Society & Economic Policy

This post is going to be a struggle to keep clear because my thoughts are not fully developed.

Link to Article that Inspired this

The article outlines the societal outcomes that have arisen from the pressures of globalization.  The new information for me in particular is how much worse we are in certain measures versus many other developed countries.  We spend less on early childhood education and have much more inequality in the success of education across this land than other countries do.  Combine that with globalization and you have the growth in income inequality.

I have benefited from globalization and my education made me well equipped to compete.  I hope that I have imparted that advantage on my child.  Time will tell, but it looks good so far.  I believe in personal responsibility for parenting and education, but I also believe that as a country we should benchmark ourselves against other countries and think seriously about why we may be falling behind and what should be done about that.

For the last 30 years, Supply Side Economics has dominated Economic Policy.  Tax Policy has favored  capital over labor.  Most of my thought process thinks leaning in this direction is healthy and would have resulted in our having widespread solid economic growth.  It is possible that the Great Recession skews current measures and the interactions on a longer term basis are in a sounder position, but I am not so sure given the length of the trends.

In particular, the ability of the wealthy to convert ordinary income to capital return is not fair and working for income should be treated fairly by economic policy.

What is most interesting about many rich people is that they volunteer to give their wealth to charity as they age.  But many of them do not want to pay higher taxes that would support paying for early education for the masses.  Wouldn't it be better to give them skills so they don't need charity as they age?

I know reality is complex, but I have to conclude this ramble with the one thing I know is different between the U.S. and the countries that rank higher in quality of life societal measures.  Universal Health Insurance paid for by individuals and neither tied to employment nor paid by the employer.  Obviously we do not have that in the U.S.

What would such a system look like?

Individuals would pay for their own health insurance.  It would look like health insurance today but with the government paying some portion of the health insurance rather than the employers.

Health Insurance would be portable as you move from job to job.  No More Cobra.

The same Health Insurance coverage across state lines.

National Medical Malpractice policy, no more shopping for jurisdictions, with a focus on payment for incompetence not innocent mistakes.  I know that is complicated but I really believe people should not look to or become rich off of insurance claims.  Particularly, when a Dr had good intentions.  Reform of this should address the situation where tests are given simply to provide defense from malpractice lawsuits.

You can leave the providers of health care in the private market.  There is no need to employ everyone as in Socialized Medicine.  Competition on being cost competitive there should be encouraged.



So, what am I advocating?  Tax policies that level the playing field between capital and labor.  Reduce and eliminate as much as possible tax subsidies and use that revenue to reduce tax rates preserving that element of supply side economics.  National Health Insurance.  And some focus on raising education standards for those in rural and lower income areas.  And I am saying vote for moderates of both parties who understand this need for balance.