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by Hector N. Fertig
In a recent conversation with a good friend and self-described liberal democrat, the discussion turned to economics. My economic position, well-known to my friend, is relatively straight-forward.
- I tend to view income as labor and find appealing the idea of a flat tax for everyone beginning above some threshold. I don’t have a percentage in mind, but if that comes out to 20%, then everyone is contributing about 400 hours per year to our government even if one person’s 400 hours brings in more revenue than another person’s. For me, there is something intuitively fair about such a set up.
- In my personal financial life, I avoid non-investment debt and I avoid borrowing money unless I have a clear plan to pay it back. Consequently, I don’t like deficit spending and I am nervous about the scale of recent borrowing on top of an already huge national debt.
- I am neither socialist nor laissez-faire – and for the same reason: I see both as impractical and ineffective. If socialism could compete with capitalism in terms of productivity or innovation, I would not oppose it as strongly as I do. If complete deregulation provided sufficient guarantees against exploitation, I would not oppose it as strongly as I do.
- In an economic sense, I see the nations of the world in a (hopefully friendly) competition for resources. To the extent that we fail to make wise fiscal decisions, we will fall behind other nations that make prudent economic choices.
The purpose of this article is not really to promote the aspects of my (current) economic philosophy or its application to any particular situation. I realize that honest, intelligent people can differ regarding optimal spending or monetary supply. I can oppose bailouts or the stimulus package while still appreciating the arguments from the other side. My point is actually much simpler: to many people (including my friend), a desire for a fiscal policy along the lines laid out above is not merely incorrect, unrealistic, or impractical… it is radical. It is viewed as extreme to the point of denigration and dismissal.
And therein lies the problem… a perspective based on understandable axioms that seeks a practical and sustainable solution to our national economic problems is designated (and honestly perceived) as “nutty” or “the fringe” by wide swaths of the American public and unworthy of further consideration. As if this were not bad enough, the same thing comes up with virtually any issue that is hotly debated today.
