The U.S. budget crisis — Bosses win, workers lose

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VOL. 29, NO. 8, AUGUST 2011 WWW.SOCIALISTACTION.ORG U.S. / CANADA $1 Under the new law, the federal budget, which currently of programs that benefit working people. Undoubtedly, Following many weeks of staged political wrangling runs about $3.7 trillion, will be scaled down by less than even more cuts will be undertaken in later negotiations, in Congress, President Obama signed “emergency legis- 1 percent (about $21 billion) next year—with much not to mention further tinkering with corporate tax lation” on Aug. 2 that projects more than $2 trillion in larger cuts occurring in later years. Closed-door negobudget cuts over the next decade. The law also raises the tiations by a congressional committee representing the Over the course of 10 years, it is likely that eligibility ceiling on the government’s immediate borrowing abili- ruling rich and their twin parties, often called the Gang for full Social Security benefits will be edged up to age ties by $400 billion, with $500 billion more assured in of 12, will have the task of recommending more budget By THE EDITORS Seth Periman / AP the autumn. Chip Somodevilla / Getty Images Saul Loeb / AFP / Getty Images (Clockwise) Illinois state workers protest governor’s plan to renege on paying their contractual raises. • President Obama discusses budget at July 11 press conference. • House Speaker John Boehner speaks to press about Republican budget proposals.

items to cut. “Everything is on the table for that committee,” said White House Press Secretary Jay Carney.

Commentators in the media predict that over the next 10 years Social Security, Medicare, and Medicaid will be slashed by some $650 billion, along with an additional $1.2 trillion in discretionary spending cuts, many of which come out rates to the advantage of the rich.

(continued on page 4, in “Norway attack shows dangers from Islamophobia and the far right”)

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