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February 17, 2005
A call to action
Proposals for cutting social programs have begun.
President Bush’s $26 trillion federal budget if approved
in its present form would make the deepest cuts in social programs
since the Reagan administration. And these cuts would be just
the beginning. Bush will have quite a challenge trying to bring
the budget in balance while cutting taxes at the same time.
When Bill Clinton finished his term in office in 2000 he had developed
a budget surplus of $236 billion. By the end of his first term
Bush had squandered the surplus and run up a deficit of $412 billion.
His new budget proposes to increase the deficit to $426 billion
in this fiscal year.
Some analysts assert that Bush’s budget is fraudulent because
it does not include all of the foreseeable expenditures. It does
not include the continuing cost of the wars in Afghanistan and
Iraq. It does not include the estimated cost of $754 billion over
five years to fund the cost of revamping social security. And
it does not take into account the $1.6 trillion in revenue that
will be lost over 10 years if the tax cuts become permanent.
Bush is not well regarded by foreign governments. His fiscal strategy
of building a large deficit is not being well received by foreign
banks. It has already caused the value of the dollar to drop relative
to euros and other foreign currencies. There is considerable pressure
to raise interest rates to compensate for the greater risk in
buying U.S. treasuries to finance the deficit.
Bush is the first president ever to reduce taxes while trying
to finance a war. His tax cut plan is consistent with the conservative
strategy to cut revenues so severely that non-essential government
services will have to be curtailed. Since those enjoying the substantial
tax cuts have no need for the safety net programs they would just
as soon see them eliminated. They consider the safety net programs
to be non-essential.
A proposed budget is rarely approved by Congress as presented.
Some cuts will be reinstated. In this budget it is unlikely that
the substantial cuts in farm subsidies and support for Amtrak
will survive. Too many politicians from red states will oppose
these reductions. Nonetheless, threatened cuts in programs such
as Medicaid should be taken very seriously.
In the past it has not been the practice of black leadership to
concern itself with many economic issues. Their primary concern
was always human rights and protection against racial discrimination.
Of course these matters often intersected with fiscal policy,
but black leaders seemed to steer away from economics and focus
on the civil rights aspects.
Now the agenda has changed for African Americans. While lawyers
and activists will have to continue to monitor civil rights issues,
the primary objective now is to build political power to influence
public policy and to build wealth. Black leaders have to organize
against the Bush budget proposals that are not in the best interest
of African Americans.
It is important to understand that the philosophy of government
of the Bush administration is at odds with that of most African
Americans. Blacks believe that government must be big enough to
assure that every citizen enjoys a reasonable standard of living.
The Bush “ownership” society believes that everyone
must depend only upon his own resources.
There are big battles looming ahead.
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