US shutdown a smokescreen for assault on Social Security, Medicare

Greetings,

US shutdown a smokescreen for assault on Social Security, Medicare

By Barry Grey
3 October 2013

In an interview on day two of the partial shutdown of the US government, broadcast by the pro-business cable TV channel CNBC, President Barack Obama offered talks on cutting basic social programs such as Medicare and Social Security in return for Republican support for funding federal operations and raising the national debt ceiling.

Obama continued to reject any negotiations with House Republicans on a so-called “continuing resolution” to reopen the government that is tied to a delay in implementation of his health care overhaul. At the same time, he linked a “clean” funding bill to passage of legislation to raise the national debt ceiling before the current limit expires and the country goes into default, estimated by the Treasury Department for October 17.

Obama’s remarks added to mounting evidence that behind the appearance of partisan warfare in Washington, the two big business parties are planning to use a crisis produced by an extended government shutdown as a smokescreen for reaching a deal to impose historic attacks on the bedrock social programs left over from the New Deal and Great Society periods.

In the interview, Obama said he agreed on the need to continue eliminating “unnecessary” social programs and was ready to discuss cuts in “long-term entitlement spending.” He also said he would accept Republican demands that there be no increase in personal income tax rates.

“The Democrats have already said they are ready to reopen the government at funding levels the Republicans have set,” the president said. He was referring to the acceptance by Democrats in the House of Representatives of a funding level $42 billion lower than the previous Democratic proposal.

Obama also hinted that he was willing, as part of future budget talks, to accede to demands from Republicans, speaking on behalf of corporate interests, for changes in his Affordable Care Act, which was passed in 2010 and is slated to become largely operational in January. The implication was that he would consider proposals such as repealing a tax on the makers of medical devices and increasing the cutoff for full-time workers from 30 hours a week, thereby loosening requirements for employers to provide health care coverage for their workers.

Indicating the sweeping character of the budget deal Obama is seeking, he said he was prepared to negotiate “a whole range of issues” if and when Republican House Speaker John Boehner allows a vote to reopen the government without anti-Obamacare provisions and Republicans agree to raise the debt ceiling. He wanted, he declared, a budget “that enables us to deal with problems long-term.”

Later in the day, Obama met at the White House with top congressional leaders to discuss both the government shutdown and the debt ceiling. Present were Republican House Speaker Boehner, Republican Senate Minority Leader Mitch McConnell, Democratic House Minority Leader Nancy Pelosi and Democratic Senate Majority Leader Harry Reid. Prior to the meeting, both the White House and Republican leaders made clear they were not prepared to alter their positions in order to secure a quick reopening of the government.

It appeared the main purpose of the meeting was to set the groundwork for a government shutdown of at least one week, and more likely longer, and the merging of talks on reopening the government and the debt ceiling issue. Both sides emerged from the meeting blaming the other for refusing to negotiate.

Congressional Democrats and Republicans alike have indicated support for keeping the shutdown going—with all of its punishing consequences for working people—in order to bring the budget and debt ceiling deadlines together and pave the way for a so-called “grand bargain” on social cutbacks. “Either it’s resolved this week or the debt ceiling gets rolled into it,” said Senator Richard Burr (Republican of North Carolina)….more here

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