Jobs and the “job creator” fairy tale

December 22, 2015

At this season in which charity is high on our agenda, I’d like to address some economic issues. I recently spoke with you about what the oligarchs are doing to American democracy. This time I’d like to talk with you about is happening to our jobs and wages. Jobs have recovered slowly from the 2008 crash; wages have flatlined for a decade. Candidates should be talking about jobs and wages.

Some want to turn money over to what they call the “job creators” – fabulous, fairy tale language. When taxes were cut to the 1%, the great bulk of that money didn’t finance jobs, or even trickle down to the rest of us. The 1% used it for finance, to jack up asset prices, buy and sell companies, close factories and outsource jobs abroad, or build McMansions, everything but better lives for American workers, who put in long hours at multiple jobs, with little to show for it but worry about the future. Creating jobs by lowering taxes hasn’t worked for decades because we already did it decades ago; now it’s become a fairy tale told for the gullible. It’s amazing the demonstrable nonsense that people can convince themselves of.

Our society insists it’s everyone’s personal responsibility to find work. As a legal aid lawyer, I worked closely with unemployed, mostly African-American clients. I felt like I was watching them die. Losing a job left them feeling worthless; nothing was more deeply hurtful or more threatening. With little to tide them over, they lived where they could afford housing, far from jobs, without cars to get to interviews or available work, or any network of employed friends to point them to possible jobs. On-the-job training left them few transferable skills, and parents struggled to find affordable day care. The more they needed work, the harder it was to find a job.

We had a fellow do odd jobs, yard work, pick up bottles and cans for the deposit, after losing his last job for lack of transportation. A lawsuit for unrelated injuries got him enough to buy a car. Instantly he was working, steadily.

The stuff called tough love isn’t love but it is dumb. People without assets or work become vulnerable to doing anything just to stay alive. That affects all of us.

The unemployed cost us money, for unemployment insurance, because of the dislocation that unemployment generates, and for lots of police because we fear the jobless. They cost us money because of the decrease in property values, the poor prospects of their children and those who live in areas of high unemployment. We pay in the fear of going out at night or stepping on to the wrong street; and we lose the multi-generational workforce we want for our own programs and projects.

Any responsible business person would include all the costs to individuals and our communities in their balance sheet for deciding whether to support a job program. To evaluate the cost to each of us individually in taxes, compare it to the taxes we have to pay for not putting people to work, as well as the value of the work they could do.

The notion that all taxes are bad for us, is sloppy economics. Justice, fairness and safety are not trade-offs but different sides of the same coin. I’d put people to work rebuilding and improving the infrastructure and other needed projects. There are a lot of things we can do to boost the economy and provide jobs if we are not bamboozled by fairy tale language about what the princes would do for us if only they had even more money.

— This commentary was broadcast on WAMC Northeast Report, December 22, 2015.

 


Yipes – taxes for the New Year??? !!!

December 30, 2014

Some years ago I called Phil Shrag whom I knew from law school. He’d run the National Organization for the Rights of the Indigent for the NAACP and worked for the New York City Commissioner of Consumer Affairs. Phil was and is a very public spirited person. At the time he was teaching at Columbia. I don’t remember what I called him about but at some point in the conversation we made small talk. I asked him what he was teaching. Tax. That was a surprising answer since none of the things Phil had done suggested significant involvement with the tax code. But he pointed out that every public policy runs through the tax code. So it made a lot of sense.

Phil of course was right. Global warming? The tax code determines how cheap it is to buy carbon based fuels that warm the globe. And it determines whether the producers or somebody else has to pay for the cleanups, the environmental damage, dealing with the warming planet. And it determines what the carbon hawkers have to pay for threatening to obliterate our descendants and end human life on this planet. No tax – go ahead and choke the globe.

Antibiotic resistant disease? The tax code determines what cheap methods are OK to raise and sell animals and animal products. Jam animals together for “efficient” processing and they need antibiotics. The tax is on the land, not the antibiotics. Voila, it’s cheap to feed antibiotics to animals and ship them to us with resistant diseases. Of course we’ll pay the price with illness, doctors, and grieving for our dear ones – but, hey, the milk was cheap.

Landfills? Who pays for those? Do you get a break for composting, sorting, recycling or not buying so much? Nope – we all pay for garbage. But the tax could be shifted to producers and off our shoulders. Things would instantly get less wasteful.

Ever since the elder George said “Read my lips; no new taxes,” taxes have become the third rail of politics – instant suicide for any politician even to bring it up. But health, wealth and survival are right there in the tax code. We need smart taxes, that shape us the way we ought to be. The freedom to corrupt our country and our world with garbage, poison and heat isn’t legitimate freedom – that’s one person’s “freedom” to mess with another’s life, or the lives of many. That’s not freedom, not what our forefathers’ fought for, not patriotic, sensible or constructive. We need smart taxes. Now. Taxes that will make our world a better place.

So last week I wished for peace, health and good government – figuring I was on mostly safe ground. So now I’m blowing it – wishing for new, I’d rather say better, taxes. TAXES for the New Year! That Gottlieb character must be crazy.  Like a fox? Naahhh. Just nuts.  Republicans won’t allow it anyway.

Oh, devilishly inspired by Paul and Anne Ehrlich, how about a tax on more than two children per family – NO, don’t throw tomatoes, they stain. I’m out o’ here! Happy New Year everyone.

— This commentary was broadcast on WAMC Northeast Report, December 30, 2014.


Band-aids or Systemic Change

July 1, 2014

Let me try to put some things in perspective. I spent a decade in the Legal Service Program which provides lawyers for the poor, first as a store-front lawyer, then in the management of programs or running a clinic. One of the recurring issues we used to debate was whether to focus on what we called “band-aids” or systemic change.

Band aids were individual relief for individual clients, generally much easier to get, but taking quite a lot of time for the few people we could help. It was important work, very satisfying and very frustrating at the same time because we could never make a dent in the needs most of our clients had that way. Read the rest of this entry »


Let’s understand the argument about balancing the budget

March 18, 2014

 Let’s understand the argument about balancing the budget

When the Bush Administration took us to war in Iraq and Afghanistan, they decided not to pay for those wars with taxes. In fact they insisted on giving people tax breaks, including those for whom war taxes would not have affected their lifestyles. The well-understood consequence was that someone else would pay for the wars. At the time the talk was that the next generation would have to pay. Read the rest of this entry »


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