Mon, Oct 22 2007
...BUT THERE'S NO MONEY FOR KIDS HEALTHCARE
Bush asks for $46 billion more for wars
WASHINGTON, Associated Press - President Bush asked Congress on Monday for another $46 billion to fund the wars in Iraq and Afghanistan and finance other national security needs. "We must provide our troops with the help and support they need to get the job done," Bush said.
The figure brings to $196.4 billion the total requested by the administration for operations in Iraq, Afghanistan and elsewhere for the budget year that started Oct. 1. It includes $189.3 billion for the Defense Department, $6.9 billion for the State Department and $200 million for other agencies.
To date, Congress has already provided more than $455 billion for the Iraq war, with stepped-up military operations running about $10 billion a month. The war has claimed the lives of more than 3,830 members of the U.S. military and more than 73,000 Iraqi civilians.
Bush made his request in the Roosevelt Room after meeting in the Oval Office with leaders of veterans service organizations, a fallen Marine's family and military personnel who served in Iraq and Afghanistan.
The White House originally asked for $141.7 billion for the Pentagon to prosecute the Iraq and Afghanistan missions and asked for $5.3 billion more in July. The latest request includes $42.3 billion more for the Pentagon — already revealed in summary last month — and is accompanied by a modified State Department request bringing that agency's total for the 2008 budget year to almost $7 billion.
Bush said any member of Congress who wants to see success in Iraq, and see U.S. troops return home, should strongly support the request.
"I know some in Congress are against the war and are seeking ways to demonstrate that opposition," Bush said. "I recognize their position and they should make their views heard. But they ought to make sure our troops have what it takes to succeed. Our men and women on the front lines should not be caught the middle of partisan disagreements in Washington, D.C."
Democrats were not swayed.
"We've been fighting for America's priorities while the president continues investing only in his failed war strategy — and wants us to come up with another $200 billion and just sign off on it?" said Senate Majority Leader Harry Reid, D-Nev. "President Bush should not expect Congress to rubber stamp his latest supplemental request. We're not going to do that."
The State Department is requesting $550 million to combat drug trafficking in Mexico and Central America, $375 million for the West Bank and Gaza and $239 million for diplomatic costs in Iraq.
Top House lawmakers have already announced that they do not plan to act on Bush's request until next year, though they anticipate providing interim funds when completing a separate defense funding bill this fall. Bush asked lawmakers to approve the request before the holidays.
"We must provide our troops with the help and support they need to get the job done," Bush said. "Parts of this war are complicated, but one part is not, and that is America should do what it takes to support our troops and protect our people."
Congress already has approved more than $5 billion for new vehicles whose V-shaped undercarriages provide much better protection against mines and roadside bombs. It's likely that Congress will quickly grant $11 billion more to deliver more than 7,000 of the vehicles.
The delays in submitting the remaining war funding request were in part due to unease among congressional Republicans about receiving it during the veto override battle involving a popular bill reauthorizing a children's health insurance program.
The request also includes $724 million for U.N. peacekeeping efforts in the war-torn Darfur region in Sudan, $106 million in fuel oil or comparable assistance to North Korea as a reward for the rogue nation's promises to cease its efforts to develop nuclear weapons. Another $350 million would go to fight famine in Africa.
For the Pentagon, the latest request includes:
_$1 billion for military construction projects, including improvements at airfields and other U.S. bases in Iraq.
_$1 billion to expand the Iraqi security forces.
_$1 billion to train National Guard units.
All told, the $189.3 billion Pentagon request for 2008 includes:
_$77 billion for military operations and maintenance.
_$30.5 billion for to protect U.S. forces from roadside bombs, snipers, and other threats.
_$46.5 billion to repair and replace equipment that has been damaged or destroyed in combat or worn out in harsh conditions in Iraq and Afghanistan.
___Mon, Oct 22 2007
THANK YOU BUSHCO FOR DESTROYING THE MIDDLE CLASS
Living paycheck to paycheck gets harder
NEW YORK, Associated Press - The calculus of living paycheck to paycheck in America is getting harder. What used to last four days might last half that long now. Pay the gas bill, but skip breakfast. Eat less for lunch so the kids can have a healthy dinner.
Across the nation, Americans are increasingly unable to stretch their dollars to the next payday as they juggle higher rent, food and energy bills. It's starting to affect middle-income working families as well as the poor, and has reached the point of affecting day-to-day calculations of merchants like Wal-Mart Stores Inc., 7-Eleven Inc. and Family Dollar Stores Inc.
Food pantries, which distribute foodstuffs to the needy, are reporting severe shortages and reduced government funding at the very time that they are seeing a surge of new people seeking their help.
While economists debate whether the country is headed for a recession, some say the financial stress is already the worst since the last downturn at the start of this decade.
From Family Dollar to Wal-Mart, merchants have adjusted their product mix and pricing accordingly. Sales data show a marked and more prolonged drop in spending in the days before shoppers get their paychecks, when they buy only the barest essentials before splurging around payday.
"It's pretty pronounced," said Kiley Rawlins, a spokeswoman at Family Dollar. "It seems like to us, customers are running out of food products, paper towels sooner in the month."
Wal-Mart, the world's largest retailer, said the imbalance in spending before and after payday in July was the biggest it has ever seen, though the drop-off wasn't as steep in August.
And 7-Eleven says its grocery sales have jumped 12-13 percent over the past year, compared with only slight increases for non-necessities like gloves and toys. Shoppers can't afford to load up at the supermarket and are going to the most convenient places to buy emergency food items like milk and eggs.
"It even costs more to get the basics like soap and laundry detergent," said Michelle Grassia, who lives with her husband and three teenage children in the Bedford-Stuyvesant section of Brooklyn, N.Y.
Her husband's check from his job at a grocery store used to last four days. "Now, it lasts only two," she said.
To make up the difference, Grassia buys one gallon of milk a week instead of three. She sometimes skips breakfast and lunch to make sure there's enough food for her children. She cooks with a hot plate because gas is too expensive. And she depends more than ever on the bags of free vegetables and powdered milk from a local food pantry.
Grassia's story is neither new nor unique. With the fastest-rising food and energy prices since the 1980s, low-income consumers are stretching their budgets by eating cheap foods like peanut butter and pasta.
Industry analysts and some economists fear the strain will get worse as people are hit with higher home heating bills this winter and mortgage rates go up.
It's bad enough already for 85-year-old Dominica Hoffman.
She gets $1,400 a month in pension and Social Security from her days in the garment industry. After paying $500 in rent on an apartment in Pennsauken, N.J., and shelling out money for food, gas and other expenses, she's broke by the end of the month. She's had to cut fruits and vegetables from her grocery order — and that's even with financial help from her children.
"Everything is up," she said.
Many consumers, particularly those making less than $30,000 a year, are cutting spending on nutritious food like milk and vegetables, and analysts fear they're further skimping on basic medical care and other critical services.
Coupon-clipping just isn't enough.
"The reality of hunger is right here," said the Rev. Melony Samuels, director of The BedStuy Campaign against Hunger, a church-affiliated food pantry in Brooklyn.
The pantry scrambled to feed 5,000 new families over the past 12 months, up almost 70 percent from 3,000 the year before.
"I am shocked to see such numbers," Samuels said, "and I am really concerned that this is just the beginning of what we are going to see."
In the past three months, Samuels has seen more clients in higher-paying jobs — the $35,000 range — line up for food.
The Regional Food Bank of Northeastern New York, which covers 23 counties in New York State, cited a 30 percent rise in visitors in the first nine months of this year, compared with 2006.
Maureen Schnellmann, senior director of food and nutrition programs at the American Red Cross Food Pantry in Boston, reported a 30 percent increase from January through August over last year.
Until a few months ago, Dellria Seales, a home care assistant, was just getting by living with her daughter, a hairdresser, and two grandchildren in a one-bedroom apartment for $750 a month. But a knee injury in January forced her to quit her job, leaving her at the mercy of Samuels' pantry because most of her daughter's $1,200 a month income goes to rent, energy and food costs.
"I need it. Without it, we wouldn't survive," Seales said as she picked up carrots and bananas.
John Vogel, a professor at Dartmouth College's Tuck School of Business, worries that the squeeze will lead to a less nutritious diet and inadequate medical or child care.
In the meantime, rising costs show no signs of abating.
Gas prices hit a record nationwide average of $3.23 per gallon in late May before receding a little, though prices are expected to soar again later this year. Food costs have increased 4.5 percent over the past 12 months, partly because of higher fuel costs. Egg prices were 44 percent higher, while milk was up 21.3 percent over the past 12 months to nearly $4 a gallon, according to the Bureau of Labor Statistics.
The average family of four is spending anywhere from $7 to $10 extra a week — $40 more a month — on groceries alone, compared to a year ago, according to retail consultant Burt Flickinger III.
And while overall wage growth is a solid 4.1 percent over the past 12 months, economists say the increases are mostly for the top earners.
Retailers started noticing the strain in late spring and early summer as they were monitoring the spending around the paycheck cycle.
Wal-Mart and Family Dollar key on the first week of the month, when government checks like Social Security and public assistance generally hit consumers' mailboxes.
7-Eleven, whose customers are more diverse, looks at paycheck cycles in specific markets dominated by a major employer, such as General Motors in Detroit, to discern trends in shopping.
To economize, shoppers are going for less expensive food.
"They're buying more peanut butter and pasta. And they're going for hamburger meat," Flickinger, the retail consultant, said. "They're trying to outsmart the store by looking for deep discounts at the end of the month."
He said the last time he saw this was 2000-2001, when the dot-com bubble burst and the economy went into a recession after massive layoffs.
For now, low-price retailers are readjusting their merchandising and pricing.
Wal-Mart is becoming more aggressive on discounting. It announced Thursday it is expanding price cuts to 15,000 items, ranging from Motts apple juice and Progresso soups to women's fleece tops, heading into the holidays.
Family Dollar, whose food offerings were limited to candy and snacks until two years ago, has expanded its mix of groceries like fruit cups, cereal and such refrigerated items as milk and ice cream while cutting back on shoes. This summer the chain began accepting food stamps.
Food pantries are also getting creative. Samuels said her church, Full Gospel Tabernacle of Faith, just started offering free cooking classes to teach clients who are diabetic or have other health conditions how to prepare vegetables like squash. It's also offering free exercise classes.
"We are trying to make them health conscious," Samuels said. "It's not right to give them just anything. Our mantra is eat well and live well."All news articles and images provided under the Fair Use Notice.