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The Catholic Democrat view
On Poverty & Greed

“No one can, without being grossly unfair, make divine Providence responsible for what clearly seems to be the result of misguided governmental policies, of an insufficient sense of social justice, of a selfish accumulation of material goods, and finally of a culpable failure to undertake those initiatives and responsibilities which would raise the standard of living of peoples and their children. If only all governments which were able would do what some are already doing so nobly, and bestir themselves to renew their efforts and their undertakings! There must be no relaxation in the programs of mutual aid between all the branches of the great human family. Here We believe an almost limitless field lies open for the activities of the great international institutions.”
—Humanae Vitae, encyclical of Pope Paul VI, 25 July 1968

Our struggle is with the politics of fear and favoritism in our own time, in our own country. Our struggle, like so many others before, is with those who put their own narrow interest ahead of the public interest.
—Senator Ted Kennedy, speaking to the Democratic National Convention, July 27, 2004

Census Report Shows Republicans Have Turned Deaf Ear to Middle Class and Working Families

Aug 31, 2005--Catholics are called first and foremost to care for one another. The poverty of my neighbor is something that Jesus has called us to rectify, indicating unambiguously that those of us who fail to do so "shall pass on to eternal punishment, and the just to eternal life. (Mt 25:46)"

House Democratic Leader Nancy Pelosi released the following statement on the Census Bureau’s report that the nation's poverty rate climbed to 12.7% of the population last year, rising for the fourth year in a row; the number of uninsured increased; and median household income failed to grow.

Since President Bush took office, 5.4 million more Americans are living in poverty, 6 million more are without health insurance, and families are stretched too thin as household incomes have declined by almost $1,700 in the last four years. Every segment of American society has seen their income decline under this Administration, with the middle class and working families are losing the most ground.

Leader Pelosi said, "President Bush and the Republicans in Congress are turning a deaf ear to the middle class and working families struggling to make ends meet. This report shows that the President and Republicans in Congress’ decision to increase the deficit, while slashing student loans, heath care programs, and food stamps are the wrong choices for the American people. Republicans should abandon these efforts and join Democrats to expand opportunity for every American."

~ ~ ~

When President Bush took office, the number of uninsured had decreased for the first time in 12 years, and the economy was booming. Today, the Census Bureau announced that real household income has decreased again slightly 2004, falling for the fourth year in a row. More than 1.1 million people fell out of the middle class into poverty into 2003, an increase of 5.4 million people living in poverty since the beginning of the Bush Administration. Despite this drop in income and increase in health care and gas prices, Republicans are still not listening to or addressing the struggles of middle-class families. Instead, they are focused on helping the special interests. Democrats are fighting to help middle class families with an economic plan that benefits all Americans.

Real household income falls for the fourth year in a row, dropping slightly in 2004. This represents a decline in median household income of $1,669 since the beginning of the Bush Administration, meaning that middle class families are falling further and further behind economically. And the reality is that every segment of American society has seen their income decline under this administration, with those in the middle-class and working families losing the most ground. For example, households in the middle income bracket have lost 4.0 percent of their income, and households in the poorest 20 percent of the population have lost 7.9 percent of their income, while households with the highest incomes lost only 2.9 percent of their income.

Men working full-time see their earnings drop below 2000 levels. Perhaps one of the more disappointing results is what has happened to earnings for full-year full-time workers. Between 2003 and 2004, the median earnings for men working full-time declined by $963 – putting their median earnings below 2000 levels. Women working full time saw their median earnings decline by $327.

Minority families’ real household income continues to suffer under the Bush Administration. The typical African American family’s inflation-adjusted income has fallen by $2,273 since the beginning of the Bush Administration, and the typical Hispanic family’s inflation-adjusted income fell $2,141.

Number of people living in poverty increased by 1.1 million in 2004. About 1.1 million people fell out of the middle class into poverty into 2004, an increase of 5.4 million people living in poverty since the beginning of the Bush Administration.

17.8 percent of American children lived in poverty during 2004. Almost 13 million children were living in poverty in 2004, up from last year and an increase of about 1.4 million since the beginning of the Bush Administration.

Minorities disproportionately live in poverty. About 25 percent of all African Americans (9.4 million) were living in poverty in 2004. About 22 percent (9.1 million) of Hispanic Americans were living in poverty.

 

Politics of greed writ large as Congress adjourns for the summer

In the closing hours before the summer recess, the Senate passed an Energy Bill containing $14 billion in new subsidies to the oil and gas industry, at a time when they are enjoying record profits as a result of $60/barrel oil prices. With demand in the developing world rising fast, the profits to these industries are only going to continue to climb. But the oil executive-heavy Bush Administration couldn't resist the temptation to reward their friends, despite the ballooning budget deficit.

Similarly the Highway Bill passed the Senate, focused on expanding roads and bridges at the same time that Amtrak is fighting for its life. The benefits of good public transportation are so many: increased national productivity by reducing traffic delays; decreased air pollution; fewer traffic fatalities. But don't look to the $286.4 billion bill to actually solve any transportation problems. In fact, this bill represents another huge giveaway to friends of the Administration and to the Republican leadership in Congress. Mr. Bush claimed that he had succeeded in limiting the pork in the bill. But as Carl Hulse reported in the NY Times on 8/4/05, Congress managed to sneak an extra $8.5 billion into the bill and still meet the Administration's "demand" for fiscal responsibility, by requiring that the extra money be returned to the Treasury on the day the bill expires, on Sept. 30, 2009.

The giveaway to the gun industry at the end of session was truly breathtaking--mostly for all the young people who will die as a result of the potential for increased gun availability on the streets of US cities, and perhaps for US soldiers confronted with small arms that foreign conspirators will increasingly be able to buy in US markets. See Senator Kennedy's remarks in the Senate prior to the passage of this unconscionable bill.

Lastly, the Central America Free Trade Agreement (CAFTA) passed the House by one vote, after a spree of Republican vote buying by the House leadership. House Minority Leader Nancy Pelosi spoke on the floor July 27, 2005 about the reasons why every person of conscience should be opposed to an agreement that is likely to result in more poverty among both the workers of Central America and the manufacturing workers of America.

"Mr. Speaker, I rise in strong opposition to the Central American Free Trade Agreement. It is a small treaty economically, but it has enormous implications for our country. I oppose CAFTA because it is a step backward for workers in Central America and a job killer here at home. As a Californian, and there are many in the chamber this evening, we all know full well the significance of our close ties to Central America. My own City of San Francisco is blessed with large populations of Central Americans, including those who sought sanctuary from El Salvador and those fleeing decades of civil war in Guatemala.

Our fate is tied with our neighbors in the hemisphere. President John F. Kennedy recognized this in 1961, when he announced the Alliance for Progress, calling for ‘vast multilateral programs to relieve the continent’s poverty and social inequities.’ The Alliance for Progress included both economic cooperation and called for economic reforms as conditions of participation, just as we call for stronger labor and environmental standards today as the reasonable condition for trade agreements.

Mr. Speaker, I wish that the CAFTA bill we are debating tonight was an agreement that opened markets, included basic labor standards, and protected our environment. This type of trade agreement would have lifted the economies of both the United States and Central America. It would have attracted support from a large number of Democratic Members who have long histories of supporting free and fair trade, including recent free trade agreements with Australia, Singapore, Chile, Morocco, Jordan, Vietnam and Cambodia.

Unfortunately, that is not that kind of trade agreement before us tonight. Instead, we are considering a trade agreement that promotes a race to the bottom that hurts U.S. workers, turns back the clock on basic internationally-accepted worker protections, and fails to protect the environment. As a result, the Republican leadership is having a hard time convincing its own Members how to vote for this bill. You have heard a colleague earlier, Mr. Brown talk about twisting arms until their broken into a thousand pieces. The gentleman from Florida, Mr. Shaw, referenced the New York Times so I will too, which this morning said that a White House official said that the last votes are likely to be won with the most expensive deals. We should be able to pass good, fair trade treaties on their merits. Instead the Administration is trying to persuade people with sidebars, side letters, and side deals. They have never worked in the past. They are just a con, and I hope our colleagues will not fall for the con.

In their desperation to win votes, the President and the Republican leadership in the House have also proclaimed that CAFTA will promote U.S. national security and democracy in Central America. The truth is, if we want to improve our national security and promote democracy there, we should heed the words of Pope Paul VI, who said: ‘If you want peace, work for justice.’ Trade alone, devoid of basic living and working standards, has not and will not promote security, nor will it lift developing nations out of poverty. Our national security will not be improved by exploiting workers in Central America.

Here at home, CAFTA threatens U.S. jobs by making it harder for American businesses and farmers to compete with countries that have excessively low wages and deficient working conditions. We have lost 2.8 million manufacturing jobs since President Bush took office. CAFTA doesn’t solve the jobs problem; it only digs the hole deeper. These downward pressures create a race to the bottom that needlessly threatens U.S. jobs. Nothing in this agreement will help raise substandard wages in Central America or help create a strong middle class that has the disposable income to buy U.S. goods.

Democrats understand the need to help our Central American neighbors reap the benefits of increased trade, but the costs of this CAFTA are too high with too little to justify this agreement’s deficiencies. We must have basic worker protections, which ensure that our trading partners abide by the most fundamental standards of common decency and fairness. The CAFTA we are debating today fails to promote these basic measures of decency and fairness. And, in fact, it takes a step backward from current law because it removes the requirement from these countries to abide by the worker’s rights standards of the international labor organization.

“When it comes to the environment, Democrats believe that environmental principles must be a central part of a core trade agreement. CAFTA will do absolutely nothing to improve environmental protection in Central America, and it will open up our own environmental laws to attack by foreign corporations. My colleagues this CAFTA allows multinational corporations to sue governments, including our own, for compensation if the environmental laws reduce the value of their investment or cuts into their profits. CAFTA places no value on the environmental health of the Americas. Moreover, the enforcement provision in this CAFTA is virtually nonexistent. It merely calls for CAFTA countries to enforce their own laws. Enforcement in these areas must be written into CAFTA if they are to be effective – they are not.

Mr. Speaker, Democrats believe that to keep America in the lead the nation must adopt a bold, new, and sustained commitment to technological innovation and educational excellence. That commitment would ensure that our country remains competitive and vibrant against formidable international competition, generating high quality jobs throughout the 21st century. We are committed to addressing the challenges of an increasingly competitive global market. Our economic future rests on our ability to innovate new products and to create new markets for those goods and services. We insist that this Administration revisit its flawed trade policy and work with Democrats so that we can pass free trade agreements including a new and improved CAFTA that expands markets, spur economic growth, protect the environment, and raise living standards in the U.S. and abroad. That would allow us to move forward with our other priorities. Mr. Speaker, American families are facing serious challenges: rising health care costs, record gas prices, climbing college costs, and massive job layoffs. They are worried about the direction of our country

Instead of addressing the serious issues that directly affect America's families and coming up with real solutions, Republicans have abused their power and focused on the wrong priorities -- pursuing an energy bill that does nothing to lower gas prices, or a Social Security privatization plan that weakens the safety net for America’s elderly. Sadly, this trade agreement and the way it has been pursued by the Administration has become yet another example of those misplaced priorities and missed opportunities.

President Kennedy said in 1961 that the United States and Latin America are “firm and ancient friends, united by history and experience and by our determination to advance the values of American civilization…We must support all economic integration, which is a genuine step toward larger markets and greater competitive opportunity.” It was true then, it is an inspiration now. I urge my colleagues to send this CAFTA back to the drawing board. The Administration can negotiate a new CAFTA that would open markets, include basic labor standards, and protect our environment. Such an agreement would attract strong bipartisan support. This CAFTA does none of the above. It does not protect the environment, it does not grow the economy in our country, it does not lift the living standards in Central America, and it does not have my support. Vote ‘no’ on this CAFTA."

What to expect in a future Democratic Administration:

  1. Good-Paying Jobs—According to IRS data released on 7/28/04, total adjusted gross income on U.S. tax returns fell 5.1% from 2000 to 2002. When adjusted for inflation, the income of all Americans fell 9.2% during the first two years of the Bush Administration.1 Tax policy should make it financially viable for U.S. firms to avoid outsourcing U.S. jobs overseas, and enforce worker standards among our trading partners by enforcing our trade agreements.
  2. Tax policies that reward work—Under the Bush Administration, the wealthiest Americans have received a windfall. Current inheritance tax law, which taxes unearned income on only the top 2% of estates in America, is a target for elimination by Mr. Bush. Their priorities are making permanent the dramatic cuts in the top income tax brackets and in further cuts in capital gains taxes. Social Security payroll taxes, which disproportionately affect working people, are currently being used to subsidize tax cuts for the wealthiest Americans—a reverse Robin Hood strategy for rewarding Republican campaign contributors. Catholic Democrats support tax policy that again serves to address the needs of all Americans, and not just the best-connected.
  3. Eliminating hidden taxes imposed by the Bush Administration—the failure to fund local emergency services adequately under the new Department of Homeland Security has imposed huge new budgetary liabilities on local governments, forcing them to increase everything from sales taxes to property taxes to school and other use fees. The vast majority of Americans disproportionately bear the burden of these Bush tax increases.

    Catholic Democrats seek to provide adequate resources to ensure that America's first responders have what they need to protect their communities, without forcing those localities to choose between teachers and police, or between librarians and firefighters.

    As inflation rises and the Federal Budget Deficit explodes under the Bush Administration, the Federal Reserve has indicated its intent to raise interest rates in order to attract new international capital and to retard the growth of inflation. Higher interest rates are a hidden tax on people with low and middle incomes by virtue of the higher cost imposed for owning a home and the larger chunk of family income taken by interest payments on credit card and other family debt.

    Catholic Democrats advocate for returning the Federal Budget to a period of fiscal responsibility like that achieved during the Clinton Administration, living within its means and insuring that federal spending does not crowd out private investment.

Moral scorecard:
Our duty to care for one another as Catholics is not optional. Pope John Paul II wrote in his Familiaris Consortio (1981): "The Christian family is called upon to offer everyone a witness of generous and disinterested dedication to social matters through a `preferential option' for the poor and disadvantaged." Although greed itself may merely represent that extreme form of self-preservation, the accumulation of wealth without generosity to others if antithetical to Christianity. The Pope wrote again, in Centesimus Annus (1991), "But it will be necessary above all to abandon a mentality in which the poor—as individuals and as people—are considered a burden, as irksome intruders trying to consume what others have produced. The poor ask for the right to share in enjoying material goods and to make use of their capacity to work, thus creating a world that is more just and prosperous for all. The advancement of the poor constitutes a great opportunity for the moral, cultural and even economic growth of all humanity."

The raison d’etre of the Bush Administration has been the further enrichment of the already well-to-do, as noted in his famous fundraising remarks where he referred to the “have-mores” as his “base.” If Jesus did indeed “change my heart,” as Mr. Bush famously intoned during the 2000 Campaign, it is difficult to see what part of his heart actually follows Jesus command to “love your neighbor as yourself.” Throughout scripture, it is how we treat the less fortunate that is the critical test of our adherence to the Will of God.

Woe to him who builds his house on wrong, his terraces on injustice; Who works his neighbor without pay, and gives him no wages. Who says, “I will build myself a spacious house, with airy rooms,” Who cuts out windows for it, panels it with cedar, and paints it with vermillion. Must you prove your rank among kings by competing with them in cedar? Did not your father eat and drink? He did what was right and just, and it went well with him. Because he dispensed justice to the weak and the poor, it went well with him. Is this not true knowledge of me? Says the Lord. But your eyes and heart are set on nothing except on your own gain, on shedding innocent blood, on practicing oppression and extortion. —Jeremiah 22:13-17

Next he will say to those on his left hand, 'Go away from me, with your curse upon you, to the eternal fire prepared for the devil and his angels. For I was hungry and you never gave me food; I was thirsty and you never gave me anything to drink; I was a stranger and you never made me welcome, naked and you never clothed me, sick and in prison and you never visited me.' Then it will be their turn to ask, 'Lord, when did we see you hungry or thirsty, a stranger or naked, sick or in prison, and did not come to your help?' Then he will answer, 'I tell you solemnly, in so far as you neglected to do this to one of the least of these, you neglected to do it to me.' And they will go away to eternal punishment, and the virtuous to eternal life.
—Matthew 25:41-46