Robert Reich, who is one of my favorite economic theorists, says Ransom Paid, in his column today. Every Democrat who wants to be able to discuss our economic situation, intelligently, should read today's column, and probably every column. This video on saving our schools is a bonus.
Anyone who characterizes the deal between the president, Democratic, and Republican leaders as a victory for the American people over partisanship understands neither economics nor politics.
The deal does not raise taxes on America's wealthy and most fortunate -- who are now taking home a larger share of total income and wealth, and whose tax rates are already lower than they have been in eighty years. Yet it puts the nation's most important safety nets and public investments on the chopping block.
It also hobbles the capacity of the government to respond to the jobs and growth crisis. Added to the cuts already underway by state and local governments, the deal's spending cuts increase the odds of a double-dip recession. And the deal strengthens the political hand of the radical right.
Reich does acknowledge this deal is better than a default.
Reich laments that our President did not link the extension of the Bush tax cuts, to a GOP agreement to extend the debt ceiling.
Many months ago, when Republicans first demanded spending cuts and no tax increases as a condition for raising the debt ceiling, the president could have blown their cover. He could have shown the American people why this demand had nothing to do with deficit reduction but everything to do with the GOP's ideological fixation on shrinking the size of the government -- thereby imperiling Medicare, Social Security, education, infrastructure, and everything else Americans depend on. But he did not.
Reich believes the "radical right has now won a huge tactical and strategic victory," that we Democrats and the White House have revealed ourselves to be deficient in both tactics and strategy. And, that by putting Medicare and Social Security on the table, we may have neutralized this issue for the 2012 elections. How are we going to blame the GOP now that we seem to agree with the GOP that the budget deficit is our biggest economic problem?
The budget deficit is not the biggest obstacle to our prosperity. Lack of jobs and growth is. And the largest threat to our democracy is the emergence of a radical right capable of getting most of the ransom it demands.
We need to invest time getting everyone back on board with our own unique Democratic economic perspectives and theories, and develop a collective strategy and tactics for winning the 2012 elections. And, make sure our leaders understand them, and get back on board.