Budget 2010
Obama shows that he means it
©Bryan Zepp Jamieson
http://www.wemagazine.net
3/1/09
Wow.
OK, Obama just answered my main question: is he willing to put his money 
where his mouth is?

I've been looking at his budget proposal over the past few days with a 
sense of wonderment. It's a seminal document, as nation-altering as the 
“tax revolt† of the late 70s was, the one that led to
Reagan and the 
supply side disaster.

The first number was the startling size of the deficit, roughly four 
times the size of any other deficit in the history of the country. (Not 
in constant-value dollars, of course: FDR had two that were bigger 
during World War II). $1.75 trillion dollars. One millionth of that 
would leave me set for life.

It really brings home just how serious the economic meltdown is. 

Democrats are normally the ones who reduce deficits and sometimes even 
balance the budget. Republicans are the ones who spend like drunken 
nymphomaniacs in a sex toy shop. Usually on the military and tax cuts 
for the rich.

Part of the deficit comes from the fact that Obama's budget has one of 
the biggest tax cuts in the history of the country. If you didn't 
already know that, I'm not surprised. The blow dried creatures of the 
corporate media, and the stentorian whiners of the right wing, all of 
whom make far more than a quarter million a year, are busily howling 
about “the biggest tax hike in centuries† that will
“destroy what's left of the economy.† That would be the
fact that Obama proposes to let the 
Bush cuts on incomes over $250,000 lapse, rather than renewing them. 
Those rates would revert to the levels they were at in the mid nineties, 
a time of economic boom. It's expected to add $637 billion in revenue, 
but that's two years' budget down the line. 
The tax rates don't lapse 
until 2011. With any luck at all, the economy might be in slightly 
better shape by then.

However, revenue will drop over all, because the budget includes $900 
billion in tax cuts for those making less than $250,000 a year â€"
the 95% 
of the population that doesn't matter to the camera pigeons of CNN and 
Faux. That tax cut will happen this year, which, combined with the delay 
in the tax hikes, means that the budget for 2010 actually has $900 
billion in tax cuts. Got that? So when the media says the budget has 
huge tax hikes, they are lying to you, sacrificing what little 
journalistic integrity they might have had â€" and your well being
â€" to 
their own interests.

The budget has $663 billion for defense, which is being described as an 
8% hike in spending. In reality, it's a cut, because it includes 
“supplementals,† which, simply stated, is the cost of
the twin 
occupations of Afghanistan and Iraq. That outlay has been off the books 
under the deeply dishonest bookkeeping the Republicans used to hide the 
cost of the wars. In this budget, that would be about $140 billion that 
would have been otherwise invisible aside from faster than expected 
growth in the national debt, already large enough that most people can't 
guess what it is within a trillion dollars. A hundred billion or so can 
be hidden pretty easily in that mess.

There are a couple of other reasons for the size of the deficit. The 
$787 billion bank bailout in the ending days of the Bush administration 
has to be factored inâ€"about half of it remains to be spent this
year. 

And the $820 billion or so in the stimulus package signed last week will 
put a dent in the balance, as about a third of it will be spent this
year.

I'm told, but haven't verified, that the administration is ending the 
deceit of previous administrations, of counting the surplus payments to 
the Social Security fund as part of the balance. This year alone, that 
would be at least $125 billion that the government can't pretend is 
actually there.

So even though the deficit is a very big, very scary number, it's one 
that is pretty much inevitable when you combine trying to jump-start a 
moribund economy with some honest accounting.

The budget itself represents a seachange. In 1980, America was the 
richest and most powerful country on earth, widely respected and liked, 
and if the poverty rate (11.7%) was higher than it should be, it was at 
least a generous notion of what poverty was. Few people were hungry. 

Then the right wing took over, determined to give the national wealth to 
the already rich and intent on breaking the back of labor. The result, 
30 years later, is a nation with a poverty rate above 20%, widely 
mistrusted and despised, and rich only in the way India is rich, with 
the wealth concentrated in a thin scum of wealthy elites atop a heaving 
ocean of people barely getting by. And now teetering on the brink of a 
catastrophic depression. Gee, thanks, Ronnie.

Obama's budget puts money where it is most desperately needed. A 13% 
increase in food aid. A billion more for school lunches. $3.2 billion 
more to help people keep their lights on and their heat going. In the 
“world's richest country,† millions are going without
such necessities.
The Department of Labor, which had basically been the Department of 
Employers under Bush, will spend more for worker safety, and to ensure 
that workers aren't being cheated on their wages, a practice fairly 
widespread these days. I actually had a restaurant manager explain that 
having employees work “off the clock† at closing
resulted in lower 
prices for the customers. Translated: “We cheat the other guy
and pass 
the savings on to you.† Except in the Bush days of the Entitled
Rich, 
even that didn't happen; they just simply pocketed what they stole. So 
it's time the government cracked down on them.

The budget calls for the government to issue college tuition loans 
directly, rather than subsidizing bank loans, a practice that will save 
taxpayers and college students billions. With no overhead, such a loan 
program would have much lower interest rates. Pell Grants would be 
increased, and funding for such things as the successful Head Start 
program would be restored. The stimulus package also includes some $115 
billion to modernize school buildings and other facilities and
equipment.

The budget includes something called a "National Infrastructure Bank" 
for funding "priority infrastructure projects of significant national or 
regional economic benefit." This is in addition to a billion a year 
targeted to building a modern rail system where trains can run at 150 
miles an hour. That may not be as sexy as MagLev or the 300 mile an hour 
wonders in France and China, but it's affordable, and it's what the 
country needs desperately.

I knew the era of the GOP and “America exists to make the rich
happy† 
had come to an end when I saw that the EPA budget had been increased by 
43%.

The really big item, of course, is Health Care. America is a third world 
country when it comes to medical care, because no matter how fancy the 
hospital, it isn't very useful if over half the population can't afford 
to use its services. Obama has budgeted $638 billion over the next ten 
years toward the establishment of a universal health care system. If he 
can keep the insurance companies out of the mix, that would save the 
country trillions. And result in a much happier and healthier 
population, with less than half the numbers of bankruptcies we see now, 
and far fewer preventable early deaths. Costs less, and everyone 
benefits. Only a Republican could oppose that.

Obama has also ordered the FDA to start looking into allowing people to 
buy prescription drugs overseas at a lower cost. The US has been Big 
Pharm's cash cow for a decade now, and it's ruined millions of lives, 
foisting expensive and poorly-tested drugs off on us. It's time that
ended.
The far right, or what's left of it, will fight all this like hell, and 
so will the special interests who have developed a firm belief that they 
have a right to steal with both hands.

Obama is in for one hell of a fight. But he says he's ready for one hell 
of a fight.

If we're smart, we'll fight alongside him, and return the budget to the 
people.


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