NOVEMBER 12, 2012
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The Coming “Historic Betrayal”
Democrats and the Fiscal Cliff
by SHAMUS COOKE
Literally the day after the election a sudden “urgency” gripped the nation: the imminent danger of the so-called “fiscal cliff” — the national automatic tax increases and spending cuts due in January. The media screamed that the suddenly approaching fiscal cliff would trigger a recession, forcing Democrats and Republicans to consider a “grand bargain” budget deal to avoid disaster.
Of course the fiscal cliff was looming throughout the presidential campaign; politicians simply agreed not to talk about it, since they shared — more or less — the same very unpopular “grand bargain” solutions: austerity cuts to Medicare, Medicaid, Social Security, and other popular social programs.
Yes, Obama talked incessantly about the rich “paying their fair share” during his campaign, but he greatly exaggerated his willingness to make this happen, as well as the real differences between the Republicans and Democrats when it came to fixing the deficit.
This fact is revealed by the pro-corporate grand bargain that Obama nearly brokered last summer to fix the fiscal cliff.
The New York Times explains:
The White House agreed to cut at least $250 billion from Medicare in the next 10 years and another $800 billion in the decade after that, in part by raising the eligibility age. The administration had endorsed another $110 billion or so in cuts to Medicaid and other health care programs, with $250 billion more in the second decade. And in a move certain to provoke rebellion in the Democratic ranks, Obama was willing to apply a new, less generous formula for calculating Social Security benefits, which would start in 2015.
via Democrats and the Fiscal Cliff » Counterpunch: Tells the Facts, Names the Names.







