Americans for Democratic Action

The Economics of Prosperity
Posted by Karen Traeger on Aug 06 2012
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By: Bob Lucore

In today’s economy the problem, as pointed out in this space last week, is austerity economics. The solution, as outlined in a new report, is Prosperity Economics.

Jacob Hacker and Nathaniel Loewentheil of Yale University released a paper last Tuesday titled, Prosperity Economics: Building an Economy for All, at an event hosted by the Economic Policy Institute (EPI).

Hacker and Loewentheil were joined by leaders from the AFL-CIO, the Center for Community Change, the Leadership Conference on Civil and Human Rights, EPI, the Service Employees International Union and the National Council of La Raza. They outlined a detailed set of solutions to two problems: (1) The immediate problem of recovering from the recent recession, and (2) The lack of shared prosperity that has undermined our economic prospects for more than a generation.

The report confronts five myths:

• Spending/deficits are the top problems in the economy;
• Tax cuts for the rich will spur prosperity;
• Inequality is not a problem;
• Private markets are smart, but governments are dumb; and
• It is the rich who create wealth, so they are simply getting their just reward.

The current policy consensus in Washington is highly conservative and revolves around these myths. Hacker and Loewentheil decimate these myths and go on to outline a detailed and workable progressive program.

Their program is built on three pillars:

• Innovation-led growth based on job creation, public investment and expanding opportunity;
• Security for working families, environmental security and secure government finances; and
• Expanded democracy in both the political sphere and the workplace.

More specifically the program calls for investing $250 billion per year for the next six years to restore America’s public infrastructure. It puts forth policies to eliminate the trade deficit and restore our manufacturing base. It calls for aid for the states to re-hire teachers, first responders and other public servants. It proposes guarantees for worker’s rights, including union representation rights. It recommends a pathway for citizenship for undocumented workers. It calls for monetary policies that promote full employment rather than Wall Street priorities. It suggests ways to expand education and job-training opportunities

The program addresses enhanced environmental security, by investing in new forms of energy and transportation, putting a price on carbon emissions, and ending subsidies for industries with large negative environmental externalities. It addresses health security, suggesting ways to improve on the Affordable Care Act. It proposes a more secure retirement system based on expansions in Social Security and a universal pension system with a guaranteed lifetime benefit for workers. Furthermore, the Prosperity Economics includes detailed proposals for paying for these proposals.

Finally, Prosperity Economics recognizes that such proposals cannot be sustained without a strengthened democracy. It provides a detailed roadmap for increasing accountability and inclusiveness in the political process.

This post cannot do justice to the entire report. It should be read by every community organizer, public official, labor leader and concerned citizen. It provides a guidebook for all those who seek an alternative to the tired old myths of economic austerity.

Bob Lucore, a long-time ADA board member, is the former Director of Research and Policy for the United American Nurses and has worked for the Teamsters and the Department of Economic Research at the AFL-CIO. . He taught economics for several years at Centre College and Colorado State University and is currently studying Library and Information Science at San José State University. Bob is a member of UAW Local 1981, the National Writers Union.

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THE ECONOMICS OF 'WAR' -- IF THE ECONOMICS OF PROSPERITY AREN'T ADOPTED IN TIME TO SAVE THE BIOSPHERE	By Unknown on Aug 08 2012 at 5:21 AM
Many of America's work-, guts- and glory-obsessed individuals might respond more enthusiastically, regrettably, to a call for "war" than a call for "prosperity." If, despite its brilliance and enormous good sense, Hacker's and Loewentheil's Prosperity Economics -- and its all-important call for environmental security in this time of accelerating climate change -- does not soon take hold, a U.S./OECD/global call for a serious total war on climate change should be contemplated. The good news is that this 'war' need be fought only on the home front. Nobody will have to climb into foxholes and get gangrene, and shot at, or drop bombs on other people's homelands. "Planet War One" will require such relatively easy measures as * energy conservation (think blackouts), * rationing of carbon- and GHG-intensive consumer goods like gasoline and meat (think meat ration cards that the 'greatest generation' remembers, and gasoline debit cards that assure everyone a defined limited amount of fuel before the big per-gallon/liter tax kicks in), * regional, local, and homegrown community-supported agriculture (think Victory Gardens), * new work schedules (think four-day 36-hour workweeks to reduce commuting by one-fifth -- the part of the workday most workers hate most anyway! -- especially for America's many long-distance 'extreme commuters'; see www.timeday.org/news-vol5issue1.asp#03), * year-round daylight saving time, as in WWII (as a 'night person,' I hate DST, but I'll go along with it because its adoption will aid the wider use of intermittent renewable energy, according to a Stanford SAGE study in 2011), and * the creation of a new "EZ Tax": a global financial transactions micro-tax that uses the 21st century's brilliant computer financial networks to create a global Climate Change Prevention / Mitigation / Green Development Fund that will vastly improve the lives of the lower-carbon-per-capita people, typically the poor of both developing and developed countries, while making the comfortable lives of the highest-carbon peoples (hint: that's most of U.S.) more energy-efficient (the symbol for this new carbon-avoided currency should be the cent sign: carbon crossed out, carbon and climate degradation avoided!). The world needs to fight the continuing accumulation of atmospheric carbon and other greenhouse gases, and the disastrous result of climate change, with the same determination, grit, and creativity it brought to the world wars of the 20th century. The prospect of a permanently catastrophically changed world makes the coming "war" to save the immeasurably beneficent interglacial climate that industrial humanity has been busily dismantling for the last 150 years the most important and consequential global undertaking ever -- even more so than WWI and WWII. Time is running out on saving what is left of the interglacial climate period that has blessed the human enterprise since well before the rise of civilization some seven millennia ago. Planet War I -- the 'war' to save the interglacial Earth of humanity's entire history -- should be ginned up now, and formally started in the first week of August 2014, the centenary of the start of World War I. ' Perhaps by November 11, 2018, the centenary of the end of World War I, enough progress will have been made in achieving massive energy conservation and efficiency, reducing annual greenhouse gas emissions, developing and installing a wide range of sustainable non-carbon energy sources, reforesting denuded landscapes and ending annual rainforest loss, greening cities, whiteroofing buildings, "eco-driving" our cars and taking the trains, and so much more that is needed, that we can proceed to make these gains permanent in the framework of a globally-subscribed-to new League of Green Nations -- or a much-better-funded United Nations, UN Environment Programme, UN Population Fund, UNESCO, Global Environmental Facility, etc. -- and avoid the worst of the worldwide environmental armageddon that otherwise awaits us, a world that is a cross between Baghdad in the summer and New Orleans in Katrina, long before the fall of 2039 or the summer of 2045! Gregory Wright Board Member, Southern California ADA greg@newciv.org
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The Economics of Prosperity

By: Bob Lucore

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