Just listened to a speech by Elizbeth Warren (the new darling of the Progressives) about the decline of the middle class.
She has done an excellent job of identifying many of the problems faced by the middle class and the poor. Higher education costs, higher medical cost, lower savings. And she has identified the issues as higher cost of housing and transportation.
But her solution, along with the bulk of the Democratic party, is to take from those who have and give to those who need. It’s classic ‘addressing the symptoms’ while ignoring the ’cause’.
The symptoms are higher costs (mostly driven by inflation, while some are driven by ‘choice’) and the cause is lower or sustained real income.
Redistribution (taking from those who have and giving to those in need) addresses these symptoms but does nothing and may repress the solution to the cause.
Those who have, are the ones that create jobs and economic opportunity. When their wealth is taken from them they have less to create those jobs.
It is a self perpetuating decline in economic growth. We are seeing that in the present time.
I am constantly amazed by the left decrying the technology that relieves our citizens of hard labor and denouncing change because it reduces manual labor jobs. This is the very definition of ‘conservative’!
We should applaud change and technology. It makes our life easier and better.
We should even applaud the transfer of production to lower cost off-shore locations. Again it makes our life (economic) better with lower cost products.
Unfortunately this increase in technology and seeking lower cost production has gone hand in hand with an increase in regulation and taxation that has limited our ability to innovate. We are finding it harder and harder to compete.
This is the ’cause’ of the problems that Warren and most Democrats simply refuse to acknowledge. Their consistent answer to the ‘symptoms’ is to redistribute wealth and increase government regulation.
This approach is simply not working. It’s time for a change. We need to return to free market capitalism.
We must level the playing field and eliminate or at least minimize the ‘corporatism’ that has corrupted the ‘free market’. A single step with great potential to do exactly that would be to eliminate the corporate tax.