I am not convinced we need a short-term economic stimulus plan. We need to look at a long-term plan that addresses the issue of the demise of the middle class.
During the last several decades the gap between the wealthy and the poor has widened. In fact during the last several decades the rich have made out fantastically while the middle class is actually earning less today than in 1973.
Isn’t it strange that Bush is all of a sudden all a twitter about the economy when the stock market starts to falter. After all; who are the greatest beneficiaries of a rising market; after executives with stock options that must now be going under water? Its time to connect the dots between a society that provides economic equality and one that provides long term economic growth for all.
The short-term fix for our economy means helping those that need it most. Expand the length of time people can collect unemployment. Freeze mortgage rates at current levels and lower any that have risen above the prime rate. Put a cap on credit card interest rates of 12 %. If a rebate check is to be sent out, then send it only to those earning less than 100K per year. Provide incentives for businesses to invest in and provide jobs in this country. Fund these efforts by increasing taxes on the wealthy by 5%.
The long-term fix involves creating a tax system that is simple and loop hole free. Yes it will be progressive with higher earners paying a greater percentage of their income in taxes. The long-term fix will involve bigger investments in education, including an expanded GI Bill, and investment in the infrastructure of our country. We will have to get out of this stupid war in Iraq and make an investment in energy independence.
George, if you send me a check something is wrong!
3 comments:
Why look at the demise of the middle class? Many of the happiest people (according to the Happy Planet Index (http://www.happyplanetindex.org/map.htm)) are not living in the countries know for their strong middle class. Colombia? (#2) Panama? (#5) Honduras? (#7)
What is the purpose of the formation of an economic policy? Is it solely to reduce the wild fluctuations that might occur?
Is happiness ever considered?
"The Index doesn’t reveal the ‘happiest’ country in the world. It shows the relative efficiency with which nations convert the planet’s natural resources into long and happy lives for their citizens."
I found another cogent argument for economic reforms that had some of your points:
http://www.alternet.org/workplace/74726/?page=entire
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