Each morning, Bill Scher and Terrance Heath serve up what progressives need to effect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
MORNING MESSAGE: The Vote This Week To End Medicare And Social Security
OurFuture.org's Bill Scher: "Last month, House Majority Leader Eric Cantor literally said Social Security 'cannot exist if we want America to be what we want America to be.' Then last week, House Budget Committee approved the literal end of Medicare as guaranteed affordable comprehensive health insurance for every retired American. The full House is expected to follow suit this week ... it will up to us to show America what that vote means under the surface of intentionally confusing policy jargon: they don't want Social Security and Medicare to exist."
President To Propose Medicare Changes For Deficit Reduction
President to propose Medicare reforms Wednesday as part of deficit reduction plan. W. Post:Bipartisan Senate group may be close to deficit reduction deal. W. Post: "In recent days, administration officials have expressed interest in the work of a bipartisan group of senators, known as the Gang of Six ... The group is close to an agreement and may announce one as soon as next week."
Republicans begin fight for 2012 budget with vote to smash Medicare. USA Today: " This week, the House of Representatives is slated to consider a blueprint shaped by Budget Committee Chairman Paul Ryan, R-Wis., that would cut spending by $5.8 trillion over 10 years and make sweeping changes to Medicare and Medicaid ... There are perils in that debate for Republicans. While the negotiations that just ended focused on reducing government spending in general ... [Medicare] has broad and fervent public support."
NYT's John Harwood on the political land mines for Republicans: "... it involves a threat to resist increasing the federal debt limit, this phase could jeopardize Republicans’ relations with business donors who help finance their campaigns. Because it involves cuts in Medicare, it endangers the votes of older Americans who helped fuel their midterm victories."
Republicans renew threat to refuse debt limit increase and default on obligations. Bloomberg: "'I can tell you this: There will not be an increase in the debt limit without something really, really big attached to it,' [said] House Speaker John Boehner ... Lawmakers won’t have much time ... The government will hit the debt cap by May 16 ... After that, the government will be able use a number of accounting moves and other steps to stave off default, Treasury said, though by around July 8, it will be out of options. Failing to raise the cap would reverberate throughout the economy, pushing up borrowing costs for the government as well as individuals and businesses, the administration says."
Republicans never bring up what it would take to avoid staying under the debt limit without raising it. Bloomberg's Jonathan Alter: "[Sen. Marco] Rubio doesn’t mention what would then be required to avoid default: cutting spending by $738 billion in six months. Not even the most fire-breathing Tea Partier has suggested how to do that."
You know what reduces the deficit? Taxing the rich. NYT's Nancy Folbre: "The historical record does not support the claim that high marginal tax rates dampen the economy. Average annual rates of growth in gross domestic product in the high-tax era between 1950 and 1980 exceeded those of the last 30 years. Increases in the top tax rate under President Clinton were followed by robust economic expansion."
State budget cuts hammering community colleges. Stateline: "...as state aid for community colleges shrinks, enrollments are skyrocketing ... many laid-off workers now look to community colleges for the training and education they need to find a job ... The result of these twin forces is a situation bordering on a crisis on some campuses."
Shutdown Averted ... At What Cost?
Robert Reich argues that Dems have lost leverage after the 2011 budget deal: "[President Obama] gave away more than half the sandwich — $39 billion less than was budgeted for 2010 ... Non-defense discretionary spending — basically, everything from roads and bridges to schools and innumerable programs for the poor — has been slashed. The right-wing bullies are emboldened. They will hold the nation hostage again and again."
HuffPost's Robert Creamer argues that its the Tea Party Republicans who have lost leverage: "...the president and Democrats have much stronger hand than some believe. While they can agree to negotiate over next year's budget, they can refuse to negotiate over the debt ceiling at all. ... The deal that was struck last week demonstrated clearly that the CEO/Wall Street faction of the Republican Party -- and its political elite -- are not yet prepared to allow the inmates to run the asylum."
Slew of details yet to be finalized. NYT: "'You may not be surprised to hear this, but they’re still sifting through the areas where they are going to make cuts,' Representative Chris Van Hollen of Maryland ... [Negotiators] were still fighting Sunday over a proposal to block Obama administration rules that would establish tight standards for profit-making colleges and vocational schools ..."
Some top GOPers won't support it. HuffPost: "Rep. Mike Pence (R-Ind.), a leading conservative House Republican, said Sunday he will likely vote against a budget deal ... Rep. Jim Jordan (R-Ohio), who leads the conservative Republican Study Committee, told HuffPost late Friday night that he does not expect the deal to receive 218 Republican votes..."
Politico adds: "GOP sources said upward of 50 Republicans could vote against the compromise, making Boehner dependent on Democrats to bring the bill across the finish line. While House Minority Leader Nancy Pelosi (D-Calif.) and Minority Whip Steny Hoyer (D-Md.) have not said how they will vote, senior House Democratic aides said their early estimates are from 20 to 40 votes for the legislation from their caucus..."
Several GOP Senate candidates oppose deal. Politico: "According to a POLITICO survey of more than a dozen of the top GOP challengers, an overwhelming majority said they would have opposed the compromise..."
Pentagon untouched in spending cut package. Time's Romesh Ratnesar: "In fact, defense spending will increase by $5 billion ... And that doesn't even include the cost of ongoing 'overseas contingency operations,' otherwise known as the wars in Iraq and Afghanistan ... simply going after Pentagon waste and abuse won't be enough. To conserve its power, the U.S. will need to reduce the size of its armed forces ... And that means rethinking how, where and for what purposes the U.S. commits its military to intervene in foreign crises."
Mortgage Proposal Won't Rein In Excessive Foreclosures
Consumer groups criticize proposed new rules for mortgage servicers. NYT: "The new rules require the servicers to improve their processing systems, to stop foreclosing while negotiating to modify the loan and to give borrowers a single direct means of contact ... The problem, said Alys Cohen of the National Consumer Law Center, is the agreements 'do not in any way require the servicers to stop avoidable foreclosures, and that is what we need.'"
Lawsuit against JP Morgan questions whether it double-crossed clients during crisis. NYT: "While the clients [investing in Sigma] lost nearly all their money, JPMorgan collected nearly $1.9 billion from Sigma’s demise ... A victory by JPMorgan’s clients may mean that banks will have to be more careful about deciding whether to share — or silo — information that affects their clients’ investments."
