This piece was reprinted by OpEd News with permission or license. It may not be reproduced in any form without permission or license from the source.
"Under closer inspection, there wasn't really that much 'new' in (Obama's) announcement, except" that he "repeal(ed) everything he said he stood for during the election campaign like reducing the extreme income bifurcation exacerbated during the Bush era."
That aside, his "bells and whistles" still leave growth "totally abnormal," a slow-growth economy producing way too few jobs, what it mostly needs to revive. Moreover, state and local cutbacks add another cloud as well as possible European debt defaults. Key is that administration and Fed policies show "the US has no intention of getting its fiscal house in order."
There will be a price to pay" for excessive borrowing and bad policies overall, especially ones leaving the housing market and jobs situation in disarray. The former is still cratering, the latter getting no stimulus help. On the contrary, Obama aggressively targeted labor, including through auto industry forced GM and Chrysler bankruptcy and reorganization wage-cutting, reverberating throughout the industry and others. At the same time, he intervened to quash any attempt to impose pay limits on executives of corporate swindlers, especially insolvent banks, leaving them free to speculate with public money but do nothing to increase lending to stimulate growth.
A Final Comment
Congressional Democrats still control both Houses with substantial majorities and will until the 112th Congress convenes in January. Yet, on December 7, New York Times writers David Herszenhorn and Sheryl Stolberg headlined, "Obama Defends Tax Deal, but His Party Stays Hostile," saying:
Despite Vice President Joe Biden's efforts to enlist support, he "failed to convince many of his old Senate colleagues to line up behind the plan at a tense lunch meeting....About a dozen Senate Democrats (voiced support). Aides said about 30 were firmly opposed, leaving 16 or so undecided" with no assurance deficit hawk Republicans will back their leadership's push for passage.
Opposition rhetoric from both Houses is strong. Senator Bernie Sanders called the deal "an absolute disaster and an insult to the vast majority of the American people," giving tax breaks to the rich, "driving up our deficit, and increasing the growing gap between the very rich and everybody else."
The same Bernie Sanders railed against Obamacare and financial reform, leaving industry giants unregulated, unaccountable, and unrestrained, then caved by voting to pass both. Expect a repeat if his vote is needed, as well as from enough Democrats to assure victory for Republicans and the wealthy, a giveaway transfer of more wealth to those already with too much, leaving working people on their own to take the hindmost.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
3
3
2
