DEBT, SHARED SACRIFICE, AND CORPORATE FREELOADERS

The truth about the current deficit that we are facing in the United States has not been told any better than by Senator Bernie Sanders (I-Vermont). While speaking before the Senate on June 27, 2011 on the economy and the federal budget, he talked about the unspoken reality taking place in America. He said "the gap between the wealthiest people in this country and everybody else is growing wider. It has not been this wide since just before the Great Depression began in 1929." He further stated that "the United States today has by far the most unequal distribution of wealth and income of any major country on earth."

Wow. There it is. That ugly phrase that makes those on the right and so called conservatives go crazy. Well, actually they don't like the phrase redistribution of wealth, but I am sure they don't really see a distinction. Senator Sanders went further in his analysis of the problem by stating that “the top 1% earns over 20% of all income in this country, which is more than the bottom 50% over a recent 25 year period. Also, 80% of all new income created in this country went to the top 1%.”

Senator Sanders certainly had his facts together. Among other things, he said

+In terms of distribution of wealth (which is accumulated income) in America today
the top 400 individuals own more wealth than the bottom 150 million Americans.
+Deficit reduction must include shared sacrifice. The wealthy and large corporations have to help this country deal with record breaking deficits.
+The reality is the rich are getting richer and the poor are getting poorer and the
middle class continues to disappear.

The Senator made a plea to deal with the facts of how we got into this deficit situation in the first place. I agree with his scenario, which is this: A number of policy decisions were made over the last decade and votes were cast on the floor of the Senate and House of Representatives which supported these policies. In January 2001, when President Bill Clinton left office, this country had an annual federal budget SURPLUS of $236 billion. We now have a $1.5 trillion DEFICIT and a growing national debt. We got where we are today because 1) a trillion dollars was spent on wars in Afghanistan and Iraq and they were not paid for. 2) We provided over $700 billion in tax breaks for the wealthy and did nothing to offset them. 3) Medicare Part D was passed regarding the prescription drug program and was written by drug companies and insurance companies. Under this program Medicare cannot negotiate prescription drug prices. The cost is $400 billion over a ten year period and we do not pay for it. 4) We doubled military spending since 1997-and this does not include wars in Iraq and Afghanistan. Not many Republicans or Democrats who voted for those wars ever mentioned costs. 5) When Wall Street was bailed out to the tune of $700 billion, not many said we can't do that. 6) When $700 billion in tax breaks were given to the wealthiest Americans, there were very few questions and concerns. 7) The deficit that we are in now was caused by the recession, which was caused by the greed and illegal behavior on Wall Street. These circumstances all caused the economic condition of the moment. The end result: A staggering AMOUNT OF DEBT.

When President Bush left office President Obama inherited an annual deficit of $1.3 trillion with deficits as far as the eye could see. The national debt more than doubled under President Bush because of policy decisions made by Republicans and Democrats. The only reason we have to increase our nation's debt ceiling today is we are forced to pay bills that the Republican leadership in Congress (and some Democrats) and President Bush racked up.

Senator Sanders ended his presentation by pulling the covers off the wealthiest of Americans. For instance, he said “the most profitable corporations in America are not paying any federal income taxes, and are in fact receiving tax rebates from the IRS.” Republicans want to provide them even MORE tax breaks. He identified the worst of who he called "corporate freeloaders: Exxon Mobile, Bank of America, General Electric, Chevron, Boeing, Valero Energy, Goldman-Sachs, CitiGroup, Conoco Phillips, and Carnival Cruise Lines. He also talked about the 18,857 companies who use the SAME Cayman Island address as their home address and thus avoid paying taxes in the United States.”

Wow. wow. wow. We.are.in.serious.trouble.in.this. country. When the middle class completely disappears, the revolt will begin, and Senator Sander's speech will be referred to as the beginning of a true conversation regarding a 21st century Declaration of Independence.