Energion Poltical Roundtable -- Question 4: The Economy
What are the most critical elements of an
economic plan for the United States, and how should they be balanced? Which
candidate has a plan closest to what you prefer?
Even as I’m not a tax expert, I’m
not an economist. That doesn’t mean I
don’t have informed opinions, it’s just that I’m not an expert. As a pastor and as a theologian, I do look at
these questions from the perspective of God’s justice and God’s overriding
concern for the least among us. The
question before us concerns what I see as being the most critical components of
an American economic plan.
I think we start with a couple of
assumptions. First, we live in a global
economy, so, for instance, the cost of energy, is influenced not only what we
do here, but demand across the globe.
Many American companies have a presence in many other places in the
world, and so their bottom line is influenced by a number of factors. Second, much manufacturing is now performed by robots rather than people, thus
some of the well-paying jobs of yesteryear are gone. Third, we’ve been living off deficit spending
for a very long time, with both parties complicit. In fact, many studies suggest that Republican
administrations and Congresses have been more profligate in their spending than
Democrats. Of course, the goodies that
each party “purchases” on credit differ.
Are we in difficult economic
circumstances? Well, yes and no. The economy is growing slowly and
unemployment is rather high. We have too
many homes in foreclosure and families underwater with their mortgages. We have a growing national debt that needs to
be addressed, along with an aging population that will tax both Social Security
and Medicare. But, we're in better shape now than four years ago when the economy was in free-fall. As we ponder solutions,
we need to ask – on whose backs will the budget be balanced? Who will pay the greatest cost?
I’m not an expert but it seems as if
people like Paul Krugman who argue that the economy doesn’t need austerity
measures but an infusion of capital are on the right track. There a number of areas where government – at
all levels – can aid the economy by focusing attention on infrastructure,
education, research, and job training (the kinds of programs the President has
been proposing). We need the kind of
forward looking thinking that will prepare us for the world that will be, not
the world that was. For instance, we
could focus on replacing and enhancing an aging power grid. We can invest in new energies. Many of our roads and bridges are more than
forty years old and are in need of replacement.
Our rail system hasn’t been updated in decades, and high speed rail
would be boon for business and tourism.
And we need to invest in education that will prepare us for the future –
not only math and science, but social studies. If we don’t understand our
world, we won’t know how to engage it.
As for the debt, well, as I said,
Republican have been even more profligate than Democrats of late. They’ve gotten on an austerity bandwagon, but
I’m not sure how we can cut taxes, raise defense, and keep Social Security and
Medicare as is, without either raising the debt further or cutting drastically
the kinds of programs that give the nation’s poorest a safety net. Remember
that the Bush Administration cut taxes even as it engaged in two costly foreign
wars. The current nominees talk about
reductions in government, but don’t specify what they’d cut – beyond the usual
suspects (NPR, Amtrak, and the cultural endowments). Since these are a drop in the bucket of
expenditures, surely further cuts must come from Medicaid, Food Stamps, and VA
programs. And if you think eliminating “Obamacare”
(since the Democratic convention embraced the term, so will I) will help, the
Congressional Budget Office argues otherwise.
The big ticket items are Defense, Medicare, and Social
Security. Although Payroll taxes fund
the latter two, when and where they fall short of income, they will be and are
sustained by the general budget. Thus,
to truly resolve the problem of debt, we need more revenue. Remember Americans don’t just tighten their
belts, they find ways of increasing revenue (2nd jobs, etc.). The question is – where will the revenue come
from? Must suggestion—go first to those
most able to pay more, the wealthy. The
idea that they are job creators is nonsense.
In a consumer based economy, it’s the middle class that creates jobs,
with purchasing power. Henry Ford
understood this, which is why he paid a good wage to his workers.
Now, where can make cuts?
I’d start with a bloated military budget. Do we really need all the gadgets the
military has? Do we really need to be so
extended militarily? We have the largest
military in the world, by far. President
Dwight Eisenhower, himself one of the nation’s greatest military minds, believed
in a strong defense, but he also warned against the undue influence of the “military-industrial complex.”
He warned against getting hooked on military spending and allowing the
military and its suppliers to have too much influence on America’s political
life. We can have a conversation about
how much military is enough, but surely we have more than enough for the
moment.
Wouldn’t we be better off directing the focus of our research
and design onto areas that actually enhance life? You know, creating alternative forms of
energy and making life more energy efficient?
And if we want a strong military, then we should pay for it without
compromising our ability to help the poor and the marginalized.
As for who has the better plan, neither major party is perfect,
but I believe that President Obama and the Democratic Party are the most in
sync with my own priorities. His plans
are more specific and more balanced. The
Romney-Ryan ticket is vague about its plans and where they’re specific, they
don’t jive with my priorities. So, I’m going with the current Presidential
team.
You can offer your thoughts and questions for the roundtable sponsored
by Energion Publicatons at http://energion.net/2012/09/the-great-energion-political-roundtable/ Check
out the thoughts of the other participants as well – Allan Bevere, Elgin
Hushbeck, Joel Watts, and Arthur Sido
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