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Robert Reich

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The Meagerness of the GOP Debates, the Smallness of the President's Solutions, and the Need for a Progressive Alternative

Posted: 10/18/2011 8:32 am

Republicans are debating again Tuesday night. And once again, Americans will hear the standard regressive litany: government is bad, Medicare and Medicaid should be cut, "Obamacare" is killing the economy, undocumented immigrants are taking our jobs, the military should get more money, taxes should be lowered on corporations and the rich, and regulations should be gutted.

Four years ago the most widely-watched TV debate among Republican aspirants attracted 3.2 million viewers. This year it's almost twice that number. And for every viewer assume a multiplier effect as he or she shares what's heard with friends and family.

Americans are listening more intently this time around because they're hurting and they want answers. But the answers they're getting from Republican candidates -- tripping over themselves trying to appeal to hard-core regressives -- are the wrong ones.

The correct ones aren't being aired.

That's partly because there's no primary contest in the Democratic party. So Republicans automatically get loads of free broadcast time to air their regressive nonsense while the Democrats get none.

But even if the president had equal time, the debate about what to do about the crisis would still be frighteningly narrow.

That's because the president's answers don't nearly match up to the magnitude of the crisis.

Without bold alternatives, Americans desperate for big solutions are attracted to bold crackpot ideas like Herman Cain's "9-9-9" proposal, which would raise taxes on the poor and cut them for the rich.

This is where the inchoate Occupy Wall Street movement could come in. What's needed isn't just big ideas. It's people fulminating for them -- making enough of a ruckus that the ideas can't be ignored. They become part of the debate because the public demands it.

The biggest thing the president has proposed is a plan to create 2 million jobs. But that's not nearly big enough. Today, 14 million Americans are out of work, and 11 million more are working part-time who'd rather be working full time.

The nation needs a real jobs plan, one of sufficient size and scope to do the job -- including a WPA and a Civilian Conservation Corps, to put the millions of long-term unemployed and young unemployed to work rebuilding America.

I'm not criticizing the president. Without energized, mobilized, and organized progressives, even the best people in Washington can't overcome the monied interests.

For example, America's long-term debt needs to be addressed, but not the way the president is doing it. He wants to lop $4 trillion off the budget over the next ten years. This almost certainly means sacrificing education, job training, food stamps, and everything else now listed in the so-called "non-defense discretionary" budget, as well as cuts in Medicare and Medicaid.

What about halving the military budget instead? It doubled after 9/11, and military contractors are intent on keeping it in the stratosphere. So is Secretary of Defense Leon Panetta. Result: Defense cuts this size won't be on the table unless progressives vociferously demand it.

And what about really raising taxes on the rich to finance what the nation should be doing to create a world-class workforce with world-class wages?

Here again, the president's proposal is paltry compared to what should be done. He wants to raise taxes on the rich by ending the Bush tax cut for incomes over $250,000 and limiting certain deductions.

Yet income and wealth are now more concentrated than they've been in 70 years. The top 1 percent gets over 20 percent of total income and holds over 35 percent of national wealth; the richest 400 Americans have more wealth than the bottom 150 million Americans put together.

Meanwhile, effective tax rates on the rich are lower than they've been in three decades.

We need to push for higher marginal taxes on the top, and more brackets. Incomes of more than $5 million should be subject to a 70 percent rate. (The top marginal rate was never below 70 percent between 1940 and 1980.) And these rates should apply to all income regardless of source, including capital gains.

This would allow for a bigger Earned Income Tax Credit (that is, a wage subsidy) for lower-income workers. And lower taxes on middle-income workers.

There should be a 2 percent annual surtax on all fortunes over $7 million. This would only hit the richest half a percent of Americans at the very top of the heap. And would yield $70 billion a year -- enough to improve our schools and make college affordable to everyone.

And a tax on financial transactions. Even a tiny one of one-half of one percent would generate $200 billion a year. That's enough to make a major contribution toward early childhood education for every American toddler.

The president's healthcare law is a good start but it's not the solution, either. We need Medicare for all. Medicare has lower administrative costs than private insurers. And it has the bargaining heft to reduce drug and hospital costs as well as shift the system from fee-for-services to payments for healthy outcomes.

The president's financial reforms are also a beginning but they're way too weak to stop Wall Street depredations. (At this moment, for example, no one even knows the exposure of Wall Street banks to European banks and, through them, Europe's debt crisis.)

We need to resurrect the Glass-Steagall Act and break up the biggest banks.

The president has talked about fixing Social Security by raising the retirement age. But the best way to ensure the program's long-term solvency is to lift the ceiling on income subject to Social Security payroll taxes (now $106,800.) Yet this, too, is off the table.

Workers also need more bargaining power. The ratio of corporate profits to wages is now higher than it's been since before the Great Depression. Workers should be able to form unions through a simple up-or-down vote, without delay.

None of this is possible without strong and consistent pressure from the progressive side. Regressives are setting the agenda.

The president isn't even talking about the environment any more. Yet climate change is a reality, and our survival depends on reducing carbon emissions.

We should tax carbon-based fuels, and divide the revenues equally among all Americans. It's the best way to get us to switch to non-carbon fuels, and stimulate research and development of them. And by dividing the revenues, the typical American would come out ahead even though some prices would increase.

Finally, we need public financing of elections and strict limits on so-called "independent" expenditures. Corporations should have to get the approval of every shareholder before spending corporate funds - the shareholders' money - on politics.

I have no idea whether the Occupiers will morph into the kind of progressive force necessary to put these ideas into play. But if Americans stand together and demand real reform, we can have a real national debate in 2012.

Tonight's Republican debate may attract lots of viewers. It need not capture their minds.

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

 

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12:43 PM on 10/19/2011
Guys, we DO have the option of a valid third party / bold plan / job creation plan. Ron Paul's plan to restore America does just that. http://www.ronpaul2012.com/wp-content/uploads/2011/10/RestoreAmericaPlan.pdf . Read it, it's not that long (and boy, it is BOLD). And please refrain from talking about how he's unelectable, or will never win; he's been elected 12 times.
Butquestioning
Searching for truth
11:24 AM on 10/19/2011
I'm not sure what has happened to the Democratic Party but we need real leaders that will go out and fight for the people. The President is being totally blocked by the Republicans but if every Democratic member of Congress was standing before the media and telling the people what is needed and that they are going to all they can to make it happen, there would be far more support for these programs.

If I were Harry Reid, I would bring the jobs bill to the Senate everyday and every time the Republicans blocked it I would be going to the people and let them know that the Republicans are stopping jobs and holding back the economy. If nothing else, it would generate a new discussion - Changing the message to the people instead of letting the Republicans do this with each debate and on their right wing stations.

We need our message before the people and then you would see an even great demonstration of support - Occupy Wall Street would become the real mantra of the 99% because it would show that there is hope for our real concerns.
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bobt755907
10:29 AM on 10/19/2011
One of my scariest thoughts is that Reich is teaching economics to young people at Berkeley. Can you imagine the nonsense that this guy is teaching his students? Most everything students "learn" from this guy will have to be debunked and the truth about how economies work will have to be relearned. Many will be brainwashed; never knowing the truth. If you don’'t believe me just look at the Obama economy for a real world application of Socialism. Socialism is a false promise; it always fails. It produces more poverty, not less.
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jgarma
03:03 PM on 10/19/2011
What would be helpful to the Reich zombies is if you'd share the rigor of your analysis that lead you to your conclusions.

While I'm not an advocate of Socialism and believe that Obama is not either, a little Internet research comparing American to socialist-leaning western European and Scandinavian countries will show that we're far behind them in some important parameters, such as education, productivity, health care, longevity, birth mortality and upward mobility.

Can you explain that? Perhaps it's not entirely due to their type of governance, but do you know why they're doing better in those areas?

Yes, their economies are now being threaten by the debt bubble, but is that due to socialism, or ineffective or nonexistent financial regulation, hardly a socialistic tenet?
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Shaun Hensley
The American Experiment has failed
12:09 PM on 10/20/2011
The economic reality which we live in today debunks your ideology.
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bobt755907
11:22 AM on 10/21/2011
You are the failure, not America. This country has given you the best opportunity that you can have on this planet to make something of yourself. No country in the world offers the freedoms and opportunity that you enjoy. If you fail here, you will certainly fail everywhere else. The one that's failing you, looks back at you every time you look in the mirror. To change, you must get off your butt and do something about it. The government is full of false promises. Waiting on the government to rescue from your situitation and blaming others will not work.
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wendynyc
Climate Change is Real!
09:34 AM on 10/19/2011
United States of Corpo-facist America has bought our politicians hook, line and sinker!

Get the money out of politics!
09:17 AM on 10/19/2011
So many of the points in this article seem obvious, but the political will won't ever be there so long as elections depend on private money. Our two party system is really a good cop/bad cop system. The regressive Republicans slap us down and the Democrats make a show of softening the blow, but the agenda is the same on both sides of the isle because the sponsorship is coming from the same places. We need a valid third party.
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jgarma
03:05 PM on 10/19/2011
Perhaps a third party could help, but under the current way political business is conducted, it would be co-opted by private money. What we need is money out of politics. Period.
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johngary66
Accused of heresy and decided to go with that.
06:19 AM on 10/20/2011
A third party, if they could get on the ballet could win by making Big Money poison to all politicians who accept it. How by promising, and unlike Obama keeping the promise to accept only legal individual donations and Public Financing. Big Money should be the issue in 2012 with OWS in the perfect position to make it the issue. If a candidate uses only Public Financing he/she truly only owes their allegiance to the people. The candidates that take Big Money are expected to do the bidding of Wall Street. Obama received twice as much money in 2008 as John McCain from Wall Street. What will he do for Wall Street as a lame duck President who never has to answer to Main Street in an election again? If Obama has no primary challenger, we definately need a third party.
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Robert Frank
My last name is FRANK so thats what I am..
09:01 AM on 10/19/2011
republican, debate, and intelligent do not belong in the same sentence
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Bobbie Jo Justice
08:58 AM on 10/19/2011
JOBS PLAN.

You tell corporate america, you have exactly 30 DAYS to bring back every job to america that you have sent overseas the last 30 years or I am throwing the senior management of your company in jail for the rest of their lives, NO TRIAL. Charge them with high treason

you tell corporate america, start hiring people at good salaries, AND I MEAN TODAY, or I am throwing the senior management of your company in jail for the rest of their lives, and once again, NO TRIAL. Charge them with high treason.
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Medicine13ear
Joy cometh in the morning.
09:06 AM on 10/21/2011
Forget about charging them with anything -- sic the drones on them.
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bllnsinchnge
peace, markets, freedom
08:54 AM on 10/19/2011
Cut the DOD spending, fantastic.
Public spending for campaigns: horrible idea, throwing more taxpayer earned money away on popularity contests.

By now Reich has had time to read Ron Paul's plan. The only other option is for us all to succeed from the District of Colombia and start over.
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jgarma
03:13 PM on 10/19/2011
Yes, public spending for campaigns would cost money, naturally, but look at the whole picture. Consider how much money would be saved on the other side of the ledger when highly influential special interests are no longer getting there corporate welfare. The net savings would be BILLIONS!
08:35 AM on 10/19/2011
Mr. Reich, thank you so much for being one of the few journalists who is able to spell out the problems we face in clear, concise manner. The parties (especially the Republicans) are starting to look ridiculous mouthing personal diatribes when our way of life is on the line. What scares me is this: We can't have a healthy, prosperous United States as the fathers envisioned without a middle class that is large, prospering, educated and healthy. To do this, most of us progressives agree, we must generate, as you put it, large scale changes that are up to the scale of the problems we face. If the extremely wealthy are not willing to pay their FARE SHARE, the middle class is doomed. Maybe they aren't willing, maybe the Congress is full of bought Politicians. If so, can the majority survive?? I don't think so. We are in this for the whole ball of wax. If people don't realize this soon, we will lose the freedoms and quality of life we have enjoyed in this amazing experiment called democracy. Thank you.
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08:34 AM on 10/19/2011
Yes on healthcare (not health INSURANCE for all) and yes on publicly financed elections.

Mr. Reich, I have no idea why this president chose to not include you in his cabinet. He used you to get elected, then, like he's done all progressive minds, he threw you away. It is a shame that brilliant minds like yours, strong leadership like Howard Dean, and others has to stay on the sideline, instead of being in power so that you may lead us from the brink.

We need a real change. We really, really do!
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lostnacfgop
Tiny Ripples of Hope from a Blue State's Red spot
08:26 AM on 10/19/2011
Professor, a number of us are watching these debates to remind ourselves just how awful of an alternative is being offerred by the other party. It helps salve the disappointment that the current President's solutions have not been large enough, and serves as a reminder that we shouldn't want any of the nomination hopefuls to pick our septic tank pumper, let alone determine the direction of the Supreme Court for the next 20 + years . . .
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dkrypt
Unencumbered by political correctness
08:14 AM on 10/19/2011
Government is bad, Medicare and Medicaid should be cut, "Obamacare" is bad for the economy, undocumented immigrants are much more of a burden than a boon, the military should get less money, taxes should be temporarily raised to eliminate debt then permanently lowered on corporations and the everyone, and regulations should be gutted.
Butquestioning
Searching for truth
11:31 AM on 10/19/2011
Wow...you really have bought into the right wing propoganda. Apparently you don't remember what it was like before Medicare or Medicaid. Maybe you don't understand that deregulation has caused most of the damage to our economy, jobs, the consumers and workers.

Deregulation has given us the latest recession that caused the loss of millions of jobs yet business and the Repulbicans want us to believe the it is regulaitons that are stopping job creation....how idiotic that argument is. And it is not just this recession but also look back in our past and see the collapse of the S&L's in the 80's or even the lack of inspections in the Gulf that led to the oil leak that shut down nearly the entire Gulf coast for many months.

We have the greatest disparity of wealth of nearly any country in the world - ranking us 31st of the 34 OEMC members. and the gap is widening everyday. But there are those like you that want to let the corporations and the wealthy continue to take from the middle class without any concerns or controls that once protected us.
HopeWFaith
We the People
08:01 AM on 10/19/2011
Robert, I have shared your article with many others across the country. I hope they bring it to all their friends, and together we all make an impact by supporting these ideas of yours, writing letters and actually mailing them to all of Congress, not just our own Reps. Americans have to DO, not just watch. It is our duty to save this nation from utter devastation by the likes of the so called middle and the definitely Extreme Right.

It is the middle of the road attitude and the extreme right combined who are bringing this nation to its knees. NO ONE with a deep commitment to true RECOVERY is acting on our behalf. Even our own President needs to be much stronger in his plans put forth to make any serious recovery real. Why isn't he? Bold decisions are definitely needed. Bold actions that have broad and positive impact are needed immediately. The more bold and powerful ideas would garner constant and tremendous outcry of support from every corner of this land, were they put forth today by Barack Obama and the Democratic Senate. Whether they believe such ideas would be doable or not, is irrelevant. Just getting them out to the nation is what is needed. Democrats and Independents want severe, but positive actions proposed. We are just not seeing them.

Thank you for your constant and unswerving support of the United States - the People!
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08:01 AM on 10/19/2011
There are two things that strike me the most clearly:

(1) Political action in this country has been controlled by one, two-headed corporation (the Republicrats a.k.a. the Demoblicans) for fifty years, and they still can't imagine anyone thinking outside the box.

(2) "For every possible ill, your doctor gives a pill." A national or international economy cannot be treated symptomatically. Except that there's a whole lot of money in it.
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jgarma
03:16 PM on 10/19/2011
Yep, and if you seek to treat the cause not the symptom, you'll be lead to do something about the money in politics. Each presidential candidate will likely spend more than $1 billion in their presidential run. Unbelievable!
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cyberfringe
When the going gets weird, the weird turn pro.
07:49 AM on 10/19/2011
These are great ideas! What is more, they symbolize what Democrats stand for: the idea that we are all in this together and must help each other. Everyone is important. Is it really too much to ask that those who have more should help more? Or those that need more help should receive it? Let's solve people's problems first. Corporations - move to the back of the line.