Obama and Class War

In his deficit-cutting address Wednesday, Obama's approach to the Defense budget was vague, but at least he pointed to Defense as a large target for cuts that must be made, some by re-examining the mission and role of our military in a "changing world."

Here's an example of his problem: while the administration considers transferring some Egyptian aid from military to economic programs, "some lawmakers fear that would mean cutting sales of U.S. military hardware." [Just Foreign Policy 4/13]. When there's peace, we can't sell arms. That's one reason why the US sticks its nose in globally: to sell arms. Our adventures are not only investments in future arm sales; they are also driven by the defense industry's insatiable appetite for ever-larger Defense budgets.

The arms dynamic is hard to overcome, as our sudden involvement in Libya demonstrates. Our allies are urging a more active role on the US, after it stepped back, making way for Europeans to lead (and pay the costs). But they want us because our huge Defense budget gives us capabilities no one else can bring to bear--in Libya, or elsewhere.

As a Medicare recipient, I've always felt Medicare should negotiate drug prices, but Bush banned negotiated prices; pharmaceutical corporations charge Medicare outrageous prices because they can. Obama proposes allowing Medicare to negotiate prices as a deficit-cutting measure, a clever move. His vision to change the way providers are paid makes sense, too. Real deficit-cutters should like both reforms: they would cut the deficit considerably. Medicare was set up to be a financial train-wreck by Bush/Cheney's prescription drug and privatization schemes (Medicare Advantage programs, etc.).

Obama's deficit cutting approach is reassuring; his riposte to Republican Ryan's deficit-cutting budget proposal was pointed. He declared he'd never permit Ryan's proposed voucher-ization of Medicare.

Even more heartening was Obama's recognition that the wealthy have done well while others still suffer, and they owe it to the nation to make a proportionally greater contribution (through tax hikes), to enable necessary services and investments in the future. The tax cuts proposed by Ryan, he noted, would take from those who needed help and give to those who didn't: not the kind of America Obama (or I) believe in.

Did Obama blame Wall Street? No, but his DOJ is simultaneously pursuing mortgage fraud by Goldman, JP Morgan, Washington Mutual and others--even possible criminal prosecution.

Obama claimed his proposal would cut $4 trillion from the debt--as much as Ryan, but with high-end tax increases, not draconian slashes to services and tax cuts for the wealthy.

It's class war part II. Who will prevail: the new Roman Senators, billionaires like the Koch brothers, represented by Republicans, or Obama, now representing ordinary people? It's a classic choice: Obama's way maintains democracy; Ryan's would usher in something comparable to Rome's last years, with Senators dominant and everyone else impoverished and powerless.