Selling Out America

kabukitheater.jpb_.jpegAs you know by now, the jobs crisis reality exploded Friday with only 18,000 jobs created for June and an even lower labor participation rate implying more people are falling out of the labor force count entirely.

While economists scream from the rooftops for policy to put America back to work, we have more debt ceiling games and calls for policy that will lose even more jobs.

The latest is Obama, as part of some debt ceiling negotiation offered to raise the age for Medicare. I kid you not.

According to five separate sources with knowledge of negotiations -- including both Republicans and Democrats -- the president offered an increase in the eligibility age for Medicare, from 65 to 67, in exchange for Republican movement on increasing tax revenues.

The proposal, as discussed, would not go into effect immediately, but rather would be implemented down the road (likely in 2013). The age at which people would be eligible for Medicare benefits would be raised incrementally, not in one fell swoop.

We all know Republicans cannot grasp basic economics, but Obama seems to be drunk with the same kool-aid (must be handed out in paper cups by the lobbyists & corporate donors).

Obama said this:

Foreign investors saying America has got its act together and are willing to invest. And so it can have a positive impact in overall growth and employment.

Uh, foreign investors have an opposite economic effect as Krugman pointed out. The last thing the United States needs is to increase the trade deficit.

As it is foreign investment is exceeds U.S. investment abroad:

The U.S. net international investment position at yearend 2010 was -$2,471.0 billion (preliminary), as the value of foreign investments in the United States continued to exceed the value of U.S. investments abroad. At yearend 2009, the U.S. net international investment position was -$2,396.4 billion.

The -$74.6 billion change in the U.S. net investment position from yearend 2009 to yearend 2010 primarily reflected net foreign acquisitions of financial assets in the United States that exceeded net U.S. acquisitions of financial assets abroad.

Even Time Magazine is calling out the GOP economic insanity:

The Republicans have pulled off a major (some would say cynical) miracle by convincing the majority of Americans that the way to jump-start the economy is to slash taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans. It's fun-house math that can't work.

Yet notes almost half of America buys into this nonsense. While Mother Jones asks for suggestions on how to stop economic insanity, this site says, improve your math skills. Thinking tax cuts does not mean more greedy, stinky money to the people who just offshore outsourced your job and instead somehow means you is simply delusional.

Bottom line, it seems the great debt ceiling crisis is being used as a Kabuki theater vehicle to attack Social Security and Medicare, by a Democratic administration no less.

 

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While Treasury Secretary Geithner goes on TV and claims Americans will be hurting for years, no one questions that hurt is caused by this administration's refusal to nationalize the banks, stimulate with direct jobs programs, confront China on currency manipulation, along with a host of other bad policies. Remember, Obama caved on repealing the Bush tax cuts during the lame duck session. World of hurt, hell yeah and unfortunately it's now becoming the Obama administration's own making.

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Comments

will someone not elect McConnell? Please?

Oh, who cares if the nation is in crisis, any crisis, we're not doing anything until Obama is gone. Mitch McConnell, Senate Minority Leader.

This typifies what is wrong with D.C.. either political agendas or corporate lobbyists wish lists.

Pathetic.

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It's amazing

Really good post. It's amazing how Osellout has shown he's no different than the plutocratic driven extreme Right..... cut spending, cut Social Security, cut Medicare - - - have to create Economic "Confidence" for those wealthy "job creators" is the storyline. He must sense that cushy, well-funded retirement is almost in his grasp if he plays ball and especially if he manages to get re-elected.
The outright cynicism and spin from these clowns would be hilarious if it weren't so harmful

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How to find affordable health insurance in your 50's and 60's

Dean Baker articulates the lunacy of raising the Medicare age. If anything, people over 60 should have the opportunity to buy into Medicare. How many people are going to die before they ever have a chance to get Medicare?

"Many struggle through their early and mid-60s, just hanging on until they reach age 65 and have the government pick up most of their health care costs through Medicare. Insurance for someone in their 60s with any moderately serious medical condition can easily be $20,000 or $30,000 a year."

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Yes both sides are to blame

Check out this video with a new protest song on the subject - it hits home:

Globalize

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Thanks

Great video! Well done, to the point.

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