Filed under: economics, politics | Tags: David Frum, economic inequality, health care, John McCain
This article by conservative stalwart David Frum in this week’s New York Times magazine dovetails nicely with some socio-economic reading I’ve been doing lately. The full text is here.
In short, the trend to (economic) inequality is real, it is large and it is transforming American society and the American electoral map. Yet the conservative response to this trend verges somewhere between the obsolete and the irrelevant.
Conservatives need to stop denying reality. The stagnation of the incomes of middle-class Americans is a fact. And only by acknowledging facts can we respond effectively to the genuine difficulties of voters in the middle. We keep offering them cuts in their federal personal income taxes — even though two-thirds of Americans pay more in payroll taxes than in income taxes, and even though a majority of Americans now describe their federal income tax burden as reasonable.
What the middle class needs most is not lower income taxes but a slowdown in the soaring inflation of health-care costs. If health-insurance costs had risen 50 percent rather than 100 percent over the Bush years, middle-income voters would have enjoyed a pay raise instead of enduring wage stagnation. John McCain’s health plan, which emphasizes tax changes to encourage employees to buy their own insurance rather than rely on employers, is a start — but only the very beginning of a start.
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