Victory! Thanks to the efforts of many of you and allied organizations, the Obama Deficit Commission Plan fell short. This is great news as the Commission planned to deal with the deficit on the backs of poor, working and middle class while not challenging those who have profited as a result of policies that favor the wealthy.
The need for economic stimulus and jobs creation is so evident that even the usually deficit concerned Federal Reserve is urging stimulus and not deficit reduction. As economist Dean Baker points out, job creation is the first priority, writing: “If the unemployment rate were at its pre-recession level of 4.5 percent, we would have, at most, a modest deficit.” This economic collapse was caused by the housing bubble bursting. Sadly, that continues with rising foreclosures continuing to weaken the housing market.
Tell President Obama and congress that the real way to deal with the deficit is to re-ignite the economy:
1. Focus on creating jobs through infrastructure spending, supporting state and local governments and transitioning to a new clean energy economy that creates green jobs, efficient jobs-producing mass transit and a carbon-free, nuclear-free energy economy.
2. Stabilize the housing market by requiring banks to rewrite mortgages at lower interest rates and based on the real economic value of homes.
3. Face up to health care costs. The U.S. is spending more than twice as much as other countries per person on health care, expanding and improving Medicare so it is available to all Americans is the only real reform that will control costs and provide health care to all.
4. Cut the military budget dramatically. Weapons and war now make up more than half of federal discretionary spending. For years the U.S. has spent as much as the rest of the world combined on the military. It is time to end the current wars and close many of the more than 700 bases the U.S. has overseas. A sustainable economic policy is not possible so long as the military dominates the budget.
5. Tax wealth instruments – stocks, bonds and derivatives – with a micro tax of less than 1% which will raise more money than the income tax on the first $100,000 in income on all Americans.
6. Re-institute the tax rate on wealthy Americans, the top 2% of income earners in the U.S. population to save $70 billion a year.
Please sign today and demand real action on the economy and deficit!