I think that the Republican line that globalization is good for all and Pennsylvania will catch up is being burst here. Do you think this is an issue for the fall election?
Bankruptcy filings rose by one-fourth in Pennsylvania last year, as rising monthly mortgage payments overwhelmed already shaky household finances and tight credit markets hurt struggling businesses.In many areas, the housing bust piled on to people and business owners who, for years, had gotten by on credit cards and loans. Even as the number of bankruptcy filings in 2007 surpassed the amount the year before, the rate of filings picked up speed as each quarter went by, according to new figures released by the federal courts.
When President Kennedy
When President Kennedy reformed marginal tax rates, he used the metaphore – a rising tide raises all boats – to illustrate the expected benefits. While this concept has proven true, picturing the statement in your head leads many to believe that the shared prosperity occurs simultaneously. It does not! It takes years for a regional economy to evolve from yesterday’s industries to today’s ( Coal Region anyone?) The same outcome rings true for free trade agreements like NAFTA, which have created big economic winners and equally big losers (i.e. manufacturing employees). These winners and losers are often concentrated in specific areas of the country, creating regional battles over policy. Compound this by the fact that the winners rarely write checks to the losers, and it appears as though income inequality and its associated problems will continue to grow.
Protectionism policies are definitely not the answer, and have the potential to compound the problem. However, can anyone truly blame manufacturing employees for attempting to save their livehoods by fighting for such policies? It not as those the 40 year old line worker has the time to wait for the regions economy to become healthy again. He is approaching the time in his lifecycle when his children will be going off to college, while his retirement is off in the no-so-distant future. Further, who is to say he will have the education and traing when the economy does turn around?
A better answer for all parties is to created policies that increase job retraining for displace workers (everyone is aware that we do not have enough medical personell for the baby boomers), place freeze on certain debt obligations until such retraining is complete, and/or offer those with the skills the opportunity to help rebuild America’s infrastructure. Lets start investing in the American people again, as opposed to big business through tax credit after tax credit. I believe we’ll be a thrilled with the return!
Excellent commentary
Excellent commentary
wrong...
We have a protectionist system for the industries that we choose to protect, and we screw industries we choose to screw.
Take Agriculture. We subsidize American cotton farmers, undercutting cotton prices and forcing African farmers to leave their land or starve to death. Then there’s corn… NAFTA has allowed big Agribusiness to price Mexican corn farmers out of business, forcing them to either starve or risk their lives crossing the desert to make a living in the U.S.
We subsidize the oil industry and Boeing, and we protect big Pharma by preventing Canadian-made drugs from being sold in the U.S. We’ve even created tax incentives encouraging businesses to incorporate overseas.
We don’t factor in “externalized” costs like pollution, carbon, or damage to the environment when creating corporate tax policy.
There’s no rhyme or reason to all this. Global trade is a good thing, but our laws need to be created with the overall goal of benefiting America and Americans, and not exploiting us or our land.
Local industries create jobs, which allow people to build homes, buy appliances, eat at restaurants, send kids to school … etc., etc. If we force these industries to pick up and leave, then we have nothing. “Free trade” is a myth. We should be investing in America, and engaging in “smart trade.”
Excellent
Excellent yes – practical NO
We have become a nation of quick and large returns. So it goes without saying that there is no willingness to invest in American people. Unless the investor in question can be guaranteed to make a million overnight, there is no incentive to invest.
Gordon Gekko is alive and well.
That's depressing
I just read that Harley Davidson has big layoffs coming. It’s not looking good and job retraining is a good idea – but train for what new jobs that will pay a decent wage and benefits. I am tired of my job being outsourced overseas to cheaper workers or given to an H1B visa worker who will take the lesser salary.
So yeah, a little protectionism of jobs that Americans can do would be nice – instead of letting Bill Gates lie before congress about not enough workers available.
The whole political system is just a little too corporate-profit-protection – and nothing for workers or people who cannot afford education, housing or healthcare. I bet many of those bankruptcies are because of the lousy for-profit health insurance racket. A recent letter from my PA Rep tells me that Republicans don’t care about affordable healthcare in PA either.
So a vote for Republicans at the state and federal level = less jobs, no healthcare, but more corporate profits for sure.
The main problem with the
The main problem with the economy is high taxes. They act as a garrott, choking off jobs, raises, manufacturing, and everything else.
The only way to strengthen the economy is to reduce spending, and taxes.
Anything else is just another fraud.
One-sided is Misguided
Clearly you did not read my post above, as you are only looking at at supply side of the economy. Solid economic policy, similar to what we had in the 90s, examines both the supply and demand side of the equation. It makes little sense to increase production, therefore supply, by cutting corporate taxes when low – middle income earners have few resources at their disposal to purchase them.
It is equally foolish to over invest in government programs, therefore increasing demand, when our tax structure creates a disincentive to produce such goods and services. Obliviously, at this point in time, I am advocating for greater investment in low – middle class individuals, specifically in policy initiatives that invest in their human capital development. Lets remove the barrier to obtaining higher education and training. Lets look to invest monies into 21st century jobs like IT, energy, and health care.
JM
There in lies the problem.
There in lies the problem. Neither Democrats or Republicans are willing to cut taxes. The Democrats, though rarely claim an intention to cut taxes, are more apt to raise them and Republicans have led a decades long scam claiming to be the party of less government and less tax, when in reality the government has bulged and the only taxes being cut are those of the wealthy.
Personal bankruptcies are
Personal bankruptcies are also caused by increasing rates on property taxes. When the big education unions get four percent increases, everybody’s mortgage goes up. After three or four years, many just can’t make their payments.
It’s easy, and popular, to blame the banks, but it’s the ever-increasing school taxes that are at the heart of a lot of family financial tragedies.
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