{"id":7447,"date":"2013-03-05T10:28:41","date_gmt":"2013-03-05T15:28:41","guid":{"rendered":"http:\/\/blogs.northcountrypublicradio.org\/inbox\/?p=7447"},"modified":"2013-03-05T11:10:22","modified_gmt":"2013-03-05T16:10:22","slug":"the-new-american-reality-that-conservative-republicans-must-face","status":"publish","type":"post","link":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/2013\/03\/05\/the-new-american-reality-that-conservative-republicans-must-face\/","title":{"rendered":"The new American reality that conservative Republicans must face"},"content":{"rendered":"<p><a href=\"https:\/\/blogs.northcountrypublicradio.org\/inbox\/files\/2013\/03\/cbo_tax_revenue_0213.jpg\"><img loading=\"lazy\" class=\"alignnone size-full wp-image-7448\" title=\"cbo_tax_revenue_0213\" src=\"https:\/\/blogs.northcountrypublicradio.org\/inbox\/files\/2013\/03\/cbo_tax_revenue_0213.jpg\" alt=\"\" width=\"600\" height=\"295\" srcset=\"https:\/\/blogs.northcountrypublicradio.org\/inbox\/files\/2013\/03\/cbo_tax_revenue_0213.jpg 600w, https:\/\/blogs.northcountrypublicradio.org\/inbox\/files\/2013\/03\/cbo_tax_revenue_0213-150x73.jpg 150w, https:\/\/blogs.northcountrypublicradio.org\/inbox\/files\/2013\/03\/cbo_tax_revenue_0213-300x147.jpg 300w, https:\/\/blogs.northcountrypublicradio.org\/inbox\/files\/2013\/03\/cbo_tax_revenue_0213-450x221.jpg 450w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>As I&#8217;ve written here before, I think Republicans are mostly in the right when they suggest that Federal tax rates are already in line with the &#8220;normal&#8221; range of revenue over the last half century.<\/p>\n<p>This chart, from the <a href=\"http:\/\/crooksandliars.com\/jon-perr\/boehner-claims-tax-revenue-at-record-high\">liberal website Crooks and Liars<\/a>, shows the trajectory of tax rates as a percentage of GDP.<\/p>\n<p>Yes, revenues have dipped below &#8220;mean&#8221; tax rates for a few of the years since 2002, and they plunged during the Great Recession.<\/p>\n<p>But the more dramatic and pervasive trend is the surge of spending above historic norms that began in 2008.<\/p>\n<p>The logical conclusion here is that spending must come down and tax rates must be stabilized, and perhaps even lowered, if we are to avoid a significantly higher long-term burden on taxpayers than Americans have accepted.<\/p>\n<p>What appears obvious in the abstract, however, is confounded by a very different reality on the ground.\u00a0 The truth is that the American economic landscape has shifted tectonically.<\/p>\n<p>The truth is that our citizens rely on government more and more, not because we&#8217;re lazy or ideologically confused or charmed by socialism, but because hard work in our country no longer produces a stable, secure livelihood.<\/p>\n<p>This video (which Ellen Rocco shared earlier in the week) illustrates dramatically the growing income disparity in the US, which expanded dismally during the last four decades.<\/p>\n<p><iframe loading=\"lazy\" frameborder=\"0\" height=\"315\" src=\"http:\/\/www.youtube.com\/embed\/QPKKQnijnsM\" width=\"560\"><\/iframe><\/p>\n<p>What&#8217;s clear here is that the old &#8220;rising tide lifts all boats&#8221; scenario no longer applies.\u00a0 It used to be true that everybody was getting richer in America &#8212; some faster, some slower.<\/p>\n<p>But these days, a sizable percentage of our neighbors &#8212; even many so-called &#8220;middle class&#8221; Americans &#8212; just don&#8217;t earn enough to go it alone.\u00a0 They&#8217;re actually moving backwards.\u00a0 Their boats are sinking.<\/p>\n<p>They don&#8217;t have the steady, reliable income needed to pay for good healthcare, to buy even a modest home, to pay for college tuition, or set aside money for retirement.<\/p>\n<p>More and more seniors face an end-game that looks more like true poverty and less like the &#8220;golden&#8221; years.<\/p>\n<p>Before the Great Recession, there were two factors concealing this implosion of the American dream.\u00a0 The first was massive debt, both personal and governmental.\u00a0 We borrowed our way out of reality.<\/p>\n<p>The second was government spending.\u00a0 The public sector provided the backstop, both in terms of employment for the middle class and &#8220;safety net&#8221; programs for people drifting toward the bottom end of the economic ladder.<\/p>\n<p>Already &#8212; and this is an important point &#8212; local, state and Federal agencies nationwide have slashed hundreds of thousands of public sector jobs, eliminating one of the last stabilizers of middle class economic expectation.<\/p>\n<p>More job cuts are on the way, as institutions like the US postal service and the military prep for deep cuts in employment that will target tens if not hundreds of thousands of workers over the next decade.<\/p>\n<p>Now, conservatives want equally deep cuts to the social safety net programs that help those Americans dropping off the bottom of the ladder, aiming to slash &#8220;entitlement&#8221; programs for the unemployed, the elderly, and the poor.<\/p>\n<p>Which brings us to the reality that Republicans aren&#8217;t facing.\u00a0 A growing slice of America is now poor.\u00a0 Bluntly and unambiguously impoverished.<\/p>\n<p>And even many in the middle class have no debt-free assets, no job security, no emergency savings, no margin for error.<\/p>\n<p>With income and wealth inequality rising &#8212; with the top 1% harvesting more and more of the country&#8217;s economic gains &#8212; it is mathematically certain that this trend will continue unless something is done.<\/p>\n<p>So here&#8217;s what the GOP has to address, in policy terms and politically:\u00a0 What do we do about the &#8220;real poor&#8221; America?\u00a0 What do we do about full-time employed, two-worker families who have no health insurance, no equity, no assets and no security?<\/p>\n<p>Thus far, the answer to this question from conservatives has been simple. Cut taxes, cut regulation, and jobs will come surging back.<\/p>\n<p>But we&#8217;ve tried that for a generation and only a tiny fraction of the country has benefited.\u00a0 And much of the country is measurably, substantially worse off.<\/p>\n<p>It may well be that the Democratic Party&#8217;s approach is wrong-headed.\u00a0 Fine.\u00a0 That&#8217;s why we have two parties, to offer different ideas and answers.<\/p>\n<p>But to win the political fight over the future of the economy, the GOP will have to go beyond blocking tax increases for the wealthy, beyond promises that vast wealth at the top will somehow, eventually, maybe-next-year begin to\u00a0 trickle down.<\/p>\n<p>They have to move beyond an ideological and abstract posture that makes zero sense to the 20% of full-time American workers who are earning less than $22,000 a year.<\/p>\n<p>Frankly, without better alternatives, the Democratic Party&#8217;s solution begins to look more logical, less like socialism and more like fairness and common sense.<\/p>\n<p>If our economy is now structured fundamentally so that everybody&#8217;s working really hard but only a tiny percentage of families really benefit, maybe it makes sense to use taxation to redistribute some of that opportunity?<\/p>\n<p>I don&#8217;t mean money giveaways.<\/p>\n<p>I mean maybe it makes sense to use higher taxes on the wealthy to fund things like low-cost higher education, job training, infrastructure building, entrepreneurial programs, more affordable healthcare and so on, all designed to boost America&#8217;s vast bottom-end economy.<\/p>\n<p>I know, I know.\u00a0 Republicans really want to avoid that model.\u00a0 They don&#8217;t believe in the government stimulating economic activity.\u00a0 And they don&#8217;t want significantly higher taxes to become the new normal.<\/p>\n<p>Again, fair enough.<\/p>\n<p>But in the long run, blocking that agenda will take more than parliamentary gimmicks and tea party rallies and Ayn Randian magical thinking.\u00a0 It will take fresh, new and better thinking aimed at helping the country&#8217;s working poor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As I&#8217;ve written here before, I think Republicans are mostly in the right when they [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/posts\/7447"}],"collection":[{"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/comments?post=7447"}],"version-history":[{"count":1,"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/posts\/7447\/revisions"}],"predecessor-version":[{"id":7453,"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/posts\/7447\/revisions\/7453"}],"wp:attachment":[{"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/media?parent=7447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/categories?post=7447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.northcountrypublicradio.org\/inbox\/wp-json\/wp\/v2\/tags?post=7447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}