It's "heads I win, tails you lose" for the financial elite.
If Washington “goes over the cliff,” the impact will be felt most directly by working people, including tax increases that will effectively cut take-home pay for workers by 7 percent and the immediate elimination of unemployment insurance for 2 million long-term jobless, followed soon after by the cutoff of benefits for another 1 million people. Federal workers will face unpaid furloughs, and essential social programs, from energy assistance to child nutrition to education grants, will be hit with across-the-board cuts.
This is only the beginning. The fiscal cliff is the first in a series of artificial deadlines established for the New Year. There will be another deadline in late February over raising the federal debt ceiling—the same issue that became the pretext in August 2011 for a bipartisan agreement to cut over $1 trillion in social spending over the next decade. In March, the “continuing resolution” adopted before the election to authorize federal spending for six months will expire.
Each deadline will be utilized as the occasion to go after the most important federal social programs: Social Security, Medicare and Medicaid, which provide retirement income and pay for health care for tens of millions of elderly, disabled and poor people. The phony debate over a minuscule tax increase for the rich—which will be quickly replaced with “comprehensive reform” to lower income and corporate taxes next year—is intended to conceal this reactionary agenda.
Washington has been the enemy of the American people for a long time. Now people are slowly waking up from their collective coma to see what in the hell has happened.
We will see if these crooks get away with it.
Paul Krugman notes the GOP's tactic of trying to con the easily hoodwinked Obama into "entitlement cuts," and then, if he took the bait, use it against him for the 2014 elections.
It's all pretty transparent:
The first part is, of course, simply a lie: numerous reports tell us that McConnell did in fact make precisely that demand. And let’s remember this when Rubio makes his run for the White House: we already know that he’s an unprincipled liar. But anyway, you see how it will go — and why the whole notion of settling matters fiscal with a Grand Bargain was always crazy. You can’t make big deals with a totally untrustworthy negotiating partner.
But which side is the "untrustworthy" one, Paul? It's only a matter of one side being just a little more untrustworthy than the other.
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