America’s Economic Divide Will Decide Our Future – Soon
First, A Note of Recognition
Today is Veterans Day. Take a moment to reflect on those who answered the call to serve and their families. We owe them more than could ever be measured. I look forward to the day when those who serve now have civilian leadership worthy of those responsibilities.
A Few Carefully Chosen Words Communicate Volumes
The most famous phrase to come out of Bill Clinton’s first and successful run for President was “It’s the economy, stupid.” His colorful campaign manager James Carville is generally accredited with the phrase and the resulting campaign focus.
You might not be familiar as yet with James Talarico. He is an interesting guy. Currently a Texas House of Representative Democrat, running in the primary to be the Democratic candidate for the Senate seat currently held by Republican John Cornyn, who is in his own death match of a primary race.
Talarico was almost completely unknown just a few months ago. Now he is almost tied for first place in his primary and polls about even with the two Republican contenders. Talarico is a talented speaker and one who has clearly thought a lot about what is right and wrong. His key phrase is the following: “It’s Not Left vs. Right, It’s Top vs. Bottom.” Here is a link to a short statement by him, as an example of his approach to politics:
https://www.youtube.com/watch?v=GbEtvmHb6GI
Both of these statements fit with the Affordability theme that worked so well for Democrats in the elections earlier this month, all across the country. But they also have a much deeper and more important context beyond concerns over inflation and related issues.
History Is Clear
The history in this country and elsewhere have a strikingly clear lesson: when the economic spread gets too extreme, when a very small number of people own a huge portion of national assets and the vast majority own far, far less, economies eventually fail and social unrest – to the point of violence – often follows.
The last time we saw an imbalance as bad as it is today in America was in the 1920’s, leading to the Great Depression that wrecked the world in so many ways. Given the history, one would think that the super-wealthy, who might reasonably be thought of as likely pretty smart people, would understand this and seek to ensure there is a minimum balance to keep everything running. But they do not – greed rules all. These folks are convinced they should have it all, and that this is not only good for them, but good for the country and the world.
What Is The Way Forward?
Somewhere between the Social Democracy of the new Mayor of New York City and the somewhat more Conservative new Governors of Virginia and New Jersy, there should be a path of corrections that most Americans can agree upon, and Democrats can win with to make it happen and begin establishing a sustainable society.
I remember that during the 1950’s, under a Republican administration, the marginal tax rate for the wealthiest was around 90%. No one left the country, infrastructure was built and the national debt managed. Today people in that category pay less percentage wise than do most of the lowest wage earners. A long list of very wealthy companies pay no federal taxes at all, and not much in Republican run states. A swell place to start would be starting a steady increase over a few years to get a more reasonable balance.
From there, let’s look at the loopholes in the tax code that constitute a gravy train for some investors, focusing specifically on private equity firms, which are a cancer on our country and our economy. Rehire all those agents Trump has fired from the IRS and go after the big cheaters. Good for the budget, good for the soul of the country.
Help people understand that Talarico has it exactly right. This is not about class warfare (the rich have already declared that war). It is about a reasonable standard of fairness, justice, and ensuring people have a chance at a decent life. Does not seem like too much to ask.
Stay focused, stay engaged, stay angry.
A Footnote On The End Of The Government Shut Down
As this is being written, it appears the government shut down is about over. I noted last week that I thought the citations that it would end last week were too optimistic, and that it might end this week or next, but whether on decent terms or not was not clear. And here we are. Not great terms, indeed.
In fairness, my first reaction was likely similar to yours – I was angry that 8 senators gave up and yielded without resolving the health care issue. I am still not happy, and not sure they did the right thing, but of those 8 there are three I really respect and whose judgement I have trusted over time. They may well have been right in concluding that the Republicans were not, under any circumstance, going to yield on supporting ACA, and that continuing the shutdown only hurt more people. I have little confidence that the promised vote on funding health care will make any difference, but we shall see. At least we get the House back in session and can call forward the Epstein records with the long delayed swearing in of the new Senator from NM – at last.
So the Democrats had an amazing election night a few days ago and are at risk of fighting among themselves now. What shall they do? In any case, we need better leadership. It is past time for Shumer to step down.
Bill Clontz
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