Immigration Reform 2013: Reform Will Not Solve All Problems, But It Is a Start

“Give me your tired, your poor,

Your huddled masses yearning to breathe free,

The wretched refuse of your teeming shore.

Send these, the homeless, tempest-tost to me,

I lift my lamp beside the golden door!”

For generations the Statute of Liberty greeted millions of immigrants on their journey to the land of opportunity. Whether it was for life, liberty, or the pursuit of happiness, individuals throughout the world traveled to our nation in search of the American Dream. It was and is a simple dream: the promise that you will be judged on the basis of your character, and not on the basis of your race, religion, class, or creed. It is the promise that through hard work and determination you can achieve a better life for you and your family. This promise is what motivates immigrants, legal and illegal, to come to the United States. Today, it seems as though the American Dream is slipping away, but we as a nation can fight to reclaim it, and the first step is to pass immigration reform.

For those who do not believe economic inequality is increasing (and surprisingly, 58% of Americans do not), here are a few key statistics to help illustrate the gravity of our nation’s problem. Income inequality, as measured by the Gini index, has been on the rise since the start of the new millennium. Relatively stable during the 1990s boom years, the United States' Gini index has risen significantly since the Great Recession (1.6% in 2011 alone, compared to 5.2% in the prior 17 years combined). 

Our economic “recovery” exceedingly seems to benefit the richest Americans, while the poor and middle class are left behind. The top 1% received 93% of the income gains in the first year of the recovery. Poor and middle-class wage stagnation is a major reason for this. Deregulation, privatization, globalization, erosion of the social safety net, and the destruction of unions have all contributed to an economy that values corporate profits over rising middle-class wages. Corporate profits are 22% above their pre-recession levels, while employee compensation is 3% lower. The result of these trends is the dreadful fact that 80% of American adults will face joblessness or reliance on some sort of government welfare program. 

So you may be asking, what does all of this have to do with immigration reform?  Organizations from across the political spectrum, from conservatives to progressives, claim that immigration reform will benefit the American economy, and low-wage Americans in particular. Illegal immigrants and low-wage workers are in perpetual competition for jobs.  When an illegal immigrant can work for less than the federal minimum wage, this puts poor Americans at a distinct disadvantage. According to the Cato Institute, legalization of low-skilled immigrant workers would increase the U.S. GDP by 1.27%, or $180 billion, largely because immigrants are more likely to start businesses than non-immigrants. A Small Business Administration studyfound that immigrant-owned businesses tend to have higher sales and are more likely to export good and services than non-immigrant-owned businesses. 

The United States of America is a nation of immigrants that was built upon the millions of individuals who traveled here in search of a better life.  We need to change our immigration system to one that can fulfill the requirements of a 21st century economy. Reform will not solve all of our nation’s problems, but it is a start. It will renew a promise: the promise that together we all prosper, the promise of a thriving middle class, and the promise that America will always be home to the hardworking, the tired, and the poor, yearning for an opportunity to succeed.  

Dispelling Chained CPI Myths

Dead on arrival… When President Obama released his budget recently, Congressional Republicans immediately shot it down. This was no surprise because the budget called for tax increases, which Republicans vehemently oppose. However, I was puzzled by the negative reactions of a few Democrats; after all, President Obama’s budget included many progressive ideas, such as more stimulus spending. What could have caused such dissent from his party? Well, the budget called for the adoption of Chained CPI to measure future inflation; a move that Democrats and Republicans condemned as an assault on seniors and a severe benefit cut. 

Shifting to Chained CPI entails updating and improving the way the federal government measures inflation for various government programs. The government indexes benefits (such as Social Security), in order to keep up with inflation, so that both rise at the same rate. The government has not changed the way it calculates inflation in quite some time. Since the 1990s, Chained CPI has been viewed as a more accurate measure of inflation than our existing policy because current estimates overstate inflation and, hence, benefits paid.

This brings me to the first myth about Chained CPI. Chained CPI is NOT a benefit cut. Chained CPI slows down the rate of growth of social security payments. Seniors will not wake up next month and receive any fewer dollars in Social Security benefits than they are used to. Chained CPI would shave only 0.3% off inflation estimates or about $9 annually for the average couple that retired in 2010. Under Chained CPI, Social Security benefits would keep up with cost of living, rather than increase faster than inflation as they do now. 

In fact, moving to Chained CPI actually helps strengthen Social Security. By 2033, the Social Security trust fund will be depleted and will require a massive increase in the payroll tax or a 25% across-the-board decrease in benefits. As the Baby Boomers retire over the next two decades, more and more pressure will be put on the Social Security trust fund. The worker-to-retiree ratio has fallen from 5:1 in 1960 to 3:1 in 2010 and will only continue to decline, which means less revenue to support beneficiaries. In two decades, Social Security will no longer be solvent. Imagine the horrors if the checks actually stopped coming! The shift to Chained CPI will help maintain social security for current and future retirees.

Another prevalent myth claims Chained CPI is a hidden tax increase that will hurt the poor, the disabled, and the elderly. Chained CPI will slow the growth rate for income tax brackets. Individuals right on the cusp of a higher tax bracket may suddenly be “bumped up” into a higher one. However, it is important to remember two points. First, due to our marginal income tax system, only the small portion of above the threshold will be taxed at a higher rate, and second, Chained CPI should be viewed as only one part of comprehensive tax reform.

Chained CPI alone will not solve our budget deficit problem nor will it close the Social Security funding gap, but Chained CPI or a similar policy will play an integral role in any budget deal between Democrats and Republicans. The switch has already been a part of most major bipartisan deficit-reduction plans (Simpson-Bowles, Domenici-Rivlin, Obama-Boehner). Fix the Debt, a non-partisan movement to fix America’s finances, states that the switch to Chained CPI will reduce the social security funding gap by 1/5 and reduce deficits by more than $300 billion over the next decade.

Chained CPI is not just smart policy; it is also smart politics. Congress and the President can easily find a way to make this happen and doing so will prove that both Democrats and Republicans are serious about solving America’s deficit crisis. Furthermore, Chained CPI does not just kick the can down the road to future generations. It asks all Americans, old and young, Democratic and Republican, to be willing to exchange a small amount of personal sacrifice for a whole lot of societal benefit.                 

Chad Kolinsky is a graduate of the University of Miami and a blogger for The Can Kicks Back (www.TheCanKicksBack.org), a non-partisan and Millennial-driven movement to fix the national debt. 

The Future of the Israel Palestine conflict

            Today, the United Nations approved a resolution to lift the Palestinian Authority’s U.N. observer status from “entity” to “non-member state”.  138 nations voted in favor of the resolution and 9 voted against it: including the United States and Israel.  This resolution will not change the Israel-Palestine conflict, but it does allow Palestine to join the International Criminal Court and other UN organizations.  The Israeli government stated they would not treat this as a hostile move as long as the Palestinians do not try to join the ICC.  This was more of a symbolic victory for the PA and I do not believe they will try to further enrage Israel.             

           While raising Palestinian U.N. status does not create a sovereign independent state, it does recognize the universal right of a Palestinian state to exist.  With peace talks non-existent and last weeks conflict between Israel and Hamas, this is a very important wake up call to Israelis and Palestinians.  By elevating Palestine from an “entity” to a “state” the international community shows both of these nations that a two-state solution and peace process must happen. 

            The status quo of constant conflict will not be accepted.  As U.N. Secretary-General Ban Ki-moon stated, “Israelis and Palestinians must break out of a zero-sum mentality, and embrace a peaceful path forward.”  Both sides need to understand that they will NOT receive 100% of their desired territory / demands to achieve peace.  In the end the prize of peace will be great than any concessions by either side. 

            I believe the United States was on the wrong side of this symbolic victory.  Think of the message the US would send to Israel if it stated that the Palestinian Authority is not just an “entity”, but also a “state”.  As Israeli’s closest friend and largest supporter, we would say that the peace process MUST begin again.  It is exactly the kind of wake up call the Netanyahu administration needs. 

            Unfortunately, in America’s highly venomous partisan atmosphere any criticism of Israel is branded as anti-Semitic or anti-Israeli.  The United States supports Israel 100% and only wants to bring peace to the nation / region.  As Israel’s “best friend” the US should be in the position to provide constructive criticism.  Instead, officials like President Obama have to constantly claim their support for Israel, because others complain that he does not stand behind EVERY action Israel makes. 

            So what about Hamas?  Today Hamas reiterated that Israel does not have a right to exist.  How can Israel negotiate with an organization that think it should be wiped off the map?  I argued that Israel should not negotiate with Hamas.  Israel should create a viable peace plan with President Abbas and the Palestinian Authority.  If Israel and the West Bank can reach a two-state solution, without Gaza, it has many beneficial consequences.  First, it will show Hamas that NOTHING will be achieved with violence and constant wars.  Second, it will bring relevance back to the PA, Abbas, and the West Bank.  Many pundits claim the big lose in the recent Israel-Gaza conflict is the Palestinian Authority because the conflict showed how irrelevant the PA is.  It is time to MAKE the PA relevant again and begin to negotiate a two state peace. 

            Now as for the two state solution, who says there has to be TWO states?  Imagine one federal state encompassing the lands of Israel and Palestine, compromised of two states, a Jewish state of Israel and an Arab state of Palestine.  Israel and Palestine would have their own parliaments as well as a federal government.  The federal government would force both nations to work together on issues they can agree on. 

            Now I know this is completely hypothetical and will never happen, but the point of this exercise is to get back to the peace process.  True peace will require concessions, compromise, and innovative ideas from both sides.  All I know is the status quo is completely unacceptable and if the international community, United States, Israel, and Palestine do not take this opportunity to forge a lasting peace, then more generations will grow up believing peace will never happen. 

What did all that money buy? An argument for campaign finance reform

            This election cycle was the most expensive in history.  Candidates, Super Pacs, and political parties spent around $6 billion on federal, state, and local elections.  The Obama and Romney campaigns spent a little under $2 billion dollars combined.  In the post-Citizen’s United era the media-political industrial complex flourishes like never before.  A majority of the spending bought TV ad space, especially in the swing states.  I spent one weekend down in Miami and I saw political ads every commercial break.  300,000+ ads aired in Ohio alone.  And yet what did all this money by?

            Sheldon Adelson, the godfather of Newt Gingrich’s campaign and single largest donor in the 2012 election, spent over $50 million.  And what does he have to show for it?  Every candidate he backed at the state level lost, except one (I believe he lost 9/10) and Sheldon contributed $20 million to the failed primary campaign of Newt.  Too many $50 million is more than we will make over many lifetimes, but it is pocket change to Sheldon.  He stated he would spend over $100 million to defeat President Obama, so by his standards he went cheap this election cycle. 

            Karl Rove was another grand spender of this election cycle.  He planned to defeat President Obama and win back the Senate for Republicans via Crossroads GPS and American Crossroads.  These groups spent over $300 million combined!  And once again I ask, what do they have to show for it?  Democrats actually gained seats in the Senate and by any metric Karl Rove, Crossroads GPS, and American Crossroads were failures. 

            So what did we learn from this election?  Money cannot buy victories?  The consequences of Citizen’s United and unlimited political contributions by corporations and unions were overstated?  Some people are making that exact argument; that this election cycle shows we don’t have to worry about campaign finance reform and political spending. 

            However, if this election has shown anything, it is that individuals and corporations will spend exponentially large amounts of money to help the candidates they support.  And it just so happens that the most fervent contributors also possess the most extreme views.  As Democrats and Republicans have moved to the radical left and right, the last thing we need are more extreme candidates. 

            Today it is way too easy for a Karl Rove or a Sheldon Adelson to fund a campaign against a candidate he does not agree with; or for Grover Norquist and American’s for Tax Reform to fund a challenger to a Republican Congressman who did not sign the Taxpayer Protection Pledge to not raise taxes - under any circumstances!  

            These are not the candidates America needs.  We need more moderate, bipartisan candidates, and not for far left / far right candidates who refuse to compromise.  And we need 3^rd party candidates who have real chances at winning elections.  So until I start to see billions of dollars spent on independent campaigns, I will argue against Citizen’s United and for campaign finance reform. 

            The real loser’s in the post Citizen’s United era are the American people because more political spending leads to more extreme candidates, which leads to less compromise and governance, which leads to more cynicism and punditry in the media, which leads to more political spending by radical individuals.  

The election is over!! Now what happens...

            The election is over!! Thank God!! If I saw one more ridiculous political ad on TV I might have puked.  This long, bitter campaign feels like it took forever.  Obama and Romney were campaigning since the 2010 midterm elections, if not earlier.  And people wonder why our Congress and government get nothing done?  In England candidates for Prime Minister campaign for 6 weeks and in France Presidential hopefuls campaign for 3 weeks.  Unfortunately that is not how things work in the United States.  Our media thrives with prolonged campaigns.  Just imagine what they would talk about on Fox News or MSNBC if our campaigns were only a few weeks! (Heaven forbid they focus on real news and informing the electorate rather than fear-mongering and partisan politics.)  Imagine what our leaders in Congress could get done if they didn’t have to focus so much time on fundraising and getting reelected. 

            Luckily for the American people the campaigns are over and the elections finalized.  Now we can finally focus on solving America’s problems.  Now is the time to put aside partisan politics.  Now is the time for the sacrifices and reforms that America needs.  And now is the time for Congress to give us a plan for the future, to lift the uncertainty of the fiscal cliff, and to allow our economy to flourish! 

            The election night rhetoric sounded promising.  Mitt Romney urged his supporters and party to work with the Democrats.  Barack Obama spoke not of red states or blue states, but of the United States.  Harry Reid offered his support to work together with Republicans in the Senate.  John Boehner said we must raise the bar and offered the President his help in garnering Republican support for increasing revenues as long as Democrats are willing to decrease spending and reform entitlements.  It seems like a grand bargain is coming after all!

            But all this sounds familiar to the 2011 debt ceiling debacle that created the fiscal cliff.  We hope this time ends with real reform rather than childish finger pointing.  So what did this election change you may ask?  Well not much to be honest.  President Obama was reelected, Democrats still control the Senate, and Republicans maintained their majority in the House.  This was a status quo election; even though, almost every American isn’t happy with the status quo. 

            My hope is that the message has been sent to our government.  They must do something to solve all the issues our great nation faces.  As I have stated before, the only thing holding back the United States is Washington.  I believe the economy is ready to take off.  Corporations have the cash and the desire to spend and hire, and they just need a plan.  Look at any consumer or housing index and you see that the American people are regaining their confident in the economy.

            So the ball is in your court Mr. President, Senator Reid, Speaker Boehner, and all of our elected representatives in Washington.  I urge you to listen to the people of our nation and put aside ideology and politics.  Put aside egos and agendas.  Put America first and work together to help us prosper once again!