Privatization

For example, many of you may be concerned regarding the future status of social security. There is a growing debate as to whether our social security system should be privatized. See http://www.balancedpolitics.org/social_security_private_accounts.htm

What do you think? Should our social security system be privatized? If so, why? What are the risks/costs/issues with privatizing our social security system? Should the system not be privatized? If so, what are the arguments for leaving this program in the hands of the government? What are the risks/costs/issues with leaving the system in the hands of the government?

On the other hand, our health care system is primarily privatized. For almost ten years now, we've watched members of Congress and various segments of society debate whether the United States should adopt some form of universal healthcare, and that issue has really picked up steam this election cycle. See http://www.balancedpolitics.org/universal_health_care.htm

Industrial policy

Government bailouts of certain industries are examples of industrial policy. In this year and last, as the economy struggles from the impacts of shutdowns for public health reasons, many businesses are struggling. In an effort to stimulate the economy through fiscal policy, the government issued a few rounds of stimulus checks to individuals. Read the article attached below that outlines some reasons for and against using stimulus checks to individuals to rescue some hard hit areas of the economy. What do you think? Are stimulus checks to individuals a good way for the government to have an influence over business (by bolstering the economy in general), or would an industrial policy focused on more complicated bailouts to particular industries, as was done in the early 2000s for the financial and auto industries, be a better solution?

2/28/2021 The Morning: Debating stimulus checks View in browser | nytimes.com The New York Times The Morning January 25, 2021 By David Leonhardt Good morning. Are $2,000 stimulus checks a good way to help the economy and fight poverty - or "an abomination"? STIMULUS CHECKS ESTIMULD ECONOMICO CASHED OPENS AQUI HERE 24/7 OUR LOWEST RANK PLS A store in Brooklyn advertised to cash stimulus checks in April. Sarah Blesener for The New York Times The debate over the checks The idea to send $2,000 checks to most Americans began circulating in the spring, pushed by progressive Democrats like Senator Bernie Sanders and Representative Pramila Jayapal. But the proposal has never fit into a neat ideological box. Some moderate Democrats also saw the checks as a good way to help people https://messaging-custom-newsletters.nytimes.com/template/oakv2?abVariantld=1&campaign_id=9&emc=edit_nn_20210125&instance_id=26368&nl... 1/112/28/2021 The Morning: Debating stimulus checks 2/28/2021 The Morning: Debating stimulus checks during the pandemic. And some Republicans liked that the checks went directly poor or working-class family than it does to an upper-middle-class family. (Very to Americans, rather than being filtered through a government program. By the affluent families don't qualify for the checks.) end of last year, Josh Hawley, a conservative Republican senator, and President Donald Trump were backing the idea, as well. Consider this chart, which shows how the two rounds of pandemic checks that the government sent last year - equaling $1,800 combined for many people - The checks have since become a centerpiece of President Biden's coronavirus affected after-tax incomes: response plan, accounting for $465 billion of his proposed $1.9 trillion in spending. Polls show that the idea is popular. Change to income after the 2020 stimulus payments By income bracket And yet some economists - and politicians, in both parties - have deep reservations. Today, I want to lay out three main arguments both for and Lowest fifth 16.8% against the idea, based on my conversations with experts and people on Capitol Second fifth 7.7 Hill and in the Biden administration. I hope these points will help you decide Middle fifth 4.8 what you think. Fourth fifth 3.2 Highest fifth 0.7 First, the basic facts: Because the virus-response bill that passed in December Top 1 percent |0.0 included $600 checks, Biden is now proposing $1,400 checks, with bonuses for By The New York Times | Source: Tax Policy Center children. A typical family with two parents and three children could receive $4,600. Families making less than $150,000 a year would likely be eligible for The checks aren't simply a stimulus program. They are an important part of the full amount Biden's ambitious effort to fight poverty. The case for the checks The case against the checks. 1. People need help. Almost 10 million fewer Americans are working now 1. Many people don't need the money. The current recession is a strange than when the pandemic began, and normal life is still months from returning. one. Neither house prices nor stock prices have fallen - and many people's "Doing too little has enormous downside cost," Sharon Parrott, president of the expenses have declined - leaving most Americans financially better off than a Center on Budget and Policy Priorities, told me. year ago: Many households are also coping with the long-term effects of slow-growing incomes and wealth over the past four decades. The checks will let people decide for themselves how to spend the money - be it to cover medical expenses, pay tuition, save for retirement or buy a car. Much of this spending will stimulate the economy and create jobs. 2. It's simple. At a time when many people don't trust the government, easy- to-understand policies can build trust. Matthew Yglesias, author of the Slow Boring newsletter, calls this the "does exactly what it says on the tin" principle. The Obama administration designed a complex stimulus program in 2009 and didn't get much political credit for it. The Biden administration can heed this lesson. 3. It's surprisingly progressive. A $4,600 check means much more to a https://messaging-custom-newsletters.nytimes.com/template/oakv2?abVariantld=1&campaign_id=9&emc=edit_nn_20210125&instance_id=26368&nl... 2/11 https://messaging-custom-newsletters.nytimes.com/template/oakv2?abVariantld=1&campaign_id=9&emc=edit_nn_20210125&instance_id=26368&nl... 3/112/28/2021 The Morning: Debating stimulus checks 2/28/2021 The Morning: Debating stimulus checks Most households are richer than when the pandemic began In that case, Democrats would have to choose between altering their plan and Inflation-adjusted net worth by income group, change since 2000 passing the bill through a process known as reconciliation, which requires only 100% 51 votes. Top 1% 90 to 99% 50 THE LATEST NEWS O 50 to 89% THE VIRUS Bottom 50% -50 -100 '00 '02 '04 '06 08 '10 '12 14 '16 '18 '20 Shaded areas represent economic recessions. By The New York Times | Source: Moody's Analytics As a result, many people will save the money the government sends them, which won't help put other people back to work. "I think the checks are an abomination," Michael Strain of the American Enterprise Institute told me. 2. It's possible to target the money. Biden's stimulus could instead increase unemployment benefits even more than it now proposes. Or it could do more to help small businesses stay open. Or more to expand child care. A drive-through vaccine site in Lake Elsinore, Calif. Alex Welsh for The New York Times 3. F.D.R. wouldn't have done it. Sending people money does little to address the country's deepest problems - like climate change and the West Virginia has become a leader in the U.S. vaccine rollout, using 83 underlying causes of inequality. Those problems require coordinated percent of its allotted doses. But there still aren't enough shots to go government action. So why has Biden embraced an expensive, Trump-backed around. idea that's basically a big tax cut? . Millions more in the U.S. will get the virus unless people keep wearing "I don't ever remember F.D.R. recommending sending a damn penny to a masks and maintaining social distance in coming months. This scientific human being. He gave 'em a job and gave 'em a paycheck," Senator Joe model shows why. Manchin, a West Virginia Democrat, has said. "Can't we start some infrastructure program to help people, get'em back on their feet?" . Biden will ban travel from South Africa to contain a variant of the virus detected there. (U.S. citizens and permanent residents are exempt.) What's next Biden will extend travel restrictions on other parts of the world, too, The checks will be a central part of the debate over Biden's first virus bill. Many including Brazil and Europe. Senate Republicans oppose the checks, which means they may fall short of the . "They knew that nonsense could not be spouted without my pushing 60 votes needed to overcome a filibuster. back on it," Dr. Anthony Fauci told The Times, referring to his time in the https://messaging-custom-newsletters.nytimes.com/template/oakv2?abVariantld=1&campaign_id=9&emc=edit_nn_20210125&instance_id=26368&nl... 4/11 https://messaging-custom-newsletters.nytimes.com/template/oakv2?abVariantld=1&campaign_id=9&emc=edit_nn_20210125&instance_id=26368&nl... 5/11