Review of The Pro-Growth Progressive: An Economic Strategy for Shared Prosperity (Hardcover)

The Pro-Growth Progressive is an outline that promotes the agenda of the liberal movement (now self re-named as Progressive). This outline contains both strategy (to link policy ideas to American values of work, self reliance, fairness, equality of opportunites, etc.) and substance.

Both strategy and substance are well organized and mostly balanced. I tend to overlook the occasional rhetoric and one-sidedness, since it was probably inserted to help maintain the interest of the extreme left. In short: this outline is mostly a re-statement of the Clinton adm. domestic policy goals, with some expanded, some re-worked, and with some interesting new ideas presented here.

The main policies suggested here are:

1. Universal 401(k)with $2-to-$1 matching tax credits on the 1st $2,000 invested (and portability, since ALL americans will be offered this program).
2. Universal Pre-school.
3. Universal after-school.
4. Job re-training programs, and education assistance programs.
5. Maintain Social Security in it's present form (fix it by adding a new 3% tax on all income above $200,000).
6. Reject any/all attempts at protectionist trade policy.
7. Maintain and improve the current progressive tax system.
8. Reverse the Bush Tax cuts (at least on the top 2% and on the reduction of estate taxes).
9. Modest increase in Fed. min. wage (to $7.00 - $7.25 in 2006).
10. Expand/increase the Earned Income Tax Credit.
11. Balance the budget (except in times of recession or other national urgency situation).

While most moderates can agree with most of these policies, at least in principle, the author has presented few estimates of actual costs to taxpayers. This summary of costs should have been included in a final chapter - such final chapter was notably absent. The estimated costs are a necessary component of any serious policy discussion and should have been summarized in table form.

Left to my own rough estimates, it seems that the Progressive agenda presented here would cost:
- reverse the Bush tax cuts
AND
- increase taxes BY TWO TIMES the Bush-tax-cut-reversal-amount to balance the budget, to fully fund SS, Medicare, the Universal 401K, etc.

While the policy objectives presented in this outline are noble and honorable, much elaboration is still needed on each item that would further examine the cost of the income transfers and the benefits to America as a whole.

I did enjoy the author's style and his aggressive and fair debate. (BTW, I am a moderate Republican...) His relentless pursuit of a balanced budget is absolutely correct, and the proposal of Universal 401k is also a policy whose time is right. Finally, his analysis that free trade is good for all Americans proves that he is a Democrat that "gets it". It fact, the author thinks like an economist - understands there are ALWAYS trade-offs and secondary effects, and thereby measures his policy goals by their likely overall consequenses to the US economy. (Hence the "pro-growth" objectives.) The major question left TBD is whether the policy results themselves can provide more contribution to a "virtual cycle" or will the costs of poorly re-distributed capital create an excessive drag on the economy (thus hurting those that such policies are designed to help)?


Republicans better get their act together - strategists like Gene Sperling have an agenda that if follwed by Dem candidates - will probably change the political landscape for a very long time. If Democratic candidates were to follow these guidelines, there could be a new majority in congress in 2006 and the WH in 2008.















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