Economic inequality is rising across the United States and in Minnesota as well. Recently, Minnesota was ranked second worst in the U.S. for racial inequality in terms of unemployment, income and home ownership.
Paulsen supports the Republican Platform that claims their number one priority is rebuilding the economy and creating jobs. But the GOP's trickle-down economic and tax policies favoring the wealthy on the theory that they are “job creators” who will fuel the economy are dangerously flawed. Those policies have never worked any time they have been tried and will only worsen the problem of economic inequality.
Job creators in the U.S. are customers who are willing and able to purchase goods and services. If the middle class and poor don’t have money to spend, they can’t be customers. When the middle class and poor are strapped for cash, they’re often compelled to incur consumer debt that isn’t sustainable over the long term and we know that every economic depression and major recession since 1900 has been preceded by high levels of consumer debt. Guess what? Consumer debt is now at an all time record high in the United States.
The level of consumer debt shouldn’t be at all surprising because economic inequality has accelerated during the last 30 years. The graphs below from the Congressional Budget Office tell the story.
Consider also the graph from a recent New York Times editorial showing the wealth gap between the top 1% and the bottom 90% over the last 100 years.
On January 4th, the Washington Post reported on a new study using a massive new data set suggesting that economic inequality is going to get even worse.
Clearly we have a problem that cannot be ignored. This economic disparity was at the heart of the angry populist rhetoric of the 2016 election and it will only get worse until the problem is resolved. As Justice Brandeis said, “We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.”
Globally, the U.S. ranks only 23rd out of 30 developed countries in the World Economic Forum’s “inclusive development index” which analyzes data on income, health, poverty and sustainability. The fact that we rank so low is in large part due to our dramatic concentration of wealth. We ranked worst on measures of distribution of income and wealth and the level of poverty. Paulsen’s votes supporting the Trump/Republican agenda of tax cuts favoring the wealthy coupled with their plans to cut spending on social safety net programs will only worsen income equality.
Paul Wellstone once said, “We all do better when we all do better.” As a society we need to work to reduce economic inequality, not just because it’s the moral thing to do, but because when the middle class and poor are not economically disadvantaged they will purchase more goods and services which drives the economy that serves us all, including the wealthy.
Are Trump or his cronies in government going to work to reduce economic inequality? Trump campaigned as a populist but he’s governing as a plutocrat. And his plutocratic cronies like Secretary Treasury Mnuchin don't even pretend to want to resolve economic inequality. On the contrary, they appear to revel in it.
Our Congressman, Erik Paulsen, is well aware of the issue. He is a member of the Joint Economic Committee that is charged by law with the responsibility for preparing annual Joint Economic Reports. That Joint Committee has held hearings and heard testimony about the extent of economic inequality and proposed solutions.
It has taken decades to reach the level of economic inequality we currently face. It’s generally agreed that reducing inequality will take time and that there is no single silver bullet solution. Among the partial solutions that have been discussed are:
In the end, economic inequality hurts our entire society. We need a Representative who will fight to reduce economic inequality, not increase it by voting for policies that primarily benefit the wealthy donor class.
Replace Erik Paulsen.
Minnesotans for Real Representation is a grassroots organization in Minnesota's Third District with the goal of replacing Erik Paulsen in 2018.