Obama May Have Just Lost The 2012 Election

America is in desperate times. While the corporate oligarchy tightens it’s grip over power using conservative politicians and Tea Party boots on the ground, the situation continues to spiral out of control in nearly every possible measure.

Every rational reform, from Wall St. to Health Care, has been weakened to the point where it is arguably doing more harm than good, and those with the political will to fight for the strong change the country needs are continually sidelined by the leadership of both parties and the corporate main stream media (MSM). The final blow to working with the center-right (compared to other Western nations) Democratic leadership died today when Obama announced that he was capitulating on extending the Bush tax cuts for the rich. This was the last straw for his strongest supporters, he has now lost progressives and likely the 2012 election as a consequence.

Politics aside, this is another disaster for the country. It spells a continuation of fiscal conservative policy that demands ever greater sacrifice from working Americans and swelling deficits to reward those who are most well off. The rich have reaped the vast majority of every economic expansion over the last 30 years, including the top 1% gaining two thirds of it in recent years. The top 0.1% have seen a 94% income growth since 2002. The richest of them all (the top 400) have seen an astounding 476% increase since 1992. The richest 74 people made as much as the 19 million lowest-paid people in America.

Have no doubt, class warfare is being waged in America, waged by the rich and their minions against the poor and middle class, and its a massacre. The top 1% get 23.5% of the national income, the greatest portion since the Great Depression in 1928 (23.8%).

The Republicans, fresh off of the most successful astroturfing campaign in the history of the country have been emboldened to seek even greater concessions, and dictated the MSM narrative with an immense degree of effectiveness during this first major showdown between progress and regress. They have called back to the rhetoric of their demi-god Reagan, saying that the only path that can possibly benefit the country is by helping the rich, but as shown below, Supply-Side (also known as Trickle-Down or Voodoo) Economics has failed miserably.

Worse yet, by caving into conservative pressure tactics, Obama will be allowing another further expansion of deficits, something that these very conservatives will turn around and attack him with in 2 years. The way it stands, keeping all the Bush tax cuts for another 2 years will add $340 billion to the national debt, $140 billion of that just for tax cuts for the rich.

This was a golden opportunity for Obama to take a stand against those who have caused so much economic damage to the country and stand for ordinary working Americans. 93% of the current national debt was created by fiscal conservatives like Reagan and Bush, and adding to this is not just an act of futile appeasement, but a direct betrayal of the will of the American people.


Not all Democrats have cowed so easily. The Democratic Party in the US House passed an extension of tax cuts for anyone with an income less than $250,000 per year by a vote of 234 to 188, but only by using a procedural maneuver that cut the ability of Republican obstructionists to insert an amendment that would have rendered the bill inert. This measure then moved onto the senate where the Democratic leadership failed by a vote of 53-37 (60 needed) to overcome yet another in a record number of filibusters by the conservatives. Why this bill was not designed to use the reconciliation process where a simple majority vote suffices, as was used in the passage of both Bush tax cut packages is unknown.

Considering the massive levels of wealth consolidation and increasing economic disparity in America, making a stand on ending the Bush tax cuts for the rich should have been an easy sell. The average top tax rate in the United States since 1917 is 61.4%.  Currently the highest rate of income tax the rich have to pay is 34.5%, which is 26.9% below the average.

The Republican attack machine was on message during this whole debate, forcing President Obama to make a choice between allowing all the Bush tax cuts expire or temporarily extending them. Either way, it will give them further ammunition against the man, either by taking the position that “Obama raised taxes” or “Obama increased the deficit”. Further, they were holding unemployment benefits hostage, and trying to include not obstructing the new START Treaty in the process.

The final deal has a 24 month extension of all tax cuts, including to the rich for a 13 month extension of unemployment benefits for Americans unable to find jobs in this dismal economy. To add even more insult to this injury, the Obama-GOP tax scheme drops planned estate taxes from 55% to 35%, and only for houses estimated to be worth more than $5 million.

This plan now must be passed by both chambers of Congress, and the best hope to scuttle it comes from the House, who were shocked to learn of the estate tax concession. With some bold stands by members and a probable filibuster by Senator Bernie Sanders (I-VT), it might still be possible to allow the whole set of Bush tax cuts expire as scheduled, which would mean a restoration of tax rates for all working Americans on January 1st, 2011, and put the ball back in the court of the Republicans, who would then be forced to try to veto tax cuts on the poor and middle class, or try to force tax cuts for the rich in a bill of their own.

Regardless of the outcome of the Obama-GOP Tax Scheme, his surrender on this spells doom for strong support from the movement for change and reform that was instrumental in getting him elected by a landslide in 2008. Obama gave up on the ARRA, allowing 40% of it to be tax cuts when what was needed for job growth and economic stimulation was direct spending, particularly on green energy and infrastructure projects. Obama didn’t even try for a single-payer health care system, and eventually sold the public-option, the only balancing factor to corporate greed down the river. Obama caved on the most potent aspects of financial sector reform. Obama increased deportations of hispanics, failed to issue an executive order ending DADT, has 50,000 troops left in Iraq, gave up on the EFCA, has not closed Guantanamo or ended torture, continues domestic espionage, allowed the war on drugs that has caused the US to become the world’s leading jailer to go on, and limited access to abortion. Not that there haven’t been a host of minor things Obama has done, but on every single major battle he has surrendered to the corporations, rich, and conservatives. Every. Single. Battle.

What America needs are radical solutions and bold leadership, not the same policies that put our nation in the situation it is in today. Instead of FDR we got Herbert Hoover, and the country is paying the price. If Obama survives a primary challenge by Howard Dean, Russ Feingold, or Al Grayson, he will still not have the energized support needed to counter the Tea Party legions backed by lavish corporate front group funding and an ingenious conservative establishment, and will likely not be reelected in 2012. The corporate oligarchy keeps tightening it’s grip.

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38 Responses to Obama May Have Just Lost The 2012 Election

  1. +8 Vote -1 Vote +1retroscifigeek
    December 7, 2010 at 12:41 am

    IMHO Obama is caving too much to the Republicans. He needs to go back to school to learn how to negotiate. I voted for him in 2008 when all my family members voted for John McCain. I took a lot of heat from my family and my conservative community. Obama has consitently kept Republican ideals in place that were started under Bush. I for one am really disappointed in how things are turning out. Even the healthcare bill is not anywhere close to what liberals wanted.

  2. +20 Vote -1 Vote +1Liam Fox
    December 7, 2010 at 1:20 am

    It no longer matters, to any great extent, or real importance, who gets elected. The entire system has been corrupted by corporate money. The economy no longer serves the people, the people serve the economy. Their elected representatives do little more than manage the population while funneling as much of the wealth as possible to the corporations that got them elected, keep them in office, and pad their packets. There are two parties, one policy, and only 1% of Americans who have any real representation in this government. The only possible solutions must include complete and fundamental change that go beyond who simply sits in government to what form of government the country has. If the left doesn’t wake up and start making some choices, and creating those changes, the corporations will continue tightening their grip and it’s going to be done for them, and to them.

    • +5 Vote -1 Vote +1Ole Ole Olson
      December 7, 2010 at 1:24 am

      Wow dude, that’s a stellar response. You better copyright this before I steal it: “There are two parties, one policy, and only 1% of Americans who have any real representation in this government. “

      • +5 Vote -1 Vote +1Liam Fox
        December 7, 2010 at 7:40 pm

        Ha!. Thank bro. It’s all your’s . I’m just going to start a new movement… the 99% . We’ll join up with the 99ers and kick some ass.

    • +1 Vote -1 Vote +1rj
      December 7, 2010 at 7:41 am

      Great truth there Liam,
      I’m thinking a return to constitutional fundamentals via the ballot box may be just the thing needed to save this republic before the other option of guns ho is needed.
      A great many common sense conservatives in this country are finally awake and may be able to change course before it is to late.
      How is it that fiscal conservative persons who simply want less govt intrusion, less taxes, less international involvement, secure borders, and rational immigration are the enemy?
      The whole green movement is simply another chance for corporate giants (GE, Siemons, chevrolet, etc…) to rape the tax payers in this country. Feeding this irrational movement is the media mogals which are quickly being made irrelevant by the net, which our govt is actively pursuing to requlate so they can squash free speech.
      Over all though it may be too late due to the corporate control of a large portion of the food production and processing in this country, those who control the food control the people. A starving population is easy to control.

      • +2 Vote -1 Vote +1Liam Fox
        December 7, 2010 at 7:34 pm

        Much, not all, but much of what you say I agree with. I hate political labels and party B.S., but my political theories are best described as ‘green-anarcho-syndicalist’… try and fit that on a bumper sticker..lol. It’s more similar to environmentally responsible, co-operative libertarianism than it is to either of 2-in-1 parties that exist. My point is, that leaving labels aside, I think we need to get over this right v. left mind set. In American political terms, you and I are thrown at opposite ends of the spectrum, ( I think you’ve identified yourself as a libertarian, excuse me if I’m mistaken) yet, as I said, I think there is more in common to build on than there is with the ‘light-opera-drama’ that passes as the current political model in this country. The limiting of corporate influence and political power being a key one, along with the removal of an authoritarian, big-brother state. Perhaps some of us need to change the linear model of right left and center, close it into a circle, and start discussing new alternatives rather than picking from old models. Just a thought.

        • +2 Vote -1 Vote +1Eagle Driver
          December 8, 2010 at 7:55 am

          rj your ideas over on the “Empire failing” article and Liam’s idea of a circle instead of L/R/C are brilliant. The only way we can get new ideas is to put new (and younger) people in power. I’m an old dog and it is time the the young to replace the old ideas from old dogs. Liam thanks for your articles, may not agree with you but I do listen and change.

          Ole Ole Olson same back at you as Liam. You young studs keep writing. Hold the government’s feet to your fire.

          rj – run for president with your ideas.

        • Vote -1 Vote +1rj
          December 9, 2010 at 8:26 am

          circular thinking instead of linear, hummm…there may be some room here for compromise…I like it…I could be described as libertarian, heavily fiscally conservative but not socially liberal, just dont really care much about what others do as long as they are willing to live and let live.

    • +1 Vote -1 Vote +1Juan Contreras
      December 7, 2010 at 9:00 am

      Dude I love your name. I named my son Liam. I fully agree with you fully. I hope my son grows up to be as smart as you.

      • +2 Vote -1 Vote +1Liam Fox
        December 7, 2010 at 7:36 pm

        Thank you very much.

  3. +1 Vote -1 Vote +1Ole Ole Olson
    December 7, 2010 at 1:58 am

    Editor’s note – advertising is not allowed on this discussion board. Any links trying to sell something will be deleted immediately.

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  5. Vote -1 Vote +1Don
    December 7, 2010 at 8:25 am

    Why does the media (even this site)spend so much effort talking about tax cuts, tax increases, unemployment benefits, when the biggest monster to the “national debt” is our out of control federal government spending. Cut the damn thing in half, before states start splintering off.

    • +2 Vote -1 Vote +1Duglarri
      December 7, 2010 at 8:42 am

      But it’s under-taxation, in the form of those cuts, that is the cause of that big debt. That’s the point: the very rich got away with not paying their share for the past twenty years. The super-rich basically stopped paying taxes. If they had been paying taxes all that time there would be no debt.

  6. +1 Vote -1 Vote +1Duglarri
    December 7, 2010 at 8:38 am

    I think you’re right. When he was elected the a**hole Republicans were in shambles and looked like being in the wilderness for a generation. But lo and behold Obama reached out and gave them a hand up- which they gleefully grasped and hacked off with the nearest machete. So he offered them the other hand.

    Every stage that has called for attack, he’s surrendered. It’s appropriate to note the date: if Obama had been in charge in 1941, we might have heard this:

    “December 7th, 1941, a date that will live in a grey area, in which compromise and good will toward foreign powers is tested. But our will is strong, and we will talk, and discuss, and reach a compromise, hopefully not involving giving up more than Alaska and California, as that would be just bad.”

    “From this date, the United States is in a state of discussion with the Empire of Japan.”

    • +3 Vote -1 Vote +1Ole Ole Olson
      December 7, 2010 at 3:49 pm

      Duglarri, colorful analogy, but you are correct. He lost many when he renewed FISA and many more when he wouldn’t stand behind a strong, robust public option in health care reform, and even more now. The man is an excellent speaker, but his words will increasingly fall on deaf ears if they are not backed up by real actions.

      • Vote -1 Vote +1drklassen
        December 8, 2010 at 11:25 am

        FISA and fully embracing the Bush executive abuses are what lost me. Then he added the power to, at merely his word, assassinate US citizens.

        Obama is nothing more than a despot.

        And since he failed to investigate/prosecute torturers, his also an accessory to war crimes.

  7. Vote -1 Vote +1Brad
    December 7, 2010 at 8:58 am

    You’re right about class-warfare being waged, and you’re waging it. If you really want to help our economy, demand less gov’t control not more. Gov’t, despite it’s best intentions, only causes more problems.

    • +1 Vote -1 Vote +1common sense
      December 7, 2010 at 12:13 pm

      Amen, government didnt make this country great, people with ideas and the freedom to turn those ideas into businesses to create jobs, thats what made this country great. When government needs something made, they go to private companies, if government was so great at problem solving they’d do it themselves.

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    +2 Vote -1 Vote +1Obama May Have Just Lost The 2012 Election

  9. +4 Vote -1 Vote +1Neosopheus
    December 7, 2010 at 11:56 am

    “And that government of the people, by the people, for the people, shall not perish from the earth.” – A.Lincoln. It seems in this day and age it would be more accurate to say “…of the corporation, by the corporation, for the corporation…”

  10. Vote -1 Vote +1Geno
    December 7, 2010 at 1:26 pm

    I guess the Republicans don’t care about middle America any more as they appear to always be defending the rights of the richest 1%. If the rich can’t get tax breaks no one will, as they were willing to make exceptions and let it all expire rather than compromise, which is what the President had to do or we would all be F@#$ed.

  11. -1 Vote -1 Vote +1Tamra M Burgess
    December 7, 2010 at 3:08 pm

    butttt the good news is TEAPARTY IS DEAD, DONE, NAIL IN COFFIN!!! teaparty sat quietly and pushed for the Bush tax cuts which increase the deficit. and what were those fiscal clowns complaining about ALLLLL summer long: Obama’s gonna destroy the country, the deficit is out of control.

    and Sarah Palin & Glenn Beck are pretty much done, nothing left to sell to the lemming sheep who are buying the fear because Obama & Dems have caved to GOP each and every time.

    oh and Jay Rockefeller is NOT a Democrat. not sure why he hasn’t switched parties yet. I guess his $$ ties are too hard to transfer over to GOP. but he should either change his name to Cheney or Rove, it’d be more honest, or change his party, which would make him more credible.

    so it’s Democrats MINUS Jay Rockefeller

    • Vote -1 Vote +1Ole Ole Olson
      December 7, 2010 at 3:51 pm

      Agreed, I should write an article about the mysterious disappearance of the Tea Party during this whole debate.

  12. +1 Vote -1 Vote +1boomer
    December 7, 2010 at 5:20 pm

    america…….rest in peace,,,,, we are doomed

    • +1 Vote -1 Vote +1stellingsbox
      December 7, 2010 at 8:42 pm

      Amen boomer.

  13. -2 Vote -1 Vote +1Andrew
    December 7, 2010 at 11:12 pm

    After seven or eight decades of gradually increasing government intrusion the definition of radical change has….changed.

    Now it’s cutting taxes, cutting entitlements, cutting government programs, reducing government interference in the free market and Obama, ever the beacon of hope and change is getting with the program.

    He’s signed on for tax cuts, he’s already on board to take the legs out from under the public education system and if it’s what it takes to get elected to a second term, he’ll join the board of the NRA.

  14. Vote -1 Vote +1Eric
    December 7, 2010 at 11:13 pm

    I think you’re letting the GOP media get to you. What no one seems to mention is how Obama actually is probably the most willing to work for the people that we’ve had in a long time. But! Both democrat and republican reps can’t get their heads out of their money grubbing asses to realize that and so he really has both parties going against him even though he’s pretty logical on a lot of the things he talks about. Blame Congress if you want to blame someone for the state of affairs.

  15. +1 Vote -1 Vote +1Keven
    December 7, 2010 at 11:14 pm

    Besides, where are progressives going to go if Obama wins the nomination? Sit on their hands?’ I’m afraid that a lot of them, especially the young ones, will probably not bother to vote, as was the case in the midterms. Obama is selling out his base right and left, and those who voted for change are becoming demoralized.

  16. Vote -1 Vote +1Mark
    December 7, 2010 at 11:15 pm

    Great work, as always:-) And I hear you but he got unemployment for a lot longer than anyone thought and we need that (or rather, the economy and a lot of people need it). If he let the R ruin the economy for a point, none of us would be too happy either. Who would we run in 2012 who could win over indies and still fight off the GOP in a way that would satisfy the base? And frankly he’s gotten more of his agenda passed than any other President in a good many years, and he’s done it in just two years. I think in the long view he’s doing great things for the country.

    • Vote -1 Vote +1Ole Ole Olson
      December 8, 2010 at 1:31 am

      I actually agree. Obama inherited a shit sandwich. He has done the best he could to solve the difficult situation, despite intractable conservative/corporate opposition.

      The problem is this: if Obama cannot stem the slide into yet further policies that make the situation worse, who can? We might be past the point where *anyone* can, which means evolution is no longer possible and revolution is necessary. I hope that is not true, but it is looking increasingly probable.

  17. Vote -1 Vote +1Fernanda
    December 8, 2010 at 9:06 am

    I really enjoyed your article. Have you thought about publish their articles, posting summaries of them in http://www.addlinksto.com? I believe that would help further promote the great posts on your blog! Thanks!

  18. -2 Vote -1 Vote +1CitizenPlusPlus
    December 8, 2010 at 9:47 am

    Fair Tax: Unlimited Savings + Salary, Spending, & Estate CAPS @ $500,000/Year apportioned to municipalities.

  19. +2 Vote -1 Vote +1Tom Degan
    December 9, 2010 at 4:36 am

    Profits are up to record highs. So what – you may well ask – are the corporations doing? They’re decimating the work force. Consider this just for a minute:

    When a corporation behaves this irresponsibly, it wrecks havoc on society. This is not merely my opinion in fact it’s kind of a no-brainer. Call it Economics 101

    A corporation that behaves this irresponsibly should be seized by the people. If you’re honest with yourself, that’s not such a revolutionary idea. Think about it for a minute or two. What would we do to a lone kook who was causing so much disruption within his community by means of arson, bombings etc. that his actions put hundreds – thousands – of his fellow citizens out of work? Again, this is another no-brainer – we’d throw him in prison.

    Why should a corporation be allowed to take advantage of our free enterprise system for a period of years and then be allowed to dump the very workers that allowed it to accumulate its treasure? Especially when the treasure of which I speak comes out of the pockets of regular consumers who are adversely effected when they dump – like trash – their work force. Its very greed causes much disruption and heartache within the the local (and national) community.

    And notice that I refer to this proverbial corporation as “it”, not “he” or “she”. I’m not sick enough to refer to a corporation as “a person”.

    When a corporation does so much damage to society, how come it cannot be legally seized by the state to keep it from committing further economic carnage?

    Why is this allowed to occur?

    http://www.tomdegan.blogspot.com

    Tom Degan

  20. Vote -1 Vote +1Yung yots
    December 9, 2010 at 9:45 am

    LOL, not to worry, he will throw a speech at it and make it all well lol

    http://www.privacy-solutions.edu.tc

  21. Vote -1 Vote +1Lewis Poretz
    December 9, 2010 at 3:12 pm

    interesting video from Mary Kate Scott, a leader in understanding the issues and opportunities facing the health-care industry.

    video –> http://bit.ly/ConsumersGetSmarter

    HIGH QUALITY ADVICE

  22. Vote -1 Vote +1Chris Crieta
    December 10, 2010 at 12:35 am

    Yes, if Republicans have a spine the Bush across-the-board-tax-cuts will become permanent, and at the same time we will make a balanced budget an amendment to the U.S. constitution (and then we’ll make it a crime to overstay a visa).

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