Archive for the ‘house’ category

Should The Progressives Speak Now?

March 25, 2015

Republicans in both the Senate and the House have issued budget proposal outlines. While slightly different, the GOP proposals share the belief that Government expenditures should shrink, the Affordable Care Act should be repealed, and in the House version, Medicare spending should be capped with the introduction of vouchers. Both proposals predict that magically the economy will boom and life will become better for everyone. Hmmm.

Regrettably, it is no clearer than with these budget proposal that everyone is entitled to their own opinion but not to their own facts. There are serious problems in the American economy and the GOP ideas do not deal with them.

Income inequality data shows that average wage earners’ income has been stagnated (for 30 years or so) while the income of the top 2% has grown handsomely. Without more even income distribution, the average earner will not be able to purchase as many goods and services from business as they do now. In time following the GOP script, our economy will shrink, not grow.

Bridges and roads, the backbone of business, are woefully in need of repair and maintenance. Without substantial investment, getting goods to market or for consumers to easily travel to services will become much more difficult. Undertaking the massive investment to prevent this will require substantial expenditures, something the GOP is reluctant to fund due to their “no new tax” pledge.

Standardized tests continue to show American K-12 education lagging over 15 other modern industrial countries. While the path to improving our students’ performance is not agreed upon, abandoning the “Common Core” curriculum and instead following the paths of Alabama, Mississippi, and South Carolina sounds more like a race to the bottom.

And whether we want to recognize it or not, the cost of healthcare services is beyond the reach of all Americans but the top1/2 of 1%. Without the aid of health insurance, normally provided by employers, few Americans could afford any healthcare at all. So the notion of repealing the Affordable Care Act, without an equally affordable alternative appears wrong headed at best and cruel at the worst.

So the question is, should Progressives speak now?

I guess the answer is “it depends”.

It will serve of little value for Progressives to only point out the obvious, the GOP plans are grossly unfair and will almost certainly not deliver their promises. Progressives, if they choose to speak, must address the facts.  Progressives must offer remediation ideas that provide a pathway to a fairer and more stable future state. Here’s why.

The business world has changed.  American no longer lives in the world of the wild frontier, the gilded age, or post World War II. Globalization and wide spread use of qualify principles insures that goods (and many services) can be produced anyplace in the world where the economics dictate. In and of itself, this will continue to drive down wages. Simply paying workers more (without commensurate productivity gains) will only lead to inflation. Sharing productivity gains liberally with workers, however, will have a very positive impact upon real average wages.

The “average” wage earner must acquire new skills and training in order to fill better paying jobs of the 21st century. Without the new skills and training, workers will be relegated to “minimum” wages, part time hours, and a world of few benefits.

Conservatives may choose to think it helpful to remove entitlements like Medicaid, Medicare, or social network expenditures thinking these reductions would motivate Americans to “pull themselves up by the boot straps” (the way it was done in the past). The GOP, however, will see their hopes fail. The world has changed.

Progressives, on the other hand, who call for these programs to be left alone and even new programs added for training and skill development are just as off base… unless funding is addressed. Tax code reform (a GOP recommendation) offers a route to increasing the tax revenue flow even while lowering certain tax rates.

Probably the biggest opportunity to reduce Government spending and eliminating the deficit lies in reducing the reasons Medicare and Medicaid cost so much. The GOP method appears to be based upon capping the Government’s portion and forcing those without generous business supplied health insurance to pay more. Over time, much more.

The GOP’s budget proposals call for no action to control and reduce the actual healthcare cost. With over two dozen other modern industrial countries experiencing health care delivery at half the cost per capita and equal or better outcomes as the US, there is clearly food for thought in a fairer approach to dealing with our deficit.

Maybe that will come up in a future Ted Cruz speech?