War on Poverty

Oops, I mean War on the Poor. Corporations are paying the lowest proportion of taxes on profits since before the great depression. The labor (wages) share of GDP is also at historic lows. Poverty is on the rise and while unemployment is down, it is still well above the natural rate of 4 to 6 percent (depending on whether we consider before or after Clinton). At the same time, corporate bonuses are up, income inequality is increasing and a new power elite is establishing itself across the public and private spheres. So what should we do? Increase corporate taxation? Reign in the power of lobbying and campaign financing? Institute more progressive taxation overall?

None of those will do. In fact, the answer is to cut funding for food stamps a year after the rolls hit their highest level in history. Not only did every Republican Senator vote to block an amendment that would have reinstated the $4.1 billion in cuts to the program, 28 Democratic Senators did so as well. And who benefits? A small coterie of crop insurance companies. But the GOP isn’t done yet. They want further cuts to Food Stamps, Welfare, Social Security and Medicare and Medicaid. And it appears Democrats from the House all the way up to Obama are willing to go along. Let them eat cake appears to have been replaced by “I don’t give a flying f*** what they eat.”