Obama, closing the labor gap with the Third World...

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The president opened the summit itself by saying that we had to face the fact that our resources are too limited to finance job creation. But he failed to mention that the $1.4 trillion deficit tripled last year's deficit due, in large part, to the bank bailout, which "according to the Inspector General of TARP, was allocated up to $23.7 trillion (of the people's money) in cash handouts, loans, debt guarantees and other subsidies" to the financial sector. (1) That's in addition to the loss of $1.3 trillion in revenue due to the Bush tax cuts that went overwhelmingly to the already superfluously wealthy. (2) (italics added)

The president asked the multimillionaire corporate CEOs assembled for the summit what he could do to get them to hire new workers. They demanded corporate tax cuts. The president told them "that he would propose tax incentives for hiring new employees, the dismantling of business regulations, and other measures that will do next to nothing to put jobless people back to work," but will, however, boost corporate profits. (3)

The $100 billion the administration claims will go toward "job creation" is primarily credits to businesses that hire workers or raise wages, extended unemployment benefits, and aid to state and local governments. But even if the $100 billion did create jobs, it would be two million jobs paying $50,000 (or four million jobs paying $25,000) for a projected 20 million unemployed or underemployed. (4)

In a nod to the jobless, the president asked that the unemployed "be patient" and "keep hope alive" as his adminstration pays down the deficit with "unprecedented fiscal austerity," and "sharp cuts in social spending." This was in addition to his repeated calls for the already poverty-stricken to cut their consumption - of medical care? of shelter?! of -- food?!! - while funneling trillions to banks and the military, and giving billions to insurance and pharmaceutical corporations as well as looking to institute a national consumption, e.g. sales, tax and slashing spending for social programs.

"At the same time, the labor cost gap with Third World countries must be closed so the US can be transformed into a cheap labor platform to send US exports around the world. This is the administration's plan for 'economic recovery.'" (5) (emphasis added)

Once the American people are desperate and groveling for jobs, the "opulent minority" will use us to manufacture the things they were having made so cheaply in China - until China had the temerity to raise workers' wages to tamp down the threat of rebellion. With nearly eight million jobs wiped out since the recession began, mass unemployment is being used to drive down wages as close as possible to those of the most destitute and desperate of the world's people.

more here - http://www.globalresearch.ca/index.php?context=va&aid=18393