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President Obama released his
$3.7 trillion budget proposal for fiscal 2012 on Valentine Day and it
immediately became the object of a Valentine’s Day Massacre by Republicans in
the House and Senate who want deeper budget cuts.
Lost amid the GOP criticism was
that President Obama proposed $61 billion in cuts. His plan includes a 50 percent cut ($2.5
billion) in the government’s program to help low-income people pay their
heating bills and slicing $300 million in community development block grants.
At a time Obama is highlighting the need for infrastructure spending and a
clean environment, he is proposing eliminating almost $1 billion from grants
that go to states for water treatment plants and infrastructure programs.
Republican leaders say that
Obama’s budget was dead on arrival. GOP leaders have proposed returning federal
spending to 20.6 percent of gross domestic product (GDP), the average of federal
spending from 1970 to 2008.
“Limiting spending to a
historical average of some kind has been a longstanding goal of very
conservative organizations such as the Heritage Foundation,” noted a report by
Paul N. Van de Water of the Center on Budget and Policy Priorities, a
non-partisan think tank in Washington, D.C. “The reality is, however, that
policymakers will find it virtually impossible to maintain federal spending at
its average level back to 1970 without making draconian cuts in Social
Security, Medicare, and an array of other vital federal activities.”
Trying to peg federal
spending to an arbitrary figure from the past ignores the enormous changes in
American society that ranges from increased federal responsibility in the post
9/11 environment to a flood of baby boomers reaching retirement age. There are
three key reasons why trying to roll back federal spending to 1970 or even 2000 levels ignores today's
reality, according to the Center on Budget and Policy Priorities report:
·
The aging of the population – the
percentage of Americans aged 65 and older will grow by more than half over the
next 25 years – and that growth will increase the cost of the three largest
domestic programs: Medicare, Medicaid and Social Security.
·
Federal responsibilities have grown.
Since 2000, for example, federal responsibilities have expanded in the
aftermath of the September 11, 2001 terrorist attacks; aid to veterans has
increased as a result of the Iraq and Afghanistan wars; the Medicare
prescription drug benefit added by Congress in 2003 along with health care
reform will also expand federal spending, even though health care will
eventually lower the deficit.
·
Spending on federal debt will be
substantially higher than it has been the past 40 years. The combination of the
Iraq and Afghanistan wars, the Bush-era tax cuts and their extensions and a
severe recession have contributed to the public debt being almost twice as
large (as a percentage of GDP) as it was in 2001. Higher interest costs have
accompanied the rising debt.
The budget debate isn’t just
a matter of numbers. The budget also defines us as a country.
“There are limits to how much
Social Security can be cut without undermining its crucial role in reducing
poverty and replacing income lost when a wage earner retires, dies, or becomes
disabled,” the Center on Budget and
Policy Priorities report states. “Social Security benefits are quite modest,
averaging only $1,175 a month (or $14,105) a year) for a retired worker. Social
Security checks now replace about 37 percent of an average worker’s pre-retirement
earnings –one of the lowest of any western industrialized country –and that
figure will gradually fall to about 32 percent over the next two decades,
largely because of the scheduled increase in the full retirement age to 67.”
Obama’s pledge to freeze the
pay of federal employees and any tampering with Social Security would have a
disproportionate impact on people of color. According to the latest “State of
the Dream” report by United for a Fair Economy, 59.1 percent of Blacks and 64.8
percent of Latinos depend on Social Security for more than 80 percent of their
family income. And African-Americans are 70 percent more likely than Whites to
work for the federal government.
In his budget, Obama proposed
allowing the Bush tax cuts to expire in 2012, ending subsidies to oil and gas
companies and eliminating tax breaks for companies that do business overseas.
Unfortunately, Obama providedno details ro specific proposals. GOP leaders who
insisted on extending the Bush era tax breaks for the wealthy are unlikely to
favor curbing corporate welfare. Eliminating $125 billion a year in corporate
welfare would be more than enough to offset the proposed cuts in domestic
spending.
It is clear than neither
Obama nor Republicans will on their own volition protect the interests of the
truly needy in the budget debate. That’s why Americans need to mobilize to
force them to make more sensible decisions. It’s easy to admire how protesters
in Egypt and Tunisia have rallied in recent weeks to force a change in their government.
It’s time to raise our voices
in the U.S. We have social media and technology at our disposal. Let’s use it to
now to let our elected officials know we want them to protect average
Americans, not big business and the wealthy.
George E. Curry, former editor-in-chief of Emerge magazine and the
NNPA News Service, is a keynote speaker, moderator, and media coach. He can be
reached through his Web site, www.georgecurry.com You can also follow him at www.twitter.com/currygeorge.
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