MORNING MESSAGE: What Progressives Can Learn From Public Education’s "Fiscal Cliff"
OurFuture.org's Jeff Bryant: "Public education’s fiscal cliff already happened … new austerity budgets passed by state legislatures [have resulted] in drastic cuts in direct education services to school children nationwide. The effects of the cuts were immediately devastating to schools, especially in critical needs areas such as early childhood education, class size, arts, vocational, and physical education, and special services … for the 2012-13 school year, elementary and high schools were receiving less state funding than in the previous school year in 26 states, and 'in 35 states school funding now stands below 2008 levels — often far below.' … When political leaders pushed public schools over the real fiscal cliff, many Democratic officials looked the other way — or even joined in the shoving. The lesson for progressives is don’t ever, ever let them do that again."
WH Makes Opening Bid
WH proposes deficit reduction plan with up front stimulus. LAT: "The White House … wants $50 billion in new stimulus spending, aid to help homeowners refinance mortgages, $30 billion in extended unemployment benefits and a new process to make it easier to raise the federal debt limit debt, which must increase in a matter of months to prevent a default."
And high ratio of tax increases to spending cuts. The Hill: "In September, Obama said he favored a spending cut/tax revenue ratio of 2.5 to 1. His new offer of $400 billion in spending reductions and $1.6 trillion in tax revenue changes the ratio, though the $400 billion figure does not include the savings that were passed in the Budget Control Act of 2011. Furthermore, it remains unclear how much 'war savings' factor into the president's plan and some details on the proposal have yet to emerge."
GOP Fails To Counter
Republicans reject, but fail to make counter-offer. AP: "'Unfortunately, many Democrats continue to rule out sensible spending cuts that must be part of any significant agreement that will reduce our deficit,' [Speaker Boehner] declared … [Sen. Chuck Schumer] said both sides agreed to a two-part framework that would include a significant down payment in 2012, along with a plan to expand on the savings in 2013. 'Each side said they’d submit a down payment. We have. Our preference is revenue. What is theirs?' he said, speaking of the Republicans."
"I’m not going to get into the details" says Boehner at press conference.
"Republicans Conveniently Forget All the Cuts Obama's Already Made" says TNR's Jonathan Cohn: "As part of the 2011 Budget Control Act, Obama agreed to spending reductions of about $1.5 trillion over the next ten years. If you count the interest, the savings is actually $1.7 trillion. Boehner should have no problem remembering the details of that deal: As Greg Sargent points out, Boehner at the time actually gloated about the fact that the deal was 'all spending cuts.' And now, with this latest offer, Obama is proposing yet more spending reductions, to the tune of several hundred billion dollars. Add it up and it’s more than $2 trillion in spending cuts Obama has either signed into law or is endorsing now."
"Democrats bet Republicans cave on taxes" reports Politico: "'You can smell the winds,' Sen. Chuck Schumer (D-N.Y.), No. 3 in his party’s leadership, said Thursday. 'When so many Republicans say, "Hey, we’re going to have to give into the Democrats," that’s how it works around here. That’s the beginning.'"
Jobless aid again point of contention. Roll Call: "[Rep. Sander] Levin says he wants to see a straight extension through the end of next year to give long-term jobless workers more time to get back on their feet. About 5 million of 12.3 million unemployed Americans have been out of work for more than six months, one of the highest ratios on record. Several Republicans suggested this week that they would hesitate to approve such a long extension."
GOP's Corporate Patrons Face Weaker Influence
Chamber of Commerce struggles in deficit debate with lost influence. NYT: "The Chamber of Commerce, in the biggest voter mobilization effort in its history, spent tens of millions of dollars in support of pro-business candidates … But the results were disastrous: out of 48 House and Senate candidates that it spent money to try to either elect or defeat, the outcome went the chamber’s way only seven times … When Mr. Obama met two weeks ago with a dozen corporate leaders but did not invite the Chamber of Commerce, it was widely seen as a snub of the group over its political attacks during the presidential campaign. But the chamber got its turn Monday."
The plutocrats are still waging class war, argues NYT's Paul Krugman: "…what voters said, clearly, was no to tax cuts for the rich, no to benefit cuts for the middle class and the poor. So what’s a top-down class warrior to do? The answer, as I have already suggested, is to rely on stealth — to smuggle in plutocrat-friendly policies under the pretense that they’re just sensible responses to the budget deficit. Consider, as a prime example, the push to raise the retirement age, the age of eligibility for Medicare, or both…"
Breakfast Sides
Up to 10 Dem senators undecided on enacting filibuster reform by simple majority. The Hill: "…three indicated they could be persuaded to follow Reid’s lead. That means Reid might be only one or two votes short of the 50 he needs to trigger the change…"
Fast-food restaurants hit with biggest strike action in their history. NYT: "The biggest wave of job actions in the history of America’s fast-food industry began at 6:30 a.m … at dozens of Burger King, Taco Bell, Wendy’s, McDonald’s and other fast-food restaurants in New York City … part of an ambitious plan that seeks to unionize workers and increase wages at fast-food restaurants across the city … The unionization drive, called Fast Food Forward, is sponsored by community and civil rights groups — including New York Communities for Change, United NY.org and the Black Institute — as well as the Service Employees International Union."
