Guest guest Posted June 30, 2005 Report Share Posted June 30, 2005 r Thu, 30 Jun 2005 19:41:57 +1000 (EST) Let good sense trump ideology By Mario M. Cuomo http://news./s/usatoday/20050629/cm_usatoday/letgoodsensetrumpideology;\ _ylt=AtwrZ5ADrrFZX._6_Hx2I5Gs0NUE;_ylu=X3oDMTA3YWFzYnA2BHNlYwM3NDI- Let good sense trump ideology By Mario M. Cuomo Wed Jun 29, 6:47 AM ET Looking back to the beginning of the Ronald Reagan years in 1981, when huge tax cuts for already-prosperous Americans and a shrinking of programs benefiting the rest of the population were launched, it's clear that the forces of great wealth have been conducting a class war that they are winning decisively. The battle continues today as Republican " wealth warriors " press for the privatization of Social Security, revision of bankruptcy laws to benefit corporate financiers at the expense of debt-ridden middle-class credit card users, the repeal of workplace safety regulations, and in other ways are forcing struggling Americans to shoulder responsibilities that have been government responsibilities for most of our modern history. For example, the Bush administration is seeking to alter Medicaid by dropping much of the protection against catastrophic illness and substituting more access to primary care. That's an attractive notion unless you are seriously ill. Similar cuts are surely in store for Medicare once the president is finished with his Social Security misadventure. This reduction in necessary programs is accompanied by more tax cuts, largely for the wealthy, including the elimination of billions of dollars in inheritance taxes benefiting only a small proportion of Americans. The champions of the already secure say their purpose in making these cuts is to " starve the beast. " That's a cute way of saying they will use fiscal starvation to end or severely limit existing discretionary programs that help provide education, health care and other social assistance. Assistance is one of our strengths Hundreds of millions of Americans have benefited from government assistance that has helped house them, feed them, care for them in illness and educate them in public, as well as private, schools without being " spoiled " by an excess of government generosity or a lack of accountability. Without those investments, our nation would not be as great as it now is. Rather than starving the beast, the result of the past two decades of conservative economic warfare has been to help create an imbalance of wealth and democracy so great as to be unsustainable. More billionaires and millionaires and annual earners of $300,000 or more now live in the " shining city on a hill, " what President Reagan envisioned for America. But they are still less than 2% of Americans. Despite conservative economists' arcane econometrics providing technical assurance of a " good economy, " the rock-hard and obvious reality is that most American workers are slipping backward toward the millions of working poor as the costs of everything they need most - health care, education, transportation, housing, retirement, security - are growing faster than their income. Either we invest resources to help provide the education, health care and retirement security our middle class and poor workers need and deserve - and produce jobs here in America instead of overseas - or we risk a weakened democracy and an emerging plutocracy, a nation in which the wealthy rule and the rest stagnate. We're uncomfortably close to that already. In analyzing our policies, we need to remember there is a place for ideology, but it is not first place. First place goes to good sense, no matter what political badge it happens to be wearing. We need to get beyond the beguiling simplistics about " big government. " We should instead apply the simple but powerful prescription Abraham Lincoln gave us: " We should do for ourselves collectively through our government the things the market system does not do at all or as well. " Test every proposal against that principle. If the market system would provide elementary and high school education at a cost affordable to all our youth, we wouldn't need public schools. So, too, with health care, end-of-life security, highways, pensions, space travel, the disabled and all the other programs Congress and the presidents - Republicans and Democrats - have enacted that have helped make this nation the greatest in world history. Conservatives respond by saying we don't have the resources needed even to just beef up the most important of these programs, such as education or health care. The compellingly clear answer to that assertion was demonstrated for us by conservative Republicans themselves in the late '80s and '90s. President Reagan started his administration in 1981 with the biggest tax cut in history, cutting rates principally on the highest earners. At the same time he added massive new expenditures, particularly in the military budget. Even Reagan raised taxes The cuts helped produce the serious recession of 1982 and what was then the largest deficit and debt in U.S. history. How did President Reagan seek to solve the deficit problem caused by his excessive tax cuts and spending? By doing what he said he would never do: raising taxes mostly on the wealthy in several different increases that replaced much of his earlier tax cuts. President George H.W. Bush followed suit with his own nearly $100 billion in tax increases, as did President Clinton. What followed? Eight years of economic growth, the four best stock market years in our history, 22 million new jobs, a $5 trillion projected budget surplus, an upwardly mobile middle class, fewer poor and even more billionaires and millionaires as well. The conclusion is irresistible. President Bush and the Republican Congress have provided nearly a trillion dollars in tax cuts to the wealthiest Americans over an 11-year period. Some or all of that wealth can be redirected as tax cuts to the middle class and to the programs both sides agree need help, while reducing the deficit as well. It's time for the Republican wealth warriors to end their attacks and start a period of peaceful reconstruction that works for all Americans - not just the fortunate few. Mario M. Cuomo, former three-term governor of New York, practices law with the international firm of Willkie Farr & Gallagher LLP. 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