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How lion-like the Democrats sound as they circle around Social Security, roaring their defiance! After years of servility some of them even dare to shake their fists at Alan Greenspan and hurl insults at the man.
CounterPunch
March 19 / 20, 2005
 http://www.counterpunch.org/


When the chairman of the Federal Reserve put in a decorous word for Social Security "reform" last month, House minority leader Harry Reid of Nevada made so bold as to call Greenspan a "hack". Paul Krugman, who primly chastised Ralph Nader back in 2000 for wanting to "re-educate" Greenspan, now pelts the chairman with rotten cabbages on an almost weekly basis in his New York Times column.

Presumably enough Democrats realize that if they can't be seen as putting up a fight on Social Security, then the last supposed major reason for anyone to support their party will have disappeared. (To anyone claiming choice to have an abortion is as powerful a reason, I offer the obvious, which is that the Republicans will never formally move to rescind the legality of abortions. They will merely continue in the enterprise, in which countless Democrats have colluded, of making it harder and harder for poor women to get one.)

The etiquette of substantive one-party rule in America requires us to overlook the facts that the preliminary salvoes advertising the need for "reform" were launched by the late Daniel Patrick Moynihan and that under Bill Clinton social security privatization was so far advanced that the secret team under the supervision of assistant Treasury Secretary Lawrence Summers was discussing how to number the individual retirement accounts. Fortunately Monica Lewinsky caught Clinton's eye and before long he had impeachment and the need for liberal support at the front of his mind.

So the Democrats get to boast in the midterm elections next year that they fought Bush to a standstill on the key plank in the president's domestic agenda. Meanwhile the Republicans, many of whom have no desire to have Social Security reform hung round their necks, roll two long cherished bills through Congress, both with crucial Democratic support.

Near the end of February many Democrats in the House okayed a Republican bill to transfer large class action suits from state to federal courts. It's the state courts that have awarded the big settlements against the tobacco and asbestos companies. Federal judges have consistently cut back the big awards. Transfer of the suits is a huge victory for the business lobby. Earlier in February the Senate passed the same bill 72 to 26. Among Democrats voting for a bill written by the Chamber of Commerce and National Association of Manufacturers were such supposed bright hopes as Obama of Illinois, Salazar of Colorado, Bayh of Indiana, along with possible aspirants for the 2008 nomination as Dodd of Connecticut.

Then in early March no less than 18 Democratic senators joined the Republicans in voting through a bill the banks and credit card companies have touting for years, a rewrite of the bankruptcy laws to mandate lifetime debt peonage for ordinary Americans. The House will soon follow suit.

The bill just passed by the Senate will require many people filing for bankruptcy court protection to repay a portion of their debt under Chapter 13 of the bankruptcy code rather than allowing them to wipe most of it out under Chapter 7. I've seen estimates that this change could force 30,000 to 100,000 additional filers a year into Chapter 13.

Maybe we should multiply those numbers. Many Americans have virtually no leeway on their monthly budgets. A co-pay on some relatively minor health emergency sends them scrambling to the loanshops. If interest rates start to move upwards many households on flexible mortgage rates will default, and plummet into bankruptcy and debt peonage for the rest of their lives.

If the current trend among countries such as China, Japan and India to reduce their dollar holdings continues, the dollar's status will plummet, and eventually its role as the world's reserve currency will come to an end. No longer will the Asian nations subsidize America's debt, and in consequence the cost of living for ordinary Americans will start to soar, pushing even more over the edge.

And as the dollar tumbles, so does one of the keystones of what in the 1950s used to be termed reverently, the American Way of Life, meaning in coarse material terms a civilization that guaranteed its middle class affordable higher education and the decent jobs consequent upon same.

But one-party America voted for those jobs to leave. All through the 1990s enough Democrats and Republicans voted for the free trade pacts and agreements that saw blue collar jobs and now white collar jobs flow south and east. The US Department of Labor reported in March that 373,000 discouraged college graduates dropped out of the labor force in February, a far higher number than the number of new jobs created.

"So far in the 21st century," Reagan's former assistant Treasury Secretary (and fierce Bush critic) Paul Craig Roberts writes on this website, "there is scant sign of the American 'new economy.' The promised knowledge-based jobs have not appeared. To the contrary, the Bureau of Labor Statistics reports a net loss of 221,000 jobs in six major engineering job classifications."

So it's fair to say this revamp of the bankruptcy laws is as sinister and menacing portent of the shape of things to come as would be the physical construction of a new debtors' prison for the middle classes in every American town to match the prisons for the poor already planted in the outback.

And as Jude Wanniski points out:

"To make it more difficult for households and businesses to declare bankruptcy to get relief from the deflation only will cause the national crime rate to rise more quickly and sharply. It of course will affect society in other ways, with an increase in the number of divorces and abortions that quickly add up when households are under this kind of economic stress."

What a dismal pass we have reached in one-party America. These days there are more auto manufacturing jobs in Ontario, Canada, than in Michigan, USA. Why? Canada has a national health plan. Tacitly and sometimes openly, both GM and Ford favor one here in the US, since health is the biggest item on their budgets. Both US senators from Michigan oppose a national health plan. Both are Democrats. That's the reality of one-party America.

The Republican Senate whip, Mitch McConnell and senior Republicans on the Hill have remarked gleefully that Bush's social security reform is like three-card monte. While the Democrats circle round in dramatic defensive postured round the old New Deal program, the Republicans drive through the corporate agenda on tort reform and bankruptcy and on drilling in the Arctic National Wildlife Reserve. Enough Democrats were with them on that too, with both Hawaiian senators, Inouye and Akaka, throwing their votes in the oil can as usual with the Alaska delegation.

And then in 2010 a Democrat can "fix" Social Security.

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Yellow Peril? Bullshit! 20.Mar.2005 02:13

.

"If the current trend among countries such as China, Japan and India to reduce their dollar holdings continues, the dollar's status will plummet, and eventually its role as the world's reserve currency will come to an end. No longer will the Asian nations subsidize America's debt, and in consequence the cost of living for ordinary Americans will start to soar, pushing even more over the edge."

We cannot blame the US cost of living on Asian repugnance or the "tumbling dollar".

This continent is still rich enough in renewable resources to give everyone
a clean safe job (perhaps more strenuous than playing Doom)
enough healthy food
better medical care
and a 'higher' education, too.

is that a wish, where are your sources 20.Mar.2005 08:35

nobody

What the heck are you talking about...renewable resources? Get a dose of reality man, we are spoiling this continent just like all of the others. We can't cut more trees or dig more coal and if we did we'd just spiral into global warming faster. The same goes for oil use. Even if Peak Oil was a farce it makes no difference to the global warming issues associated with burning the oil. We don't have jack in this country either.

exception to prove rule 20.Mar.2005 08:50

pleasantly surprised

Of course the system's broken. There is not much positive to say about the democratic wing of the capitalist party.
Earl Blumenauer represents most portland indy readers in congress. To my surprise and delight, he was one of only 43 democrats in the house to vote AGAINST sending another 81 billion dollars into the iraqi quagmire. Thanks Earl, you set a good example for your miserable cohort. May they learn something from you.

Earl Blumenauer is a good man 20.Mar.2005 09:26

PHH

If the rest of the Democrats were like him, it would be a decent party.

Blumenauer - good, but where is *he* *headed* - to Whitey House?? 20.Mar.2005 11:05

kilroy

the Corporate One-Party System is not a 'government' controlled by 'The People' -

yes, there are a ____handful____ of "good" people in Congress.

but a handful does not a *mandate*, *majority*, or *agenda* make.

and to assert that systemic-pressure-release-valves Blumenauer or Kucinich somehow represent - or EVER WILL represent - the Democrat, "opposition" party's primary agenda ???

pull the other one . . . where the hell were you during Skull & Bones Selection '04?

STILL UNIMPRESSED 20.Mar.2005 12:08

Progressive Democrat

I just read and commented to the story above this one about "Democrat puppet organizations" failing to support M19 demonstrations. And THIS -- this story about Social Security -- is Cockburn's BIG story on March 19/20 ????

It's interesting how Cockburn slyly undermines the pro-choice movement (second paragraph of the story, above) -- just as he slyly undermines the anti-war movement in his "Democrat puppet organizations" story.

I'm sorry, but I really do wonder why or how Counter Punch finds their party line (the "anti-Democrat Party") so profitable? Maybe the enemy of their enemy is their friend?

Still Unimpressed with "Progressive Democrat" 20.Mar.2005 19:14

huh

how exactly is it that Cockburn "undermines the pro-choice movement" -

when all he does is logically point out that it is not the legality of abortion procedures across the board at issue,

but THE ACCESS OF LOW INCOME NON-WHITE WOMEN TO THEM (which Democraps and Rethugs are equally to blame in rescinding).

a dose of reality, nobody 20.Mar.2005 23:57

.

the wealth of this continent
and that which we plunder from others
is not squandered on its citizens