Larry Summers wanted a flagging economy so he could torpedo Social Security, Medicare and Medicaid
What [Obama’s chief economics advisor, Lawrence Summers] wanted was exactly what he got, a slow, underperforming economy with high unemployment and huge deficits. Does anyone really think that an economist with Summers’ impressive education and experience could be $1 trillion off in his calculations? (The American Recovery and Reinvestment Act of 2009 was eventually whittled down to $787 billion) It’s ridiculous. Summers wanted a flagging economy so he could torpedo Social Security, Medicare and Medicaid. These were the targets from the very beginning.As for Obama, well, he probably figured that the $800 billion fiscal package would be enough to carry him over the finish-line in the 2012 elections, but not so big that it would subvert the goals of his chief economics advisor who was beholden to Wall Street and big business. In truth, Obama wanted the same thing as Summers, a justification for attacking the meager programs that keep the elderly and vulnerable from destitution.
Obama could allocate $300 billion per year to rehire the 650,000 teachers and other state and local workers who’ve been laid off since the crash. That would be the easiest thing to do. Skip all the red-tape connected to infrastructure and gov job’s programs and just rehire the people who got their pink slip after the crash. The money spent on jobs would more than pay for itself by raising state revenues and boosting economic activity by many orders of magnitude.
Have you seen a graph of how many (state and local) jobs have been lost under Obama? It’s shocking! Take a look: http://streetlightblog.blogspot.com/2012/05/government-job-destruction.html
We need to get these people back to work so they can feed their families and pay the bills. If we can afford $11 trillion to bail out crooked bankers, we can certainly afford a measly $300 mil for hard-working middle class families. It’s just a matter of priorities.
Obama is just as committed to gutting Social Security as Romney. The only difference is that he’s a better pitchman. Much better.
Labels: 1%, ARRA, Bush Administration, Counterpunch, elites, incompetence, Medicare, Mike Whitney, Mitt Romney, Obama administration, social contract, social darwinism, Social Security, super-rich, unemploymentSubmit To Propeller