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Joseph A. Palermo

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It'll Be an All-Cuts Budget "Deal" (Just Like California)

Posted: 07/26/11 10:26 AM ET

For many years now in California we've witnessed an extremist Republican minority in the legislature hold the state budget hostage through manipulating the "two-thirds rule" that allows a legislative minority to dictate to the majority whether any new revenues can be raised. The debt ceiling gambit that Republicans in the House of Representatives have used to tie the U.S. government in knots in recent months is simply the California GOP's tactic writ large.

Like Governor Jerry Brown and the Democratic leadership in Sacramento, President Barack Obama and the Democratic leadership in Washington will capitulate (after many paralyzing months of hopes for "compromise") and enact an all-cuts budget with no "shared sacrifice" in the form of higher taxes imposed on the rich and corporations.

The debt ceiling "deal" might postpone the next budget confrontation past the 2012 elections, but it will shred social programs that serve working people and are vital to key Democratic constituencies, while tearing apart the broader social contract between the government and its citizens. (At a time when the otherwise gridlocked Congress and administration can pull together and pass with celerity $649 billion for one-year's defense budget the debt ceiling fight is all about priorities in any case.)

The Beltway political commentary on the debt ceiling hostage standoff has also mirrored the California experience. Political pundits in the corporate media never explain why they believe threatening to throw the nation's economy over a cliff is a legitimate political tactic. Instead they rely on the tired old false equivalency and faux balance. Yet we all know that if the situation were reversed and Nancy Pelosi had done the exact same thing to President George W. Bush when she was Speaker of the House, these same political commentators would be putting forth all manner of high-minded Constitutional arguments why holding the debt ceiling hostage was an outrageous and illegitimate act. That's how it works in California; and that's how it apparently works now for the nation. If you ever wanted proof that in the larger media context progressives and right-wing Republicans are not treated equally you need not look anywhere else.

In California, we didn't elect Jerry Brown and Democratic majorities in the Assembly and the Senate in 2010 in order to roll back years of progressive social policies and systematically dismantle vital public sector institutions. But that is what we got. Similarly, we didn't elect Obama in 2008 because he promised to gut social programs that serve the interests of working people. But that is what we're getting.

Like Governor Brown, President Obama has been forced into doing the dirty work for the Republican Right. And like California, low-income women and children, the elderly, college students, public servants, and workers of all kinds are going to bear the brunt of the "shared sacrifice."

President Obama has already moved far in the Republicans' direction when it comes to prioritizing cutting the deficit over job creation. He now seems to pride himself and measure his political success by the level of anger, betrayal, and demoralization experienced by his working-class political base. For him it's not about governing anymore but positioning himself for 2012.

If Obama is reelected in 2012 it won't be because of the merits of his record, but the inadequacies of his Republican opponent. (A nine percent unemployment rate will see to that.) Hearing him talk about chopping "entitlements" is the polar opposite of everything he claimed to stand for in 2008. Long ago he tossed progressives overboard and allowed the interests of his own constituencies to languish in pursuit of some weird fictional concept of "bipartisanship."

And therein lies the tragedy. Obama's presidency over the last two and half years has coincided with the sharpest contraction and rollback of the public sector since the 1980s (especially at the local level where the cuts really hurt). Historically (from the time of the New Deal anyway), broad progressive social change has only been possible when a Democratic president sidelined right-wing Republicans. Franklin Roosevelt didn't address the crisis of the Great Depression by seeking at every turn "compromise" with Republicans and "bipartisanship" (like Obama does). The Republican Right of the era denounced FDR as a traitor to his class and a closet communist. Medicare and Medicaid weren't passed with anything close to a "bipartisan" consensus. Yet Obama has insisted all along that every move he makes must have the imprimatur of a group of chimerical Republican "moderates."

It's fine to hear important and smart commentators like Paul Krugman, Robert Reich, and others call for more Keynesian methods to address the failure of the private sector to produce jobs, but it's too late for that now. The savage cuts at the state and local levels would already make any new federal stimulus (unless of vast New Deal proportions) ineffective. The economic crisis and Obama's lukewarm handling of it gives progressives precious little "hope" and "change" to look forward to going into 2012.

 
 
 

Follow Joseph A. Palermo on Twitter: www.twitter.com/JosephPalermo1

For many years now in California we've witnessed an extremist Republican minority in the legislature hold the state budget hostage through manipulating the "two-thirds rule" that allows a legislative ...
For many years now in California we've witnessed an extremist Republican minority in the legislature hold the state budget hostage through manipulating the "two-thirds rule" that allows a legislative ...
 
 
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HUFFPOST PUNDIT
realpolitic
GOP is full of sound and fury, signifying nothing!
08:05 PM on 07/27/2011
The professor is spot on!  Where Obama may have made his mistake is campaigning on the fact they he would try to change the tone in Washington, DC.  He said he would replace partisan acrimony with civility and that promise is backfiring.  Pundits question Obama about the partisan tone whenever Republicans make ridiculous demands like almost shutting down government over the budget talks. After threatening to shut government down,  Republicans watch gleefully as the  nation is about to lose its highest credit rating. After Obama promised to change the tone he is held to that standard as a sort of false equivalency no matter what the rancor is about, no matter how ridiculous Republican demands may be.  Obama should try to please his base the way conservative politicians do, only not at the expense of a lack of any compromise. Conservatives view Obama's capitulation as a weakness and it may be too late to change that perception now, but Obama must find something worth fighting for.  The fight Obama should pick is not to buckle on his promise to let the Bush tax cuts for the wealthy end.  If Republicans threaten then to let the entire tax cut package end and the Clinton tax rates restored for everyone, then Obama should call their bluff.
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11:59 AM on 07/27/2011
Great article, Professor Palermo!

But you're too kind to President Obama...

http://www.commondreams.org/view/2011/07/24
Obama is NOT "Caving" to Corporate Interests | Common Dreams

"...The sad truth, as shown by Glenn Greenwald, is that Obama had arrived at the White House looking to make cuts in benefits to the elderly. Two weeks before his inauguration, Obama echoed conservative scares about Social Security and Medicare by talking of “red ink as far as the eye can see.” He opened his doors to Social Security/Medicare cutters -- first trying to get Republican Senator Judd Gregg (“a leading voice for reining in entitlement spending,” wrote Politico) into his cabinet, and later appointing entitlement-foe Alan Simpson to co-chair his “Deficit Commission.” Obama’s top economic advisor, Larry Summers, came to the White House publicly telling Time magazine of needed Social Security cuts.

At this late date, informed activists and voters who care about economic justice realize that President Obama is NOT “on our side...”

Nobody can be nominated by the two-party duopoly without support of Big Money.
11:11 PM on 07/26/2011
It's easy to take advantage of this president simply because he does care, to them it's a weakness to be exploited. They are de-evolved humans compared to those with empathy trying for a society as close to fair as possible. Some of these creatures are in my family and the skeletons they hide are shocking in their hypocrisy.
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artleads
Let's have a national retreat.
09:00 PM on 07/26/2011
If there was ever a politician I believed in it was Jerry Brown. So sad to see this article. I had less invested in the president, and his performance is not a reason to rejoice. But we can now expect to be let down by whatever Washington pols do.
09:08 PM on 07/26/2011
Democrat or Republican . . .

When the numbers don't add up, slogans and feel good speeches go out the window.
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HUFFPOST SUPER USER
Aarontastic
"Mr. Cain instead decided to try to provide her wi
08:54 PM on 07/26/2011
This article sums up my feelings exactly. I can't help but to feel pessimistic about the course that things seem to be taking--it's highly unlikely that the President is going to be able to achieve any sort of victory for liberals in yet another lopsided negotiation process.

Obama can't deliver a more balanced and more useful compromise is because he is concentrating more on his re-election campaign than winning this particular battle over the budget. Political expediency, according to his pollsters and advisers, dictates that he must appear willing to take it on the chin at all times in order to satisfy independents, who apparently view this kind of behavior as 'mature' or something.

Political considerations aside, it isn't all Obama's fault, obviously. The GOP is a very coherent party and so even when they are the opposition, they can usually thwart every initiative the Democrats attempt through clever manipulation of the system. In this case, all they have to do is keep saying 'no' to the administration's overtures because they control the House.

Once again, there's going to be a showdown where the GOP holds the economy hostage and attempts to force the President to acquiesce to cuts in social spending, and a hold on the tax rates. Once again, the President will most likely fold because he hasn't got any desire to call the opposition's bluff and make them out to be the irresponsible people that they are.
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HST
Conservatism = selfishness
08:16 PM on 07/26/2011
As a resident of Calif., I have 2 observations:

As a result of the republican gridlock in our state legislature and having repub governors for the last decade, we have know-nothing conservatives deriding our economy as proof that blue state economics don't work.


When the awful governator was in office he thought he could go around the legislature via the initiative process. Arnie claimed the people would support him and we should let them vote on his ideas. The people did and rejected every one of them. Now we have an Dem in the governor's office and the same gridlock, but the repubs refuse to allow the people to vote on Governor Brown's proposals.


It seems to me that repubs only respect the voters opinions when they agree with them, otherwise they could care less what the voters think.
08:26 PM on 07/26/2011
"As a result of the republican gridlock in our state legislatur­e and having repub governors for the last decade"

"Gray" Davis
Arnold Schwarzenegger
"Jerry" Brown, Jr.

Hmmm . . . Governors the last decade.
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Si1ver1ock
So long, and thanks for all the fish...
07:41 PM on 07/26/2011
California needs a state-bank and Mosler Bonds to finance its deficits.

How can we feel sorry for people who won't educate themselves.

Read more here->http://www.huffingtonpost.com/ellen-brown/how-wisconsin-can-turn-au_b_831873.html
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
07:37 PM on 07/26/2011
My state, Washington, likes what CA has experienced so much we've "decided" via citizen initiative to copy their 2/3s rule.  Apparently we expect something entirely different to happen up here.
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HUFFPOST PUNDIT
LaurieAnn
Wake Up! Grow Up! Lighten Up!
05:40 PM on 07/26/2011
"For many years now in California we've witnessed an extremist Republican minority in the legislature hold the state budget hostage through manipulating the "two-thirds rule" that allows a legislative minority to dictate to the majority whether any new revenues can be raised."

Mr.  Palermo, you are 100% correct.
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04:44 PM on 07/26/2011
" Long ago he tossed progressives overboard and allowed the interests of his own constituencies to languish in pursuit of some weird fictional concept of "bipartisanship." "

He has to deal with the tea bag clowns in congress who talk in memes and their sole purpose in life is defeating him in 2012 and there's little Mitch in the senate whose goal is defeating him too. I get pissed at him but I can't see another way unless they shut the government down until after the 12 elections. What did Bohner say last night......................no really what did he say?
05:01 PM on 07/26/2011
Knee jerk Obama defense
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HST
Conservatism = selfishness
08:06 PM on 07/26/2011
Fact free post
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12:16 AM on 07/27/2011
hi joey how's the family ?
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04:28 PM on 07/26/2011
What progressives/liberals have received in return for helping elect Obama is a complete lack of responsiveness. We keep sending signals but receive no acknowledgement. What we are instead experiencing is powerlessness and disconnect. When the President comforted his base during his first year by repeating the mantra “don’t worry, I got this”, what we should have read is “relax, I’ve got you.” Under the parameters of the current space of politics, once we had cast our votes our task was done and there was nothing left to do but fall in line and support our team at all cost. We all know the unshakable reasoning behind the necessity to choose the lesser of two evils. Perhaps we should take this more seriously and let go of our cyclical desire of electing Democrats that would actually do the right thing. All we should expect of them is to do less damage than the other side, to simply slow down the rate of the inevitable decline. We should be clearheaded about this whenever an election comes around, and greet any fanciful promises of economic growth, better jobs, improving standards of living, etc, with a collective shout of excrementum taurus. Give us supreme court justices who are not rightwingers, distribute some crumbs after all the big players have taken their share, comfort us with sweet nothings about a fair and just society. One true proposition is that Democrats are less irritating than the Republicans, and that is not nothing.
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HUFFPOST SUPER USER
Aarontastic
"Mr. Cain instead decided to try to provide her wi
11:03 PM on 07/26/2011
Very cynical! I like it XD Honestly, I've never looked at politicians in a different way. I feel that the flaw is more in the system than the individuals themselves though--lying is incentivized and practical policy-making is discouraged. Democratic politics inevitably degenerate into a game of charades. I don't know how it is in other countries; maybe the UK or Norway or Australia manages it better, or at least I hope so.
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HUFFPOST COMMUNITY MODERATOR
tacevad
American SS Card Carrying Socialist
03:38 PM on 07/26/2011
no government has ever cut it's way to national prosperity.
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HUFFPOST PUNDIT
LaurieAnn
Wake Up! Grow Up! Lighten Up!
05:41 PM on 07/26/2011
And none ever will; though the U.S. will probably die trying.
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Gestas
Mountain Man
03:03 PM on 07/26/2011
If you need money you don't go out and rob poor people....You have to Rob Banks...Like Jesse James said, because thats where the money is.
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
08:35 PM on 07/26/2011
That was Willie Sutton.
HUFFPOST PUNDIT
sdmcmla
03:02 PM on 07/26/2011
Obama's presidency for three and a half years?
05:03 PM on 07/26/2011
It might ad well be
02:49 PM on 07/26/2011
When the president suggested we contact Congress to tell them what we want, I took the liberty of contacting him to tell him what I want. The gist was basically the same as this article, though it was shorter and a good deal more caustic. Just thought others might want to send their thoughts along, too.
04:44 PM on 07/26/2011
I used to send my thoughts to the White House. All that ever came of it were email from the first lady about things like volunteerism and a note or two from the White House press flack.
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AlexNYC
Pumps dont work cause the vandals took the handles
06:21 PM on 07/26/2011
I unsubscribed from Obama's email distribution list after he extended the tax cuts for the rich. I told them in no uncertain terms that Obama is a corporatist who has no business running as a Democrat.