Too Many Guns, Not Enough Butter. United for a Fair Economy

Transcription

1 War & the Economy Too Many Guns, Not Enough Butter United for a Fair Economy 37 Temple Place Second Floor Phone: (617) Fax: (617) info@faireconomy.org Web Site: March 2003

2 State Economies are in Crisis States are facing budget deficits in the range of $70-85 billion for FY The deficits will be between 14.5% and 18% of all state expenditures. State budget deficits totaled $50 billion in FY To balance their budgets, states are cutting basic services: schools & libraries closed health coverage & clinics cut environmental programs eliminated even law enforcement services trimmed 1

3 Military vs. Social Spending FY 2003 Fiscal Year 2003 Discretionary Budget Billions $400 $396 $350 $300 $250 $200 $150 $100 $50 $52 $29 $0 Military Education Housing Assistance Source: War Resisters League < based on data from the Center for Defense Information. 2

4 Bush Jr. Clinton Bush Sr. Reagan Carter Ford Nixon Johnson Kennedy Eisenhower Profit Rate ( ) Corporate profits fell sharply after the mid-1960s. 10% 8% 6% 4% 2% 0% Source: Left Business Observer #104 (3/21/03), published and edited by Doug Henwood, based on data from the Federal Reserve. Profit rate is defined as the pretax profits divided by the value of the capital stock. 3

5 The Bush Vise Big increases in military spending Employment & Training Housing + Health Care Welfare Education Tax cuts (mainly for the wealthy) = Huge deficits The result is a squeeze on social spending. 4

6 Military Spending in the U.S. ( ) Military spending rose dramatically during the Reagan Administration and is shooting up again. Billions (in constant 1996 dollars) * Carter Reagan Bush Sr. Clinton Bush Jr. * Estimate Source: National Priorities Project, based on the Budget of the US Government, FY2003 ( 5

7 The Average Dollar Value of Tax Law Changes in the 1980s (In constant 1995 income levels) $101 tax increase Bottom Quintile Middle Quintile $164 tax cut Top 1% Federal tax changes in the early 1980s were highly regressive. $31,349 tax cut Source: Mishel and Bernsteinl., The State of Working America, , p.95. 6

8 Federal Receipts & Spending as a Percent of GDP ( ) Percent Outlays (Spending) Receipts Carter Reagan Bush Sr. Clinton Bush Jr. Source: Office of Management & Budget ( Figures for 2004 are estimates. 7

9 Spending on Housing Assistance ( ) Billions (in constant 1996 dollars) * Carter Reagan Bush Sr. Clinton Bush Jr. * Estimate Source: National Priorities Project, based on the Budget of the US Government, FY2003 ( 8

10 Spending on Training & Employment ( ) Spending for job training & and other employment programs tumbled during the late 1970s and early 1980s. Billions (in constant 1996 dollars) * Carter Reagan Bush Sr. Clinton Bush Jr. * Estimate Source: National Priorities Project, based on the Budget of the US Government, FY2003 ( 9

11 Ownership of Household Wealth in the United States (1998) Bottom 90% 29% Top 10% 71% Source: Edward N. Wolff, Recent Trends in Wealth Ownership, Calculations based on the 1998 Survey of Consumer Finances, conducted by the Federal Reserve Bank 10

12 Real Family Income Growth by Quintile & for Top 5% ( ) 80% We Grew Apart +81% 70% 60% 50% +53% 40% 30% 20% 10% 0% +3% up to $24, % $24,000 - $41, % $41,127 - $62, % $62,500 - $94,150 $94,150 - and up $164,104 - and up Bottom 20% Second 20% Middle 20% Fourth 20% Top 20% Top 5% Source: U.S. Census Bureau, March 2001 Census, Current Population Survey, Tables F-1 and F-3. Income ranges in 2001 dollars. 11

13 Shrink, Shift, and Shaft I simply want to reduce government to the size where I can drag it into the bathroom and drown it in the bathtub. Grover Norquist, Americans for Tax Reform. Interviewed by Susan Page, NPR, 5/24/01. Shrink and privatize government Government is just big bureaucracy without accountability. Shift taxes onto wage earners (and turn them into tax cutters ). Reduce taxes for the wealthy; investment income untaxed Cut services that the majority use Deficits are used to reduce government spending. Education & human services are cut at federal and state levels Standards are cut for workplace & food safety. Change whom government works for at all levels (national, state, local) 12

14 Shrink, Shift, and Shaft in Iraq SHRINK The Public Sector Privatize everything Illegally sell public enterprises Create a Middle Eastern Free Market SHIFT Who Gets the Profits Halliburton, Bechtel, transnational corporations Contracts to anti-union companies SHAFT Iraqi Workers Extend Saddam Hussein s Decree 87 banning unions Raid union offices, arrest leaders Break up labor demonstrations Cut wages 13

15 Shrink, Shift, and Shaft in the Military SHRINK What Enlisted Personnel Do Pay Halliburton for base construction, food, logistical support, etc., in open-ended, cost-plus contracts Hire Dyncorp in Afghanistan and Colombia SHIFT Who Fights Send National Guard and Reserves to Iraq Extend tours of duty SHAFT Active Duty Soldiers & Veterans Try to cut extra hazard pay Cut medical coverage for veterans Don t advertise available care Bar access for Disabled American Veterans 14

16 The Average Dollar Value of the 2001 Tax Law Change Bottom Quintile Middle Quintile Top 1% $67 tax cut $570 tax cut The Bush tax law is a huge gift to wealthy Americans. $45,715 tax cut Source: Mishel et. al., The State of Working America, 2002/2003, p

17 U.S. Federal Budget for Fiscal Year 2004 Total Federal Funds (outlays) = $1,731 billion Current Military $459B Past Military 345B Human Resources 593B General Government 235B Physical Resources 99B Source: War Resisters League, line-by-line analysis of projected figures in the Analytical Perspectives book of the Budget of the United States Government, Fiscal Year The percentages are federal funds, which do not include trust funds such as Social Security that are raised and spent separately from income taxes. 16

18 Military vs. Social Spending TOOLS FOR WAR 1 cluster bomb 1 minute war on Iraq $14,000 $763,000 TOOLS FOR PEACE Enroll 2 children in Head Start Annual salary/benefits for 15 RNs 1 hour war on Iraq 1 year military aid to Colombia 1 day of war on Iraq 1 Stealth bomber $46 million $494 million $1.1 billion $2.1 billion Improve, repair, modernize 20 schools 7,000 units of affordable housing Prevent cuts to education programs (FY2003) Annual salary/benefits for 38,000 teachers 17

19 Reviewing the Key Points 1. Increases in military spending plus tax cuts (primarily benefitting the wealthy) are key factors that lead to huge budget deficits. 2. The deficits are used to force cuts in spending for social programs. 3. The underlying goal of these economic policies is to maintain the tremendous concentration of wealth and power at the top. 4. Soaring military spending drains resources from social needs and worsens state budget crises. 18

20 Military Spending of U.S. & its Adversaries Prior to Sept 11, the U.S. spent 23 times what Iraq, Iran, North Korea, Syria, Libya, Cuba, and Sudan spent, combined. Billions (in constant 2000 dollars) $350 $300 $322.4 $250 $200 $150 $100 $50 $0 U.S. $14 7 Rogue States Source: National Priorities Project < The U.S. State Department maintains a list of rogue states. Currently, this list includes Iraq, Iran, North Korea, Syria, Libya, Cuba, and Sudan (3/03). 19

21 Top Five Military Spenders in the World Billions 400 $ $65.0 $47.0 $42.6 $ U.S. Russia China Japan U.K. Source: International Institute for Strategic Studies, Department of Defense. Figures are for the latest year available, usually The fugure for the U.S. is from the annual budget request for Fiscal Year 2004 and does not include additional funding requested for the War in Iraq. 20

22 The Two-Headed Monster Myths & Misconceptions War Abroad War at Home Colombian Drug Lords Axis of Evil Arab Terrorists Illegal Immigrants Reverse Discrimination Rogue States Youth Gangs Libyan Hit Men Willie Horton Evil Empire Welfare Queens Racism is used to maintain a climate of fear and to justify a militarized society. 21

23 What Can We Do? We as a nation must undergo a radical revolution of values. We must rapidly begin the shift from a thing-oriented society to a person-oriented society. When machines and computers, profit motives and property rights, are considered more important than people, the giant triplets of racism, extreme materialism, and militarism are incapable of being conquered. America, the richest, most powerful nation in the world, can well lead the way in this revolution of values. Martin Luther King, Jr. 22

24 What You Can Do Today Work for Peace Affiliate with USLAW or UfPJ Use the petition for Iraqi Labor Rights Join forces with global justice movement Work for Justice Join Stop the Cuts coalitions Circulate the Fund the Dream Petition Push legislators to support fair taxes and cut excessive military spending Support civil liberties and immigrant rights Educate Talk with members and neighbors Write letters to the editor Stage creative actions to draw media attention Host War & the Economy workshops 23