“Real Vs. Republican Populism”: How To Win The War On Inequality
So Republicans are going populist, or at least two of them are, reports The Daily Beast’s Patricia Murphy. And perhaps it’s only in the sense that unlike Mitt Romney and many in the House GOP, they’re not speaking of working people with contempt. Well, it’s a start. But I wish they’d pick up copies of Thomas Piketty’s Capital in the Twenty-First Century. Oh, of course Ted Cruz and Rand Paul would find ways to pooh-pooh the book’s findings and conclusions, but it’s nice to think of them merely having to immerse themselves in empirical reality for a few hours instead of the magical economic fairy tales that undoubtedly constitute their usual diet.
If you’ve not heard of Piketty or Capital, it’s certainly the economic book of the year, and probably of the decade so far. (You can read Paul Krugman’s rave in The New York Review of Books here.) I admit I’ve only waded into it so far, but I went to see the author, a French economist, speak at the Economic Policy Institute in Washington to a room full of people who braved a hideous, monsoon-ish rain Tuesday morning. (The video of the event is here.) What Piketty has done, my economist friends tell me, is nothing short of revolutionary and deserves to change the way we think about wealth and inequality. Much more important, it also deserves to alter what we do about them.
Here’s the story in a ridiculously small nutshell. Thirty scholars collected data from 20 countries over about 100 years. Piketty pored over the data trying to pinpoint salient reasons for our insane levels pf income inequality, which is worse in the United States, where the richest 1 percent own nearly 40 percent of the wealth, than in most other advanced countries but hardly endemic to America.
The one key: In all times and places under study, the rate of return on capital increases at a faster rate than general economic growth. Growth averages 1, 1.5 percent. Rate of return averages 4 or 5 percent. So presto, the people with the capital—money and assets of all kinds, land and equipment and what have you—are getting richer a lot faster than the rest of us. And as Nobel Prize-winning economist Robert Solow, a panelist at the event, pointed out: “Note that this is not a market failure.” This disparity (r > g, in wonk-speak) is a feature, not a bug, as they say, and it’s just our fate, and on and on it shall go, as the rivers roll to the sea.
And is there anything we can do to mitigate this? Three things, said panelist Josh Bivens of the Economic Policy Institute: 1) Make sure more people enjoy more access to r; 2) raise g; 3) lower r.
Now, if you are reasonably conversant in our economic debates, you already have some idea of what all this means. It means what Cruz and Paul would call “socialism” and what I would call “the kinds of reasonable, worker-focused economic policies this country had for about 40 years that were, on balance, the best years this country ever had.” We had large-scale public investment, near full employment at times, a more heavily unionized work force, a minimum wage that until 1968 kept pace with productivity, a more progressive tax system, a much more heavily regulated financial sector in which banks couldn’t gamble against themselves, and all the rest. Even with all these measures in place, r still grew faster than g, but not the way it does in today’s America.
In other words, Piketty makes the case that inequality will just grow and grow unless societies take affirmative steps to reduce the gap between the rate of return on capital and overall economic growth. The problem is the old one: In our present political climate, there’s not a chance of that happening.
As I sat there Tuesday morning, I kept wondering to myself: Is there any way a politician, a presidential candidate, can turn these concepts into plain English, something that can capture people’s imaginations—an answer to the right’s vacuous “a rising tide lifts all boats,” but which happens to have the benefit of being true? We now have ample evidence that the “rising tide” of the better part of the last 30 years has not lifted all boats. The ocean liners are getting farther and farther away from the pack.
I think there must be a way, but before we ponder that question, we first have to wonder whether the presidential candidate I have in mind (it’s not Cruz or Paul) even believes all this. I think she does, or most of it. But this is class politics—not “class warfare,” just class politics—and that hasn’t exactly been Hillary Clinton’s game over the years. The great question looming over her expected campaign is the extent to which she’ll address the inequality crisis head on.
Given the 1 percent’s ownership of our political system these days, we’re probably stuck with living out this crisis for a very long time, until even the 1 percenters are finally forced to agree that something has to be done. We seem a long way away from that. But things do change sometimes. “In 1910 in America, everybody would have said a progressive income tax was impossible,” Piketty said Tuesday. “It could not be permissible under the Constitution, and so forth. But, you know, things happen.” Three years later, we had one. So it’s not impossible. And if trickle-down could start on a dinner napkin, surely the process of reversing its malignant effects can start with a book.
By: Michael Tomasky, The Daily Beast, April 16, 2014
“Is It Constitutional, The Civil Rights Act?”: Learning To Live With The Civil Rights Act, 50 Years Later
Freshman U.S. Rep. Ted Yoho (R-FL) has mainly drawn attention as a Tea Party ultra who somehow managed to draw a Tea Party ultra ultra 2014 primary opponent with rather exotic extracurricular activities.
But he may be fairly typical of his ideological cohort in having some, well, problems coming to grips with major legislation enacted a half-century ago, per this report from Scott Keyes of Think Progress:
Rep. Ted Yoho (R-FL), a freshman congressman aligned with the Tea Party, held a town hall Monday evening in Gainesville where he fielded a wide range of questions from constituents. One such voter was Melvin Flournoy, a 57-year-old African American from Gainesville, who asked Yoho whether he believes the Civil Rights Act is constitutional.
The easy answer in this case — “yes” — has the benefit of also being correct. But Yoho found the question surprisingly difficult.
“Is it constitutional, the Civil Rights Act?” Yoho repeated before giving his reply: “I wish I could answer that 100 percent.” The Florida Republican then went on to strongly imply it may be unconstitutional: “I know a lot of things that were passed are not constitutional, but I know it’s the law of the land.”
Well, that’s mighty nice of him to acknowledge the Supremacy Clause, not a universal tendency among self-styled Constitutional Conservatives.
But the difficulty a lot of CCers have with the Civil Rights Act–which almost certainly exceeds public expression, given the rather controversial nature of fighting the particular lost cause that helped sink their predecessor Barry Goldwater’s 1964 presidential campaign–comes from three distinct but interrelated sources. The wonkiest issue is hostility to the Commerce Clause jurisprudence on which the Public Accommodations section of the Civil Rights Act relied for regulating private discriminatory business practices. It’s very common in conservative legal circles to deplore the extension of federal power via the Commerce Clause during a chain of Supreme Court decisions beginning in the 1930s; Chief Justice Roberts famously refused to accept a Common Cause rationale for the Affordable Care Act of 2010.
A second argument that would have been more familiar to Goldwater and to the southern segregationists who flocked to his 1964 campaign is a states’ rights objection to federal regulation of race relations. While today’s neo-secessionists would try to stay a million miles from racial issues in arguing that “state sovereignty” retains meaning even after the Civil War, it still has a ghostly power in conservative circles.
And then there is the idea, embraced off-and-on by the Paul family, that the Civil Rights Act simply violates fundamental principles of private property rights that cannot be trammeled for any cause, however justifiable.
It’s unclear which of these conservative concerns about the Civil Rights Act Ted Yoho shares, notwithstanding his willingness to bend the knee to the “law of the land.” But it’s interesting that he and other constitutional conservatives can’t quite suppress their discomfort with a legal regime that ensures people aren’t denied access to restaurants and hotels and other business because of the color of their skins.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, April 15, 2014
“If We All Lose Together, We Practically Win Together”: Oklahoma Governor Mary Fallin Makes It Illegal To Establish A Minimum Wage
In a move that fits seamlessly into the GOP’s War on the War on Poverty, Oklahoma governor Mary Fallin (R) has signed a bill into law that prohibits cities in the state from establishing mandatory minimum wages or vacation and sick-day requirements. The new law’s proponents claim that such a ban is necessary for economic homogeneity across the state, as allowing different municipalities to have different minimum wages could draw work disproportionately away from or towards certain cities. In essence, it seems that the logic goes something like this — if we all lose together, we practically win together.
According to Rep. Randy Grau (R-Edmond), the bill’s main supporter in the House, the ban provides ”safeguards that protect small businesses and consumers,” while raising the minimum wage “could derail local economies in a matter of months.” According to Grau, without a “level playing field” across the state, it seems that economic prosperity would all but perish. Currently, Oklahoma’s minimum wage stands at $7.25, equal to the federal level.
The bill was officially passed by Oklahoma’s House of Representatives on Tuesday.
Oklahoma’s new law comes only two months after Governor Fallin, the chair of the National Governors Association, led a national conference of governors that clashed over President Obama’s proposal to increase the national minimum wage to $10.10. In February, Obama signed an executive order that required federal contractors to pay their employees $10.10 an hour. But Gov. Fallin, along with many of her Republican colleagues, found the minimum-wage hike to be poor planning.
Claiming that the market would “take care of itself,” Governor Fallin insisted that a higher minimum wage was not only unnecessary, but actively harmful to the American economy.
“I’m not for increasing the minimum wage because I’m concerned it would destroy jobs, especially for small-business owners,” she said at the time. Her concerns were quickly echoed by GOP leaders, who latched onto a Congressional Budget Office report that said raising the minimum wage by nearly $3 could reduce jobs in 2016 by about 500,000. Of course, the CBO also found that approximately 45 million Americans would fall below the poverty line in 2016 if the minimum wage were to remain at its current level. That finding was handily ignored.
Many critics say that Fallin’s new measure unfairly targets Oklahoma City, where proponents of Obama’s $10.10 wage are collecting signatures to support the increase. The author of the initiative petition, lawyer David Slain, told the Associated Press that he was disappointed that state lawmakers “would vote in such a way to take the right of the people to decide minimum wage.”
In a press release on Monday, Governor Fallin insisted that increasing the minimum wage is not the path out of poverty that Democrats suggest it is, stating:
“Most minimum-wage workers are young, single people working part-time or entry-level jobs. Many are high school or college students living with their parents in middle-class families. Mandating an increase in the minimum wage would require businesses to fire many of those part-time workers. It would create a hardship for small business owners, stifle job creation and increase costs for consumers, and it would do all of these things without even addressing the goal of reducing poverty.”
Governor Fallin, once again, seemed to ignore the CBO’s report that such an increase could boost collective earnings by $31 billion for 33 million low-wage workers and bring an estimated 900,000 people out of poverty. But who’s counting?
By: Lulu Chang, The National Memo, April 15, 2014
“The Oldest Hatred, Forever Young”: When Hatred Is Loosed, We’re All In The Crossfire
Most of the hate crimes in the United States don’t take the fatal form that the shootings in Kansas over the weekend did, and most aren’t perpetrated by villains as bloated with rage and blinded by conspiracy theories as the person accused in this case, Frazier Glenn Miller. He’s an extreme, not an emblem.
This is someone who went on Howard Stern’s radio show four years ago (why, Howard, did you even hand him that megaphone?) and called Adolf Hitler “the greatest man who ever walked the earth.” When Stern asked Miller whether he had more intense antipathy for Jews or for blacks (why that question?), Miller chose the Jews, definitely the Jews, “a thousand times more,” he said.
“Compared to our Jewish problem, all other problems are mere distractions,” he declaimed, and he apparently wasn’t just spouting off. He was gearing up.
On Sunday, according to the police, he drove to a Jewish community center in Overland Park, Kan., and opened fire, then moved on to a nearby Jewish retirement home and did the same. Three people were killed.
They were Christian, as it happens. When hatred is loosed, we’re all in the crossfire.
On Monday, as law enforcement officials formally branded what happened in Kansas a hate crime, I looked at the spectrum of such offenses nationally: assault, intimidation, vandalism.
The Federal Bureau of Investigation keeps statistics, the most recent of which are for 2012. In the United States that year there were 6,573 hate-crime incidents reported to the bureau (a fraction, no doubt, of all that occurred). While most were motivated by race, about 20 percent were motivated by the victims’ perceived religion — roughly the same percentage as those motivated by the victims’ presumed sexual orientation. I didn’t expect a number that high.
Nor did I expect this: Of the religion-prompted hate crimes, 65 percent were aimed at Jews, a share relatively unchanged from five years earlier (69 percent) and another five before that (65 percent). In contrast, 11 percent of religious-bias crimes in 2012 were against Muslims.
Our country has come so far from the anti-Semitism of decades ago that we tend to overlook the anti-Semitism that endures. We’ve moved on to fresher discussions, newer fears.
Following 9/11, there was enormous concern that all Muslims would be stereotyped and scapegoated, and this heightened sensitivity lingers. It partly explains what just happened at Brandeis University. The school had invited Ayaan Hirsi Ali, a celebrated advocate for Muslim women, to receive an honorary degree. But when some professors and students complained, citing statements of hers that seemed broadly derisive of Islam, the invitation was withdrawn. Clearly, university officials didn’t want their campus seen as a cradle or theater of Islamophobia.
But other college campuses in recent years have been theaters of anti-Israel discussions that occasionally veer toward, or bleed into, condemnations of Jews. And while we don’t have the anti-Semitism in our politics that some European countries do, there’s still bigotry under the surface. There are still caricatures that won’t die.
One of them flared last month on the Christian televangelist Pat Robertson’s TV show. His guest was a rabbi who, shockingly, was himself trafficking in the notion that Jews excel at making money. The rabbi said that a Jew wouldn’t squander a weekend tinkering with his car when he could hire a mechanic and concentrate on something else.
“It’s polishing diamonds, not fixing cars,” Robertson interjected.
Polishing diamonds?
In a 2013 survey of 1,200 American adults for the Anti-Defamation League, 14 percent agreed with the statement that “Jews have too much power” in our country, while 15 percent said Jews are “more willing to use shady practices” and 30 percent said that American Jews are “more loyal to Israel” than to the United States.
That’s disturbing, as is the way in which the Holocaust is minimized by its repeated invocation as an analogy. In separate comments this year, both the venture capitalist Tom Perkins and Kenneth Langone, one of the founders of Home Depot, said that the superrich in America were being vilified the way Jews in Nazi Germany had been.
It’s not just Kansas and the heartland where anti-Semitism, sometimes called the oldest hatred, stays young.
A story in The Times last year focused on an upstate New York community in which three Jewish families filed suit against the school district, citing harassment of Jewish students by their peers. The abuse included Nazi salutes and swastikas drawn on desks, on lockers, on a playground slide.
When a parent complained in 2011, the district’s superintendent responded, in an email: “Your expectations for changing inbred prejudice may be a bit unrealistic.”
Well, the only way to breed that prejudice out of the generations to come is never to shrug our shoulders like that — and never to avert our eyes.
By: Frank Bruni, Op-Ed Columnist, The New York Times, April14, 2014
“ABC News’ Rightward Lurch”: Scraping The Bottom Of The Right-Wing Pundit Barrel
ABC News recently hired Laura Ingraham to be a regular contributor to their prestigious Sunday morning political talk show, “This Week With George Stephanopoulos.” Why on earth would anyone hire Ingraham, a second-rate right-wing bomb-thrower whose shtick is well past its sell-by date? You could ask ABC News, but they’d presumably answer with boilerplate press release-ese about how they seek out a “diversity of viewpoints” and welcome her “provocative” take on world events. Read Digby for a good rundown of exactly how provocative Ingraham’s hot takes have been — Ingraham’s greatest hits includes writing a book in which a central, reoccurring joke was that Michelle Obama constantly ate or craved ribs — but Ingraham’s not the only sorry character ABC has picked up recently.
Last October, “This Week” hired Bill Kristol, the bumbling neoconservative scion, who is famous for his disastrous predictions and his even more disastrous lobbying for war.
In addition to being morally culpable for the meaningless violent deaths of hundreds of thousands, Kristol is also a terrible pundit. He is not just terrible at predictions, he is also dull. He was too lazy a writer and thinker for the New York Times — a paper that still pays Thomas Friedman handsomely — leading them to decline to renew his contract after one year as a columnist. (He moved, naturally, to the Washington Post.) Only a Sunday show producer (or Washington Post opinion page editor) could imagine that Bill Kristol’s take on the issues of the day would be useful or enlightening or even entertaining to anyone.
More recently, ABC picked up Ray Kelly (as a “consultant,” not a mere contributor). Kelly is the former police commissioner of New York City, best known for his racist policing tactics and his blatantly dishonest defenses of same. In November 2013, New York City voters overwhelmingly voted to elect as mayor a man who made the removal of Kelly, and the complete rejection of Kelly’s entire philosophy of policing, a cornerstone of his campaign. Kelly, whose police department routinely lied to journalists (and beat and arrested a few too), is considered a law enforcement genius, because violent crime in New York, having already plummeted from a historic high years prior to the election of Michael Bloomberg, remained relatively low during Kelly’s tenure as commissioner, probably due to environmental and historical trends. He is also considered a great and important man because he knows how to schmooze with the smart set.
Kelly worked for a Democratic mayor and a centrist independent one. He considered running for office as a Republican, but he is probably more of an authoritarian “centrist” than a movement conservative. Still that’s three hires in six months that ought to disgust any decent person. (Even conservatives, who ought to be embarrassed to be “represented” by Ingraham and Kristol). Whatever does it mean?
Perhaps ABC News is repositioning itself as more conservative. NBC’s “Meet the Press” is struggling. It’s easy to imagine a television professional thinking that NBC’s problem is that viewers think it is too liberal, and that therefore the best way to beat it is to become more conservative. Perhaps they are over-correcting for the fact that “This Week’s” Stephanopoulos is a former Clinton White House operative, although at this point that was a lifetime ago, and George has been studiously centrist ever since.
As has been well-documented, none of the big network Sunday shows are remotely liberal, “This Week” included. According to Media Matters’ research, in 2013, “This Week’s” guests and panel lineups were not appreciably more left-wing than its major competitors. (Fox’s Sunday show was significantly more conservative, but that show isn’t aimed at the same “insider” Acela corridor “centrist” audience that the other three fight for.) All the networks skew white, male and right-wing. If ABC is aiming to win over a more conservative audience, it seems to be scraping the bottom of the right-wing pundit barrel.
But maybe there was no strategic thinking behind these three hires at all. Maybe each one just made sense to whomever was responsible at the time. Maybe three completely odious people who do not in any way deserve such large and well-compensated platforms for their discredited opinions all just got hired by the same network because the news media elite, like the finance and political elite, refuse or are unable to recognize the obvious and total moral bankruptcy of members of their own clan.
Or maybe Bill Kristol just has an amazing agent.
By: Alex Pareene, Salon, April 15, 2014
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