Robert Reich (The Economic Challenge Ahead: More Jobs and Growth, Not Deficit Reduction)
I actually agree with Progressive economist Robert Reich on a couple things here, can't remember the last time that has happened. That since the deficit is finally under a trillion dollars and now around five percent of our GDP. That its not as big of a problem as it has been and we can debate what caused this and so fourth. The problem with Dr. Reich's argument is he didn't mention the national debt still 16T$ and we just can't allow that to grow faster then the economy indefinitely. The other thing I agree with Dr. Reich in is that jobs and I would add economic to go along with job growth should be our number one priority as it. Relates to the economy but my point is we should be doing that as we get the debt under control. No its no longer growing faster then the economy, I wrote a blog three years ago arguing for more. Infrastructure investment in this country and wrote a blog eighteen months ago calling for a National Infrastructure Bank. We simply for our economy and our infrastructure system need to rebuild it and thats going to take around 1TS over a 5-10 year period. And we can do this as we are doing infrastructure investment.
We can pass a comprehensive which I have a feeling will be the number one used word in America. This year at least as it relates to national politics, comprehensive deficit reduction plan to finish the idea. Over a 5-10 year window that includes savings and reforms in entitlements and the broader social insurance. System, defense and the tax code and we could get around 1T$ by reforming the tax code and doing things like. Encouraging business's to invest and hire in America not oversees and eliminate wasteful tax loopholes. Especially corporate welfare, bringing down our corporate tax to a more competitive rate. Forcing Medicare and Medicaid to stop compensating doctors and hospitals based on the amount of healthcare they provide. And compensate them based on how healthy the patients are, having wealthy seniors pay more for their Medicare and Social Security. Creating a public option for Medicare, reforming the broader safety net by making all of it financially self reliant. And turning those programs into empowerment programs designed to move people out of poverty.
When it comes to defense, not not cut it across the board but cut back in areas that we don't need to spend or shouldn't be spending on. Like in Europe, Saudi Arabia. Korea and Japan and using the drawdowns from Iraq and Afghanistan. To go for deficit reduction and having those cuts come from developed nations that we are forced to defend. Have those countries defend themselves or pay us to defend them, so we don't have to hurt our own national security. And then pass an economic growth act that rebuilds this country and encourages business's to invest and hire here and pay for that. And we can rebuild our economy and perhaps erase the deficit and have a debt that no longer gets in the way of. Our economic and job growth.