Budget cuts kick off Reagan's 2nd term

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2 SOCIALIST ACTION JANUARY 1985 . in / cuts are Social Security and interest on the national debt-which will be delivered on time to the bankers. Likewise, although Reagan did not admit it, the Pentagon's swollen money supply will continue to increase by some 6 percent.

In fact, in the five years since Reagan first took office, military spending has risen an average of 14 percent a year— for a total increase of over $1 trillion. The military now accounts for a third of the entire federal budget.

The administration is still testing the extent of possible opposition to its cutbacks. But it is clear already that the Democratic Party is willing to join Reagan in wiping out numerous projects introduced as part of their own Great Society, New Frontier, and New Deal schemes. This attitude was evident in Mondale's Reagan-like campaign calls for cuts in federal spending-with the addition of higher taxes.

"New wave" Democrats

Most of the politicians who are scrambling for the leadership of the Democratic Party are even more forthright than Mondale in advocating policies that favor Big Business.

The "new wave" is typified by Rep. Richard Gephardt of Missouri—who co-authored a "tax simplification" bill that is similar to Reagan's proposal. Gephardt calls for pared-down social programs and opposes abortion and busing for desegregation. He believes that these policies will make necessary a "blurring of the lines" between his party and the Republicans.

Gephardt's point of view coincides with that of the top financiers of the Democratic Party, who recently told the Washington Post that they are stepping out from behind the scenes in order "to move the party toward their businessoriented, centrist viewpoints."

But the Democratic Party's "money caucus" still faces a tug-of-war with the peace, environmental, and minority groups that remain in the Democratic Party under the illusion that the party can work for social progress.

In the words of Democratic national committee member Sharon Pratt Dixon, the party must stress "economic welfare" as opposed to "social welfare."

And to do this, Jesse Jackson and other reformist leaders must be roped in still closer toward the mainstream. "Special interest" groups within the national committee must be muzzled or eliminated.

Labor's lack of protest In response, John Perkins, who heads the AFL-CIO's Committee on Political Education, can only whine that the labor movement is "not going to be stampeded into anything."

The lack of any other protest against the bipartisan attacks indicates that union leaders are willing to accommodate themselves still further to the wealthy overlords of the Democratic Party—if only they are given enough time to persuade union members to compromise.

The high command of the two ruling-class parties may look to one fact to underpin their calculations: Working people have not yet built a party of their own. For years, the Democratic Party feted the leaders of the working class as "labor statesmen, endowed them as partners in the Democratic "coalition, and sent them home with a doggy bag of concessions for their memberships.

Now, in a failing economy, the labor bureaucrats-and like-minded overseers of the womens' , Black, and other movements of the oppressed-have been left holding an empty bag before an increasingly restive rank and file.

Despite the ballyhoo of the Mondale campaign-into which many organizations threw their memberships and treasuries-several militant trade union battles and numerous local antiwar demonstrations took place in 1984. This year will bring new struggles by meatpackers, rubber workers, and teamsters-and massive antiwar rallies in April.

The working class will not bow easily to the weight of leaders who are tied to the Democratic Party. But the anger and inevitable struggles that lie ahead must be organized. For this it will be essential that the trade unions and all organizations of the oppressed break with the Democratic Party and launch a labor party with a fighting program in opposition to the bipartisan policies of cutbacks and austerity.

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THE GOOD NEWS IS THEY'RE OURS, MR.PRESIDENT. THE BAD NENS IS THEY'RE HERE TO TALK ABOUT THESE CUTS IN VETERANS BENEFIT...