Cleaning Up the Bush Economic Mess
Message from the Secretary-Treasurer
By William Lucy
Looking Ahead – Meeting with C. Payne Lucas Sr. of the Pan African Health Foundation about a health care project in Nigeria.
Photo Credit: Luis Gomez
In my last few columns, I discussed how the economic downturn under the Bush administration is hitting us where we live and work. Polls now indicate our economic woes are the number one issue for Americans.
We’re experiencing the slowest job growth since the Great Depression, and long-term unemployment has nearly doubled since President Bush took office. Almost 5 million more Americans live in poverty; with 8.6 million more without health insurance. Household median income is down $1,000 and falling. In the first quarter of 2008, food and beverage costs rose over 5 percent and energy costs climbed 8.6 percent, while wages continue to lag behind.
The ‘R’ Word
Bush and his cronies avoided the “R” word until it landed in CEOs’ decked-out boardrooms and splattered on Wall Street traders’ expensive Italian shoes. But working people know they’ve been living for years on the brink of a recession.
As gas prices climb and home prices fall, while we hemorrhage trillions on the wars in Afghanistan and Iraq, and the national deficit hits $9.3 trillion, average Americans suffer cuts in essential domestic programs like education and health care. States — bound by law to balance their budgets — and local governments are experiencing fiscal crises.
Public Services & Workers Sacrificed
Because of the weak economy, over half our states face fiscal year 2009 deficits with a widening budget gap. Across the country, government workers and the services they provide are prime targets for elimination.
New Jersey came up with $1 billion in cuts, underfunding employee pension contributions by half. Now Gov. John Corzine has put 3,000 state jobs and three state agencies on the chopping block.
Other states are also turning to extreme measures: Ohio may reduce state staff by 2,700 and close two mental health hospitals. California’s Gov. Arnold Schwarzenegger suggests slashing 10 percent at most agencies. Nevada has a 4.5 percent across-the-board cut for all agency budgets in 2008 and expects another reduction for 2009.
And it doesn’t end there. Look at Maine. Gov. Jon Baldacci proposed slicing the education budget by $20 million, threatening to privatize a Bangor facility serving children with severe mental disabilities, resulting in a loss of 43 state jobs.
Look at New York. Ordered to roll back non-personnel spending by 5 percent, the state might close facilities, and cut state aid to localities such as New York City.
In New Jersey, Pennsylvania and Texas, federal infrastructure spending has fallen to 4 percent, saddling these states and localities with three-quarters of all infrastructure spending. The result? Proposals to privatize state roads in a wrong-headed move to reduce costs.
Address Our Issues
With states and municipalities desperate for help, what lifeline does President Bush toss them? More tax cuts for corporations and the wealthy. This didn’t work before, and it won’t work again. It’s time to deep-six the Bush economic scam.
We must give ordinary Americans, especially low-income people, tax relief — money that they, in turn, will spend. We need a temporary increase in Food Stamps and an extension of unemployment benefits. Increasing the federal Medicaid matching rate would be effective. For economic and safety reasons, we must repair the infrastructure — with the added benefit of creating jobs immediately. By lessening budget cuts to the states, we would provide temporary fiscal relief. This would save needed programs and jobs — in some cases, it could even result in new jobs.
Most importantly, unlike the current administration’s plans, these remedies will help jump start our economy. By implementing them, the federal government can change the flagging course of our nation and invest in America and American workers.
