REDUCING THE DEFICIT By Bill McCabe published in The Hudson Valley News 8/3/2011
During the past two months, as the federal government has come closer and closer to defaulting on its debt obligations, Republicans in Congress have adamantly opposed an increase in the debt limit unless reductions are made in social programs, most specifically the Social Security, Medicare, and Medicaid programs. These same Republicans in Congress have refused to consider an end to what were supposed to be temporary Bush-era tax cuts for the very wealthy.
President Obama has gone far, perhaps too far, in trying to accommodate those Republicans in Congress. Then when agreement has seemed close, the Republicans have backed away to please the Tea Party and GOP political operative/lobbyist Grover Norquist. This is the same Grover Norquist who convinced 233 Republicans in the House and Senate to sign a pledge not to agree to any increase in taxation, even before deliberation on issues at hand. Those Republicans in Congress want to reduce the deficit on the backs of the poor, the vulnerable, and the middle class while enabling the top 2% of wage earners, the multi-millionaires and billionaires, to make and keep more of their millions and billions. This is not right.
Forty years ago the top 10% of earners controlled 30% of the country’s wealth; today they control more than 50%, and the top 1% now earns 23% of the country’s income. Democrats who want to end the “temporary” windfall for the super-rich are accused of wanting to redistribute wealth when, in fact, the Bush-era tax breaks for the super-rich have led the United States for the first time to a point where the greatest percentage of our national wealth is held by the fewest number of people. Tax cuts for billionaires, who don’t need them, have redistributed more and more wealth to the already exorbitantly wealthy.
Republicans in Congress refer to those millionaires and billionaires as “job creators.” These millionaires and billionaires are not creating jobs, are not investing in America, and are not rebuilding the country’s infrastructure. Instead they hoard their capital, shrink jobs in the US, and send jobs overseas. Republicans in Congress are doing all that they can to protect the wealth of the wealthiest and the industries they control. That is not right.
When George W. Bush took office in 2001, he took over the management of a federal budget with a healthy surplus in the US Treasury. When he left office in 2009, he left the Treasury with trillions of dollars of debt, an economy in shambles, and a banking system near collapse.
The deficit that our country has to deal with now was caused primarily by the unfunded, costly, ill- advised war in Iraq. According to the Congressional Research Service, the war in Iraq has cost US taxpayers over $800 billion so far. During the Bush Administration, most of the military and contractual costs of the Iraq war were not budgeted; instead, those costs began the multi-trillion dollar deficit we now face.
Another major contributing cause of the current deficit was the lifting of regulations on Wall Street investment banks. Bank deregulation started in the 1990’s and continued through the Bush years, culminating in the investment banking scandals of 2008 that required federal bailouts to avoid an
international collapse of the whole banking industry. The effects of the greed and general bad behavior of the Wall Street banks continue to act as a drag on our economic recovery from the near-Depression of 2008.
CNN reports that only the Unite States and Denmark have specific debt limits, and that Denmark’s is set so high that it has never been reached. All other countries recognize the fact that when a legislative body votes to pass a budget in which anticipated spending is greater than tax revenue, that vote is an approval of a deficit – similar to a mortgage. Our US Congress, including some of those Congressional Republicans causing all the present mischief in Washington, approved our current budget – including the necessity to borrow. Now, in the middle of a budget cycle, is not the time to put the good faith of the US Treasury in jeopardy by reneging on payment of our bills.
Over the past 50 years the Congress has routinely increased the national debt over 60 times, with bi- partisan support and little controversy. This year congressional Republicans, including Congresswoman Hayworth and Congressman Gibson, have pushed the agenda of the Tea Party to cut or eliminate Medicare, Social Security, Medicaid, and national health insurance reform in order to pay the unpaid bills for the wars in Iraq and Afghanistan while assuring that the very few really wealthy will keep their hoards.
The level of our national debt (our mortgage) is a serious concern. It can be reduced by eliminating inefficiencies in government spending, by lifting the income cap on the Social Security tax, and by putting a swift end to the oil industry’s tax exemptions and the “temporary” Bush era income tax reductions for millionaires and billionaires.
Senator Kirsten Gillibrand is correct when she writes that the Congressional Republicans “expect students, the elderly and hardworking families to pay more, but refuse to require anything of the wealthy and corporate America.”
Call Republican Congresswoman Hayworth (202-225-5441) and Republican Congressman Gibson (2022255614), and tell them to save Medicare, Social Security, and Medicaid and stop supporting tax breaks for millionaires and billionaires.