President Obama | Syracuse Journal of Law & Civic Engagement

Lisa Dolak and Fareed Zakaria on the Need For Infrastructure Investment

After returning to Syracuse from a weekend at home, I decided to catch up with Ivory Tower, which I had DVR’ed. Moderated by Barbara Fought (Newhouse School of Public Communications at Syracuse University), this edition of Ivory Tower featured a powerhouse panel including: Tim Byrnes (Colgate University), Bob Greene (Cazenovia College), Bob Spitizer (SUNY Cortland), Kristi Andersen (Maxwell School of Syracuse University) and Lisa Dolak (Syracuse University College of Law).

The panel discussed President Obama’s State of the Union Address and its most promising proposals. During this discussion, Professor Lisa Dolak described the President’s call to invest in infrastructure as a “win-win” (9:45) She explained that investing in infrastructure would not only fix our crumbling roads and bridges but would also put millions of Americans back to work.

Fareed Zakaria agrees and goes a step further. According to Zakaria, investing in infrastructure would “win-win-win.” In addition to the benefits Prof. Dolak describes, Zakaria points out that infrastructure spending is fiscally responsible. This is so for two reasons. First, fixing our infrastructure is an investment that needs to be made whether sooner or later. However, if we wait to fix our our roads and bridges the costs will be greater since there will be further, more serious deterioration. Second, investing in infrastructure would boost growth and thereby decrease the debt and deficit.

Extreme Swiss Inequality Reforms

President Obama recently stated that inequality is a “defining challenge” for the United States. Meanwhile, Fareed Zakaria reported that Switzerland, a country with significantly less inequality than the US, considered radical reforms to reduce inequality, including capping executive compensation.

Here is the beginning of the segment from Fareed Zarakia GPS:

If there’s one country in the world that looks like a utopia, its name must be Switzerland. This is a country that has it all. The average income is $82,000 a year – 65 percent more than the average American income. Everyone has great healthcare, childcare, and education. The unemployment rate is 3 percent. There is almost no corruption. According to the OECD, of 34 developed countries surveyed, the Swiss have the greatest degree of trust in their government. And, of course, it is a spectacular country with great traditions of skiing, cheese, chocolate, and wine.

What could possibly go wrong? Well, quite a lot, actually.

The Swiss are furious about income inequality. The story is a familiar one. According to Reuters, in 1984 top earners in Swiss firms made 6 times as much as the bottom earners. Today, they make 43-times what bottom earners make. At some banks and firms, CEOs make 200-times the salary of the lowest-paid employee.

Now, before you assume things about Europe and European attitudes towards capitalism, remember that Switzerland is one of the most business-friendly countries in the world. The conservative Heritage Foundation has an “Index of Economic Freedom.” Switzerland ranks 5th in the world, well ahead of the United States of America.

But in the aftermath of the financial crisis, the Swiss have become far more concerned about the nature of today’s free market system. So, some Swiss political groups came up with a plan. It’s called the 1 is to 12 initiative. The highest-paid company executive should make a maximum of 12 times what the lowest-paid employee makes. In other words, no one should earn more in one month than someone else makes in a year.