At long last liberal Democrats (strengthened by the defeat of the Blue Dogs) are finally getting angry in public with Obama appeasement. The last straw is the Obama surrender on taxes, giving in without a public fight, on extending the Bush tax cuts for the rich. (Not only would the tax break continue for those with taxable income over $250,000, but there’s gift on the estate tax. The tax on estates over $5 million is set to go to 55%. The deal would lower that to 35%. If the estate is a mere $5 million that’s a $1.5 million present.)
The question is whether the “revolt” will amount to anything. The President will hold up the bogeyman of failure. “All the tax cuts will be gone.” Demand will shrink. Jobs will be lost. TINA. There is no alternative. And without an alternative liberals will cave just like they did with the health care “public option”.
But TIAA. There Is An Alternative. Tax cuts are a lousy way to create jobs. The alternative is public enterprise.
Jobs need to be created directly. Take the $600 billion the Fed is going to print up to buy Treasury Bonds (QE2) and the hundreds of billions that the Treasury would reap if the tax cuts expire and use it as a Superfund to create millions of full time jobs.
I’ve talked about this many times. The government should fund worker run companies in whatever productive and ecological enterprises that are needed, from mass transport companies to windmill factories, to bicycle factories. Whatever. .
People should organize and go to any public bodies they can think of from Board of Education to state legislature and demand, “Create Jobs Now!”
P.S. One of the supposed “goodies” for working people out of this deal is a “payroll tax cut”. Sounds nice at first glance, but what it is is a cut in payments to the Social Security Trust Fund. The Deficit Hawks have been screaming that the Trust Fund is insolvent. (not true), but by weakening the fund it will give more ammunition for those who want to force working people to work until they die.