Whether or not the United States has officially slid into a recession, the evidence of severe economic disruption is incontrovertible. The Bush Administration and its allies insist on prolonging a war that is not only extremely costly in terms of human life, but also a major drain on the economy. Our politicians keep pandering to the rich and major campaign contributors, while the middle class is being squeezed out of existence. Meanwhile, the national debt continues to escalate, and we are mortgaging the future of our children.
Iraq War.
The political and military reasons for responsible withdrawal from Iraq commencing immediately are compelling. In addition, from the economic perspective, the costs of the war are staggering. Additionally, they are being financed largely through increasing our already overblown national debt.
The War in Iraq is costing $12 to 15 billion per month. In their new book, The Three Trillion Dollar War, Nobel Prize-winning economist Joseph Stiglitz and co-author Linda Bilmes project that the Iraq and Afghan wars together will set the United States back between $1.7 trillion and $2.7 trillion or by 2017. Congressional Budget Office (CBO) estimates are more conservative, but even the CBO has forecast a cumulative costs of $1.2 trillion to $1.7 trillion for the two wars by 2017. In both the Stiglitz and CBO calculations, Iraq accounts for three-quarters of the costs.
Moreover, most of United States reconstruction assistance to Iraq has been in the form of grants not loans. In the future, any reconstruction dollars should be restricted to loans. In addition, as the country sitting on the second largest oil reserves in the world, Iraq should be required to pay the energy costs for all ongoing in-country U.S. operations. Some political leaders, particularly in the Senate, have already begun thinking along these lines, which Jan Schneider wholeheartedly supports. While we our rebuilding in oil-rich Iraq, our own federal government is too strapped to make necessary investments in roads, bridges and other essential infrastructure at home. Surely it is long past time for Iraq to start paying its own way.
Endangered Middle Class.
Stratospheric energy prices, escalating food costs, predatory lending practices, burgeoning foreclosures, ever-increasing outsourcing, unimpeded illegal immigration and other unprecedented pressures are threatening the very existence of our middle class. A prosperous middle class is the foundation of democracy.
The recent bipartisan 2008 Economic Stimulus Package is a welcome move in recognizing the need to jumpstart an ailing economy. Awarding several hundred dollars to taxpayers is, however, paltry compared to the magnitude of the problem. To avoid descent into desperation by many of our working families, our federal government needs to undertake longer-term aggressive actions. These should include: creating emergency housing funds to help state and local governments deal with escalating foreclosures; stemming lending abuses and curbing excessive interest rates; providing emergency energy assistance to families; investing in efficient alternative energy technologies; closing loopholes for offshore corporations; reversing incentives promoting outsourcing; and modernizing job creation, worker retraining and unemployment compensation programs.
Moreover, healthcare has become a middle class crisis, bankrupting many families. Some 47 million Americans are without any health insurance and tens of millions of others are underinsured in the country with the most expensive healthcare system in the world. Apart from healthcare being deemed a basic human right, a healthy population and particularly a healthy work force is crucial to a healthy economy. Further, the fact that the United States is the only wealthy, industrialized country without a universal system puts our manufacturers at a great trade disadvantage. For example, more than $1,700 in employee and retiree health benefits is built into the price of every American car. Jan supports a single-payer national health insurance system, preferably modeled on an updated, cost-efficient, pay-as-you go Medicare.
Rising National Debt.
The dollar keeps plunging to new depths, while oil prices have soared to new highs. More and more American families are losing their homes in the mortgage bubble, while the federal government is bailing out major investment firms. The United States is hemorrhaging jobs through outsourcing, while job creation and unemployment statistics are increasingly disappointing and our government seems unable to stem the tide of illegal immigration.
While the economy is sinking, the national (public) debt keeps rising. The national debt is approaching $10 trillion. With a United States population of about 304 million (legally present), that means close to $31,000 for every man, woman and child. For 2007, the debt neared 40% of gross domestic product. If one adds in Social Security and other unfunded mandates and phantom trust funds, the effective amount approaches $60 trillion.
U.S. National Debt to the Penny
The American people are hungry for change in our economic and social policies. The public at large and voters in the Florida 13th Congressional District are seeking leaders in Congress who will stand up for the public interest, seek balanced budgets and combat entrenched special interests. Jan Schneider, a lawyer with a long background in promoting financially and socially sound economic policies, will fight for measures both to stimulate the economy and to promote government and corporate accountability.
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