Ten ideas to fix the economy
By Frank Moraes
I have this strange idea that I don't care for Dylan Matthews over at WonkBlog. But I just looked at my writing over the last year, and I find I am always very impressed with his work. I know that from time to time, he falls into false equivalence and splitting-the-difference fallacies. But mostly he is a very good reporter who understands economics.
Last week, he wrote perhaps the best thing I have yet seen from him, "Ten Ways to Reduce Inequality Without Raising Tax Rates." He lists ways that will reduce inequality for "both sides to get what they want." That's reaching up to Ezra Klein-level adorableness. I am far too cynical to think that Republicans would ever go along with these ideas. The reason is simple: Republicans like inequality; they are as a rule against anything that is good for the country generally. (I would not have said this 30 years ago.)
1. Make it easier to start and join unions. Oh, there's a proposal Republicans are going to jump on! This is a great idea. Unions are one of the big reasons why workers shared in the productivity gains after WWII for 30 years and their demise is one of the big reasons why workers have hardly shared at all in the gains of the last 30 years.
2. Weaken the dollar. This is all about big dicks on both sides of the aisle. A weak dollar makes our exports more competitive. But those who already have wealth hate a weak dollar because it lowers what their wealth can buy. But this is a no-brainer: a weak dollar is good for the economy. Politicians like a strong dollar because it makes them think they are powerful. Or something.
3. Promote trade in highly-skilled professions. This is one that Dean Baker pushes. We have allowed globalization to hit low wage workers in manufacturing, but we continue to practice protectionism for doctors, lawyers, dentists, college professors, you name it. If we had a truly free market, workers would have less money, but they would need less to pay for things like healthcare and education.
Read more »
Last week, he wrote perhaps the best thing I have yet seen from him, "Ten Ways to Reduce Inequality Without Raising Tax Rates." He lists ways that will reduce inequality for "both sides to get what they want." That's reaching up to Ezra Klein-level adorableness. I am far too cynical to think that Republicans would ever go along with these ideas. The reason is simple: Republicans like inequality; they are as a rule against anything that is good for the country generally. (I would not have said this 30 years ago.)
1. Make it easier to start and join unions. Oh, there's a proposal Republicans are going to jump on! This is a great idea. Unions are one of the big reasons why workers shared in the productivity gains after WWII for 30 years and their demise is one of the big reasons why workers have hardly shared at all in the gains of the last 30 years.
2. Weaken the dollar. This is all about big dicks on both sides of the aisle. A weak dollar makes our exports more competitive. But those who already have wealth hate a weak dollar because it lowers what their wealth can buy. But this is a no-brainer: a weak dollar is good for the economy. Politicians like a strong dollar because it makes them think they are powerful. Or something.
3. Promote trade in highly-skilled professions. This is one that Dean Baker pushes. We have allowed globalization to hit low wage workers in manufacturing, but we continue to practice protectionism for doctors, lawyers, dentists, college professors, you name it. If we had a truly free market, workers would have less money, but they would need less to pay for things like healthcare and education.
Read more »
Labels: Dylan Matthews, education, fiscal policy, inequality, labor issues, tax policy, U.S. dollar, U.S. economy, U.S. Federal Reserve, unions
posted by Michael J.W. Stickings at
3:45 PM
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