Wednesday, November 29, 2006

The Boxed-in Democrats


When they were in opposition in Congress the Democrats opposed, ferociously. Now they are the majority, committed to increase subsidies for the already subsidized in education and health care, as provided in their New Direction for America.

But will their instinct to increase the welfare state be possible? Michael Barone has his doubts.

In their hearts, most elected Democrats would like to move us some distance closer to a European-style welfare state -- slouching toward Scandinavia, some conservatives might call it.

But they probably won’t be able to do so, at least not very much.

They want to increase the minimum wage, but very few people work at the minimum wage. They could increase the Earned Income Tax Credit, but they have kinda boxed themselves in with a “pay-go” rule that prevents tax cuts unless they are balanced by spending cuts.

Then there’s the Alternative Minimum Tax that is unindexed for inflation and deliciously hurts the rich, but hurts the liberal rich in blue states more than the conservative rich in red states.

Former Clinton aides like Gene Sperling are concerned about the insecurity felt by many workers. Yet the security offered by mid-twentieth century corporations isn’t likely to be on offer. Instead Sperling

is for a "universal 401(k)," which would give all workers tax-sheltered savings accounts, funded by employers and employees.

That sounds rather like President Bush’s reform of Social Security, that “Democrats scorned.”

Republicans may be downhearted at their mid-term losses, but more important than Republican positive self-esteem is national hygiene.

And national hygiene demands that Democrats stop opposing and start proposing. The problem is that first of all they have to break out of the box they have put themselves in.

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