Memos to the New President by the Progressive Policy Institute

8/2/2019 Memos to the New President by the Progressive Policy Institute

1/233


2/233

T Ctt | iii

Table o ConTenTs

oreword wi M M rii 1

I IxIng our broken PolITICs: an InITIal sTeP 5

1 rmi Ci ecti, e ki 7

II new oundaTIons or shared ProsPerITy 13

2 smt rti ici Mt, e a li 15

3 bii amic 21t Ct Itct,

Jic Mi 25

4 Ptti amic Tptti stm Tc,

P witi J 33

5 a Piv i sci scit, rt C Pz 41

6 m T Ct t T rm, P witi J 49

III resTorIng The ProMIse o soCIal MobIlITy 57

7 a w b M, kti McMi Cmp 59

8 Ci t gti gp, d r 65

9 ei Ci h i amic,

J b Tm m 71

10 Ivti i e ecti t gt,

l a kti McMi Cmp 79

IV uelIng Clean growTh 89

11 Ptti e i t wit h, dv e 91

12 e ecic ecmic stim,

di l s, d k M, sm k 97


3/233

iv| Mm t t n Pit

13 Mi amic t w C-C l,

J Mz 103

14 etii g evimt oizti (geo),

J Mz e g 109

15 amic nc wt wt t d wit It,

bi M M rii 115

V new desIgns or naTIonal seCurITy 121

16 Cti nc- b, s ev b 123

17 acivi Pc Ppit i t gt Mi et,

e g 129

18 Ti naTo g, wi M 139

19 nti scit Pi t l Tm, Jim ai 147

20 a nti scit Ct, hv rii 157

21 rmi d acqiiti, J Tm 165

VI aordable healTh Care or all 173

22 ht rm tt P It, dvi b k 175

23 Impvi ht Cb spi t M

(t M Ciic M, Tt I), dvi b k 181

24 ht Ct Mic Jtic, dvi b k 189

25 a Mm t t n Pit andt ntigv: rivti ht CT r

t stt, dvi o 197

abouT The auThors 225


4/233

| 1

oreword wi M M rii

M Pit, cti ttmt t ct mz-

i cpciti -ccti ivti T ti

qiti v mit tmv t mmt t

wit ct mi i i cmic cii, ami-

c c t pitic pctm tt ppti ti i t c T cmptc

cmit, i ic pp c c ivi t ti t

t t c tim

T pp ti i t citiz m

ctctiv i c mt t c It i ccti

t pic pic t Piv Pic Ititt (PPI) pi

Memos to the Next President tti t sptm, c t pit o cti t t

titi, ti it t pt tit Memos to the NewPresidentcct 25 mm i vm tt pct cm-m t ttti

T tt, t i ctitt piv , tt

iv i ti citt it vii tci tt-

i, i citi, vi i piit icpmtim

Ti i i i i t titi PPI Mandate or Change(1992) Building the Bridge(1996) T i vm p tt pic ivti tt Pit Cit mizi

i t 1990 Ti ccti t t ctiv ctiti

i t pic pt It fct PPI i i t

p i t vcm t c iti, ti, pti t- tt ct c

w t m t vc i t vt Ti

t t m c tt tt v i PPI :

q pptit pci pivi ; ci cmpct


5/233

2 | Mm t t n Pit

mt piiit civic cipcit; t vi -

iivi it t m

w t piv titi i amic pitic t cti t-

t pp mi c cic i i i t it ci

cmic ci citi at tim ctit t -

ci mt, Mi stt, t itti cp, t

miz ppc t pic vc i t it v

y v c tmtiv c, ti i it

c i mi it pp

Memos to the New Presidenti iz it i mi pt, c icpti t c ci miitti ct

w tt i pjct mt c mt tt

ci mt pitic tm amic cc i

wit c rti tt i t ic itit

pm-vi cpcit vmt i t iipi

pqiit pi m I i mm, e ki ctiv

pp ci t p pci itt i wit ti i pitic cmptiti i ci cti

Pt II t pp it t m t mt t t-

tiv c c: vi amic -tpi tm m t

mpi t iit t m ci cpt

y i vic m g li, m Cmp-

t t Cc, ii t m t tiiz

us ci mt ot mm v i timti ii cm; ii t ti i tptti itct;

vi iv t c; ci t itti

cmpct m i sci scit a t pcipti

mpi vivi mic, tpi cm tt c c

i iv - ti ppit

wi i t cc t mi c mt ct t

cmic pic, mt t t p -icmamic t t mi c i t t pc Pt III c -

vivi ti pmi p ci miit Ti cti

t t i pcic pcipti ci pi-

tt p i cti ttimt It p i ii -


6/233

| 3

icm m it t c, i t c ci

i t tit ti et

Pt IV pt tti ii c- cm -

ti amic ip i tc ivti b , t

i c t pici tt c t-

vimt, i j , m pc

i i T mm pcic p ccti vpmt

c c; i t cmic t cic; c-

ti it t pm c t; cti it-

ti t t cpti cimt c t tt t

t cmm

Pt V ti c piv: pi t

c, ci picip ti cit i pic s ev

b pp nc b t c t p c mti

tc ot mm c pi cmic t p-

ptit i t gt Mi et; mizi t ccpt cctiv

cit; mi t miit cqiiti pc; tii tt -c t miit civii p; tii itimt

m ti tit pct

i, i Pt VI, v it mt vi mtic c-

: t-c tm tt t -vt ti

t; imp ci t pic pivt ct;

v m t 45 mii i T mm t

mt ci ct ii qit T m PPIti ppt cvi amic, i ti tt

m c p it T it i-pt i dvi

o t ti v c ji c it t -

vmt t t c mic ifti ti tp

t cti itict amic ppc t iv t c

w i t cc ti PPI c, ptic

di b, bt k, T st, Mi b, aic Mck Mi V w t t it ctit t ti c-

cti T mm i t p tt t m ic t

c tmtiv c t tim ct c ti

c T t cti pi ti ti i t


7/233

4 | Mm t t n Pit

mt t c i piit ctctiv piit tt tc

t ti iic iticti t pt, t t t

mt ti cct


8/233

| 5

part I

IxIng ourbroken PolITICs:an InITIal sTeP


9/233


10/233

rmi Ci ecti | 7

TO: T n Pit

FROM: e ki

RE: rmi Ci ecti

I

t 2008 cmpi pc c m-

i mt m t amic pp, it i

mt c i wit r

ti piti pc, mjit vt

p it it m-mi ptiip,

pci-itt tctiim, t p it

t vt t cmm

Ti cvc m c, c t - pti iic i, pvi c p-

ptit t vcm t c t t it

t itict pt t vti t t

ccmpi Tt i I t m ci

wit t piit pit

ovi, v m t c cmpti

tim ttti: ii t i Iq t


11/233

8 | Mm t t n Pit

ccpt cci, ti cm, t

ti bt i pic ppt mtic c i wit

pitic ct i p miiz ppt v t tp t,

it i impv t cc p ttiv m

spcic, i ctii cmmitmt t c cm-

pi t t i t p it v wit b

ci vt pic ci ci cmpi

v tp t vvi tt i i itiv -

ctiv p m pic cii-mi t pivt cii-ifci

sc ict t pitic i p-mpt t ti i-

vit mi t-i tt , i pt pit, ptti i cm-

pi tic i t jt t t iti p i wit

pit vi t t ippit t pic mi pt-

cti mmtm

a m iititiv mt, c, ti t ci a t-

p ttc m pptt ti p t t p

t cmm i t t mt ci v t p

1. Public Financing o Congressional Campaigns

wit C ppv ti t -tim , m iv i

mm pt t m tt, i pvii

mm m t t pt it i tt ti cmmitmt t t

m tic m mc i t 2008 cmpiwitt qti, pci-itt cmpi ctiti t mt-

mi cpti, tctiim, ic i C a t ct

pitic cmpi pti, t pc c-

i cit pci-itt

Ti , t mt ict m mt pci-itt -

iipitic cti cmmitt (PaC)ctit t $4 v

$10 i h cit, t -ti i st cit (t m iict i ci

icmt i -cti)

spci-itt miti pt-cmmitt ipt-vc-

c ti (ici t ici imptt ii c m


12/233

rmi Ci ecti | 9

t -c 527) iict Mv, t ip pc-

tic i m it ici pi t i tc iivi

ctiti t ptic itt c w ct i t ti-

mt $28 ii pt ci i ctiviti t ,

it cm t ppimt $5 mii p mm C

rct spm Ct cii v i ci t-

tmpt t t ctiti pit imit o tm pic

ci ci cti i cp i t cpti

m ifc

wi vit m vt pic ci v -

vc v t , t c m/c cti m, i

ict cit ii i c tict pit imit, i t

t vi t sv tt v ct viti ti pp I

t t tt it t mt cmpiv pic-ci tm, ai-

z Mi, pticipti i t tm cit i ti

v tim, it iz mjiti tt itiv cit i t tt

ci pic ci i 2006T t ct iti pti t c m/c cti

m t ci cti i t ipti i c-p

s ric di (d-I) a spct (r-P) ai m t

ic i i pic ci t ci cit

i t pit imit, ti i pvi ict -

ct tvii t, it i t t t ipt

pit cmpit ci ( t t ii) tt p mii t pic-ci tm pi-

ti cmpi

Ti t pit i ptic imptt, iv t mt tt

t i t cmpi v t piti pic-ci tm It i

tim t c tt t piti tm t-

t pi imit t ipt-pit p bipti

iti m s r i (d-wic) s Ci (r-Mi) t pm, mit ppt

sm cmpi-c m ti t i p tt Itt-

m ti mit pt ttiv m pic c-

i Tt m t, t t m- vti mi itt


13/233

10 | Mm t t n Pit

m i ci cmpi: Ti , t 10 pct

ci ctiti m i mt $200

I vt, vt pic ci m- ii

cmpmt, t mt civ a ci pic-ci

m c mpt v m ctiti, cit pti t

pic ci i t i m civ m c ti

c m c

h i t viti t c cmpi tm, ctiv

pp a g m i t 2000 piti cmpi: It

mi ctiti ict t cit, iivi v t p-

ti ti m t dmcc emt tt c

ci cmpi T civ t cit v t

ctit t t emt Cit qi m i t

t t ccpt t c i t imit ti v

cmpi pi

T t t vt ic cit c ti cm-

pi, t emt m c m tt pticipti ci-t v i t cmptitiv Ti iict tm pic

ci ti vt c t i c-

titti i

wtv ppc t m c, t imptt ti i t m-

tt v t v t i t pic iti pivt

cmpi ti

2. Redistricting Reorm

Cmpi ctiti t t p tt mit im-

mit ttti T t pitic mi, t vt mjit

us h mm mi cmpt it m cctiit t t

pic i mi T t ci i t m cm-

ptitiv ci c i ct cm i cev i t v cti 2006, ic m i-

cmt ci vi c, 86 pct h mm i t c

i cmptiti, 95 pct icmt T -

i imp : Icmt ptct m cmptiti


14/233

rmi Ci ecti | 11

itict mp tt v pt v t t ciiv mi, i

p ctt t t pti c tt cctiz ti pitic

v t t c T m tt, mm C

ci ti vt, t t t v

ai m t it timctic t tm i ic pi-

tici t cctiit t vt, m ti (ici

i i ti t dmctic lip Cci1) v

cmt t pii ct tt cmptitiv ci c-

ti p vt itt pticipti

T t ici i ct t t ct i-

cimt vt iv i -tt tt i piti

cti bt v i pct vt ctiv i-

ci i h c cc t cc, t t iticti cm tt

pvt cmptiti

bc t cmm pctic i itict i t mtip

mi mt, mi ctit t t i ( cpti-

ci) ct ci cmpi, v i t itict tt cmptitiv tm, t i imp t m t c-

iv impct civic mt cz-qit itict tt ccpt

ctiit cmmit itt Tt i ptic t i

mtpit cit mtip t cmpti im-

t t iv

wit t t ci pptimt iticti

t i i t tm pit, t tim i ip t p i-ticti m bt i t tt i wit, t pti i

it t m ptt mi t tm ti vt

a vt i t t it v ti, tt--tt itict-

i m t v itt ppct cc

tt, iticti m it pct t C ( pp

t tt it) i i, ic C p p t

t it iticti rp J T (d-T) tic it-c iti qii tt tt tiiz ipt cmmii

titi iticti picip (, cmpct cti

itict) i i ci i (s Tim J, d-sd,

itc st ctpt) T i t i mi-


15/233

12 | Mm t t n Pit

c -iticti tt t i t 1990, tti t

m iticti t

M m t iti tt m

cmptitiv picit ct i ci iticti, it

t i pc m ctmpt rp T J bt

t t mi t jct pitic vi i ppt m t

ppit t wit h nti m c i

tmiti t pt pti citi i t

mt c i t ct cpit t i-p t

iticti m, ptic i it i cmi it c pic

ci ci cti

Conclusion

Ti i t t t tt pt i v t piit t

iititiv t c C sc iititiv, v, -

c pi ev i t cc i cti pic -ci ci cmpi, m ci iticti

tt t cmptitiv cti, it i ti t t t Mi ic

m pitic tm ctpic miitti

iiti i p miti t mmtm m cmpi,

p it it t vt vi t c

Endnotes1 dm, Mc, gmi t Vt: h dit dz stt spp

M 9 Mii Vt, dmctic lip Cci, J 2008, www.dlc.org


16/233

| 13

part II

new oundaTIonsor sharedProsPerITy


17/233


18/233

smt rti ici Mt | 15

To: T n Pit

From: e a li

Re: smt rti ici Mt

o

vmt ppc t ci-vic

ti v t t it

pctc i, ii t uit stt

t t t i ci i

T ct ti di 2008, amic i-

vtmt-i it t ipp t

i, c m, cvi t i cm-

pi T ct mt-i it c-p amic t ic cmp ti-

iz t vt it i

o t t vmt-p tpi, -

i M i Mc, pctic pp i

v pc t t tt c-

t T t ct 10 t i izti

c t m, i ti ipt itc


19/233

16 | Mm t t n Pit

T mii i t ci cmpi pti tiiz

a t c i t v

T m i tt c ti cfti: t c iqi-

it tct cit tt t us vmt t ami-

c cm t iv ti m; civ v i

cm, i ivt t pp p ti it

pt; cmp mtmtic mi ci tct tt

t itt t tt; -qit i pctic tt v

p ci-ititti pt t t p - mt-icm

amic

a v pit t, M Pit, t tm i mi

t t ii tm t im tt

iict tt ti t ci ipiiit

o ct t t pim t ti c-

c i ci tm t pt i pc pvi tct

tt p t pvt cc t -c ititti i

mt mt t i v jt picTi mm pp c pim it ti t ct

tm mt ci ti tt i tmi, cmpiv,

cciv t cmic cic t, piv t t

t amic pp

A Brie History o Financial Regulation

T b miitti ppc t ci ti pp t v

t i mpti:

it, ci-mt ti pvii t m m

t It ti mt c tt pvi ivtiv pct

vic tt p cmic t

sc, vmt itvti i mt t ptct it iivi-

ptic - mt-icm amicm -t, t i, i ct, ctpctiv Ivt icipi t mt-

pc t a it, ti-ci vi mt pticipt

t vi pic, t mt vt i pi tm

Ti, i, imc cc, t t c -


20/233

smt rti ici Mt | 17

v tim ii iqiit it t mt T piic it-

vti t ct t t qiiim

Ti cti t miimim p t i amic i-

t It c t t ci , t C t i ei

t cti ipt cmic ctivit i ti amic

pi sc cctti ctizti p jct

pic, ic t t ci ititti t fi it

itt vmt pvii

It t t c t -c ict i ( t

pitic icti ct ci t Civi w) tt Pit

lic t m v ti t t mtpc h

i ti it t itcti t nti bi act t nti

Cc act i 1863, t cti ti- pvi i t

oc t Cmpt t Cc

i v cc cmic m t, t t c

1929 t ti i t t n d ci c-

t ci t t T t ivti ct mt c pvii ct t , -mt

mim t t T t mt cc, ti t

t ci tm, pi m t -ct t-

iit t

T n d t m, v, t i t pt-

c v c o t t, tcic c

izti p t cpit mt m tm m piti-ct T c v ci tpi t t t

c cmptiti m

C t m, mpi ifti (pci t t Vitm w)

vmt t i itt t imit t cii Ti ct

ti p i t mtic ci it mti-

c cit t cmptitiv cp

Ivti cci ti t tict t mp,cti tp citi ctivitiit v it

vic t pctic imp tm t t i i ev

t i piticti, t tmv i m-

t vpmt


21/233

18 | Mm t t n Pit

T c i mic mtpc, cmi it tt

p i t t tmmt t cti -

hm l b bi t ti t vi--

cii t t 1980 1990

C t wit h p ctiv t t ipti,

tii t rti Tt Cpti ivi i t c

tiit t i t 1990 hv, t Cit miitti

ttmpt t ct m cmpiv t tct

mt tmi m, it t cpti mt cmt

t vi i cmpi

ot Cit- t t p t t mic mtpc -

t ci ct t ppt i cmc m

t g-st act mv t piiti ittt i

, v it c t tct, t t i

pc i ci Ti t i t Cit

ev it t ict t ti , v, t tm

tim pi pnt t m i cmi, t t i p

mt pctic Cim a gp i t t 1980

1990it pvii ctc mp iqiit

i tim t t t ic Ti mt--t

mit cm m tc m m t b

miitti ti t

I ct , tiv m pt t ci-vic ct cmpiv t, mc ci ctivit c-

ct t m ( v m t) vic

, t iti t v t ci m

mp, cpit qimt i cmp c

cpit it Ti i izti t c ti cpit

iti pti ci ctiviti t i cmp -

it I m c, t -c pci ivtmt vic ctt itmt i v ctiz t iti

T t tt t t it t ct vic

i, vi tt pv t icct t mv t

t t ti c t t c t


22/233

smt rti ici Mt | 19

T b- t vimt t , -

-, ic cmpi t ct i tct, -

t itmt c cit-t itt-t p tt t

t t pic t m tmv T ctcti ti

c i tt ti ci tt mi

t t sciti ec Cmmii, t t m

ti

utimt, t v-m- t mtpc ci

vic pi t ct t t mt

t pct-c i p pti

arM (ptic tm m jt-t mt)t

t pic

n titi vtii tmv mt t t

t tc- citizti Vmtic, ici ici

tm it tc, ic ptimitic t t ivt

v t It i t ti tt i t t ti -

tm t ci cmpi, ti pctic t im t vi i mp m t tpi

T t mtp, civ v iqiit pvi t

ii t i, t ivtivctc t

t ci t ptic t ct vt

p

The New Regulatory Paradigm

sc t ii t m v iit T t pic c-

c i ci tm, pim tt t t

t tm iz-i miimim -tt vi I,

c t m m pv ptic imptt t ti jct i

amic it, ic i v t t pic m t mi

tiiz tm c c t -mt tm Ti c i pic tt i -ti

y v pmi t pt tt it tm ci-mt -

ti vit a cmic tm t ct it ppc, it

p i mi t vci tm


23/233

20 | Mm t t n Pit

it, ctiv ti c civ i it icpt ctiv -

pvii sc pvii i -tim, - miti

t ci ititti m mt i aticti mi-

ti i pit ci i t t impmt it vi

sc, t ct ccpt ci -

ti T t m g ti cmp t t

pti ci-vic m (mi pt i-ti)

t pti c titi (mi i ttmt ctm)

Ptic i t i itcct , ptti mtt,

it i t imi tt ititti c pt it pt

tt it ctm i

T pt 150 amic itti ci it v

tt tt i i t tm c t vit

qc pic ci h v picip mt -

ci ti tt I p i i t t tiiz us

ci ititti mt:

1. Comprehensive regulation or all, not just some. o pt p

mtip ci t ci pmitt v t it-

mii t c m t ct t mt ccmm-

ti vimt i ic t pt T tiv itit-

ti vi tmv ti i t it, it viiit

c m t t p ti pc a ci itit-

ti mt cmpiv t I m iti-tti t t t, t tm i t

t it, i t , t t t cmm mit

tm, t tt t ti v t

vi piic ctiv rti t

t it c t ttic imp c t

-itti t mit T, t t -qi t tt piic i t ctiv ti

pvi pctic I, it mit t t v t

pctic it m tim t tim ti ptpp v

-vmt


24/233

smt rti ici Mt | 21

2. Counter-cyclical, not pro-cyclical, regulation. ectiv ti

tit i t icti ct-ccicit Ti m tt

tim , v (t mi ci cmpi pt

i ) cpit i Cv, tim ,

v m , t cpit t cit v

tt it t t ic simi, ccti pic

t p-ccic, mi i pp i t

t t cmic citi ii ictt accti

t mi, t ivi, cmic it It i c i

t ct cc tt m-t-mt ccti (i ic t

v t ti ct mt pic) t t

mi

3. Regulatory burdens minimized, bright lines preerred. rt

civ t t t m m pi

hv cmpic m i ct cm

t t tt tt t miict ci ctiv m ti mimiic v mi t t picip

tt ti i pp t i I , it-i qi-

mtc cpit ti tt iv m t mic t,

t pctiv m mc pi

4. Strict limits on the use o leverage. eciv v c ci

m t m vti, t mt qt cpit c-tp ci-vic ctiviti stti t it cpit t

(t mt cpit ci m i qi t pt i v t cv

pi ) i ict Cpit qimt tt t i c ct

i p cmic ctivit Cti, it ctiviti

it it i cctitic ct ii cpit

T i mizti i it pct t cpit v t i vmt tm, cpit qc i t

mt imptt t m t imptt pti

hv, it i c tt t ppicti t b II cpit-qc

t seCic 40 t 1 v, cci,


25/233

22 | Mm t t n Pit

tm cpit qimt ivtmt i

Cpit qimt 6 pct tt t i-qit

cpit (t -c v ti) 10 pct tt t

i (mt qit cpit) c t t m

5. More and better regulators. smt ti vit qi

m t, it qi tt t ti pi

It i tim t piiz ti pvii; t, c

t c i mt vti cpt ti pvi-

i sic c t i t t it, it i imptt tt

miitti c iviti t ct t cmic

pm t t t t v i ti, p-

vii, i miti

6. Better coordination with other governments and agencies. I

cmic ct izti m m impct t

i c wt pp i i mt v-t t yt, cti t pt iz -

t tm, t itti iti t uit stt

ec ep ct it t tm, t eu

p it mt ; i t uit stt v

t 50 tt t rt mti i t uit

stt itti m p, t v t mc T--b qit t tm t ti mtipicit vic ev tti

us t t cm t it pim ic t ,

t ti civmt t t imt m

t cci T cit i pti cm

-i, t ptct t tp m t it, mt

miz itti t cmt

7. Regulation that serves consumers and communities. smt t

t t i t t t cc, t ti t cc

t cm cmmiti tt t i v Cm-

pi ipi cc t ci ; ci


26/233

smt rti ici Mt | 23

t t vt ti ctm; t tt ti

cmmiti

I ti t ci ct, t tt it

iz ititti t pppit t t mt

t t cmmiti t v mp, it i imptt

tt ti t cm m imiti m m, c

cmmit- ci ititti mp, t

cpit b II pv t cmp m cmmit ,

v vt , pitict ev i ti mi

m, t ct pi tt i m v

Conclusion

T m t miimim i ct i t

picip it, it i t cit cmpiv; it pti t ci vic t it t -

t sc, t ct pt p ci vic,

t, c i mt itii t t pic; c

t it; t i cm t t

i i; t ttcti cit m tt

pp t pvi m cmp ci cmpi, it-

mt, mtT ci mt m t c-

t mmtm i c M Pit, I p i ct

pim mt ti i t t cc i

ci tm; cc it tci t civ i i pit t-

iz i; t it iit t t t v t pp

ti ti


27/233


28/233

bii amic 21t Ct Itct | 25

To: T n Pit

From: Jic Mi

Re: bii amic 21t Ct

Itct

I t t-t-itt pt, t uit stt t

ipt i pic itct

o t ti it t t ipt; t mt

cmpiv i t; t mt pitict

cmmicti cticit i; tiv i-

ttt-i tm

ti amic, t i, ti, ipt m iit, ppit, c-

piit bt t fct mti v p:

ti cmmitmt t iivi m imit

iz

T, ti vt i ippi o c it t

i t pctc i i i

v, t i t -t- i ttc


29/233

26 | Mm t t n Pit

tc, pt-i , cti ipt, t vt ttc

ti ti v vc tcmmicti t

a t t pt i ic v i t

vc ti a amic tv i ct t wt-

ep et ai tic t impvmt t i ti

v m: t t it-cit ti c; t tt--t-t ipt

Ci Jp; t i cci i-it Itt ccti

st k

T t amic tv cm m t t ti amt,

t cic k aipt, t t i-p I-

tt cc i T v ct i imiti amic

miit, t pic ci It i cticti ic it-

t v

Ti i pic c i civic m, cm-

ic t, , i m c, v tt t t I t t amic

mvi i, miitti t C i t m

ivtmt t v ti ciT mt tit pti ti i i c qt

i us pi itct, pct g dmtic

Pct (gdP), ci 50 pct ic 1960 spi t i

it t t cc v, qit it,

t

wi t amic scit Civi ei (asCe) timt t

uit stt i t i $16 tii jt t pi miti iti itct tc,1 i tpt cmptit

T uit stt i ct ivti itct pct-

gdP t ep, Ci, m mi cmi I tt,

mi cmi i t p $12 tii itct

i 20082

amic p t 2 pct gdP p itct

ivtmt (ti ic , tt, c, pivt-ct pi)b ctt, tt m i t 5 pct i ep t 9 pct

12 pct i Ci3 I vp cmi, t v i t 3

pct gdP, vpi cmi it i 6 pct wi

t uit stt i ti t m t i it miv pi i, t


30/233


cti ppi i ivtmtt ii t cmpti-

tiv p t amic t t t

U.S. Competitiveness Gap

wit t cm mpi, ct ii v tim, pivt cpit

i ivtmt pptiti, itct pjct c t

cmptitiv ct j t t m tim M ti

v pit t pitiv cti t c ivtmt cm-

ic t4

ecmic v t t 20 v ttmpt t qti

t t, v cm p it i timt p-

i t pt amt t , v,

tt pic pi pc pitiv cmic t5 a

ct w b t v timt tt t it citi,

1% ic i ct itct tc i cit it 1%

ic i t v gdP 6Itct i tptti (i, , i, t,

i), tiiti (t, , cticit, tcmmicti), m t-

pic ciiti c c, pi, t pt tm I t, it

i t v, i, mc cm cit w t

t tm t ti , it i impi amic

t pt t t

I t t t pm, t t tuit stt ct p t v I 2004, $400 ii

pt itct, ic t vmt pvi $60

ii, 15 pct t tt stt c vmt 42

pct, t pivt ct cv t mi7

wt i imptt t i tt t t it i c-

t t p ti m v it ti mp,

pi i mit tptti 50 pct uc smitct pi t i stt c vmt

pi i mit i, c, t, ic tt c-

ct 80 pct t tt--c ct $175 ii pic-

i Pivt-ct itct pi i mit


31/233

28 | Mm t t n Pit

tcmmicti; t t pi cti cct

80 pct pivt itct pi8

dpit ti ct pciizti, t i c mt t

t ct pi itct i i jct

t ti t i cpti t ci p

a ti m it c ict t i pjct

tt qi tim iz v t ti itt

stt c pjct tt p c t ppti

cc v ct v c cmic citi tt

m it ict t i ev t pivt ct, pit t t

mt cic, c t p pptiti, c -

c, t ct ti mi ci-

pt

Untapped Opportunity

Pic ivtmt i , t it i c tt vmt ct, t, t a it pp, pivt cpit iv-

t i-qit ivtmt pptiti t t cp

mt-c citi t tc i t qit mt

I p t ti mt m, pivt qit m

v i t ivt i mj itct pjct acci t

Mcki & Cmp, t 20 t pivt itct

v $130 ii mmt, it 77 pct it i vt t t 9

Ti pt m pptit i itct

o t iz tt pptit i t ct amic vi

t ep Ivtmt b (eIb), ic -ct tc c

cc i ci pctivit-ci pjct

T eIb t tm t 1957 Tt rm

t -tm i ititti t ep ui (eu) T eIb i t mm tt t eu, m iiti ctiti t

t cpit-v cci t ti tiv gdP oti,

t i -ci, i t ci mt t i

, t t m t eu t T eIb pt


32/233


tm, i -pt, m i cii t

i ct citi:

Ivtmt mt p civ eu jctiv;

T ivtmt mt cmic, ci, tcic,

vimt ;

T p ttct t c i (t eIb ct

m t 50 pct t tt ct iivi pjct)

bc t eIb t eu mm tt, it t ci t

it pi cit ti (aaa) t m mt, i it t

t cpit v cmptitiv tm b m m i-

t ti vmt wi pmt tm m v,

mt pi c t t

I 2007, t eIb i 55 ii t cpit mt m tti 478 ii1085 pct ic t t t

impvmt t eu ipt, i, i, i, t vit

itct T mi ppt vpmt pjct t

An American Investment Bank

y miitti ti amic Ivtmt b (aIb),

i t m t eIb T aIb c t it iiti

cpit-v m t vmt -tim mm-

ip m t tt11 T aIb c t i itc-

t ii t itmt c t vmt cit

ti T cti t i pivt ivtmt tt

t i ti tppmt itct-c -t Ti mt i c pic-pivt ptip

i itct ivtmt

T aIb, i t eIb, v ct tt t t c ivtmt

T ic t i:


33/233

30 | Mm t t n Pit

Pjct vt cmic citi ti

vimt impct;

sc pjct pmt cmmit cmic vpmt

- cmic pptit;

T pmt t mitc pic t iti

citic itct

Benefts

a -ci ititti i aIb c i itc-

t ivtmt itt ii t I iti, c titi iv

cit tmc vt itct pjct

cmic citi t p-iv c itt

ui t ct tm ti pjct, icc cm t c pjct

cmic v, t aIb i it i Ti

iv t ictiv t m t cmic vi pj-

ct, ic i t p t t t i t T

ct tt t aIb t cti ci

m it t vt pp ti cmic mit

t t p pitic tmT qiti -ci tm t aIb t

ct -tm cpit m i t ti c, i

v t t ctti t pic pi T

ct t aIb piit it m ci i t -

, c pjct v t pmt cmic vpmt

vt cmic picip

li t - pm i w w II, aIb itct i amic t ivt i amic t p mt

t itct c pmt pi citizip I iti

t t civic ptitic t c pm, amic i t

m t pptit t pc i-qit vi itmt


34/233


i, t aIb i it t m t jit pic-pivt

ptip Ti m it i c cmmiti t ttct pivt

pt, tt citi t tp it t m t $100

ii i pivt ct vi ivtmt pptiti ov

tim, t aIb c pvi tcic vic t citi i t p-

c pvi aIb itct pjct

Conclusion

amic itct i i iict pi, t ic -

m ct mt t- vmt a amic I-

vtmt b t i itct vpmt,

pmt pic-pivt ptip, ct cit itt

i jct t m t pit ti I iti, -

i itct-c i t t c i ami-

c t pticipt i ii itt ii t I t, ti i

pic tt t ci T i mc t i tim t

Endnotes1 amic scit Civi ei, rpt C amic Itct,

http://www.asce.org/reportcard/2005/index.cm

2 T Cc si, The Economist, J 26, 2008; bii brIC

t, The Economist, J 5, 20083 Ibid

4 Ci bt oc, Issues and Options in Inrastructure Investment, M 2008

5 Ibid

6 bii brIC t, The Economist, J 5, 2008

7 Ci bt oc, op. cit

8 Ibid

9 spm, Jm, bii st ti, Financial Times, Mc 13, 2008

10 ep Ivtmt b, a rpt 2007, Vm II ici rpt

11 T om cmpi pp $60 ii ivtmt i nti

Itct rivtmt b v 10 , t ti pp ppi mi t

tptti pjct It i t m t c t cti tm, -

c ititti t i t i i cmm


35/233


36/233

Ptti amic Tptti stm Tc | 33

To: T n Pit

From: P witi J

Re: Ptti amic Tptti

stm Tc

I amic i-tv tm i iicti, t

i i it v cc t -

t t cc iv cmmci ii

v t i ic t ii t

(t i i api), i pt c -

t ct cii p m si

ic v it ct ti , it c vti m pi t

at Pipi Itti aipt, v p

v t m t 20 mit, i tt-

c t ipt i t n y mtpit v

cm cic tt t vmt imp

fit cp it ipt cz t m

t m


37/233

34 | Mm t t n Pit

wi t pp m i t cct m

t pm t ii it c, t t i tv i t

it Mt cmit tt ii m, fit, m

-cit p i vt p pt t it t ci

utt, t v m i m i pic,

cic, miti p

I t t tm, p v t cic: f p m

ii vic bt miitti c ctiv, -tm

ti t t i-tv t cti :

i-p i (hsr)

, t t p iti tt m iict ivt-

mt i i-p i v t m ct: t b

miitti iic ppiti t vmt ivtmt i i-

tct; t t cit; t c ict c i; t

tiit t ii it; t itcti t v t

t amt

wit t ii it ctti t ii , t ct - pct t cti t i i t tm, t mp-

mt t i p, t tim mj ivtmt i i-p i m

t

Rail and Reality: Why AmericaNeeds High-Speed Trains

it , it cm ci i ci mpmt

t pjct t i t v t ic t ii t 1990,

t tt mt mj ivtmt i i-p i i tt

it i p pc j pmt cmic t v t

tm Mt t mj i-p i pp ic ct ii-

ct j t T pjcti ic t ict j cti

(tmp ctcti-t j i t ii t t) iict j cti (pmt j ct t t t -

t t i t)

b timt i t pt i-p i pjct, iv

tt v $10 ii ivt i i-p i, 40,000 ctcti-


38/233


t piti 112,500 pmt j i ct1 Ti ti

ivtmt t j cti (mti t ct $65,573 p j) cm-

p qit v t t ct ct tim pc ac-

ci t T sct h P, t $150 ii tim i

ct 500,000 j ( ct $300,000 p j)2

sc, mj ivtmt i hsr c cti t

ipt i a i i tc, jt i t c,

t cpcit pi 10 tim i acci t t s -

cic b a Mtpit Tptti Cmmii, hsr tm

t st Cii t b a ttct p-

m p t pc ppimt 200 tt fit c

Ti m -itc fit t Cii mj

ipt, ici ici pt fit t ai

Ti, hsr c c pti pc i

c hi-p ti p m t ctic i,

ic i pimi mtic pc c c

c P, ti qi t -ti mc p p mi tmi ip at ti p t t i i

ti c-t, i-p ti pc ict mii

a , t c tpit hsr i ci

it t tt p t, it hsr pci mc

c-ii mii ip -it mc c acc-

i t t Cii hi sp ri atit, t pp hsr tm

m s cic t s di imit 18 ii p - mii c t tt pc i i

p t 22 mii p 3

t, ic t mi-1990, t t ic i i m

vic, pimi t- t mim-itc it-cit t

cmmt i I it t t i , amt pic ic-

i iip, it t 2005 v 254 mii pti 29 pct

t m 1996 T ic v pimi iv t t i t it-cit p-i pc, c t ntt

Ci, t Cic-c Mit t, t Pcic Ct4

bt amt i pt t t m 1995 t 2005, cm-

mt i (vic t ct i itict cmmt t


39/233

36 | Mm t t n Pit

tt, cmp t pi tit, i qt cv itc)

m t 20 pct, m 352 mii t 423 mii p

tip Ti t t i cmp t tt tmtiv tv i ti

pi

tm, - t 21 cmmt i i nt

amic i t it 15 Titi, c tm cc-

tt i , ppt ntt citi c n y, Pi-

pi, bt T, cmmt i ct i mtpit

c t ti, ici Mimi, l a, nvi, Ctt,

aqq, i tm i t vc t pi

vpmt i dtit, o, ati5

Three Ways to Pay For High-Speed Rail

C, it tim ti ivtmt i i it m

m, i ppt ci It i t t t t

c v i i t ct ci cimt, t it c h , i t tit tp:

1. Build fve high-speed rail corridors.y miitti iti

v piit ci t it t i t t 10 T ci

c m ct: itc; p (t ft-

t t ti, t t t ti); t viiit tt, c, pivt

i; i piit ( ppt ci it i-ict v i i tc)

T tt tt cmmitti t ii hsr vi

v m vt i ti pc mp, Cii i t

tt i it t t i t ti tt cct mt it

mj citi wit t p i nvm mt $10 ii i -

tit hsr, t-t t t t tt t

v ci6 a c vi cic i-p i i t ntt Ci (bt-n y-Pipi-wit)

a ti cit t ct cv t Mit

ri ri Iititiv (Mipi-Cic-st li-dtit) ot

pi pti t t t-ti ci ic i (Tm-


40/233


p-o-Mimi), T (s ati-ht-d), Pvi

(Pitt-Pipi), t stt (l a- Pi),

c t tt tt t t i hsr

T i-p t ict p-i tc c p-

t m titi: amt; i vmt-p c-

pti; tt c cptiv; , i i, pivt cmpi

T cti pt p iit, t pc

cmmitt ivt, t ct ovi, i tt vmt

ctiti iict pti t t pjct, t

v mj ifc i tmii pt it

2. Establish a Rail Trust Fund and identiy defcit-neutral sources o f-

nancing. wt i mt i ict c ict i i

tt i cit-t witt ti, t hsr i t uit stt i c-

ti t ti m t m

r ipt v ict c ci, i t m t,

t, t I p i i i t cc c i it uit stt, it t it ict c

Tt i C ti ri Tt (rT) tt

c t ctcti mitc ti p-i -

tm, ici hsr

T rT civ it i m vit c:

a tict t p-i tm, ici cmmt-i t- (t t pi tit) a $5 p-tict c amt p-

t c i $175 mii a m c

cmmt tm ( $1 p tict) c i m t $400

mii c

I t tti it cmpi t impv i

i i , t cmpi c, i, c t iti $200 mii p

stt qi t mtc t ctiti

mj i ivtmt t t m v t i i-


41/233

38 | Mm t t n Pit

pt pjct stt tt t mtc c civ piit

i

t p ppt hsr ( titi p i)

cm m mt ti tm t cp t

mii c ii t a pti

t pc t m ctii c-mii it

v i vpmt I t it t c $25

t (i t t pct pic t 2008-2012 ep ti

mt), t v ti c ppimt $100

ii , jt 1 pct us gdP7

3. Target investment at demand by ocusing on proven rail corridors.

M t -ti us p-i tc i i i ct

vi mt i: i t ntt t it-cit ci

Cii t Mit T pim c i tm vpi t i t i tptti

cc cci a t ppc i ti

tp ctiti t t t mit i tt amic

it -c p i

amt m cti ppmti t t it c i-

ti - p t vi -ppt , ic

mit m v i t t ct tm iiiz i t T i ti m pitic c-

t vc hsr i m tt

T itct p i hsr civ t m v

ppt i ipt, ic ct civ ii

mti t 80 pct ti v ct tm, t t mi-

itti t vp tptti pic tt itt i

i t I t pt, ii v i ptti cmptit, t v pp ii i-p tm Ti t

i i-tc tm tt i vm t- fit

wit t pic viti i tt c it imit,

t tim i it t ct i t tt v p t


42/233


ipt mp, m tvi m Pi, I, t Pi

f cmmci pp p t Cic, t it t t ti

tt tp t oh t itti fit t c T

t pc i m, t i t t ii c v c-

i mt v cmi ; i tict t

m ct Iii t t Cit lit

T ct t itm tptti , m

ict m ipt pi t t ctcti i i tt i

ict t i tmi Ti t pit i cci dict i ccti t

ipt m m ppt i tm tt c

p t vit cmiti ti v ci

ip

Conclusion: The Time is Right

M Pit, i c t iv i t pt, amic tptti -

tm i jt p ci bt i t i ppc, i-p ti titi i c v imptt tptti

i t 21t ct sc t i t cm cp, ci

v ci t tt t pc i t pitic c hv, t

cmic, vimt, tptti t i-p i

c t t p t t

Endnotes1 timt j cti pcic i p i pjct, Cii hi

sp ri atit Mit hi sp ri aciti

2 rm sct h M P, J t nti aciti bi

ecmit, Mc 3, 2008

3 Cii hi sp ri atit, www.cahighspeedrail.ca.gov/news/ENVIRON-

MENT_Ir.pd

4 us dptmt Tptti, b Tptti sttitic, & wit ri

li, amic Tit riip s - bt at y ui, aciP It Cii, litrin, at 2008

5 usa: dpit Citic oppiti, lit ri Tit C up Mj sc-

c i 2007, litrin, dcm 2007

6 g, kit, Vt i Cii ok i-p i, tit t qti, Land Line

Magazine, nvm 19, 2008

7 T t J Mz ti imti


43/233


44/233

a Piv i sci scit | 41

To: T n Pit

From: rt C Pz

Re: a Piv i sci scit

w

i t pt mit i-

t cti t ci mt

w stt, 2008 m y o

t m mc it timt s -

i mpic pm tt i p

cit ct i vm

pic c

T impicti ct c: wit cm t mi sci scit Mic, t

t i a pit, mt i i

t cmpiv pt amic

v t ci-ic pm

tti it sci scit

bt tt it sci scit? dt Mic

pt mc i ci c?


45/233

42 | Mm t t n Pit

It , tt i ct t pit sic sci scit i, cmptiv

pi, t , it t t pi t w t s-

ci scit, t i mt vi pti ii i

t c ct I c i t citi t m sci scit,

tt mit m it i t m imi ipti ic tc

Mic t i

i piit ipti tt cpti i pqiit

titmt m bc i 2001, Pit b tpp m t

v dmct i Piti Cmmii t stt sci

scit Tt t t wit h iic ti

it pivt vi cct p t ctiti b cft-

i m it t cv t cct, rpic p dmct

c mitt tt pz ci ici sci

scit v ic

T tt i, sci scit c tti i p tt ct

c t cmic t t i T m-

pic iti ppti m tim tt ti t t t oti, t pm ii ct i

cti t c t pc i t t pic ivtmt i

t piv piiti

T it t cti t ct i t pt t I v c p-

iv ii sci scit t b pii ti i i

ti, t t m c

Social Security: The Basics

sci scit i mt ic pm amic ,

i ic p t t c timt t It i

c 124 pct p t i p t mimm,

ic i 2008 $102,000 rtimt t sci scit

cmp m ti it cct v itimi, ifti, t ct

T ci c sci scit iv pimi m t

ci mpic t us I 1960, p t m ppi-

mt i ppt t t v ti; 2030, t i


46/233


t ppti v ti Mv, amic ti

i cti t iv , t civ sci scit t

m

a t, t sci scit tt pict i t it

pt v $47 tii v t t 75 T timt tt t

sci scit Tt i t m 20411 I m

m t sci scit 2041 (tt i 32 m

t tit-mti i i ti 60 70), C

it v t sci scit t 25 pct

i p t t t 18 pct ( m cmiti t)

sptic m v tt c ci tp c vi

i cmic t v ic t t m t 2007

Tt rpt yt, v i ti ptimitic ci t cc, t impct

sci scit vc t tt , c i

m i timt t m

M imptt, t vit mpti sci scit v

tt ic i i pctc I t itc itm t i mj i i cc, t c -

mtic i i t i pctc amic

wi t Tt vc i t i i 2041, sci scit

pm i i 2017 I tt , sci scit i m

p t cit t tt t c p t

T impct ti sci scit h : hi-

tic, t rpic dmctic miitti v sciscit p t c t t cit I 2007, mp,

t cit v m t $100 ii i itt t sci

scit p at 2017, v, sci scit i v-i

cit it , ic i m t cit v i

Reorming Social Security: Four Principles to Follow

wt c t vi t cc tti t 2017

tit ptc sci scit 2041? picip (t

t t) i m p:


47/233

44 | Mm t t n Pit

1. Do protect Social Securitys character as a social-insurance pro-

gram whereby every contributing worker receives retirement ben-

efts related to his or her contributions. T t pitic ppt

sci scit i it - ppicti t

pivt-ct Ti pitic ppt mi i

C pt m tti, ic ivv ti

sci scit t m it i timt

icm v pci mt

2. Do make Social Security more progressive or low-wage workers.

T t t m pivt timt pici

t p, 401() p iivi timt cctc

$100 ii p , vmi t mi-icm

i- T, sci scit pv ct -

t t - , v t c ti-

mt icm

3. Dont divert any payroll taxes rom Social Security to private carve

out accounts invested in the securities markets. Ti ppt

m dmct, i pp v m rpic i it

w stt ct bt sci scit m c-

cmpi pi - cct, i iivi timt

cct, ic t p t

4. Dont reduce benefts or anyone now in retirement or close to retire-

ment. T v i t iti sci

scit, it c tt t c t tm

tt t t t ti mt pctiv

M pp piv ii t i citt it t

picip It i, i, t iiti t i tpic t t t , i ct t c T ct c c

t imit sci scit t t - t t t i

pic tp tt mitit pvii ft amic it

pptiti t v m i t-v cct Ti tt


48/233


i 2012 t pp t i timt tt T t

t ptcti sci scit amic, it imi-

ti t -

The Importance o Indexing

Mt pp iv tt sci scit t pic

ii c, t t ti, ti t i ifti (-

i t cm pic i, CPI) bt tt i t ct t c

T iiti ccti sci scit t t timt i

iit pic ii up timt, t v-

mt cct i v i v 35- c,

t ic tt v t i i v i c (t t

i i pic)

Ti itt- ct p pi pic ii c v sci

scit I t uit stt, v itic i v 1 pct

t p t pic T, t pci p sci scitt i 2045 i pjct t 50 pct i t i 2005

cmp (i ctt )

Tt i tti ic i pci p It t i

c t tt t t amic utt,

ct w c t it t m , ci qit -

m tt v it t t 30 pct

t v t c timt icm u p-iv ii, ti t t c

b ctt, mt mi- i- civ timt

t m pivt pici 401() pm sci

scit u piv ii, t sci scit t i

(v $90,000 p i v c i) it

ifti, i t mi t t m -

t ifti t i stti t t t ti i- mi-

m ic, vi it tii It -

c t pt v t 75- cit sci scit m

t $26 tii t $32 tii, pi t pci i t


49/233

46 | Mm t t n Pit

piv-ii pm

wt t ttiv t piv ii? M m c

ti t m timt 67 (it i t t 66

t 2011 t i t 67 i 2027) sc ti

ic i i t ii i pctc, ic tt impi civi -

timt t m Mv, t pitic ppiti t ti

ttiv i c i t m timt i

t 67 t - t i 2040

T v ttiv pitic mt it t pp

t i t m timt v 67:

rii t timt i t piv c it ppi q t

t it v;

I pctic, c ic i t timt m c-

i t - , ic t m i t i

pic ;

T ic i i pctc t - i- i

tti pp t pi;

M dmct -t it it

Why Other Approaches Fall Short

o c, pic ii i t i vi sci scit yt

t t ttiv, it cm c tt t v v

f, ic t t i t iqi tm

mp, m piv c ci t cc-

t t ct--ivi jtmt ct ti Mt cmit tt t ct mt vtt t ct i i cm

pic T vmt, v, m

t i t t tm, t impvmt i ct--

ivi ccti t mc t sci scit 75-


50/233


i p

w t imp i t t cv t sci scit t? I t

uit stt t t it p t t m 124 pct t v

i wt ep (, 19 pct i gm), t sci scit

cit ipp Pm v, it?

hv, cmit tt c t ic t

cmic t It qit iv ic t t ic

ic i

t , m piv v c ii t mt

jct t t p t di t t 1980, ti mimm

cv c t 90 pct i t cm bt tt

pct ipp t t mi-80 i ct

T i sci scit c t 90 pct tt

, c t tt m p Ti, v, v

t pv t impi 124 pct p t -

i t $102,000 $200,000 p , i mpti v

$200,000 m t p t ttT t tt pm, m dmct v pp -

t ppc tt imp t t 2 pct 4 p-

ct i v $200,000 Ti t vi pitic vt

ti m p t it , i vii t p

t t i t $102,000 $200,000 p

ami tt c t t ivv ic i sci

scit t, ti c t 75- cit $500 ii t $1tii pi it i

T t ppc v c it , cm-

i it t t c t b t ct i , t c

c m 25 pct i i t i v $200,000 p

(Ti ccti i 4 pct c p 46 pct icm-

t ic i , m 35 pct t t t 396 pct)

sc, i t t i t i t ic i t, ti vi-t t ic picip i sci scit a pi v,

t ic picip v citic i mitii pitic ppt

sci scit

sic t pitic sci scit m pit t m cmi-


51/233

48 | Mm t t n Pit

ti t ct t ic, mit t t ci cmii

piv ii it 2 pct t icm v $200,000,

tti i 2018 T t t , c C t it t it-

i $150,000 icm cp t rt Ira

Ti , i t v m ti , ic

p cmpt t t i ti sci scit t

at t m tim, miitti c p mtci t cit

c m ti m it Ira

a t pit, m piv ii pt

m ti : It c pt sci scit c

ci ti i tt pv i rvt vii

pvii amic ic f cmic cit i a

tt m t

Endnotes1 T 2007 a rpt t b Tt t o-a sviv

Ic diiit Ic Tt , M 1, 2007


52/233

m T Ct t T rm | 49

To: T n Pit

From: P witi J

Re: m T Ct t T rm

a

t pit, t piit mt t t

cm i i Ti m i

c t timt t, pmt j cti,

-ti cc i t ci tm

ovi, t c it iti t -

p cc t t c ci ct m T

i tt t t t c icipi, t t

i t t tmo t cmic t, c -

cit, ivt i t i t t i t t pic

a ti t jt m ctti t s,

t cmpi ti, ppt t it

i mt v ct t m p

m pp Tt i amic pitic titi

tt t c t t bt T Pt


53/233

50 | Mm t t n Pit

bt mti m mt , mti t v-

ti i it it n tt t cmpi i v tti

t t i vi t tim v cmic c-

tit, t ti t m ctti t, t mi

ti t tm

Ti mm ti t cct t jt tt It i im-

ptt t m c t t tt tt t ti , t t,

v-t (, i t cti pi ic, t

ct p t c it) Tt i mj citi

iit t b cit

T t t-m pici :

s t t tict ct t i tm

t c ictiv tt c t t cmic piiti t

mi c, c i m pi c;

ect mi mi-c t ct tt mi t ct im-c t icm ivtmt icm;

simpi i tti tt ti tp t v

t t ti tim, m, ctiv i t c-

vt tm t p

b i it t t pit i t ti, t tt it mic tt t t tm T t c, pt cti-

tt, i m It t i v t mt ti -

ci It cmpit i cmic t ivti It

i t qt pmt vi It i ci tt it t

t v tp 31 t vit a c it t ,

, cctt, ci p iti p tt ct

t t ii Ti v tt tt pcct t acit

P Ip-Pic aict tt im mjit ami-

c t t t tit t pp ti t t

T i tt t t m i t tt -


54/233

m T Ct t T rm | 51

miitti i v itic pptit t t impi t c,

t it t p cmic t p t mi c t c

it t

utt, t mt i-ic mpci t ct

icm t it cmpti t ft t pt w

stt wi ppt t i i tm ivtiv

m, t tt i tt it bt i

iv v mt amic t t

Ci ti: u ti t, mi mi $50,000 p

p t m mt i t c ic itm

cti mi i $500,000 t -icm mi,

t p t i c t mi t t ti

mi, t citi Tt i t i

a i m v tt ti t imit t

t Irs, t v t ct tt c t

cct t v m i wt , ti t

v t mc i t it ppt mit I ct, t biItitti wiim g timt tt it t -t t p-

pimt 60 pct t t vmt t it ct v,

ic t ti cct t -ti us cmic

ctivit1

avct -c ft t c cpi t iti v m-

i icm-t t it Tt i imp, t it t

cp m uct Cmmc rt J spi timttt mitii ct v qi 21 pct ft t,

it iiti mpti t t t - mii it pvt2

Tt i c cmt ci tt t -qt

tp i t t ct v t 15 pct t I t p

t pp cti c t mt cit cti-

ti, t t i v t i t 29 pct a ft t t

cm tti t i mjit tp amic -v tt ppc t t m, tt impi t c ct-

t mi-c mii

T p pp i i t p t v pi mi-

c piti It m t t c i amic


55/233

52 | Mm t t n Pit

mii pvii t ct t p p c, m, i

ci, v timt T ictiv i p mii t it

t mi c t t Jt imptt, ti p i c -

pi Cp it i pi ct t tti t

cctiit, it i p c i t

h i m ti cipti t t ic pici ti

i:

1. Four Core Tax Incentives

ov t , m v t timt vi, m

pc, mi t m mi-c ttimt wi

-itti, ti cc ictiv ct tm tt i

ci t t it it tm, m t iti

t t , t t t t tm

mt

T ti m, i 2004 PPI pp imiti citi m68 t tt t mtim t c-pp (ic-

i t 16 t-v timt cct) o ppc i t

pc tm it c t ictiv tt i t-

, vi t t vt mjit tp, citt it t v

mi bc t ictiv pc iti

t , ti p i t-t It t i im t t

citT t ictiv C T Cit (CTC)

imi t t $4,000 amic opptit T Cit pp i

cmpi3 T CTC i pvi t cit t

tt c i amic mii Ti cit i cv 100

pct t t $4,000 qi titi p, mi cmmit

c ti cvi t t-ti t ct titi t

pic - c at tim cc t c m m i, c cit i m vit t v4

T c mj ictiv t t t m-mt -

cti t -itmizi m cti 10 pct Mt

Itt Cit (MIC) Ti cit ( ic m


56/233

m T Ct t T rm | 53

cmpi pp) t mt-itt pmt m

mip m - mi-icm mii

Ti iv cit pvi v t ct $500 t 10 mi-

i m t ct itmiz5

Ti, mi T Cit (TC) pc mt t

iti t ictivt e Icm T Cit, t Ci Cit,

t Ci dpt C Cit Qii mii -

civ $1 i cit v $2 , it mimm cit

$3,500 mi it ci, $5,200 t ci, $7,000

t ci

t, uiv Pi (uP) pc t 16 iti Ira-

tp cct it i pt timt cct

Ti pp p v amic t pti vi

i , tmtic pi cct T c amic t p

uP, c civ $500 t p ti i t

j

ui titi -t p 401(), uiv Pi mv it m j t j cit i t fi

mt w c j, ti 401() cct m

t t ti uiv Pi, itt cmm pp

t t p Ira i, t uP p t iti sv

Cit t mtc 50 pct t t $1,000 vi mii tt

$75,000 p , m t cit

2. A Middle-Class Tax Cut That Rewards Work

di t cmpi, cmpi mi-c t ct t p v-

mii m mt n, it ct ci ci,

tti mi-c t i ct i t t mt mi-

itti i v m c

y it tt t tp t t b t ct t pi yt it t vmt it t ci i

ct ( it pi c tim pc), tt t v

i t t p t mi-c t ct c-

ti i c 2009 cit cit tt m iv m c


57/233

54 | Mm t t n Pit

tmic $1 tii Tt i ppi iti t

t p mi-c t ct: citi-tcti t

Ct, t uit kim imp mt tc-t t

025 pct v pc tc dpit t -

itc ti t, l i n y Cit ct t

ci a -t t pp i m ai mt -

mic cmi, t ct m t v i ti p

tjct Mi sip c v ci-tv t t

t 010 pct Ii itc citi-tcti t i 2004,

Jp, k, Ti, h k i i I c t c

t iict cti i it pic vtiit mt t-

v ot cti tt v ci tv t t t 010

pct ic ati, ati, i, gm

I t uit stt, citi m 1914 t 1966 -

ct tt, it t vi cpti t gt dpi, t

ti i i t ivi t c

icm v6 I, ti t t v mt impct tpi-c mi-c

a t ti iz, it cmp t vi t ci it-

mt, i pti t, p c t civ pcti

tt ctit t ct ci cii a tcti t 025

pct t ti citi, ivtiv, cit p c i

m $100 ii t $150 ii , t cv t

ct mi-c t p t m att, c m t v m t tcti t t ct t i iv

p t (t ti m c t t icm m

cpit) pp t t t t t i t sci scit

Tt

mp, c pvi v tp it $500 t

ct $69 ii Tt v $31 ii t $81 ii

cit cti t p p t timt t m, m m t tti m i t ct mt cp7

wit t ci mt ti i ict tt, it t i-

titt t t ti 2010, t ic tim t it tim pc

v t ct I iti, tim imit c pc t


58/233

m T Ct t T rm | 55

tcti t t t ct t it pi t amic

tp (ti i pct t cc iti 15 t 20 )

3. Simplifed Business Taxation

Pp cti t c i m cvt icit t t

cpt-icm t wit t 35 pct (39 pct i

i tt c t), t uit stt it mi

t i t yt, cci t t g accti oc, 60 p-

ct us m i t p icm t m 1996 t 2000 t,

pct gdP, v m t cpt-icm t v pp

m 5 pct t t 15 pct t 2 pct i ct

wit t it t i t , us cpt-t

v cii? T i t it, t 35 pct t

ppi t icm v $10 mii; v cpt icm

t t t

sc, cpti civ m cti, cit, t t t tt mtic c t icm ic t

a t, t Ci rc svic timt tt t ctiv

cpt t tt pt ct pi t t Irsv

ppimt 263 pct8

tm, i ct t t tt t ct

i icm m tti p wi v amic i

t it t t v m t, it i t t pi t vi pimi t t v t

pic t tim ct t t, cmi pic

itct, t , ii t-c tm, m

t t pic

o t ct vimt v t i i t -

c t ipiti ct t t c Tt i cmm

iti t ct p-ci cmmii (cmpt t cmmii tt v t imi t pitic t

ci miit ), it mt t ct t cpt t tc-

t t i t sc pp p imit

icici, pmt i, c t t t mj-


59/233

56 | Mm t t n Pit

it m ov t tm, it v i ii i

cmpic ct

I t ci t cpt t, c ci i am-

ic i t ctit t pi t-c cv qi

v m t it 401() T tt C t

c t m, c pmi t vt iti tt

ic t p

I cci, M Pit, m t m t i

itm m cmic ti : simpii t

c mi it m p- p-mi i t tti t us

cm i i amic

Endnotes1 g, wiim, T nti rti s T: wt w t rt hv T b? T

bi Ititti/T nt, M 16, 2005

2 spi, rt J, T t T, t-li: rpic v t m n

tt t ct wit, t c it? Slate, nvm, 26, 20023 http://www.barackobama.com/issues/education/#higher-education

4 T v titi ct titi t pic ivit $6,185 i t 2007-

2008 cmic , cci t t C b

5 http://www.barackobama.com/pd/taxes/Factsheet_Tax_Plan_FINAL.pd

6 h, si-, T ct t tc tcti t t tc mt - e-

pic m ai mt, dptmt ic, nti Ti uivit,

dcm 1998

7 T It rv svic cct tt i 2007 t 138 mii tp

8 Mi, stv, av ectiv Cpt T rt: 1959-2002, Ci

rc svic T Crs timt pp t mtic -ci cpti


60/233

| 57

part III

resTorIngThe ProMIse

o soCIal MobIlITy


61/233


62/233

a w b M | 59

To: T n Pit

From: kti McMi Cmp

Re: a w b M

o

t mt i ci pm -

ti c i t pitc pvt j-

m m t m t m

v i it t c t t p-

m fct i m, vfi pi,

ti i t pi m

m

b i ti pm, i t impvp t t--i ct t pt it r-

i pit i 2000, g w b pmi t-

i t vti ppc t ti pv-

t tt cmpit cvtim a

pi, It i cmpit t ctiv p

citiz i It i cvtiv t iit piiit

t


63/233

60 | Mm t t n Pit

I t tm, v, t pit i t m i p t

t mi cmpi rt t pimtic it, i -

miitti iv m-c, t tt

i itt m t ti t t mi iti ci pic

wt tii ctt it Pit bi Cit, c

ci ivti im t i i t -

titmt att t cm, t Cit m pc i

i: us ct m t ; t pc t ;

pvt ci v t 1993 2000 c ci,

t pvt t t it t pit v

o Pit b tc, t m amic ivi i pvt

ic t 2001 2004 vi , t

im ptic i t pc Mi, m icm i

t ii ct ivipci i, , , ti i

v mm -icm i mii

Tt m it i p t , M Pit, t pic p bi Cit

t viv cit ti t t p citiz t ti t pvt y c tt ci miti -

izi picip piv ci iititiv: nv i

i amic mi it -tim iv i pvt

Pvt cti ci miit mt tp piit y

t i p t i pm t 1990 tt p-

ptit t m piiit m cmmit t

vi t t tp i mT i mt piiiti ic pic itc i tm-

p citi pc mtic t w t -

m t 1990 c mvi cipit (mt i

mt it ci) t , mt mpi t

pit p m

l-icm m, pci miit m, v it t-

c t ic mpmt c c -mt1 sm ti tt 42 pct i-, p m

t i 2005 Jt 16 pct ti p pt i

-tim -, 6 pct p aic-amic m

-tim2


64/233

a w b M | 61

T c -icm m i t mt i t m t

t iivi, t t cit t a c pi, i-

i t i -icm i v -cmt t

ci pti It mi mi it t vi-

it -icm m mt tmv i mm It

v m ci pvi piv ct pitiv m

m

giv t iti, t t i tp i ti-pvt pic i t

m c it t mt a Pit Cit t i, t t

t t pvt i t m pp c j at t m tim, -

v, ct t ct tt m - piti i t pvi

miim ct t ivi

T m ti ct mt, t t miitti

p t pv pic t tt m p: t e Icm T

Cit (eITC), t cit tt ppmt t

i miimm- -pi j

T eITC i, qit imp, It p t c pvt itt i pic cc m it t pic

cic t ti-pvt i t t t it Cv-

tiv r r c t t cit t t ti-pvt, t t

p-mi, t t j cti m t cm t C eci

tt timt, Pit Cit mtic p t eITC i 1993

t m amic ci pic pt t

T t t ctiv t eITC t t ptc t it pv cc sic it pi, t cit it

4 mii pp t pvt v , c mi pvt -

tt, ct ci pvt -qt3 tm, t eITC

pi ic -mt pticipti t m i mt

civi m 9 pct t 28 pct4

bc ti-pvt pici v i t pt it ci-

, t ct pm c t eITC v v itt ct -icm m, t v ct ci Ct,

t mimm eITC t i $4,536 mii it t m

ci, $2,747 mii it ci l-icm

t v ci $412 mc m t


65/233

62 | Mm t t n Pit

I t, t eITC ictiv mc p -icm

t t mt b mi -icm m ii m -

cit, c mv amic c t t piv m-

i p v I ct, vic m -ppt pimt

t tt ic i t eITC i, ci , ici

-cti t, t it m mii t pvt, t

ic t pc -icm m i t mt t

t 4 pct mc 20 pct5

PPI pp p tt p t eITC i, ci-

, ici -cti t, i impii t t

c

bii PPI mi i T rm , miit-

ti ci i t eITC, t Ci Cit, t Ci

dpt C Cit it i mi T Cit (TC)

Qii mii civ $1 i cit v $2

, it mimm cit $3,500 mi it ci,

$5,200 mii it t ci, $7,000 mii it t m ci

T p TC tip t t tt -cti t

ci tpic civ m t ct eITC, ivi tm

mimm t $1,236 p I t tt pt pi-

iit, t cit vi t t it p

ti ci ppt6

I i t qi -i iivi t i tciv vmt t, it i m iti t tt t

cipit v qt ictiv t t j p it y miit-

ti t cc t p t m, c

i m pti tim m

Endnotes

1 em, Pt, h hz, P o, Reconnecting Disadvantaged Young Men,T u Ititt P, 2006

2 M, lc, T Mt w Pic M, T t Ci,

V 17, n 2, 2007

3 bi, g l, ri t w Iivi: a Ctititiv appc t

rci Pvt stti mii, 2007, www.mrdc.org


66/233

a w b M | 63

4 Zi, si rt, mi ecmic rc i t Pt-rm e, T

t Ci, V 12, n 1 wit/spi 2002

5 bi, op. cit6 Cmp, kti McMi, wi M, Mi w P: M T, P-

iv Pic Ititt, nvm 2007, http://www.ppionline.org.


67/233


68/233

Ci t gti gp | 65

To: T n Pit

From: d r

Re: Ci t gti gp

P

ic cti i mi tt c p-

iiit, t v t pt qt-ct it -

cm ti pm T mi i t-

pitt civmt p t mi-c

-icm tt, p tt i amic pmi

q pptit v it ct iit t

i i mt

Ci tt p, wit h pc -iz, i qi tmi piti ip wt

citi t i tt v m ti

wi mt vt ci mt pct

ppt t tt cmic i it t

ii civmt v Ci, Ii, ricci, t ct cti c ct-

i ivv t ci t p


69/233

66 | Mm t t n Pit

Zi, i i tt The Post-American World, pit ttt t tp-civi t-ti amic tt qit cmptitiv

itti cmic tt T pm tt tt amic ppit, Z-

i , i i t qt ct t ttm ti tt

Tt ti ttm-civi ti cit , -icm

aic-amic lti i i ti c t cmic

wi m t i t mit it, mt c icm mi p-

pict ci cmic pmc T pt it imp, cti

p i i t civi-it i tim

dpit t cmic m imptiv t ct, pt t t -

mtic impv t cti p ci m t itt c-

mt I t mm 2007, t n y Cit c ct ic

i t i-c ti t m 49 pct t 51 pct acci

t ct t Mici stt uivit, m mt dtit

ti t 32 pct 25 pct !

Vit v pic-c tm i amic pt c

m t n mj cit m t ct it p ci tv cmp it mi-c tm

bt t ici i-c ti t, t -

it m m p

a i m pic, -mii i c i i citi c

amic v vp c i tt pc i-c ti

c-mt t q t t i ft tti

uivit Pp, t ct pic c I p tt i dtit it , t 93 pct it ti aic-amic, vm-

i p i c i J 2007, 91 pct t -

t i c tcic c

tm, t tt v - ti c c-

t t t pct aic-amic tt,

v t Mici tti v m

ev m citi i t ct tt t ti c -mt t t jt i-c pm I c t

t tm 50 t pic -mii i c tii

tt civi t impiv ti v t uivit

Ppit mpic imi tt ppti


70/233

Ci t gti gp | 67

T cc c t m it m, t v

v cctitic i cmm:

1 ui t i c mt t t, ic ti pim

pvii jct mtt c tt mii mtivt

tm t t, t cc c t pi-

iit mtivti tt t T t t tm-

v t jt c ti tt m iv i pvt, cm

m iiz mii, iv it p cmic ppti

sc c mtivt ti tt i t it t t c-

t p tiip t tt tc, i-

iviiz i t m tt v pitt

i i c v pitiv i pic tt i t -

cc c t cti ti ti stt t -

p t tti cc pp i t cmm-

it t i t piti t t c p

The most important single trait these successul urban schools share is theabsolute commitment to providing the motivation that a student needs topersist and do the hard work required to graduate.

2 hi-pmc pic c iz tt c ct

tmp vtitt cti c vimt civ-mt, piti, ci v i t

c citi vi cc c a t

c iv mpiz tt ti tt i tt,

c, i t t c tcic c

3 T c m it ti i t c tt i i

cmic ci t tim t ct tt I t tt it- i tc t t- i

v i t i cc, tt t jt t mt t

ivti, t p t i i c, mc tm

t c scc c c ti tt iivi


71/233

68 | Mm t t n Pit

4 scc c v i c-ppt cic

T t tc tt, c t iz tt v ci

t i qi c m t t tt ivi-

ti, p ccpti ctict i cmmit c tcic

c, i ppticip pm

a t m dtit itt ti picip dj it cm-

i m t i c , t 16, tpp cmi t

c hi t pt i dj , m

iit t i t dj mt im , v

i pi t t cim ct t v im

icct i jvi ciit iciiiit

T c $50 c pvi i-

mti t dj t a tt cm ii-

ct ivi i it v i t t

i t cit dj tc-vi, c it

im ic t it , v t t oc t, t im t t t c tt p im pc

t iv dj m i ti mv i it m

tc i i

a t t ti itvti uivit Pp tc,

dj t m i c it i c civ -titi

cip m c ivit ev c ti pct

ti tt c t z imi tis, t t t tti tt cc c

t t v i cmm wt pi m impmti t tt-

i i v ivt c i t ti? wt pi m

mvi qic t i ti t t 90 pct p

ci i amic m i c i t t 90 pct t

c tcic c?

I , piticic t t ci t m ipit t uit stt

I m vi, t t mi pqiit pci t ct-

t mi i c i i citi it i-pmc c

T t pqiit i tm Vit t cc c


72/233

Ci t gti gp | 69

m ti picip tc T tmv ict pi-

ti tt cc, v t p t t cicm i

tti t t I t , t c it-m

rm, t, m iti p t t iivi c

m t ct cci tt ct ict v i-cit c

tm T ct cci t iv p ct, c t

t tt i t i ti mi w c m

tm? tt t c vti it tt i-

ti P t t m tm pitic

T c pqiit i t iti t it I

cc c, t picip m im ct

t t ci t, picip t t c v i

p t i o m, iticti i, ti m tc

i ivi p t iit-ct vcmt tm Mt i

vt t t ti -ci tm

t -ct T pitic p

witt piti ip, it pp i tt tc p-piti t c vit imptt m i vcm

a pit ct it mt cti c c t

t t imit t i-c pt cii m amic i,

ct pt t cc mii pp

h t tt mit pc:

lt t amic pp t C tt ti i tpm tt ct ti, mtt tt ti

viiti cc c i v i t ct sic t

vmt ct i c c ict t

v tmpt t i t i it i ctiz

pct ppit i t mt p piti c

ii t c c m

T pti i t n Ci lt bi (nClb) p-

pmt it m pitiv ictiv m ov t pt -

c, t pti ii c v cm itt m t

m iitt i-cit itict nClb c m t iv


73/233

70 | Mm t t n Pit

ii tm ci ictiv t pc ii c it

c i tt i pv t t tt it imi mpic

Mici jt pppit m 21t Ct sc tt

t ci ictiv t ct ti

stti vcmi ctic ppiti t it-m

c c vi i tt ptip cv

t pit i cti it v, i ctiv,

civic t t t t mti t

i pt t

wi t t p ci tm t c

t t tm i t mmt t t t p tm

p tt m cmptitiv wit cpti, v tiv cc-

c ti t ti tt t c -pp

ti ctpt

uti c c tt p, ti t pvii t q c-ti pptit tt v Ti i t i c T

i tt m t i m c ii

t mtt m impiv p i ci ti p

hvi i tt, t ctitt m c

pptit amic ci n t m tt

c t impmt ti , v t

vcm t i t q cti tcm miit is m pi ti pm c c ti tt,

tt i t c it cti w t -

icm ci i cti, t tm m i c, tm

t c tcic ti T pcmt ii c it

t p c i pmi t c amic i p-

t hmt act, t gI bi, t Vti rit act

a t itic ct iti v amic p t pti tii ei mii -icm ci t t

m c i tt p titi


74/233

ei Ci h i amic | 71

To: T n Pit

From: J b Tm m

Re: ei Ci h i amic

it, t : h icit

i i amic, ti cm i

m ti T vmt

pt tt 700,000 p ci i t uit

stt ict pic , m t 12 mii

ci iv i -icm mii tt m

icit, ic m t t t mt ti i

titi n t : b impmti c

cmpi p t ci i t uit stt

2015, v i-i pptit t ti

it mj ci pm i timti

ii cm T pctic m iti -

titi pm, it tt pi,

miitti c ci i amic1


75/233

72 | Mm t t n Pit

Americas Hunger Crisis

ifti i t it t v i 17 acci t t us d-

ptmt aict (usda), pic 4 pct i 2007, cm-

p it v 25 pct i t t 15 giv

t ci mt cmic ci, t m 2008 i

i

T t cm i i pic itti -icm

ci pci I 2007, i i ci iv t pv-

t i 124 mii ci iv i tt c t

o t, 691,000 ci ptic

, i ict m c it

I M 2008, i amic, t ti t - t,

pt tt it mm ci v m cit i t pvi

, it t v ic timt t t 15 pct 20

pct 84 pct t mt t i

m t cmiti t ct: ici m

cit; ci vmt i; i pic

T m i, p it i ti v t vt

Pit b, i t p mc wi m

titi itc, it mt t t 54 ct p

v amic ci

rct c tt icit i amic t c-

m cmpmi itti cmptitiv It ic

ti pi t c c pctivit -

cti pmc a 2007 s ti t pt t ct

i amic t miimm $90 ii :

This means that on average each person living in the U.S. pays $300 an-nually or the hunger bill. On a household basis this cost is $800 a year.

And calculated on a lietime basis, each o us pays a $22,000 tax or theexistence o hunger. And because the $90 billion cost fgure is based on acautious methodology, we anticipate that the actual cost o hunger and oodinsecurity to the nation is higher.2


76/233


77/233

74 | Mm t t n Pit

t c ct pi i t mt, M oz i rt

ct pi t t 20084

w -icm amic civ titi t, t t

t p t m immit, pi t ivv i i, p-

ci, ippi, i, tii spi m

titi pm t t t ict qic t ct

amic j

Five Steps or the Next Administration

w t c c p t civ cmpi t

ci i t uit stt i miitti Ti i

qitic vt It c ccmpi mi iti pm

it m pi, mt ic it t pi

c m tmp t tt t ci

y p ic v tp:

1. Provide All Children with a Free School Breakast

M -icm ci ii c t, t

c itic t tim ivv, t 20 pct

ct civ tm T v ti t, C t

iv c t c, t pvi ict i t-pi-

cm

bt iv i-cm t v pv cci ct c itict tii itc, i n, nJ

t ppc tiizt itict 94 pct t-ptici-

pti t

I 2008, n y Cit c pit pjct t tt i-cm

t i m c at pit it, Pic sc 68 i

t b, tt t t tt i ti t-pi c

acci t t c picip, t pit v 50 icm t c t v m tt t i t t

t it t t ip w t c tt vi t i it

cm, i cm i jt t m, t v

i t 900 pct c i ti atim


78/233

ei Ci h i amic | 75

viit t c pp, i t t, i p

i t cm qt

I t , mi ci t t t i t

titi pic; it i cti pic T pit i-cm pj-

ct i n y tt M Mic bm ct -

c it pi m 50 c t 300 c T v-

mt pvi tcic itc i t i c i-cm

t pm tii

w itict pt iv t c pic, it c p-

p cc v tim m Mt c itict c-

t v cmp tm i pc t cct m t t icm

c tt pt t tmi t iiiit c ci it

, c-pic, -ct m Ti miittiv c t pci

tim m c c mii: cti ci

a iv-t tm iv c ti , jt

picip tc it t t ti ttti t m vit t,

tt tmv t t cctt t mtt w t t -t i cm it cm tt i t , t

v m tim t c ti ti Cci, t ptct

m t tim vi t v ti i t t pci t

m t p i

Tt i t t citic cti t, p-

ic c itict tpic tm t c t tt T

tim i ip t ti t vi c m i mc t m t c iv i cm t ct

2. Improve Program Efciency and Accountability

T vmt t pm mt impi

tt iz I ptic, t stmp pm (ct m

t sppmt ntiti aitc Pm) cmi it

t vmt-p titi pm Ti i ct mii-ttiv cici, i iiiit, t pticipti

vit , m mii ii p-

m t pp o t ic pticipti t cm-

i ppicti m pm, ici t spci sppm-


79/233

76 | Mm t t n Pit

t ntiti Pm wm, It, Ci (wIC);

tmp; c m; t e Icm T Cit

I i t pvi itc t t p, it t tm

t v t it m cit Ct, tmp p $3

p p , v tt t c t it w

c tt tmii m, mpi tc, ptti t

vi t c t t ti

I iti, m c t ct ict it -

piiit civi qti t i ci b ititt-

i c cctiit t t cit v, i i tt i

i i piit miitti

3. Support Working Families

o t t vmt c p i mii i t m

tt p ct Ti i pci t pt ti

icm t ti ci pic cim ev t

C i t miimm tt it i c $725 J 2009, ti i t y c pp -t pc t m

p: it, i t miimm t t ii ct ivi sc,

p t e Icm T Cit m tt it m

m t 5

4. Reward Best Practices in the States

stt vmt t t tti t ti mt imp-tt pic pimt y miitti c tt cc-

ivti i i t impvi titi mp,

v t , t usda c c t t v tt tt

t tt cti i t c m icit

T tt c t ti ii t p impv ti ti-

pm Ti ct ictiv t tt t ct

t ctiv pici

5. Provide Real Ammo to the Armies o Compassion

at t impv t qit pm i t c

ptip t t vmt pt p,


80/233

ei Ci h i amic | 77

t c ii dict vt t m t -

pt ct t c p it ititi, t it tii

pm; e Icm T Cit stmp tc; it

t -cic pm

nt p pic m t ptiz icimi-

t, t i t m cti civic p t p i t ti-

mvmt, t vmt mt pvi tm it tti

ic i cici ict i; tcic itc; t

ppt; p ppt tt

T t t v t ii p

ivv i t t it T , p t ti c

T t v t t c ti t c t

t ti vit m ctiv

Conclusion

It i t ti tt t uit stt civ it tt p itmtiti i t tt ipti cpti t i

i t t 1960 t mi-1970, citi

dmctic s g Mcgv (sd) i rpic c,

s b d (k), ct t m titi t t amic

c i c tc ptiip i p-

p tt t v i pm

a pt tt tim pc t p viv cm, p i c pi ti- pm Ti impv t iv

mii amic ci iv t cmic mi

v t t vtti ct p cmic mp

gt civmt qi t cmmitmt Pit k pt t

uit stt tjct t c t m w p i ccmpi

tt q t, t it m -t-t: -

i ci i amic

Endnotes1 Ti pp t pvi pt, ei us Ci h 2012: h

amic C b t Pitic ljmi 2006


81/233

78 | Mm t t n Pit

2 b, J l, d sp, Timmt Mti, J ot, T ecmic

Ct dmtic h: etimt a b t t uit stt, T s

ti, J 20073 stmp = r stim, rc acti Ct, http://www.rac.org/

real_stimulus_archive_aug20_2008.htm

4 hz, dvi M , b h i acc $150 bii stim, The

New York Times, J 25, 2008

5 Cmp, kti McMi wi M, Mi w P, T Piv Pic

Ititt, nvm 2007, http://www.ppionline.org.


82/233


83/233

80 | Mm t t n Pit

t pic ivtmt pmi i t t t pi -

ci ci

acci t uivit Cic c Jm hcm, v -

pt tti v ci t v tp $7 i

ci ct Tt i tt ivtmt t t i t m

i-itt m-mt cct

a -c cti amicpci ivt t-

t i i p t mic ci pt t t v

mi itct ti pm c Tt i pci t

tim t m cmpiv, i-qit pc ti piit T

i tt t t civmt p pp t t ti

t cmpt i t cm

Closing the Achievement Gap

dpit ti c ii cti t mi

tt pmc, ti v t t imiti tcivmt p i amic Miit cmic ivt t-

t v m i i ct , t t cti t i ti

it mi-c ctpt

T mt ct nti amt ecti P (naeP)

c tt c v 26 pit t it tt i t-

mt mt hipic t- c 21 pit t it

tt am it-, t p ti: wit tt c 32pit i t ti c p 26 pit i t hipic tt

I t i mt, it tt i t t c 27 pit

i t c tt, 26 pit i t hipic tt T

i-c p m itmt itic

T civmt p i t jt mtt ci ipiti; cmic c

i ct ki m -icm t ii t -

ti c-c pmc t t 20 pit it-mt i mt t t i t qi

T p, mv, pp mc i t t T pp-

ti p t ivt mi-c ci i vit

it o-qt it tt c ic ci, mti-


84/233

Ivti i e ecti t gt | 81

, cmic, mt i a i t-ti ti it

t pt, 39 pct t mt ivt ci c

ciz tt1

T ipiti i ppti it c p ci t t -

civ pp timi i pptiti t m i t t t

it mt pi citic p m vpmt ac-

ci t t pt p Z t T, vimt p mj c-

t i i vpmt:

[T]he particular language each child masters, the size o his vocabulary, andthe exact dialect and accent with which he speaks are determined by the socialenvironment in which he is raisedthat is, the thousands o hours he hasspent (beginning even beore birth) listening and speaking to others.2

ot ct c mtiti, ic ipptit ct -

icm ci, pt m ci i t t i-

t w ci t civ pp titi, ti i vp m, ti i i, IQ, imii cmic

pmc I t, i ivt ci ct i ti i-

c t , ti pt ct i-qit pc,

t t pt itim t

w v c t c t c pt t qticc t

i qit pitc i t c t imptc

-ci i i tti, t pmmtic itv-ti tt pc m t

uq pmc i c t iqit i icm t ev-

tt ptp ti cmmitmt t i-qit p-k m

m mi pptit t m amic t, i cit

ei tt v -- cc t pc cti i

m cmic imptiv

A Smart Investment

Ivti i i qit p-k i i vi t tci

t cmp itt it mic a t i,


85/233

82 | Mm t t n Pit

Jm hcm tt ivtmt i ci v mc

p t t mi pm h it:

Skills beget skills and capabilities oster uture capabilities. Early learn-ing coners value on acquired skills which leads to (a) sel-reinorcing mo-tivation to learn and (b) early mastery o a range o cognitive social andemotional competencies, making learning at later ages more efcient andthereore easier and more likely to continue.3

hcm t tt i ivtmt i j tii, pi iit-

ti, t itc pc m t, t cmic t

ev m t mt cc mi pm t t,

t pmc ivt ci i ti i t pmc

ci pic i itvti i t pc 4

dc i c mtt t pmi i-qit p-

c sti v tt t p-k pm ic citiv

iiti, cmic civmt, mpmt t, i ci cim-i ctivit -pc t5

I Cic, tt i p-k pm 29 pct m

i t t m i c cmp t ti p i t

tt pit a vti M -i pm

tt t- tt p-k 44 pct i t

pt t t t- i t Ci pticipt

i t uivit nt Ci aci Pjct t t ct -ci cti -icm t 26 pct i

t cm t pt t p c ci a t

40-- t i Mici tt t tt p-k

v icm 33 pct i t t t6

A Federal Partnership with the States

T i qti, t, tt i-qit pc T i, -

v, qti t t vmt pp i tti -

i t wit t iict cpti h stt, cti i

mt tt piiit


86/233


w t tt m t vmt vi pt it

t tt i pi t ct ptc pm, tt i-

qit p-k cm vi v p ivt ci i

amic T vmt t ppt tt t, t i-

t p ic tm

spcic, c ct , pmc- t tt iv

tt t fiiit t p cc t p-k Ti i piv: w

timt tt pvii i-qit p-k -icm --

iizi it i mi-c mii i ct t v-

mt $92 ii p hv, i qi tt t mt t

v t t tt tt ct ivti i pc, c

v t ii tt pic t7

ui titi c t, pmc- t cm

it v pcic pctti t tcm stt c, mp,

p cc t pv pmii pm; ic ppt -

cti tc; itt pt it c i, vic,

ctiviti

Expanding Access

Pitic cit c t mt cic t c-

ti: o ci t sm, v, cc t qit

pc pptiti p i i ti it

ev t t m tt i tt- p-k p-m ic i 2007, v cc mi t T cc tt

ci i t m tt p-k pm i ti tmi

iv8 wi m tt v ic mt, t

v m p t

mp, om, i -ci cti, p-

vi p-k m t t-ti it -- It iv p-k

pm i vi t v ci i t tt at t ppit tpctm, 12 tt pvi tt- p-k pm t 9 o

17 tt mt it m t 10 citi i-qit p-k p-

m tm, 22 pct -- tt tt-

pc10


87/233

84 | Mm t t n Pit

wi mt tt v m ivtmt i cti, t c-

t it i ptc pm it vi v qit T

i t t i-qit pm tt citt t pitiv

t

wt c pm i? tt, t ciz t iq

i t ci, pvi cicm tt

itt i c citiv, pic, ci, mti vp-

mt T pm t ic , i, cic, mt

cti T m imitiv c p, mtic p, t,

mic11

T c t t v tt-t-tc ti, ti tc-

p t c pcic tii i -ci

cti

T m cc pm ic titi m, c,

p tim ti t v ci, mm sm

t t c vii, i, v t ci t

tct pic mt i t i

Supporting Early Childhood Teachers

a -tm ivtmt i ci m -tm ivtmt i t

tc t ci o cit ct i t i ti

Tc ci-c m t t-pi mm t

amic c, mi v $1240 p $25,000 T i t ttct tt pp it t -ci-

i tti tc i pi t t i

itt Tt m vii t ic i pptiti

t tc c t ci

o i t pi i t t -iv pm

t -i tc mp, t Pic svic l iv

pm pp v mp i -tim pic-vicj 10 ici -cti tct v t tit

ti t ic T t -iv pm tc,

t t t ic -cti pi y, M Pit,

c c tt


88/233


at t tt v, pic ppt tc ic cip pm

(TeaCh e Ci cip) tip (Ci C

wage$) tt c -ci tc t t i t c

stt t ti pmc- t t pt t

pm, ic im t tici m tc it -ci

cti

Getting Parents Involved

T ci mt pc tpic cm m t mt i-

vt mt i pt it cti v

T pt t ppt t, t c tt

j pti ppi ti i c

sm tt, mp, pt cti j-tii pp-

titi, tc cc, m viit, t titi itc

o t m cc mpiic tt pt-itvti pm

ic t Ici y Pm, ic t cic it itt pt tc t pmt ci cmptc pvt

cct-t pm i i, t, ci

rc t hv gt sc ecti tt ci-

ci i-i vi pm t t ii

t c pt tc pticipt i t Ic-

i y pt-tii i i t v vi pm

t t t cmp t t ci pt it pticipt12

a ti cm t v ititiv t: w p-

t ivv it ti ci c, ti ci itc i

ic, ti vi impv, ti v ci i ic13

Conclusion

I t t tp t impv ti tm i,

ci ct i t cqc ot vc

cti v p -cti t Pic pc

cti i mt iv i dm, gm, t uit kim,


89/233

86 | Mm t t n Pit

t nt, bim, gc, spi14 T uit stt i i

t t it i piti i t i t pp

ci iv pctiv , cti i, mi

citizip

T , tt mvi t i t it icti

bt i ti piit, i ic -i

ti vmt p ttic ppti o ti i ci

mi ct , ii ci tm, ii

pic, cpi i mt, ii cit, ici c-

i j mt w ct t t mpic vi, tti ct

pm v t t tt -tm piit:

ci, cic t t

M Pit, cmmitmt t i-qit p-k m ti

t i i c, c it t cmp v t

itim ci Ti i p t cti mt ct ci

t ti pmi t ivt i cti b mi p-

k piit, c ct c tt i t ti t cm

Endnotes1 M, s, op t Pc d, C t Ppti gp, Piv Pic

Ititt, sptm 2004, www.ppionline.org

2 bi dvpmt: ct st, Z t T, http://www.zerotothree.org/site/

PageServer?pagename=ter_key_brainFAQ

3 hcm, Jm J, T C Ivti i divt y Ci, bi

I Ci: Ivti i nti t, it c, sptm 2008

4 hcm op. cit

5 M op. cit

6 T bt hi-Qit P-k: ct st, P-k n, http://www.preknow.org/

policy/actsheets/benefts.cm

7 M op. cit.

8 T stt P-sc 2007, T nti Ititt e ecti rc

sppt T P Cit Tt, 2007

9 T stt Pc 2007 nti Ititt e ecti10 P-k ac t Ct, nti sp st: ct st, P-k n, http://www.

preknow.org/policy/actsheets/snapshot.cm

11 T bt hi-Qit P-k: ct st, P-k n, http://www.preknow.org/

policy/actsheets/benefts.cm

12 Cp, Mt M e lpz, l m mi-stti Itv-


90/233


ti: li m evic-b Pctic, hv mi rc Pjct,

oct 2006

13 ri-a, s dt s stic, e litc: Pic Pctic it Pc y, nti Ititt e ecti rc; h, a

T k Mpp, a n wv evic: T Impct sc, mi

Cmmit Ccti stt acivmt, stt ecti dvp-

mt lt, 2002

14 svt, si s, ici Pc a Ci,: erIC Ci

emt e Ci ecti u I, 1995


91/233


92/233

| 89

part IV

uelIngClean growTh


93/233


94/233

Ptti e i t wit h | 91

To: T n Pit

From: dv e

Re: Ptti e i t wit h

I

t mm 1859, t t cmmci i

pmpi i Titvi, P ov t t

ct, amic ivt t m i cm w iti vti t

, it t p t pt

I m ct , amic m i t

t pc t t t impt

witt tmti t it, t -

cc amic ic p i i imii

cm, itt i pic, t i-

pt t vimt

w c ttmc tt T uit stt t pptit t t ivti ,

cti c, m c, m pp -

t Ti ip i cmptitiv vt


95/233

92 | Mm t t n Pit

t us t ti cm it ici piv

vti i- c sc ip c t ,

vit pt i, cti t t i i-v j

I t t c t ct, i ict tm

pt t vi , t i t it t pic

i tm I t pp tt vt pic iti t

wit h cti nti e Cci (neC) p it t

nti scit Cci t nti ecmic Cci

n m ivtiv cmic, c-

it vimt pic I ct, pic m v i impct

ci t t ti vmt v t t

c iz miitti cci

T nti e Cci pim pp t vi

ivti It t pt cit

it t ci i t dptmt e, t evimt P-

tcti ac, t Iti dptmt I iti, t i t

tcic, pti, ivtmt tt iti t ctc ittt c p t neC c t vpmt , t-

mtiv tci pctic

T neC c i ci t ttic iititiv: vci

cic; mizi t ctic i; pi pivt ivtmt i

c

1. Advancing Science

sic t iti vti, tcic vpmt m-

tip v cmic p T tptti vti tt t pc

t t Civi w t gt dpi t cciv pti

i, tmi ict T m imti-tc v-

ti i t it t cmmciizti cmpt mim

i t 1960 lt, i t 1980, t p PC t t vcpt cic ov t i t c, t vpmt t

cmmci Itt mi vic ct vt pptiti

tp cm li , tc i pi t -

t imi t i t it


96/233

Ptti e i t wit h | 93

a it t tmti tci t 19t 20t cti,

m t mt imptt tci t vp i

t uit stt m p t m i ti, vmt

cmic c t ct v vc t tci tt

p i t ct c m c t

Ti ip piti mt t q

wi t dptmt e pvi imptt i i-

c t t ti , t neC c p t c piiti t

ct T neC t tt pic i T

mt i i tt t vmt t ci t t piv

tc

itc, c-ctt t i p t t-

t c t m ict it t tti ccpt

pic-pic jctiv (ci c mii), i t tt imp

t mt t ptic pct at v t, t neC

t t tt c ct t vc t c

cit i ci pti

2. Building a New Interstate Electricity Grid

a cmmicti tm tii cmmc i t

20t ct, it cm c tt tm cit

t mt vvi m a t t 1940, it ti t t

mt tc cv t c t ct I p t ti itti( t t pciv civi- t mi C w), t

vmt it t itt

Documents

Memos to the New President by the Progressive Policy Institute