It is disconcerting to listen to yet another bunch of paw-wringing six-figure “chardonnay liberals” emoting about what OUGHT to be done to “fix” the wretched economic conditions that have been building for a very long time for multiple reasons and made worse by the wanton negligence of Donald Trump and his self-dealing pack of thieving swine. In particular, Michelle Singletary tried to cast the issue as a “moral” issue, which is pure hogwash. The piety and guilt-tripping practiced by our Fearless Leaders are almost suffocating, especially since no one babbling about the shame all of us should certainly feel by now seemingly has a clue about market theory and why the collective purchasing power of the TRUE “middle class” ought to be higher than it is. They preach earnestly to the choir about how we should all be morally ashamed of the horrible conditions faced by the less fortunate, but it will mostly fall unheard by those who need to hear it. Contrary to the assumptions of most of them, market theory is not limited to favoring the privileged few.
I am not defending the inarguable immorality of what has been going on. I am not defending Mitch McConnell’s tone-deafness for the amoral implications of his preferred policies, but it is well to remember that Donald Trump ALMOST won re-election! That should sober anyone tempted to piously rant and rave about “morality.” A lot of god-fearin’ Amurikans who voted for Trump (about 73 Million) simply don’t give a damn, and they really hate being preached to by those who don’t have to worry about the next paycheck already being spent! Ignoring the “politics” of all of this is really stupid. It is, precisely, the point! Sadly, those poor souls pleading to the contrary at the beginning of the program have no clue, either.
The reason why that collective purchasing power should be stronger is not to assuage the guilt we all surely deserve but to put our leaning economic house in order. Our economy has horribly suffered from a chronic lack of DEMAND in the marketplace which, in turn, is a function of the missing widespread purchasing power that used to drive the world economy. The Federal Reserve cutting interest rates to near-zero has not fixed a thing! We are suffering from a FISCAL problem, not a MONETARY problem. Declining retail sales and declining FICA tax revenues are the proof, not the soaring Dow Jones averages or meager “new job” figures. Ever since 1980, when Ronald Reagan and his buddy, David Stockman, trotted out their phony “supply-side” economic theories promising “trickle-down” wealth for the unwashed masses in order to justify absurd tax cuts for their “job-creating” rich buddies, the demand side of the market equation has been almost ignored. That is because for years it was taken for granted that the “demand” would always be there, having cranked up during World War II, curing the Depression, and continuing mostly unabated for about 60 years thence, with us Baby Boomers and our parents spending money like drunk sailors following the peace. The YOUNGEST Baby Boomers (born 1964) are now over 55; the oldest of us are in our 70’s. We are mostly old folks now and are NOT spending money like we used to. Almost ALL old folks don’t spend money like they used to. Yet nobody has stepped up to take our places in the marketplace. None of the “experts” (nor any of the current political candidates last year or this year) have been talking about that elephant in the room: that evaporating DEMAND.
Meanwhile, we continue to lie to young people that the best way to get ahead is to get a college (or law school) diploma, so all that cranked-up “demand” for still limited college space PREDICTABLY drives up tuitions (that few can truly afford) much faster than the inflation rate! And the trades go begging for skilled practitioners, because that college diploma is so much more “respectable” than a remunerative career as a plumber or electrician or auto mechanic. And the students who borrow those monster loans to pay those nosebleed tuitions are saddled with soul-stripping debt for most of their productive lives, because Republicans have smugly ensured that those hapless borrowers will never be able to discharge those debts in bankruptcy, with the feeble acquiescence of Democrats who should know better but who cringe in fear of being labeled with the dreaded “L-word.” I am an ASE-tested, school-certified car mechanic as well as a retired lawyer and auctioneer, so I know what I am talking about.
I also KNOW that incomes are horribly skewed and dislocated and “unfair," but I am sick of the pathetic whining because most of those people who should know better seemingly have no clue about market theory. Probably 65% of ALL American households GROSS less than $100,000 per year! NOBODY in the true “middle class” will gross over that number! And, there will NOT be an economic “recovery” enjoyed by most until several things happen:
1—Recognition that the “working stiffs” have to pay not only “income” taxes but also FICA ("Social Security") PAYROLL taxes on just about 100% of their GROSS income. No deductions! Wealthier folks do NOT pay any FICA on their earned annual incomes over about $130,000 nor on their rents, dividends or capital gains. And they shouldn’t, since Social Security benefits are capped. The “working stiffs” mostly don’t have any dividends or capital gains to worry about. They don’t have a “dog” in the mostly irrelevant Dow Jones fight!
2—Recognition that the REAL “job creators” are paying customers, not capital investors. Capital investment is certainly important, and Democrats should be concerned with it but not enslaved to it. Small businesses owned by ordinary folks and big corporate business do not necessarily share economic objectives, even as they share voting patterns. Higher incomes have enjoyed three major tax cuts during this century already: one early in George W. Bush’s presidency, one during Barack Obama’s presidency and the most recent during Donald Trump’s presidency. All three were ill-advised and have contributed to the horrific income disparities as well as shifting the federal revenue burden disproportionately onto the “working stiffs."
3—Exclusion of ALL income under $20,000 from ANY taxation at all, including a low-income tax credit for such payroll taxes withheld! Every bit of that money spared will likely be SPENT in the marketplace, mostly with local merchants!
4—Repeal of the “2d home” mortgage interest deduction and a generous increase in the Standard Deduction to put more spending money into the hands of more ordinary people.
5—Adoption of one or two higher percentage brackets on net taxable incomes. Wealthier folks should be taxed more, not to “punish” them but because they can AFFORD IT! The money to run government has to come from somewhere, and the "working stiffs” are paying too much in federal taxes as it is.
6—Lowering of exclusions on the federal Estate Tax. All estates over $1 Million should be subjected to the Estate Tax, arguably at lower initial rates. That could take some pressure off the income and payroll taxes.
7—Revision of the composition of the National Labor Relations Board to purge anti-union bias therefrom. That was touched on during the “On Point” program. However, stagnant union leadership needs to be purged. Too many current union leaders are still fighting the last war!
8—IMMEDIATE repeal of ALL import tariffs, INCLUDING tariffs on Chinese goods because, contrary to Donald Trump’s trade "wisdom," US tariffs are ultimately paid by Americans on those goods!
9—Recognition that American manufacturers are NOT going to be able to compete head-to-head with Asian manufacturers. The wage disparities are just too great and will stay that way.
10—“Federalizing” of all health insurance and elimination of patchwork-quilt state regulation of same. True repair of “Obamacare” is needed, with (unlikely) federal absorption of all healthcare concerns (“socialized medicine”). People should be free to purchase whatever insurance they wish, but no one should have to rely on same. Employers should be relieved of the healthcare burden. It discourages high-wage employment and cuts down on SPENDING MONEY!
11—Replacement of the capital-gains tax break with an up-front individual investment tax credit. This is a really complex issue.
12—Conversion of all corporations and other business associations to tax-free pass-through entities, with their wealthier owners subjected to higher taxation of ALL such pass-through income at ordinary rates, whether paid out as dividends or not. US taxation of all "offshore" income should be a given.
13—“Legalization” of possession (not sale) of ALL currently illicit drugs. Criminalization of lower-income folks for such petty nonsense MUST STOP, as must the absurd “War On Drugs,” which really has been a “war” on the Bill of Rights!
These changes (or something similar) are immediately necessary. OBVIOUSLY they won’t all get done at once, but that is precisely why the Democrats need to concern themselves as much with control of BOTH houses of Congress as well as the Presidency, and that means developing a killer political strategy and tactics stretched out over the longer term. Democrats won’t win over most of the substantial number of Trump voters, but they need to focus on those who MIGHT change over if the party abandons the presumptuous, ethnically-obsessed, pigeon-hole tokenism and snotty piety that has warped the thinking of most Dem leaders. Nor should they have to surrender to racist bigotry to find some common denominators that might appeal to all, regardless of skin color.
