No one has any money. That’s what all the recently released data seem to suggest, and it’s the opposite of what we would like to believe.
The American Community Survey’s new data just came out with data on national and state poverty and income levels, and the average household income in Madison fell twice as much as the national average income did in 2009. Unemployment also rose in Wisconsin, as did poverty rates. The economic picture painted by this data is bleak, and it presents a particularly difficult policy conundrum for legislators.
First, if no one has any money, then the government has fewer sources of income. If people do not have enough to cover the basics, then the government is supposed to step in and help out. But if the government does not have sufficient funds either, then legislators are left trying to play 52-card pick-up with a deck of 30 cards. The numbers just do not add up. The fact that it is getting increasingly difficult to secure funding for necessary social services, such as BadgerCare, food stamps or even public education is not a strong enough argument for cutting back or completely rescinding these programs. Let’s face it: An economy that allows every person the financial means to procure all basic goods (not even luxury items, just the basics) is not yet within our grasp, and for some people these programs are the only thing keeping them afloat.
Even before the Great Recession, as it has been termed, there were vast inequities in wealth distribution in both the state and the country. The United States’ economy is a pretty impressive behemoth; I am certainly not denying that. I am merely asserting it is not to the point where no one falls below the poverty line or where everyone can secure for themselves necessary goods. The government should step in to help fill that gap. Social services are a way in which we, as a society, can collectively agree to empower the government to take care of the population as a whole. I cannot pay for someone else to go get health insurance. But, I can have a few dollars taken out of each paycheck to provide health coverage for millions of people under Medicare. I have attended public schools for my entire educational career, and I have seen firsthand what happens to schools when school districts are faced with budget cuts. A school that has more teachers can better serve its students, but there are few people who could pay the salaries of those needed teachers. If everyone in a community pitched in a few dollars per year, however, the problem could be easily solved.
In a country as large as this, in a state as large as this, a solution is not going to be the product of a few people’s actions. We all have to come together to address the challenges of the day. Wisconsin was a progressive state before the Progressive era. “Fighting Bob” La Follette embodied the movement, and counties and cities across the state served as models for the nation. The time has come to do so again. Wisconsin is, not surprisingly, facing a budget deficit (What government isn’t?) Revenues are down because incomes are down, but expenditures are rising because need is rising. Wisconsin needs creative solutions. Legislators cannot just keep harping on ‘trimming the fat’ and nixing unproductive services. Those are important reforms, and necessary ones, but they will not solve the problem. The legislature can fiddle with expenditures, yes, but it can also adjust revenues.
Now, don’t get all freaked out, I’m not suggesting a tax increase. Instead, we need new, more efficient methods of taxing. Instead of relying so heavily on excise taxes (which are regressive by nature), let’s figure out how to reform the tax code to include more progressive taxes. Revenues will likely increase and tax burdens will be more easily borne because they will fall more fairly on the citizens of the state. Times are tough, and in tough times we need to employ both the innovativeness America is famous for and the progressivism Wisconsin is famous for. Wisconsin median incomes dropped 5.4 percent from 2008 to 2009. That is an alarming figure. Instead of abandoning all the people affected by that drop and instead of continuing to ignore the people who were already struggling, we need to get creative and enact substantial change.
Elise Swanson ([email protected]) is a sophomore majoring in political science and English.