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Capitalism's New Era

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The most immediate and important demand of working people must be taxing the rich and corporations, since social programs need to be funded and expanded, and a massive jobs program with a strong green component is desperately overdue. It's not by coincidence that taxing the rich is rarely used in austerity plans; and when on rare occasions the rich are taxed, it's at low levels with high publicity, so the angry public will think the illusion of "shared sacrifice" is a reality.

For example, in the U.S. President Obama is again calling to end the Bush tax cuts for the rich (after allowing them to continue less than a year ago). It is doubtful that the Bush tax cuts will be ended, but if they were, it would be insufficient. Working people must demand that taxes on the rich be raised to at least pre-Reagan levels (70 percent), while President Eisenhower levels would be best (90 percent). Over the decades the tax burden has shifted dramatically, causing wealth to accumulate into the bank accounts of the top 1 percent of the population, the same people who are now demanding that social programs be destroyed so that their investments are secured and their corporate profits remain high.

Since illusions of an economic recovery have now been shattered, it's up to working people to demand that their labor unions and community groups unite to tax the rich and corporations in order to finance a massive jobs program. Fortunately, the AFL-CIO is organizing actions for the first week of October to demand jobs and oppose cuts to Social Security, Medicare and Medicaid. Many within the labor movement are calling for massive demonstrations across the country for October 1. It will take these types of actions to unite working people to fight for a positive solution to the economic crisis.

Shamus Cooke is a social service worker, trade unionist and writer for Workers Action (www.workerscompass.org

http://online.wsj.com/video/roubini-warns-of-global-recession-risk/C036B113-6D5F-4524-A5AF-DF2F3E2F8735.html
http://www.reuters.com/article/2010/05/27/us-spain-idUSTRE64Q54T20100527
http://www.guardian.co.uk/world/2011/aug/02/greek-austerity-plan-work-thinktank

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Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org)
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