Local opinion: Let's share the wealth more equitably

Re: the Dec. 4 letter “Confused.”

In a recent letter to the editor of the Arizona Daily Star, ‘Confused’ expressed concern that many major U.S. cities have recently cut police budgets. He was factually correct, but other relevant facts were omitted, e.g., police funding had tripled during the previous 40 years without persuasive evidence the additional funding improved outcomes. Given this fact, exploring alternative solutions seems worthwhile. Another omitted fact is that budget cuts were often not reductions, but reallocations to address inadequacies in housing, education, job training and healthcare, which often lead to criminal activity. Policing is not the only way to promote public safety. Two takeaways from this example are: 1. Facts can be deceiving when considered in isolation; and 2. We should dig deeper before drawing conclusions.

Confused remembered fondly how things were 50 years ago and wondered what changed. Most economists consider increasing income inequality a major factor. Prior to 1975, when the economy was more regulated, all workers benefited proportionally as productivity increased. The tide seemed to lift all boats. But thereafter as government regulations decreased, low wage earners lost considerable ground. Productivity continued to increase, but the bulk of profits went to the wealthiest Americans, mostly business leaders and their shareholders. Not only did CEOs pay go up 98%, they took home more because their marginal tax rates were also cut by two-thirds. The wages of low-income workers did not rise proportionally, making it impossible for them to keep up with rising costs, let alone build wealth. Currently the share of U.S. wealth held by the bottom 50% of American wage earners is only 2.5%. The tide no longer lifts all boats. In fact, many are drowning. No one should be surprised that people who may not earn enough money to meet their basic needs are angry, disillusioned and might resort to crime. The real crime is that they shouldn’t have to.

We are a very rich country. Capitalism has driven our success, but capitalism combined with greed can have the opposite effect, as documented by Joseph Stiglitz in The Price of Inequality, Robert Putnam in The Upswing, and Robert Reich in The Common Good. It’s time we put conscience back into capitalism. It’s time to share wealth more equitably, as we did in the good old days that Confused remembers. It’s time to reinvest in workers and families. Pay workers a living wage and make healthcare and good education affordable. It’s the right thing to do and we can afford to do it. Indeed, we can’t afford to not do it. If we don’t pay now, we will pay much more later. We can build futures or prisons. The choice is ours.