Social programs are key to growth -- Harold Gollman

April 1, 2019

The Republican ideal is to get rid of government waste, but the current concept is to cut public education, cut social security, cut welfare, cut environmental protection, cut healthcare, and give huge tax cuts to corporations and the wealthy.

The idea is to produce jobs and help the economy so the wealthy become wealthier. Will this even work? States and countries with high government spending, such as Germany and California, seem to do better than low-spending governments, such as Turkey and Alabama.

High government revenue and taxes don’t suppress industry or income. We need social programs for industry to thrive and for us to be competitive in a world market where major competitors have high social welfare spending (universal healthcare, free education, government retirement plans, minimum incomes). Avoiding socialism will result in the United States being less competitive in the world market. If the government does not supply these programs then industry has to, in the form of a higher minimum wages and more benefits.

What will these industries do? I’m thinking they may move to countries with better infrastructure, better education and cheaper workers. What is going to happen to our economy? I’m guessing it will collapse.

Harold Gollman, Madison