With all of the justifiable anger directed at what’s in the 2015 spending bill
– the omnibus continuing resolution or “cromnibus” – that the House
struggled to pass late Thursday, there is also a major story to be told
about what’s not in the bill. It’s a story of missed opportunities that
is as significant as the Wall Street giveaways, the kowtowing to fossil
fuel interests and gratuitous swipes at conservative boogeymen that were
written into this monstrosity.
Most conspicuous is the absence of any real effort to address the
plight of millions of people who remain untouched by the so-called
economic “recovery” of the past few years. They are represented by the
51 percent of respondents in a New York Times poll this week
who rated the condition of the national economy as either “fairly bad”
or “very bad.” In that same poll, only 30 percent saw the economy as
No wonder: The Bureau of Labor Statistics this week reported
that 54 metropolitan areas around the country had unemployment rates in
excess of 7 percent in October, even as the national unemployment rate
was 5.8 percent. Meanwhile, those in the bottom 90 percent who are
working have seen no real wage gains since 2000, as all of the gains and
then some from economic growth over the past decade have accrued to the
top 10 percent – and most disproportionately to the top 1 percent.
(The Economic Policy Institute on Thursday calculated what it called the “inequality tax”
on the middle class, the average income a middle-class household lost
by not reaping its share of the gains of economic growth since 1979. In
2011, that “tax” for an average middle-income family was $11,630.)
Given the acute need for jobs and rising incomes, what passes for “bolstering job creation” in a summary of the budget bill
released by the House Appropriations Committee is scandalous.
Incredibly, a provision that allows banks to engage in high-risk
derivatives trading under the shield of federal insurance is listed as a
measure to “bolster job creation.” So are several measures that roll
back environmental protections or prevent policies that would combat
Meanwhile, “the bill has no major new investments in infrastructure,
despite the need and the potential for job creation. For instance, the
bill provides no funding for a proposed high-speed rail project,” said
Lindsay Koshgarian of the National Priorities Project
, which analyzes federal spending and taxation.
The explicit ban on high-speed rail funding is symbolic of Republican
myopia on the economy. There is clear demand for high-speed rail in
several high-density population corridors around the country, and the
upgrading of our rail networks would create tens of thousands of jobs
and revive whole industries in steel, rail cars and engine parts when
coupled with a Made-In-America mandate. But on that kind of investment
in the future, this is the Budget of No.
Another job-creating industry that would create millions of new jobs
and lead the American economy toward a more sustainable future is in
alternative energy. But the 2015 budget makes a point of cutting by 16
percent President Obama’s budget request for energy efficiency and
renewable energy programs, while appropriating 20 percent more than the
president requested on research and development of fossil fuels. That’s
right: The budget would spend your tax dollars supporting already
massively profitable oil, gas and coal companies perfectly capable of
funding their own research, while starving the research and development
needed to make the energy sources we need for the future to stave off
climate change more viable.
In the Housing and Urban Development budget, Republicans made a point
of noting that “no funding is included for any new, unauthorized
‘sustainable,’ ‘livable, or ‘green’ community development programs,” the
quotes dripping with condescension.
There are a host of initiatives – key among them the Community
Development Block Grant program – that could support economic
development in those communities that are experiencing high
unemployment. That would include communities like Ferguson, Mo., which
not only needs to rebuild after the riots that followed the grand jury
refusal to indict the police officer who killed unarmed teenager Michael
Brown, but to go further in addressing the economic deprivation that,
when added to tensions with the police, became combustible. But these
programs are being cut, not expanded. The Community Development Block
Grant, which spent $4.3 billion in fiscal 2004, is being capped at just
$3 billion in fiscal 2015.
“We’re not investing in people, or in the future,” Koshgarian said.
For example, “this bill ignores the President’s Preschool for All
request, even though investment in preschool has bipartisan support and
is proven effective. Likewise, it includes a token increase in the value
of a Pell grant to help low-income students pay for college, but at
$5,830, a Pell grant still only pays for a fraction of the cost of a
year at a public four-year college.”
Of the total budget, $1.1 trillion, 55 percent is devoted to military
spending. “This squeezes out all other priorities, from education to
health care to the environment,” Koshgarian pointed out. “We’re valuing
business over people across the board: even the Pentagon, which is
getting over half of the $1.1 trillion in appropriations, is increasing
spending on equipment – funds that will go to defense contractors –
while it provides troops with a measly 1 percent pay raise.”
This budget also does nothing to reform our tax code, which allows
multinational corporations and wealthy individuals to engage in
ever-more-brazen tactics to avoid paying taxes. Instead, it cuts
Internal Revenue Service funding, hampering its ability to go after tax
cheats. Nor does the budget do anything to give people more retirement
security. (In that New York Times poll, 47 percent of respondents said
they were “very concerned” about not having enough money for
retirement.) In fact, one clause in the budget bill will allow private
companies to actually lower pension payments
to more than 1 million retirees.
A major reason so many Americans are experiencing economic stagnation
is the wrongheaded focus on deficit reduction, when in fact increased
government spending in specific areas was needed to ensure that economic
growth was more robust and more broadly shared. That’s one more reason
this budget’s passage in the House is a travesty, not a triumph.
In an ideal world, this budget would be voted down so that Congress
could go back to the drawing board and get its priorities straight. It
goes without saying we’re not in that world, and in fact we’ll be a bit
further from it when Republicans take control of the Senate in January.
What we can do in the meantime is call this budget what it is – a
document that shirks the basics of making the economy work for working
people while paying fealty to Wall Street and right-wing fetishes – and
use it as a rallying cry for the progressive populist takeover of
Congress that we must start working toward today.
Post a Comment