Renewed push for austerity measures

[Hannah Bell]

The Obama administration and leading Democrats and Republicans in the US Congress are preparing the next round of austerity measures directed at slashing public services, jobs and incomes for working people, to pay for the deepening crisis of American and world capitalism. Treasury Secretary Timothy Geithner signaled the direction of administration policy in a speech Thursday to the Economic Club of Detroit...“Reducing the deficit is a war of necessity,” he declared. “There is no alternative.”

Geithner’s speech was only one of a series of such political signals...Congressional Republicans have demanded binding measures to cut spending, focused on entitlement programs like Medicare, Medicaid and Social Security, as the price of agreeing to raise the debt ceiling. Several Senate Democrats announced this week that they were prepared to join the Republicans in demanding spending cuts as part of a bill to lift the debt ceiling....Given the narrow 53-47 Democratic majority in the Senate, the defection of any four Democrats would ensure defeat of the debt ceiling measure, since all the Republicans are expected to oppose it.

The truth is that American corporate CEOs are sitting on $2 trillion in cash, which they are refusing to invest in production, let alone hiring, preferring instead the more (personally) lucrative stock buybacks and speculative financial investments. The cutback in federal, state and local government spending played a major role in the reduction in GDP growth from 3.1 percent in the last quarter of 2010 to the miserable 1.8 percent figure for the past three months.

Geithner held out the prospect that the growth rate could return to the 3-4 percent level over the next two years, although that would barely make a dent in the massive army of unemployed and underemployed workers.

http://www.wsws.org/articles/2011/apr2011/budg-a30.shtml

[aquart]

1. I agree. Billionaires should give up billions.

Let's SHARE that sacrifice.

[inna]

2. fucking kleptocrats are out of control, period.

the only "great mystery" is how exactly they get away with this shit without generating massive public outrage; it's like watching a gigantic bank heist in slow motion.

:nuke:

[Norrin Radd]

3. kr

[xchrom]

4. The least shall be sacrificed to the most. The American way. Nt

[Starry Messenger]

5. k&r

[Enthusiast]

6. They are setting us up

for the big disappointment. I just can't see it any other way.

[bvar22]

7. The Writing is On the Wall for those who can read.

"They" now own both Political Parties,
and "they" are coming.
"They" want it ALL.



Who will STAND and FIGHT for THIS American Majority?
Lofty Rhetoric, Broken Promises, and Whiny Excuses mean NOTHING.
"By their WORKS you will know them."

[bvar22]

8. The Writing is On the Wall for those who care to read it.

"They" now own both Political Parties,
and "they" are coming.
"They" want it ALL.



Who will STAND and FIGHT for THIS American Majority?
Lofty Rhetoric, Broken Promises, and Whiny Excuses mean NOTHING.
"By their WORKS you will know them."

[lonestarnot]

9. Set-up has been in for how long now? 30 years?