Deficits Do Matter

Posted Jun 14, 2010

After the wrenching collapse of the Bush–Cheney, house-of-cards economy, it’s clear to many that America’s economic landscape has changed, probably forever. Looking back, it’s almost humorous now to think that we ever confused the Republican administration and Congress that was responsible for this debacle with the party of economic restraint.
It’s often pointed out that in 2001, when Bush, Cheney, and their go-to guy Denny Rehberg arrived in Washington, the country enjoyed a $100 billion budget surplus. The discussion at the time wasn’t about how to reduce the national debt, but how much to reduce it.
But instead of pursuing a prudent course of responsible leadership, instead of making sure our economy was on solid ground as we entered the 21st Century, we got the Bush–Cheney–Rehberg Plan for Assured Economic Ruin. Built on the twin tactical pillars of deregulation and tax cuts for the wealthy, and fueled by a bizarre insistence that deficits don’t matter, the Great Recession was inevitable. It turns out that leadership does matter.
Had the opportunity not been squandered during those eight years of failed leadership, we might now be enjoying growth, benefits of a green economy, a shared prosperity. Instead we got unemployment, oil spills, and corporate ownership of Congress. And though productivity rose 11 percent over the period thanks to the hard work of American labor, job creation declined and wages remained flat—a rude slap in the face to those who actually produce something for a living.
But not everyone suffered. Income of the nation’s top earners grew 31 percent in 2007, the last year figures are available. That’s right, 31 percent in one year! How much did your wages go up? And Wall Street bonus inflation continues apace. Even after spending hundreds of millions on lobbying to block financial regulation reform, there was still enough leftover to fund billions in bonuses for the banking geniuses who got us into this mess.
Thankfully we don’t have the Bush–Cheney presidency to contend with anymore. But we still have Mr. Rehberg and others in Congress who want to dust off those failed 30-year-old economic plans and use them to lead the country off a cliff. Again. But this time we won’t be fooled.
I’m prepared to lead in a different direction. I propose we move from an economy based on debt, consumption and speculation to one that promotes savings, productivity, innovation and hard work. It’s not a radical idea. It’s just a matter of reordering our priorities. We simply have to stop letting Wall Street call the shots while our Main Streets dry up and blow overseas.
I propose we make a national commitment to invest in ordinary people because when we do we will realize an extraordinary return. Those tried and failed trickledown schemes don’t benefit everyday folks. We know that now. They just bring bubble economies, unemployment and heartache to too many Montanans.
My vision is to shake things up and refocus our priorities on the things we know will work: investing in education, renewable energy and developing our natural resources in an environmentally sound manner.
Let us be sure our young people have the educational opportunities they deserve. Perhaps this means a veterinary school at MSU-Bozeman, a medical school at the University of Montana in Missoula, and making Montana Tech the citadel of renewable energy research. Let’s invest in a 21st Century electrical grid that will allow Montana to sell energy in other markets. Nationwide we can create millions of good-paying jobs by finally ending our reliance on Middle East oil. America has an abundance of natural gas. It’s cheap, it burns clean and it can be a bridge to an energy future that doesn’t rely on shipping our wealth to foreign dictators.
Over the last few months I have traveled to all 56 counties across the state and I’ve never before seen the degree of angst in the eyes of my fellow Montanans that I have witnessed of late. The unemployment rate in northwest Montana is approaching 15 percent, and it’s probably near that in the Bitterroot Valley. Other parts of the state aren’t faring much better. We can put Montana back to work. All we need is the will and the leadership to move forward.

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