitalism (of course starting from point A, and thereby traveling back to the industrial revolution, and bypassing 300+ years of capitalist development) with little to no government, who would take care of public schools, roads, public works, social security, and what we have come to call Medicare? Obviously you might answer: no one, for you’d eliminate those as offshoots of your hated “Big Government.” But do you trust 401K that much? Remember there will be nobody to protect you in the event you are fired from your job, unless you are naïve enough to believe in corporate loyalty? And besides, think for a moment: there are many instances of social goods—highways, for example—which include gigantic social undertakings such as bridges, all of which necessitate the unification of social purpose, not its permanent disunity as you constantly preach. And what of public libraries, universities, the fire department, and emergency services? All free, all examples of socialism in action.

.

[dropcap]I[/dropcap]n a highly technologized and mobile society, do you imagine America without its habitual highway system, or punctuated by thousands of toll-booths collecting treasure for private landlords with uneven rates and maintenance records? We’d have more traffic jams than when we had public tolls operated by state and municipal authorities, all of which would also contribute powerfully to pollution, not to mention doctors’ bills as a result of additional heart attacks issuing from sheer frustration…And don’t forget the national bill and ecological costs for wasted gasoline. Need I go on?

Furthermore, without a standing military (and I certainly I am entirely against the current monster we have allowed to rise in our midst, the political-media-military-corporate hydra), how do you plan to defend our new hypothetical do-gooder capitalist nation in the event some other capitalist Leviathan, like a unified capitalist Europe, or Japan, gets ambitious again and decides to invade our continent? Are you going to hire Blackwater Mercenaries equipped with a new version of Microsoft Windows built into their cell phones to save us? I wonder how much would the private sector charge the people for a job like that? Is Robocop the future you believe in?

RIGHT: Ron Paul. A unifying or divisive figure?


Despite the existence of state jobs, many of which still boast adequate medical coverage and pensions, libertarians feel —rather cavalierly—that it is in the best interest of “the private sector” to wipe social security off of the map, in all sectors of society. This is done in the name of eliminating all tax obligations, regarded dogmatically and, I may add, myopically, as “confiscatory.” Let me tell you something. Moneys handed over to the state are confiscatory when they fail to return value, or are used, in the trillions, to support criminal enterprises, like our foreign policy, or ferrying criminals like Dick Cheney or the “first decider,” from photo op to photo op in the comfort reserved for royalty. When taxes are well utilized, and people get their money’s worth, they tend to be a bargain. It boils down to the type of society you have. So the issue is not taxes per se but the rectitude and decency of the society you inhabit. That so many of you (and the public at large) are “turned off” to taxes is an eloquent commentary on today’s American society.

Hence, in such cases, you throw the baby out with the bath water, and go on blaming government for the WRONG THINGS. I’m not setting up a straw man for you, but rather, I am addressing in theory the disastrous impacts of complete privatization.

Libertarians are properly outraged by the corruption of corporate America, and the war mongering of the President, Congress, media, and the Pentagon, but on the road to American politico-economic discovery, you took a sharp right turn instead of making a left, and that is why you will not come up with any real solutions to this systemic problem. At best, you will have a decent critique of the “New World Order” as you put it, but you will have no clear understanding of what the root of “all evil” is, and that is private control over what the people have a god-given right to decide for themselves, such as healthcare, education, social goods such as museums, libraries, and emergency services, not to mention the guaranteed right to a civilized retirement and care in the golden years…Are you all so rich, so successful that you have no family, no friends in the crosshairs of Darwinism?

So, to restate: Your anger is directed at some of the right people, but your ideology is pointing in the wrong direction. You must open your eyes to the fact that you can’t have a moral capitalism. It’s an oxymoron. The unparalleled power of the politico-corporate entity, and its organic desire to control markets for new exploitable land, cheap labor, and resources to pillage is too strong and tempting to control. That is why, among other things, the people cannot control outsourcing, and why we are losing our essential jobs. At this juncture a Libertarian may argue that borders should be knocked down so capital can flow freely without the myriad of damaging effects inflicted on it by protectionist policies, yet you seem to omit skewed trade agreements which only benefit the most highly industrialized countries, all wrapped up on a pseudo-benevolent package, and sold to the public as a plan to help the less fortunate of the world, which now encompasses nearly the entire Southern Hemisphere sucked dry by colonialism, imperialism, and parasitic globalization.

The capitalist system cannot be reformed or fixed without going to the systemic roots, extirpating them, and abolishing social private property (not personal property, which comprises items that meet personal needs). So you need not worry about the Big Bad Government under, say, a socialist system, declaring eminent domain and repossessing your bath towels, tooth brush, and garage door opener.

Having a strong public sector with universal healthcare built into society, such as France, or Denmark have, would begin to demonstrate to the American public that deregulation and privatization is for the birds. It is no mystery that the capitalist countries with the best living conditions have the longest and most successful history of workers’ struggles, strongest union presence, student advocacy, and semi-robust welfare states built into them as a buffer against private market tyranny. With the vast wealth available in this country we could easily begin a redistributive policy, which would thereby create jobs and help to drastically diminish crime rates, stimulate the economy, provide every citizen with healthcare, and reallocate our bloated and misguided defense budget to prevent and solve any fabricated crisis that Alan Greenspan and his profiteering ilk prophesize, while the rest of their kind go on denying global warming. Does Ron Paul have plans such as this? (I think it’s time you visited Dennis Kucinich’s web site.)

In order for this difficult politico-economic transformation to take place, in a country as complex as the United States, you need to support every progressive advance, especially when total disaster seems to be on the horizon. Even if you despise the politicians that want to win your affection by instituting universal healthcare, or “Medicare for All”, which would guarantee yourselves, children, and grandchildren full coverage, it is necessary that you focus your attention off of the mystical wonders of the market, which, as stated above, prove inadequate in nearly every tested category of social crisis. Plus, it’s my belief that once universal coverage is in place it will not be easily rolled back. Over the years, efforts by Republicans and some Democrats to turn back the clock on the New Deal have failed (as did similar maneuvers by Thatcher, whose dismantlement plan for Britain’s national health system quickly ran into a wall of public outrage). Why? Not because socialized medicine is perfect. But because, with all its flaws, many of them derived from having to breathe the toxic air of surrounding capitalist institutions, it is still immeasurably better and more humane a system than the capitalist brand.

And one more thing. You cannot continue to blindly shoot at everything you see. Your anger, however justified, is not nuanced, and that’s reflected in your statement about Ron Paul being the best of the bunch, which clearly demonstrates you don’t understand the political economy of capitalism – nobody who does would make such an outrageous statement. At best you could have a good dinner discussion with Bill Maher. In this regard, do you really think the American people, without years of active organizing, without a media capable of transmitting truth and not lies and confusion, stand a chance [of] overthrowing this vastly militarized de facto police state with simply a militant solution alone, or “by pulling the guns off the racks”????…I don’t happen to think the .22 in your closet, or your hunting rifle will get the job done.
This United States in the year 2007 is not Russia in 1917, China in ’49, or Cuba in ’59…we can’t go hide in the mountains and conduct guerilla operations, much as some would dream of doing. Even if you were to attempt such a daring act, and let’s say you were successful, what do you then plan on replacing the system with, so the exact same power relations don’t reemerge once the “bad apples” and “Boogiemen” are gone? Do you think the grasping, constantly self-aggrandizing entrepreneur will suddenly vanish instead of reasserting itself as an integral part of the markets’ dynamic? I think not, but rather Barbarism will rise from the ashes of this hypothetical civil war, which in fact would not amount to a real new American revolution because the social relations that constrain the means of production today would remain firmly in place in the morrow.

The answer to this complex question of what should be the goal of a true revolution is plain: Socialism, American style, but true socialism, no more welfare capitalisms, or phony Democratic DLC/Blairite/Clintonite “Third Ways.”

Socialism, having been viciously slandered for more than a century in this nation would and does entail a long road of understanding and political organizing. A road that will require deprogramming your mind away from the imbecilic and self-serving (to the plutocracy) indoctrination you have all received. There are no shortcuts to this kind of work. But once you join this monumental effort, you’ll find yourself in truly distinguished company. Yes, friends, socialism, not libertarianism, is the answer. Let none other than Albert Einstein tell you why:
https://www.greanvillepost.com/2000/07/18/albert-einstein-why-socialism/


ABOUT THE AUTHOR

Confessions of a Damned Elitist

WBy Diane G

[print_link]
Sat Feb 12, 2011 at 15:21:51 PM EST
First off, let me assure you that does not mean I am one of Society’s “Elites.”
ELITE: In sociology as in general usage, the elite is a group of relatively small size, that is dominant within a large society, having a privileged status perceived as being envied by others of a lower line of order.
Me.
If anyone is going to address my Elitism, it may as well be me.
It is utterly exhausting to have people so close to the finish line, but refusing to take that leap of logic and cross over. Its ok to point out the obvious treachery of the right, but taboo in many circles to point out the equal treachery of the so-called left representing us in this Country.
Obama has done more to split the Left in this Country than a thousand Fox New Liars could.
He has divided us into ideologues who cling to a dream, and realists who have discovered partisan politics is a sham.
Bit by bit? The circle grows smaller. For every new connection I seem to make with a kindred, an old one falls away. Its lonely on the fringe. Its hard to be an outsider, an Elitist. Its so much easier to just quit talking, and fit in. But Elitist I remain.
  • I resent the hell out of the fact that ignorance is prized in this country, intelligence dismissed as egg-headed nerdishness, that pile-ons of the celebrity-fail de jour trumps real politic, and that group-think surpasses reasoned individual opinion.
  • I reject partisan politics as an utter sham. Any Candidate that makes it even close to the public has been vetted, and stamped with the seal of Korporate Kleptocracy approval.
  • I am for Nationalizing every Major Company in the Country.
  • I am for Direct Democracy, not Representative Democracy. Representative Democracy sets a Small Group above and apart, and smaller numbers are more easily corrupted.
  • All Education, including the Highest Levels should be Free and Unrestricted, with absolutely no Religious influence whatsoever.
  • I am for dismantling the Military entirely, and removing every US presence in bases from Foreign Lands.
  • I reject Fossil Fuel usage, and think only Green Renewable Energy should be used.
  • I think Pollution of any type should be illegal.
  • I reject Capitalism in any or all of its forms.
  • I believe in dismantling Puritanical norms that defile sex as evil, and promote violence as acceptable.
  • I believe in the Right for Citizens to own and bear arms, for security against any Oligarchy that would choose to take away these rights.
  • I am a commie-pinko, tree-hugging, anarchist, socialism-loving, professional-left ELITIST.
  • There are Damned few of us, and fewer still willing to be Activist Elitists.
  • I refuse to accept the moderate-centrist framing. I will not abdicate my role in pushing the Overton Window further Left.
It has made many bolt for the door.
We need more Damned Elitists, JOIN IN!

DIANE G blogs at The Wild Wild Left.  She also maintains a radio program accessible at blogtalkradio.




America's Dire State of the Union

By Stephen Lendman

Last year, an earlier article discussed his first State of the Union address, accessed through the following link:

http://sjlendman.blogspot.com/2010/01/obamas-outreach-to-americans-empty.html

Predictable Media Response

called Obama “seductive” while Rachel Maddow said his address was “more of a CEO-style pep talk/prayer to the free market, to the nation building in our own nation.” She added that he defined the political center “not so much by what’s wrong with both sides, but by what Mr. Obama likes from each party’s wish list.” Other MSNBC hosts and analysts also expressed strong support. 

A Wall Street Journal editorial raised doubts about a business friendly president, saying:

A Reality Check

State of the Union rhetoric aside, his agenda embraces:

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/.