Socialist Party Response to The State of The Union 2010

Obama’s State of the Union: Year One of a Corporate Presidency
By Billy Wharton, National Co-Chair of the SPUSA

From the start, Barack Obama’s presidency has seemed like one big public
relations campaign. Tonight’s State of the Union address did little to
dissuade one from this view. Sagging under the weight of depressed dreams of
hope and change, he desperately needed to appear as though he was doing
something to address the growing needs of the American people. Emphasis on the
“appearances,” since Obama’s speech delivered more of the same from his
first year in office – high rhetoric with little substance.

The clear emphasis of the speech was the American economy. This was a
double-edged sword. In the first part, Obama presented his bank bailout as an
unpopular, but necessary measure – “We all hated the bank bailout…I hated
it…I promised I wouldn’t just do what was popular, I would do what is
necessary.” Yet, brushing off the bailout as a necessary evil misses
important points. First, the economic crisis created a historic opportunity to
create a banking system that could serve the American people. Placing these
failed institutions into public control might have allowed for the creation of
a highly regulated public banking sector. Second, the more than $700 billion
in tax payer funds was employed by the banks as insurance for
further speculation. It might have been better used on a real domestic
stimulus plan that addressed the needs of working people. The financial system
continues to fail the American people – the small businesses, homeowners and
working people – yet all Obama proposes is a few new bank fees. We need a
financial system that works for people not for profit.

This leads into the second part of his domestic economic agenda.
“Families,” Obama argued, “are tightening their belts and making tough
decisions. The Federal government should do the same.” The President’s
further comments on deficit reduction – including a three year freeze in
discretionary spending – signal an important shift from stimulus programs –
albeit in favor of large corporations and banks – to austerity programs. The
Socialist Party USA believes in the need to resist these cutbacks whether they
occur at the federal, state or local levels. We need to build a movement to
defend public programs. They should be expanded not cut back.

Despite the call for cuts, Obama pledged to maintain funding for national
security, including a military budget that remains a major drain on the
American economy. Estimates of the military’s share in the budget –
including payments for current and past wars – amounts to nearly 51% of
annual budget expenditures or nearly $1.2 trillion in tax funds. These tax
payers’ funds could be more productively put to work in the domestic economy
to create jobs, provide healthcare and fund poverty relief or internationally
to advance a peace agenda. This is why the Socialist Party USA calls for an
immediate 50% reduction in the military budget.

Austerity programs and budget freezing give the impression that the economic
crisis has ended. Yet millions still suffer from unemployment as a result of
the greatest crisis in capitalism since the 1930s. Obama referenced the Bureau
of Labor Statistics (BLS) U-3 unemployment number of 10%. However, the more
comprehensive U-6 figure released by the BLS that counts the discouraged and
underemployed has risen to 17.3%. That is why the Socialist Party USA supports
the creation of a Full Employment Policy that offers the public sector as a
means to create employment for all who wish to work.

Similarly, President Obama has dropped the ball on healthcare reform. The more
than 2,000 page legislation he supports in the House and Senate has been shaped
by major health insurers and pharmaceutical companies. Though he decried the
influence of lobbyists on Washington politics, he failed to mention the
sweetheart deal his office cut with big pharma prior to the healthcare
deliberations that began this summer. Near the end of his talk on healthcare,
Obama cynically asked, “if anyone from either party has a better plan…let
me know.” The Socialist Party USA has a better healthcare plan that can be
implemented immediately. We support the creation of a single-payer National
Healthcare Program that will act as an important first step toward a fully
socialized healthcare system, where healthcare is treated as a human right, not
a commodity sold to the highest bidder.

Finally, Obama commented on the current wars and occupation of Iraq and
Afghanistan. As thousands of new troops are poured into the quagmire of
Afghanistan, he provided the impression that the America’s military
adventures are winding down. Yet, he neglected to speak about his aggressive
stance and outright military intervention in Yemen and the threats he delivered
to Iran. Though there was no “evil-doer” list, Obama did little to
dissuade fears of further military intervention. Further, there was no mention
of his, as yet unfulfilled, promise to shut down the detention center at
Guantanamo Bay. The Socialist Party USA calls for the immediate removal of all
US military troops from Iraq and Afghanistan, the closing of Guantanamo Bay and
all secret prisons and the closure of the more than 700 military bases
throughout the world.

The time has come to bring substance back to politics, and everyday people are
the only force capable of doing so. Democratic socialism offers hope for the
future – a future with jobs, with healthcare and a future in which regular
people gain control over their everyday lives. More than anything, ours is a
struggle over values. Where capitalism offers isolated individualism, we
propose social solidarity. Where we find the cruelty of the market economy, we
present compassionate alternatives. And wherever injustice lies we mobilize to
create a more just society. The time for
slick public relations campaigns has ended – the time for building our
grassroots movements is more urgent than ever. The Socialist Party USA stands
ready to join in such a political revitalization.

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Billy Wharton is the co-chair of the Socialist Party USA