Column: The American economic model

Much of the United States' economic success can be attributed to its business-friendly laws, healthy equity and debt markets, the American work ethic and nearly unrestrained capitalism. But aside from the outsider's view of the successful balance sheets and income statements of the major corporations as well as the luxurious lives seen on television of the American upper-class, America is far from an economic, political or social utopia.

Compared to our peer countries, the gap between the rich and poor is wider, crime rates higher, public education not as well-funded and healthcare less accessible for the less wealthy.  

Some Western European countries have better handled the balancing act between economic gains and socio-economic equity, and we should learn from their successes. Sweden, for example, has an extremely low unemployment rate--5.1 percent in 2001--and healthy American-like GDP growth.

At the same time, Sweden devotes its relatively high tax revenues to providing healthcare to all its citizens, affordable and equitable education and social welfare programs that are needed by the poor. Despite what many conservative theorists in America continue to preach, the higher taxation has not interfered with Sweden's economic prosperity and high quality-of-life.

The United States is undoubtedly the economic leader of the world, but Western Europe seems to be the leader of democracy and equality.

With our economic strength, why haven't we provided for the millions without health insurance in the United States? Why are K-12 schools across our country without proper funding? Why is higher education so expensive leaving our students in such ridiculous debt? We must do something to alleviate these social ills.

It's time that our representatives in Washington and Raleigh become our proponents, not our masters. And it's time that they start seeing us as citizens, not simply consumers.

Somehow President George W. Bush has managed to weasel through tax cuts for corporate elites (resulting in fewer jobs, not more) and to spend money that the government does not have on a war and rebuilding effort in Iraq when we are suffering a crisis at home.

Instead of addressing these serious problems, the Bush team mistakenly allocated billions of dollars to the war and rebuilding effort in Iraq and passed the biggest tax cut in history when that money should have been spent on a universal healthcare plan, improving all of our schools, helping states get through serious budget shortfalls and providing for the working poor.

We did not need a tax increase to solve these problems; the money was there to spend responsibly. We just wasted it on Iraq and on fattening the pockets of the corporate elite.

America cannot let a "caste" system emerge when we have the power to provide basic services to our people. The capitalistic structure of America's system will not be shattered by more social welfare. By investing in our population, improving the health and education of our masses, we will see the economic and social gains rise. Sweden and the United Kingdom have achieved more social equity and still maintained superior economic success. Why can't America follow the same model?

We cannot forget that the noble aim of democracy, so aptly put by John Stuart Mill, is the "greatest good for the greatest number."

We are dangerously moving towards accepting the "greater the profit, the greater the good." If we accept this principle, we will suffer as a people and our economic prosperity will mean nothing when crime rates rise, more of our people are uneducated and too many of us go without healthcare. This is a society, not just a collection of unconnected individuals. We must work to improve our society for all our benefit.

Amir Mokari is a Trinity junior. His column usually appears every third Friday.