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Robert Creamer

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Cut Head Start But Keep Subsidies for Big Oil? Earth to Boehner...Come In!

Posted: 03/10/11 08:56 AM ET

Earth to Boehner... come in! When you look carefully at Republican Speaker John Boehner's spending proposal for the rest of 2011 you'd think these guys must have been hanging out on one of those newly-discovered exo-planets on the outer edger of our solar system.

The Republican proposal, HR1, actually proposes cuts in the Head Start program that would mean:

  • 218,000 children from low income families will lose Head Start/Early Head Start services;
  • 16,000 Head Start/Early Head Start classrooms will close;
  • 55,000 Head Start/Early Head Start teachers and staff will lose their jobs;
  • 150,000 low-income families and their children will lose assistance in paying for child care.

They say they need to make these cuts because we must "tighten our belts" to cut spending because "America is broke." But at the very same time they voted to cut Head Start, the Republicans voted to continue $4 billion worth of subsidies to Big Oil. That's right, they want to continue to hand over $4 billion of the taxpayers' money to companies like Exxon-Mobil, the most profitable company in human history.

These subsidies are suppose to provide an incentive for them to produce more oil -- as if the price of oil that closed yesterday at $105.02 per barrel does not do the trick.

In the last quarter of 2010, Exxon-Mobil's profits surged 53% to $9.25 billion on the strength of rising oil prices and increased demand for petroleum products. That means Exxon-Mobil is earning profit at a rate of about $37 billion per year.

How much is $37,000,000,000? It's what 740,000 average American families make for working all year long.

So while the Republicans have proposed to cut back on providing a critical educational boost for the future generation, they have voted to have a tag day for the most profitable company that has existed since the dawn of humanity. Now I'd call that seriously out of touch with the priorities of everyday Americans.

Of course that's not all. The Republicans in the House voted to cut Pell Grants, that help middle class kids go to college, by 25%.

They voted to kill a program that helps low-income families weatherize their homes and permanently reduce their energy bills. Guess we just have to tighten our belts!

They voted to cut funds for employment and training service for jobless workers -- so much for "jobs, jobs, jobs."

They voted to cut funding for clean, safe drinking water by more than half, to cut funding for the Centers for Disease Control and Prevention by 10% and to cut funds for the Food and Drug Administration by another 10%. All the while handing out billions to the oil companies.

And remember, they are giving handouts to the oil companies at the same time that oil and gas prices have been skyrocketing.

Increases in gas prices siphon money from the pocketbook of ordinary families. The New York Times reports that some economists calculate that, "each $10 increase in the price of a barrel of oil knocks 0.2 to 0.3 percentage points off the growth rate of the economy." According to a report by Morgan Stanley investments earlier this month, "... a US$1 sustained increase in gasoline prices will act like a US$120-130 billion tax hike, equal to 1.1% of disposable income."

There are, however, two big differences in the "tax hike" caused by gas price increases and a real tax hike. First, most of the money comes from the pockets of ordinary middle class Americans. Second, it all goes into coffers of Big Oil companies instead of paying for things like education, public safety, roads, bridges, subways and health care. It goes instead into the pockets of these huge companies and their shareholders -- who are overwhelmingly the wealthiest people on the planet.

Then, of course, Exxon-Mobil has to be able to afford to pay its CEO, Lee R. Raymond, who last year made $25.7 million dollars. In case you're counting, Mr. Raymond earns 514 times the salary of the average $50,000 per year worker. He is paid $12,355 per hour (for a 40 hour work week). Which means he is paid as much as a minimum wage worker makes all year long in the first hour and half of his first day of the year.

Mr. Raymond made more money before he had a coffee break on January 3rd this year than many moms who get on a bus at 5 AM every day, take no vacations, and scrub floors for eight hours every day -- and repeat that drill for 260 work days all year long.

And with all of that, the Republicans think the taxpayers should reach into their jeans and hand over yet another subsidy from the federal treasury, while at the same time they are cutting slots in Head Start because, Boehner claims, "America is broke." I guess unless you happen to be an oil company -- or a Wall Street speculator.

Increasing oil prices not only benefit oil companies -- whose reserves of oil skyrocket in value with every increase in world oil prices. They also benefit Wall Street speculators who are the proximate cause of current world oil price inflation.

At the moment, the supply of oil is adequate to meet world demand. We are not experiencing an oil shortage. The price of oil has gone up because Wall Street speculators are betting the turmoil in many Arab counties will disrupt oil supplies and make oil scarcer in the future. It's their bets -- and their trading strategies -- that are making world prices rise, not short-term fluctuations in supply and demand.

The influence of speculators on oil prices could be limited if the Commodities Futures Trading Commission (CTFC) were to vote to impose position limits that restrict the ability of speculators to influence oil prices. The CTFC was mandated by Congress to set those limits by the first of this year, but have not yet done so. They have dragged their feet because Republican Commissioners and Republicans in Congress oppose tough position limits since they would also limit the amount of speculative profit that can be made by the base of the Republican Party: Wall Street.

The latest spike in oil prices shows us once again, that our dependence on oil is a grave danger to our economy and our national security. That uprisings half a world away can threaten our economic stability -- at the same time they enrich oil giants -- should send a clear signal. America has to free itself from our addiction to oil.

It also demonstrates the danger posed to our economy by failure to effectively regulate Wall Street speculation.

But the Republicans not only want to give subsidies to the oil companies, their spending plan would cut our investments in clean energy that would allow us to throw off the yoke of foreign oil. H.R. 1 slashes key Department of Energy (DOE) programs that promote clean energy by about $1.7 billion -- approximately a 23 percent decrease from current levels. What's more, they have included non-budget "riders" that gut the clean air act.

The Republicans are not only endangering our economic security. They are endangering our national security by guaranteeing we are held hostage by whoever happens to control the oil fields thousands of miles from our shores.

In fact, a good case can be made that the Republican Party should register with the Justice Department as an agent of a foreign power: international oil companies that operate across the world's borders, owe no allegiance to any country -- and are perfectly happy to compromise America's economic and national security so they can continue to make more and more money by siphoning dollars from the pockets of America's middle class.

Boehner's Republican Party is certainly out of touch with everyday Americans -- and its spending priorities endanger America's future.

Robert Creamer is a long-time political organizer and strategist, and author of the book: Stand Up Straight: How Progressives Can Win, available on Amazon.com.

 
 
 

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02:02 PM on 03/15/2011
1. "An illiterate nation is the blind tool of its own destruction" S. Bolívar

The fact that the 2011 de facto dictator of Venezuela thinks he is the reencarnation of Bolívar doesn´t make this assertion less true. And let´s be honest here: The US is a semi illiterate country

2. Mao Tsé Tung also thought that the poorer and more scared chinese citizens were, the easier it would be to control them. I never ever doubted republicans could get so close to communism in their attitude to common folk
HUFFPOST SUPER USER
dorym
05:38 PM on 03/14/2011
obscene...shameful....twisted.....actually unbelievable....so, teabaggers...is THIS what you wanted????.....probably not....both parties are in the pockets of the banks/pharma/elites.....neither party gives a damn about "we the people"....their candidates are good for the dog and pony show we call elections...but, that is all....we need "the AMERICAN party" of and for the people....NO big time politicians.....Jesse Ventura, Michael Moore....and many others truly represent us.....I say we throw ALL these bums out....and, I also say that, if we don't do it in the polls, we ARE going to do it in a revolution....I am a history teacher, and the handwriting is on the wall....come on, people..."the definition of insanity is doing the same thing over and over and expecting a different result"....GET IT YET??????!!!!
07:36 PM on 03/12/2011
Is this a surprise????
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MadAs
Tuned-in science editor
07:04 PM on 03/11/2011
About the $37 billion analogy that Robert Creamer presented. Here’s another one:

If you could earn a dollar every second of the day every day (that’s $3600/hr), it would take you 426 days to earn $37 million, but a bit longer to reach $37 billion – like, 31.5 years (that’s right years, not days).

Just an interesting way of looking at those Wall Street bonuses and profits versus your sacrificial salary that need’s to pay for the deficits that Wall Street richies cannot afford.
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HUFFPOST SUPER USER
Mary Blickhahn
Mary Quite Contrary
10:34 AM on 03/11/2011
My one thought is this...What is the point of all this? The role of government is not to make their buddies richer. The point was to govern the nation. Who is doing that? Not these leaders. I also would like the people who comment that we cant complain unless we voted to remember we have duped with many promises that remain unkept. Much of what is happening is behind closed doors and only bits of it get out to us. Quit yelling at us that this is somehow our fault. We are not defrauding the world! The few politicians who told us what they thought we wanted to hear to get elected are!
09:01 AM on 03/11/2011
Thank you Justice Roberts and the SCOTUS for making the wishes of multinational corporations more important than the wishes of American Citizens. I hope the payoff for selling your soul was worth it.
08:56 AM on 03/11/2011
If we can take taxes from the middle class and poor and give to the wealthy, why can't we do the same to the wealthy?
08:53 AM on 03/11/2011
The middle class must "tighten our belts", a term that applies to the ability to reduce hunger pangs by squeezing your middle tighter, but the top 2% gets to go shopping for Christie sized belts. No one at the top has had to give up anything during this recession. In fact, they've written legislation allowing them to keep gardeners and domestic help that may be illegal immigrants because it;s more affordable than paying living wages to Americans.
Th Hypocrisy is disgusting.
kellygreen
"Ideology is the Science of Idiots" John Adams
08:47 AM on 03/11/2011
When are Progressives going to wake up and realize that Conservative arguments are POWER (Theirs and that of their cronies) and not about Principle??

They will argue whatever justifies (or seems to) whatever it is that they want, or whatever it is that they wish to do.
07:00 AM on 03/11/2011
Cut both. Head Start has been demonstrated ineffective and big oil doesn't need subsidy.
08:54 AM on 03/11/2011
Head start has proven to be a huge indicator of future success of students. I'm a teacher, I know.
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Welib
Peace on Earth!
08:58 AM on 03/11/2011
Got a link to that Head Start report on it's ineffectiveness?  I can't seem to find anything that confirms your statement. 
HUFFPOST SUPER USER
vippy
Carpe Diem!
05:40 AM on 03/11/2011
Simple, big oil gives them money and Head Start does not!  What vile individuals and who voted for them?
08:55 AM on 03/11/2011
Already a fan, so faved.
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HUFFPOST SUPER USER
Angie Sullivan
Students are my special interest.
05:34 AM on 03/11/2011
In Nevada it's mining that is using this logic. 80% of the world's gold comes from Nevada. Foreign corporations like Barrick and Newmont come into the state which has an outdated Constitutional provision that keeps mining from being taxed. The mining corporations pay 1/2 a percent on the billions and billions of ore they haul out of the state. Gold is up 1028%. Billions and billions of dollars of gold which will be gone from Nevada forever are lining the pockets of protected billionaires.

Meanwhile, our current governor Sandoval (who's law firm used to lobby for mining), announced his new budget which primarily is balanced on the backs of students. He actually campaigned on this stating - I will fire one in five teachers. Now he's doing it - as he said in his opening remarks . . . we all need to sacrifice at a cost of $300 per student. His cuts will ruin K-12 education and decimate high education in this state.

I live and work in Vegas. To come up with the 400 million dollars that needs to be cut the following could happen: Teachers will take a 16 percent cut in pay and benefits, OR 33 less days per school year, OR 95% of the central office.

I'm told to sacrifice . . . so foreign mining billionaires can protect their billions in profits? When will people wake up? It's not OK to give to the rich at the expense of kids.
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HUFFPOST SUPER USER
muck-raker
give me liberty or give me death
07:04 AM on 03/11/2011
Angie Great Post: F&F:Is consumeris­­t totalizati­­on of this country really a conscious plot by handful of powerful corporate and financial masters? we find ourselves trundled off toward babbling ranks of paranoid. it's easy enough to name those who would piss themselves with joy over prospect of a One World corporate state, with billions of people begging to work for their 1,500 calories a day and an xBox chip in their necks. It's too bad our news media quit hunting with live ammo decades ago, leaving us with no one to track the activities and progress of what sure as hell seem to be global elites, judging from financial spoor we find along every pathway of modern life.

In our saner moments we can also see that it does not take super-cent­­ralized plotting to pull off what appears to have been accomplish­­ed. Even without working in overt concert, few thousands of dedicated individual corporate and financial interests can constitute a unified pathogenic whole, much the same as individual cells create a viable dominant colony of malignant organisms -- malignant simply by their anti-human­­, anti-socie­­tal nature. We don't see GM, Halliburto­­n, Burger King and CitiBank lobbying state for universal health or clean rivers, do we? But mention unions or living wages, and financial colony within our national Petri dish shape shifts into a Gila monster and squirts venom on the idea and chits money all over Capitol Hill.

http://www­­.joebagea­n­t.com/jo­e/­2006/12­/so­mewher­e_a_­ban.h­tmlâ€â€
08:57 AM on 03/11/2011
#87 Sadly, Nevada is not alone in this. The Middle class has the numbers, but the GOP has the power. It's a futile effort.
Mark from atlanta
Unity through Diversity.
11:52 PM on 03/10/2011
The big oil puppet masters pull the strings and the GOP leadership dances. We pay at the pump to watch the performance. Very predictable.
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HUFFPOST SUPER USER
Andrea Doria
GOP - Destroying the Middle Class since 1980
11:46 PM on 03/10/2011
The GOP will cut anything that they don't make money on.
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HUFFPOST SUPER USER
muck-raker
give me liberty or give me death
07:07 AM on 03/11/2011
Andrea agreed F&F...here is a tantalizing short article which many will like: http://www.financialsensearchive.com/economy/nolte/2010/0628.html
11:02 PM on 03/10/2011
Does head start work? Yes all subsidies of all kinds to everyone should stop.
03:06 AM on 03/11/2011
How bout starting with the oil companies first, and THEN we can take things away from the kids. If they did that, then I might believe that America is broke.
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kamachanda
Mr. President, Tear this Wall Street down!
05:53 AM on 03/11/2011
Oil company CEO's cry louder than small children when you take something away from them.
roads
more wag....less bark
05:42 AM on 03/11/2011
when did you lose your humanity for your fellow Americans? Why does helping educate poor people and lift them up...upset you....but subsidizing billionaires is just fine. Good god....how is that even rational ?? Quit buying into the lie that safety nets for the middle class and poor are the cause of the deficits. It's just not true.

Besides.......the GOP cried about jobs for months....and all I see them doing trying to make cuts that will create more lay offs. It's not rocket science my friend.
kellygreen
"Ideology is the Science of Idiots" John Adams
08:52 AM on 03/11/2011
Asking someone when the lost something, assumes that they ever had it in the first place.

I actually had a (now ex-) girlfriend who literally said, "Unless something affects either me or my family, I DON'T CARE ABOUT IT."

Arguments about civic duty, moral responsbility, and "we're all in this together" are just lost on people whose attitudes are so tribal, and whose worldview is so narrow.