An Economic Vision for South Carolina

It is time for the wealthy to pay their fair share in taxes to fund new investments in America.

Our economic recovery since the pandemic has been significant, but increased investments in America have been blocked by Congressional Republicans. The official unemployment rate has dipped below 4%, yet people who work 20 hours a week are counted as employed, while those who stopped looking are not counted. Still, more than half of Americans work paycheck to paycheck.

The Biden administration deserves credit for enacting an infrastructure bill. Yet, the Republican congress limited the needed spending on public buildings, bridges, water systems, the electrical grid—vulnerable to cyberattack, and public housing. Most experts see every dollar spent on infrastructure yielding about $2 in return. These investments will create millions of new jobs and strengthen businesses and communities.

The digital revolution has shrunk the oceans to lakes. South Carolina is now closer to China in terms of trade, transportation, communication, investment, and environment, than South Carolina was to New York when the Constitution was signed.  We now confront transnational corporations that often pledge allegiance to the best investment opportunity.  We must incentivize them to invest more in America, and help build any economy that increases opportunities, dignifies workers, and protects the earth.  

CLIMATE CHANGE
Back in 2003 the Pentagon issued their Quadrennial Report which declared that climate change is a greater threat to national security than terrorism.  The increase in the severity of floods, fires, drought and famine will cause mass migrations and political instability. Climate change is forcing rapid growth in sustainable energy-up 88% last year in America—and can create millions of good paying jobs in solar, wind, conservation, and biomass. The cost of solar panels has plummeted and is much cheaper than coal or natural gas.  Some conservative Republican cities in Texas are using 100% renewables because it is fiscally sound. More government investment in research and development for sustainable energy will allow us to produce more windmills and solar panels here, rather than buy them from China and Europe.  

GOOD JOBS
Manufacturing jobs now make up a smaller share or our economy than at any time since WWII. They pay 15% more than service jobs, and create on average another 4 or 5 support jobs in the economy. We must end tax breaks for companies that relocate overseas, strengthen tax breaks for companies that invest in America, and require “buy American” provisions to federal contracts. A one-time tax incentive to attract the $2 trillion in tax havens to invest in American factories, R&D, as well as infrastructure, seems practical.  High tech jobs will require more technical education-- so federal support for education must increase-- from early childhood programs to making college affordable. To stabilize families we must make the minimum wage a living wage—A practical compromise will create more opportunity for children, lower crime and increase aggregate demand.  Under President Reagan, compromise was seen as common sense, and gridlock was seen as grandstanding.  We have to move the ball down the field.

TRADE POLICIES
Trade policies can create jobs, yet our recent trade agreements have lost jobs and have not protected the environment. The Trans Pacific Partnership was written in secret by corporate lawyers-- and President Trump was right to kill it.  Under NAFTA we have lost 61,000 factories—so NAFTA needs to be renegotiated to end the Investor-State Dispute Settlement.  I oppose a Border Adjustment Tax-- which could trigger a trade war, and would increase prices for our businesses and consumers.    

HEALTHCARE
Our current healthcare hurts families and businesses. Conservative businessmen in Canada strongly support their Medicare for all system because everyone is covered, it costs about 60% as much as ours and they live 3 years longer than we do.  Their businesses have higher profits, and families have more security and money to spend.  This increases aggregate demand—and the national debt finally shrinks.

BANKS
Our banks are still too big to fail, but also too big to understand and regulate.  Senator Durbin (D-Ill)  has said that, “this is a government of the banks, by the banks, and for the banks”.  The big banks might need to be broken up.  The Glass-Steagall Act, which separated commercial from investment banking, must be restored.  Main Street must never again have to bail out Wall Street.  And publicly funded credit unions, run by the community, Like those proposed by Senator Bob Dole, will take more risks on small businesses and the public, and create thousands of jobs.  

UNEMPLOYMENT
Unemployment in our inner cities is higher than during the Great Depression.  Back then the Civilian Conservation Corps provided jobs to millions in developing our national and state parks, while providing educational opportunities.   A modern CCC can be established to create jobs, opportunity, lower crime, and to preserve God’s creation.   

NATIONAL DEBT
How can we afford this with a large national debt? The wealthiest 1% must pay their fair share in taxes.  Under President Eisenhower the taxes on the wealthiest 1% were 90%, and we built an infrastructure that was the envy of the world.  Now the taxes on the wealthiest 1% are about 38%, before loopholes.  We can also implement a modest financial transaction tax, used already by 40 countries. Current corporate taxes are already competitive when we count all of the loopholes. More than 2/3 of current corporate profits are used for stock buybacks and increased dividends. Further, the Pentagon has not passed an audit in two decades and we must eliminnate the waste and fraud from government.

These investments in America, to create jobs and security, are fought by the wealthiest 1%-- who put 98% of the money into our political campaigns.  Our elections have become auctions.  A constitutional amendment is needed to change our campaign finance laws.  Public pressure can create these changes, which will strengthen businesses, families, communities, and the American Dream.