Obama’s State of the Corporate Union
by BAR executive editor Glen Ford
President Obama’s State of the Union address makes it official: the 2012 election has brought us back to 2011, when the outlines of his grand bargain with the Republicans became clear. In his vision for future, “austerity in people’s programs is traded for tax breaks for corporations that will, in totally discredited theory, bring back the jobs they had outsourced overseas.”
Obama’s State of the Corporate Union
by BAR executive editor Glen Ford
“He constructs a phony trade-off for children, the poor and the elderly.”
It was an impassioned performance by a cynical politician who offers little but corporate tax incentives and continued austerity. Barack Obama peppered his State of the Union address with up-tempo buzzwords about illusory “progress,” but the president’s substantive message was that he is determined to complete the austerity bargain he struck with the Republicans in 2011. Thus, it is a sign of “progress” that “we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances” – meaning, he will collaborate with the GOP in cutting almost $2 trillion more.
The big cuts will come from those programs that enjoy overwhelming support among Americans. He claims to be with them in spirit while opposing them in practice. “Those of us who care deeply about programs like Medicare must embrace the need for modest reforms – otherwise, our retirement programs will crowd out the investments we need for our children, and jeopardize the promise of a secure retirement for future generations.” His reasoning is identical to the Republicans, who say these programs must be bled, or die.
Obama created the model to gut entitlements through his Simpson/Bowles Deficit Reduction Commission, appointed well before the GOP took control of the House. Now he pretends that the cuts have been forced upon him, but that he will acquiesce in the spirit of compromise. “On Medicare, I’m prepared to enact reforms that will achieve the same amount of health care savings by the beginning of the next decade as the reforms proposed by the bipartisan Simpson-Bowles commission.”
“He pretends that the cuts have been forced upon him, but that he will acquiesce in the spirit of compromise.”
He constructs a phony trade-off for children, the poor and the elderly. “Why would we choose to make deeper cuts to education and Medicare just to protect special interest tax breaks? How is that fair?” he asks, rhetorically. The cuts must come, but in return Obama will revise the tax code “that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that create jobs right here in America.”
This is the double-whammy. Austerity in people’s programs is traded for tax breaks for corporations that will, in totally discredited theory, bring back the jobs they had outsourced overseas. But don’t complain, says Obama. “None of us will get 100 percent of what we want.” And most of us will get the shaft.
Obama’s jobs program is almost entirely a corporate tax incentive scheme, to bribe corporations to send home the jobs they sent offshore, where they have also hidden tens of trillions from taxation – a subject not deemed worthy of mention in a national discussion of shared sacrifice and patriotic obligations.
The military-industrial complex will make “America a magnet for new jobs and manufacturing,” says the president. Fifteen manufacturing “hubs” will be built around businesses that “partner with the Departments of Defense and Energy to turn regions left behind by globalization into global centers of high-tech jobs.” You can bet there are huge corporate subsidies involved, through negative taxation.
Obama will repair America’s infrastructure through a “Fix-It-First” program that nobody has ever heard of before, and has no price tag – which means it doesn’t exist in anything more than rhetorical form. And his “Partnership to Rebuild America” proposal to upgrade private infrastructure – oil and gas pipelines, ports and the power grid – almost certainly involves corporate subsidies, or else why wouldn’t the private sector be repairing its own properties, already?
“Obama’s jobs program is almost entirely a corporate tax incentive scheme, to bribe corporations to send home the jobs they sent offshore.”
Those business incentives just keep on coming. All one need to qualify is say the word “jobs” – but don’t you dare say “public works.” The Corporate-Subsidizer-In-Chief says: “Let’s offer incentives to companies that hire Americans who’ve got what it takes to fill that job opening, but have been out of work so long that no one will give them a chance. Let’s put people back to work rebuilding vacant homes in run-down neighborhoods.” Obama says he will “partner with 20 of the hardest-hit towns in America to get these communities back on their feet.” How will that get done? By offering “new tax credits to businesses that hire and invest.” Obama can do a passable Al Green, but when it comes to public policy in 2013, he sings only one song: tax schemes for business. And he stole that tune from the GOP.
Obama’s Black boosters will no doubt point to the president’s concern for the “hardest hit” to conclude that he is now open to targeted aid to the those communities that have been most devastated. Not so. He is simply open to aiding corporations under any all circumstances. His administration failed to spend almost all of $7.6 billion set aside by Congress for a Hardest Hit Fund, to aid communities hurt worst by the housing collapse. Hard-hit people don’t get special attention from this administration; well-off corporations do.
During his 2008 campaign, Obama vowed to raise the minimum wage to $9.50 an hour by 2011. He must have thought no one was listening, because he didn’t mention the subject for the next four years. Now, in 2013, he promises to fight for a $9.00 minimum – 50 cents an hour less. And he didn’t even apologize to the nation, Tuesday night, for reneging during his first term.
“Hard-hit people don’t get special attention from this administration; well-off corporations do.”
“Race to the Top,” Obama’s signature program to privatize education through withholding of funds to states that fail to establish an alternative charter system and transform teachers into temporary workers, is set for a great corporate leap forward. States that craft their curriculums to suit corporate priorities will get additional funding; those that do not, will be punished. “We’ll reward schools that develop new partnerships with colleges and employers, and create classes that focus on science, technology, engineering, and math – the skills today’s employers are looking for to fill jobs right now and in the future.” Obama is an education gangster, hired muscle for the corporate class.
It is fitting that Obama, who has made it possible for all of us to experience the First Black U.S. Presidency, will enhance the experience of choosing between corporate Democrats and corporate Republicans: “I’m announcing a non-partisan commission to improve the voting experience in America. And I’m asking two long-time experts in the field, who’ve recently served as the top attorneys for my campaign and for Governor Romney’s campaign, to lead it.”
We discovered during the presidential debates that there was very little that separated the two contenders. The Republican and Democratic experts should have no problem finding a mutual electoral comfort zone.
BAR executive editor Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com.