Reich writes: "I've had a chance to take a close look at Hillary Clinton's economic speech yesterday, and here's how I'd grade her and it."
Economist, professor, author and political commentator Robert Reich. (photo: Richard Morgenstein)
14 June 15
’ve had a chance to take a close look at Hillary Clinton’s economic speech yesterday, and here's how I'd grade her and it:
An A for understanding the problem. “You see corporations making record profits, with C.E.O.s making record pay, but your paychecks have barely budged,” she said. “While many of you are working multiple jobs to make ends meet, you see the top twenty-five hedge-fund managers making more than all of America’s kindergarten teachers combined. And often paying a lower tax rate. So, you have to wonder, ‘When does my hard work pay off? When does my family get ahead? When?’ ”
She continued, “Prosperity can’t be just for C.E.O.s and hedge-fund managers. Democracy can’t be just for billionaires and corporations. Prosperity and democracy are part of your basic bargain, too. You brought our country back. Now it’s time—your time—to secure the gains and move ahead.” Exactly right.
I also give her an A for explaining the root cause of the problem:
“Advances in technology and the rise of global trade have created whole new areas of economic activity and opened new markets for our exports, but they have also displaced jobs and undercut wages for millions of Americans. The financial industry and many multinational corporations have created huge wealth for a few by focusing too much on short-term profit and too little on long-term value—too much on complex trading schemes and stock buybacks, too little on investments in new businesses, jobs, and fair compensation.”
But she gets a C or maybe even a failing grade at this point for telling us what she’ll do to fix the problem. She didn’t mention increasing the top income-tax rate, busting up the biggest banks, resurrecting Glass-Steagall, raising the cap on income subject to Social Security payroll taxes, or killing the proposed Trans-Pacific Partnership. She said nothing about raising taxes on great wealth or reviving antitrust enforcement. Nor about how she’d stop the moneyed interests from taking over our democracy.
The campaign is early. There’s still time.
