Wall Street is off to its worst January in history. The nation’s biggest mortgage lender is rumored to be nearing bankruptcy. Unemployment is on the rise. Every day seems to bring more bad news about the economy, and Americans’ view of the economy is at its worst since 1992.
Bad economic times are red meat to many progressives, who will be jumping on the chance to talk down the economy still further and trumpet a message of neopopulist pessimism.
Progressives should resist that temptation. We shouldn’t be trying to convince Americans that we’re on the brink of a new Depression, or that the middle-class is teetering on the precipice of poverty. Rather, we should be working to persuade Americans that we understand what it takes to get the economy moving forward in a way that benefits average families.
Our new memo offers our take on the elements of a middle-class economic package that will both provide the economy the short-term boost it needs and put the middle class on solid, long-term footing. We propose:
- Short-term middle class tax cuts to boost consumer spending and restart the housing market;
- Targeted help to families who’ve hit a rough patch through no fault of their own;
- Investment for new investment by businesses, including small businesses, to keep the economy growing;
- Permanent middle-class tax cuts and new policies to create middle-class wealth and help families navigate the new rules of economy; and
- Long-term infrastructure investments in schools, highways and broadband technology.
Our package is not about rescuing the middle class, progressives should be wary of portraying the middle class as victims. Rather, our message should be about re-orienting government policy toward ensuring future middle-class prosperity.
