There is much one could say about President Obama’s Rose Garden statement on Wednesday announcing his FY 2014 budget. On the plus side, the president endorsed a “chained CPI”–a measure of inflation that is a more accurate way to factor rises in the cost of living into Social Security benefits. It’s a good idea, if quite a modest one (this Wall Street Journal editorial explains why there is less to it than meets the eye). And of course if the president really believed in a chained CPI, he would be a strong advocate for it rather than viewing it as a concession to Republicans. (Jay Carney, in this interview with Fox News’ Bret Baier, concedes that a chained CPI is “is not preferred policy by this president.”)
In any event, the downsides of the record-setting $3.78 trillion budget overwhelm the upside. A quick summary of the budget can be found here, but here’s some of what you need to know: Over a 10-year period it would raise taxes by $1.1 trillion–on top of $1 trillion in taxes from the Affordable Care Act and more than $600 billion from the president’s recent tax hike. It increases spending by $964 billion. And it adds $8.2 trillion to our debt. The debt held by the public as a share of the economy is predicted to reach 78.2 percent in 2014–nearly double what it was in 2008.
The answer should be stunningly obvious, but don’t tell Reuters. In the course of an article about the divergent fates that await victorious North Korean athletes and those who have failed, comes this:
The reality is that life is tough in North Korea in the best of times, however. International sanctions over its nuclear weapons program, a decaying economy and a defective food distribution system have left almost a third of its 24 million people poor and hungry and it has few friends besides its neighbor China.
It really takes an intellectual contortionist wearing blinders to miss so utterly the reasons for North Korea’s failure: it’s a totalitarian state that holds its own citizens in contempt. International sanctions may target the North’s weapons program but, if sanctions were waived tomorrow, the only beneficiaries would be Kim Jong-un and the military. The food distribution system is not defective, just misaligned. After all, it was the regime and military that benefited when the Clinton administration shipped food aid to North Korea. The regime maintains the Songbun, a social classification system that marks North Koreans for life. A tiny few benefit; most are disposable.
According to a story in the Associated Press, “the ranks of America’s poor are on track to climb to levels unseen in nearly half a century.” The story goes on to say that poverty, which is closely tied to joblessness, “is spreading at record levels across many groups.” (The most recent poverty rates are from 2010; Census figures for 2011 will be released this fall.)
According to demographers:
- Poverty will remain above the pre-recession level of 12.5 percent for many more years. Several predicted that peak poverty levels — 15 percent to 16 percent — will last at least until 2014.
- Suburban poverty, already at a record level of 11.8 percent, will increase again in 2011.
- Part-time or underemployed workers, who saw a record 15 percent poverty in 2010, will rise to a new high.
- Child poverty will increase from its 22 percent level in 2010.
As the election nears — it is now less than 100 days away — the issue of poverty in America will hopefully play a somewhat more central role. It’s perfectly appropriate for candidates of both parties, and at all levels, to focus on the plight of the middle class. But while the effects of the Great Recession, combined with the worst recovery on record, have taken their toll on every strata in American society, it is the poor who suffer disproportionately. (I understand that the definition of poor is subjective and that what qualifies as poor in America qualifies as extravagant wealth in, say, parts of Africa.)