Our Moral Audit of the Budget

Four years ago, faced with a disastrous federal budget proposal, Sojourners coined a phase, "budgets are moral documents." That phrase has now entered the common lexicon, but it remains our fundamental principle. Budgets reflect the values and priorities of a family, church, organization, city, state, or nation. They tell us what is most important and valued to those making the budget. So, it is important that we do a "values audit" of President Obama's proposed budget, a "moral audit" of our priorities. Who benefits in this budget, what things are revealed as most important and what things are less important? America's religious communities are required to ask of any budget: what happens to the poor and most vulnerable, especially what becomes of the nation's poorest children in these critical decisions?

The values of the American people should also be applied to the budget, e.g. fairness (everyone paying their fair share); opportunity for all Americans; fiscal, personal, and social responsibility; balancing important and different priorities; defining security more broadly than just military considerations - related to economic and family security too; compassion and protection for the vulnerable; building community; and upholding the common good.

That's a principle that has been forgotten in the past years. We have trusted in "the invisible hand" of the market to make everything turn out all right, but things too often haven't turned out all right. The invisible hand let go of some things, like the common good. The idea that policies which benefit the wealthiest will eventually benefit everyone has proven false. The president's budget is a step toward restoring the value of the common good to our policy. It is a step to rebalance our priorities, protect the vulnerable, and strengthen the middle.

It contains major investments in the president's three priorities: significantly expanding health care coverage, focusing on climate change reduction and developing renewable energy, and investing in education - early childhood programs, strengthening and reforming public schools, expanded opportunities for college - all of which will benefit low-income people. There are also specific changes in important areas such as tax policy, food and nutrition programs, housing, needed aid to veterans, prisoner re-entry, global food security, and increased foreign aid for combating pandemic disease. It's a budget aimed at redressing the imbalances.

The growing inequality in America over decades is a sin of biblical proportions, and it's time to bring our principles of social justice to bear. As columnist E.J. Dionne wrote this morning,

The central issue in American politics now is whether the country should reverse a three-decade-long trend of rising inequality in incomes and wealth. Politicians will say lots of things in the coming weeks, but they should be pushed relentlessly to address the bottom-line question: Do they believe that a fairer distribution of capitalism's bounty is essential to repairing a sick economy? Everything else is a subsidiary issue.

It is that question that should guide our moral audit of the budget. The fundamental moral question in the upcoming budget debate is whether to begin to reverse the rapid and massive increase in American inequality which has grown over the past thirty years--and has dramatically increased during the past eight. I believe it is time to stop helping the undeserving rich, under the now demonstrably false assertion that this will then benefit the rest of us. When the top 1% of the country now get 20% of its income, control 33% of its wealth, and pay a smaller percentage of their income in taxes than their receptionists do (as Warren Buffet has pointed out)--something has gone terribly wrong in America. The new Obama budget is the first and dramatic step to fix all that, and turn the nation in a different direction.

The new budget proposed by the White House is a dramatic step in the direction of the common good, with strong support for the middle of America, real help for the poorest among us, and the proposition that the wealthiest pay their fare share. And my prediction is that many in the faith community, especially those on the front lines of serving the poor, will rally around the principles and priorities of this budget, bringing their energy and advocacy to bear on the debate that now lies ahead. Because this will not just be a policy debate, but also a moral one; the prayers of the faithful--along with their watchful eyes, willing hands, and ready feet--will surround the Congressional budget process over the next few months.

This post comes from Jim's remarks at a media teleconference today. Click here to listen to the call.

Jim Wallis is the author of The Great Awakening, Editor-in-Chief of Sojourners and blogs at www.godspolitics.com.

Click here to get e-mail updates from Jim Wallis

Comments

[AlexHidell]

Jim, if budgets are moral documents then, in the light of the merry-go-round of bailouts we are on, the taxpayer is being asked to bail out investment firm's bad gambling debts. Steve Pizzo's latest article

Follow The Numbers
http://newsforreal.com/newsdesk/?p=406

shows us the $1.14 QUADRILLION in unregulated debt weighting down the world's economy. Obviously this outstanding debt cannot be paid. We will have to ask the Obama administration and all the other world powers to boot, to forgive or devalue this derivative debt. Only then can the world's economy begin recovery.

""Here’s the breakdown, according to the International Bank of Settlements, which acts as banker for the world’s central banks:

1) Listed credit derivatives stood at USD 548 trillion;
2. The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included:

a. Interest Rate Derivatives at about USD 393+ trillion;
b. Credit Default Swaps at about USD 58+ trillion;
c. Foreign Exchange Derivatives at about USD 56+ trillion;
d. Commodity Derivatives at about USD 9 trillion;
e. Equity Linked Derivatives at about USD 8.5 trillion; and
f. Unallocated Derivatives at about USD 71+ trillion. ""

[Hank007]

Why is it so hard for people to understand the government, and its budgets, paid for by the taxpayers, are tools for people to create the society in which they want to live. Do we want to be a nation with a middle class, healthy people who are productive and live a long healthy life, and are paid a fair wage for work, or do we want to be a broke nation of serfs and peasants who's children make shoes and toys for the children of India and China? Those evil socialists in Europe are richer, happier and healthier than we are, so certainly socialism must fail at all costs, and India and China will eat us alive, regardless of what we do, unless we pull our act together real quick. Otherwise, we can continue this ideological circle jirque until it's time for the kids and elderly to get back to the factory.

[Zanti]

The Repugs have major issues with Obama's proposed budget. That's good enough for me.

I mean, is there a better endorsement?

[kahapeterson]

You are exactly right. Budgets are moral deocuments. Where your treasure is, there you heart will be also.

[ProudMormon]

"e.g. fairness (everyone paying their fair share); opportunity for all Americans; fiscal, personal, and social responsibility; balancing important and different priorities; defining security more broadly than just military considerations - related to economic and family security too; compassion and protection for the vulnerable; building community; and upholding the common good."

Those are good goals. I don't think Obama's budget furthers them. At best, it sets one against another, or has one trump the other.

The biggest problems are clearly with government and individual accountability.

And I personally don't think that government "make work" programs that will crowd out true economic growth and the creation of real, lasting jobs is justified. Especially not when every dollar of it is being piled onto the national debt for future generations to deal with.

People are being asked or forced to tighten their belts. Meanwhile, the government is loosening it's own belt. We don't need to be "addressing neglected priorities" now. They were neglected in the past because we had to make tough decisions about what to fund and what not to. If anything, we should be paring back on a few more perks during these lean times, and put the money into projects that will grow our economy.

[Jazzcomedian]

What kind of projects would that be? I'm not for borrowing and spending as we did during Bush, but I am for borrowing and investing in human capital (healthcare, education), and green technologies that will make America competitive in the 21st century. The last eight years were wasted in that regard. If the last eight years are any indication, there is no way we'll be able to duplicate the greatness we attained in the 20th century. We have to start making things again to sell to the world. So I have to endorse the government borrowing asked for in the budget.

[Hank007]

"People are being asked or forced to tighten their belts. Meanwhile, the government is loosening it's own belt."

Direct RNC talking point. At least come up with your material.

[liarslayer]

Our financial crisis is foreclosure driven: Imagine: Our government offers to loan 50% for any current mortgage at an interest rate of 3%, subject to the existing lender allowing the re-setting of the payment to 50% of the amount of the original payment. I.e. with a $200,000 mortgage, the Government pays off $100,000. Then the homeowner records a 2nd lien against the property, in favor of the Treasury, for that $100,000 at 3%. The existing 1st loan, rewritten to reduce that monthly payment by 50% together with the Governments 2nd reduces the monthly payment by about $200/month. Both payments are paid in one check as a 'Wrap Around Mortgage' payment to a Collection Escrow service for proper dispersion. (The Collection Escrow will separate the payments, forward the separate payments, and keep all records of dates paid, etc..)
Benefits: 1. The lenders' positions are hugely strengthened by receiving back 1/2 of their loaned funds. 2. The homeowner will save about $200/month in his mortgage payment, easing his position AND stimulating the economy. 3. The payment will bring that payment to rent levels or below, and will encourage homeowners to take those now affordable properties off the market. 4. This process will quickly mediate the foreclosure slide and begin to heal our financial disaster. 5. The government gets its money back with interest.
As the problem resolves, the program can be phased out. It may continue in especially troubled regions as necessary.

[iblogleft]

It may have started with foreclosure, but it is not driven by it. Foreclosure driven would mean we could simply take the value loss off the books and start over. It is the leverage on these assets that made the losses 30-50 times greater than the asset loss. In other words, they ran off with 30 times the amount of money they had to back these loans. Now they have no money left to to show assets that would back future loans, therefor no loans.