September 13, 2003
Krugman Rides Again
Thanks to Long Story; Short Pier, we're pointed to an editorial where Krugman explains the tax cut con.
He talks about the estate tax, the supply-siders, the lucky ducky argument, and the starve-the-beast mentality of those who want to drown government in a bathtub. He lays out who benefits from the current tax structure, and points out that the current crisis was not only expected, it was intended. And in the course of all of that, explains where our tax money goes, and what has to give if we keep these infamously tilted cuts. He closes:
Posted by natasha at September 13, 2003 11:20 AM | TrackBack...The astonishing political success of the antitax crusade has, more or less deliberately, set the United States up for a fiscal crisis. How we respond to that crisis will determine what kind of country we become.
If Grover Norquist is right -- and he has been right about a lot -- the coming crisis will allow conservatives to move the nation a long way back toward the kind of limited government we had before Franklin Roosevelt. Lack of revenue, he says, will make it possible for conservative politicians -- in the name of fiscal necessity -- to dismantle immensely popular government programs that would otherwise have been untouchable.
In Norquist's vision, America a couple of decades from now will be a place in which elderly people make up a disproportionate share of the poor, as they did before Social Security. It will also be a country in which even middle-class elderly Americans are, in many cases, unable to afford expensive medical procedures or prescription drugs and in which poor Americans generally go without even basic health care. And it may well be a place in which only those who can afford expensive private schools can give their children a decent education.
But as Governor Riley of Alabama reminds us, that's a choice, not a necessity. The tax-cut crusade has created a situation in which something must give. But what gives -- whether we decide that the New Deal and the Great Society must go or that taxes aren't such a bad thing after all -- is up to us. The American people must decide what kind of a country we want to be.
Krugman is really doing some good writing and analysis lately. He did an interview at NPR Krugman Interview) on 9/10/03. The link is to the audio file and it is well worth listening to.
I beg to disagree though on Social Security pulling the elderly out of poverty. Until, the demographics started to shift in the 1980s and the elderly became a larger and more political group (thanks in part to groups like the Gray Panthers and AARP) the elderly remained the largest poverty group. With the increased numbers and political lobbying, the retired began to get more political concessions and program funding (including changes in Social Security). Unfortunately, the money was largely shifted from children (who now make up the larget poverty group). However, the status of the retired has been shifting (even as thhat age group grows larger) as spiraling costs of living and medical expenses have eroded the Social Security benefit. Hence, we see increasing numbers of the formerly retired returning to part time (and largely low paid) employment (i.e. MacDonald's). The part time/ low pay is not just ageism, but also chosen to not jeapordize Social Security benefits.