In an essay at Huffington Post, “Progressives and the Deficit,” Robert Creamer warns, “It would be easy for Progressives to fumble the growing debate on the federal deficit.”
He writes, “Austerity for seniors, cuts in education spending, reductions in spending on infrastructure — these are not long term solutions to America’s fiscal woes. They will make matters worse.”
Creamer gives six rules for how Progressives should approach the issue of the deficit:
- Progressives should make it completely clear that we share the view that long-term deficits must be brought under control — the real question is how. There are a number of fiscal glide paths that reduce federal deficits over the long run.
- We must insist that each of the alternative paths to reduce the deficit be evaluated using one key measure: How will it affect our success at creating widely shared economic growth?
- In the short term — in order to dig our way out of the economic catastrophe that Bush and his friends on Wall Street left us — America needs more spending on jobs and economic growth. We need an expansionary economic policy now in order to jumpstart long-term growth for the future. …. The Great Depression did not really finally end until Emperor Hirohito’s bombing of Pearl Harbor gave American politicians the will to spend at levels that had previously been unheard in order win World War II.
- The current push by Wall Street fiscal hawks to cut the long-term deficit by reducing payments to retirees on Social Security, or cutting back on critical programs like education, don’t meet that test. … Cutting Social Security payments does nothing but diminish the wide distribution of income that is essential to sustain long-term growth. … In 1969, the U.S. per capita Gross Domestic Product (our nation’s output of goods and services per person) was $20,994. Adjusted for inflation it had more than doubled by 2009 to $41,646. … The problem is that the wealthiest people in America have kept a substantial portion of that income gain for themselves.
- We must always insist that whatever economic path is taken to assure long-term fiscal soundness in the future meets the test — will it stimulate widely shared long-term economic growth? To assure we meet this test, we must eliminate the confusion between investment and consumption in our federal budget. … It has to change if there is to be a political incentive to spend more federal dollars on investment in future economic growth.
- Stay on the offensive. … The Pete Peterson’s of the world have geared up to use the new Presidential Fiscal Commission as a soapbox to promote their pro-Wall Street views that attempt to paint “greedy seniors” and out of control “entitlements” as the villains of the fiscal drama. We can’t cede any ground on this issue.
Creamer writes, “The tiny plutocracy that sopped up most of our economic growth for the last decade and gambled recklessly on Wall Street are the true villains of the piece. They are the same people who insisted on the massive Bush tax cuts for the rich and a tax code where hedge fund managers who literally make hundreds of millions of dollars each year pay taxes at a lower rate than the janitors who sweep their floors.”
Written by Mike Bock





















