Victory: Chained CPI out of Obama budget

By Roger Hickey

ourfuture.org

This represents a victory for populists who want politicians to fight for the majority of real Americans facing tough economic realities at work and in retirement. Apparently the bad idea of means-testing Medicare will still be in the budget, but the disappearance of the chained CPI is a win to be savored and built upon. This should be chalked up as another triumph for the rising new populist electorate – and a powerful message to politicians that the old Washington game no longer works. It is harder and harder to do the bidding of powerful elites in the halls of Congress while pretending to be on the side of the voters.

Obama takes Chained CPI offer out of 2015 budget. NYT: “White House officials said on Thursday that since Republicans in Congress have shown no willingness to meet the president’s offer on social programs by closing loopholes for corporations and wealthy Americans, the proposed budget for the 2015 fiscal year will not assume a path to an agreement that no longer appears to exist.”

Obama budget will “call for an end to era of austerity” reports W. Post: “…the president will focus on pumping new cash into job training, early-childhood education and other programs aimed at bolstering the middle class, providing Democrats with a policy blueprint heading into the midterm elections … Obama would fully pay for proposed new spending in his budget request, administration officials said, including $56 billion … split between domestic programs and defense [to fund] 45 new manufacturing institutes; a ‘Race to the Top’ for states that promote energy efficiency; new job training programs and apprenticeships; and expanded educational programs for pre­schoolers.”

Urgency to cut deficit gone, says WH. Bloomberg: “Last year’s federal deficit of $680 billion was the lowest in five years. The deficit as a share of the economy will shrink to a seven-year low in the 12 months ending Sept. 30, according to projections earlier this month by the Congressional Budget Office. The projected gap is down from 9.8 percent of the gross domestic product in 2009, the widest in records dating back to 1974.”

A Republican Senate won’t easily raise the debt limit in 2015, reports The Hill: “‘If the Senate falls near or under Republican control it’ll be very clear there will not be another clean debt ceiling passed next year,’ said GOP strategist Ron Bonjean … With Republicans likely to pick up Senate seats and fairly good odds of winning control of the upper chamber, they will be in a stronger position to negotiate with President Obama. They’ll also be under more pressure from the GOP base not to capitulate — even if they fall short of recapturing the Senate.”