Protecting the Middle Class and Reducing Inequality
Fiscal Policy
Jan Schneider appreciates “it’s the economy, stupid.” She applauds the strong recovery and promising prospects for the United States economy in 2024. But Congress must do more, particularly to protect the middle class and to reduce economic inequities.
A Strong Recovery
Despite dire predictions by pundits of impending recession, in 2023 the United States gross domestic product increased at a 3.3 percent annualized rate. The annual Consumer Price Index inflation rate went down to 3.4%, 2.7% for food. Unemployment held steady at 3.7%.
Markets and the Economy
Meanwhile, although stock markets should not be equated to the economy, 2023 was a banner year for market performance. The Standard & Poor’s 500 index ended the year with a gain of more than 24%, the Dow was up 14% and the Nasdaq soared by 43%. Continuing the good news, in the beginning of 2024 the S&P 500 and Dow reached record highs, and the Nasdaq also rose.
Who Is Being Left Behind
Nevertheless, many Americans are lagging behind. Several past measures have jeopardized the middle class and the country by grossly increasing federal deficits while doing little to promote investment in infrastructure and small businesses. The Trump Tax Cuts and Jobs Act, probably the most blatant example, prioritized benefits for the ultra-rich and wealthy corporations at the expense of everyone else. Bills recently introduced by Republicans to extend expiring TCJA provisions would deliver an average tax cut of $175,000 — over 2.5 times the typical family annual income — to the 120,000 highest income households.
The Inequality Challenge
Meanwhile, the United States has the highest economic inequality among industrialized nations, and the gap continues to rise. According to recent statistics, the wealthiest 1% own about one-third and the top 10% about two-thirds of the total household wealth in this country; in comparison, the lowest 50% owns less than 3%. Income disparities are similarly disturbing and growing.
Jan’s Priorities
Jan opposes making permanent the disproportionate Trump tax boons, supporting instead fair taxes with no increases for the middle class; supports raising the federal minimum wage to a living wage, according a measure of security for working families; and favors fair trade measures protecting American industry, workers and the economy. Opponent Vern Buchanan (R-FL16), whose net worth has been calculated as high as $160 million, has repeatedly sponsored bills to make the TCJA tax cuts permanent; himself enjoyed forgiveness of over $2.3 million in Paycheck Protection Act loans; and consistently supports policies and engages in practices advantaging himself and other ultra-rich Americans.
