Vol. 74/No. 48      December 20, 2010

From the beginning, Obama has urged the panel to find “common ground” in proposing massive cuts in social programs. While the commission needed 14 votes to recommend its program to Congress, the 11 votes in favor is considered a success by the Obama administration toward putting together a bipartisan plan.

In its preamble the commission report says, “The problem is real. The solution will be painful. There is no easy way out. Everything must be on the table.”

The idea of working-class “sacrifice” was also the White House theme in announcing a two-year wage freeze for all federal workers last week. The commission’s proposals go even further, including a three-year freeze on federal workers’ pay, along with cutting 200,000 jobs through attrition; gradually raising the retirement age to receive full Social Security retirement benefits; a 15 cents per gallon increase in the federal gasoline tax; and beginning to tax employer-provided heath insurance. The tax rate for the wealthiest individuals would decline from 35 percent to 29 percent.

For the 2011 fiscal year, the U.S. deficit—the difference between what the government takes in revenue and what it spends—is projected to be $1.26 trillion. A great percentage of the federal debt pays for Washington’s wars. In addition to increasing military spending annually, there are mounting payments on interest and principal to the wealthy bondholders on debt from past wars. These payments always take priority.

Democrats and Republicans alike explain that all Americans, whether worker, farmer or banker, have a stake in lowering the deficit. “Our debt crisis is a threat not just to our way of life but to our national survival,” said commission member Michael Crapo, a Republican senator from Idaho.

Democratic senator Richard Durbin of Illinois said, “I’m going to say something now that is heretical on the left and they won’t like me for saying it, but what you have suggested in increasing the Social Security retirement age is acceptable to me.”

A number of the proposed cuts recommended by the commission are steps many state and city governments have already been implementing to deal with budget crises. These measures fall hardest on working people.

Illinois has not made annual payments to its pension funds for years; many other state governments are following suit this year. New York State has held off payments to vendors and local governments and shorted workers’ pension funds to try to balance the budget. New Jersey governor Christopher Christie has not paid $3.1 billion due to that state’s pension plan. A number of states delayed paying tax refunds in the spring. At the same time, layoffs of public workers are rising nationwide.

Further assaults are being prepared under the banner of deficit reduction, as workers continue to face record unemployment, cuts in benefits and health care, and foreclosure and lack of affordable rents with no relief in site. Washington is attempting to lower expectations among working people of what they have a right to while pushing down their standard of living. “Sacrifice” by working people is now the new mantra of this bipartisan crusade.
 
 
Related articles:
Grinding joblessness confronts millions in the United States
How capitalist politicians go after Medicare
‘The rulers must radically lower expectations’  
 
 
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