Economy

Ronald Mitchell on Economy

Reversing squeeze on the middle class.
In the last 8 years we have seen a middle class that has been stretched to the limits. While wages have remained largely stagnant, costs on everything from healthcare to college education to energy have skyrocketed. When adjusted for inflation we find that median wages have actually declined over the past eight years. During the same time period the average tuition at a public four-year university has increased 29%, energy costs have risen by the high double digits and the rise in healthcare costs has left millions unable to afford healthcare and in many cases resulted in the bankruptcy of thousands of solid middle families.  In addition and perhaps most urgently we are now in the worst economic situation since the great depression-largely caused by financial firms that we the tax payers have been forced to bail out. 

The squeeze on the middle class over the last 8 years has not happened in a vacuum and it is not independent of the problems that have been evident in financial sector.  These are problems brought about by the policies of the last 8 years-an era marked by irresponsibility on everything from tax cuts to deregulation. The policies of the last 8 years have resulted in an economic system that has largely benefited the top one percent of all wage earners while leaving the majority of Americans in the cold.  Although Americans are as productive as ever in large part due to the advances in technology, the wealth created has not effectively trickle down as promised.  Wage stagnation for middle class Americans can also be traced to efforts that curb workers from organizing. Ronald Mitchell will advocate for an effective economic policy to address all of these issues in a strategic manner:  Stagnant Wages, Increasing costs on vital products and services (healthcare, energy and education), the weakening of labor in the U.S. and most urgently regulation of credit markets.       

• Increase regulation and oversight of financial firms – The financial firms are largely to blame for the worst economic situation since the great depression. Deregulation of Wall St. has led to irresponsible behavior that threatens our entire economy. Tax payers have had to spend billions and the Federal Reserve has used trillions to rescue irresponsible and highly compensated executives on Wall St. We must work to devise new regulations and enforce current regulations including compensation practices on financial services sector.

• Increase and make middle class tax cuts included in the stimulus bill permanent The tax cuts included in the recovery package of $400 dollars for individuals and $800 should be increased to $500 dollars for individuals and $1000 for families. This will help ease living costs for working families. 

• Support the president’s Budget to invest in Energy, Education and Healthcare-
• Growing healthcare costs must be addressed. Healthcare accounts for a significant part of the GDP and is expected to grow rapidly.  I support the president’s efforts to reduce healthcare costs by reforming healthcare and ensuring that every person has access to healthcare.
• Rising Costs of education must be addressed.  Currently states are cutting spending on higher education and passing the costs on to the students. To exacerbate matters, federal aid in the form of Pell Grants has not kept up with the rising costs of higher education.  We must ensure college affordability by increasing federal aid for all students. Ronald Mitchell supports the increasing of federal Pell Grants and the president’s American Opportunity Tax Credit
• Rising Energy Costs must be addressed - Since 2000 the U.S. has seen a 52% real increase in gasoline prices, a 69% real increase in natural gas prices, a 73% real increase in heating oil costs, a 59% real increase in propane costs, and a 8% real increase in electricity cost. Ronald Mitchell believes we need to commit ourselves to the challenging goals of reducing our dependence on foreign oil.  This can be accomplished by addressing efficiency in vehicles, industrial machinery and appliances and by increasing investment in clean energy.

• Supports renegotiations of trade agreements and pushing trade policies that are fair to American people.  Trade agreements must be structured in a way that will result in overall gains for Americans. First, we have to insist on trade agreements that offset any losses of American jobs. Second, we must aim to reduce trade deficit by making sure our trading partners are abiding by the trade agreements. Third, trade agreements must include provisions for worker, consumer, food and environmental protections – People not just multi-nationals should benefit from trade agreement.  
   
• Support funding for incubators in area universities – Northern Virginia must be a leader in green technology. We can help by funding more local universities to act as incubators to help develop innovative technology. 
    
• Protect Consumer Rights – Curb Predatory Lending, Reform Bankruptcy and Credit