What Part of “We Don’t Want Cuts” Don’t They Understand?

Here at Calitics I’ve been charting the many ways in which Californians reject spending cuts. The May 2010 PPIC poll showed large majorities supported new taxes in order to prevent cuts to public schools and health and human services programs.

Voters then went out and backed up that opposition to cuts by approving 3 out of every 4 tax measures on the June 8 ballot.

Public opposition to cuts is so strong that it requires significant political manipulation to force them through. That is the essence of the “shock doctrine”, the label Naomi Klein gave to the last 30 years of neoliberal economic policy, aimed at the transfer of wealth away from working people and toward a small elite. Klein explained this was only possible through the taking advantage of a crisis, a crisis usually manufactured by those same neoliberals. As she explained it to Democracy Now!:

The shock doctrine, like all doctrines, is a philosophy of power. It’s a philosophy about how to achieve your political and economic goals. And this is a philosophy that holds that the best way, the best time, to push through radical free-market ideas is in the aftermath of a major shock. Now, that shock could be an economic meltdown. It could be a natural disaster.

The reason that an economic crisis works is because only the “shock” of the crisis enables political power to overcome deep and strong public resistance to the implementation of that agenda. Californians absolutely do not want to see their school budgets cut, but it happens because Californians are told we have to make these cuts or else face fiscal ruin.

Even then, Californians reject these arguments – and they do so even in forums designed to impose a misleading and dishonest agenda of massive cuts to the safety net. That’s what Calitics alum David Dayen found yesterday when he visited the Pasadena meeting of the nationwide “America Speaks” event. Funded by Pete Peterson, who for decades has been trying to make massive and devastating cuts to Social Security and Medicare, America Speaks was intended to gin up public concern about the budget and manufacture consent for cutting those core programs. But as Dayen found, many people in attendance weren’t buying it:

While the cumulative effect of all this tends towards social safety net cuts rather than tax fairness, the crowd in Los Angeles, at least, wasn’t biting at first. In surveying the discussion groups, most people seemed more concerned about the desperate need for more stimulus spending to move the economic recovery forward. They feared a double dip recession without job creation, and fretted about the lack of unemployment insurance extensions to help the less fortunate. “No one is talking about the long-term unemployed,” said one participant. In a nationwide poll, taken by participants through electronic devices at all 19 America Speaks sites, 61% said the government needed to do more to strengthen the recovery, with only 25% opposed. Even with a push poll question asking if participants supported government programs to increase growth “if it increases the deficit,” got a majority, 51%, of the group.

The public instinctively rejects deficit concern trolling, and feels an immediate revulsion to the notion that core public services ought to be cut. Instead they quite clearly preferred progressive solutions that favored economic recovery, rejecting claims that we have to cut spending and worry about the deficit instead:

During the discussions about the long-term budget challenges, there was a greater tendency from the participants to place a greater burden for deficit reduction on those with the ability and capacity to do so. Among the anti-corporate sentiment, someone mentioned that Exxon paid $0 in federal taxes last year. During the scare film about the budget, a few people screamed “Wrong!” when it was suggested that defense makes up 20% of the total budget (that doesn’t include spending on wars). Lastly, people thought that the wealthy weren’t paying their fair share for the commons. Someone mentioned the carried interest loophole, allowing money managers to treat their income as capital gains instead of income, drastically lowering their tax rate. One of those money managers is Pete Peterson, the funder of America Speaks.

Nationwide, the results appear to have been the same. Despite the efforts of the America Speaks organizers to push and manipulate attendees to support right-wing solutions, the results instead showed strong support for progressive solutions to whatever problems Social Security and Medicare might have. From America Speaks’s very own news release:

Reforms that were preferred by participants at the National Town Meeting included options that:

   * Raise the limit on taxable earnings so it covers 90% of total earnings.

   * Reduce spending on health care and non-defense discretionary spending by at least 5%.

   * Raise tax rates on corporate income and those earning more than $1 million.

   * Raise the age for receiving full Social Security benefits to 69.

   * Reduce defense spending by 10% – 15%.

   * Create a carbon and securities-transaction tax.

Most of these are extremely progressive solutions. Given the overwhelming bias of the event toward regressive solutions, it’s no surprise that two of them – cutting spending on health care/non-defense spending, and raising the retirement age – made it onto the list. But it’s obvious that the list is full of very deeply progressive revenue solutions that Americans, including Californians, very clearly want.

I’m fairly confident even the two regressive solutions on the list could be dealt with. Health care costs would be lowered overall with a single-payer system, even though the nominal amount that government spends on it would go up. And it shouldn’t be difficult to argue against raising the retirement age – we don’t have enough jobs to go around as it is, so once people hit their 60’s, it’s time for them to retire and leave the workforce.

Overall the event reinforces the obvious: Californians do not want spending cuts. They want their public services to be protected. It’s a message Sacramento needs to hear loud and clear over the next few weeks as they hammer out a budget deal – a budget that could finally embrace “economic recovery” (a phrase that is forbidden to be uttered in Sacramento) or a budget that would merely repeat the failures of the last few budget cycles and prolong California’s recession in the name of austerity.

5 thoughts on “What Part of “We Don’t Want Cuts” Don’t They Understand?”

  1. I think it’s worth noting that the Boston Consulting Group has confirmed that the ranks of millionaire households are growing.  So, there is room to increase taxes on those who can afford to chip in and help out to save services.  I sent an e-mail to Senator Steinberg a couple of weeks ago, to be sure that he is aware of both the PPIC poll and the good news that the wealthy have recovered from the recession.  I haven’t heard anything back from him, though.

  2. That we don’t want cuts could be deduced from the fact that a majority of the state legislature is Democratic. But that doesn’t stop the Rethuglicans [sic] from using the ability of the minority to block everything. I am furious at ballot measures that require a 2/3 majority to raise any tax. It’s completely undemocratic and unfair that a “no” vote counts twice as much as a “yes” vote, no matter what the Supreme Court says. Thanks for the report, we need to get the word out and counter the right-wing propaganda.

  3. I don’t know how many times I’ve screamed in frustration at liberal-leaning people who, when we’ve talked about the state budget situation, invariably say “there’s just no money!”

    Of course there is and those in power know exactly where it all is. The massive theft and shift of wealth began in 1980….or 1978 here in CA with Prop. 13. During the course of time when that transfer has occurred, the neoliberals have bought out the media, stacked the Supreme Court, and passed one trade agreement after another to undermine the power of government in favor of mega-corporations and the wealthy. They’ve spread this disease worldwide as well.

    But the worst part is that they’ve conditioned everyone else to accept their message, their economic “philosophy,” and their destructive system. Thus, even the liberal-minded will wring their hands and say “what choice do we have? There’s no money,” as their wages stagnate or decline, they pay through the teeth for health care (if they have it), they lose homes, our environment is ravaged, education and social services are slashed to nothing, infrastructure deteriorates, local governments are rendered powerless or pawns of big corporations, free speech is defined as for sale to the highest bidder….

    BS! There IS plenty of money and we have to embrace OUR belief in a society based on the common good rather than unbridled capitalism and that the rich are somehow entitled to their billions . It’s not about soaking the rich. They were living quite comfortably back in the 1950’s and 1960’s, when there was a more equal distribution of wealth. It’s about ending a gamed system that, as history always shows, leads to concentrations of money and power in a very few at the expense of everything else. Just how many billions is enough to live on, anyway? Why are these billions now being allowed to stay within families and passed on to those who never did work for them?

    These few are addicted to money and power and will stop at nothing to have it all and keep it all, even at the cost of the entire planet. We need to impose checks and balances on them–take a cue from nature. We need to stop playing by their rules, because the game is rigged. We need to do it soon.

  4. But Democratic politicians haven’t adjusted to the news.

    The game plan in Sacramento hasn’t changed very much. Instead of clear, defensible proposals to raise revenues directly (oil severance, increase the marginal tax rate on high earnings, increase corporate taxes) we again are faced with gimmicks.

    For example, raising oil severance revenues then tying them up with a 20 year obligation to Wall St. seems counter productive.

    The Democratic leadership needs to realize that earnest negotiations are only the final step. Long before that we needed bold proposals that set the bar where it ought to be. Instead the budget proposals are complicated and incomprehensible.

    It’s like the Democrats want to raise funds but want to hide the fact that that is what they are trying to do. This is a self-defeating strategy.

    Until we say what we really mean and fight for it, we will continue to lose.

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