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Tag Archives: Debt Commission

Obama Has Been Consistent on Social Security—He Wants to Cut It

08 Friday Jul 2011

Posted by Craig in Deficit, Obama, Politics, Social Security

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Tags

1997, Alan Simpson, cuts, debt ceiling talks, Debt Commission, Erskine bowles, Jay Carney, milk cow 300 million tits, Newt Gingrich, preserve, President Obama, privatization, Social Security, strengthen

After the news broke yesterday about President Obama putting Social Security cuts on the table in the debt ceiling talks, the White House immediately went into CYA mode:

“White House spokesman Jay Carney commented on the reports concerning Social Security cuts Thursday morning.

“There is no news here,” Carney said. “The President has always said that while social security is not a major driver of the deficit, we do need to strengthen the program and the President said in the State of the Union Address that he wanted to work with both parties to do so in a balanced way that preserves the promise of the program and doesn’t slash benefits.”

Carney is right about one thing, there is no news here. The president has been consistent in his plans to “strengthen” and “preserve” Social Security. Like appointing Alan Simpson and Erskine Bowles co-chairs of the so-called Debt Commission, which turned much of its focus to cutting strengthening Social Security by raising the retirement age (a benefit cut) and re-figuring the COLA (another cut). Never mind that SS has nothing to do with either the debt or the deficit. Simpson has made no secret of his contempt for Social Security and its recipients:

“I’ve made some plenty smart cracks about people on Social Security who milk it to the last degree. You know ’em too…We’ve reached a point now where it’s like a milk cow with 310 million tits!”

And it was Erskine Bowles who, while serving as Bill Clinton’s Chief of Staff in 1997, was in the process of negotiating a deal with then-Speaker Newt Gingrich which included the partial privatization of Social Security before the Monica Lewinsky scandal broke and blew (so to speak) that out of the water.

Nothing new to see here. Move along.

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GOP Agenda: Meaningless Generalities and “Going Back”

19 Monday Jul 2010

Posted by Craig in budget, Congress, Conservatives, economy, financial reform, Obama administration, Politics, Republicans

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David Gregory, Debt Commission, free enterprise system, generalities, Hanes, John Cornyn, Meet The Press, Pete Sessions, Peter King, Republican agenda, ship jobs overseas, specifics

It appears that Republicans are following the advice of Rep. Peter King (R-NY) about laying out their agenda for what they would do should they regain control of the House in the November mid-term elections. On Bill Bennett’s radio program last Thursday, Rep. King said this:

“I don’t think we have to lay out a complete agenda, from top to bottom, because then we would have the national mainstream media jumping on every point trying to make that a campaign issue.”

Yesterday on Meet the Press Rep. Pete Sessions and Sen. John Cornyn, both of  Texas (sigh) continued with that theme. When David Gregory asked Sessions to explain what the GOP would do to cut the deficit, Sessions replied with meaningless generalities like these:

“We need to live within our own means.”

“We need to make that sure we read the bills.”

“We are going to balance the budget.”

“We need to make sure that…we look at all that we are spending in Washington D.C.”

Sessions added something which stood out to me when Gregory pressed him for specifics. “He [Rep. Chris Van Hollen D-MD who remarked earlier about removing tax incentives for employers who ship jobs overseas] wants to diminish employers’ ability to be able to be competitive across the world…We need to go back to the exact same agenda that is empowering the free enterprise system rather than diminishing it.”

“Employers’ ability to be competitive across the world.” For instance Hanes:

“As recently as 2006 when Hanes was spun off from its parent Sara Lee Corporation, the company had 19 plants in the US and Puerto Rico. It currently has seven with one (Forsyth, NC) more scheduled to close by year-end 2010. Hanes now manufactures its wares across 17 plants and production facilities scattered across the Caribbean and Central America (Haiti, El Salvador and Honduras) to South East Asia (Bangladesh, Thailand, Vietnam), Micronesia (Saipan, Marshall Islands), a China manufacturing hub and one plant in Mount Airy, North Carolina.

…two thirds of the growth in earnings for Hanes came as a result of moving its production offshore and from financing activities.

Who benefits? Well management certainly does as do the shareholders. Its stock closed today at $25.97 up 78.3 percent year-over-year. Its CEO, Richard Noll, was paid $5.7 million in 2009. Not bad for a manufacturer of underwear and hosiery. Meanwhile, the company’s average wage in Bangladesh is $0.33 cents an hour. Of its 50,000 employees worldwide, less than ten percent work in the US.”

This is the “free enterprise system” that Sessions and his fellow Republicans want to “empower rather than diminish.” Great for creating jobs in Bangladesh, not so much in America. Not to mention the “go back” remark. There’s the GOP agenda in a nutshell.

Cornyn’s answer to the question was much the same, adding that he wants to wait and see what the debt commission has to say. Way to face up to those tough choices, Sen. Cornyn. Watch:

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Time for a Leader, Not a Politician

07 Wednesday Jul 2010

Posted by Craig in budget, Congress, economy, Obama, Politics

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1937, anti-deficit, anti-spending, clean energy jobs, David Axelrod, Debt Commission, depression, fearmongering, Gulf oil spill, long-term unemployed, mid-term elections, middle-class, President Obama, Rahm Emanuel, recession, right-wing noise machine, Ross Perot, Social Security privatizers, Tim Ryan, unemployment

“The easiest thing in the world for a politician to do is tell you exactly what you want to hear.”—Senator Barack Obama during the 2008 presidential campaign when the other candidates were calling for a gasoline tax holiday in the face of soaring oil prices.

It’s time for President Obama to take some advice from Senator Obama and not from his political advisers in the White House, like David Axelrod and Rahm Emanuel, who are telling him that the public mood is anti-spending and anti-deficit, and that it will be politically advantageous in the upcoming mid-term elections for him and the Democrats to play to the fear of a deficit boogeyman being ginned up by the right-wing noise machine and the president’s political opponents. Opponents who, let’s face it, don’t want to see unemployment go down or the economy improve between now and November. If the Republicans can get the president to focus on the deficit and cutting spending while unemployment hovers around 10%, they’ll be happy as pigs in slop, so to speak.

President Obama doesn’t help to counteract  the fearmongering when he does things like proposing spending freezes and initiating a debt commission stacked with deficit hawks and Social Security privatizers. In my opinion, this is a golden opportunity for a teaching moment.

If I were advising the president I would suggest a series of television appearances like Ross Perot did during his short-lived presidential campaign in 1992, (before he went all black helicopters, that is) complete with charts and graphs to illustrate his points. The American people, for the most part, aren’t stupid. We get a lot more than politicians and their political advisers give us credit for.

The president could start with a history lesson from 1937. About how FDR gave in to the deficit hawks of his day and started cutting spending before the country was out of the Great Depression which led to a “recession within the Depression” and delayed the recovery.

He could explain the stimulative effects of unemployment benefits. How that every dollar which goes out comes back as $1.64. How that almost half of the unemployed have been out of work for 6 months, something that hasn’t happened since the Labor Dept. started keeping that statistic in 1948. How the unemployed aren’t lazy bums looking for a handout—another popular meme of the noise machine—but that there are 6 applicants for every job opening, and that those over 50 who are disproportionately affected are Americans who have worked for the better part of their lives and have been caught up in an economic situation beyond their control. In their time of need they need our compassion, not our condemnation.

He could use the Gulf oil spill as a springboard to re-invigorate American manufacturing jobs in the field of clean energy, which leads to more people paying taxes and reduced deficits. We could be a country that makes things again, and in the process breathe new life into the rapidly disappearing American middle-class. As Rep. Tim Ryan (D-OH) said recently:

“We know what happens when the economy depends only on financial services and the creation of wealth through bookkeeping. Manufacturing jobs are good paying jobs that support families and communities, create spin-off jobs, and leads to innovation…We’ve spent the last 30 years pandering to those who have taken manufacturing off shore and in turn we lost the heart and soul of our country. We need to see ‘Made in the USA’ again.”

With signs of a slowing economy and the prospects of a double-dip recession looming, this is not the time for a politician with his finger in the wind gauging public opinion or re-acting to the misinformation and disinformation being put out by his opponents. This calls for someone to lead, educate to populace, and shape public opinion, not react to it.

Social Security Cuts Straight Ahead

04 Sunday Jul 2010

Posted by Craig in budget, Congress, economy, Obama, Obama administration, Politics, Wall Street

≈ 1 Comment

Tags

cut benefits, Debt Commission, Erskine bowles, JPMorgan Chase, lifting earnings cap, Morgan Stanley, privatizing, Social Security, Speaker Pelosi, trust fund, Wall Street

Reading the road signs along the highway that leads to cutting or privatizing Social Security:

In December Blue Dog Jim Cooper, said a report which showed “that the governments unfunded liabilities are roughly $56 trillion” was “shocking.”  He called for a commission to address it.”

In January the White House signed on:

“[President] Obama said that he has made clear to his advisers that some of the difficult choices–particularly in regards to entitlement programs like Social Security and Medicare – should be made on his watch. “We’ve kicked this can down the road and now we are at the end of the road,” he said.”

In February, Jane Hamsher at Firedog lake reported that:

“…people who have been briefed on the administration’s plans indicate that things like raising the retirement age and cutting benefits are under consideration.”

The president then packed the Debt Commission “with members who have an overwhelming history of support for both benefit cuts and privatization of Social Security.”

Among those are the chairman of the commission, Erskine Bowles, who sits on the board at Morgan Stanley, and whose wife sits on the board at JPMorgan Chase. Can you say conflict of interest? Seems to me both those firms stand to benefit handsomely if Wall Street gets its grubby fingers in the Social Security trust fund.

The rules are that the commission recommendation must be approves by 14 of the 18 members:

“There are certainly enough votes on the right to block any significant tax increase proposals. There certainly aren’t enough votes anywhere to propose deep spending cuts in the bloated military budget. The only real question is whether there are five votes — enough to block passage — against cutting social programs, particularly Social Security.”

And in what’s becoming a pattern in this administration, much of the commission’s work is behind closed doors. Openness and transparency, anyone?

Then last Thursday Speaker Pelosi, under the cover of funding for Afghanistan, sneaked in language calling for an up or down vote on the commission’s recommendation, by a lame duck Congress in December.

Now comes this from Crooks and Liars:

“It’s a cynical political strategy almost beyond belief, but it’s becoming obvious that President Obama and the Democratic leaders plan to let the Republicans do what they’ve tried to do since the days of FDR: Cut Social Security.

[…]

When I wrote about this last week, some readers insisted it would “never” happen, and questioned whether there was any logical reason Obama would support benefit cuts. So I talked to a couple of D.C. Social Security activists this week and posed that very question. I was told that Obama’s reelection strategy was based on allowing Social Security cuts to win over independent voters. (Apparently it polls well with the Tea Party crowd.)”

[…]

Now, seriously. How can any intelligent person convince themselves that the Obama administration isn’t backing this? The commission is stacked with deficit hawks; the national deficit is on track to be more fiscally sound if they let the Bush tax cuts expire; and Social Security, which is a tax-transfer program, doesn’t have a damned thing to do with the deficit.”

One solution I don’t see from the Debt Commission—lifting the Social Security earnings cap. According to John Irons of the Economic Policy Institute, “eliminating the cap on taxable earnings would be sufficient to fully close the projected shortfall.”

And it would only affect about 6% of the population. But then again, those are the 6% who sit on these useless (for everyone but the elites) bi-partisan commissions and who write large checks to those in Congress who vote on their recommendations.

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