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Labor Angered by Obama's Willingness to Cut Social Security in Debt Ceiling Deal
WASHINGTON -- President Obama’s apparent willingness to discuss Social Security cuts in the debt-ceiling negotiations with Congress has angered labor unions and could cause them to withhold support for Democrats in the next election.
AFL-CIO President Richard Trumka: “The AFL-CIO continues to oppose any cuts in Social Security, Medicare or Medicaid benefits, including any cuts in cost of living adjustments. The best solution to our deficit problem is to create good jobs that will rebuild our economy. That should be our first priority.” Press reports say President Obama is considering a proposal to change how Social Security payments are calculated by chaining payments from the program to the Consumer Price Index. That change would help bring down the national debt but would likely reduce benefits for retirees.
Unions are making it known that Social Security cuts are unacceptable to them and say they will lobby against any cuts to the popular entitlement program.
“I think this is a huge political mistake for Democrats,” Chuck Loveless, legislative director for the American Federation of State, County and Municipal Employees (AFSCME), told The Hill.
“There is no question that the senior vote moved heavily towards Republicans last election. Social Security, Medicare and Medicaid are bedrock issues to the Democratic base, and to the extent that there are significant cuts in these programs, Democrats will pay a political price.”
Loveless said several of the cuts and tax breaks under discussion in the debt ceiling talks trouble AFSCME.
The union lobbyist pointed to one measure that would extend the payroll tax cut in place for employees to employers as well. The tax is used to finance the trust fund that pays Social Security benefits.
“We view that as raiding the Social Security trust fund. Once you put these tax cuts into place, they are very hard to get rid of,” Loveless said.
The public sector union is not the only labor group concerned about cuts to entitlements.
On Friday, Mary Kay Henry, president of the Service Employees International Union, said her union would not accept cuts to Social Security.
“As the negotiations continue, Congress should also take cuts to Social Security off the table. Social Security has not added one penny to our deficit and should not be targeted as a means toward reaching a deal,” Henry said in a statement.
That followed a similar statement Thursday from AFL-CIO President Richard Trumka.
“At a time when retirement security remains an elusive goal for most Americans, cuts to Social Security benefits — in whatever form they take — should not be on the table,” Trumka said. “The AFL-CIO continues to oppose any cuts in Social Security, Medicare or Medicaid benefits, including any cuts in cost of living adjustments. The best solution to our deficit problem is to create good jobs that will rebuild our economy. That should be our first priority.”
Discussion of Social Security cuts is the latest chapter in what at times has been a frayed relationship between the White House and labor.
Unions were not happy when Bill Daley, an executive for banking giant JPMorgan Chase, was hired as White House chief of staff. They bristled last year when President Obama engineered a compromise with Republicans that kept lower tax rates for the wealthy in place. And the AFL-CIO and others in labor have outright opposed the Obama administration’s push to pass three long-awaited trade deals.
That animosity has been reflected in words as well as in action.
Trumka gave a speech to the National Press Club in May where he distanced his labor federation from Democrats. The labor leader said that their allies need to be more forceful in their defense of labor after the attacks unions have come under this year — best exemplified by the standoff in Wisconsin over public workers’ collective bargaining rights — or they could lose labor support.
An analysis by the Center for Responsive Politics shows that unions’ political action committee contributions to candidates have declined almost by half — from more than $8.4 million in 2009’s first quarter to now nearly $4.8 million in this year’s first quarter. One major union, the International Association of Fire Fighters, announced earlier this year that it would suspend its political giving indefinitely.
Signing off on cuts to Social Security could lead to less political support for the president and the Democratic Party as they move into the 2012 election season. Some unions say the issue is a litmus test for whether a candidate will earn their support.
“We will not endorse anyone if they believe we should cut Social Security,” said Karen Higgins, co-president of National Nurses United.
Higgins would not go as far to say if that promise included President Obama, but that lawmakers in Congress and at the state level would lose the backing of the nurses’ program if they slashed Social Security.
“It is definitely our local leaders. It is definitely our congressmen,” Higgins said. “We have concerns about where the president is going and we are asking him to make better decisions for our seniors and working people in this country.”
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74 Comments so far
Show AllRemember when Rahm said, 'Where they going to go?' Obama is in way over his head. Wonder if he even knows it? And Obama thinks WE are stupid. Obama thought he could screw his base and US dumb asses would come around anyway. He probably would have gotten away with it if he had not touched the 'third rail' of the (D) party - SS. Obama could have changed the world but he has proven to be a small man. Like all our leaders they sell US out for a few cents on the dollar.
It will be good the see the end of the Clintonian/DLC/Corporate (D) party. The progressive movement was taking off in '08, till Obama stabbed US in the back. The Bush gang knew that an (R) could not be elected after W, so they gave brother O the nod and a lot of cash. Obama! They won't even let you join their club and it's not about your skin color. Clinton got the same treatment. Bill said that he thought of G H W Bush as like a father to him. Bill does not even know where the club meets. The poor boys who do the biding of the two tenths of one percentile are the help. They don't mix with the help.
It turned out to be the Only Child Syndrome run amuck, with The Kid being pathologically overindulged and overprotected, especially by my aunt, and effectively taking charge of their household from the time he learned to walk.
When The Kid reached his teens, he didn't become a juvenile delinquent or drug abuser; instead, he habitually spent my uncle's hard-earned money on expensive purchases for his hobbies, pastimes, and supposed home-improvement projects that he never actually carried out. (He liked buying tools.)
My aunt took the lead in rationalizing and spinning these reckless expenditures; perpetually outgunned and outnumbered, Uncle Max reluctantly but invariably acquiesced.
In turn, my mother would inform me and my siblings of The Kid's latest extravagance, and always ended the report with "... and Max was SO MAD!"
We all felt sorry for poor Uncle Max, but the refrain "... and Max was SO MAD!" became a running family joke; singly or in chorus, we would chime in with it at the end of our mother's stories to save her the trouble.
Even she had to laugh; it summed up Uncle Max's utterly helpless, impotent frustration and rage in the face of our domineering cousin's excesses.
Over the years, whenever I read articles like this one-- regardless of whether the aggrieved parties are "liberal Democrats", "unions", or liberal-lite progressive organizations, I find myself murmuring, "... and Max was SO MAD!"
There is only one way the duopoly can ever be defeated without violence: grimly united voting.
"I can hire one half of the working-class to kill the other half." -- Jay Gould, Gilded Age railroad tycoon and land speculator
The Ayn Rand/Milton Friedman "free market" fundamentalist fairytale of economic neo-liberalism is leading the U.S. off a cliff and Barrack Obama is prancing along before it like a stoned Romulan enthusiastically carrying its banner.
Too many voting Democrats are still deceived that President Obama's politics are not overly shaped by Reaganomics. In a January 2008 interview with the editorial board of the Reno Gazette, then candidate Obama said:
"I think Ronald Reagan changed the trajectory of America in a way that Richard Nixon did not and in a way that Bill Clinton did not. He put us on a fundamentally different path, because the country was ready for it. I think they felt like with all the excesses of the 1960s and 1970s and government had grown and grown, but there wasn't much sense of accountability in terms of how it was operating. I think people—he just tapped into what people were already feeling, which was we want clarity, we want optimism, we want a return to that sense of dynamism and entrepreneurship that had been missing."
Reagan, like Obama, "optimistically" extended tax cuts to the rich, deregulated corporations and savings & loans [whereas Obama treacherously allowed Clinton's deregulations of banks and derivatives to continue after 2008], and permitted military spending to soar without substantial cuts in other government spending or waste associated with specific civilian and military programs.
By the end of Reagan's two terms he had quadrupled the national debt, turned the U.S from the world's greatest creditor nation into a debtor nation, and his successor, Bush Sr., faced a Recession. Reagan, like every president after him, authorized hundreds of billions of dollars a year in corporate welfare subsidies for already profitable corporations and plutocrats despite critical basic needs in America that went unmet. This country will be in far worse shape when Obama gets through magnifying all the worst, failed policy aftermaths of Reagan, Clinton and Bush II.
Reagan and Bush Sr. cheerfully rolled out the fuse that would ignite economic globalization with the General Agreement on Tariffs and Trade (GATT). Influenced by neo-liberal Reaganomics, Bill Clinton lit their fuse on the grand betrayal of the American middle-class that is “free trade” offshoring of U.S. jobs via NAFTA and the World Trade Organization. Obama follows in their reckless footsteps on this despite flat job creation and worsening long-term unemployment.
What is now holding down and keeping down America’s optimism, domestic dynamism, job growth and its ability to well educate its people and adapt to a more competitive, greener, cleaner energy paradigm and green domestic manufacturing economy is sixteen years of bipartisan offshoring of American jobs, their middle-class tax revenue and Gross DOMESTIC Product in tradable goods, and a current wartime marginal income tax rate that, after loopholes, averages 17% for the richest four hundred Americans. Only hedge fund managers pay less.
These policies trace back directly to Reaganomics that began thirty years of bipartisan undermining of American organized labor and the manufacturing middle-class. Neo-liberal Obama would not even send his Vice President to speak with public sector unions having their collective bargaining rights stripped in Wisconsin. Several Democratic governors now openly attack unions.
“Free trade” without globally enforced labor and environmental protections is a barrier to rebuilding good paying, long-lasting green or legacy manufacturing jobs in the U.S. It is increasingly offshoring upper-middle-class jobs that require advanced degrees.
Because contemporary Democrats recklessly push “free trade,” openly shun or attack labor unions, and self-servingly surrender to fiscally insane, historically unprecedented wartime tax cuts for the super-rich that compel foreign borrowing plus interest--and now have the supreme contempt for their base to openly assault Social Security--it’s time to organize an independent national labor movement and a Labor Progress Party to unite all labor unions, true progressives, socialists and left-libertarians.