Obama’s Lifeline: For a Change, a Stimulus Plan That Actually Helps the Poor and the Sick


Republicans took to the Sunday morning news shows to express their “concern” about parts of the stimulus package presented by the Obama administration last week. House Minority Leader John Boehner declared that he would vote no “if it’s the plan I see today”—a pretty idle threat, since even if he takes his entire party with him, the Democrats still have nearly an 80-vote margin. In the Senate, however, two Republican votes are needed to create a filibuster-proof majority, which might at least slow the package down and could force some compromises.

There’s good reason for the Republican resistance. While it makes numerous concessions to favored conservative approaches–lots of public-private partnerships that will allow the private sector to cash in, tax cuts for businesses and the middle class, and no immediate end to the Bush tax cuts (which will expire on their own in 2010)—the $820 billion stimulus package also includes some dramatic increases in support for the nation’s social welfare programs.

With this package, Obama begins the process of reversing cutbacks initiated by Reagan and carried forward by the two Bushes, with some help from Clinton’s welfare “reform.” There may still be plenty of holes, but with this plan, the new government confirms that has some responsibility for providing a safety net for its poor and disabled, its children and elderly. To see the magnitude of the shift, it is only necessary to glance at the last budget drawn up by President Bush, for fiscal year 2009: In the midst of the growing recession, it had yet more cuts to the social welfare system, reducing already inadequate health and feeding programs for the most vulnerable Americans.

Here are some of Obama’s initiatives—not quite the New Deal, but quite a new deal compared to what we’ve grown used to over the past 30 years:

* As unemployment grows, more and more people lose their health insurance and turn to Medicaid. State budgets already are in desperate straits, and can’t possibly shoulder this added burden. Obama would pump federal money into state Medicaid budgets as well into the program providing for health insurance for children.

* In addition, Obama wants to shore up existing health insurance coverage for people losing jobs by extending COBRA and underwriting part of its cost through tax rebates. COBRA is a program that enables people losing their jobs to continue their health insurance if they pay for it. Obama wants the federal government to partially subsidize these payments, and also gives some low-income unemployed people access to Medicaid.

* The president’s plan proposes to extend unemployment benefits through December 2009 and increase weekly unemployment insurance benefits by $25.

* The stimulus package would incresasing food stamp benefits for the 30 million people now in the program, and provide support for food banks, school lunch programs, and the WIC program that provides for mothers and infants.

* Obama’s plan would give 7.5 million blind, disabled, and aged Americans an immediate $450 by increasing—on a temporary basis–Supplemental Security Income (SSI) benefits.

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