Monday, March 10, 2008

Compete on quality or cost?

ILLUSTRATED: Democrats can package our platform as making the American economy competitive on quality.

The simple fact of economic globalization is that America cannot compete on cost in the long run. We may start an industry, but other countries will undercut us with downscale models and improve quality over time. America must compete on quality. The Republican party is totally out of position.
Fundamentally, Republicans say "cut taxes and accountability on the 3% who control capital, and they will grow the economy and benefit all." An unreconstructed liberal says " increase the budget and authority of the 3% that run our public institutions and they will allay all societal ills." Both lines are now discredited with the voters. Democrats can now own the issue of being pro-economic growth.
When it comes to supporting public education, fiscal sanity, the environment, the rule of law, good foreign relations, and universal health care, it all leads to a high value society. That is a "pro-business" policy.
The evidence is clear: economic growth is not highest where taxes are lowest. Economic growth is where the most educated people are.

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