I want to hone in on one part of Matt Stoller’s acidic take on politics circa 2012, the part about social insurance programs:
Whether Romney wins or Obama wins, both Social Security and Medicare are on the table for deep cuts. Romney is explicit about this, whereas Obama couches this in terms that liberals will not understand. When he talks about popping a blister of partisanship by winning an election, what he means is cutting a deal with the Republicans to restructure these programs. Sen. Dick Durbin has been telling reporters that the Obama administration is going to give the entitlement-gutting Simpson-Bowles budget framework another try if he wins, and close Obama advisers are looking for a grand bargain on taxes and entitlement reform. Obama already tried to raise the Medicare eligibility age and cut Social Security benefits during the debt ceiling negotiations. Meanwhile, corporate titans and Democratic elites like Andy Stern and Steny Hoyer are already gathering to put this framework into place in the post-election environment, regardless of who wins.
You know where I stand on this. There’s a fault line between the parties on this – particularly on Medicaid, where there’s a legitimate difference – but overall the fault line is not at all worthy of being called a “great debate.” One side (Republicans) wants to transform safety net programs and would probably get no further than cutting them; the other side (Democrats) wants to cut them and will use its power to force their allies along. Democrats have become the party of austerity, and they see the question as, bizarrely, one of credibility. You don’t earn your stripes in Washington unless you hurt a poor person, I guess.
Sadly, even in the midst of the speeches over the last two days, you had some austerity policy snuck in. Bill Clinton had a piece about Bowles-Simpson, the least well-received part of the whole address. Elizabeth Warren had a (fleeting, admittedly) reference to reducing debt, and she wasn’t talking about private individuals, for whom it would be a good strategy. Cory Booker introduced the party platform with several paeans to deficit fetishism. And according to a top aide, the President will pursue this as well tonight.
Stephanie Cutter, appearing on CNN’s Starting Point on Thursday, said, “I think you will hear the president lay out his plan of balanced deficit reduction where everybody pays their fair share and we cut what we don’t need and that includes entitlement reform.”
It doesn’t matter that the rank-and-file views this with skepticism. We saw how much the rank-and-file mattered on that platform vote yesterday. They’ll fall in line.
The austerity experiment in the rest of the world has been a total failure. The US is in a slightly better economic position at the moment, but that doesn’t really make it any better a position to sharply pull back on fiscal accommodation. Indeed, the fiscal accommodation is one of the reasons the country IS in that better economic position, relatively speaking. And the adequacy of these programs for beneficiaries should really be the focus rather than actuarial projections 25 years in the future. That’s especially true when there’s an ongoing mass employment crisis, a fire burning through the country of wasted human capital.
But Democrats have truly embraced this policy of fiscal austerity. What saved us from this once is the total intransigence on the part of Republicans to accept a good deal and provide the cover in the form of a modest tax increase. If Democrats let the Bush tax cuts expire, however, they can get what they term a modest tax increase through a tax cut bill, and layer on their spending austerity changes, including social insurance. So even if there’s no warp-speed “deal” after the elections, you would have to look out for one shortly thereafter.
If you want to raise your voice in dissent, now would be a good time.




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Cutting the deficit will deflate the economy. Deflation benefits creditors as opposed to debtors. Creditors are Wall Street and the 1%.
The march to neo-feudalism rooted in debt slavery continues — these are the marching orders Obama has been following since 2008.
It took a Democratic president to sell NAFTA to labor unions. Now, another Democratic president expects to sell cuts in New Deal programs. In the immortal words of George W. Bush, “Fool me once, shame on — shame on you. Fool me — you can’t get fooled again.”
Sorry, but one thing I’ve learned in the last 20 years about voicing dissent with essentially a one party corrupt system, is no one in power listens. Obama lied about his liberal credentials and program in 2008 and continues to lie today. While Romney/Ryan and the GOP have taken mendacity to a new level, you have to wonder how much more our Nation can take on the road to perdition we’re on, regardless of who wins.
When I bring this up with the frothing Obamabots, they look like they want to drag me to the nearest tree and lynch me.
This is heresey and will not be tolerated.
From Stoller’s article:
I have been writing to my ‘list’ about Dems capitulating on Social Security and Medicare and Medicaid since Obama created the BS commission and FDL exposed the ‘grand bargain’. Most folks do not reply either out of ‘what can you do?’ paralysis or perhaps disbelief. One Democratic district chief confirmed that the Party line is that we must do something about this ‘deficit’. What can I do about that?
Methinks we do not ‘count’ and are not listened to anymore.
The servile silence is deafening.
A loss of 10% of the income of the bottom two deciles because of austerity based ‘cuts’,— ranging from 1000 to 2000 dollars, if income is 10,000 or 20,000 dollars respectively—will devastate low-income folks. The Brits have already conducted this experiment and have learned that austerity does not work and that austerity hurts the most vulnerable, the most deeply. The elites never pay the price of austerity during Depressions. One more reason to hate these despicable, amoral zillionaire politicians and their corporate puppeteers.
Keynes was right (and a PROVEN winner) Milton Friedman was wrong (A PROVEN loser) so who do the Dems enbrace? A loser. that is why I will not support them. Nice try with Biden blowing smoke about no cuts to SS The GOP sucks and I will not support them either but at least they are somewhat honest; Obama wordsmiths and lies just like Clinton. Well time to smile and dial on the phone and tell our clowns in Congress vote for cuts in SS and you will not get your vote!
That says it all. They ignored actual credentialed delegates at their own party’s convention in order to let Fox News Channel write the platform. As a non-credentialed independent who votes third-party, they sure aren’t going to listen to me.