United States — April 14, 2012 11:47 am

Selling “Democrat”

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It’s easy to define a Democrat. At least, that’s the commonly held belief. We drink lattes and worship Paul Krugman as a god amongst men. We believe that the only fault of government is when it does not regulate enough, and that the best thing we can do is legislate the change that does not manifest itself naturally. We play “Robin Hood,” giving the gains of the rich to the poor, because it just feels right.

It’s easy to define a Democrat, which is why so many people do it. Democrats are tagged as “Bleeding Hearts” because of our support of strong social welfare legislation, and much of the time, we don’t have a good retort. In reality, it’s because most Democrats really do believe in the inherent good of programs meant to make society more just and equitable. In fact, a study by Jonathan Haidt and Jesse Graham in 2006 showed that self-proclaimed “Liberals” tend to value fairness and reciprocity more, while “Conservatives” value respect.

These stereotypes offer somewhat of a challenge for the Democratic Party’s messaging efforts. Economically, the American public is ultimately the same as any voting public: self-interested. New taxes to support more comprehensive social programs are anathema to this self-interest, and the old party lines – those of Republicans accusing Democrats of wanting to raise taxes – read themselves out with a predictable vigor.

Historically, Democrats pitched their efforts to the American people with a potpourri of promises and projections. Franklin proposed a “New Deal” to the American people hurting from a severe depression and lack of hope. Kennedy campaigned on a new vision for America, putting a young face to chants of “We can do better!” Johnson took great strides toward his Great Society, and Bill Clinton built a Bridge to the 21st Century.

In the modern era of progressivism, our campaign cries have taken quite a few different pitches, but one isn’t heard nearly enough these days: economic competitiveness. In all of their talk about fairness, equality, and reciprocity – as necessary as they are in a political dialogue – Democrats seem to have glossed over what could be our strongest argument in the political arena: the Democratic agenda is the most capable of putting America in an advantageous economic position on the world stage.

When Barack Obama sold his healthcare efforts to the American people, we heard messages of fairness, the injustices of 30 million people uninsured. Indeed, this is a compelling problem. But problems can be solved no matter how you word the solution, and the economic argument is one far underutilized by the left.

How could we not have mentioned the comparative disadvantage we face against countries with a public option? Employers in Britain never have to worry about the increased hiring costs due to healthcare expenses, and you would be hard pressed to find any CEO citing medical expenses as the cause of layoff. Germany never worries about the loss of productivity of sick, uninsured workers, as they are covered either by private insurance or non-profit “sickness funds.” Most importantly, in countries where healthcare coverage is a right and not a privilege, prospective small business owners aren’t scared away from chasing their dreams by the looming costs of being self-insured, or without insurance altogether. If we as a country aim to keep employer costs down, productivity up, and small business ownership strong, couldn’t the left have used these points during the healthcare debate?

Over the past year the sentiment echoing out of Wisconsin towards teachers has spread with alarming speed. But the anti-teacher (and more broadly, anti-union) phase that the right is going through would probably do more harm than good if it were carried to its logical extent. Teachers (and unions, for that matter) are responsible for education and preparing a generation for becoming productive members of society. Educated workforces are better for product quality and better for the bottom line, so it’s no surprise that the Wall Street Journal’s CEO Council marked education (“Improving Human Capital”) as one of the top 5 policy issues facing the US, along with taxes, immigration, infrastructure, and research and development.

One point on the CEO Council’s list, immigration, deserves significant attention. The DREAM Act would keep educated and military bound immigrants in America, where they have the options of serving in the armed forces or getting a college education. The H1-B “Genius Visa” allows doctorate students and researchers to stay in the US, creating a slew of technological and medical advancements. A few years ago, Thomas Friedman summed it up best when he listed the 2010 Intel Science Fair finalists – almost all of them were from first generation immigrant homes. This is just one more area in which the Democrats must assert the economic importance of their policy: we could have a new generation of soldiers, students, and scientists here in America, or we could send them unwillingly home.

In a nation worn down by a brutal recession, the argument that progressive legislation leads to economic advance is one that isn’t heard nearly enough from the left. Progressives, instead of touting the economic importance of their ideas, quietly accept that they are the party of naïve emotion against the so-called rational, clear-headed policies of most of the right. Democratic policies do create economic opportunity on the world stage. We just need to remind the American people.

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  • Right or Left?

    As a Republican leaning to the left, I agree with many democratic point of views. Creating programs to help the needy and creating a public healthcare program is a grand idea. However, your view on public healthcare making the United States more economically competitive is flawed in some ways. I do not have exact statistics to play the numbers game but isn’t the US losing thousands of jobs to areas that have cheaper labor? For example, our big “American” corporations such as Apple and Dell sending all of these factory and customer service jobs overseas is mind boggling to say the least. You can use the the fact that if we made healthcare public then employers can hire more Americans for these jobs because overall costs would be lower due to not having to pay welfare but would this one program balance out the scale so that Apple and Dell would hire in the US? Many of these programs are adding to our national debt which is a creating a very unpredictable future for our children.  A lot of people call the US, a country full of “lazy ass Americans” and honestly I can agree to that. Obama’s policies regarding welfare are unacceptable. Adding extra months to unemployment benefits is not what creates a competitive country. With these programs we are fostering laziness and country full of people exploiting others’ hard earned taxpayer dollars. The president must find a way to truly benefit people who just their jobs but do not make them complacent to not find a job because of how well off they are being fired then employed. Free housing and food stamps also foster laziness because so many people abuse these things. We must find ways for us to police our only people into not screwing over the system. You might think, “Wow all of these big corporations our finding loopholes to pay less taxes, etc.” but imagine hundreds of thousands of people using our money to live in a house for free pretending she is a single mom with two children while also living with another man who is technically her husband but not officially. These individuals do not work because their lifestyle is so grand without putting a single hour of work in. My personal solution for unemployment benefits would be to make it only 6 months of unemployment pay and when you find a job you will be extended maybe 25-50% of that unemployment pay or another solution would to provide them with funds to go back to school during this employment so they can better educate themselves to become more competitive in the job market. For our country to become more competitive in an market that continues to become more diverse, we must FUND EDUCATION!

  • Right or Left?

     Also I am not bashing your ideals or anything. I am just trying to see your views from these different ideas I laid out. I feel very strongly about education and going to a state college in Florida where programs and funding continue to be cut only worsens the wound.

  • http://www.facebook.com/mattshuham Matt Shuham

    Thanks for reading and taking the time to respond!

    You bring up a lot of relevant points in the debate, and they’re all worth addressing. If we want to talk about manufacturing, it might be helpful to point out that when President Obama asked Steve Jobs at a dinner what the United States would have to do to regain manufacturing work, Jobs said simply, “Those jobs aren’t coming back.”

    It might have been somewhat hyperbolus, but Jobs’ point was clear: America is not structured for low-paying manufacturing as much as it was 50 years ago, nor as much as the rest of the world is now. Our minimum wage is much higher than the global average, and union benefits prevent much of the conditions that are found in factories like FoxComm in China.

    I would argue that while this may prevent us from taking as extensive a part in one sector (low-skill manufacturing), I wouldn’t want it any other way: do we want to be a nation that educates and trains its citizens to take on sustainable, well-paying jobs of the future, or should we be stuck in the past: low-bidding third world countries until our labor, health, and education standards make the United States a suitable place for borderline-sweatshop work? Not to belabor the point, but I think we can do better than that.

    It goes to show how much bipartisan support there could (and should) be for comprehensive education reform: making our teachers and students accountable for laying the groundwork of a 21st century economy should be as high a priority as any, although we may have plenty of discussion about how the federal and state governments should work together towards this end.

    My personal views on healthcare and welfare follow this trend. I think it’s a matter of national principle that we don’t force our unemployed into foreclosure or our uninsured into the emergency room for what should be routine care. It may cost more to provide basic healthcare and benefits to the American people, but you could extend the cost/welfare debate to food stamps and the armed forces, if you use that logic. We get what we pay for, and an insured public is more productive and more employable in the long run.

    As an aside, it’s hard to underestimate the effects of employer-based healthcare on the American economy. Ask any potential entrepreneur or small business owner what the biggest obstacle is in preventing them from starting their own venture, and I would bet that healthcare expenses would be one of the most common answers. People aren’t willing to leave the security of employer-provided healthcare, and it puts a serious dent in America’s entrepreneurial capital.

  • Harvard Ec ’14

    It would make more sense if insurance companies were forced to compete across state lines. Many companies have a monopoly for insurance in their states (for example, 97% of the citizens of Alabama are insured by BCBS of AL). This results in monopoly or oligopoly pricing, which directly drives up costs and decreases quality.

    The ACA exchanges do not allow for interstate competition, but try to add transparency to the existing competition within states (which doesn’t really exist in many cases). Instead of breaking up monopoly power and forcing more suppliers into the market, the ACA forces more buyers into the market through the mandate.

    The mandate was upheld as a set of taxes by the Court due to incredibly complex government subsidy rules to fund individuals’ purchases of plans. The taxes include a 3.8% Sale of Home Tax, increasing dividend taxes from 15% to 18.8%-43.5% depending if dividend tax laws are extended, et al. These taxes discourage investment, especially in real estate, which is silly, seeing as falling demand in the market for homes was the direct cause of the 2008 Recession and the sluggishness that has followed. The expected future impact of these taxes has aided in keeping potential workers on the sidelines and has contributed to the exodus from the labor market and 8%+ unemployment.

    Forcing interstate competition increases quality and reduces costs in a simple manner. It’s common sense. This solution lets the market work without restricting individual freedom, increasing uncertainty among the public, and burdening the country with more taxes.

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