When President-Elect Biden proposed his latest economic recovery plan the intentions of which are sound but, therein lies potential setbacks to authentic economic stabilization of our economy. We have to point out that any increase in basic wages my sound like a dream come true for millions but, conversely consumer goods have always risen proportionally to any increase in incomes. A case in point: When the Alaska pipe line was being constructed wages for the average construction worker was around $80,000 per year. What was not readily explained was the fact that rent, food, even gas for commuting correspondingly rose as well. The bottom line is the fact that these construction workers barely had enough disposable income to really have any net gain in their financial situation.
After years of disingenuous policies coming out of Washington it has been these policies that has greatly reduced the majority of America’s ability to obtain the American Dream. Even before this Pandemic the publics ability to keep pace with inflation was greatly hampered by economic policies that have and still do favor the 1%. The results are staggering. The greatest wealth disparity gap in history continues to widen. Every city all across the country are facing budget shortfalls at record levels. The tax base has already shrunk to it’s lowest level in history. And, we all should know what all of this means. The safety nets that millions of Americans cling too are letting more and more people drown in a sea of desperation.
When we put what has happened to the once great American economy due to a history of trickle down economic policies the conclusions are: we have record foreclosures every year, more people falling below the poverty line, more acute hunger, more disease and that is without counting this pandemic, and more homelessness. These are all the results of what has been allowed to transpire through the years by our governments failure to come to bat for the American public.
Now, when we have a new President that seems to realize the pathetic state of our nation ought to be a welcome sign of things to come. But, this new Administration must understand that with this 1.9 trillion stimulus proposal is short sighted. One of the main focal points is the federal minimum wage increase. This is like putting the cart before the horse analogy. There has to be policies in place before passage of any increase of the federal minimum wage. When wages increase and the objective is to pull people out of poverty and lift them up to be financially stable we have to realize that consumer prices have and do in fact increase proportionally to wages. The net gain for individuals amounts to zero if we don’t address this vital fact.
In order to improve one’s ability to increase net income gains after wage increases there has to be all ready in place a moratorium on price increases of consumer goods, rents, and interest rates. Not only to improve ones financial stature this policy should be implemented for the next 12 months. This, until the majority of Americans can finally catch up to the ever increasing rate of inflation that has and will continues to subject more and more of our population to suffer almost irreversible financial damage if we fail to understand the consequences of not addressing this fact.
The United States under this new Administration has a golden opportunity to restructure the whole American economy. One that works for the people and not just the 1% either. This 1.9 trillion stimulus proposal is a good start. But, it is only a start. What is needed on top of this is a complete national economic reform agenda. A definitive plan of direction that propels the United States into the future. This is something this nation hasn’t had in over 60 years. National Economic Reform’s Ten Articles Of Confederation is that plan. The Biden Presidency could be one that leaves a nation well situated and poised to once again regain it’s stature as the leader in global affairs. It all depends on the health, the economic growth and financial stability of all Americans. That is the realization that will occur if we act today and implement this concise plan of direction.