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Today's Top News
Obama’s First Stand
The President says a Republican proposal to
extend the Bush tax cuts to everyone for two years is a “basis for
conversation.” I hope this doesn’t mean another Obama cave-in.

Yes, the President needs to acknowledge the Republican sweep on Election Day. But he can do that by offering his own version of a compromise that’s both economically sensible and politically smart. Instead of limiting the extension to $250,000 of income (the bottom 98 percent of Americans), he should offer to extend it to all incomes under $500,000 (essentially the bottom 99 percent), for two years.
The economics are clear:
First, the top 1 percent spends a much smaller proportion of their income than everyone else, so there’s very little economic stimulus at these lofty heights.
On the other hand, giving the top 1 percent a two-year extension would cost the Treasury $130 billion over two years, thereby blowing a giant hole in efforts to get the deficit under control.
Alternatively, $130 billion would be enough to rehire every teacher, firefighter, and police officer laid off over the last two years and save the jobs of all of them now on the chopping block. Not only are these people critical to our security and the future of our children but, unlike the top 1 percent, they could be expected to spend all of their earnings and thereby stimulate the economy.
Conservative supply-siders who argue the top 1 percent will stop working as hard if they have to return to the 39 percent marginal rate of the Clinton years must be smoking something (probably an expensive grade).
Their incomes of the top are already soaring (Wall Street is reading a 5% boost in bonuses, executive salaries and perks are back on the trajectory they were on before the collapse, and the stock market is booming), so it’s hard to argue much hardship.
Besides, only earnings over $500,000 would be affected because — remember — we’re talking about the marginal tax rate.
In addition, the Clinton years weren’t exactly bad years, economically, for the top 1 percent.
Finally, the Bush tax cuts didn’t trickle down anyway. To the contrary, between 2001 and 2007, the median wage dropped. And Bush’s record on jobs was pitiful.
The politics are even clearer. Over the next two years, Obama must clarify for the nation whose side he’s on and whose side his Republican opponents are on. What better issue to begin with than this one?
The top 1 percent now takes in almost a quarter of all national income (up from 9 percent in the late 1970s), and its political power is evident in everything from hedge-fund and private-equity fund managers who can treat their incomes as capital gains (subject to a 15 percent tax) to multi-million dollar home interest deductions on executive mansions.
If the President can’t or won’t take a stand now — when he still has a chance to prevail in the upcoming lame-duck Congress — when will he ever?
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107 Comments so far
Show Allmr. reich, the shame is on you. when are YOU going to stand up and say, "i'm joining the socialist or communist party"?
You mean he hasn't?
if you're gonna be an effective shill, at least you will need a decent sense of humor.
Are you accusing Reich of being a shill? For what? For whom? Mr. Reich, unlike the talking boobs on the right, speaks with intelligence, data, and facts. I'm not getting your point or am I missing something only lost on internet typing?
By the way, like Bernie Sanders, I am PROUD to consider myself a Democratic Socialist. That breaks down as: FOR PEOPLE/AGAINST CORPORATIONS and Oligarchy.
http://www.dsausa.org/pdf/widemsoc.pdf
Take it easy, K.
Curioussteve is merely referencing Horace. (He meant, 'troll' not 'shill' - although they are basically the same thing.)
A shill is some one who purports to be speaking the truth, when he in fact is speaking some one else's truth: like some one who's driving up the price of an item at an auction for some one stands to gain. A troll is a nasty little monster lurking under bridges who jumps out and eats people.Have you tried "asshole?"
Branding Obama's regressive agenda the NEW STEAL tells the whole story.
What part of NEW STEAL doesn't Reich understand ?
ALL bush tax cuts need to end on 1/1/11. The amount that 98% of Americans save from the tax cuts is more than offset by the loss of services caused by the tax cuts.
Preserving any of the Bush tax cuts lends credence to and is tacit approval of the Bush Regime's legacy...a legacy that needs to be abandoned ASAP if the US has any hope of ever gaining a progressive footing.
To comment on Bernie Sanders.
Just so I don't have to continually make this point in my following remarks, yes, I'm aware that Bernie Sanders is an Independent, not a Democrat, but that he caucuses with Democrats.
Bernie Sanders is indeed better than most as a Senator, however with a huge caveat.
Bernie Sanders has defended Harry Reid's use of the procedural filibuster, which in effect has extended the power of the Republicans in concert with the Conservative Democrats.
Bernie Sanders has defended such use of the procedural filibuster countless times on Thom Hartmann's Breakfast with Bernie shows on Fridays.
Bernie Sanders also, on many occasions defended, quite energetically in fact, Pelosi's decision to take "impeachment off of the table".
When it comes down to it, Bernie Sanders defers to the larger corporate construct, so to speak, of the current ethically compromised Democratic Party.
(to the career Democratic Party apologists no, I'm not by exclusion arguing that Democrats are worse than Republicans)
horace is a boring shill.
Two questions:
What is the power in saying one is for people/against corporations?
What is the value of being proud to wear a certain label?
DSA does a great job of promoting personal positions on issues, as beliefs, and in providing a label that people are proud to wear - declaring all of the correct positions on all of the issues - but then when election time rolls around they endorse the Democrats - "lesser of two evils, a strategic vote, the best we can do until the revolution comes, meanwhile we will keep working to get more people to join our team and wear our label and to change people's beliefs."
In other words, in practical political effect the DSA is absolutely no different than any other liberal group - PDA, DFA, Moveon, the Democratic party, progressives etc., etc., etc. The only differences are in professed personal individual beliefs - a completely meaningless and powerless idea that belongs in religion and not in politics - and the label, presumed to be a form of self-expression that is more akin to consumer product loyalty than it is to any genuine political stand.
There are no prizes in politics for being "right" - for having the right beliefs and wearing the right label. Politics is not about personal belief systems at all, it is not shopping and it is not religion.
The various liberal and progressive organizations are little more than fashion statements for those disengaged from he struggle and first and foremost dedicated to protecting and preserving the gentrified group of professional people called the "middle class." Whatever the professed personal beliefs may be, or the "positions on issues," the program, the agenda is to suppress the radical Left and to protect the house slaves.
The DSA says "let's not get too radical. We can put our beliefs into place by working the same old failed liberal agenda - changing people's beliefs and working within the system. Once we have converted everyone over to believe in Socialism, then we can elect Socialists and then we will have Socialism."
This causes a lot of confusion. It offers something that is very attractive to certain people - the illusion that they can keep the system and yet radically change the system - that there need be no risk, no pain, no struggle. They can keep their status and position and relative ease and conformist, yet "be for" all of the "right things." They can be radical, and bourgeois at the same time.
Obama claims to "share our values" and to "believe" in all of the right things, but then says that it is not "practical" or "realistic" to act on those values or beliefs right now, or very aggressively, presumably because not enough people share our beliefs and values. For proof of that, we are told "OMG! Look at those tea party people!!" The DSA is saying the exact same thing, and it has the exact same practical political effect. The idea that politics is about personal beliefs operates to completely separate what a person supposedly "is" from what the person actually does. "Look at my label and look at my beliefs! Don't look at what I am actually doing, what I am actually advancing!" In that way, upscale professional people are free to use the system to advance themselves and to enjoy status and privilege, yet assuage their guilt about that. They can say they "believe" in helping the poor and be done with the issue.
DSA represents the ultimate guilt relief for people, for a select and enlightened few. The more "radical" the beliefs are that people express, the smaller the faction is and will remain, the less power and relevance the faction will have. This is the trap of liberalism - the more it is applied the fewer people it has relevance for. It is not that the beliefs of the DSA are wrong, rather approaching politics as a matter of personal beliefs is itself reactionary, the most effective and powerful way to suppress the Left. Some of the most aggressive attacks on the Left online come from DSA members. That is a paradox that illustrates that politics is about conditions, not beliefs, about the struggle for resources in objective reality, not a battle over internal personal emotional states or beliefs. To see politics as internal and subjective is to side with the ruling class, to be able to take the position of the ruling class while disguising that fact.
This is not to say that any DSA members are bad or wrong, nor that there is anything wrong with the positions the DSA takes. Rather, I am questioning the power and effectiveness of the political approach being taken.
A little historical perspective for thought:
Martin Luther King, Jr. said:
"Never forget that everything Hitler did in Germany was legal."
He also said:
“In the End, we will remember not the words of our enemies, but the silence of our friends.”
The Declaration of Independence states:
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.
He hates us for our freedom.
...or Green or Progressive.
What an absolutely stupid thing to say! Republican moles are very obvious with their stupidity
You need to think things out. This has nothing to do with being anything except for the people.
OBamas whole story is cave-in!
I'm sick to death of it. The democRATs are RATS and the RepubliCONs are CON artists. In the meantime, the poor and working classes get the shaft. This country is slowly dieing because of these spineless criminal traitors. I never supported Obama because I got the impression that he gave good speeches, but lacked common sense and experience. I was right on target! This is why I would of preferred Hillary. At least I would know I was getting screwed!
I say Hillary only because Dennis Kucinich was my preference; however, the corporations and media picked the winner long before anyone voted.
In 2008, Obama promised to filibuster telecom immunity in the senate. Then in July 2008, senator Obama voted against the filibuster and then voted for telecom immunity. In September 2008, Obama immediately supported the Bush Wall Street bailout.
Obama supporters knew what they were getting, the just wanted to dream otherwise - cognitive dissonance.
Hillary would have continued Bush policies also - she is no different from Condi Rice at State.
Democrats have always killed progressive reform:
http://counterpunch.org/connolly10292010.html
Thanks, egg.
Walter Karp's book, "Indispensible Enemies" (©1993), upon which this article is based, is quite prescient.
FEINGOLD-KUCINICH 2012...or KUCINICH-GRAYSON...or FEINGOLD-GRAYSON...or GRAYSON-DEAN ...or any combination thereof...just some leaders with a conscience and a pair of you know what!!!!
An essential component of the two-party addiction is to offer new candidates. Really depressing. Embarrassing too.
Well said. sherry.
In my short meandering through the Common Dreams field of dreams this morning, I came across more cases of addiction that you referred to. I hadn't intended on responding to your post, as it is self-evident, but decided to come back and add my agreement.
And you're right - it is depressing.
Any of the above. Wouldn't that be lovely!
When will he ever? Never. Obama accommodates institutional power. He won't challenge the stranglehold the plutocrats have over the people because he doesn't believe in doing so. He yearns to be one of them.
Bono can be his model. Bono struts around now like some global elitist. Funny how people almost always sell-out to Power and the powers-that-be.
Robert Reich secretary of labor under President Bill Clinton.
After Reagan/Papa Bush decimated the National Labor Relations Board and weakened unions, what did Clinton/Reich do for labor?
When Reich found that he couldn't budge the Clinton administration off it's right wing path he quit.
On the day the loch ness monster and big foot, both male, are united in holy matrimony in a ceremony to be performed in hell, reception following at the Hades ice skating rink, refreshments provided by the Fountain of Youth.
Dream on Mr. Reich.
I believe the loch ness monster - often referred to as "Nessie" is considered female by the locals.
Actually transexual
Obama believes in "Can`t we just all get along" nonsense. His opposition has vowed to do whatever they need to on order to bring him down and are doing a good job of that. It appears he wants to bring himself down by refusing to fight for what is necessary to keep our country going. Getting along is fine, but first we need to correct this business of the rich and powerful taking all they can grab while the rest of the country is falling off the cliff.
I don't mean any offense, but honestly, given the tenor of your comment, you seem to still believe Obama has some unused capacity to fight the good fight. He hasn't the intent to fight the good fight in the first place. He is all about helping "the rich and powerful taking all they can grab while the rest of the country is falling off the cliff."
Call me a cynic, but the evidence (i.e. his first 2 years in office, and his record as Senator) speaks for itself.
If they are serious about the deficit, they shouldn't be extending ANY of Bush's tax cuts. Since we are even haggling about this, its clear they aren't serious about the deficit.
"...its clear they aren't serious about the deficit."
All this talk of Austerity is a convenient tool to keep any kind of Keynesian governmental jobs-stimulus off the table.
Meanwhile, the Fed keeps 'printing' dollars (QE2), the banks keep hoarding the money (at near zero percent interest), while the infrastructure continues to crumble, and we piss off the BRIC nations (Brazil, Russia, India, China) as the American oligarchy continues to dangerously 'toy' with the global economy.
(This is the same kind of pattern that has produced two major world wars in the not-so-distant past.)
The "cave-in" is part of the show, Dr. Reich, haven't you figured that out yet?
Even efforts to conceal the Bipartisan Consensus are becoming more pathetic than ever.
After all, these f-ers and their Corporate/Bankster Mafia puppet-masters own the f-in place and they don't give a f#$k about us.
And what's more there is NOTHING WE CAN DO about it. and they know it.
There is only one thing that can be done but merkans are not ready yet. Things will have to get much much worse before they even begin to get better
http://www.commondreams.org/view/2010/03/07-7
The trouble with Obama is not that he's a politician, it's that he's a mere politician.
But then, it's very hard to think of any other of the current crop who would merit inclusion in a newly extended version of Kennedy/Sorenson's Profiles In Courage.
Ya seen one gutless wonder, you seen 'em all.
Gutless, spineless, cave-in etc. is simply inaccurate to describe these political whores. This is part of the plan. Quite the contrary it takes a lot of nerve to tell 100s of millions of people bald-faced lies day after day.
These f-ers have a lot of backbone to steal our money and give it to the Banksters and Corporate Mafia while lying about it the whole time. Hasn't the act become transparent by now? Can we not see behind the curtain at who pulls the strings? All one need to is look backstage to see that this show is a phony sham.
They don't need much backbone since we offer so little resistance.
You mean the folks who voted for and continue to support Obama and the D party? That's right, however look around, that aint everyone on the so-called progressive spectrum. Just cause you don't see it on TV don't mean it don't exist.
I hope everyone has notice that Oilybomber and Hillary have a difficult time pronouncing even one word at a time.
This seems to me to be the direct result of knowingly lying almost all the time.
Exactly Glenn, it takes a lot of effort and personal motivation to lie and convince oneself of the previous lies, so that the current and future lies do not contradict themselves. And of course much of it is contradictory but the Corporate Media does their job to spin it and then divert attention elsewhere.
First Mr. Reich, a major architect during the Clinton years of the disappearance of the middle class (no I'm not blaming the whole thing on Clinton so spare me please) writes…
"The President says a Republican proposal to extend the Bush tax cuts to everyone for two years is a “basis for conversation.” I hope this doesn’t mean another Obama cave-in. "
Then, Mr. Reich lays out a blueprint for, and in fact advocates that very thing – "another Obama cave-in."
I would just point out, it's not in reality a cave-in. For this seeming capitulation to rank as a cave-in, then Oilbomber, the Consummate Con Man, would have had to really want to let the Bush tax cuts expire for those making over 250,000 a year, in the first place.
The fact that Oilbomber, directed Harry Reid and Nancy Pelosi to delay taking up votes on any bill to do such, until after the election is all we need to know about the intent of Oilbomber.
Is it just me or is this author getting out of touch? What percentage of EMPLOYED Americans can make anywhere close to $100,000 a year let alone $250,000 in this bloody Depression? Most married couples couldn't make 100k together in any given year.
P.S.: If Ralph Nader or anyone like him wants to run for president, please start now ! I don't want to hear another stupid "compromise" or someone blathering about what Obama should offer as a "compromise". Democratic Primary or General Election, get us a strong progressive to lead please !
Hasn't Nader taken enough abuse already? And what could he accomplish with this Congress? Time to save ourselves rather than asking someone else to do it.
As far as someone "like him" ---- good luck with that.
We need a party before we get candidates.
Nader may not have won but the only abuse he took was from the Democratic Party people asking him not to run and then blaming him for everything. That shouldn't stop him or anyone like him for running. I agree that Congress may not budge to his liking but he can put them to shame. We already do our part to save ourselves but happens when pols keep working against us? You see, that's the difference with the USA and Europe. In Europe, I hear they take their pols to task for working against them but we Americans keep blaming ourselves. Where or when does it end? Do we Americans not have any good confidence at anything anymore?
He came bearing a smile,ah,it were stictly for guile.
He came with a bucket called hopes but said :gotcha" and called all dopes.
He railed for change and did,for once,all have-nots to poor house he did arrange.
Axlerod talks political reality; is this not hilarity?
The dims will move to the right and may they move into the night.
This ditty is short as I have no stomach for any more retort. Tony
thank you. you're a better poet than most "erudite" ones.
Thank you!! Tony
I'm beginning the plans for relocating to a Hooverville near me in the not-to-distant future. It's clear we're just repeating history.
an obamaville?
Yes, Mr. Reich, this will be another cave in (if it isn't already); and no, Mr. Reich, Barry doesn't need "to acknowledge the Republican sweep on Election Day."
Instead of his weakling, conciliatory posture of the past two years, he needs to "buck up" and assert his power as president. Barry needs to grow a pair and tell the reactionary thugs in Congress and the military industrial kkkomplex that any departure from a progressive agenda will be vetoed.
End the war, end taxcuts for the rich, bring Amerikkkan jobs home and prosecute the war criminals and torturers NOW!
If Barry does these things during the next two years, he will be re-elected in a landslide vote.