Bring Back Eisenhower Socialism

Chuck Collins

Chuck Collins Director the Program on Inequality and the Common Good , Institute for Policu Studies

Anytime a politician proposes a wildly popular idea that helps ordinary people, a few grumpy conservatives will call them “socialists.” Propose to reduce college debt, help sick families, or ensure the super-rich pay their fair share of taxes — suddenly you’re a walking red nightmare.

Utah Republican Rep. Chris Stewart is so alarmed he’s convened an “Anti-Socialism Caucus” to ward off “the primitive appeal of socialism” that will “infect our institutions.” Democrats’ talk of restoring higher income tax rates on the wealthiest or helping families with childcare was enough to trigger Treasury Secretary Steve Mnuchin to quip, “We’re not going back to socialism.”

These same politicians consistently vote for tax cuts for the rich and to gut taxes and regulations on corporations so they can exercise their full freedom and liberty — to mistreat workers, pollute the environment, and rip off their customers.

The “shrink government” fear-mongers want you to believe there are only two flavors of economic ice cream. Choose strawberry and you get liberty-choking gulag communism. From this vantage, any proposal to rein in the unchecked power of global corporations and the rule-rigging rich is creeping socialism.

Choice number two, blueberry, is plutocracy, a society where the super-rich lord over the rest of us. It’s an economically polarized dystopia with stagnant wages and a declining standard of living for the majority.

Conservative demagogues aim to scare you into embracing their pro-plutocrat agenda as the only tolerable choice.

The good news is there many flavors to choose from. A number of presidential candidates have proposed or endorsed policies such as low cost or free college, a higher minimum wage, taxing the super-rich, and investing in infrastructure to reduce carbon emissions.

These ideas are tremendously popular with voters, winning majority support among Republicans, independents, and Democrats. As Fox News sheepishly reported from their own polling, over 70 percent of voters support tax hikes on households with over $10 million in income — including 54 percent of Republicans.

What would today’s hysterical Republicans say about the “socialist” presidency of Dwight Eisenhower? Most likely they would call him “Red Ike.” After all, during Eisenhower’s two terms between 1953 and 1960, the wealthy paid a top tax rate of 91 percent on incomes over the equivalent of $1.7 million for an individual and $3.4 million for a couple.

That crafty pinko Eisenhower also presided over government-subsidized mortgages that helped millions of Americans purchase their first home and attend college for free. He presided over the construction of public housing and state-owned infrastructure (like highways).

In the early 1960s, the specter of socialism stalked the land again, this time in the form of a proposal to create a national health insurance program to cover senior citizens. Conservatives mounted a full-throated resistance movement to what George H.W. Bush at the time called “socialized medicine.”

The rest of us know it as Medicare.

Prior to the passage of Medicare in 1965, half of the country’s seniors didn’t have hospital insurance, and one in four went without medical care due to cost concerns.  One in three seniors were in poverty. Half a century later, nearly all seniors have access to affordable health care, and the elderly poverty rate has fallen to 14 percent.

Now a majority of Americans support some form of “Medicare for All,” expanding universal coverage beyond seniors and disabled people to include children and adults.

Stay tuned for more fear mongering. Universal health care, the red baiters will say, will zap our national initiative and hurl us toward Soviet-style tyranny. Instead, maybe it will mean not having to choose between paying rent or for medicine.

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First published at OtherWords

Posted In: From Campaign for America's Future, Allied Approaches

Union Matters

Federal Minimum Wage Reaches Disappointing Milestone

By Kathleen Mackey
USW Intern

A disgraceful milestone occurred last Sunday, June 16.

That date officially marked the longest period that the United States has gone without increasing federal the minimum wage.

That means Congress has denied raises for a decade to 1.8 million American workers, that is, those workers who earn $7.25 an hour or less. These 1.8 million Americans have watched in frustration as Congress not only denied them wages increases, but used their tax dollars to raise Congressional pay. They continued to watch in disappointment as the Trump administration failed to keep its promise that the 2017 tax cut law would increase every worker’s pay by $4,000 per year.

More than 12 years ago, in May 2007, Congress passed legislation to raise the minimum wage to $7.25 per hour. It took effect two years later. Congress has failed to act since then, so it has, in effect, now imposed a decade-long wage freeze on the nation’s lowest income workers.

To combat this unjust situation, minimum wage workers could rally and call their lawmakers to demand action, but they’re typically working more than one job just to get by, so few have the energy or patience.

The Economic Policy Institute points out in a recent report on the federal minimum wage that as the cost of living rose over the past 10 years, Congress’ inaction cut the take-home pay of working families.  

At the current dismal rate, full-time workers receiving minimum wage earn $15,080 a year. It was virtually impossible to scrape by on $15,080 a decade ago, let alone support a family. But with the cost of living having risen 18% over that time, the situation now is far worse for the working poor. The current federal minimum wage is not a living wage. And no full-time worker should live in poverty.

While ignoring the needs of low-income workers, members of Congress, who taxpayers pay at least $174,000 a year, are scheduled to receive an automatic $4,500 cost-of-living raise this year. Congress increased its own pay from $169,300 to $174,000 in 2009, in the middle of the Great Recession when low income people across the country were out of work and losing their homes. While Congress has frozen its own pay since then, that’s little consolation to minimum wage workers who take home less than a tenth of Congressional salaries.

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