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Obama Offers No Significant ‘Changes’ for Economy

by Socialist Action Editors  / February 2010

 

In his State of the Union speech, Jan. 27, President Obama did his best to repair the tarnished image of his administration and the Democratic Party. Following last month’s “disaster” in Massachusetts, in which Democrats lost a key Senate seat to a Republican newcomer, Obama had the task of recapturing disillusioned voters who a year ago had been enticed by his campaign promises of “change we can believe in.”

 

“Right now,” Obama admitted in his speech, “I know that there are many Americans who aren’t sure if they still believe we can change—or at least that I can deliver it.”

 

Obama identified many of the problems that the American people care about. In regard to the current economic morass, he said:One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder.”

 

In fact, the Federal Reserve and many economists say that hard times will continue, with economic growth  slowing and unemployment rising this year. Moody’s Economy.com predicts that today’s (official) 10 percent unemployment rate will hit 11 percent by next summer, and over 17 percent for African Americans.

 

Some of Obama’s observations in regard to the capitalist system were not off the mark: “We can't afford another so-called economic ‘expansion’ like the one from the last decade—what some call the ‘lost decade’—where jobs grew more slowly than during any prior expansion, where the income of the average American household declined while the cost of health care and tuition reached record highs, where prosperity was built on a housing bubble and financial speculation.”

 

Who is to blame for the bursting of the bubble, the current economic doldrums, and the frustration and anger felt by most Americans? Marxists point out that economic crises are a logical and recurring feature of the capitalist system, rooted in its cycles of overproduction.

 

But Obama, for his part, gently shunts the blame onto a single portion of the U.S. capitalist class and onto the Republican Party. Republicans are portrayed as troglodytes who find it difficult to understand the need for “change.”

 

On Jan. 29, for example, Obama chided a meeting of congressional Republicans for stalling on the health-care bill: “If you were to listen to the debate,” he teased them, “You’d think this thing was some sort of Bolshevik plot! That’s how some of you guys presented this.”

 

Obama brought his case to the Republicans to reassure Congress members on both sides of the aisle that the watered-down health-care bill should present no dangers for the insurance, pharmaceutical, and other big corporations that their parties represent.

But he also got the chance to set the stage for the next round of national elections, encouraging the Democratic Party’s supporters who lead the unions and other social organizations, and in the media, to counsel their constituents to defeat the “backward” Republicans by voting for the Democratic Party.

 

Yet the Republicans have not been the sole target of Obama’s recent criticisms. He hinted in his State of the Union address that a large share of the blame for the economic crisis rests with “Wall Street” and “the banks.” And similarly, during a Dec. 7 interview on the CBS News “60 Minutes” program, Obama asserted, “I did not run for office to be helping out a bunch of, you know, fat cat bankers on Wall Street.”

 

“Nothing has been more frustrating to me this year,” he added, “than having to salvage a financial system at great expense to taxpayers that was precipitated, that was caused in part by completely irresponsible actions on Wall Street. And I’ve spoken out repeatedly about this. The people on Wall Street still don’t get it.”

 

With this, the president was attempting to divert people’s anger toward a very handy target, as his predecessor, Franklin D. Roosevelt, did in a more dire situation. Blame it on the banks! But instead of nationalizing the banks, Obama simply hands them the keys to the Treasury.

 

Business as usual

 

Of course, despite his calls for “change,” Obama has been unable to offer any course for U.S. capitalism that is markedly different from what was done in the past. How could he?

As before, capitalists will feel compelled to bolster their profit rates by any means necessary—including financial and real estate speculation, polluting the environment, shutting down factories, making workers pay more for health care, and wage cuts. And they can count on the government to help them along in all these endeavors.

 

Accordingly, in his State of the Union speech, Obama’s new proposals for the domestic agenda were extremely timid  (as most of the media were quick to point out)—and hardly likely to have much effect on the economy.

 

He vowed to keep nudging Congress to enact some sort of health-care “reform” and to pass the paltry jobs bill now stalled in the Senate. He mentioned tax-relief measures for small businesses and the “middle class,” additional funding for high-speed passenger railroads ($8 billion, which won’t go very far), and a few other promises.

 

And while Obama is seeking an across-the-board spending freeze on governmental programs for next year, the White House says that money for the military would continue to rise, as it would for programs to “secure our borders” against undocumented immigrants.

In foreign policy, Obama affirmed—using diplomatic language, of course—that he would continue to pursue “free-trade” policies in the neo-colonial world that are favorable to U.S. imperialism at the expense of its major competitors (like China) as well as local economies:

 

“We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. But realizing those benefits also means enforcing those agreements so our trading partners play by the rules.

 

“And that's why we'll continue to shape a Doha [World Trade Organization] trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia.“

 

And how does the White House intend to “enforce” such agreements? The Obama administration’s support of repressive client regimes like that of Colombia has ominous implications for Latin America and beyond. The Obama White House is expanding Plan Colombia (a military campaign begun under President Clinton and ostensibly used as part of the “War on Drugs”), and now plans to establish seven military bases in Colombia.

 

The scale of repression already wreaked on Colombia, with U.S. backing, was glimpsed on Jan. 28, when a mass grave containing about 2000 bodies was found in La Macarena. For years, the U.S. government has advised and supported the Colombian army in its sweeps against so-called guerrillas in the area. Residents told the Miami Nuevo Herald that family members and local political leaders, who were non-combatants, had disappeared, and they thought their bodies were in the graves.

 

The “lesser-evil” syndrome

 

With the election of Barack Obama as president, U.S. capitalism had no alternative but to try to match and exceed the reactionary policies of George Bush.

 

The ruling-class decision to choose Obama to lead its offensive against working people in these troubled times was carefully calculated. Without doubt the selection of the intelligent, well-spoken Black Democrat, who campaigned with a light touch against the crudities of his predecessor, struck a responsive chord among millions of Americans looking for change—especially when the system was in crisis under Bush’s watch.

 

It is now becoming clear to many that no such change is forthcoming. But such realities have never deterred leaders in the labor movement and elsewhere from portraying the Democratic Party as a vehicle for progressive reform. These forces see no option but to paint Obama’s failures as partial successes—as with the present health-care bill and his decision to match the sending of 30,000 troops to Afghanistan with a vague promise to begin to remove them in 18 months.

 

These manufactured illusions were certainly evident in a recent exchange on the pages of The Nation magazine (Feb. 1), in which political commentators had been asked to list what they considered the highlights of the Obama presidency, as well as their greatest disappointments with it. The most refreshing response was submitted by the late historian Howard Zinn, who had given Obama’s candidacy “critical support” a year ago.

 

In the recent Nation article, Zinn said: “I’ve been searching for a highlight. The only thing that comes close is some of Obama’s rhetoric; I don’t see any kind of a highlight in his actions and policies.”

 

“As far as disappointments,” Zinn wrote, “I wasn’t terribly disappointed because I didn’t expect that much. I expected him to be a typical Democratic president. On foreign policy, that’s hardly any different from a Republican—as nationalist, ex- pansionist, imperial and warlike.”

 

Zinn concluded, “I think people are dazzled by Obama’s rhetoric, and that people ought to begin to understand that Obama is going to be a mediocre president—which means, in our time, a dangerous president—unless there is some national movement to push him in a better direction.”

 

There is no doubt that determined social movements that are independent of the Democrats and Republicans can push the government to enact basic reforms.  But the political arena should not be left to the two parties of the capitalist class. A key step toward abolishing the “lesser-evil” syndrome in U.S. politics would be taken with the construction of a mass working-class political party, armed with a clear program of how to achieve real change.

 

 

Human Needs, Not Profits!