The incongruity between Congress's priorities and the needs of average Americans was in stark contrast last week. As the Senate prepared to vote on estate tax repeal, the Center for American Progress held a briefing June 6 to explore the growing problem of economic insecurity facing many Americans.
Panelists speaking at the briefing were:
- Jared Bernstein, Economic Policy Institute economist and author;
- Louis Uchitelle, New York Times reporter and author;
- Paul Krugman, New York Times op-ed columnist and author: and
- Euguene Sperling, former national economic adviser to President Clinton and Center for American Progress fellow.
The rise of economic insecurity in America includes the growing risk individuals face concerning their wealth, and the diminished social safety net available to those who have fallen on hard times. The panelists touched on the ever-widening wealth gap, but also the shift, which has been stepped up in recent years, from public sector services to more selective and expensive private sector services.
Sperling defined an effective policy to counteract growing economic insecurity as one that can be judged as "lifting all boats." Policies created to spur enormous GDP growth are one thing; but, when these same policies provide opportunities and economic security across the income and wealth spectrum, they prove much more meaningful to the majority of Americans, according to Sperling.
Repeal of the estate tax, voted on June 8, is a prime example of policy that obviously would fail to "lift all boats." On the contrary, the tax giveaway for less than 1 percent of the wealthiest Americans only lifts the yachts of the ultra-rich. While some claim repeal of the tax would give a boost to the economy and spur investment, in reality much of this would have simply further padded the savings accounts of heirs lucky enough to be born to extremely wealthy parents.
Panelist Jared Bernstein discussed policies, such as estate tax repeal, that leave the average American hanging. The policies, favored by the president and the current congressional leadership according to Bernstein, should be dubbed "YOYO economics," which stands for "you're on your own." He describes the trend toward YOYO economics in the following way:
"American politics have always been a balancing act between protecting the rights and privileges of individuals, and working together to meet profound challenges. Yet in recent years the emphasis on individualism has been pushed to the point where it is hurting our nation's standing in the world, endangering our future, and, paradoxically, making it harder for individuals to get a fair shot at the American dream."
Our economic policies, now more than ever, Bernstein explained, should reflect the model of WITT, rather than YOYO. WITT stands for "we're in this together." With WITT policies, individuals are not told by their government that they must fend for themselves. Instead of starving the beast--lowering federal revenue to the point that program cuts become necessary--Bernstein suggested a collaborative approach to meet these challenges and serve as the "rising tide to lift all boats."
