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Are You Fiscally Conservative Or Fiscally Ignorant?

Posted by: Edward Phelps
Date Posted: November 5, 2009

Among the commentary in the aftermath of Elections 2009 is the notion that many "independent voters" are having a problem with the Obama administrations deficit spending activities.  The word is that these voters are concerned that we are spending too much for things we cannot afford.  So I have a question for these so called fiscally conservative voters who overwhelmingly voted for sweeping "change" in the 2008 presidential election.  Why vote for change you feel we cannot afford???

I am truly befuddled at how easily people can be persuaded to act against their interests with the really absurd argument that we cannot afford to pay for what we need.  For eight years the Bush administration told us we could not afford any programs that benefitted working Americans including healthcare, jobs and living wages and education for our children.  But they spent historically high levels of our money (that we did not have) on a regime change and subsequent war in Iraq.  And Americans took note -- though it took them two terms to notice. And at the next opportunity they voted to have government transform itself and assume the role it was intended as the citizens advocacy and administration system.  A slim majority of Americans with their ill-founded and misinformed anti-tax, anti-government and anti-regulation support ushered in a new and unprecedented era of economic and social disparities growth over the past two decades.  During the New Deal period beginning in 1933, the federal government evolved into an arbitrator in the competition among elements and classes of society, acting to promote some groups while limiting the power of others.  This elevation and strengthening of some newer interest groups allowed these groups to compete more effectively.  Perhaps the strongest legacy of the New Deal was to make the federal government a protector of and a supervisor of competition among interest groups. The new deal is criticized as being a failure of deficit spending policies.  But, it was not until the 1970s and 1980s that most of the New Deal regulations were relaxed.  History is clear that it was only after relaxation of New Deal regulations that the current crisis of socio-economic disparities and collapses exploded.  No this is not a Republican or Democratic thing.  Allegiance to parties and any other labels is a real problem.

Let me help with a basic premise all Americans not among the wealthiest 10% must understand.   Government is yours.  It was created for you to be run by you.  But you have shunned your responsibilities and allowed government to be taken over by the wealthiest minority.  You, with your granting of authority and credibility to TV and newspaper propaganda and disinformation.  You with your refusal to apply even the most basic common sense to your lives and your politics.  And you acting endlessly based on your fears instead of your hopes and aspirations.

So here are some basic economic concepts for you:

  1. If you support spending to ensure you have a job and a decent wage, then you will have money to buy things and the economy will grow and there will be money to pay down the deficit.  Duh!
  2. If you support the right of every American to have quality healthcare then Americans will live better, be more productive and fuel growth of the economy.
  3. If you support a public school system that provides a full-spectrum education, including fully funded arts and social studies programs, then our children will be competitive for the jobs that are available and some of them may even create the technologies and innovations that change the world.
  4. If you support your government and support its regulation and oversight powers then you will stop trusting private entities, and the super-rich who run them, to find it in their hearts to do what you need done.  Then there will be billions of dollars available to pay for the things that serve your interests like job creation, living wages, healthcare and superior education in America.

If none of this makes sense to you and your fiscally conservative notions, then keep doing what you've been doing and expecting change.

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