After a few weeks hiatus from politics, and a few weeks of travel, family, holidays, etc….I found myself thinking on New Year’s Eve, 2008. At that moment every year we get the opportunity to think about how we got where we are, how we can improve ourselves and how we can have a positive impact on the world around us.
2008 left America in the deepest recession since the Great Depression in the 30’s. A myriad of problems left by the last administration that have already led to a near economic collapse have barely begun to be addressed. It’s tempting to get cynical and lash out at the details of what our new administration has done and will do, instead of seeing the big picture and looking ahead. In times of stress, however, Americans tend to pull together.
I prefer to think of these difficulties as an opportunity not only to make significant changes in our society, but also in the way we think about our society. Piecemeal, patchwork, incremental plans won’t be enough to solve the problems that our country faces. Only a new vision can erase the failures of the past eight years. The last time America faced such a challenge was in the 1930’s, and out of that came some of America’s boldest policies. Our 21st-century ideas must be as progressive and innovative as the ones that led us into the last half of that century. We need to restore confidence in our government through transparency, fairness and equity. Our economy must be enabled, or forced, to grow in a sustainable way. We need to put our resources into helping those most in need within our borders, and elect representatives that represent the desires of our community for a safe, sustainable, forward-looking society.
So, how do we do that? First let’s take a look how we got here. Hopefully we the people and our leaders can learn from experience. Everyone knows what a disaster the Bush administration left in 2008: layers of worthless paper and numbers on screens that represent our economy, at least two wars and on the verge of a third with the finances for those off the books, and more legal and ethical issues than all the lawyers in Shakespeare’s worst nightmares can deal with.
The GOP-sainted Ronald Reagan once said, “Government is not a solution to our problem; government is the problem.” In other words, government is always bad and the free market is always good. Greed is good, the corporations and investors can regulate themselves, and the free market has your best interests at heart. Nice fairy tale…we are in our current economic dilemma because the federal government did not properly regulate the markets.
Even Alan Greenspan, the uber-libertarian who was known to quote Ayn Rand, admitted there was a “flaw” in his thinking. Unfortunately, it is the average American on “main street” that pays the price for that, while the executives and regulators are able to walk away from the mess they created. For the ultra-rich that means billions in bonuses from corporations and financial institutions. For the rest of us that means layoffs, foreclosures, 401Ks that disappear into thin air, inflation, less government services and a more dangerous society. Desperate people do desperate things.
This dark picture from 2008 should be a stark contrast to the peace and prosperity we had 10 years ago. It’s also useful in showing that the choice between progress and regression is clear. We can choose to keep bailing out the sinking ship with tin cans, or we choose to repudiate what created this mess and take the steps to create a revived, robust and more compassionate capitalism that can lead us, and by example, the rest of the world into the next millennium.
Once again, we must look to the past for leaders who have faced similar situations. When FDR was faced with the Great Depression, instead of arguing that individuals would have to fight for themselves during tough times, he invested in big projects that put people to work. “Fighting” Bob LaFollette, a progressive icon, did not look the other way when he saw corruption in government. He fought for open government, workers’ and unemployment compensation, a decent minimum wage and progressive taxation. Policies like that helped to restore people’s dignity and improve our nation’s infrastructure.
We need a similar vision in concept, yet one that can be adjusted to the realities of the 21st century. The global economy is connected by trade, the internet, political alliances, financial networks, as well as far-flung families. Some ideas most people have in common are dreams of a high standard of living, a healthier environment, peace and sustainable economic development that can raise the standards of living for everyone in the world. Blindly throwing taxpayers’ money at these problems is not the solution.
We need to invest in our future, which will cost a lot of money, and we need to think about a long term return of investment, not just the next quarter’s profit margin. We need to invest in our own resources – capital, human resources, material resources – and use then wisely in terms of the common good for Americans for years to come. Instead of using our best technical minds to create exotic financial derivatives that no one can understand, or weapons that can effectively kill or wound thousands of people with minimal “friendly” loss, perhaps we should redirect our endeavors towards more productive ventures. We are not going to fix any problems here or abroad by pretending that private companies or the armed forces will do what is necessary and fair. Putting our resources into curing serious diseases, rebuilding our infrastructure, providing a better education for young Americans, or building the energy sources of the future will put Americans to work for Americans.
There is one important concept that seems to have been forgotten in America the past 30 years or so. That is the concept of work and fairness. As for back as Rousseau it was expressed as a social contract between government and taxpayers. In the 21st century it is a contract between employers and workers, and one that has been ripped to shreds by executives that look no further than the next quarter and squeeze as much profit as possible out of their companies. The labor-management contract established after the Great Depression and WWII contributed to significant economic growth, yet may have been irreparably damaged when Saint Reagan broke the air traffic controllers’ union and gave the green light to employers to do whatever they wanted to do with the knowledge the government would not get in the way. I guess that’s the GOPs version of laissez faire.
The truth is and data shows that American workers are more productive and efficient than ever. Yet we are rewarded with lower wages (adjusted for inflation), less job security due to outsourcing and consolidation, fewer benefits, and a sky-rocketing cost of living. On the other hand, individuals in America cannot expect a handout without a contribution, such as pursuing higher education, being a reliable employee, striving to be a great parent or providing a community service. The only way we are going to move ahead as a nation is by putting people to work in serious productive careers that work towards the goal of building a long term, sustainable economy. That means investing in education, renewable energy resources, information technology, the nation’s physical infrastructure and the industries here in America that can produce the materials for that.
Now we hear the loud conservatives who suddenly have an interest in controlling government spending, after an eight year silence while deficit-spending went through the stratosphere. Listening to them now would be a terrible mistake. We got into this mess by not investing in economically productive projects that could have helped us conserve energy, keep jobs that require talent in the US and remove barriers to economic progress. Now is the time to think about enacting progressive taxation reforms such as closing corporate loopholes, lowering property taxes by taking some services off the property tax rolls, increasing the taxes of top income earners and providing tax incentives to corporations that employ Americans in America. All of that is possible within the parameters of President-elect Obama’s plan.
Ok, here we go…the hard part: What can we do? Well, for starters we can elect a President that proposes an economic stimulus package that could inject as much as $850 billion in to our economy over the next two years. Improving infrastructure, renovating schools, installing a computer in every classroom and developing more alternative energy sources are on that shopping list. So far so good – a much needed improvement after the Bush administration neglected those needs.
We can also refrain criticizing our future leader until he is inaugurated. Obama’s cabinet appointments, his silence on the atrocities in Gaza, the man that appointed his replacement in the Senate under somewhat questionable circumstances…are those the real issues? Don’t let yourselves get distracted by the media or the blogs – there are some real issues we have to address in 2009 before we can see some real change and move ahead as a nation. Here’s my short list:
• Make health care affordable for all Americans
• Upgrade our infrastructure
• Upgrade our public educational system
• Raise the minimum wage
• Redistribute income and revenue through progressive tax reforms
• Invest in renewable energy sources for our businesses, homes and autos
• Get our military out of the middle east
• Facilitate diplomat solutions to international crises in a fair and equitable way
• Provide tax incentives that encourage the retention and creation of manufacturing jobs in the US and discourage outsourcing
• Create media tax incentives that help alternative media and increase taxes on media conglomerates
• Put a freeze on all foreign aid, reevaluate it and reinstate it only for humanitarian causes
• Enact uniform election laws for all 50 states for federal elections
• Enact campaign finance laws that prohibit special interest groups and lobbyists from excessive (x amount) contributions to federal election campaigns
These ideas would be almost utopian in scope, yet that would only be a good start. Any one of you reading this probably could add to the list. I would like to hear some comments. Let’s focus on what’s important.
We cannot depend on one man to bring about the change we need, because no one person knows how to do that. We should not nitpick every tidbit of publicity our biased media feeds us about the incoming administration. We have to work together collectively and keep focused on what’s important for us as individuals as well as what is best for our nation. Now is the time to speak out about meaningful issues, because we may have someone in the white house in two weeks that will actually listen to what we have to say.
Quick message to “Bart” – sorry to hear about Bartcat, I think it’s a great thing that you are putting yourself (and your credit rating) out there for someone out of loyalty, the web sites are timely enough for this time of year, and 147 rocked! Best wishes in 2009.
Greg
Greg:
I swear, you certainly always have something to say about our politics huh? LOL, good job, I like it.
Comment by everge — January 9, 2009 @ 4:23 pm
Dear Cheeseland Greg,
We are not having the ‘deepest recession since the Great D. no matter what you or the Main Scream Media say. For example, the Great D. had 25 % unemployment, not the 7% we presently have.
Night and day difference.
However, you are correct in that this country is aching for improvement as you so aptly indicate.
‘We need to restore confidence in our government through transparency, fairness and equity’ is an excellent thought. I especially love the idea of transparency in, say, the SEC.
‘We need to invest in our future, which will cost a lot of money.’ The response by any conservative to this is “Where is the money going to come from?” Then you are on the defensive. Instead allow me to help you, mainly because I think you are sincere and very motivated: The money can come from the failures we are now financing; for example, the Army Corp of Engineers:
The Army Corps of Engineers spends $5 billion annually constructing dams and other water projects. Yet, in a massive conflict of interest, it is also charged with evaluating the science and economics of each proposed water project. The Corps’ “strategic vision” calls on managers to increase their budgets as rapidly as possible, which requires approving as many proposed projects as possible. Consequently, the Corps has repeatedly been accused of deliberately manipulating its economic studies to justify unworthy projects.
Investigations by the GAO, The Washington Post, and several private organizations have found that Corps studies routinely contain dozens of basic arithmetic errors, computer errors, and ridiculous economic assumptions that artificially inflate the benefits of water projects by as much as 300 percent. In one case, a study’s authors inflated a project’s benefits by using a 2.5 percent interest rate that dated back to 1954. In many cases in which the Corps calculated that a project would be a net benefit, arithmetic corrections revealed that the costs would be many times greater than the benefits. By that point, of course, the unnecessary and wasteful project is often underway and cannot be stopped.
These errors appear to reflect more deception than sloppiness. A Washington Post investigation uncovered managers ordering analysts to “get creative,” to “look for ways to get to yes as fast as possible,” and “not to take no for an answer.” After a public outcry, in 2002, the Corps suspended work on 150 projects to review the economics used to justify them. However, given the combination of Congress’s thirst for pork-barrel projects and the Corps’ built-in incentives to approve projects that will increase its budget, real reforms seem unlike
The Army Corp of Engineers should put out all projects for competitive bid to the private sector and do only awarding of bids and oversight. The great amount of money freed up from this and other fed govt agencies could be used to implement your ideas! Now, understand that The Army Corps is only a tiny example. You can easily get on the net and find your own – breathtakingly poor spending of our money by the fed govt.
‘Now we hear the loud conservatives who suddenly have an interest in controlling government spending, after an eight year silence while deficit-spending went through the stratosphere. Listening to them now would be a terrible mistake.’
You are wrong.
I’m a conservative and have been shrieking about govt waste, dishonesty, secretiveness, greed and an uncaring attitude for years. Your target should be the country club republicans, not conservatives.
I think Saint Reagan (hee, hee) and GW were wrong to lower taxes, then choose to go more deeply into debt rather than reduce the size of govt correspondingly.
Supreme Saint Obama promises to go through the whole of the federal govt and reduce waste. This is encouraging, if he will just do it.
“Redistribute income and revenue through progressive tax reforms” This is Marxist thinking and doesn’t need further comment except to say it won’t work.
‘Greed is good, the corporations and investors can regulate themselves, and the free market has your best interests at heart. Nice fairy tale…we are in our current economic dilemma because the federal government did not properly regulate the markets.’
Very correct. There needs to be a proper balance between free mkt activities and govt regulation.
‘For the rest of us that means layoffs, foreclosures, 401Ks that disappear into thin air, inflation, less government services and a more dangerous society.’
Inflation is the result of dishonest govt. We need to replace fiat currency with a solid non-inflating dollar. Only the fed govt benefits from inflation. RS Jane moans that we will never get away from fiat currency, but I disagree. Inflation creates poor people.
‘The only way we are going to move ahead as a nation is by putting people to work in serious productive careers that work towards the goal of building a long term, sustainable economy. That means investing in education, renewable energy resources, information technology, the nation’s physical infrastructure and the industries here in America that can produce the materials for that.’ The govt isn’t the way to do this, at least not directly, because it has proved itself to be so wasteful, dishonest, and uncaring. In order to become more competitive with the world we must reduce expenses. For example, the fairtax is wildly more efficient, please read the book. A smaller govt will result in lower taxes and a more competitive private sector. Lower taxes must be accompanied by cuts in federal spending and responsibility.
You made the mistake of asking for comments, hope you don’t mind mine too much. I could obviously go on and on, but this is too long already.
Have an excellent day.
Grimgold
Comment by grimgold — January 12, 2009 @ 3:04 pm