IPS Blog

President Obama owned Governor Romney in their second debate on issues of foreign policy, women, immigration, and the 47 percent. He even leveled a fatal blow regarding Benghazi. Don't get me wrong: Mitt was no wimp, and Obama was no progressive, but Obama had the better plans, the better attacks, and the better handle on the truth than Romney.

Obama strongly called out the funny math of Romney's claims that he can lower taxes across the board and not raise the deficit. Mitt's only defense was: "Of course my numbers add up. I am Mitt Romney." He may convince Ann with that response, but such a defense does little to engender confidence in the rest of us.

Obama was aggressive on jobs, touting his added 5 million jobs and his support of high-wage, good jobs over winning the global race to the bottom apparently favored by Romney. Obama hit Romney over the head repeatedly with his tax-cutting record, while maintaining his position that the wealthy must pay more.

By contrast, Romney was evasive and inauthentic. He tried to get away with answering a question about equal pay for women with a strange explanation about asking women's groups to find qualified women for his Massachusetts cabinet. Mitt said that women could be hired if only employers would figure out that they also need time to cook for their families. Pay? Isn't the gratification these women gain from putting some Hamburge Helper into the bellies of their families pay enough?

In an equally evasive and puzzling response, Romney blamed single mothers and a failed federal sting operation in Mexico for assault weapon violence in the U.S.

Then came the knockout blow, something like this: "The President took two weeks to call the attack on the U.S. embassy in Libya a terrorist attack." "Governor Romney, I called it a terrorist attack the very next day." "No, Mr. President, you most certainly did not." "Candy, tell him...I did, didn't I?" "Uh...yes Governor, the President did say that. He is right. You are wrong. You are down for the count."

Boom.

Obama, for all his aggressiveness and better policy positions from Romney on jobs, taxes, women's health and economic issues and immigration, failed on the question of energy and the kind of revenue raising we need to get the country on track and to be the kind of country we want to be.

The incumbent almost channeled Sarah Palin with refrains of Drill Baby Drill. He agreed with Romney that the corporate tax rate is too high, and he again missed the opportunity to tell the truth that Social Security, Medicare and social programs don't need fixing, reforming, and slashing to reduce our deficit.

I still want to see Obama lead on the direct creation of jobs, and taxing financial speculation, dividends, and interest. I want to see him stand up and tell the truth: With the right priorities, we can spend far less on military, close corporate tax loopholes, and fund a transformative shift to an economically and environmentally more sound energy policy. I want to see him lead on real cost-control in a universal type Medicare-for-All health plan.

I want more than just a rope-a-dope surprise and a knockout punch. I want to hear the words: America Is Not Broke, we just have our priorities wrong. Then, I will be able to cheer a victory as something that is a victory for all of us, not just for a candidate's campaign.

Karen Dolan is an Institute for Policy Studies fellow. She'd appreciate it if the candidates could read the IPS report, America Is Not Broke.

This post originally appeared on Yes! Magazine's New Economy blog.

This fall, the U.S. Congress is going to wage a pitched, dragged-out battle over cutting roughly $120 billion a year to solve the so-called deficit crisis. Vital things like teachers’ jobs and Medicare could well get cut.

The Right is already launching new coalitions to push for an austerity budget, calling for cuts in “wasteful government spending,” including key safety-net programs like Medicare, Medicaid, Social Security, and food stamps. America has overspent, they say. America is broke. But at the same time, they are calling for an extension of the Bush tax cuts and ruling out cuts in military spending—both policies that will increase the deficit.

It doesn’t have to be this way. My colleagues at the  Institute for Policy Studies (IPS) have identified seven steps that, together, more than eliminate the deficit while making the country more equitable, green, and secure.

These proposals, from the IPS study called “America is Not Broke,” would also address the two deficits that author David Korten says do more to erode our society than the fiscal deficit does: our social deficits (rising poverty and inequality) and environmental deficits (starting with the climate crisis).

More Fairness, Less Deficit

Our first three proposals could bring in $329 billion a year; this alone would solve the deficit problem while helping to close the yawning inequality gap.

• 1.  Tax Wall Street: $150 billion per year. A tiny tax on stock and derivatives transactions, which several European countries are on track to adopt, would discourage Wall Street speculation, fill the hole in the deficit left by the Bush tax cuts, and leave plenty left over to fund lots of programs. The National Nurses Union and many other allies are fighting hard for this.
• 2.  Tax Corporations and Stop Tax Haven Abuse: $100 billion per year. The Financial Accountability and Corporate Transparency coalition has pointed out that one of the main ways that corporations avoid paying taxes is by declaring their profits in overseas tax havens like the Cayman Islands.  
• 3.  Tax the Wealthy Fairly: $79 billion per year. Our rigged tax code lets CEOs pay a lower tax rate than their secretaries do (as Warren Buffett keeps pointing out). The proposed Fairness in Taxation Act (HR 1124) would address this by adding five additional tax brackets for incomes over $1 million.

These three policy changes would go a long way toward making our society more equal, and that means better health, too. There is a terrific body of global evidence, a lot of it compiled by British researchers Richard Wilkinson and Kate Pickett, that more equal societies are much healthier. People at all income levels live longer; they are more fulfilled; and there is less violence. The United States, a relatively equal society as recently as the 1970s, is now off the charts in terms of wealth and income inequality. It doesn’t have to be that way. Just as we created a more just and vibrant economy and a strong middle class through fair taxes between 1940 and 1980, we can do it again through progressive taxation.   

More Green, Less Pollution

The second source of revenue would make the economy more green, a key imperative in a world where the environmental crisis is now as deep as the economic one. We found two simple ways to raise revenues and help save the environment.

• 4.  Tax Pollution: $75 billion per year. A tax on the carbon content of fossil fuels would reduce our dependence on oil while cutting air pollution and emissions of greenhouse gases. And, as economist Robert Frank pointed out on August 25 in The New York Times, “News that a carbon tax was coming would create a stampede to develop energy-saving technologies.”
• 5.   End Fossil Fuel Subsidies: $12 billion per year. This call should unite left and right. Why would anyone want to maintain a giant government subsidy to an industry that is the world’s major contributor to fossil-fuel emissions? 350.org has made this a centerpiece of their work. We should be able to win this.

More Savings, Less War

Finally, there are simple ways to cut the military while making the country and the world more secure. More than half of government discretionary spending now goes to the military. Congress has long avoided cuts, in part because they equate military spending with jobs, but IPS has pointed out that almost every other industry employs more workers per dollar than the military. Plus, there is now bipartisan support for two sets of significant cuts.

• 6.  End Military Waste: $109 billion per year. A broad spectrum of experts has found over $100 billion a year in waste that could be eliminated with no sacrifice in security. Three recent commissions, two of them bi-partisan, have recommended roughly $1 trillion in military cuts over 10 years.
• 7.  Close a third of our overseas bases and our Iraq operations: $21 billion per year. Over two decades after the Cold War ended, the United States still maintains roughly 1,000 military installations in other countries. A majority of the President’s own deficit commission, which includes three Republican senators—the National Commission on Financial Responsibility and Reform—backed a proposal to close one third of our overseas military bases.

These seven simple steps would raise close to $550 billion a year. They would quickly erase the fiscal deficit  and return the country to a healthy budget surplus. There would be hundreds of billions left to invest in key sectors that could make the country more secure, more green, and more equitable: care jobs, green jobs, infrastructure jobs.

In other words, this plan could help erase the nation’s dangerous social and environmental deficits.

Many groups—from Jobs with Justice to National People’s Action to the AFL-CIO—are organizing to counter a push by the Right to use the deficit crisis to shred social programs and our nation’s safety net. Let’s up the ante and spread the message. America is not broke. We have plenty of resources to rebuild shared prosperity in the U.S.

If ever an online video should go viral, it is Gasland director Josh Fox's vital new 18-minute gem, The Sky Is Pink.

It should become a widespread hit because:

1. It's brilliant.
2. It's funny.
3. It will scare the crap out of you and make you want to take action.

The film's title comes out of the mouth of a public official in Pittsburgh who, in Michael Moore comedic-style language, talks about how the media will report lies — "the sky is pink" — unless someone is out there to regularly rebut them. And if you say, "The sky is blue," the media will report this as a debate worthy of coverage.

What's brilliant about Fox's mini-documentary is that he both exposes the disinformation campaign being waged by the natural gas industry — and its allies in (very) high places — and reveals, in leaked documents and PowerPoint presentations, that the industry is fully aware that its fracking wells are contaminating water. Formally called hydraulic fracturing or shale-gas drilling — fracking requires large quantities of water and a cocktail of toxic chemicals. By poisoning drinking water and farmland, it endangers public health. 

The natural gas industry lies. Its executives know they lie. And we swallow their lies. Literally.

As someone who has wrestled with the climate crisis for over two decades, this mini-doc comes at a critical time. The crisis in journalism — with investigative journalism increasingly rare, and corporate control of the media at unprecedented heights — is one reason the Earth's climate is increasingly unstable. Tragically, we may already have reached critical tipping points, with dire consequences for everyone.

Watch this new film and weep for our water, our democracy, and our future.

Then spread the word and take action. Here are some great groups to support who are fighting fracking, working on media democracy issues, and trying to get the word out on the environmental crisis.

• Frackaction
• PRWatch
• Center for Investigative Reporting
• Shaleshock