You will notice Agent Change is going to freeze discretionary spending, but not the budget for warmaking. Discretionary spending is chump change. The real money is in the Pentagon budget. But of course, this is untouchable.
Is the president panicking?
His spending freeze invokes memories of
By Robert Reich
Jan. 26, 2010 |
President Obama today offered a set of proposals for helping
The bigger news is Obama is planning a three-year budget freeze on a big chunk of discretionary spending. Wall Street is delighted. But it means
A spending freeze will make it even harder to get jobs back because government is the last spender around. Consumers have pulled back, investors won’t do much until they know consumers are out there, and exports are minuscule.
In December 1994, Bill Clinton proposed a so-called middle-class bill of rights including more tax credits for families with children, expanded retirement accounts, and tax-deductible college tuition.
Two months later,
But in 1994,
Today, though, there’s no sign on the horizon of a vigorous recovery. Jobs may be coming back a bit in the next months but the country has lost so many (not to mention all those who have entered the workforce over the last two years and still can’t land a job) that it will be many years before the middle class can relax. Furthermore, this recession isn’t like other recessions in recent memory. It has more to do with problems deep in the structure of the American economy than with the ups and downs of the business cycle.
Yet instead of moving in this direction, Obama is moving in the opposite one. His three-year freeze on a large portion of discretionary spending will make it impossible for him to do much of anything for the middle class that’s important. Chalk up another win for Wall Street, another loss for
-- By Robert Reich
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"The master class has always declared the wars; the subject class has always fought the battles. The master class has had all to gain and nothing to lose, while the subject class has had nothing to gain and everything to lose--especially their lives." Eugene Victor Debs