Austerity Politics v. Posterity Politics

Are we Keynesians or would we prefer to be serfs? It’s an election year, so we get to weigh on this and other questions. I really think we need to be thinking about creative economics. Market-based economics that are sustainable, that create useful commons instead of quarterly profits, dividends and obscene bonuses. We all get to decide how to make that happen.

As for me, I will be voting for posterity economics. Raise taxes and reinstate the steeply progressive tax rates that discourage bald-faced greed and encourage investment in useful infrastructure. You will hear that taxing the rich won’t raise the funds that we need, that we will have to tax the middle class. That is a calculated threat by the rich to discourage taxing the rich. And besides, look at the demographics, where is this vaunted middle class?

Where are the middle class jobs?

Time to downsize?

A couple of stories from the Washington Post this morning caught my attention:

The Mittster is chillin’ in Israel for a few days after his tour of the London Olympics where he wowed them. well, maybe not. but anyway, he’s out to Israel now. Checking the real estate in Jerusalem. Making contacts with car elevator contractors in case he decides to build a get away place in the Other Holy Land (not salt lake).

Mittster did have kind words for the Israeli health care system. Unfortunately that health care system is exactly the kind of big government interference that the right wing is certain will destroy the soul of a great nation. Here is a piece of the WAPO article on that:

Romney praises health care in Israel, where research says ‘strong government influence’ has driven down costs

Posted by Sarah Kliff on July 30, 2012 at 11:10 am

Republican presidential candidate Mitt Romney had some very kind things to say about the Israeli health care system at a fundraiser there Monday. He praised Israel for spending just 8 percent of its GDP on health care and still remaining a “pretty healthy nation:”

When our health care costs are completely out of control. Do you realize what health care spending is as a percentage of the GDP in Israel? 8 percent. You spend 8 percent of GDP on health care. And you’re a pretty healthy nation. We spend 18 percent of our GDP on health care. 10 percentage points more. That gap, that 10 percent cost, let me compare that with the size of our military. Our military budget is 4 percent. Our gap with Israel is 10 points of GDP. We have to find ways, not just to provide health care to more people, but to find ways to finally manage our health care costs.

Romney’s point about Israel’s success in controlling health care costs is spot on: Its health care system has seen health care costs grow much slower than other industrialized nations.

How it has gotten there, however, may not be to the Republican candidate’s liking: Israel regulates its health care system aggressively, requiring all residents to carry insurance and capping revenue for various parts of the country’s health care system.

Israel created a national health care system in 1995, largely funded through payroll and general tax revenue. The government provides all citizens with health insurance: They get to pick from one of four competing, nonprofit plans. Those insurance plans have to accept all customers—including people with pre-existing conditions—and provide residents with a broad set of government-mandated benefits.

Read the whole article? Go for it.

It’s too bad that the conservatives have no sense of humor or appreciation of irony. They really miss out on the best that their leaders have to offer.

Second piece from the WA Post that jumped out at me:

As ‘fiscal cliff’ looms, debate over pre-Election Day layoff notices heats up

• By Zachary A. Goldfarb, Published: July 30

The deep federal spending cuts scheduled to take effect at the start of next year may trigger dismissal notices for tens of thousands of employees of government contractors, companies and analysts say, and the warnings may start going out at a particularly sensitive time:

Days before the presidential election.

Read the whole piece. I dare you.

I hope that the Dems find a semblance of spinal material and will hold certain feet to the fire. Imagine a budget cut so severe, so fair that it would even cut into defense jobs. Well, try to imagine that. What are the chances?

Each moment we are faced again with the choice of austerity politics or posterity politics. Think on.