Let’s Get Serious

by Keith Cooper

From Broader View Weekly, November 25, 2010

When one looks at the current national debt and deficit dilemma it is undeniable that the assertion of President Obama’s appointed panel that a real solution must include both spending reduction and increased revenue rings true. Regardless of one’s political affiliation one must accept the fact that only a combination of tax increases and spending cuts will prevent leaving the tragic legacy of our irresponsibility to our grandchildren and great-grandchildren. So, when a bipartisan commission makes a public statement that nothing is off the table it sounds hopeful that there is serious commitment to this end.

Unfortunately, a quick review of the draft proposal that was released last week reveals that not everything is on the table.

The most glaring omission from the proposal is the much-politicized Bush Tax Cuts for the wealthiest Americans. The $700 billion in revenue that would be generated by allowing the tax cuts for the wealthiest 2 percent is a bold step indeed. Apparently it is one that is an untouchable sacred item. My brother Gordon would argue that the tax cuts were necessary to bring jobs and speed economic recovery. Ironically, the cuts created zero net jobs during Bush’s terms of office, which saw unemployment nearly double during their span.

Apparently corporate welfare is the only acceptable form of government assistance to both parties in Washington. The commission lists, as one of its goals, the reform of the tax code to make “America the best place to start and run a business and create jobs”. However, one of the proposals under the tax code section is the elimination of a credit for domestic production. Once again, it is plain to see that the commission lacks serious commitment toward its stated goals if it is eliminating incentives to create local jobs. The only local employment we are insuring by offering the proposed breaks to corporations is at the executive level. Meanwhile the working class continues to suffer while the wealthy are once again the beneficiaries of government spending and legislation.

It is heartening to see cuts in defense spending on the table (and to see them receiving a nod of approval by my fellow columnist). In fact, I was happy to see a reduction in overseas bases was the second largest line item in the commission’s proposed cuts. Unfortunately again, many cuts effect those who can least afford them. Cuts designed to “modernize” the health benefits of soldiers and veterans will hurt military personal at the lowest incomes and the veterans who have bravely served their country. A freeze on non-combat military pay will add to the suffering of those low-income families who turned to military service in a time of economic crisis.

And even with a $100 billion reduction in military spending, the U.S. expenditure on defense far outweighs that of other countries. China (the number 2 nation in defense spending) spends only 1/6th of the U.S. expenditure and our defense budget is more than the next 23 nations’ combined budgets.

It is good to see the out-of-control military spending addressed, but reigning in the Pentagon’s budget is far from serious reform. Unless we look at the impact of supplemental military spending on the deficit and upon the foreign lending that allows us to sustain it, the discussion is simply rhetoric. An appeal must be made to tailor foreign policy with a mind toward constraining spending. Neither side of the political aisle denies that the costly wars in Iraq and Afghanistan have contributed to the deficit and to our dependency on foreign aid. Yet few have suggested including these costs in the current debate. Even the president has ignored the cost when recently admitting that our military commitment in Afghanistan will last at least three years longer than expected (at undeniable economic expense, as well as the human toll). A bloated military, beholden to no-bid contractors, with wasteful spending makes us no safer.

Recent efforts to improve national security through the New Strategic Arms Reduction Treaty with Russia were blocked by Senate obstructionism. Despite the Obama administration’s contradictory promise of billions of dollars in investment toward modernizing weapons systems, Republicans still oppose reducing the threat of nuclear weapons. The military-industrial complex continues to hold our nation and its leaders hostage nearly fifty years after President Dwight Eisenhower made reference to it.

I found the commission’s words disingenuous when it mentioned that “Throughout our history, Americans have always been willing to sacrifice to make our nation stronger over the long haul.” Yes, it is true that during points of our history citizens have made great sacrifice to preserve the common good. The “Greatest Generation” is a testament to selflessness and a true spirit of patriotic commitment. However, this spirit is largely dead in modern America. We would rather ignore or dispute the facts of global warming than give up our luxuries or our SUVs. Those at the top of the income pyramid refuse to sacrifice even 3 percent of their millions and billions. The cry of “no compromise” is the loudest in our capitals and in our political discourse.

Still, this commission is applauded for making the “tough” decisions of asking those who can hardly afford it to make further sacrifices. Two of the biggest targets for cuts in this proposal are Social Security and Medicare, which provide vital support to the neediest among us. Is this really the best that 18 experts can come up with? Shouldn’t we get serious about the real issues?