BY MARTÍN KOPPEL
The wrangling over the federal budget between Republicans in Congress and the Democratic White House dominated the political arena in Washington in the first half of November. While much attention was focused on the shutdown of "nonessential" government services resulting from the budget maneuvers, the main issue at stake is Medicare and other social gains of working people, which both parties are seeking ways to cut.
In late October the House of Representatives and Senate approved similar proposals to cut deeply into social programs under the banner of "balancing the budget" during the next seven years.
The capitalist politicians drafted plans for $245 billion in tax cuts and a lower tax on capital gains (profits) benefiting the wealthy. At the same time they proposed to cut $270 billion from Medicare, the health insurance entitlement that covers 37 million retired workers and others. They would also slash Medicaid, the health insurance for workers who are poor, by $170 billion.
Later, the Senate and House agreed to raise Medicare premiums, paid by beneficiaries, by 15 percent to $53 a month.
Both houses also approved a measure to gut welfare programs, which 36 million workers rely on. The joint bill would eliminate the federal mandate of providing assistance to every family that meets eligibility requirements and would instead issue "block grants" to state governments, giving them the power to cut benefits and restrict eligibility even more.
Among other things, the measure would junk the food stamp and school lunch programs; allow states to deny funds to unmarried mothers under the age of 18; cut off payments after five years, and after two years if adult recipients remain jobless; and deny food stamps and other benefits to most immigrants.
President Bill Clinton has demonstratively vowed to veto these measures, warning that the Republicans' budget goes too far too fast.
The Democratic leader, however, has countered with similar proposals to slash workers' social wage. He insisted he would "continue to fight for the right kind of balanced budget."
Clinton has called for reducing Medicare by $124 billion and Medicaid by $55 billion, while cutting $111 billion in taxes for the rich. He agreed with the demand to eliminate welfare programs, but criticized the congressional bill for cutting too much from school lunch programs, food stamps, and other benefits. "You can have reductions in cost inflation in Medicare and Medicaid, without these Draconian consequences," he stated.
The maneuvering over the social cutbacks heated up in mid-November when Republicans in Congress submitted a stopgap spending bill designed to press Clinton on their budget proposals. Congress passed a bill to finance government operations through November in the absence of a budget, but tacked on a hike in Medicare premiums. Clinton vetoed it November 14, leading to the closing of "non- essential" federal services and the temporary layoff of 800,000 public employees.
Clinton also vetoed a congressional bill that would have temporarily lifted the government's $4.9 trillion ceiling on borrowing. Treasury Secretary Robert Rubin took emergency steps - auctioning off Treasury bonds - to raise funds to pay $25 billion in interests to wealthy bondholders that were due November 15.
Posing as a defender of Medicare, the president has vowed to veto the joint budget proposal that Congressional leaders are hammering out. At the same time, the big- business media has noted that no major differences mark the two sides . Clinton, a Wall Street Journal editorial remarked, will "endorse most GOP goals, even if he'll fight over the fine print."
The posturing on both sides reflects the politicians' nervousness about the strong opposition among working people to cutbacks in Medicare or other hard-won social gains. This widespread sentiment has been noticeable at recent union-sponsored demonstrations. Some 10,000 workers marched in New York City November 2 to protest Medicare and Medicaid cutbacks. A similar demonstration of 10,000 took place two days later in Columbus, Ohio.