We are all oh-so-fond of the political discussions that seem to emerge when relatives and family friends of widely varying political views get together, aren't we? (I'd donate $1000 to any legitimate charity right now if, in return, the good Lord would guarantee that every Thanksgiving dinner for the rest of my life would be politics-free. And that would just be my opening bid.)
So, what do we say when the relatives spout crazy things they've heard from Fox? Here's a few:
1) No, the crash wasn't caused by Barney (Frank), Fannie, Freddie, or the 1990s amendments to the Community Reinvestment Act of 1977.
The real estate bubble was worldwide. Not to mention, even here at home, it applied to high-end real estate as well as subprime, and commercial real estate as well as residential.
2) Yes, the GOP really is sabotaging our economy, either intentionally or through stupidity.
Right now, we've got literally trillions of unmet infrastructure needs. Some are sexy ones, like Atrios' SUPERTRAINS, but many of them are unsexy stuff like water, sewer, highway, and bridge repairs. And it's impossible to imagine a better time to address them. The Federal government can borrow money at negative rates relative to inflation - it'll take less real dollars to pay off the debt in 10 years than we'll get from borrowing it. And because the Western world's economy is depressed, raw materials and labor are about as cheap as they'll ever be.
If you knew your house would need a new roof in the next 2-3 years, and you knew you'd never be able to replace it as cheaply as you could now, and you could borrow the money interest-free for 10 years to replace it, wouldn't it make sense for you replace the freakin' roof now, even if you were unemployed? That's pretty much the situation we're in now as a nation.
Plus, of course, spending the money on infrastructure repair and improvements right now would put people back to work and get the economy going again, while if we wait until times are good (whenever that's going to be), spending on those repairs will just crowd out private investment.
Obama has proposed an infrastructure spending program that's very modest relative to our needs. And the GOP refuses to even let it be discussed in either house of Congress. How stupid (or possibly malevolent) is that?
3) Social Security is not in trouble, and doesn't need 'reforming.'
It's fully funded into the 2030s. We've got more immediate problems. And really, the best thing for Social Security's long-term prospects is a booming economy: the Clinton boom pushed back the date at which the Trust Fund would run out by about 14 years.
And if they don't think the Trust Fund is real, then the fact is that Social Security currently pays for itself through the dedicated tax, and (if the economy doesn't tank further) will continue to do so for some time.
Finally, what else are most old people going to live on? Company-funded pensions are going the way of the dinosaurs, unfortunately, and Social Security will be what most elderly people live on, going forward. Its costs will top out at 6% of GDP. If we can't afford 6% of our national wealth to ensure that people who are too old to work have a tenable income, WTF is wrong with us?
4) Raising the Medicare age won't save money.
OK, it'll save some tax dollars, but not as much as you'd think. People within a couple of years of Medicare age are already postponing medical treatment, to the extent they can, until they're 65 and Medicare will cover them. By which time they're older and sicker, and treatment costs more money, because that's what happens when illnesses go untreated. Raising the eligibility age to 67 will cause more of the same to happen.
And to the extent that it saves tax dollars, it simply dumps an even greater cost on the elderly (or on their insurance if they have any), because if they can get treated privately, they'll get charged a lot more than Medicare would. So it's basically a gain for the insurance companies, and a loss for the rest of us.
And yes, Medicare needs fixing - though it's solvent for several more years. There are a number of attempted fixes embedded in (wait) Obamacare - comparative effectiveness research and the like. The GOP calls these 'death panels.'
What the GOP wants to do is simply spend less money on medical care for the elderly and indigent, by providing them with less care. Every other country in the Western world provides universal health care to their citizens, and at 40-60% of what we spend on medical care. If we can't do the same, why not? Are we not the greatest country in the world?
5) Fixing the economy will undoubtedly aid some undeserving people.
No doubt - but the choice is between aiding a handful of the undeserving (along with all the rest of us), and enduring a crappy economy with 9% unemployment, 17% un- and under-employment, and little if any growth in the economy, for years to come. Let's have some common sense here, OK?
That's a start, anyway. I'd shoot for something more extensive, but the kid's awake and wants some attention. Time to be a daddy.
Happy Thanksgiving, all!
