The Economics of Barack Obama and the Democratic Party

September 22, 2008

During the elections, Obama and the Democrats are campaigning largely on a promise to help the workers. But the real program of the Democrats tells a different story.
The Democrats' election platform, approved at their national convention in August, describes the Democrats' economic philosophy as one of, "investing in American competitiveness" and insists that it is the "free market that has been the engine of America's progress."

Barack Obama's economic platform is elaborated in his "Blueprint for Change" which outlines a series of governmental measures to give the private sector more and more capital in order to "create new jobs." The "blueprint" promises to "bolster the competitiveness of U.S. manufacturers" and to ensure that America can "compete in a global economy." Obama will set up investment funds for "job creators" who will "identify and invest in the most compelling advanced manufacturing strategies." Obama also promises to increase government funding for corporate research and infrastructure through funding structures that aim to "improve efficiency, implement new technology and strengthen company growth."

In other words, Obama and the Democrats plan to take billions of dollars accumulated by the government through taxes on the working people and use these monies not to give jobs or income-support to the workers but to give business more capital. Again, our country's social capital is being turned over to a handful of private owners.

This economics, well-known as "trickle-down" economics, is a fraud from beginning to end. In the first place, providing the capitalists with investment funds, research and development grants, etc. will not create jobs but rather result in more unemployment. This is because the capitalists invest in new technology and equipment with the precise motive of sweating more and more work out of fewer and fewer workers. The capitalist goal is not to create jobs but to increase profits by increasing the exploitation of the workers.

Furthermore, Obama's economics turns truth upsidedown. It is not the capitalists who create economic growth and jobs. It is the labor of the workers which produces all the wealth of the country.

The Democratic party, just like the Republican party, is a party of capitalism, a party devoted to the exploitation of the working class. Furthermore, in the present conditions, the Democrats, just like the Republicans, are a party of the anti-social offensive which is attacking the rights of the workers and people all along the line.

Democrat Bill Clinton was the president who pushed through the North American Free Trade Agreement (NAFTA) and the so-called "welfare reform" which drastically slashed income-support programs for the poor and most vulnerable.

Democratic Party govenors and mayors all across the country are in the forefront of slashing public investments in education, in health care, in income-support programs and other vital social services.

The Democrats in Congress have voted again and again to fund the wars in Iraq and Afghanistan and to turn over billions of dollars for the militarization of our country.

In opposition to the economics of Obama and McCain, the economic program of the working class goes directly against the power and privilege of capital. The workers demand that the economic resources of the country must be directly in service of the people and that the first principle and very motive of economic life must be to guarantee the economic rights and well-being of everyone.

The workers must recognize that only the conscious and organized struggle of the people themselves can defeat the economics of the Republicans and Democrats. As a starting point, we must come out to demand:

–an end to the militarization of the economy
–an end to the robbery of the public treasury by the big monopolies
–full funding for public services and the public sector of the economy
–ironclad guarentees for all the economic rights of the people, including the right to a secure livelihood, the right to free comprehensive health care, the best possible education, to food, clothing and shelter, etc.