Sunday, April 4, 2010

An Open Letter to Republicans: Part II

Last week, I explained why the Republican view on income redistribution is diametrically opposed to the Democratic position. Now that healthcare reform has passed, and the final pillar of the Democrats’ social contract is the law of the land, legislative battles will likely revolve around fixes to the system (despite Republican cries for repeal, which is extremely unlikely).

Since Medicare faces insolvency in the long-term, and Social Security has funding gaps only 10 years out, the great policy debates of the next 10-20 years will focus on the mix of tax increases and benefit reductions that must be made to repair America’s balance sheet.

But there will also be arguments over the best ways to achieve our social goals. In this regard, it would be extremely helpful for Republicans who reject the extremist elements now dominating their party to play a constructive role.

For starters, the Republican insistence on personal responsibility could play a lead role in shaping America’s healthcare policies. Many of the diseases that most afflict Americans—heart disease, cancer, obesity, diabetes—are often due to lifestyle choices. Incentives should be built into the system which reward decisions leading to positive outcomes and penalize negative behaviors.

Example: people who eat junk food, don’t exercise, and smoke cigarettes—and are therefore more likely to require expensive medical procedures—must be given powerful incentives to change. This could mean lower premiums for making positive changes, or higher premiums for not making them. Republicans, with their emphasis on personal responsibility, are well-positioned to make this case.

In order to pay for things that we all want, it will also be necessary to find and root out as much waste as we possibly can.

There is no better place to start than the military budget. At minimum, tens of billions are wasted every year on unneeded weapons systems and on contractors who overcharge. In addition, while maintaining a strong U.S. military abroad may be in our interests, we could save billions more by reducing our forces in Europe and Asia, where threats are minimal. Republicans, with their emphasis on national security, should take the lead on making this a priority.

Ratcheting down the “war on drugs” would also save billions in wasted law enforcement dollars (both in the U.S. and abroad); and through a program of gradual legalization, billions more could be gained in tax revenue. Moves towards legalization would take much of the crime out of the drug trade and reduce a major source of revenue for terrorists. Republicans have always been known for their “tough on crime” stance—so if they showed leadership in this area, it would be taken seriously (see this great video by a former Republican judge on his mission to end the war on drugs).

Economists agree that to solve our high-unemployment problem, America needs a prolonged period of robust economic growth. While free trade is no silver bullet, it’s important because protectionism and distorting subsidies prevent the most efficient use of resources. Calling for a return to the negotiating table to conclude the latest Doha Round of trade talks would be a great way for Republicans to reaffirm their commitment to free trade. In addition, calling for an end to agricultural and other natural resource subsidies would not only help move the talks along; it would also save taxpayers tens of billions (which the GOP always wants to do, right?).

Finally, there are two more domestic issues for which well-intentioned Republicans could take the lead. The first would be to help diffuse the divisive gay marriage issue. Republicans could make a persuasive case, based on personal liberty, that the government has no rightful place in the marriage business. Governments need to sanction civil unions to confer legal benefits and rights, but should not otherwise be involved. By sanctioning civil unions for both heterosexual and homosexual couples, and leaving the issue of marriage up to individual religious institutions and the couples themselves, the government could extricate itself from this issue. This is the most sensible way forward.

On affirmative action, Republicans could help make the case that it’s time to move away from race-based to class-based methods; numerous studies have shown that it’s economics, more than race, which drives educational disparities. This would diffuse another issue that breeds white resentment (which Obama is on the wrong side of), while at the same time maintaining policies to help the disadvantaged.

None of the policies or approaches described above falls entirely within the purview of Republican or conservative ideology, but each represents an area where Republican support could be significant or even decisive.

In sum, Republicans can play a constructive role if they once again embrace reasonable policies, and eschew the obstructionism and venomous sound bites that have turned their once proud party into today’s caricature.

Jason Scorse

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