“A Growing Inequality”: Not All Kinds Of Inequality Are Created Equal
In America, not all kinds of inequality are created equal.
For the past half-century, the de jure inequality of demographic groups has proven increasingly vulnerable to public pressure. From the Civil Rights Act of 1964 to last week’s Supreme Court decision striking down a key part of the Defense of Marriage Act, legal barriers against racial and sexual minorities as well as women have crumbled. Changes in the law have followed the same pattern: First, a handful of generally radical activists brought attention to the existence of a legal double standard; then, a mass movement grew in support of eliminating discriminatory laws and practices; only after this did government respond with legal remedies.
In each case as well, the movements’ success in diminishing their “otherness” — that is, establishing their full humanity — in the eyes of the majority of their fellow Americans has been key to ending legal discrimination. The shift in public opinion on same-sex marriage, for instance, follows decades when growing numbers of gay men and lesbians felt just secure enough to out themselves to their families, friends and co-workers, in the process normalizing what had been a concealed, and presumably shameful, status. The immigrant rights movement’s focus on the Dream Act kids — young people, many of whom are talented students, brought here as children and still forced to lurk in the shadows — put the most appealing human face on undocumented immigrants. That is at least partly responsible for what is now majority public support for enabling the undocumented to become citizens. (Whether that majority support carries any weight with xenophobic House Republicans, secure in their gerrymandered districts, is another question.)
Some forms of legal inequality persist in other guises. Another Supreme Court decision last week, striking down provisions of the Voting Rights Act that limited discriminatory practices in particular Southern states, will make it easier for black and Latino electoral participation to be limited. Just as those states once required voters to pass absurd tests or pay taxes to vote — measures almost always designed to apply only to blacks — now they will likely require voters to produce documents that the poor and students disproportionately lack (as, in fact, Texas did within hours of the high court’s ruling). Today’s vote supressionists are driven less by discrimination for its own sake than fear that their hold on power will weaken if minorities and the young vote in large numbers.
But while social and legal inequality has diminished over the past century, economic inequality has been on the rise since Ronald Reagan’s presidency. The public policies of the past 30 years — deregulating finance and encouraging the sector’s growth, failing to bolster workers’ declining bargaining power — are rightly understood to have reversed the more egalitarian economic policies of Franklin Roosevelt and Lyndon Johnson. But the economic inegalitarianism of the past three decades also makes a mockery of Thomas Jefferson’s vision of equality, which went beyond mere equality of creation. Jefferson believed that a nation of yeoman farmers was the best defense against the inequalities of wealth and power that would threaten the republic if cities grew too populous. He also believed, of course, in the institution of slavery — the paradox that haunts his legacy and our history to this day.
The belief that diminishing economic inequality would help build a more robust economy underpinned the legislation of both the New Deal and the Great Society. Granting workers the power to bargain with their employers, the preamble to the 1935 National Labor Relations Act states, would increase their capacity to consume and give the economy a shot in the arm. So, too, the 1938 Fair Labor Standards Act, which created the national minimum wage. Social Security and Medicare, by reducing poverty among seniors, also bolstered the national economy. Repeal any one of these and the economy would crumple. Indeed, the de facto repeal of the National Labor Relations Act — as employers have learned to exploit its loopholes and deny employees bargaining power — is a major factor in the decline of wage income.
How, then, do we decrease economic inequality — the one kind of inequality that continues to expand even as other forms contract (if slowly and unevenly)? The challenge isn’t to persuade the majority to embrace a minority but, rather, to embrace itself. Americans tend to blame themselves rather than changes in economic rules and arrangements for failing to achieve financial security. But with most of the nation falling behind, the problem and the solution aren’t individual. Like Jefferson’s generation, Americans must band together to create a more egalitarian land.
By: Harol Meyerson, Opinion Writer, The Washington Post, July 2, 2013
“Pennies On The Dollar”: Congress Is Squandering The Opportunity Of A Lifetime
It’s the first Friday of the month, which means a jobs report. And this one isn’t bad. The economy added a net 195,000 jobs in June, with upwards revisions of 70,000 in April and May. Which means that, so far this year, the economy has added more than 1 million jobs. To repeat a point, this is why the 2012 election was so critical for Democrats—a Mitt Romney win would have given Republicans a chance to claim credit for the current job growth, and use the political capital to push a highly-ideological agenda.
But back to the numbers. Federal government employment dropped by 5,000, a likely result of sequestration, and part of an overall decline of public employment—since 2010, the public sector has shed more than 600,000 jobs. The unemployment rate remained unchanged at 7.6 percent, with a slight drop in long-term unemployment. Still, more than four million people have been out of work for longer than six months.
In other words, despite the improving economy, we’re still stuck in a period of mass unemployment. And, thanks the GOP’s categorical opposition to spending–and stimulus in particular—there’s no chance of relief for the economy.
What’s frustrating—and, given the cost of long-term unemployment to individuals, families, and communities, cruel—is that conditions are perfect for another round of large-scale government spending. Not only are there millions of potential workers (to say nothing of an overall demand shortfall), but—as Suzy Khimm notes for MSNBC—interest rates are still at historic lows. But that won’t last: “Already,” she writes, “there are early warning signs that this era of absurdly cheap borrowing will eventually come to an end: The interest rate on 10-year U.S. Treasury notes—the benchmark for long-term borrowing rates—rose to 2.66% on Monday, the highest rate since August 2011.”
There’s still time to act on this unprecedented opportunity by investing in new infrastructure: We could take advantage of these low rates, borrow, and use the cash to rebuild our roads, bridges, airstrips, and pipelines. The subsequent economic growth—from more jobs and a faster recovery—would be more than enough to pay back whatever we owe when the economy is stronger.
But Republicans have not budged from their commitment to spending cuts, monetary tightening, and other austerity-minded policies. They warn that greater public debt will lead to inflation and low growth, ignoring the extent to which inflation has held steady at just under 2 percent for the last four years, and disregarding the disastrous results of austerity in Europe, which has plunged several countries, including the United Kingdom, into a second recession. Because of this, their House majority, and their ability to filibuster in the Senate, there’s no chance Congress will move on new stimulus, or anything else that could boost the economy.
The sad fact is that the GOP’s dysfunctions—its hyper-ideological approach to government, hostility to liberalism, and opposition to compromise—will keep the United States from capitalizing on one of the great opportunities of the last 20 years. Thanks to GOP-driven gridlock and Washington’s myopic focus on debt reduction, we have squandered a once-in-a-lifetime chance to rebuild this country at pennies on the dollar, and bounce back from a long decade of mismanagement and neglect.
By: Jamelle Bouie, The American Prospect, July 5, 2013
“Rick Perry, Job Poacher”: Southern Grand Larceny With A Very Old Pedigree
Poaching on the labor of others is an ancient and honored Southern tradition, whose antebellum antecedents Texas Governor Rick Perry has recently brought up-to-date with a $1 million advertising campaign to encourage businesses to pack up and come on down to the Lone Star State where the taxes are lower than a worker’s wages.
Called “Texas is calling, your opportunity awaits,” the 30-second TV spots feature business leaders and celebrities like Dallas Cowboys running back Emmitt Smith calling Texas the “land of opportunity” and home of “creative renegades.”
On Fox News, Perry boasted, “Texas has the best business climate in the world. Over the last 10 years, 30% of all the new jobs created in America were in Texas.”
Wooing business from other states is all part of “healthy competition,” says Perry. “It’s the 50 laboratories of innovation that are out competing for the jobs to keep America at the front of the race,” the Governor insists.
Yet, when mayors and governors elsewhere talk about “growing” their economy they mean that literally – as in, creating new jobs where none existed before, from the ground up, nurtured by public-private partnerships, public investments in R&D and good schools, and other initiatives that create real value.
In Boston where I work, the South Boston Seaport District is one of the hottest real estate markets in the country right now, says Moody’s Investor Services, thanks in part to steps that Mayor Tom Menino has taken to make the area a magnet for entrepreneurs — an “Innovation District” — where start-up companies with bright ideas but not much cash can get reasonable financing and available space to help their businesses grow.
Just last week, the Boston Herald reported that the Small Business Administration called Menino’s Innovation District a model for other cities to follow who are interested in creating a cutting-edge start-up culture — “a Mecca for people from all over the world to launch out and build the next big company.”
He credited the city’s Innovation District initiative for creating a “community of entrepreneurship and creativity.”
Winslow Sargeant, chief counsel for the federal agency’s Office of Advocacy, said: “This ecosystem of innovation brings together entrepreneurs to share ideas and bring their vision to the marketplace. It presents a successful model and an ideal avenue for the public and private sectors to partner together for economic success,” he said.
In just three years, Boston’s Innovation District initiative has brought more than 4,000 jobs to the waterfront area.
Boston has become a great place to start a business, said Sargeant, who grew up in the city. “If someone wants to start a company or if someone wants to explore what it takes to, there are people that they can talk to and places they can go to network with others.”
Among the biggest benefits of the district, the Herald says, are the start-up incubators and accelerators that offer shared work spaces. “Magic things happen” when entrepreneurs get together and share work space and ideas, said Ben Einstein, founder of Bolt, one of the companies now operating in the district.
There is another economic development model, however, one favored by Governor Perry and governors throughout the South: Don’t make money the old fashioned way by earning it or actually “creating” anything. Let the Yankees do that with their fancy schools and business incubators. Then, when companies are off the ground and up and running, steal them away like cattle-rustlers in cross-border raids by luring owners with promises of lower taxes, fewer environmental regulations and protections against uppity workers who want a fair day’s pay for an honest day’s labor.
That is what Perry really means when he says that 30% of all the “new” jobs “created” in America were in Texas – proof of which is the $1 million Texas is now spending to steal other state’s jobs away from them.
There is political as well as economic method to Governor Perry’s madness since his desperado tactics are never aimed against other Republican governors, but only blue state Democratic ones in target-rich “enemy” territory.
Perry recently traveled to New York and Connecticut on a four-day trip to lure businesses away from those states. The trip comes on the spurred-heels of earlier raids into California and Illinois where Perry showed ads depicting an emergency exit door under the headline: “Get out while you still can.”
Both Perry’s trips and the ad campaign are being paid for by a group called TexasOne, which is a coalition of corporations and local chambers of commerce.
This sort of Southern grand larceny has a very old pedigree. A cold and forbidding climate like New England’s grows a population that must be skilled at living by its wits and the “Yankee Ingenuity” that cemented New England’s reputation as home to world-class education, the textile mills of Lawrence and Lowell that gave birth to America’s industrial revolution, and the Yankee traders who invented, then sailed, world-famous clipper ships like the Flying Cloud and Sovereign of the Seas.
A hot and humid climate like the South, rich in natural resources, on the other hand, tends to spawn a class of indolent, parasitic oligarchs whose labor saving inventions consist almost entirely of exploiting the labor of others.
In short, what we have in New England is called “entrepreneurial capitalism,” which means using the state as partner to nurture good ideas and develop them into profitable companies, perhaps whole new industries.
What Governor Perry exports from Texas, on the other hand, is “crony capitalism,” using the power of the state to enrich and reward powerful insiders, not by creating new opportunities but by lowering the rewards workers get from those opportunities that already exist.
And now that the GOP has become a Southern Party, Republicans have inherited the most disreputable features of what author Michael Lind calls this “Southernomics” as well.
It was not always thus. Between the 1930s and 1970s, so-called “modern Republicans” like Dwight Eisenhower and Richard Nixon tried to level the playing field among the states — not through regressive tax and labor policies — but through revenue sharing and other public investments in infrastructure, writes Lind in Made in Texas: George W. Bush and the Southern Takeover of American Politics.
Ironically, then, modern Republicans and New Deal modernists built an infrastructure for the South and West that traditional conservatives inherited and were able to use for their own “illiberal purposes,” says Lind.
It is no coincidence, says Lind, that the two biggest companies to fail during the Bush administration – Enron and WorldCom – were both Southern.
Entrepreneurial or “bourgeois” capitalism is alien to Texas and other Southern states, he says, because “crony capitalism is the only kind familiar to the Southern oligarchs, decedents of planters who could not balance their books and knights who despised mere trade.”
The lesson from these scandals, says Lind, as well as Governor Rick Perry’s politically-motivated raids against Democratic economies, is not that capitalism is unworkable, but that “capitalism only works where there are real capitalists.”
By: Ted Frier, Open Salon Blog, July 4, 2013
“Gun-Crazy Business Models”: Beretta USA Teaches Us How Not To Run Your Corporation
We often think of business leaders as hard-nosed pragmatists, guided by dollars and cents with little regard to emotion. But the truth is that corporate executives are human just like the rest of us. They can be as irrational as anyone, and frequently make business decisions on the basis of things like spite.
So it is that the gun maker Beretta USA has decided against expanding operations into West Virginia, despite heavy lobbying from state officials, because, as the Charleston Gazette reports, “they say Sen. Joe Manchin’s push to expand background checks makes the state less stable for their business.” Perhaps the folks at Beretta don’t quite understand what a senator does, or how laws passed (or in this case, not passed) by Congress actually work. If Congress were to pass a background check bill for the country, it wouldn’t make the state of West Virginia any more or less “stable” for the gun business than any other state.
And after all, business is booming. It isn’t that more Americans are buying guns (gun ownership is on a steady long-term decline), but that those who do own guns are buying more and more of them. That’s why companies like Beretta have forged such a close alliance with the National Rifle Association. The NRA tells its constituents that the country is about to descend into a Mad Max-style apocalypse and that politicians will be confiscating their guns any day, so they rush out to buy more, and the gun manufacturers reap the profits.
A new background check law might help keep guns out of the hands of some people who shouldn’t have them, but it probably wouldn’t hurt Beretta’s bottom line one bit. They’re in a business that has gone nowhere but up. Nevertheless, like other gun advocates, they want to think of themselves as oppressed, kept down by mean politicians in their crusade for liberty. But wherever they decide to move those couple of hundred jobs, they’ll be just fine.
And by the way, in the six and a half months since the Sandy Hook massacre, roughly 5,600 Americans have been killed with guns.
By: Paul Waldman, Contributing Editor, The American Prospect, July 1, 2013
“Whether The Pretense Makes Sense Is Irrelevant”: The War On Voting In A Post Voting Rights Act World Just Got Worse
In North Carolina, thanks to Republican gains in the 2010 state elections, the congressional district lines already drawn in such a comically gerrymandered way, the state’s delegation bears little resemblance to the actual wishes of voters. In 2012, for example, a majority of North Carolinians voted for Democratic congressional candidates, and yet, only 4 of the state’s 13 members of the U.S. House are Democrats.
But as the Los Angeles Times reports today, that’s apparently not quite good enough for GOP state policymakers. In a story Rachel has covered on the show, now that the district lines have been gerrymandered to ensure a Republican advantage regardless of voters’ wishes, the next step is to restrict voters’ access to their own democracy.
The GOP chairman of the state Senate rules committee, Sen. Tom Apodaca, said he would move quickly to pass a voter ID law that Republicans say would bolster the integrity of the balloting process. GOP leaders also began engineering an end to the state’s early voting, Sunday voting and same-day registration provisions, all popular with black voters. Civil rights groups say the moves are designed to restrict poll access by blacks, who vote reliably Democratic.
Up until about a week ago, this would ordinarily be the point at which voting-rights advocates, civil rights activists, and anyone concerned with voter access and election fairness would say, “Whew, it’s a good thing the Voting Rights Act still exists. There’s no way these North Carolina’s measures will pass muster.”
But all of that changed rather abruptly when five justices on the U.S. Supreme Court gutting the Voting Rights Act and gave GOP policymakers in North Carolina and elsewhere a green light to start restricting Americans’ access to the ballot box. It is open season on voting rights and Republicans throughout the South are seizing the opportunity.
Originally, GOP lawmakers in North Carolina held back on pursuing voter-ID laws, knowing how racially discriminatory they are. But thanks to the Supreme Court, they no longer care.
What’s especially interesting to me as how thin the pretense is. At least on the surface, Republicans say they need to impose the harshest voting restrictions since Jim Crow to prevent “voter fraud.” In reality, such fraud is practically non-existent, but it nevertheless serves as a convenient pretense. But how does ending Sunday voting prevent fraud? Why eliminate early-voting opportunities and make longer voting lines, neither of which relate to fraud at all?
Of course, questions like these only matter if there’s a real debate, and with Republicans controlling North Carolina’s legislature and governor’s office, whether the pretense makes sense or not is apparently irrelevant.
By: Steve Benen, The Maddow Blog, July 2, 2013
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