Despite the clear evidence that austerity budgets will hurt the stagnating economy, that tax cuts and focusing on the debt and deficit do not create jobs, President Barack Obama will present a $300 billion program that will propose more of the same. The Democrats on the bipartisan Congressional Super Committee that was created to solve the problem of the deficit, taxes and job stimulus, has taken a lead from Obama, more cuts, please:
The key dilemma facing President Obama and Congressional Democrats is that Republicans are wholly unwilling to support any new job-creating spending projects — even projects with bipartisan support — unless they’re offset with spending cuts or savings elsewhere in the budget.
Thus, Democrats on the new joint deficit Super Committee will seek more than the $1.5 trillion in deficit reduction they’ve been tasked with finding, in order to help offset some of those costs.
Guess where those cuts will come from? Social Security (which does NOT contribute to the deficit), Medicare and Medicaid with President Obama leading the way:
In the speech Thursday, Obama will challenge the 12-member congressional supercommittee to exceed its $1.5 trillion goal for budget savings – setting a higher target that would allow the additional money to fund tax breaks and other stimulus spending. But the “very specific” deficit recommendations that Obama promised last month won’t come until after the speech, although the exact timing is unclear, White House officials said.
The deficit plan will be more specific than the framework the White House released in April. It is likely to include some unpopular measures that, until now, Obama backed only behind closed doors during the July talks with House Speaker John Boehner (R-Ohio), according to Democratic officials familiar with proposal.
Before the “grand bargain” fell apart over tax revenues, Obama and Boehner agreed on about $250 billion in proposed cuts to Medicare, including gradually raising the eligibility age to 67 and hiking co-pays and premiums for wealthier beneficiaries. They also agreed to change the inflation calculator for Social Security and other federal programs . . . .
Most polls indicate Americans believe the country is on the wrong track and that the president is doing a poor job handling the economy and yet all that is being put forward are the same ideas that put this country into this hole. Contrary to what Obama seems to think, his plan will not attract moderate and independent voters he so desperately needs in next year’s elections.