I think I’ve been subtly ignoring the first meeting of the Bowles-Simpson deficit commission and the Pete Peterson “fiscal responsibility summit” in the hopes that it would somehow go away. Clearly, that’s not happening. In fact, Peterson, the super-rich hedge fund manager who has a special welfare deal to pay his income taxes at a drastically lower rate than workers in the rest of the country, appears to have succeeded in ginning up a fake crisis timed with the entry of a Democratic President.
The President’s remarks at the Fiscal Commission’s first meeting certainly show that he’s bought into the conceit that the deficit is spiraling out of control and we have to do something, right now, to arrest. This conversation is taking place amidst 9.7% unemployment, a growth rate far too modest to cut into that jobless rate, and really no alternative but government spending and, yes, larger deficits in the near-term, to deal with the overriding issue. But throughout both the Fiscal Commission meeting and the Peterson summit, only one person, EPI’s Larry Mishel, made this point.
By contrast, the President demanded that “everything has to be on the table” for the Fiscal Commission, including his just-completed health care plan. This is always framed in the context of “tough choices” so the macho men can puff themselves up about what bold leaders they are. It actually doesn’t take much bravery to pull meager safety net benefits from the voiceless – and doing it in near-total secrecy, to boot. The Fiscal Commission doesn’t have to hold their meetings in public. They don’t have to make their minutes publicly available. They can merely go behind the door of a meeting room and plot. That’s not leadership.
Now the commission needs 14 votes out of its 18 members to create any recommendations for Congress to tackle with a vote. Given that 10 members were chosen by Democrats, with three each by Nancy Pelosi and Harry Reid, that should be an obstacle which would protect the safety net. But that’s not the case.
Co-chair Erskine Bowles is on the record that the commission will “mess with Medicare, Medicaid and Social Security, because if you take those off the table, you can’t get there.” Ann Fudge sits on a bunch of corporate boards and doesn’t have a clear position at this point. Alice Rivlin has been dying to get her hands on Social Security. Even Andy Stern said recently that entitlement programs “need to be re-examined”. These are the four Democrats the President placed on the panel. The three Senators appointed include Kent Conrad, who just passed a horrific austerity budget through his Budget Committee; Max Baucus; and Dick Durbin, who just said this:
But Senator Richard J. Durbin of Illinois, the second-ranking Senate Democratic leader, denounced suggestions of an administration VAT plan as the “musings of right-wing cable shows.”
He also admonished “bleeding heart liberals” to be open to program reductions to restore fiscal balance. An hour after the commission’s meeting, however, several liberal activists held a conference call with reporters to press for additional spending to create jobs, lower military spending, higher taxes for the wealthy and no cuts in Medicare or Social Security.
Pelosi’s picks include Xavier Becerra and Jan Schakowsky, who laid down her own marker on safety net benefits in a smart way, saying that “tax entitlements” – tax breaks for the wealthy – must be on the table as well. John Spratt, the more moderate chair of the House Budget Committee, has been a stalwart for entitlement programs as well. But as you can see, the Pelosi block is simply too small to stave off those kinds of cuts.
And the right-wing of this commission will simply stay united against any tax hikes. While Paul Ryan made some noise about “waste” in defense spending, it’s highly unlikely they would agree to cuts to military programs, either. Kent Conrad’s Budget Committee just cut foreign aid while increasing military spending, for example.
There are pathways to a greater fiscal responsibility in the long-term that have nothing to do with destroying the already meager benefit package for all Americans. You “fix” Social Security, which is not in crisis, by removing the contribution limit, period. You can fix health care cost growth with the kinds of choices that were jettisoned in last year’s debate (even a few of the ideas that got through will help). You can move America back toward the marginal tax brackets that created prosperity in the 1950s and 1960s. You can stop policing the entire world and being the military backstop everywhere. You can end the ridiculous amounts of corporate welfare in America and tell corporations that the cost of doing business here is paying your fair share. The ideas are out there but they don’t fit with the consensus inside the Beltway, that everyone in the country must “sacrifice” for the greater good. Everybody but those who live inside the Beltway, that is.
The Fiscal Commission is one long scare session designed to force right-wing solutions on the country that would dramatically increase inequality.



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And yet no one else comments on your post; does that speak to the age of most FDL’ers or ?
Americans feel hopeless in the face of DLC and New Democrat Coalition traitors now running the country with fake opposition from the GOP.
They know that nothing said will change corruption and stupidity, now that it is institutionalized.
I might add that paying off 14 comission members under the table won’t require the entire billion dollars that Pete Peterson has invested in his destroy SS and Medicare plan. He’ll still have some dough to leave to grandson Petey of the Bravo network, and pay for his senior moment twice-weekly head doctor visits.
I am still hoping Obama is buying into this (to which there is a solution), and not selling this (to which there is not).
Of course, it could be both.
So no one on the commission is going to speak for the tens of millions of people who have paid into Social Security for decades, have seen their 401(k)s and their IRAs decimated by Wall Street greed, and now have to read about greedy millionaires who want them to starve or freeze in the dark because it’s too difficult to do the right thing.
~~~ModNote: Let us try to keep the fantasy violence off of these pages.~~~
Does that mean that the public option is back on the table? :)
Nope. It means today we are more concerned about things like the tragedy/disaster in the Gulf.
Love ya, D-Day, but you yourself know that this is not news. You were still at Digby’s place when she posted this prior to the damn Inauguration.
Kirk Murphy, Hugh, myself and others pointed out the Hamilton Project during and after the primaries and were labeled “racists” or “doing the work of Rove.”
It wasn’t racist then, and it’s not racist now; Obama is not a good president, and is not a good Democrat in it’s true sense of the word.
With whatever fight I can muster, I’ll push back that SocSec and Medicare are STILL the 3rd rail of politics.
Fuck you Obama, you’re a miserable excuse.
Let’s compare and contrast.
“Up to $1 billion of the $1.6 billion reserve could be used to compensate for losses from the accident, as much as half of it for what is sometimes a major category of costs: damage to natural resources like fisheries and other wildlife habitats.
Under the law that established the reserve, called the Oil Spill Liability Trust Fund, the operators of the offshore rig face no more than $75 million in liability for the damages that might be claimed by individuals, companies or the government, although they are responsible for the cost of containing and cleaning up the spill….”
http://www.nytimes.com/2010/05/02/us/02liability.html
The plutocracy will continue to whittle away the rights, liberties and wealth of the working and middle class until they are nothing more than serfs and why shouldn’t they? They know the American public by and large are nothing more than marionettes. In Greece the people are on the streets. In the U.S. the people are watching American Idol.
It means we know we are screwed. “Entitlement”, my ass. Most of us paid a ton of money into SS and always suspected that this moment would inevitably arrive. Many of also knew that Obomba would be the Corporate Dem who would most likely bring this “Change we could believe in” to us, as well.
Of course that means SS. Here comes the privatization.
God that shtick gets so old, man.
Blaming those who don’t make these policy decisions makes sense to you?
Further, the Greek press and Unions are much stronger than here. Their situation is also more on the brink than here.
The two situations aren’t comparable.
But let’s imagine that the situation does become comparable here. If you told Americans “We’re taking your SocSec contributions you made in the past, AWAY FROM YOU” that people would tolerate that?
I don’t think so.
In addition, teabaggers have been protesting for a year, people are protesting this Peterson/Obama atrocity already, and Arizona has preempted the federal government.
The deficit hawks outnumber the few moderates on the deficit commission. Even Andy Stern, who is one of the few moderates, was saying the other day that we HAVE to do something about the deficit now; that we need to be in some big freaking hurry and the cuts were going to be painful.
Despite the CW at FDL that the V.A.T. is a non-starter, it continues to be floated, even advocated, by the most influential actors, just over the last few days. Barack Obama, Paul Volker, both chairmen of the deficit reduction commission (Bowles and Simpson), and Nancy Pelosi, on the Charlie Rose Show, have recently spoken about it approvingly.
That they are floating this idea means they either want to see if it gets shot down, as Bush’s attempt to privatize social security was, or the oligarchy intends to create the false impression of looming national bankruptcy (a strategy which has already begun), and thereby scare the American people into accepting the VAT, social security and medicare cuts. etc. as an unfortunate but painful necessity.
This is shaping up to be another episode of disaster capitalism, the shock doctrine of impending financial meltdown, that created the Wall Street bailout.
I agree. I do think that Otrouble will give it try.
We need to push back with “What about the damn wars, assholes!?”
Lisa Derrick is upstairs!
May Day! May Day! In DC, Freaky Fundies, Congressmen Will Pray to Lift America’s “Curse”
Right. That’s such the 3rd strike, it’s amazing.
Strike 1 – FISA flip
Strike 2 – Hamilton Project/Rubin
Strike 3 – War continuance
I’m not one of these folks to sit at home and not vote. So what I AM going to do is vote quite strategically.
For DeGette’s seat, I’m writing myself in.
For Bennet’s seat, I’m voting for the primary challenger, Romanoff
And so forth.
When it comes to 2012, we’ll see, but I am not voting for Obama, period.
Thers is upstairs!
Late Night: And Jesus Said, “I Say to You, Lock up the Scientists”
wow! this website has gone to the TPs
Obama/Rahm say Liberals/progressives have no place else to go – so the idea is to “get something done” which only requires getting blue dogs plus Maine GOP ladies.
And Obama will sell his kids to get those blue dogs/Maine ladies – the principles of the Democratic Party are not his concern.
After all, Obama has his legacy to worry about – and that means getting something done.
Interesting that we now have a President to the right of the DLC and some moderate GOP – BUT THEN THE LEFT HAS NO PLACE TO GO.
Democrats will lose control in Nov 2010, and I hate the idea of GOP control – but I will not help with the continuation of the Obama destruction of the ideals of the left.
SS retirement age to age 70 by 2050 making the reduction for early retirement at age 62 larger in 2050 is just about a given since mortality improvements do logically support the idea.
Removing the wage cap makes since but Obama is too much for a coward to go for it – same reason buy in Medicare will not be part of the suggestions – and same reason Maryland style state setting of hospital gross-up margins will not be seen and Singapore style setting of the price that will be charged for office visits and standard common procedures will not be seen, and same reason tax increases for those above the mean wage for the top 20% – $112,000 – will not be on the table. And forget about any new tax like an asset tax with a $1000000 deductible so it hits the rich.
Instead a sales tax that hits the poor will be pushed – the VAT
Military spending will not be touched because they will sell us that we are not spending on bombs and war – we are really spending on “jobs”
Indeed Rahm will generate a lot of contributions to both Dem and GOP as corporations use money to get on the band wagon that their contracts are just about “jobs”.
More Cape Wind approvals will be tossed to the left as they never mention that Cape Cod can’t use the extra wind energy given the current set-up of power plants – and transmission to other areas replaces nothing – it is just an extra cost.
But wherever there are unions – as in government including teaching and nursing – we will cut the funding so those jobs disappear. You see, Obama has a plan.
There is a long article at MSNBC.com, stating over and over that we have a horrible, intolerable, grotesque, enormous deficit, which we must eliminate immediately.
They go on:
Everyone agrees, even with 10% unemployment, with government spending on job programs, aide to local and state governments, unemployment insurance, needed like never before, they only thing that is important is the deficit, which was brought on by the Wall Street bailout, fighting two wars and plummeting tax revenues due to the economic crisis. Forget Joe and Jane Sixpack, struggling to find jobs, pay the rent, feed their children — they don’t matter. What matters is what Ben Bernanke thinks and he thinks it’s time for the rest of us to sacrifice.
Funny that when it comes to media articles about this manufactured crisis, the 800 pound gorilla in the room, the “defense” budget is never mentioned, even though it constitutes more than 50% of the federal budget.
We turn the subject to government spending and presto! the hundreds of billions for weapons and warfare are magically forgotten. It’s a miracle really. The only items that exist during this discussion are programs that actually benefit the American people, not the oligarchy.
Do we need any further proof that the mainstream media is a megaphone for the Beltway establishment, the corporations and the rich? The money keeps flowing upward from the taxpayers to the elites. This is never discussed. But programs that the people pay into, to ensure minimal protection against adversity and old age, are fair game.
We have a kleptocracy, and they are in the process of ginning up fear about a non-existent crisis, so that they can get their hands in our pockets again. And both parties are in on the scam and want a share of the booty. The system is completely corrupt.
Although many people are living longer, it doesn’t automatically follow that they have the stamina and excellent health required to meet the demands of a full-time job. Elderly people as a rule end up in lower paying, lower status jobs than the ones they may have held when they were younger. These types of jobs are often more, not less, physically demanding.
This is the fallacy of raising the retirement age to 70. I can assure you, people over age sixty experience a gradually diminishing capacity for physically and even mentally taxing work. This varies greatly between individuals but there is a general decline in everyone over time.
Cancer, other chronic disease and death increase markedly in each decade of life from the fifties, to the sixties, to the seventies.
Forget the fantasy that modern medicine has defeated old age. It can extend our lives and make us feel better longer, in many cases. But it can’t prolong our youth.
Insisting that grandma and grandpa keep working hard through their declining years, even though statistics show they probably suffer from chronic diseases and physical fragility, is really harsh. An affluent society should honor the productive lives of older workers by allowing them a dignified retirement. Grandma and grandpa should be rewarded for their lives of sacrifice with some rest in their old age. If we need more money to afford this, we can tax the rich; they have more money than they know what to do with anyway.
This deficit commission was ordered on the very day Coakley lost in Massachusetts. It shows how serious Obama and the Democrats are about looting Social Security and Medicare. That warning shot didn’t stop them for a second. For wars and banksters, they find trillions without hesitation. The major programs to keep old age from being a time of fear, poverty, and sickness, these are fair game in their eyes. If the evil they would do is the measure of them, then these are very evil people indeed.
FUCK Obama and his Republican leanings and bonking buddies. I’m so god damn sick of that prick and his “centrist” ideas. They aren’t centrist, they’re elitist ideas. They are for the rich, for corp america. He may deep down care about us, but he’s so busy takin it in the rear by the GOP and corp america so he can keep the donations coming, that it’s hard to see most of the time. Sorry for the foul language, but I’ve had it up to my eyeballs with this lame Congress and WH. If they take one cent of our stingy social benefits away, I will vote GOP in 2010/2012. WTF difference does it make? Not enough to give these worthless shits my vote again, that’s for sure.
I’ve got a brilliant idea. Tax ALL income on ALL people…that would help SS and Medicare. People who file taxes and have over 2 million dollars at age 65 don’t get SS or Medicare. They clearly don’t need it. Put the tax rate back to 90% for the richest in the country. Force the Feds to pay back SS, by downsizing the army to about a 1/5 of it’s current size. Stop all pay and benefits to all Congress memebers and the Pres until they get their heads screwed on straight and start serving our interests instead of their own. Again, sorry for the rant.
You stated it right. Solution is simple, implementable and good for long term prosperity of our country, moral state of our country as intended by our founding fathers, our nations standing in the world and re-initiate march towards better and a more egalitarian society (the march we had till start of 1970s due to graded tax rates going upto 90% which is fair since those revenues are generated through tax payer funded resource utilization).
Do you really think they will wait for the golden eggs. They will go for the golden goose and destroy the country and its moral standing if they get a chance.
Yeah, but somewhere yesterday I read that mortality improvements only apply to people in the upper half of the income distribution. I was lucky enough to be born into that half, so I’m in great health at 73. Some of my friends are already dead, others are in healthy old age like me. I kind of wish I’d waited until age 65 to start drawing my SS, but there were exigencies at the time. So now I’ve reached the crossover point.
If anyone still thinks America hasn’t been “Shock Doctrined” here’s your proof.
Might as well be in Greece right now.
I wonder how the tea baggers will like THIS one?
I will find it interesting to see how I live w/o SSI and Medicaid which will be cut off in December anyway if our wonderful Congress doesn’t intervene and by then, we’ll have a House full of republicans… soo…
Votes don’t count. I vote because I can. I feel like an Iraqi right now.I think it’s pretty clear that when half the country wanted a PO and they ignored us, that they fear not our votes.
Why? Is it because it’s not like the The Obama Cult site
…the President demanded that “everything has to be on the table” for the Fiscal Commission, including his just-completed health care plan.
Except for putting taxes on the rich back to normal levels, making corporations with record profits even pay taxes, stopping two wars and reducing the military budget.
Oh yeah, absolutely. First end the utter obscenity of war. Stop the killing.
Then audit the Fed.
Exactly! EVERYTHING is on the table…..except that which would truely fix the problem and be the moral and fair thing to do for EVERYONE in the country…..not just his buds.
‘the President demanded that “everything has to be on the table”’
No, he has not. Defense and security spending is not “on the table”. Neither is a good hard look at the cost of the bailouts and how to finance the next ones out of taxing bank profits to finance resolution insurance.
‘Durbin also admonished “bleeding heart liberals” to be open to program reductions to restore fiscal balance.’
How about bleeding ass liberales being open to cutting funding for illegal war and occupation?