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President-Elect Obama's Stimulus Plan Is Only Half a Loaf

by: Steven Hill, t r u t h o u t | Perspective

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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.

  

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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.

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Please note that contrary to

Please note that contrary to what is stated in the article above, there is no law mandating that Canadians get 2 months paid vacation; the minimum paid vacation for full-time work is 2 weeks/year. Sadly, part-timers are not even gauranteed that. One of the arguments made in Canada for not increasing the amount of holiday time is that we must remain competitive with our neighbor to the South.

http://www.truthout.org/01160

http://www.truthout.org/011609A I have been writing this for years, but Americans don't -- cannot -- believe this. There is a difference between health INSURANCE and health CARE We want a new health CARE Even universal coverage by Medicare would be a joke. I am on Medicare -- typically that pays a little over HALF of the real cost of health care. 13,ooo

If you were interested in

If you were interested in this article please visit these youtube videos put out by the AFL/CIO. The first one is: http://www.unionvoice.org/ct/s1qBaA91WuDz/ . The second one is: http://www.unionvoice.org/ct/sdqBaA91WuDS/ .They plan on airing a few commercials and they're giving a sneak preview. The trolls are in full force making comments about how fair labor practices be would bad for our economy (as if the economy is measured by how well the top 2% are doing). It would be nice if a few of us lefties were there to respond.

Time to move to Canada! I

Time to move to Canada! I have heard this information from the time I was a tot, about health care in Canada verses the US. Americans have been brainwashed into thinking that they have it all. Guess what? We don't! And guess what else? What you did have has been taken away, so now you have to settle for crumbs.

Dear Steve! The possible

Dear Steve! The possible investment in the people is squandered by wasting it on the military (imagine 250000 people building wind turbines instead of playing hide and seek in the desert). Right now the nation needs investments in productive capital and sorry to brake it to you but social spending has very little to do with productive investments. The wealth of the nation has to increase to that we will be able to afford more social spending. There is a time for everything and right no needs to be the time for productive investments so that the wealth of the nation can increase and so that we can afford more social spending down the road. More jobs are imperative right now, everything else has to come later!!!

I was injured in an accident

I was injured in an accident in BC some years ago and was taken to a doctor's office. After careful examination, she announced that nothing was broken, but if I wanted an x-ray she would get it done. I didn't. Then she asked if I had a health card (or whatever it was called), apparently noticing my SoCal accent. When I told her that I had none, she apologized for having to charge me.....$8.00. And that was on a legal holiday. So they don't cover the fancy stuff that only the rich can afford in the US, anyway. I'd rather that my children had access to such affordable care. Back when I was a child, during the Depression, there were community clinics at which shots and basic care were administered.

'President-Elect Obama's

'President-Elect Obama's Stimulus Plan Is Only Half a Loaf' by Steven Hill. This is a fantastic article! It is right on the money. I only wish that Obama could read it! Many Americans wish that we had at least a minimum paid vacation for full-time work that frank from Canada is complaining about! The biggest problem is that most Americans are unaware that better more humane solutions for healthcare exist in this world. This article helps to increase understanding but until Americans have first-hand experience they just don't get it.

There is a huge difference

There is a huge difference between the intent of government in other developed nations and the U.S. Their philosophy of government having a duty to all of their citizens is in direct contrast to our philosophy of government having a duty only to the elite. Obama is the President only because the elite funded his successful campaign and put their support behind him. His "advisers" are really his handlers. He will not get far proposing any meaningful reforms that conflict with the business models of those that bankrolled him. He will be dancing with them that brung him. To expect anything else, one must postulate the overthrow of the present form of "government."

Questions for Steve

Questions for Steve Hill: The reason that the universal-pay systems work in other countries is that the doctors do not charge exorbitant fees like they do here. I don't know how we can get around this fact? Also, I have never seen it suggested that we create an new 'army' of general health practioners, sort of like a peace corps for our own country. One reason that the quality of care here is so expensive or non-existant is that we have a shortage of general practioners. Can't we train a whole new generation of doctors/public servants who are dedicated to their profession instead of just trying to make as much money as they can?

sorry to brake it to you,

sorry to brake it to you, Stephan Albrecht, but social spending has EVERYTHING to do with productive investments. That's what this article is all about.

Americans live to work -

Americans live to work - everyone else works to live. And France's health system is even better than Canada's from what I've read elsewhere (can't remember where, sorry, but possibly a prior TO article, actually). Our capitalist society is allergic to the notion of others, vs self. We will always fail as long as this is so. But I think we are ever so slowly shifting in the right (er, left) direction. Some states are starting to address it on their level. It may take an uprising before we're done tho.

STeven Hill: If you actually

STeven Hill: If you actually know a country in Europe where employees have TWO MONTHS PAID VACATIONS, please don't hord the name. I'd like to go there. I am a Swiss national; Switzerland ranks as fairly generous with workers and employees but, unless you are school teacher, you get three weeks vacation - period. And you have to contribute quite heavily to your own retirement. you make europe sound like Utopia. I love to live there but it is not , actually, the way you describe it. Get real! (It's more useful). Respectfully, Signoret

The definition of productive

The definition of productive investments is that they create revenues or benefits over time that more than out weight the initial expense. The more productive the investment the higher the multiplier effect. Again I am sorry, but social spending is mostly a cost and does not have a high multiplier effect. The emphasis for now has to be on infrastructure investments, which have a high multiplier effect. Once the wealth of the nation is restored then social spending can increase, otherwise we will not have change, we will just go bankrupt faster!!!

StevenHill, Oh only 3

StevenHill, Oh only 3 weeks? I'll cry for you. Americans are lucky to get 2 weeks, after working at least 14 months to prove that they will stay with the company. There is no "law" governing "vacation"; only custom. On the other hand, I would rather walk into any US shop in need of help than any European one. Americans offer service. Europeans offer surliness,

Like every other category

Like every other category that's been privatized, health care worked better at less cost way back in the day when it was mostly non-profit. Bring in big bucks and you bring in the pigs, thieves and con artists. What's next: privatized police and fire departments? Privatization of certain things just don't work well in serving all of the people.

I have to remind everyone

I have to remind everyone that the reason the US gov't doesn't have any money to spend besides spending it on unproductive crap like wars is that the banking cartel owns us and our government, too. Let me explain: The Federal Reserve Act in 1913 took away the power of the US gov't to issue it's own money and thus control credit and gave it to the FED which is a PRIVATE BANK, owned and controlled by the banking cartel. What this means is that the US gov't has to BORROW, AT INTEREST, any money needed for the money supply as well as funding of government operations and programs. The principal on this debt never gets paid back, it just keeps growing and our tax money goes to pay an ever larger sum in interest to these private bankers. The overall effect is that wealth produced in this country goes on a one-way trip from the people to the banksters instead of being available to fund the maintenance of physical and social infrastructure. Though it would not be difficult for the gov't to reassert the soverign right to issue the nation's money, regain control of credit and stop the hemorrhaging of money out of the US it is not likely that the gov't will do so because the bankers have bought and paid for all the politicians left, right and center. If the government were to rescind the Fed Reserve act, nationalize the banks as a bailout requirement or bought controlling shares in return for the bailout money the regulation and oversight of money and credit would return to the US and the interest on treasury issued money loaned to businesses could be spent for the common good. The crazy, unconstitutional, illegal scheme is firmly entrenched

Oh yes, I forgot: if you

Oh yes, I forgot: if you want to know more about how banking really works and how the banking cartel sucks the life out of nations, go to http://www.webofdebt.com.

In 2004 I married and

In 2004 I married and English man and moved to northern England from the US. Two months after I arrived I had an ectopic pregnancy which required immediate surgery (not keyhole - but open surgery). I was required to stay in the hospital for 5 days afterwards to recover. When I was released I was given a prescription for pain killers, which cost Β£6.43 ($12.00) to fill. This was my only bill. I was also offered support from the NHS mental health department for free when I returned home. If the same situation would have happened in the US my husband and I would have been crippled with debt from the start of our marriage, and no doubt we'd still be trying to cope with the costs. The hospital had no impressive atrium, the wheelchairs were a bit older and the rooms were minimal, but I received decent care and only had to deal with the emotional ramifications of the situation (which had been difficult enough). To compound it with financial destruction would have made recovery take much longer, if not impossible. I own a company over in the UK, and have all American clients. It would be much easier to live in America, however until this country starts to treat its citizens like human-beings I'll continue to take US money and put it into the UK economy. England is far from perfect but it's better than the US.

The only way to change this

The only way to change this ownership society is to amend the Constitution to prohibit private money totally out of politics. Only when political campaigns are totally publicaly funded will the public get what we deserve.

In response to the comment

In response to the comment by "lindro", "...privatization of certain things just don't work well in serving all of the people". In spite of the image of America being a haven of equality, there is strong strain of elitism. There are those who do not want everyone to be served equally by any system, because it is believed that certain people do not "deserve" good treatment. Those certain people may be Blacks, gays, Hispanics, or anyone who is not "upscale", drives a late model car, or doesn't speak with flawless English. In other words, those who don't have the look or style of "true" Americans. I happily voted for Obama, but already I see a dilution of his original goals, but I suppose that something is better than nothing. I would love to see the comments of Mr. Hill to be fully considered. The money is there - if we want it to be.

The main cause of high

The main cause of high health care costs is insurance. The main cause of teh high insurance costs is lawyers and bad doctors.

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

It's not enough to talk about economics without putting the welfare of the citizenry first. That boat has sailed; it actually left port in the early 20th Century, Americans just missed it. The cause is pretty simple really - we are a country created for economic exploitation. Europeans landed, the super rich were given vast tracts of the "frontier" by their respective monarchs. Exploitation companies were created to fund stripping the new world, often with the crown itself an investor. Got a native population? Kill them off and import peasants who will expect little and demand nothing other than the chance to work their way out of slavery. Then give them fairy stories about personal freedom being the root cause of riches [actually, it is and continues to be, "insider" contacts that guarantee wealth] and have the churches tell them that if they're not doing well it's because they're morally flawed and/or lazy. -- American affluence is, and has always been, Vegas for the outsider. The casinos publicize their very occasional winners like mad to keep the myth of possibility alive, while picking 99% of the remaining pockets. Vegas is comparatively moral; at least there you know you were unlucky - not God damned when you come up short. -- America has been a con game that makes three card monte look childish. The only way to change it is through large scale social protest. That's the only way anything useful in this Country has happened from the end of black slavery to the 40-hour work week to universal suffrage. You want to live in the first world? Gear up; the rich aren't going to give to you. The only really generous people in this country are the poor and the pitiful few remaining in the middle class. The rich? Get serious.

I voted for Obama and now

I voted for Obama and now intend to hold his feet to the fire. He has moved from universal healthcare (while not even in office) to some hybrid scheme where the insurance companies will continue to take a huge portion of our individual budgets. I'm retired and just paid $150 to get an MRI denied by my supplemental insurance, profit-making company. I paid the 20% not covered by Medicare myself, rather than jump through all the hoops Blue Cross presented as a pre-requisite to the MRI (read more time, more tests, more money). Medicare approved the diagnosis--Blue Cross did not. Who's running the show? Sleepless in Texas

President-Elect Obama has

President-Elect Obama has made it clear that he wants ideas to be sent his way. Please, Mr. Hill, make sure that your message above is one of those he receives.

Steven, I'd add Australia

Steven, I'd add Australia and New Zealand to your list of civilized countries. Oh, and they all are socialist, since that word originally meant an economy that was constrained to serve social interests like medical care, education, and decent work rather than the avarice of the already rich. Please don't give the fascists an ugly new word when we've got an old one that does just fine. If they take our language they take our thoughts. Thanks for noting #1's premier status in paid maternity and sick leave. Would be interesting to see how many countries have pieces of the package you suggest. I know from experience that the socialized systems in Malaysia and China treat foreigners quite as well as those in Canada and UK. *Anonymous 20:41, see my comment on "Obama team seeks public input on Health care", K Freking, TO for a sketchy start.

Another inaccuracy about

Another inaccuracy about Canada--paid sick leave is not legislated. Also, our wonderful health care system is under attack by provincial governments allowing private clinics to operate, thus allowing those with the money to jump the queue while those who don't have it now have to wait longer for medical care. This is not happening where I live in B.C., but it is starting to happen elsewhere in Canada. Also there is now a doctor shortage. Unfortunately our present Prime Minister, Harper, is doing everything he can to make life here the same as in the U.S.