Robert Kuttner has written much of the column I intended to write on this subject, so I will point you to his excellent column and add a few thoughts.
Kuttner wrote to warn that Obama intends to seek a “grand bargain” causing the U.S. to adopt the type of austerity program that threw the Eurozone back into a gratuitous recession.
Worse, Obama intends to begin to unravel the safety net (Social Security, Medicare, and Medicaid) to convince the Republicans to enter into this Faustian bargain. Just as only a conservative Republican could visit “Red” China, only a Democrat can begin the destruction of the safety net. The difference, of course, is that normalizing relations with China was a good thing while unraveling the safety net is a terrible thing.
Wall Street’s greatest desire is privatizing Social Security. Wall Street stands to make scores of billions of dollars annually in additional fees should it ever buy enough politicians to privatize Social Security. The Republican Party’s greatest goal is unraveling the safety net. They always wish to attack the most successful and popular programs introduced by the Democratic Party. Their problem is that they know it is toxic for Republican candidates to try to destroy the safety net. Only Democrats, through a “Great Betrayal” can give Republicans the political cover they need to unravel the safety net.
Obama is telling the media that the Great Betrayal is his first, and overarching, priority should he be re-elected. We are forewarned and we must act now to make clear that we will block the Great Betrayal and crush at the polls any member of Congress who supports it.
Do not concede the phrase “grand bargain” to the proponents of the betrayal. We should heed Camus’ warning that it is essential to call a plague by its real name if one is to resist it – and it is essential to resist the pestilence. “[W]hen you see the suffering and pain that it brings, you have to be mad, blind or a coward to resign yourself to the plague.” We must refuse to resign ourselves to being betrayed by Democratic leaders. Our actions must make it clear that we are not mad, blind, or cowards. We refuse to fall for their faux moral panics. It is our leaders who are all too often mad, blind, and cowards.