US of Austerity: What $570 Billion Cuts Will Do to Our Water, Air, the Jobless, Children, the Elderly, and the Poor
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The Obama-GOP plan cuts $917 billion in government spending over the next decade. Nearly $570 billion of that would come from what's called "nondefense discretionary spending." That's budget-speak for the pile of money the government invests in the nation's safety and future—education and job training, air traffic control, health research, border security, physical infrastructure, environmental and consumer protection, child care, nutrition, law enforcement, and more.
The White House's plan would slash this type of spending nearly in half, from about 3.3 percent of America's GDP to as low as 1.7 percent, the lowest in nearly half a century, says Ethan Pollack, a senior policy analyst at the left-leaning Economic Policy Institute. Pollack's calculations suggest the cuts in Obama's plan are almost as deep as those in Rep. Paul Ryan's slash-and-burn budget, which shrunk non-defense discretionary spending down to just 1.5 percent of GDP. The president has claimed that the debt deal will allow America to continue making "job-creating investments in things like education and research." But on crucial public investment, Obama's and Ryan's plans are next-door neighbors. "There's no way to square this plan with the president's 'Winning the Future' agenda,"Pollack says. "That agenda ends."
Environmental protection offers one useful window onto the damage this deal might inflict. The president has boasted that his deal with the GOP will usher in an era featuring "the lowest level of annual domestic spending since Dwight Eisenhower was president." But Melinda Pierce, a lobbyist with the Sierra Club, says the plan could choke off funding needed to enforce the bedrock environmental-protection laws on the books, including as the Clean Water and Clean Air Acts. "Remember, the Eisenhower era was before we passed the Clean Water Act and the Clean Air Act," Pierce says. "There just won't physically be the funds available to protect drinking water and to ensure there's clean air to breathe."
Ben Schreiber, a tax analyst with Friends of the Earth, a national environmental advocacy group, says the Obama-GOP debt ceiling deal could also drive a stake through the heart of investments in wind, solar, and other clean-energy technologies. "The clean-energy revolution becomes a casualty of these cuts," Schreiber says. He adds that the Environmental Protection Agency also sends money to the states for their own environmental protection efforts, which could suffer after such a drastic cutback in domestic spending. At the same time, he says, corporate subsidies for oil and gas companies, worth an estimated $30 billion over ten years, are untouched in the latest debt ceiling proposal. "Polluters are getting off scot-free," he says. "We're basically turning the environment over to the industry."
Jobs programs could also go under the knife. Rick McHugh, a staff attorney at the National Employment Law Project, points to two endangered programs: the Workforce Investment Act, which funds job training programs for young, adult, and dislocated workers, and the Trade Adjustment Assistance program, which provides benefits and training to workers whose jobs were lost due to outsourcing. McHugh says both programs are necessary at a time when 14 million Americans are out of work.
McHugh adds that the bill does not include an extension of federal funding for unemployment benefits, which is set to expire at the end of the year. All told, he fears that already weak job market could be dealt a massive body blow by the Obama-GOP debt deal. "To have this big of an austerity proposal in Washington is disconcerting and misguided," he says.