President-Elect Obama's Stimulus Plan Is Only Half a Loaf
Friday 16 January 2009
by: Steven Hill, t r u t h o u t | Perspective

Health insurance provided by Bill Neace's company is paying for his wife Dottie's breast cancer treatments. But recent layoffs by his employer and his recent surgery for a ruptured colon make eligibility for affordable post-employment health care uncertain. Dottie fears she may not be able to continue her cancer treatments without health insurance. (Photo: Getty Images)
Imagine a place where doctors still do house calls. Or where child care is affordable, professional and widely available. Or where all new parents are paid to stay home and care for their newborns and they receive a monthly stipend to pay for diapers, food and other daily needs.
Or imagine a place where a young person doesn't have to mortgage her or his future by going in debt to pay for a college education. Or where everyone has quality, affordable health care, and all workers receive two months' worth of paid vacation and holidays every year, and paid sick leave too, as well as a generous retirement.
To most Americans, such a place sounds like Never-Never land. But to Europeans, Canadians and the Japanese, this sounds like standard operating procedure. It is important for Americans to keep this in mind as we listen to President-elect Barack Obama announce the goals of his new administration.
For example, in announcing his economic stimulus plan, Obama unveiled some badly needed measures, including rebuilding of roads, bridges and schools and increased renewable energy production. But his American Recovery and Reinvestment Plan misses an opportunity to more directly invest in the greatest "infrastructure" of all - the American people.
Public investment in physical infrastructure as a way of creating jobs and boosting consumer spending is a sensible strategy. However, it leaves American workers stranded by the same "ownership society" ideology that has been part of the problem. The fact is, the next economic recovery will be followed at some point by the next downturn. Without a different type of intervention, Americans will remain lacking in the type of institutional support and "social infrastructure" that is crucial for providing economic security in this uncertain age of global capitalism.
A more comprehensive solution has been crafted in Europe, Japan and Canada. What they do is redirect a small amount of each employee's and business's income into a pool of funding to pay for universal social infrastructure like affordable child care, paid parental leave, paid sick leave, free or nearly free higher education, affordable health care, job training programs, adequate vacations, sufficient retirement pensions and more. Providing this to all residents lays a much stronger foundation for the middle classes in these countries than anything comparable in the United States.
For example, the US is one of only five countries that do not guarantee some form of paid maternity leave (the others being a few impoverished African nations and Papua New Guinea). Fathers are granted paid leave in 65 countries, but the US guarantees fathers - as well as mothers - nothing. A majority of Americans are not even eligible for unpaid parental leave.
The US also is one of only a handful of nations that have no national law guaranteeing paid sick leave, leaving some 46 million workers - 43 percent of the private industry labor force - without paid sick days. At least 145 nations provide paid sick days, since if you're sick they want you to stay home and take care of yourself. In the US, we want you to show up to work and infect your coworkers.
American detractors have decried this European, Canadian and Japanese way as a "welfare" state and "creeping socialism," but nothing could be further from the truth. A better name for this system is a "workfare" state, since all of these supports are part of a comprehensive system of institutions geared toward keeping individuals and families healthy, productive and working. They have put some meat on the bones of their "family values."
But in America's "ownership society," you are truly left "on your own." In theory, this should lead to Americans paying less in taxes and having greater discretionary income, but this has been mostly an illusion. In return for their taxes, people in these other countries are receiving a whole host of benefits and services for which Americans end up paying extra, out-of-pocket, via fees, premiums, deductibles and tuition, in addition to their taxes. When you sum up the total balance sheet, you discover that many Americans are paying out just as much as these other nations - we just receive a lot less for our money.
Properly understood, these workfare supports are a necessary part of infrastructure investment, just like the maintenance of physical infrastructure such as bridges and roads or spending on energy efficiency. This social infrastructure investment also creates jobs and stimulates consumer spending, even as it invests in the most precious resource of all - people.
By basing his economic recovery plan on a narrow emphasis on physical infrastructure investment, President-elect Obama fails to recognize how social infrastructure must be a crucial part of the mix. A failure to invest in social infrastructure during this critical time will leave the American middle class on the same shaky ground where it has always stood, fearing the next economic downturn.
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Steven Hill is director of the Political Reform Program for the New America Foundation. His book, "Europe Rising," will be published by the University of California Press in 2009.



Comments
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Please note that contrary to
Fri, 01/16/2009 - 19:21 β frank (not verified)http://www.truthout.org/01160
Fri, 01/16/2009 - 19:23 β robert wolff (not verified)If you were interested in
Fri, 01/16/2009 - 19:58 β Anonymous (not verified)Time to move to Canada! I
Fri, 01/16/2009 - 20:13 β omallj (not verified)Dear Steve! The possible
Fri, 01/16/2009 - 20:16 β Stefan Albrecht (not verified)I was injured in an accident
Fri, 01/16/2009 - 20:21 β Anonymous (not verified)'President-Elect Obama's
Fri, 01/16/2009 - 20:23 β Anonymous (not verified)There is a huge difference
Fri, 01/16/2009 - 20:36 β EDGEOFNOWHERE (not verified)Questions for Steve
Fri, 01/16/2009 - 20:41 β Anonymous (not verified)sorry to brake it to you,
Fri, 01/16/2009 - 20:45 β Anonymous (not verified)Americans live to work -
Fri, 01/16/2009 - 20:57 β Jan in Portland, OR (not verified)STeven Hill: If you actually
Fri, 01/16/2009 - 21:36 β Signoret (not verified)The definition of productive
Fri, 01/16/2009 - 21:57 β Stefan Albrecht (not verified)StevenHill, Oh only 3
Fri, 01/16/2009 - 22:15 β Anonymous (not verified)Like every other category
Fri, 01/16/2009 - 22:49 β lindro (not verified)I have to remind everyone
Fri, 01/16/2009 - 23:04 β LHC (not verified)Oh yes, I forgot: if you
Fri, 01/16/2009 - 23:11 β LHC (not verified)In 2004 I married and
Fri, 01/16/2009 - 23:15 β Anonymous (not verified)The only way to change this
Sat, 01/17/2009 - 00:28 β Eric Rogers (not verified)In response to the comment
Sat, 01/17/2009 - 01:58 β Anonymous (not verified)The main cause of high
Sat, 01/17/2009 - 15:02 β The Die Hard (not verified)The bottom third of bad doctors is responsible for 90% of the screwups. The lawyers get 90% of the payout for screwups.
If teh doctors who screwed up more than once got their licenses yanked, and teh lawyers who went after multi-million-dollar rewards (because they keep most of it) weren't even allowed to get in teh ambulance-chasing business, then taking your kid in to get her ear looked in and an antibiotic shot wouldn't cost two hundred dollars!
Get rid of bad doctors, forbid lawyers from profiting more than a straight fee for screwup lawsuits, and get "insurance" out of the equation altogether, and we'll quit having to go to teh emergency room for normal health care. Bill and Dottie can just quit their bitchin' and suck it up like FORTY MILLION Americans have had to do - or quit voting for politicians who have solid-gold health care themselves but oppose even well-baby care.
It's not enough to talk
Sat, 01/17/2009 - 15:12 β bvc (not verified)I voted for Obama and now
Sat, 01/17/2009 - 15:33 β Anonymous (not verified)President-Elect Obama has
Sun, 01/18/2009 - 15:41 β grimbear (not verified)Steven, I'd add Australia
Sun, 01/18/2009 - 16:08 β jpoverseas (not verified)Another inaccuracy about
Mon, 01/19/2009 - 00:21 β Anonymous (not verified)