Wednesday, July 20, 2011

‘Gang of Six’ and the Neoliberal Deficit Trap

What Happens When You Accept a Neoliberal Frame — or How Obama Joined the ‘Gang of Six’ and Became a Reverse Robin Hood

By Carl Davidson

  1. Only one of the Gang of Six pictured above has done something positive recently, Illinois’s Dick Durbin, when he blurted out that ‘the banks own the place’ in reference to Congress

    Otherwise, this crew just cooked up a deal, under a false flag, that claims the US economy is going to recover by taking from the poor and giving to the rich—and now Obama has signed on to it.

    It all follows from the false frame, that our main problem is ‘deficits.’

    No, there’s plenty of money if you go after it in the right places, and our main problems are lack of jobs, unjust tax codes and the lack of a progressive clean energy and green manufacturing industrial policy.

    But neoliberal finance capital has suckered our political class, with some exceptions, into its false framework.  Once you accept the notion that there’s no money, that deficits can’t be corrected without cuts, and that tax cuts create jobs in a down economy, you’re on the road to perdition. Jobs are created by increasing demand, and these measures just decreased demand from both consumers and government. Ask your local deficit hawks to explain how decreased demand creates more jobs, and then try to keep from laughing out loud before they finish.

    The ‘exceptions’ just noted in our political class are the 70+ votes in the Congressional Progressive Caucus, and the real solution to the crisis is in the ‘Peoples Budget’ they have promoted to counter both the White House and the GOP-far right alliance. Be sure to help them win in 2012, and to their ranks.

    Progressive Democrats of America is the main group supporting the good guys here, speaking truth to power and calling mass meetings locally around left-progressive solitions. Go to and hook up. We need to grow its size tenfold.


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