Tuesday, February 18, 2014

America: A Tale of Two Cities

President Obama and the Progressives have stated that their number one goal for the remainder of Obama's term is to address the issue of wage disparity and income inequality. The presence of income inequality during the last three decades is indisputable and is not being challenged by anyone. Those on the far right, including Rand Paul and Eric Cantor, acknowledge that income inequality exists.

The real problem for our country is that those on the far right do not view this as a bad thing. However, they do view government measures designed to intercede, mediate, and reverse this, as a bad thing. When the government "spies" on people to thwart terrorism, protect intellectual property, or prosecute fraud and theft, it is evil. When Google does it, it is good business.

The far right ostensively is focused on deficit spending. However, they are not against deficit spending per say, when it benefits their constituency or serves their ends. They oppose deficit spending only when it is aimed at interceding, mediating and reversing income inequality. If it enriches the top 2%, which it has done for decades, it is a necessary evil. If it allows a minimum wage worker to feed his family, it is an unholy abomination.

Obama and the Progressives are pushing for a minimum wage hike. If accomplished, this will be a temporary fix. Initially it will provide a stimulus to the economy and provide benefits to the working poor and middle class. Inflation will follow. For a small minority of this sector, for the prudent, student loans and mortgages will be paid with "cheaper" dollars. For the majority of this segment of America it will be even harder then it is now. The cost of rents, food, and healthcare for the 99% will rise accordingly. And America will be one step closer to a Third World country.

As I have stated over and over again, the solution lies in a very progressive tax code and Keynesian economics. The presidencies of Teddy Roosevelt, Franklin Roosevelt, and Dwight Eisenhower attest to this truth. God save the middle class. Certainly the Tea Party won't. As a man in the "winter" of his life, I am able to manager a wry smile.

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