Obama claims that his administration and his tax policy is not class warfare against the rich.
Taking a defiant tone against Republicans unwilling to raise taxes in order to close the deficit, President Obama today unveiled a $3 trillion long-term deficit reduction plan that relies heavily on raising taxes on the wealthiest Americans.
“This is not class warfare — it’s math,” Mr. Obama said from the White House Rose Garden, addressing GOP critiques of his plan head on.
“The money has to come from some place,” he continued. “If we’re not willing to ask those who’ve done extraordinarily well to help America close the deficit… the math says everybody else has to do a whole lot more, we’ve got to put the entire burden on the middle class and the poor.”
The policies of his administration are not class warfare against the rich. They’re class warfare by the Obama administration, the establishment, and the military-industrial complex against everyone else.
Let’s take his claim that “the money has to come from somewhere” — that’s correct. Paying down the debt requires that the money come from tax revenues. Americans commit almost 30% of their GDP to taxation.
From the Economist:
And where does that money go?
Now we know that America is currently running trillion dollar deficits and has almost $15 trillion in headline debt. So we know that in spite of taking more than $3 trillion in taxes per year, America is spending outside its means. Here’s a full breakdown of Federal spending in Obama’s first year in office:
• Military Personnel $129 billion
• Operation & Maint. $241 billion
• Procurement $143 billion
• Research & Dev. $79 billion
• Construction $15 billion
• Family Housing $3 billion
• DoD misc. $4 billion
• Retired Pay $70 billion
• DoE nuclear weapons $17 billion
• NASA (50%) $9 billion
• International Security $9 billion
• Homeland Security (military) $35 billion
• State Dept. (partial) $6 billion
• other military (non-DoD) $5 billion
• “Global War on Terror” $200 billion [We added $162 billion to the last item to supplement the Budget’s grossly underestimated $38 billion in “allowances” to be spent in 2009 for the “War on Terror,” which includes the wars in Iraq and Afghanistan]
• Veterans’ Benefits $94 billion
• Interest on national debt (80%) created by military spending, $390 billion
• Health/Human Services
• Soc. Sec. Administration
• Education Dept.
• Food/Nutrition programs
• Housing & Urban Dev.
• Labor Dept.
• other human resources.
• Interest on debt (20%)
• Government personnel
• Justice Dept.
• State Dept.
• Homeland Security (15%)
• International Affairs
• NASA (50%)
• other general govt.
• Homeland Security (15%)
• Energy (non-military)
• Environmental Protection
• Nat. Science Fdtn.
• Army Corps Engineers
• Fed. Comm. Commission
• Other physical resources
The reality here is that a majority of government spending is going toward permanent warfare, “global security“, the military industrial complex, guns, bombs and death. Beyond that, money spent is often frittered away on crony capitalism, bridges to nowhere, and Washington’s largesse. That is an epic transfer of wealth from ordinary Americans. But not only that it is significantly weakening America — every gun built, every bomb dropped, every phoney war created is money, time, effort and skills wasted that could instead have been spent on creating infrastructure, starting enterprises, investing in new equipment, building schools, developing technology, opening factories, or hiring workers.
Alas, it is not only the permanent war that is transferring wealth from the poor to the rich — it is the drastic inflation of the money supply that occurs through the process of central banking, too.
From Ron Paul:
Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state
The U.S. dollar has been devalued 96% since the creation of the Federal Reserve:
So the American people are struck with two hammer blows — the hammer of an ever-weakening currency diminishing their purchasing power and encouraging ceaseless consumption, and the hammer of an ever-greater military spending that strips wealth away from the working people, and hands it to defence contractors to build aircraft carriers, missiles, and tanks.
And what’s Obama’s recipe to get America out of this mess?
He wants to take more productive capital out of the economy so he can hand it to institutional investors, and authoritarian foreign regimes who bought U.S. bonds?
Is this a joke? Why doesn’t he address the elephant in the room — the absurd military overspending — instead of taking yet more productive capital away from the American people.