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Faced with gaping deficits, some desperate governors slashed payments to hospitals and doctors, or refused to pay for trips to the dentist or oculist.
Yet, as Anwyn Crawford notes, liberal commentators enthusing about the speech paid very little attention to Gillard's role in passing, on the very same day, the Social Security Legislation Amendment (Fair Incentives to Work) Act 2012, a bill slashing slashed payments to single parents.
Despite local reviews claiming "NZ Firm Leads Online Video Advertising Revolution," BuzzShed has slashed payments after discovering failed models don't get any better with age.
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Even more commonly, states have slashed payment rates to hospitals.
Medicare, the federal health programme for the elderly, will slash payments to doctors by nearly 30%.
Perhaps now that the Congressional Budget Office has shown that slashing payments for home care hurts patients and doesn't save money, Congress will begin to listen to family caregivers.
It surely represents the most aggressive attempt to drive down the living standards of the poor since the second-ever Labour government was destroyed in 1931 after an attempt to slash payments to unemployed people and wages.
The president will also challenge Congress to offset the high costs of two actions repeatedly approved by lawmakers and presidents — one prevents the alternative minimum tax from annually hitting many middle-class households rather than only the affluent taxpayers it was intended for, and the other blocks a law that would slash payments to doctors who treat Medicare patients.
"After spending the best part of a year failing to win parliamentary support for its co-payment the Abbott government is now trying to slash payments to doctors so that they are forced to do the government's dirty work," the Greens senator Richard Di Natale said.
Rather, Medicare has cut costs by deploying the economic equivalent of leech-therapy: slashing payments to providers.
The cuts involve slashing payments to doctors and hospitals for the medical care they provide to seniors, and decimating the private option Medicare Advantage program that close to one-fourth of seniors have chosen for their coverage because it gives them a better deal.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com