Category: Capitalism and Economy

San José, CA – At midnight on Oct. 1, the federal government began a partial shutdown. Later that morning, hundreds of thousands of federal workers showed up to wind up work – putting up closed signs at national parks and monuments across the country and updating web pages saying that many functions were no longer available. Then they went home for an indefinite furlough without pay.

Behind the partial shutdown of the federal government was the leadership of the House Republicans, who followed the lead of their right-wing Tea Party congress people. They needed to pass a bill to continue funding the government, since no budget for the 2014 Fiscal Year, which began Oct. 1, had passed. Instead, the House Republicans insisted on using the threat of a government shutdown to get what they wanted, which was to derail the Affordable Care Act, commonly known as Obamacare, even though the Senate, the president and the Supreme Court were against them.

The House Republicans’ willingness to seemingly burn down their own house to rid it of what they saw as vermin (Obamacare), is not only extremism, but also comes from their right-wing view of the government. It was under the Reagan presidency in the 1980s that the term “Starving the beast” arose, as right-wingers targeted the federal government as a “beast” for its social-welfare functions, wanting to pare down the role of the government to basically prisons to protect property rights of the rich and the military to maintain the empire.

Looking at a list of how agencies are being hit by the partial government shutdown, it is clear that many of the programs that the right wing hates will be hardest hit. Among the departments with the highest percentage of furloughed workers are the Department of Education (95%), Housing and Urban Development or HUD (95%), the Environmental Protection Agency or EPA (90%), and the Department of Labor (80%).

On the other hand, the Department of Homeland Security, which includes the Immigration and Customs Enforcement or ICE, has only 15% furloughs, so one can expect the record deportations to continue. The Department of Justice, which includes the FBI, also has only a 15% furlough, so no let-up in spying and harassments of Muslim Americans, Arab Americans and anti-war and international solidarity activists is in sight.

While the House Republicans say that they are targeting Obamacare, by and large the rollout of the Affordable Care Act set for October 1 was unaffected. While there were long waits for web sites to load and phones to get answered, this was largely because nearly 3 million people flocked to the U.S. government web site www.healthcare.gov and more went to state web sites such as www.coverca.gov in California.

In contrast, Senate Democrats and the Obama administration value the role of the government, both to subsidize big corporations (as Obamacare does with big health insurance companies) and to maintain social peace through social welfare programs such as Social Security and Medicare. But they also support the military and policing functions of the government, as seen in the Obama administration’s attempt to unleash a military attack on Syria and the FBI coordination of local police efforts to smash the Occupy movements.

San José, CA – At midnight on Oct. 1, the federal government began a partial shutdown. Later that morning, hundreds of thousands of federal workers showed up to wind up work – putting up closed signs at national parks and monuments across the country and updating web pages saying that many functions were no longer available. Then they went home for an indefinite furlough without pay.

Behind the partial shutdown of the federal government was the leadership of the House Republicans, who followed the lead of their right-wing Tea Party congress people. They needed to pass a bill to continue funding the government, since no budget for the 2014 Fiscal Year, which began Oct. 1, had passed. Instead, the House Republicans insisted on using the threat of a government shutdown to get what they wanted, which was to derail the Affordable Care Act, commonly known as Obamacare, even though the Senate, the president and the Supreme Court were against them.

The House Republicans’ willingness to seemingly burn down their own house to rid it of what they saw as vermin (Obamacare), is not only extremism, but also comes from their right-wing view of the government. It was under the Reagan presidency in the 1980s that the term “Starving the beast” arose, as right-wingers targeted the federal government as a “beast” for its social-welfare functions, wanting to pare down the role of the government to basically prisons to protect property rights of the rich and the military to maintain the empire.

Looking at a list of how agencies are being hit by the partial government shutdown, it is clear that many of the programs that the right wing hates will be hardest hit. Among the departments with the highest percentage of furloughed workers are the Department of Education (95%), Housing and Urban Development or HUD (95%), the Environmental Protection Agency or EPA (90%), and the Department of Labor (80%).

On the other hand, the Department of Homeland Security, which includes the Immigration and Customs Enforcement or ICE, has only 15% furloughs, so one can expect the record deportations to continue. The Department of Justice, which includes the FBI, also has only a 15% furlough, so no let-up in spying and harassments of Muslim Americans, Arab Americans and anti-war and international solidarity activists is in sight.

While the House Republicans say that they are targeting Obamacare, by and large the rollout of the Affordable Care Act set for October 1 was unaffected. While there were long waits for web sites to load and phones to get answered, this was largely because nearly 3 million people flocked to the U.S. government web site www.healthcare.gov and more went to state web sites such as www.coverca.gov in California.

In contrast, Senate Democrats and the Obama administration value the role of the government, both to subsidize big corporations (as Obamacare does with big health insurance companies) and to maintain social peace through social welfare programs such as Social Security and Medicare. But they also support the military and policing functions of the government, as seen in the Obama administration’s attempt to unleash a military attack on Syria and the FBI coordination of local police efforts to smash the Occupy movements.

San José, CA — On Sept. 29, the House Republicans passed a temporary spending bill for ten weeks, starting Oct. 1 if the Affordable Care Act (often called Obamacare) is delayed for a year. With the Democrat-controlled Senate already having turned down similar measures and a veto promise from President Obama, the federal government is headed for its first shut down since 1996.

This so-called shutdown would not actually shut down the federal government. Social Security checks would continue to go out, mail will be delivered, and other “essential” services would continue. Ironically, this includes most of the funding for the Affordable Care Act, which like Medicare and Medicaid, is considered an essential service.

But without any spending authorization for Fiscal Year 2014, which starts Oct. 1, “non-essential” federal services will shut down. This would include the closing of about 400 National Parks, monuments and museums. Social Security applications, the passport office, Small Business Administration loans, mortgage guarantees from the Federal Housing Authority (FHA), could all be stopped in their tracks. Up to 800,000 federal workers, or 40% of the federal government workforce, could be furloughed without pay.

There could be a larger economic impact of a loss of up to 1.4% of Gross Domestic Product, which measures the output of goods and services in the U.S. With the U.S. economy only growing at a 1.8% rate in the first half of this past year, this could put the economy close to tipping into another recession.

Even worse, the House Republicans are vowing to repeat this later in October when the federal government hits its borrowing limit. If the House Republicans refuse to raise the debt limit, the federal government will not have enough cash to make good on its promises to pay. If the federal government does not pay interest on the federal debt or pay for its bonds that come due, this would be a debt default that would echo through the entire world economy, as the rest of the world holds more than $5 trillion of U.S. government bonds, which could drop in price, sending interest rates up.

Newark, NJ – The People’s Organization for Progress (POP) put a Hands off Social Security picket line in front of the Essex County Social Security building, April 16. Hundreds of drivers blew horns. Passersby stop to talk and show solidarity. Other participating organizations included the International Action Center, One People One Nation, Veterans for Peace and the Coalition to Save Our Homes.

The protest was in response the Obama administration’s proposed cuts in cost of living adjustments for Social Security. A new “chained Consumer Price Index” would replace the established CPI with a lower percentage. The expectation is that Social Security outlays would be reduced by several hundred billion dollars over the next ten years. It is another proposal to support Wall Street profit demands by plundering the living standards of the masses.

That a Democratic administration would propose such a thing has caused widespread shock. The impact would be far broader than senior citizens, since families and dependents are also supported by Social Security. The protest showed that neither POP nor the other organizations nor the masses will have any of it. Wall Street’s attack on Social Security must be stopped.