The “fiscal cliff” negotiations have led to another replay of Obama’s 2008 sellout, this one on economic fairness. Throughout the 2012 campaign the president promised to raise taxes on the top 2% of American households, those earning over $250,000 a year. As of November 9th he was still “sticking to his guns,” calling his stance nonnegotiable. On December 17th, however, without the defeated Republicans even having to propose a counteroffer, Obama pulled a classic Democratic negotiating-against-himself maneuver. Not only did he offer House Speaker John Boehner to protect the spectacularly wealthy taxpayers who earn up to $400,000 from a tax hike, he quietly sold out senior citizens by gutting the current system that calculates cost-of-living increases for Social Security and other federal entitlement programs.
At first, few people would notice Obama’s switch to a so-called “chained consumer price index.” (Under the new system, if the price of steak goes up, the government assumes you’ll switch to hamburger—so it doesn’t count as inflation.) This year, for example, the inflation rate under the chained CPI is 0.3% less. But inflation is exponential and the effect is cumulative. By the time you hit age 92, you’d lose an entire month of Social Security benefits each year.
This, remember, was the president who was supposed to bust out as an FDR-style crusading liberal ready, willing and able to fight the right-wing Republicans and stand up for ordinary Americans.
What a joke he has been, except millions of people are negatively affected by his neo-liberal agenda.