Reich writes: "The Republicans' austerity economics and trickle-down economics are dangerous, bald-faced lies."
Portrait, Robert Reich, 08/16/09. (photo: Perian Flaherty)
Why Obama Must Meet the Republican Lies Directly
26 February 13
he White House apparently believes the best way to strengthen its hand in the upcoming "sequester" showdown with Republicans is to tell Americans how awful the spending cuts will be, and blame Republicans for them.
It won't work. These tactical messages are getting in the way of the larger truth, which the President must hammer home: The Republicans' austerity economics and trickle-down economics are dangerous, bald-faced lies.
Yes, the pending spending cuts will hurt. But even if some Americans begin to feel the pain when the cuts go into effect Friday, most won't feel it for weeks or months, if ever.
Half are cuts in the military, which will have a huge impact on jobs (the military is America's only major jobs program), but the cuts will be felt mainly in states with large numbers of military contractors, and then only as those contractors shed employees.
The other half are cuts in domestic discretionary spending, which will largely affect lower-income Americans. There will be sharp reductions in federal aid to poor schools, nutrition assistance, housing assistance, and the like. But here again, most Americans won't see these cuts or feel them.
Moreover, the blame game can be played both ways, and Republicans are adept at slinging mud. When it comes to high-visibility consequences of the spending cuts - such as a sudden dearth of air-traffic controllers - Republicans will dodge blame by happily giving Obama authority to shift spending and find the cuts himself, thereby making the White House appear even more culpable.
Besides, there's no end to this. After Friday's sequester comes the showdown over continuing funding of the government beyond March 27. Then another fight over the debt ceiling.
The White House must directly rebut the two big lies that fuel the Republican assault - and that have fueled it since the showdown over the debt ceiling in the summer of 2011.
The first big lie is austerity economics - the claim that the budget deficit is the nation's biggest economic problem now, responsible for the anemic recovery.
Wrong. The problem is too few jobs, lousy wages, and slow growth. Cutting the budget deficit anytime soon makes the problem worse because it reduces overall demand. As a result, the economy will slow or fall into recession - which enlarges the deficit in proportion. You want proof? Look at what austerity economics has done to Europe.
The second big lie is trickle-down economics - the claim that we get more jobs and growth if corporations and the rich have more money because they're the job creators, and job growth would be hurt if their taxes were hiked.
Wrong. The real job creators are the broad middle class and everyone who aspires to join it. Their purchases keep economy going.
As inequality continues to widen, and income and wealth become ever more concentrated at the top, the rest don't have the purchasing power they need to boost the economy. That's the underlying reason why the recovery continues to be so anemic.
These two lies - austerity economics and trickle-down economics - are being told over and over by Republicans and their mouthpieces on Fox News, yell radio, and the editorial pages of the Wall Street Journal. They are wrong and there are dangerous.
Yet unless they are rebutted clearly and forcefully, the nation will continue to careen from crisis to crisis, showdown to showdown.
And we will have almost no chance of reversing the larger challenge of widening inequality.
President Obama has the bully pulpit. Americans trust him more than they do congressional Republicans. But he is letting micro-tactics get in the way of the larger truth. And he's blurring his message with other messages - about gun control, immigration, and the environment. All are important, to be sure. But none has half a chance unless Americans understand how they're being duped on the really big story.
Robert B. Reich, Chancellor's Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration. Time Magazine named him one of the ten most effective cabinet secretaries of the last century. He has written thirteen books, including the best sellers "Aftershock" and "The Work of Nations." His latest is an e-book, "Beyond Outrage." He is also a founding editor of the American Prospect magazine and chairman of Common Cause.
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Comments
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Hmmm... Obama raised taxes on all of us by MUCH more than this 85 billion and I did not here him saying the end of the world was near!
Oh Bobby Reich I question who is really lying! I am calling you on this one!
Quoting Reductio Ad Absurdum:
es! OBAMA TAX!
Every high income earner pays more if they sell stocks or their house or die.
Since you probably don't work since YOU did not notice this increase, I guess all is right in your world!
Here is a thought, watch News that is NOT in your normal thinking.
I watch left leaning news to hear what the other side thinks. If you only listen to one side you will have a very slanted view on the World...expand your mind...a stay off of the drugs.
And by the way, your arrogant assumptions aside. I DO work; I'm self-employed, so I pay my own way on everything.
The Bush tax cuts were also predetermined to expire - as agreed upon when they were passed, but the Republicans wouldn't let them expire — even though they exploded the budget deficit and Bush's two unfunded wars and an unfunded Medicare D giveaway to Big Pharma ballooned the debt.
PART!!!
They DO NOT SET THE BUDGET!!!
The House offers a bill, the Senate can pass or not or make amendments to the bill and send it back to the House.
IF BOTH Houses pass the bill the President can sign it and it becomes law, or he can veto it and then then it goes back to Congress to either over ride the veto or it does not become law!
CIVICS 101
Actually under Obama we have NEVER had a budget, EXCEPT the last 9 months of the Bush budget!
Pelosi ignored that part of the Constitution as did Reid and Obama!
Obam offered two budgets after the GOP took over the House and both went down with almost ZERO votes, even from the Dems.
Look it up, the internet is free!
By your very limited knowledge then NOBODY can spend money...COOL!
The President MUST either SIGN the budget INTO LAW;
OR
VETO the budget and then it goes back to Congress to over ride the veto and then it becomes law OR they do not over ride the veto and they try to fix it;
OR
The President does NOTHING AND Congress goes out of session then it becomes law in 10 days.
OH, and yes the President does spend tons of money all on his own so don't try to deceive people!
In that case you have forgotten too much and you need to go back and learn some more!
2. Top marginal tax rate
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000
4. Phase down of itemized deductions for AGI over $300,000
5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000
6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.
7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.
Obamacare tax increases that took effect:
8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000
9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000
10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales.
11. Reducing the income tax deduction for individuals’ medical expenses.
12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy.
13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives.
Most of the items you mentioned aren't examples of "raising taxes," especially not income taxes, which the phrase typically implies; they're examples of reducing tax loopholes (suggested by Romney) and they certainly DO NOT SUPPORT your original claim that " Obama raised taxes on all of us by MUCH more than this 85 billion" by any means. Nice try. No cigar.
YOU obviously missed civics or are trying to deceive!
"All bills for raising revenue shall originate in the House of Representatives"
They get passed just like every other Bill!
Correct me if I'm wrong--but isn't the House of Representatives a part of Congress?
"The Evil Leading the Stupid" ... end of story.
Politically speaking, we have given away the farm and it STILL isn't enough. When I hear Obama and Repubs speak of "competing in the Global Market" I want to scream, because what they are REALLY saying is "Screw the small businesses that employ 70% of the workforce" and "Screw American Workers by making them compete with foreign workers making 1/10th the wages". We are gonna help the Multi-Nationals..
It's been going bad for 10 years and it is not going to change. Making things is hard work, it takes a lot of investment, infrastructure & tooling and worst of all.... employees. Finance is where it's at. Selling DEBT and selling hot air has less overhead and way higher profit margins. Gambling is WAY more profitable when the game is governmentally rigged to privatize profits and lay off losses on the public, which IS the nation we live in now.
We need to wake up. We ARE the largest market in the world. We do not need "Globalization" to survive. The fact is..it's killing us.
In a recession the government is the employer of last resort. Repairing roads, bridges, etc., should be addressed while money is cheap and workers need employment. Cutbacks can kick in when the U.S. has traditional unemployment levels and the economy is robust.
GOOD CALL ! Yes indeed ! That is the crux problem with most of these articles (my apologies to Mr. Reich), and, accordingly with most of the comments, is the *invalid* assumption that these politicians, including Obama, have at the core, ANY interest or intention to actually GOVERN !
Their job seems to be "Political Crowd Control". Give them whatever it takes to prevent all-out riot and/or revolution, but not a DIME more. Soon they will be too broke and concerned with finding food to mount much of a resistance anyway.
So, Obama delivers these soaring and inspiring speeches about the future of America even AS he fights in court to protect his NDAA. He promises to "take care of the little man" and the poor, even AS he breaks his neck in his haste to throw "entitlements" on the chopping block with more cuts than the Republicans asked for. Even AS he hob-nobs with Wall Street and the Oil Industry.
And, as poppajohn so astutely observes, metamorphosing into Bush Lite is NOT "Hope, Change, Transparency" etc.etc.
Obama is Political GOLD because he keeps the Left QUIET.
Sorry about what that says for us on the LEFT !
Two points.
1. RSN is not the entire United States.
2. How can you have possibly missed that fact that any comment that does not drip with adulation and adoration for Obama is drowned in red ink ?
No matter how accurate, no matter how well informed, if it does not reflect favorably upon their "Idol" it is thumbed down. These are the same people who were justifiably happy to scream to high Hell about Bush. But when Obama does the same things and worse - "Crickets" from much of the Left.
*Spoiler Alert* people. Obama is a politician. Obama is a human being. Obama does NOT walk on WATER !
And yet it has ever been the case that the "faithful" want to kill the voices who are willing to point out the fact that the "Emperor has no clothes".
There's a lot to love about Obama, people, but he is NOT a Savior, he's just another politician at the end of the day.
Sorry to burst so many balloons.
Whichever it is, somebody in the Democratic party has to get up and tell the truth. We may have efficiency issues that wastes money, and we may have other issues of archaic and redundant processes, but it will cost money to fix them.
The facts are out there that prove in order to effectively save and modernize you must spend first.
I doubt that its direction can be changed. But thanks for continuing to speak out about it.
But if he doesn't--his 'legacy' will look a lot like Herbert Hoover--with lots of wars & drones thrown in.
Hopefully, none of those wars goes nuclear.
Why Obama the Wimp Must Meet the Republican Lies Directly.
We can hope but so far?? I’m no fan of Sarah’s but this comment is just so appropriate. So how is that Hopei, Changie working out for you now?
The big lie is that Barry Obama is a progressive.
He does have a dark complexion which makes white progressive political donors prone to racial profiling-- assume he is progressive.
Goldman Sachs, JP Morgan Chase, et al got what they paid for--the Jack Lew sequester coup...
"Change you can believe in." Yeah....sure.
Obama hides behind this fantasy of "bipartisanship " as political cover for doing almost nothing of consequence to change the present point of Political Stasis.
This is political theatre. Posturing. Distraction and misdirection of the masses to keep them from focusing on the REAL ripoff of America being conducted by Wall Street and the International Corporations in the shadows just off stage.
And "compromise" has nothing to DO with walking into a "negotiation" and opening the bid by giving away more of the people's farm than the opposition was hoping to achieve during the FINAL offer !
Unlike W, Obama can't even pretend that he's too stupid to "get it". WE know that HE knows better. So what explanation does THAT leave ? Yeah.
How many years did Obama deliver soaring rhetoric about how Wall Street needed to brought "into check", and then walk away from the Stage arm-in-arm with Geithner ?
That's just poor stagecraft.
You are correct. Austerity does NOT work for the general population OR for the National Economies, but it works like GANGBUSTERS for the banking industries ........... you were asking "why don't they ignore austerity programs in Europe?"
Professional jealousy, sir, professional jealousy !
A continuation of the plan to rob the underclasses totally dry.
Let's see the public try to revolt when they are weak from hunger and can't afford the gas to get to the protest.
If he isn't sincere about protecting the entitlements, and is just giving us lip-service to give us those warm and fuzzy (good) feelings as he has done in the past, then nothing we say or do will make any difference, will it?
Consider, though, the possibility that Obama's failure to challenge the validity of Wall Street's austerity schemes suggests he agrees with them.
The President's promotion of Goldman Sachs' Jack Lew--the inventor of 'government on Wall Street auto-pilot' aka the 'sequester' reinforces the point.
Fool me once shame on you...
I think we are in fool me twice territory on this one.
Boehner seems to be the only one that has internalized this but is unable to do anything about it.
That's absurd, he has less than 4 years, there is no point in pretending any long game can go past his second term, and at his rate of action that time will be wasted for all of us, the country and the world.
I think it is more likely Obama is playing a stalling game, the corporatocracy government will fritter and putz about until anyone with any political consciousness is long dead and gone at which point they can just become like the Chinese government, and then we'll have peace on Earth, and we can all practice Chinese and living like rats and working our lives away and being tossed out like garbage in the streets when we no longer have any usefulness to the ownership class.
So, without any other real choice, WE are left to choose between what is often labeled as the lesser of two evils. Obama won the 'lesser of two evils' vote.
I'm more happy about that than not. However, he is who he is, not who we dream of him to be, even as he surely must know by now what the DREAM of the MAJORITY is, and, that we hope and even pray to see our dream of 'Obama The Leader' appear before his limited number of effective days as President tick by.
But so far, what we saw during his first term is mostly what we are still getting from him. The Mediator-Orator Obama seems to reign over any kind of Bold-Leader-Ris k-Taking Obama who would trust the leadership-crav ing American People to back him up when it comes to 'LEADING' in Corpo-Twilight- Zone Washington, a place which might as well set up shop on Mars considering its lack of connection to National Reality or any cerebral-emotio nal connection to what 'The Greater Good' actually means.
If Obama operated in a vacuum he might meet your pie in the sky expectations, but he has to try to get something instead of nothing and he has to work with the most treasonous anti-American stumblebum obstructionists in our history.
I think not.
Perhaps in actual dollars, but at a lower rate. And every millionaire probably pays lower taxes percentage wise than you do.
Rombney paid 14%, I paid 34%. He made 200 times as much money as I did. So, yes he paid more dollars, but nowhere what he should have. The top marginal rate needs to go back over 70% and stay there forever. And capital gains needs to carry the highest rate, not the lowest. An exception could be made for those investing in startup companies so that investment capital remains available, but when the investment is paid off the rates should revert to 70%+
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