In Chapter Five, Barack writes about U.S. economic policy. Globalization of the world marketplace, poor inner-city schools, rising health care costs, and dependence on foreign oil are major challenges to America's promise of opportunity for everyone. Barack suggests a pragmatic approach that seeks a balance between the public and private sectors. He understands that the free market is a great innovator, but fails to pass on its fruits to the poor. The government can successfully invest in infrastructure as well as social programs, but too much bureaucracy can also be wasteful and inefficient. Barack agrees with Warren Buffet when he says (page 190):
“The free market's the best mechanism ever devised to put resources to their most efficient and productive use...The government isn't particularly good at that. But the market isn't good at making sure that the wealth that's produced is being distributed fairly or wisely. Some of that wealth has to be plowed back into education, so that the next generation has a fair chance, and to maintain our infrastructure, and provide some sort of safety net for those who lose out in a market economy. And it just makes sense that those of us who've benefited most from the market should pay a bigger share.”
Rare words from a multi-billionare.
My personal roots are Libertarian, and I used to lean heavily towards ideas of laissez-faire and small government. I read a lot of Ayn Rand in high school. Most of this idealism has diminished in me since then. My college years as well as my career have taught me important lessons. I have worked in a white-collar “cubicle” environment. I have worked for both union and non-union factories. When reading this chapter, I am reminded that there are no absolutes in the marketplace. I get sticker-shock from all the government spending that Barack proposes. Most of this is necessary. The most important piece is an investment in our teachers. They are entrusted with the task of enlightening and teaching our kids. In my opinion, teachers should be respected on par with doctors and engineers and should be payed on equal terms!
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