The Ownership Society

I’m not fond of the idea that everyone is out there on their own, even though I like individualism, I do think it comes with some responsibility. It shouldn’t be an “every man for himself, screw the rest of you” deal. That’s bad for society, it’s bad for families, and it’s bad for international relations. I also don’t have much faith in whatever passes today as Reagan’s “trickle down” theory of economics. The fact is, Reaganomics was a dismal failure for most of the millions of Americans who lived under it. Only about the top 10-20% of Americans saw any benefit at all from the “golden years” of the 80’s and 90’s. It didn’t work then and it isn’t going to work now, now that we have the largest real and projected federal deficit in our country’s history.

Our Employee likes to talk about the “ownership society” and how every citizen should have the opportunity to own assets and to build wealth. The idea is that American workers aspire to be owners — owners of stock for their retirement, owners of homes, owners of businesses, owners of good health insurance, and owners of the skills that they need for their jobs and careers. It sounds just great. I agree with that idea in principle, believe it or not, but the things this Administration is doing under that banner will result in just the opposite of what “ownership” means for many millions of Americans. An ownership society is a wonderful idea. Liberals have been expanding it ever since the New Deal, I wonder if that’s where Bush got the idea? Somehow, I don’t think his idea of “ownership” matches the original intentions of “ownership” though.

If our goal were to truly create an “ownership society” in this country, as has been stated by the present Administration, then please explain to me how that is to come about with the top 1% of the population owning as much as the bottom 90% of the population combined, and the ever-widening gap between rich and poor. To be a true “ownership society” would require a redistribution of wealth so that all Americans have the assets and opportunities they need to become “owners.” If the goal is to spread the wealth, then we must also admit that our present tax system is hugely unfair to the workers of America and disproportionately in favor of the wealthy. People earning over half a million dollars a year are subject to the lowest tax rate in over 50 years, and much of their unearned income isn’t being taxed at all. At the same time, if you figure in payroll taxes, sales taxes, property taxes, and all the other taxes and various fees the average worker is subject to pay, you can plainly see that the workers are paying more than their fair share (as a percentage of their income) while reaping almost none of the benefits available to the richest 1%… tax loopholes, the finagling of teams of accountants (hello Enron!), huge deductions for charitible contributions, tax shelters, and other such tax-free ventures. Those of us in the bottom 90% simply can’t afford to take advantage of the system the way they do. And by the way, the increased national income in the current so-called “economic recovery” has gone mostly to corporate profits, and a record low proportion to workers’ wages. The “owners” are doing very well, while the “slaves” are out here struggling from paycheck to paycheck, and only one paycheck away from destitution.

Faith in “trickle-down” economics is based on the observation that corporations and rich individuals, blessed by GOD HIMSELF with ever more riches, will actually invest their money in America, making our country “stronger” and “safer” and leading to that inspiring vision of that “shining city on the hill” in their little fantasy world. In the “reality-based” world however, corporations and rich individuals will actually invest overseas because in today’s economy, their investments travel the world in search of the highest return, and it sure isn’t to be found in the good ol’ USA. Thus we see corporations outsourcing jobs to India and other places where labor is much cheaper, and that trend will continue. Any “ownership society” plan must stem the widening income gap that threatens to turn our nation into a two-tiered society (or worse, a third world country), else the majority of Americans will not be “owners.”

Also, businesses and corporations do have civic responsibilities that go along with their “ownership” benefits, just as citizens do, and they must not only be held accountable for their actions, but also be encouraged to invest in our country for the “commonwealth” and prosperity of every member of society, from it’s lowest economic classes on up. Both Democrats and Republicans have strayed dangerously off this track and are, in my opinion, failing to perform their duties as servants of the American people.

So, what’s wrong with the entirety of the Administration’s fantasy budget proposals? It’s this: the very people who lack the decent health insurance and drugs benefits, the jobs retraining, the education, and the secure nest-eggs, are also the ones short of adequate earnings from which to take out savings (to help themselves or anyone else) or even to invest in their own futures. These are not lazy people refusing to work, most of them are employed and many of them hold down more than one job. Without adequate wages, there can be NO savings, no investment in retirement plans, no investment in private supplemental income accounts, no investment in their own educations, no investment in housing or any of the other things we take for granted in a developed western nation. The last thing they need is to shoot dice and gamble away what little money they have left on “personal savings accounts” which will be regulated by government, and which will result in even more income for the wealthy investment houses through brokerage fees. Not to mention that such investments will not be covered by any insurance or government guarantees. Thus, most of the tax breaks end up going to the people who don’t really need them, and the 90% who do will find less and less assets of ownership.

All forms of “privatization” take ownership out of the hands of the public (commonwealth, the “commons”) and put these things into the hands of corporations and wealthy individuals (the top 1%). This is exactly the opposite of what would be required in a true “ownership society.” Why hasn’t anyone mentioned this? Because the proponents of Our Employee’s budget, and his rich buddies, want you to skim over that idea, or remain confused or swayed by the media spin and not connect it with their true agenda of stealing every darned thing you and I already own and are struggling to keep.

It’s true that more than half of American households now own stocks in corporations, but for most, it’s just a few thousand dollars worth, and the total value of those current portfolios is actually less than what was invested, especially true for those who lost a huge proportion of their assets in the dot com crash of the ’90’s, in the raiding of retirement plans by the unscrupulous, or in the Enron-like scams that followed.

If we truly want an “ownership society” based heavily on increased individual savings, let’s start with decent incomes (living wages at minimum) so that ordinary people can afford to pay their bills on time and perhaps begin to save some of their earnings for investments of their own choosing. Government help does NOT preclude individual initiative, on the contrary, it was programs like the “old” GI Bill, Pell Grants, FHA and SBA loans that allowed individuals to become “owners” of assets and to have savings and investment opportunities. It’s time we also stopped thinking about budget items like education, teacher training, child care, health care, public transportation, the environment, jobs training, prevention of discrimination, first responders like firemen, police, and doctors, and infrastructure like roads, ports, railway lines, and bridges, as spending. That is NOT spending, it is an investment in both our country and in our childrens’ future. Those are investments in our “commonwealth” and “common good” which benefit society as a whole.

And that, my friends, is the only path towards our collective prosperity as an “ownership society”… NOT this misguided, twisted scam to steal our money and our “ownership” which is being perpetrated on our citizens by this Administration. Ignore what they say, watch what they do. Take notes. And guard the public trough.