Bush's Economic Agenda

Based on what I've read in the past day and a half, the following are the highlighs of Bush's economic agenda for his second term:

• Convert social security from a defined benefit plan to a defined contribution plan
• Eliminate taxation on investment income and gains
• Drastically reduce medical malpractice suits

This stuff works fine for me and my family but I have to wonder if its going to be that good for the very people who gave Bush his "mandate".

Comments

[boris]

hi !

what's the current status of american S.S. ? is it running a surplus or a deficit ? i think the partial privatization operated in Canada (while there's still a surplus it is invested before its too late) could be a a good compromise to save the system

Regards

Boris

[Coty]

This is certainly one of the most befuddling aspects of American politics. It almost seems that the only people concerned about the negative impacts of the Bush economic policies are those for whom they will actually be beneficial. (My family included.) But, I guess others are willing to pay that price to ensure that other people cannot marry. It doesn't seem worth it to me, but I guess I just don't get it.

Thomas Frank's What's the Matter with Kansas? covers the phenomenon in depth.

[Cole]

Voting is almost always partially irrational because it's not a normal economic activity. It doesn't "cost" anything to hold and vote on irrational beliefs (e.g., gay marriage, defense overspending, fighting for the poor, etc.) because nothing monetary is immediately at stake. If we had to vote on outcomes and not beliefs, then we'd have a different story. On http://www.marginalrevolution.com they talked about how if the anti-gay marriage initiative supporters had to vote on "Will voting for John Kerry make it more or less likely unemployment will go down?" we would probably have much more rational, productive voting patterns instead of these gigantic swings in opinion.

From a conservative point of view though, it's just as irrational to them for us to cast a vote to try to help poor people at our own economic expense it seems.

[boris]

HI !

i don't think eliminating taxation on investments would be such an immoral and bad idea. i mean here in italy we have a flat rate for capital gains (no matter the size or the type of investment) set at 12,5%. The rationale behind it was to boost our nano-size capital markets in the early 90's and it did work: sure were still way behind the Us or scandinavia in investment culture but now some 22% of the population hold some kind of securities among their assets. ownership society should have been a much more hyped theme in this campaign (and it should be in the agenda everywhere in the world), unfortunately it didnt get the attention it deserved. apparently it was more important for W to present himself as a god fearing man, well props to him cos the strategy worked :). Personally im waiting for the third generation to take over: jenna for president :) at least we all should have a good time with her in charge.

regards

Boris

[John Smith]

Come on, I thought a technical chartist would appreciate the fact that the NASDAQ is up 2.7% post the Bush win!

[EsmeV]

The Netherlands which is viewed by many as a "socialist" country does not have a capital gains tax (unless you are deemed to be a "large" shareholder) and does not have massive medical malpractice judgements. They do not allow class action lawsuits (like most European countries, the concept does not exist in the legal system). It also has a fairly privatized pension system; most people have private pensions unlike in Spain and Italy and the concept of saving for your own retirement is considered to be natural and rational. They worry however about having to pay for the Italians and the Spanish who they think are irresponsible for not saving for their post-retirement life. In the Netherlands, everyone with an annual taxable income of over 33,000 EUR (this amount is 20,000 EUR for enterpreneurs and independent workers) has to get their own private health insurace (which is not as expensive as in the US). Others below that amount are automatically thrown into the public health system whether they like it or not. They still pay for it through deductions from their gross income. So if you make under 33,000 EUR, your employer will take out a monthly sum for your public health insurance premium. If you are an independent worker or enterpreneur, you have to deduct this amount from your gross income and pay it directly to the tax authorities. The marginal tax rates, however, are very high - the top rate is 52% but mortgages here are fully deductible although there is now a movement to deny deductibility for very expensive houses. It does not make sense to subsidize million Euro mortgages. Nevertheless, like all industrialized countries, the two biggest worries are (no surprise here): how to pay for the aging population and... healthcare!

[RobertinSeattle]

This was an incredible election with more profound effects happening on a VERY subtle level than most people seem to comprehend. Everyone seems to be distracted looking at the symptomatic issues: social security, faith-based initiatives, health care and lawsuits ad nauseum. Take a look at the real agenda and you'll understand the grand social experiment that's coming down. Hint: It started with the concept of an Ownership Society that was only lightly mentioned. Let's not forget that we live in a capitalist society first and foremost, with a democratic slant, not the other way around. And by no means do I see the U.S. headed toward socialism although the noise of a highly vocal minority would try to have us think so.

George W. is moving us back to a self-responsible society in which ownership is once again looked upon as a good thing. Ownership brings... responsibility. Heaven forbid that socialists would believe the majority of people should be responsible in some part for their own lives and futures. If we as an American society are to survive, the overrated rights of individualism that have taken over our country in the past 40 years need to again be tempered by the needs and desires of the quiet majority. Who, by the way, voted in this last election to give George W. a powerful mandate.

As I've told a lot of my still-whining left friends, stop talking so much and listen more; you just might hear something good happening. We took a left turn somewhere back in the 60's and we need to find our moral values once again. And yes -- I was a young, flaming radical in the 60's.

[Alice Marshall]

Converting social security from an insurance program to a enforced investment program is, in effect, a repudiation of the debt. Anyone who thinks it will be the only national debt that might be repudiated is whistling in the wind.

[Tom Grey - Liberty Dad]

Fanks makes the same mistake, again, thinking that the working poor should vote in favor of promises of more gov't rewards to those who are irresponsible.

Most working poor folk, those who do NOT (yet) own their own homes, want to be rewarded for being responsible, and WANT to own their own homes.

If you ARE a homeowner in America, you are not poor.

The Leftist gov't promises to help poor people in school -- but 40 years after Civil Rights, some 50 years after Brown, some 56% of poor blacks finish High School but are functionally illiterate. What Dems need to promise is more measurement, and accountability.

[Vince]

The real issue is living wage, how do expect one to save for ones future when one doen't pay a living wage, the issue with welfare reform is finding those people jobs that pays what welfare does. Austrila's miniumum wage is over $11.00, Miniumum wage in America is a Joke> Ive seen people working for minuium wage and there employer offers them medical insurance for as much as there check, so its either work for insurance or work for food. This whole world is a Joke, still Slavery in Saudia Arabia and Bush won't do anything about it because they helped us, I'd like to know how, They helped themseleves into my wallet everytime I fill up, Oil Compnies with record profits, but that has nothing to do with gas being over $2.00 a gallon. Again The whole world is a Joke, It's all about greed and power and mankind will never changed, we content on killing each other and calling it War. If one would truley want to do something we'd empower a united nations to protect eveyones right including those slaves in Saudia Arabia, We need a system where certain rights cannot be changed, Heck here in America Slavery is just a matter of voting, we can bring it back anytime. One last thing Bush sux