Jubilee Economics

To finish out the month of February, I think it apropos to post concerning that which has been taking up most of the news media coverage in the States this month: The American Recovery and Reinvestment Act, or more commonly referred to as the 2009 economic stimulus plan.  As reports come in of the U.S. economy reaching lows that it hasn’t seen in more than 26 years (that’s before I was born) and with a new announcement today that the economy shrank by 6.2% in Q4 of 2008, which surpasses the 5.4% estimate, more than ever people world over are watching what Washington is doing.

With the ARRA toting a $787 Billion USD price tag, Republicans are griping about its gargantuousness and pointing to the surmounting national deficit.  I only have one question: Where was that concern- that ‘fiscal conservativeness’ when we had ‘cowboy expenditures’ under the Bush administration? Some reports show that Bush spent 11.5 Trillion USD during his two terms.  In fact, in 2001 the Bush tax cuts for the wealthy in themselves totaled 1.35 Trillion dollars (It is my understanding that this total includes the second cuts in 2003), which expire in 2011.  Many claim that they have done next to nothing in aiding a stifling economy. The ‘trickle down’ methodology has been revealed as mythology.  And had McCain been elected, we would have been headed for more of the same (see this article describing the differences of philosophies between President Obama and his former contender McCain concerning taxation). With that put into perspective, President Obama’s stimulus plan is considerably smaller than Bush’s tax cuts.  An article from Think Progressive, goes to greater lengths to ‘put it into perspective’ for us, detailing the economic differences between then and now.  It’s also interesting to note that in 2001, 28 House Democrats and 12 Senate Democrats voted for its passage, and in 2009, 0 House Republicans and 3 Senate Republicans backed the President’s stimulus bill.  I smell partisanship. . .

However, when one asks a Republican governor for his or her opinion, one finds that the partisan dissonance stays in Washington.  Those that are in the trenches of the economic turmoil, have quite a different opinion on the use of tax dollars.  One finds two faces of the grappling and restructuring GOP:  Congressional, one that is trying to return to a more fiscally conservative, neo-orthodox, anti-spending platform to try to rebuild its party base after a devastating election year and a formidable outlook in 2010; and Governing, another one that is not wanting to play the politics game, supporting the stimulus plan, and wanting to start saving jobs and for their respected states.  “It’s funny how the question of stimulus isn’t actually as partisan in real life,” remarked Tom Ryberg, a fellow blogger and concerned citizen.

So Where is the Money Going?

Above, it can be seen the supposed break-down of the ARRA.  This can be accessed at www.recovery.gov. I must admit, that I haven’t read the 1000+ page act, nor do I have intentions to, as I am preparing for studies of another sort- although you can here.  Some things that it entails excite me.  Things like, rail train for transportation (have you ever been to a country that uses train for transportation- one word: amazing.), investment in infrastructure like roads, bridges and airports (paraphrasing President Obama, “if you think we don’t have an infrastructure problem, fly into Shanghai), hydro and solar power, the replacement of governmental fleets with hybrids, the digitizing of medical records, education etc.

In regard to the concerns the congressional Republicans are now expressing, cracking down on the national deficit should be a priority and not dismissed. Just this past week President Obama announced that he has plans of cutting the national deficit significantly by 2013.  This will come about through a number of factors. Two worthy of mentioning now are the withdrawal of combat troops from Iraq in 2010, and the expiriation of the Bush tax cuts in 2011. I, for one am concerned with the increasing amount of our debt that is now being owned by countries such as China, Japan, and oil-producing states. Our nation is addicted to debt- on both an individual and national level. The only time in American history in which there was no national debt was in 1835. A paradigmatic shift in the way the U.S. approaches national debt has been long overdue. As of February 25, 2009 the total national debt was 10.837 Trillion USD, or 65.5% of GDP- $37,851 per capita. Though, we have seen worse times, for example after WWII in 1946 the national deficit rose to and peaked at 122% of our GDP, President Obama states, “We can’t generate sustained growth without getting our deficits under control.”  For more pertaining to this lurking problem and the bleak future that awaits us lest we do enact a paradigm shift see the documentary that was released last year: I.O.U.S.A. the Movie.

I think it’s safe to oversimplify inorder to state that Republicans feel safer with the money in the hands of the wealthy (often times their campaign contributors) to do with what they deem fit- a continuance of the ‘trickle down’ effect; and Democrats would rather see some form of government administration and distribution of tax dollars, investment in government programs, and- although its become taboo to say- when necessary, redistribution.  That’s what excites me most about our President and the 111th Congress.  Look at item #4 in the above chart: “Protecting the Vulnerable.”

…the moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; those who are in the shadows of life; the sick, the needy and the handicapped. ~ Hubert Humphrey, 38th Vice President of the United States

A nation’s greatness is measured by how it treats its most vulnerable members. ~ Mahatma Gandhi

For all those born-again Christians, wealth distribution is a biblical concept.  Try reading Deuteronomy 15:1-18 for starters. It’s amazing how the Bible holds up the poor, the widows, the orphans, and the immigrants.  Perhaps, biblical teachings were not just used to form lofty theological concepts of the metaphysical, but were also used to inform one’s politics and social ethics, forming concepts for the physical. Helping the poor was paramount to the faith of ancient Israel and should be no different today for those of us that share in the Judeo-Christian heritage.  We need a healthy dose of Jubilee economics. As I see it, a $1,000-per-child tax credit for the working poor is a step closer to a just society.

Recently, the President made public a good first step to enact such an economy of Jubilee. His health care plan, which consists of a $636 Billion USD  ‘down payment’ over a 10-year period, will lead us closer to universal health care than we have ever been.  Right now, the U.S. is ranked 37th in health care by the World Health Organization.  Many say the political milieu is much different than 15 years ago when universal health care was proposed by the last democratic President, and with many of the previous members of opposition now on board, it could become a reality.  The time has come when not only the murderers and rapists of this country should be guaranteed health care, but also those in the dawn of their life, for those in its twilight, and for those that are in its shadows.

There will always be poor people in the land. Therefore I command you to be openhanded toward your brothers and toward the poor and needy in your land. ~ Deuteronomy 15:11

-MLW