The austerity-based class war against the American people
Rapidly rising deficits at both the federal and state and local government levels, along with prospective long-term financing problems in the Social Security and Medicare programs, have triggered a one-sided austerity-focused class war in the US and around the globe.
A coalition of the richest and most economically powerful segments of society, conservative politicians who represent their interests, and right-wing populist groups like the Tea Party has demanded that deficits be eliminated by severe cuts at all levels of government in spending that either supports the poor and the middle class or funds crucial public investment. It also demands tax cuts for the rich and for business. These demands constitute a deliberate attempt to destroy the New Deal project, begun in the 1930s, whose goal was to subject capitalism to democratic control.
In this paper I argue that our deficit crisis is the result of a shift from the New-Deal-based economic model of the early post-war period to today’s neoliberal, free-market model. The new model has generated slow growth, rising inequality and rising deficits. Rising deficits in turn created demands for austerity. After tracing the long-term evolution of our current deficit crisis, I show that this crisis should be resolved primarily by raising taxes on upper-income households and large corporations, cutting war spending, and adopting a Canadian or European style health care system. Calls for massive government spending cuts should be seen as what they are – an attack by the rich and powerful against the basic interests of the American people.
http://tinyurl.com/7cxvbfm
Obama’s middle-of-the-road austerity budget “less savage” than Republican proposals
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The Secret Austerity Society: Bipartisan Group Works on Grand Bargain
Intransigence from Republicans basically kept us out of a grand bargain last year. Plenty of Democrats were willing to do it, the White House was more than willing to do it, and even John Boehner was willing to do it, at least on a conceptual level. But House Republicans wouldn’t betray their tax pledge and so it didn’t happen.
There are some different dynamics to the next round of the grand bargain. There are still enough Democrats willing to deal, led by House Minority Whip Steny Hoyer. The White House has de-emphasized a deficit deal, but their budget still shows a blueprint for one, and if they get revenue in exchange, they’ve stated openly that they would make cuts to Medicare and other social programs. So is there a new willingness on the Republican side? According to The Hill, Republicans have joined a bipartisan working group that is preparing a document on deficit reduction.
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