Conservatism Is The Problem:
“Redistribution” is not a matter of first principles and anyone who tells you otherwise is mistaken. All fiscal policy is redistributive, in that it involves collecting taxes from someone and spending money on programs that benefit someone else. And the question of how progressive that redistribution ought to be depends on outside factors, such as the relative economic cost of various kinds of taxes and the level of pre-tax inequality.
Changes in economic conditions should change people’s preferences about the level of fiscal progressivity. For example, if returns to economic growth increasingly accrue to people at the top of the income distribution, we should become more favorable to progressive redistribution. If the economy becomes more fragile, with more risk of recessions that lead to years-long spells of high unemployment, that calls for a more robust and progressively-financed safety net. And if top income tax rates are well below the peak of the Laffer Curve, that creates more room for added progressivity.
As it happens, these are all conditions that have manifested over the last thirty years, and especially the last five — and they’re why I favor a more redistributive fiscal policy than I used to. Conservatives are wrong on this issue, and outside conditions have shifted over time in a way that has made them much more wrong than they used to be.
As Barro notes, the The Republican Party today is in a situation very similar to the British Labour Party back in the ’80s. Being too extreme made the socialists in the Labour Party ineffective both at winning elections and at enacting policies. If the GOP can become more moderate, it can again be an effective opposition party to the Democrats going forward.
The New York Times:
The Proposition 8 case already has a powerful conservative supporter: Theodore B. Olson, the former solicitor general under Mr. Bush and one of the suit’s two lead lawyers. The amicus, or friend-of-the-court, brief is being filed with Mr. Olson’s blessing. It argues, as he does, that same-sex marriage promotes family values by allowing children of gay couples to grow up in two-parent homes, and that it advances conservative values of “limited government and maximizing individual freedom.”
Legal analysts said the brief had the potential to sway conservative justices as much for the prominent names attached to it as for its legal arguments. The list of signers includes a string of Republican officials and influential thinkers — 75 as of Monday evening — who are not ordinarily associated with gay rights advocacy, including some who are speaking out for the first time and others who have changed their previous positions.
The times are certainly a-changing. The Republican Party needs to keep moving in this direction if it’s going to stay relevant – as the article mentions, roughly 70 percent of voters under 30 believe that gay marriage should be legal.
Republicans could even use this tactic to undermine Democrats on key youth issues, like the War on Drugs. I’m willing to bet a lot of people would be swayed by a small government argument: the government shouldn’t be interfering with what people do with their bodies, we should cut wasteful DEA spending on less harmful drugs like marijuana, etc.
These next few years are going to be very interesting.
The Real Cost of Shrinking Government – NYTimes.com:
Last week, Senate Democrats produced a much better plan to replace these cuts with a mix of new tax revenues and targeted reductions. About $55 billion would be raised by imposing a minimum tax on incomes of $1 million or more and ending some business deductions, while an equal amount of spending would be reduced from targeted cuts to defense and farm subsidies.
Republicans immediately rejected the idea; the Senate minority leader, Mitch McConnell, called it “a political stunt.” Their proposal is to eliminate the defense cuts and double the ones on the domestic side, heedless of the suffering that even the existing reductions will inflict. Their refusal to consider new revenues means that on March 1, Americans will begin learning how austerity really feels.
This is why we can’t have nice things.