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Austerity USA Begins March 1st: Bipartisan Project to Impoverish the American People
Thu, February 28, 2013 6:06:19 AM
Shamus Cooke: Austerity USA Begins March 1st: Bipartisan Project to Impoverish the American People
From: Global Research E-Newsletter <>

Austerity USA Begins March 1st: Bipartisan Project to Impoverish the American People
By Shamus Cooke
Global Research, February 25, 2013
Url of this article:

U.S. politicians have cried wolf over austerity long enough for the public to ignore them. A perfect time, then, for politicians to actually unleash the wolves. Barring an unlikely last minute deal, here's a short list of some of the massive, national bi-partisan-created austerity cuts, according to the New York Times:

-600,000 food stamp recipients will be cut from the program

-Massive education cuts. According to President Obama:

"Once these cuts take effect thousands of teachers and educators will be laid off and tens of thousands of parents will have to scramble to find child care for their kids. "

-12 billion in Medicare cuts (more to come after 2013)

-Millions receiving unemployment will see their checks cut by 11% (an average of 132 a month)

-Federal funds to state governments will be cut, creating even more deficits for states and municipalities, and thus more localized cuts (the states have already made austerity cuts of $337 billion!)

Also, 700,000 jobs are expected to be loss, while 70,000 kids are also expected to be kicked off of Head Start

And this is just for 2013. The current plan for the austerity "sequester" cuts is $100 billion of federal cuts every year for ten years, equaling massive cuts to jobs, Medicare, education, and completely destroying federally funded social programs.

Will it actually happen this time? The New York Times reports:

"In private, Capitol Hill staff members and members of Congress have admitted that there are no viable plans on the horizon to delay or offset the cuts."

The finger pointing in Washington, D.C. has already reached a crescendo, with the perverted logic being that, if both parties are to blame, it's really no one's fault. In reality Democrats and Republicans created these "sequester" cuts, and they can just as easily undo them with a snap of the finger.Both parties are choosing not to delete the cuts. They just don't want political responsibility for the fallout, which many economists have predicted will push the U.S. economy over the edge into official recession.

Obama has predictably blamed the Republicans for this mess, even though he personally began this process by creating the "deficit reduction commission" that helped shape the cuts (keep in mind there is zero debt crisis that calls for such drastic measures).

Obama could also just as easily appeal to the American public over the heads of congressmen to demand that the cuts be shelved forever. Instead, he's proposing a "grand bargain" deal that he knows the Republicans won't go for.

What's in Obama's grand bargain deal? According to the White House website:

-$130 billion in "savings" [cuts] to Social Security, by implementing a "superlative CPI."

-$35 billion in "savings" [cuts] to the retirement of federal employees.

- $400 billion in health care "savings" [cuts], much of it Medicare cuts.

Obama cynically fails to mention the words Social Security or Medicare in the above plan, choosing instead to write in code ("superlative Consumer Price Index"). Obama's plan to avoid the March 1st cuts still assumes that $500 billion in cuts will be implemented over the next ten years, as opposed to $1trillion.

But his plan is just a distraction. Obama knows his plan has no chance of being passed by March 1st. He's falsely portraying his plan as the only alternative to the March 1st cuts, even though a far better idea the one preferred by a vast majority of Americans is to simply to shelve the sequester cuts forever. To not put forth this option makes Obama complicit in the cuts.

Many pundits have speculated that Congress will allow the cuts to go into effect for three weeks, since March 27th marks a fiscal deadline that will pressure Congress to maneuver anew. This might trigger a new round of haggling over a new "grand bargain" that again targets "entitlement programs" and re-packages the massive cuts into a prettier box. The party that does the most effective finger pointing after the March 1st cuts will be in the best position to dictate matters post-March 27th, so say the pundits.

Whatever the actual result, the Democrats and Republicans share similar enough visions that massive cuts to cherished social programs appear to be inevitable. Much of the made-for-TV bickering is pure political posturing, meant to fool the working people most affected by these cuts into believing it's "the other party" that's responsible.

Politicians have been able to get away with this disgusting behavior because there are very few independent voices telling the truth about what's happening. Many labor and progressive groups are consciously lying about the dynamic, placing blame squarely on the Republicans, thus allowing the Democrats not to be held accountable for their pandering to the corporate elite's demand to use austerity to attack the social safety net. In reality both parties are jointly attacking working and poor people via austerity, on a city, state, and national level.

If Labor and community groups united in a demand of No Cuts, Tax the Rich' and organized massive mobilizations, there would be a very different public debate happening right now. It's not too late for these groups to tear themselves from the jaws of their attackers.

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action ( He can be reached at

Sequestration Cuts Crisis Makes Me Want to Strangle Both Sides

POSTED: February 26, 2:45 PM ET

If you can get past how horrifying it is, the looming "sequestration cuts" crisis is fascinating. It's like watching a bunch of gambling addicts play craps by throwing dice into a four-dimensional wormhole. There are so many variables that neither side can possibly know the true outcome of a failure to make a deal which means the only certainty is that what we're watching is irresponsibility on an epic scale, wherein both of our major political parties seem to prefer government by random outcome over one managed by sensible compromise.

On Daily Beast: The Way Out of the Sequester

Obviously, most of the problem was originally driven by the intractability of a Republican Party energized politically by its Tea Party base, which preferred the nuclear option of a default or a government shutdown to increased debt and/or new taxes. These fine folks taped sticks of dynamite to their chests and threatened to blow the government, its credit rating and our entire budget mechanism to the moon if we didn't make massive spending cuts a wild ploy that may not have made a ton of patriotic sense given the catastrophic possibilities of, say, a default, but certainly helped the party solidify its relationship with its base.

Watching the original Republican debt-ceiling warriors furiously shake their fists over this business reminded me of that great line by Claude Rains in Casablanca, when his Captain Renault character tells Humphrey Bogart why he had to be so rough in tossing Rick's nightclub in search of the missing letters of transit. "I told my men to be especially destructive," Rains said. "You know how that impresses Germans."

Gangster Bankers: Too Big to Jail

This "let's blow up the American credit rating" ploy impressed hardcore anti-spending types in the same way. It was crazy, but maybe only slightly more crazy than both of the parties have consistently been for most of the last 20 years, when the two sides have continually failed to hammer out workable budgets and instead have mostly just let the national airplane fly mindlessly forward using the laziness-enabling autopilot mechanism of a continuing resolutions, or CRs. Despite the fact that working out budgets is mostly what we hire members of Congress to do, they seem to have a terrible time doing it on time, and instead routinely rely upon the CR process (in which the two sides basically agree to put things off until later) to keep funding levels static for some ludicrously short-term period like six months.

The failure to work out sensible budgets makes it impossible for government agencies to make long-term plans, and instead leaves them scrambling to spend money in the short term. It's an incredibly stupid way of doing business and if these people weren't on television so often, ranting and raving like baseball managers arguing a safe call at the plate and playing to the home crowd by pointing fingers at the other side, they would probably just do what members of Congress traditionally did in the pre-mass-media age, which is quietly and (mostly) sensibly work things out, getting as much as they could for their own constituents without crossing the line into antipatriotic acts of self-destruction like a national default, for instance.

But since those days of sensible bipartisanship are gone, what we're left with is this. Both sides decided to play political chicken with our economic futures. Certainly the Republicans were more willing to pull the pin here, but the Democrats also gambled.

In agreeing to this crazy deal a year and a half ago a deal they were, admittedly, forced into the Dems banked on the notion that the Republicans would never countenance deep cuts to the Pentagon and in that way leave themselves exposed politically to accusations of making the country less safe.

But the Republicans humorously if you can still find humor in this have not yet blinked here, which is why the Obama administration is shamelessly rolling Homeland Security Secretary Janet Napolitano out this week to make sure Americans everywhere know that terrorists will be crawling through their children's bedroom windows as early as next week if the Republicans don't back down on this budget thing. ("I don't think we can maintain the same level of security . . . with sequester," she said, adding that the impact will grow over time, like "a rolling ball.")

In a comically blunt use of reverse race-baiting politics, Napolitano added that she would have to furlough 5,000 border patrol agents if the sequester cuts took place, essentially threatening Republican voters with an influx of immigrants from Mexico if a deal isn't reached.

We hated it when George Bush threatened us with the specter of terrorist attacks to get what he wanted politically, so we ought to be hating this, too, although fortunately it hasn't gotten quite to Bush levels yet I'm assuming we're still weeks away from Obama himself going out to the Rose Garden to tell reporters that unmanned terror drones will be spraying poison over New York City if the Republicans don't give him his budget deal.

The Republicans, meanwhile, are banking on the notion that $85 billion in annual cuts isn't all that much (and considering that the Fed doled out more than that to Citigroup alone in just one month of 2009, their argument makes some sense) and the country will barely notice the damage if we have to go over this particular waterfall. The political capital they may lose with the Pentagon in (potentially) letting this happen is an interesting side issue, but one most Americans probably aren't losing much sleep over.

The whole situation reminds one of a family so dysfunctional that its members can't communicate except through desperate acts. Mom keeps getting found passed out next to empty bottles of aspirin or mouthwash, Dad keeps getting pulled over for DUIs with hookers in the passenger seat, sis listens to death metal and is saving up for a bus ticket to meet some 40-year-old in Montana she met on the Internet but you'd never know it on most days because nobody in this family talks.

This is kind of the same thing we're seeing in D.C. Both parties understood that the debt situation had to be addressed. But neither side could think of a way to work with the other party to get that done in a way that didn't outrage its base. So what we ended up with is an insane gamble: The two sides created a system of automatic cuts that may or may not happen, and both parties are now banking on their ability to manipulate the media to blame the other side for any fallout that may occur if those cuts take place.

In other words, instead of getting together and creating an actual budget that both sides would have to sign off on and own, they created a budget-cutting mechanism that each side will try to pass off as the creation of the other.

Polls show that most Americans will overwhelmingly blame the Republicans if a deal is not reached, which probably makes sense, since the Republicans were the ones who first drew the line in the sand. But the Republicans are acting like they don't care about these polls, which is also interesting.

They may be gambling that cuts will take place and they will be proved right by the lack of a catastrophic consequence, which will lead to them later on being celebrated for showing such backbone. They may be gambling that they can convince Americans that it was actually the Democrats who refused to compromise and enter real dialogue.

Whatever it is, the whole thing sucks. It's like being permanently stuck in the NFL lockout story. Do we really have to do this every three months for the rest of eternity?

Read more:
"Let me issue and control a nation's money and I care not who writes the laws. - Mayer Rothschild
"Civil disobedience is not our problem. Our problem is civil obedience! People are obedient in the face of poverty, starvation, stupidity, war, and cruelty. Our problem is that grand thieves are running the country. That's our problem!" - Howard Zinn
"If there is no struggle there is no progress. Power concedes nothing without a demand. It never did and never will" - Frederick Douglass

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