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Rightward shift continues

Clinton budget bows to Republican pressure

By Fred Goldstein

Amid all the political turbulence in Washington surrounding the impeachment of President Bill Clinton, there is a steady undercurrent pushing capitalist politics, economics and foreign policy steadily to the right.

What the working class should keep its eye on is not the faction fight between the Republicans and Democrats over removing Clinton, but the concrete attacks by both parties against the masses of people at home and abroad.

One case in point is Clinton's latest budget. The administration, with much fanfare, has presented it as carrying out the "people's agenda." But even before the details of this budget are revealed, its broad outline shows how anti-working class it really is.

Out of $1.77 trillion in the budget overall--a staggering sum!--interest to the bankers and bondholders will be $200 billion. The Pentagon appropriation will be $260 billion--not counting all the special military items that get added during the year.

This means that, even before a penny is spent for the rest of the population, one fourth of the entire federal budget is earmarked for the military-industrial complex and the rich coupon clippers.

Clinton has boasted about his balanced budget and a projected $112 billion budget surplus for the coming year. But the budget was balanced by cutting social programs way back. Now, with 50 million people in this country living at or near the poverty level, and with one quarter of the children going to bed hungry, Clinton is sitting on this money, allegedly to "save Social Security."

The cry of "save Social Security" was first raised by giant brokerage houses, including Merrill Lynch and the Blackstone Group, and by right-wing think tanks such as the Cato Institute. The aim was to start a panic that would lead to investing Social Security funds in the stock market.

Many economists in the labor movement dispute the very idea that Social Security needs saving. But even if it did need to be saved, the simplest and most equitable way would be to make the millionaires and billionaires pay by lifting the cap that now limits how much of their income is taxed. Raising wages would also help.

Instead, Clinton is sitting on this $112 billion surplus to accumulate it as part of his plan to invest $700 billion of Social Security money in the stock market.

One of the reasons so much poverty persists in this country despite the capitalist economic boom is that Clinton and Newt Gingrich balanced the budget by destroying welfare, cutting public housing spending to zero, cutting spending on education and wrecking social services all around.

Now Clinton is trying to sound like a great hero for restoring a small part of what he took away.

For example, school class sizes have mushroomed during the Clinton administration. Now he claims his budget will provide funds for 100,000 teachers to reduce class sizes.

The problem with this demagogy is that there are about 115,000 elementary and secondary schools in the U.S. This program, even if achieved, would average not even one teacher per school.

Driving millions off the welfare rolls has created a huge increase in demand for childcare. How else are women heads of household able to work? Clinton's budget for childcare credits for the parents of millions of children comes to $6.3 billion--less than half the $12 billion increase the Pentagon will get.

Close to 70 million school children will receive $30 billion while Lockheed-Martin, Raytheon, General Electric, Boeing and their cohorts in the military-industrial complex will get hundreds of billions.

The $1,000 tax credit Clinton proposes to help families with long-term health care covers at best a few weeks of nursing home fees or home nursing care to deal with illnesses that can last years.

This analysis can be extended to the entire budget to show that the masses get the window dressing and the capitalist class gets the lion's share. It is clearly the bosses, the bankers, the stockbrokers and the generals who are driving the budgetary process. Clinton is their willing instrument.

A winning formula

The resistance by the big bourgeoisie to ousting Clinton flows from the fact that they have hit upon a winning formula for this period of reaction.

They have a Democratic president who is completely amenable to allowing the capitalists to grab as much as they can, while being restrained by the Republican majority should he come under pressure from progressive forces.

Furthermore, the bosses are insulated from mass protest against the regime because the Democratic Party, through its ties to grassroots organizations all over the country, serves to hold the movement in check. It argues that protest is dangerous because the Republicans are worse and further to the right.

This formula has sustained a steady move to the right. It works well for a period of capitalist boom and a low level of mass resistance. The ruling class sees no reason to change it.

Indeed, Rep. Dick Gephardt of Indiana, who ran for president in 1996 and was expected to run again next year, is about to back out of the race. His reputation for flirting with the labor movement put him out of favor with the New Democrats and their ruling class backers, led by Clinton, who broke Democratic Party tradition and assiduously avoided open association with the AFL-CIO. Gephardt now claims he wants to be Speaker of the House.

Another casualty of the new right-wing atmosphere is Paul Wellstone of Minnesota, who announced a few months ago that he would run for president but now has announced that he is dropping out already. Wellstone is a liberal critic of Clinton best known for introducing a bill for national health care that rivaled Clinton's ill-fated health care plan. Wellstone claimed a bad back, but more likely he has an empty wallet due to lack of big business contributors.

Vice President Albert Gore, a charter member of the New Democrats who is to the right of Clinton, would fit well as Clinton's successor under present circumstances.

Not that Gephardt, Wellstone or any of their like would be the saviors of the working class. Neither they nor any other politician has protested the plying of the military with money. Clinton's promise to give the Pentagon $1.2 trillion by 2005 speaks to the steady impoverishment of the workers and the oppressed at home, whose needs will be sacrificed on the altar of militarism. It is also clearly preparation for a new and even more aggressive phase of U.S. imperialist aggression and expansion around the world, made more urgent by the spreading capitalist economic crisis.

The daily bombing of Iraq, the mobilization to dismember Yugoslavia by sending occupation forces into Kosovo, the criminal attack on the Sudan--or any of the other acts of imperialist aggression carried out by Clinton and the Pentagon in the midst of the impeachment crisis--are only a prelude to the next phase of military expansion as the Pentagon builds new fighter planes, new missiles, new communications and spotting devices.

ABM system--a new menace

In fact, Clinton's budget allocates funds to one of the most warlike acts since the U.S. decided to expand NATO: the beginning of an anti-ballistic missile system. And it hasn't drawn a peep from any politician in Washington.

Secretary of Defense William Cohen announced several weeks ago that the Pentagon was going ahead with a missile defense system. If necessary, he said, the U.S. would pull out of the anti-ballistic missile treaty with Russia that had been signed back in 1972 with the Soviet Union.

Using the phony pretext of defending the U.S. against the Democratic Peoples Republic of Korea or Iran, Clinton's budget has money to erect a missile defense system. Such a weapons system has always been understood as preparation for a first nuclear strike. When Reagan announced his Star Wars ABM system, it almost led to a complete rupture with the USSR.

The plan to build such a system is a
follow-up to bringing Poland, Hungary and the Czech Republic into NATO and is part of the Hitler-like "expand to the east" long-term strategy of the Pentagon, as well as an immediate threat to the DPRK. But such outrageous right-wing acts have become par for the course in Washington in the wake of the collapse of the USSR. And it is this right-wing current that has flowed steadily beneath the stormy waters of the impeachment crisis.

The only thing that can shatter this atmosphere is the awakening of the mass movement and a full-scale mobilization against the unholy alliance of the big business parties, the Republicans and Democrats in Washington, and their united front against the peoples of the world. This is what must be on the mind of all enemies of exploitation and oppression.

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