Democratic Oak Tree

Let’s look at how two families of very modest means are making tough financial decisions.

The Reclessi family pays for all its purchases in cash and refuses on principle to enter into debt. Two older children are working full-time rather than attending college, because the family doesn’t have enough savings to help with tuition. The youngest child doesn’t have a regular pediatrician because of the cost. The Reclessis’ twenty-year-old roof has been leaking, and after they reviewed contractors’ estimates they decided to go with a patch rather than a replacement.

The Decentos have reluctantly borrowed money, with a plan to pay off the loans over the next decade. Their eleven-year-old has buck teeth, and the parents have decided to get her braces even though they’ll have to charge the orthodontist’s bills to their credit card. They already have a second mortgage because they’re helping pay for two children in college. They took out a loan to replace the leaking nineteen-year-old roof.

Which family is fiscally responsible?

How do the parents’ decisions reflect their moral values?

Which family is likely to be better off financially in twenty years?

The Decento parents enter into debt in order to make investments in their children’s futures as well as house repairs that will likely save money in the long run. As a result they’re making personal sacrifices—they’ll probably need to work past “retirement age” to pay off their loans—but they’re concerned about the long-term well-being of the family as a whole.

The Reclessi parents are proud of their “fiscal responsibility,” but it’s misguided. Their children’s futures are likely to be less financially secure without additional schooling. The youngest child’s health may be adversely affected by spotty medical care. If the Reclessis keep paying contractors to patch the roof instead of replacing it, they’ll probably end up spending more money. It’s possible that the parents will be able to retire at sixty-five, but their children may not prosper. If the parents run into financial problems later on, the children — in jobs that don’t require college educations —may not be able to assist them.

The people we elected to represent us are faced right now with similar decisions.

In January, our new Democratic President and Congress inherited an enormous deficit as a result of the previous administration’s reckless war, reckless tax cuts for the rich, and reckless laissez-faire approach to big business.

Now the economy has unraveled, with huge job losses, home foreclosures, falling tax revenues, etc. — we’re in the deepest recession since the Great Depression.

We’re in a mess, and there are no perfect choices.

Most Democrats are closer in philosophy to the Decentos than to the Reclessis. We hate seeing the deficit getting bigger (we’re proud that President Clinton transformed another Republican’s budget deficit into a surplus), but we’re willing to enter into loans now for worthwhile long-term investments, such as health care for all, college affordability, and public infrastructure. We’re concerned about the well-being of the whole American family and believe that investing now is the best way to strengthen the economy over time.

Most Republicans — and a handful of Democrats from Republican-leaning states —prefer the Reclessis’ approach: They refuse to invest in health care, education, and infrastructure if it means borrowing, even if the lack of investment is penny-wise, pound-foolish. They pride themselves on being “fiscal conservatives” with “moral values” but there’s more than a whiff of selfishness in their attitude. (Republicans never seem to mind borrowing when it permits tax cuts for the rich!)

Republicans fought Social Security and Medicare when they were introduced under Democratic administrations many years ago. Today they are fighting tooth and nail against a national “public option” for health insurance— even though it will reduce administrative waste and save the whole country money— perhaps because they worry about the profits of insurance companies. (Are you familiar with the Medicare prescription program, enacted by Republicans under President Bush? It forbids the government from negotiating with the pharmaceutical industry to lower drug costs…How “fiscally conservative” is that?)

If you believe that the Decento philosophy is a decent choice, please register as a Democrat and vote for Democratic candidates. (Don’t forget to vote in primaries, so that you help the best candidates become Democratic leaders.) Try to persuade friends who live in “fiscally conservative” states to do the same.

We the People have the power to elect representatives who will work for the common good—for the long-term well-being of the whole American family.