Understanding the Fiscal Cliff (in 2 minutes, 30 seconds)
12.03.2012
01:57 pm

Topics:
Class War
Economy
Politics

Tags:
Robert Reich


 
I’m getting so sick and tired of hearing about the so-called “fiscal cliff” except for the heartening rising chorus of rational voices in the matter—like former Clinton administration Secretary of Labor Robert Reich—who stick to their guns about how to deal with it.

Let’s face it, to go by 2009 and the debt ceiling brouhaha, Obama is one fucking shitty negotiator. Unless there is tons of public pressure put on him to do the right thing, I fear he’ll cave in to the Republicans on raising the retirement age, only modestly raising taxes on the rich and cutting social safety nets. Don’t trust Obama, put lots and lots of pressure on him.

House Speaker John Boehner today made a counteroffer in the negotiations including proposals to increase the Medicare eligibility age and cut Social Security benefits. Forget about the GOP, they’re a lost cause, apply the pressure where it might make a difference, on Obama and the Democrats.

Find the necessary savings in corporate welfare and in the bloated military budgets, it’s the only acceptable path (and one with a whole lot of knock-on effect WIN along the way).

Although Reich addresses his essay to Democrats, I’d prefer to think of this as appealing to every American who isn’t a fucking idiot…

Democrats, here are eight principles to guide you in the coming showdown over the fiscal cliff:

ONE: HOLD YOUR GROUND. The wealthy have to pay their fair share of taxes. That’s what the election was all about, and we won. It’s only fair they pay more. They’re taking home record share of national income and wealth, and have lowest effective tax rate in living memory.

TWO: NO DEAL IS BETTER THAN A BAD DEAL. You’re in a strong bargaining position. If you do nothing, the Bush tax cuts automatically expire in January, and we go back to rates during Clinton administration. Which isn’t such a bad thing. As I recall we had a pretty good economy during the Clinton years.

THREE: MAKE REPUBLICANS VOTE ON EXTENDING THE TAX CUTS JUST FOR THE MIDDLE CLASS. After all the Bush tax cuts expire, have Republicans vote on an extending the Bush tax cut just for the middle-class. If they refuse and try to hold those tax cuts hostage to tax cuts for the wealthy, it will show whose side they’re on. They’ll pay the price in 2014.

FOUR: DEMAND HIGHER TAX RATES ON WEALTHY, NOT JUST LIMITS ON DEDUCTIONS. Don’t fall for Republican offers to limit some tax deductions on the wealthy. Demand we go back to higher tax rates on the wealthy and eliminate their unfair tax loopholes, so they truly start paying their fair share.

FIVE: DON’T CUT SAFETY NETS. Don’t sacrifice Medicare or Social Security, or programs for the poor. Americans depend on these safety nets and can’t afford any benefit cuts.

SIX: DON’T CUT INVESTMENTS IN OUR FUTURE PRODUCTIVITY. Education, basic R&D, and infrastructure aren’t spending; they’re investments in our future prosperity. If the return on these investments is greater than the cost, they ought to be made, period.

SEVEN: CUT SPENDING ON MILITARY AND CORPORATE WELFARE. You want to cut, cut spending on the military — which now exceeds the military spending of the next 13 largest military spenders in the world combined. And cut corporate welfare — support to agribusiness, oil and gas, Big Pharma, big insurance, and Wall Street.

EIGHT: PUT JOBS BEFORE DEFICIT REDUCTION. Finally, Don’t cut the budget deficit as long as unemployment remains high. Otherwise you’ll cause the economy to contract, making the deficit even larger in proportion. That’s the austerity trap Europe has fallen into. We need to create American prosperity, not European austerity.

Remember: Jobs come first.

Hear, hear! Please spread this message far and wide.
 

Posted by Richard Metzger

 

 

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