iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Robert Reich

GET UPDATES FROM Robert Reich
 

Stop the Austerity Train Wreck!

Posted: 11/18/11 06:13 PM ET

The biggest question right now on Planet Washington is whether the congressional supercommittee will reach an agreement.

That's the wrong question. Agreement or not, Washington is on the road to making budget cuts that will slow the economy, increase unemployment, and impose additional hardship on millions of Americans.

The real question is how to stop this austerity train wreck, and substitute the following:

First: No cuts before jobs are back -- until unemployment is down to 5 percent. Until then, the economy needs a boost, not a cut. Consumers -- whose spending is 70 percent of the economy -- don't have the money to boost the economy on their own. Their pay is dropping and they're losing jobs.

Second: Make the boost big enough. 14 million Americans are out of work, and 10 million are working part time who need full-time jobs. The president's proposed jobs program is a start but it's tiny relative to what needs to be done. It would create fewer than 2 million jobs. We need a big jobs program -- rebuilding America's crumbling infrastructure, and including a WPA and Civilian Conservation Corps.

Third: To pay for this, raise taxes on the super-rich. It's only fair. Never before has so much income and wealth been concentrated at the very top, and taxes on the top so low. Go back to the 70 percent marginal tax we had before 1980. And include more tax brackets at the top. It doesn't make sense that any income over $375,000 is taxed at the same 35 percent, even if it's a billion dollars. And tax all sources of income at the same rate, including capital gains.

Fourth: Cut the budget where the real bloat is. Military spending and corporate welfare. End weapons systems that don't work and stop wars we shouldn't be fighting to begin with, and we save over $300 billion a year. Cut corporate welfare -- subsidies and special tax breaks going to big agribusiness, big oil, big pharma, and big insurance -- and we save another $100 billion.

Do you hear me, Washington? Do these four things and restore jobs and prosperity. Fail to do these, and you'll make things much, much worse.

 
 
 

Follow Robert Reich on Twitter: www.twitter.com/RBReich

The biggest question right now on Planet Washington is whether the congressional supercommittee will reach an agreement. That's the wrong question. Agreement or not, Washington is on the road to ...
The biggest question right now on Planet Washington is whether the congressional supercommittee will reach an agreement. That's the wrong question. Agreement or not, Washington is on the road to ...
 
 
  • Comments
  • 1,584
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Highlights
Recency  | 
Popularity
Page: 1 2 3 4 5  Next ›  Last »  (23 total)
PROGRESSISGOOD
Without Economic Justice, There Is No Justice!
10:04 AM on 11/21/2011
The answers are obvious. They have always been obvious. The question remains, how do we remove the obstructionist Republicans who only care about the 1% getting richer? The bigger questoin is how do we get the 49% of American's who make up the Republican base but aren't part of the 1% to realize they are the enemy of American workers every time they vote for a Republican politician.
HUFFPOST SUPER USER
journeyman steve
10:19 AM on 11/21/2011
IMO, the bone that you throw the GOP is an actual area of improvement -- the DEMS need to acknowledge that there are people on the "entitlement bandwagon" that are able bodied citizens who use some esoteric difficulty and challenge to justify getting SSDI and living the "welfare-state dream" (Note, these are not rich people, they are definitely "poor" by any measure, but still.....)

Everyone's probably got a friend or friend-of-friend somewhere who is drawing social security but not really a disabled body.... That's where reform is possible on the entitlement side of the federal expenditures.
PROGRESSISGOOD
Without Economic Justice, There Is No Justice!
11:21 AM on 11/21/2011
That is the problem. People are so focused on the welfare cheat who may be taking $300 or $400 per month in food stamps for which they do not qualify while the banksters and stock pushers are taking $300,000 or $400,000 or more in tax credits, loopholes and taking advantage of the unequal treatment of capital gains over regular income. Let's not let the rich and powerful steal millions or billions from our tax revenues while we focus on the poor soul who is taking hundreds or thousands of dollars of free food.

I could never understand why Republicans get so fired up about the welfare cheat while they ignore the corporate cheats who are really robbing us blind.
03:16 PM on 11/22/2011
I agree totally. Plus there is so much waste in Medicare. Why are we tied to Bush's not enabling Medicare to negotiate drug prices? Also, Medicare sent me (through a third party) a huge list of intrusive questions about my doctor and my state of health. I threw it out, they sent me another which I also threw out, then they robo called me. I answered a few questions and hung up. Now my Medicare plan has done the same (also through a third party) which I also threw out. My Medicare dollars should not pay for BS like that plus it's no one's business what I think of my doctor or what the state of my health is. If I don't like my doctor I will get another. Big Brother is Trying. More waste, every month my Medicare plan sends me about 6 pages about the prescriptions I picked up during the month and year. Total waste.
HUFFPOST SUPER USER
robert horwitz
09:25 AM on 11/21/2011
I like Robert Reich. Generally and mostly specifically I like his ideas on economics. Here is our problem as I see it from the perspective of one who has helped create this problem. Most folks including myself had their emotional development arrested at the age of three years old. (Me, Me, Me, Mine, Mine,Mine). No I don't mean that we all have to become missionaries and selflessly go out and save the World. What I do mean is that we have to begin to learn to share before we are all expelled from the World's run preschool.
photo
BeerLover
Carpe Diem!
09:09 AM on 11/21/2011
Funny..... somehow deep down inside I know they don't care.....not even a bit.
08:25 AM on 11/21/2011
Fifth: Replace Geithner with Reich and Krugman.
photo
BeerLover
Carpe Diem!
09:10 AM on 11/21/2011
X2!!
photo
HUFFPOST SUPER USER
MRstoner2udude
I'm a human being? What about you?
07:35 AM on 11/21/2011
It is amazing how destructive war is to the economy. And please, don't say wars lift economies. The government has the ability to buy any job they want in any sector. To buy jobs in the war industry is proof how sick our collective psyche is. To simplify, where would we be if we spent the money on war over the last 10 years on police, new energy and education instead? We surely wouldn't be in a depression. We might be still leading instead of losing ground to China.
photo
HUFFPOST SUPER USER
MRstoner2udude
I'm a human being? What about you?
07:28 AM on 11/21/2011
I'm writing in Robert Reich for president.
redonthehead
Winning trophies for my game face alone
07:17 AM on 11/21/2011
And the beat goes on. The President is doing everything in his power to make sure that jobs aren't created. XL pipeline, Boeing, Gulf Drilling.

Taxing the super rich will only inspire them to find another way around paying taxes. FDR instituted a millionaires tax in the 30's and the number of millionaires went down by 70%. The rich didn't get rich by being stupid and they don't see their role on this planet to provide income for those not working.

Greece, Spain and Italy have all raised taxes to over 40%. They're still broke, their revenue is down, their GDP's are down, and Mr Reich wants to do the same thing here. Thanks but no thanks.

Unemployment. The current coverage lasts for nearly 2 years. How long does it take to find a job? Our government is paying people not to work and are surprised when people don't work.

Finally, his infrastructure idea. Governement in all forms collects 60 cents on every gallon of gas sold. Why isn't that money going to roads and not into the general fund? Taxes like these are necessary and useful but not if they're being misused by some politicians to buy votes. Remember New Orleans. For 25 years the federal and state government gave that city billions to shore up it's levy system. That money didn't go to levies and catastrophe happened.
photo
Brian Gilmer
Good citizens make good citizens.
07:42 AM on 11/21/2011
Both XL Pipeline and Boeing actions were done y independent agencies outside the control of the executive.

The wealth are escaping taxes by using the lower capital gains rate. Republicans are pushing for the rate to go to 0%. Republicans also push for 0% tax on dividends calling it double taxation. That is what needs to change. To be fair income regardless of the route should be taxed the same.

Greece, Spain and Italy are not the US. In Greece it is well known that not only do they NOT pay their taxes but they do not get prosecuted for not paying taxes. Spain just does not have the same work ethic as the US. The Italians are WAY more active in their democracy then in the US.

Infrastructure is more that just road it include rail, waterway, ports, water, power, bandwidth, waste disposal and labor.
photo
HUFFPOST SUPER USER
julbar
12:09 PM on 11/21/2011
I say, 'very interesting' but the Italians still have not accepted "nationalism"- still in the city states mode emotionally- so how are they so active in their democracy?
This user has chosen to opt out of the Badges program
SitandStay
Lorenzo&BushH8ter
03:26 AM on 11/21/2011
Sen Johnny Isakson from Georgia has introduced an anti union bill so that among others, the healthcare workers don't get an idea that they should be treated like human beings.

"Senator Johnny Isakson (R-GA) Introduces Bill to Reverse NLRB's "Micro-Union" Decision
Late last week, Senator Johnny Isakson (R-GA) introduced the Representation Fairness Restoration Act (S. 1843) -- legislation designed to reverse the National Labor Relations Board's August 26, 2011 decision in the Specialty Healthcare case. In that decision, the Board overruled 20 years of practice regarding how it determines the "appropriate unit" in non-acute health care facilities. More importantly, however, the NLRB has clearly signaled that it now endorses Member Becker’s long held belief that smaller units -- such as units that consist of only one department, or perhaps even one job classification -- should be permitted, rather than the current NLRB preference of favoring “wall to wall” units. Sen. Isakson's legislation would reinstate the long-standing standard for determining which employees make up an appropriate bargaining unit for the purposes of the NLRA."
This user has chosen to opt out of the Badges program
SitandStay
Lorenzo&BushH8ter
03:36 AM on 11/21/2011
Sen Johnny Isakson.....
"Shortly after graduating from the University of Georgia, he opened the first Cobb County office of Northside Realty, a prominent Atlanta-area real estate firm. He became company president in 1979, a post he held for 22 years, during which Northside became the biggest independent real estate company in Georgia."

And that, my friends, is why you should vote for Democratic attorneys or anyone but a Republican business person.....they think, like Herman Cain, that being a person in business is all that is required to bamboozle the citizens for their own profit and money is their only interest.
I can remember a time when a college education was supposed to bring about some personal fulfillment instead of making you a drone of industry paying back a corrupted student loan from a college that had very little interest in hiring worthy instructors and even less in your future employment.
photo
HUFFPOST SUPER USER
Davwbaird
Brothers and sisters of the same mother
08:20 PM on 11/20/2011
So very true. So many have lost their perspective.
It is insane to not take the right road out of this morass. Jobs. rebuilding. It is almost like the republicans are selling out Americans to the devil.
This user has chosen to opt out of the Badges program
SitandStay
Lorenzo&BushH8ter
02:56 AM on 11/21/2011
Newt is working on it as hard as he can.

http://www.healthtransformation.net/cs/contact_us
06:01 PM on 11/20/2011
@RobertReich, I found your article on "stop the austerity train wreck" to be with insightfulness. However, my concerns lie with your Fourth point: Cut the budget where the real bloat is i.e. Military spending. I also do not have a problem with ending Corperate subsides and special taxbreaks. However, you are missing the point on this idea of cutting military spending. 9/11 got us into this mess. Ending weapons systems that don't work is a very profitable idea and it certianly helps. But you see, our naiton was attacked on 9/11, and it costs a great deal to convert a military force that has been geared towards the "fight on the European battle field". It also takes even more money to stop a insurgency/counterinsurgency and stregthing foreign govements to assit in that type of operation. To simply say "we should stop wars we shouldn't be fighting to begin with, and we save over $300 billion a year" is missing the whole point. We still need our current military divsional organization that is broken down into regerments and brigades. Although, our military is still larger than it was prior to world war 2, it is still much less than what we had immediately after the Vietnam War. We have seen what happens to us when we cutt our military so far back that we can not defend ourselves.
photo
mcostello
It's just math
07:15 PM on 11/20/2011
@pusified;
How many ways can you miss the point?
I am not a fan of deficit spending but.............
Defend ourselves? MOre like 'defend our oil". We could defend our country on 1/4 of our current military. (I am not suggesting this)
I read your post and the sword that hangs over the conversation is the black budget that goes to internal security since 911. If you want to make the argument for the changes to our defense since 911, IMHO ,you have to make an argument AGAINST our constitution, because the security apparatus constructed (with no appearent need) have given the government the tools to take all of our freedoms.
02:29 PM on 11/21/2011
the terroists took advantage of those constitutional gurrantees. As much as I do not like many bills that were created because of 9/11...their goal is to stop any recurring big terror event from happening again.
photo
HUFFPOST SUPER USER
Michael D Ballantine
Texas Justice Party - Chairperson
08:12 PM on 11/21/2011
We can start by getting rid of the Patriot Act and the TSA. We bring the troops home and go back to defense. It's just like half-time in a football match, regroup, new strategy, come out lean and mean. That's my plan.
frankieshoes1
lookitupyerdamnedself
02:10 AM on 11/21/2011
What are we defending ouselves against? We have no one invading us. No country has decared war. We are in conflicts all over the world and not one declared war-why?-because congress has to authorize spending for a war but if it is not declared then no one is held accountable for the cost. We are not spending money on defense. We are spending it on an economic colonialism.
02:41 PM on 11/21/2011
@frankieshoes1, we defend our borders (as laughable as it is) as well as our soverign property thoughout the pacific ocean area. We defend out treaties with other nations, we defend through our obligations because of NATO. We defend against international terroism. We defend against crime by giving military assistance to other federal agencies like the CG, FBI, DEA, BATFE, the Border Patrol, and the U.S. Marshalls office. We are rountely invaded. But like many counties most of those "invasions" occur because of lacks enforcement of current law on immirgration. Our congress did declare a state of war between us and the Al-Qaida organization and all who assist it (meaning the Taliban).
photo
HUFFPOST SUPER USER
Gracie fr
04:48 PM on 11/20/2011
Mahatma Gandhi said, "Gandhi had said:

"Life will not be a pyramid with the apex sustained by the bottom. But it will be an oceanic circle whose centre will be the individual always ready to perish for the village, the latter ready to perish for the circle of villages till at last the whole becomes one life composed of individuals, never aggressive in their arrogance, but ever humble, sharing the majesty of the oceanic circle of which they are integral units. Therefore, the outermost circumference will not wield power to crush the inner circle, but will give strength to all within and will derive its own strength from it."

The OWS general assemblies in cities around the world are living examples of these "ever expanding, never ascending" oceanic circles. When everyone has to be included in decision-making, consensus is the only way. This is how indigenous cultures have practiced democracy throughout history. Future generations are reconnecting to this ancient tradition of shaping real freedom because corporate rule has displaced democracy, and people's representatives have mutated into corporate representatives.

Today, worldwide, representative democracy has reached its democratic limits. From being "by the people, for the people, of the people", it has become "by the corporations, of the corporations, for the corporations". Money drives elections, and money runs government.
The question is, an we put the gennie back in the bottle?
http://www.aljazeera.com/indepth/opinion/2011/11/20111112135744718390.html
This user has chosen to opt out of the Badges program
photo
04:38 PM on 11/20/2011
Dubbed the Computer Professionals Update Act (CPU Act), Senate bill 1747 would change the Fair Labor Standards Act (FLSA) to remove overtime protection and compensation from “almost everyone working primarily in information technology” who earns either a salary, or an hourly rate of $27.63, according to Paul E. Almeida, president of the AFL-CIO Department for Professional Employees (DPE).

Information technology companies are focused on cutting pay for the people who work for them. If their effort succeeds, however, it will suggest to every other industry that the time is now to gut FLSA for every covered private-sector worker.

Introduced in the U.S. Senate last month by Kay Hagan (D-N.C.), the CPU Act has found a Democratic co-sponsor in Sen. Michael Bennet (Colo.), who is joined by two Republican co-sponsors, Sens. Mike Enzi (Wy.) and Johnny Isakson (Ga.).
photo
Brian Gilmer
Good citizens make good citizens.
07:57 AM on 11/21/2011
There is overtime protection for people working IT in CA but I am not sure if it is the case anywhere else. In CA in the early and mid-1990s there was an epidemic of drug use in the IT community mostly speed. Strong coffee and Energy drinks are a part of the IT culture. It is not unusual for software developers to put in 60 hours work weeks sometimes for months to get a project out the door ironically also ending the companies need for the developers. What the overtime pay does is forces businesses to create more realistic plans and not rely on heroic efforts of IT professionals and their families to make up for poor business practices. What his bill does it takes away any disincentive for businesses to take efforts to reduce risk because there is less of a penalty to working IT professionals long hours.
photo
HUFFPOST SUPER USER
Watching rock grow
FE = Iron, and Female = Iron Male :)
03:58 PM on 11/20/2011
Tell Mr. Reich, tell it and Washington D.C. listen to him. No cuts until jobs are back, I really like that one Robert.
02:31 AM on 11/21/2011
True, there is no pressing reasons to do big cuts this year or next other than to desengage our military in iraq and wind down afghanistan. We need to take the political theater and uncertainty out of it.
03:19 PM on 11/20/2011
Hey Robert, why don't you climb onto a stool (so you can see) and notice that the American people are tired of tax and spend. Less and less people buy into your progressive fantasy to tax the rich. Sooner or later you run out of rich people. The sooner is now. The federal government does way to much that was never intended by our wise founders. Get out of the past. Do you really advocate our continuing to borrow 40 cents for every dollar we spend. It has to stop somewhere or we will collapse financially. Or is that what progressive want?
photo
HUFFPOST SUPER USER
Watching rock grow
FE = Iron, and Female = Iron Male :)
03:57 PM on 11/20/2011
Less rich people! In what time period are you living in?
HUFFPOST SUPER USER
knott wrench
05:30 PM on 11/20/2011
So you want Chuckie and Davie Koch to pay less and less taxes and you and the other 99ers more and more of the less they earn?

Or are you within the 1 percent?

Go Robert!
This user has chosen to opt out of the Badges program
03:03 PM on 11/20/2011
Where is the money going to come from, to pay these tens of millions of Americans, money sufficient so we can go out and buy things, most of which is crap we don't need, designed to become garbage? Taxing and cutting loopholes will only pay for part of it. And what are we going to do, put them to work re-building infrastructure designed in an age of cheap and abundant fossil fuels, or building a new infrastructure for the end of the age of cheap and abundant fossil fuels? Damn, we just spent the last three years paying unemployment benefits so people could look for jobs nobody was creating. Will this new Government agency work as well as the Treasury, or the SEC, or the DOJ, the DOL, or the DEA, or ATF, all of which seem to have lost sight of the duty to protect the interests of the American people, as opposed to simply the interests of America, or the agency.

www.offthegridmpls.blogspot.com