Sunday, May 29, 2011

HERES TO THE END OF "SACRED COWS."

I define a “sacred cow” as an idea, or an institution, or any long-held “truth.” And with the infinite design of “truth” – not to be tampered with. In other words, we learn to live with what is wrong. (For those who may not put two and two together, it derives from Hindu respect for the cow.)

My Sunday Morning “enlightenment” often begins watching some of the best public service items on TV. This morning I watched Republican House leader Eric Cantor defend the Republican makeover of Medicare. (This whole issue has its counterparts here in the tax-cutting platform of Tim Hudak and the less-government-lower-taxes of the Harper government.) In the U.S. the Republican claim that Medicare is headed for bankruptcy and so the next generation of Medicare user i.e. anyone under the age of 55 now, will have access to medical care through a voucher system. The government will issue vouchers and the seniors who receive them are free to “shop” for the best deal from health insurance providers. Sounds like a great idea, an idea that enshrines at least one sacred cow: the ability of the marketplace to solve all our problems. In this instance, the sacred cow is the insurance industry. The folly of suggesting that private insurance companies will actually “compete” is at the heart of the problem. Witness what happened in California. When “Obama-care” became law, Blue Cross Blue Shield of California raised rates by 40%!

There are other sacred cows that hold back progress in the name, ironically, of progress.

Hudak in Ontario, Harper in Ottawa, and the Republicans of America, are one in their belief that tax cuts improve the economy. The truth is that tax cuts are vote- getters, sadly, among those most critically affected by the failure to raise taxes in the wealthy and big corporations. More sacred cows.

The other pervasive sacred cow continues to be the deficit. In all the “belt-tightening” that is part of deficit reduction; it is the ones who are most vulnerable who are asked to tighten their belts. Paul Martin became our economic saviour when, as Minister of Finance under Chretien, he did enough belt-tightening to eliminate the deficit (but not the national debt) with a series of almost Draconian cuts to services. Martin is still a hero and is a consultant to countries who want to learn about his deficit-reducing magic.

The final sacred cow is of course the tax increase. Republicans literally dine out on their hatred of tax increases. The 2% of the wealthiest Americans will not be hurt by having to pay more. The likes of multi-billionaire Warren Buffet has supported tax increases for the super-rich. Part of that sacred cow is the “assault” on small business.

Resistance to keeping the 35% corporate tax rate is based on the harm it will do to small business. That’s gospel. Except that most small businesses never approached the point where they pay high corporate taxes. In fact, at least in the U.S., many of those so-called small businesses are companies like hedge funds.

But finally, a politician whose summons of obedience to the sacred cows will win, supported by the uninformed who still have the right to vote.

There is hope. In Western New York, a Democrat defeated a Republican in a Congressional election. The “wedge” issue was Medicare. Enough voters woke up and the former Republican stronghold went to the Democrats. While it’s hardly a revolution, it may mean that the light is dawning.

In this country, it is hopeless, at least for now. To pretend the same thing will happen. Perhaps the issue of that sacred cow is what suddenly transport of the NDP from a minor third party to the official opposition. Only time will tell.