Discussion on economics promises to be enlightening at Hoag
Editor:
Patrick A. Golden, principal analyst on Consumer Affairs and Protection for NYS Assembly, will address campaign issue: “Economy” at the Hoag Library, Tuesday, Oct. 22, at 6:30 p.m.
One of the host committee, Bob Golden, Pat’s father, may disagree.
In 1980, Bob reviewed* Milton Friedman’s book on “supply-side economics,” also known as “Reaganomics.” Bob predicted that Friedman/Reagan’s policies would create a Central/South American economy with mainly only rich and poor.
Pat felt his Dad was exaggerating. Reaganomics did not destroy the middle-class, only about half of it. Big business used the Reagan tax breaks to move the auto, steel and other industries that paid good wages, to the South and Mexico, where they could pay less. They bought cheaper steel from Japan. That, combined with Reagan’s union-busting efforts, “hollowed out” the working (as opposed to professional) middle.
Bob also reviewed, Nobel Prize-winning economist, Columbia Univ. Prof and formerly of the World Bank, Joseph A. Stiglitz and his 2011 book, “The Price of Inequality.” Stiglitz contends that paying good wages and restoring the middle class is best for the economy: the middle class spend and save their money in the US, where the rich put their money in foreign banks, buy in foreign countries taking their money out of the US. economy and succeed in avoiding taxes.
Like the six Popes, starting with Leo XIII in 1891 through Benedict XVI, including St. Pope John Paul II, Stiglitz says: “Pay just wages.” St. John Paul, considered conservative, also said that big business “has ceased to value labor or laborers.”
Stiglitz in his book, The Great Divide, and subsequent articles, tells that now, upward mobility is virtually a myth. The lack of regulation of business, bailouts on their excesses, and exploitation have resulted in a percentage loss of income for the majority, but a dramatic increase for the upper 1% or even upper 10%.
Stiglitz and 15 other Nobel Prize economists today say that raising tariffs and other proposals from that same candidate, will result in more inflation and cost us respect in the rest of the world. Laffer, one of the architects of Reaganomics, sides with tariffs and that candidate.
However, although Reaganomics stimulated the economy, Reagan and Laffer insisted that they’d balance the budget. Instead the national debt increased from $800 billion to $2.5 trillion. Thus, we simply borrowed hugely from future generations: not “Tax and Spend,” but “Borrow and Spend.”
From 2016 to 2020, we did much the same thing. We’ll likely do it again, if the “tariffer” gets into office. He doesn’t pay most of his personal and business debts. What makes us think he’d behave differently with our taxpayer money.
Pat and I and his Mom talk about once every two weeks. But we almost never talk economics, mainly grandchildren, family news, sports and plans to get together. So I’m anxious to see what Pat has to say. I hope you are too and will join us.
My credentials are a Master in Counseling Minorities and 43 years in criminal justice.
Pat’s are a Master in Economics and nearly 40 years in the NYS Legislature, working on economic issues. So you see why I’m anxious to hear from Pat. My guess you will be, too.
See you Tuesday at the Hoag.
Bob Golden
Waterport
