Democrats may think they have won some historic battles (esp. healthcare), but they are losing the structural economic war.
The Republican STRUCTURAL PRIORITIES have won and continue to win: Unending and All-Pervasive War while tilting the system ever more to the interests of the Super-Wealthy and Behemoth Corporations.
And Democrats have allowed them to do it. Thinking in the short term, reacting to manufactured emergencies (Iraq, global economy meltdown), throwing money at macro-problems, Democrats have been the enablers of these massive structural Republican victories.
And it's happening again, right now...
Give and take compromise, my ass...
One diagram says all that needs to be said... Cui bono?
Democrats may think they are "getting something" in the present deal, or some form of it: 13 months of Unemployment Insurance Earned Income Credit, the Child Tax Credit, Tuition Credits... in essence temporary help for the needy and another chance at stimulus. If the economy recovers in the short-term, if unemployment goes down in the next year or so, then Democrats can tout the results of their record... or was it Bush's record?
But thinking LONG-TERM, STRUCTURALLY, and STRATEGICALLY (not just tactically), Democrats are going along with Republicans, DOUBLING DOWN on an increasingly regressive tax system by passing (even advertising) the "Bush tax cuts" as a magic formula for economic recovery. (They sure worked magic over the last nine years, didn't they?)
If that weren't bad enough, Democrats are helping to plant the seed of the New Deal's destruction (and their own) by going along with "temporary" (yeah, right!) cuts to Social Security income, in the process setting the Republicans up to tear it down.
DEMOCRATS, if you are going to compromise, compromise STRUCTURALLY AND STRATEGICALLY FOR THE LONG-TERM FUTURE.
By virtue of a clock running down, Democrats have a HUGE STRUCTURAL ADVANTAGE on Estate Taxes (going to 55% on estates over 1 million) and the Bush Tax Cuts (which would expire in full).
Obama's so-called compromise gave both of these structural advantages away in their entirety, getting NO STRUCTURAL GAINS in return, just more short-term, reactionary "help."
We don't need any more short-term, reactionary "help."
We don't need more money thrown at "the economy," disproportionately falling straight into the coffers of the super-wealthy.
We need to move NOW to recover an ECONOMIC STRUCTURE good for the poor and middle classes, and thus good for the country as a whole.
What if the Democrats rallied around just one damn good PROGRESSIVE STRUCTURAL IDEA?
Here are but a few that come to mind. Pick any one you like, or else something comparable.
1) an immediate and substantial increase in the minimum wage, returning it to a 1968 level (indexed for inflation) and indexing that level to inflation. That would be a huge economic stimulus, put money in poor people's pockets, help with the foreclosure crisis, and create lots of jobs because of increasing spending demand.
2) making FICA taxable above incomes of 102k. This could even be tied to the REPUBLICAN IDEA (now being sold as a Democratic idea) of a serious payroll tax rate decrease (from 6.2% to 4.2%, as proposed for the holiday idea) in such a way as NOT TO DEFUND AND JEOPARDIZE SOCIAL SECURITY. Lower the rate, decrease the amount for 80% of us, and make FICA TRULY FAIR AND PROGRESSIVE.
3) adding new tax brackets for the super-wealthy. Not just 39% for incomes over 370k... 50% for incomes over 750k... 60% for incomes over 1 million... 70% for incomes over 5 million. All of the sudden, all the give-aways that funded Wall Street robber-baron bonuses start to be recovered and resown into re-stabilizing this economy and rebuilding this country. All of the sudden, we have a truly progressive tax structure that starts to close the outrageous income gaps created over the last 30 years without having to resort to arbitary and unpopular forms of economic regulation.
These may seem unrealizable if you just talk to Republicans. But, IF YOU TALK TO THE AMERICAN PEOPLE, you will find they are ENORMOUSLY POPULAR and will be the basis of a STRONG AND SERIOUS NEGOTIATING POSITION.
Heck, if you took just one of these ideas, your Democratic base probably wouldn't mind one bit if you hold out a carrot or two.
Go ahead and hold out that carrot of temporary, even permanent relief on Estate Tax (quickly about to reset to VERY PROGRESSIVE RATES)...
Go ahead and hold out that carrot of a payroll tax rate decrease for everyone (lower taxes for the middle class, maybe even good stimulus)... heck, make it more popular by making it permanent...
Go ahead and hold out the carrots of the decreased income tax rates of the Bush cuts, but FUND THEM with NEW BRACKETS for THE SUPER-WEALTHY, who aren't paying anywhere near their fair share (just ask Warren Buffett)...
Whatever it is, however you do it, GET ONE SERIOUS, STRUCTURAL ECONOMIC VICTORY FOR THE AMERICAN PEOPLE.
We need a victory and badly. We are demoralized. It's not getting any better--and a 1% hoped-for decrease in unemployment won't solve the problem of a demoralized country and demoralized base.
Right now, at this exact moment in time, you are failing us, and you are helping to destroy this country's economy and its middle class. Short-term, reactionary thinking isn't going to help. There's a very strong chance it doesn't get you re-elected, either.
I (we) beg you, Democrats... above all, President Obama...
don't sell out with short-term, reactionary thinking...
don't sell yourselves and this country short...
FIGHT, RIGHT NOW, for JUST ONE SERIOUS, PERMANENT, POPULIST, PROGRESSIVE STRUCTURAL POLICY.
You have the veto pen.
You have a Senate majority.
You have a House Majority with a clock running down IN YOUR STRUCTURAL FAVOR!
FIGHT!