White House and Congress Link Gulf Coast Aid to Deep Cuts in Social Programs

Interview with Max Wolff, economist at the University of Massachusetts, conducted by Melinda Tuhus

Hurricane Katrina exposed the face of grinding, endemic poverty in America, especially among people of color. After the Bush administration's much criticized response to the killer storm, the president responded by committing up to $200 billion needed to rebuild New Orleans and the Gulf Coast. But the spending priorities of the White House and Congress could increase poverty among the very population most affected by the hurricane.

Meanwhile, the war in Iraq has cost about $200 billion to date. Tax cuts favoring the wealthy are scheduled to take more than a trillion dollar-bite out of the federal budget. Yet, in the face of the Gulf Coast disaster, President Bush and the Republican leadership in Congress oppose any effort to scale back tax breaks. Republican leaders in Congress have recently cautioned against spending a large amount on Gulf Coast reconstruction, and have proposed massive cuts in social services -- but not the military -- to offset relief spending. And, in response to the latest global disaster -- the earthquake in Pakistan - Bush immediately pledged $50 million in aid with more promised to President Pervez Musharref, a staunch U.S. ally in the Washington's war against terrorism. Many observers are now asking where will all this money come from?

Between The Lines' Melinda Tuhus spoke with Max Wolff, an economist at the University of Massachusetts. He talks about all the zeroes being tossed around in Washington, and the real world consequences of various tax and spending proposals.

Read Max Wolff's commentaries online at www.PrudentBear.com. In November,Wolff will be launching a new website at www.globalmacroscope.com

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