“America’s ‘We’ Problem”: Being Rich In Today’s America Means Not Having To Come Across Anyone Who Isn’t
America has a serious “We” problem — as in “Why should we pay for them?”
The question is popping up all over the place. It underlies the debate over extending unemployment benefits to the long-term unemployed and providing food stamps to the poor.
It’s found in the resistance of some young and healthy people to being required to buy health insurance in order to help pay for people with preexisting health problems.
It can be heard among the residents of upscale neighborhoods who don’t want their tax dollars going to the inhabitants of poorer neighborhoods nearby.
The pronouns “we” and “they” are the most important of all political words. They demarcate who’s within the sphere of mutual responsibility, and who’s not. Someone within that sphere who’s needy is one of “us” — an extension of our family, friends, community, tribe – and deserving of help. But needy people outside that sphere are “them,” presumed undeserving unless proved otherwise.
The central political question faced by any nation or group is where the borders of this sphere of mutual responsibility are drawn.
Why in recent years have so many middle-class and wealthy Americans pulled the borders in closer?
The middle-class and wealthy citizens of East Baton Rouge Parish, Louisiana, for example, are trying to secede from the school district they now share with poorer residents of town, and set up their own district funded by property taxes from their higher-valued homes.
Similar efforts are underway in Memphis, Atlanta, and Dallas. Over the past two years, two wealthy suburbs of Birmingham, Alabama, have left the countywide school system in order to set up their own.
Elsewhere, upscale school districts are voting down state plans to raise their taxes in order to provide more money to poor districts, as they did recently in Colorado.
“Why should we pay for them?” is also reverberating in wealthy places like Oakland County, Michigan, that border devastatingly poor places like Detroit.
“Now, all of a sudden, they’re having problems and they want to give part of the responsibility to the suburbs?” says L. Brooks Paterson, the Oakland County executive. “They’re not gonna talk me into being the good guy. ‘Pick up your share?’ Ha ha.”
But had the official boundary been drawn differently so that it encompassed both Oakland County and Detroit – say, to create a Greater Detroit region – the two places would form a “we” whose problems Oakland’s more affluent citizens would have some responsibility to address.
What’s going on?
One obvious explanation involves race. Detroit is mostly black; Oakland County, mostly white. The secessionist school districts in the South are almost entirely white; the neighborhoods they’re leaving behind, mostly black.
But racisim has been with us from the start. Although some southern school districts are seceding in the wake of the ending of court-ordered desegregation, race alone can’t explain the broader national pattern. According to Census Bureau numbers, two-thirds of Americans below the poverty line at any given point identify themselves as white.
Another culprit is the increasing economic stress felt by most middle-class Americans. Median household incomes are dropping and over three-quarters of Americans report they’re living paycheck to paycheck.
It’s easier to be generous and expansive about the sphere of ”we” when incomes are rising and future prospects seem even better, as during the first three decades after World War II when America declared war on poverty and expanded civil rights. But since the late 1970s, as most paychecks have flattened or declined, adjusted for inflation, many in the stressed middle no longer want to pay for “them.”
Yet this doesn’t explain why so many wealthy America’s are also exiting. They’ve never been richer. Surely they can afford a larger “we.” But most of today’s rich adamantly refuse to pay anything close to the tax rate America’s wealthy accepted forty years ago.
Perhaps it’s because, as inequality has widened and class divisions have hardened, America’s wealthy no longer have any idea how the other half lives.
Being rich in today’s America means not having to come across anyone who isn’t. Exclusive prep schools, elite colleges, private jets, gated communities, tony resorts, symphony halls and opera houses, and vacation homes in the Hamptons and other exclusive vacation sites all insulate them from the rabble.
America’s wealthy increasingly inhabit a different country from the one “they” inhabit, and America’s less fortunate seem as foreign as do the needy inhabitants of another country.
The first step in widening the sphere of “we” is to break down the barriers — not just of race, but also, increasingly, of class, and of geographical segregation by income — that are pushing “we Americans” further and further apart.
By: Robert Reich, The Robert Reich Blog, February 14, 2014
“Inequality, Dignity And Freedom”: People Least Inclined To Respect Efforts Of Ordinary Workers Are Winners Of The Wealth Lottery
Now that the Congressional Budget Office has explicitly denied saying that Obamacare destroys jobs, some (though by no means all) Republicans have stopped lying about that issue and turned to a different argument. O.K., they concede, any reduction in working hours because of health reform will be a voluntary choice by the workers themselves — but it’s still a bad thing because, as Representative Paul Ryan puts it, they’ll lose “the dignity of work.”
So let’s talk about what that means in 21st-century America.
It’s all very well to talk in the abstract about the dignity of work, but to suggest that workers can have equal dignity despite huge inequality in pay is just silly. In 2012, the top 40 hedge fund managers and traders were paid a combined $16.7 billion, equivalent to the wages of 400,000 ordinary workers. Given that kind of disparity, can anyone really believe in the equal dignity of work?
In fact, the people who seem least inclined to respect the efforts of ordinary workers are the winners of the wealth lottery. Over the past few months, we’ve been harangued by a procession of angry billionaires, furious that they’re not receiving the deference, the acknowledgment of their superiority, that they believe is their due. For example, last week the investor Sam Zell went on CNN Money to defend the 1 percent against “envy,” and he asserted that “the 1 percent work harder. The 1 percent are much bigger factors in all forms of our society.” Dignity for all!
And there’s another group that doesn’t respect workers: Republican politicians. In 2012, Representative Eric Cantor, the House majority leader, infamously marked Labor Day with a Twitter post celebrating … people who start their own businesses. Perhaps Mr. Cantor was chastened by the backlash to that post; at a recent G.O.P. retreat, he reportedly urged his colleagues to show some respect for Americans who don’t own businesses, who work for someone else. The clear implication was that they haven’t shown that kind of respect in the past.
On the whole, working Americans are better at appreciating their own worth than either the wealthy or conservative politicians are at showing them even minimal respect. Still, tens of millions of Americans know from experience that hard work isn’t enough to provide financial security or a decent education for their children, and many either couldn’t get health insurance or were desperately afraid of losing jobs that came with insurance until the Affordable Care Act kicked in last month. In the face of that kind of everyday struggle, talk about the dignity of work rings hollow.
So what would give working Americans more dignity in their lives, despite huge income disparities? How about assuring them that the essentials — health care, opportunity for their children, a minimal income — will be there even if their boss fires them or their jobs are shipped overseas?
Think about it: Has anything done as much to enhance the dignity of American seniors, to rescue them from the penury and dependence that were once so common among the elderly, as Social Security and Medicare? Inside the Beltway, fiscal scolds have turned “entitlements” into a bad word, but it’s precisely the fact that Americans are entitled to collect Social Security and be covered by Medicare, no questions asked, that makes these programs so empowering and liberating.
Conversely, the drive by conservatives to dismantle much of the social safety net, to replace it with minimal programs and private charity, is, in effect, an effort to strip away the dignity of lower-income workers.
And it’s something else: an assault on their freedom.
Modern American conservatives talk a lot about freedom, and deride liberals for advocating a “nanny state.” But when it comes to Americans down on their luck, conservatives become insultingly paternalistic, as comfortable congressmen lecture struggling families on the dignity of work. And they also become advocates of highly intrusive government. For example, House Republicans tried to introduce a provision into the farm bill that would have allowed states to mandate drug testing for food stamp recipients. (A commenter on my blog suggested mandatory drug tests for employees of too-big-to-fail financial institutions, which receive large implicit subsidies. Now that would really cause a panic.)
The truth is that if you really care about the dignity and freedom of American workers, you should favor more, not fewer, entitlements, a stronger, not weaker, social safety net.
And you should, in particular, support and celebrate health reform. Never mind all those claims that Obamacare is slavery; the reality is that the Affordable Care Act will empower millions of Americans, giving them exactly the kind of dignity and freedom politicians only pretend to love.
By: Paul Krugman, Op-Ed Columnist, The New York Times, February 13, 2014
“He’s No Aberration”: Tom Perkins Is Willing To Say What The Rest Of The Ultrarich Are Secretly Thinking
Tom Perkins incensed the Internet (again), when he suggested Thursday that only taxpayers should get the right to vote and that the wealthiest Americans who pay the most in taxes should get more votes. Yep, you read that right.
The sentiment is especially offensive when you consider the demographics associated with the statement (read: white and male), but it isn’t the most absurd thing he’s said. That would be a letter Perkins wrote to The Wall Street Journal on Jan. 24, in which he compared “the progressive war on the American 1 percent, namely the ‘rich’ ” to the persecution of Jews in Nazi Germany, particularly that the 1 percent face a “rising tide of hatred” akin to Kristallnacht, a series of coordinated attacks against Jews in 1938.
The strangest thing about the letter isn’t that he thought that or even admitted it in a paper of record. What boggles the mind is the outpouring of support he received from like-minded ultrarich Americans and conservatives.
Billionaire investor Sam Zell, appearing on Bloomberg TV recently, denounced what he termed “the politics of envy,” arguing the 1 percent have earned their position in society. “I guess my feeling is that [Perkins] is right: The 1 percent are being pummeled because it’s politically convenient to do so,” he said in an exchange with anchor Betty Liu. “The problem is that the world and this country should not talk about envy of the 1 percent. It should talk about emulating the 1 percent. The 1 percent work harder. The 1 percent are much bigger factors in all forms of our society.”
And The Wall Street Journal, a publication most beloved by the rich, similarly came to his defense. Anyone wondering whether the paper’s editors had printed Perkins’s letter to embarrass or expose him had their answer: They published it because they were sympathetic to the argument. Under the curious headline “Perkinsnacht,” the editorial board published an indictment of “liberals in power,” waxing dramatic about how “liberal vituperation makes our letter writer’s point.” The editors concluded: “The liberals aren’t encouraging violence, but they are promoting personal vilification and the abuse of government power to punish political opponents.”
Support for Perkins’s argument was so widespread that The Washington Post‘s Eugene Robinson wrote a piece questioning what exactly was making “some conservatives take a leave of their senses” in coming to Perkins’s defense. The best response to that question came (as usual) from New York Magazine‘s Jonathan Chait. “Perkins’s letter provided a peek into the fantasy world of the right-wing one percent, in which fantasies of an incipient Hitler-esque terror are just slightly beyond the norm.”
It wasn’t just the wealthy who came to Perkins’s side. One of the most cogent conservative arguments I read came from Michelle Malkin, who argued that it’s dangerous to marginalize a group, any group, even millionaires and billionaires. It was a good point, but it was something else in her piece that caught my attention. She called Perkins a “truth-teller” whose “message in defense of our nation’s achievers will transcend, inspire, embolden and prevail.” No matter, she lamented, “the mob is shooting the messenger anyway.”
That’s just it: Perkins isn’t an aberration, and his message is offensive precisely because it speaks to something a lot of rich people and conservatives actually believe. Perkins hadn’t gaffed. He hadn’t misspoken. Although he would later qualify his remarks, he was making a point that many of the uber-rich believe instinctively. They’re just too prudent to say so.
Perkins’s most recent statement—that people who pay more in taxes should get more votes—hasn’t had time to attract the kind of support his first one garnered, but it has parallels in Erick Erickson’s 53 percent movement. The RedState.org founder’s counterpunch to Occupy Wall Street’s “We are the 99 percent” slogan was meant to represent the 53 percent of Americans who pay federal income taxes. The assumption is that Occupy protesters are among the now famous (thanks, Mitt Romney!) 47 percent of the country who don’t.
The sentiment would resurface again on the presidential campaign trail when Romney said the thing that doomed his candicacy. A refresher: “There are 47 percent of the people who will vote for the president no matter what. All right, there are 47 percent who are with him, who are dependent upon government, who believe they are victims, who believe the government has a responsibility to take care for them, who believe that they are entitled to health care, to food, to housing, to you-name-it.”
Another thing Romney left off but might as well have said? Those who believe they are entitled to vote. Romney and Perkins have good reason to want to keep the 47 percent from voting. Namely, the 47 percent won’t make it a priority to protect the interests of the long-suffering 1 percent. They have more pressing concerns, like, say, groceries.
And that gets to another of Perkins’s fears: that the 1 percent is somehow endangered and at risk of “economic extinction.” To wit: “The fear is wealth tax, higher taxes, higher death taxes—just more taxes until there is no more 1 percent. And that will creep down to the 5 percent and then the 10 percent,” he said. It’s the irrationality of this fear that has garnered the bulk of media attention. But it’s also worth reflecting for a moment on just how poor Perkins’s conception of percentages is. (Pauses for dramatic effect. Moves on.)
There are a few other statistics Romney didn’t mention, such as that two-thirds of households that don’t pay federal income tax do pay payroll taxes. Or that 18 percent of all tax filers paid neither payroll nor income taxes. Of those who paid neither, nearly all of them were elderly or had incomes under $20,000.
Romney thought he was speaking in confidence, but Perkins isn’t worried about that. Perkins, as Malkin so deftly observed, is a truth-teller. He’s saying what the right-wing 1 percent truly believe but are too scared to admit publicly.
By: Lucia Graves, The National Journal, February 14, 2014
“Liberals, Conservatives, And The Meaning Of Work”: Ideological Republicans Do Not Understand What It Means To Be Human
It appears that those who talk so much about “economic freedom” aren’t too happy when ordinary people have more choices.
It isn’t often that we spend an entire week talking about a Congressional Budget Office report and its implications, but the one currently occupying Washington’s attention—about the effects of the Affordable Care Act on the labor force—is actually pretty revealing. To catch you up, the CBO said that due to the fact that under the ACA people are no longer tied to jobs they’d prefer to leave because they can’t get health insurance on the individual market (“job lock”), many will do things like retire early, take time off to stay at home with kids, or quit and start businesses. They projected that these departures will add up to the equivalent of 2 to 2.5 million full-time positions. At first, Republicans cried “Obamacare will kill 2 million jobs!”, but when everyone, including the CBO’s director, said that was a blatantly misleading reading of what the report actually said, they changed their tune. And here’s where it gets interesting, because this debate is getting to the heart of what work means, what freedom is—and for whom—and just what kind of an economy we want to have.
Paul Ryan may have been the first Republican to articulate the new attack based on the CBO’s report, when in a hearing on Wendnesday he lamented that fewer Americans would “get on the ladder of life, to begin working, getting the dignity of work, getting more opportunities, rising the income, joining the middle class.” The argument was quickly picked up by others. “I think any law you pass that discourages people from working can’t be a good idea. Why would we want to do that? ” asked Senator Roy Blunt on Fox News Sunday. Representative Tom Cole said the same thing on This Week: “Anything that discourages work—and that’s essentially what the CBO found, that this discourages some people from working, not a good thing at a time when the economy’s still struggling.” Representative Trey Gowdy said, “What the liberals and the Democrats want you to believe is, ‘Well, but you’ll have time to write poetry.’ Well, that’s great until you try and buy your grandkid a birthday present or you try and pay the heating bill.”
You might read that and wonder, “Just how dumb do they think people are?” If you’re, say, a 63-year-old who has enough savings to retire but doesn’t want to wait until you’re 65 and can get Medicare, the fact that you can now buy private insurance doesn’t mean you’ve failed to “get on the ladder of life.” Nobody is going to say, “Wait—I can buy insurance now, even though I once had cancer? Woo-hoo, no more work for me, ever!”
But to be honest, I’m a little torn about how far to go in interpreting the arguments Republicans are making. On one hand, it’s obvious that they are saying what they are because they feel obligated to take any and every opportunity to cry that Obamacare is destroying America, and they’ll do that no matter what the facts are. If the CBO report had said that the ACA had no effect at all on job lock, they’d probably be arguing exactly the opposite of what they are now, that it was diminishing Americans’ freedom by keeping them in jobs they hate.
On the other hand, it’s hard to say that at the moment they’re not being candid about what they really believe. Job lock never really bothered them before, and I think that’s because it’s a case of the market diminishing people’s freedom. Conservatives get very upset when the government diminishes freedom, but if the market does it, well them’s the breaks. If you got screwed by market forces, then that just means you’re a loser, and they’re the party of winners. David Atkins may go a little far here, but he’s right to point to a basic difference in how people of different ideologies view what it means to be human:
It is not an inaccurate or extreme statement to declare that ideological Republicans do not understand what it means to be human. They view human beings as economic units to be plugged at their lowest possible price into a maximally efficient market that provides the greatest possible returns on investment to the wealthy few, with any resulting human resentment and misery dulled by humility before a pleasure-fearing angry God promising rewards to the obedient in the hereafter. It is a dark, meager, shriveled and cramped vision of humanity.
I’d modify that to say that while most conservatives may view lives devoted to non-money-making endeavors as frivolous, it’s only when certain people take advantage of the kind of freedom we’re talking about that they get genuinely perturbed. They aren’t campaigning for a higher estate tax so the Paris Hiltons of the world will be forced to get jobs and contribute meaningfully to society instead of laying about all day spending their forebears’ money. It’s the idea of someone of modest means having the ability to organize their lives to work less that they find morally intolerable.
But conservatives should be quite satisfied with the way the American economy is organized, particularly compared to our peer nations. Unions are a desiccated husk of what they once were, leaving workers with little or no power. Wages are stagnant and benefits are shrinking, while corporate profits and the share of wealth held by those at the top are at or near all-time highs. Our safety net is, by international standards, quite meager. The United States is the only advanced industrialized democracy that does not mandate by law that everyone get paid vacation. If you’re lucky enough to have it, chances are you get two weeks at most. The European Union, by contrast, requires four weeks of paid vacation for all workers, and some countries in Europe go beyond even that.
In other words, this is the economy conservatives built. And yet when just one area of uncertainty is removed for ordinary people—the fear that you’ll lose your health coverage if you leave your job or work fewer hours—they begin delivering lectures to the lesser folk about “the dignity of work.” This is from a bunch of rich white guys who spend their days hobnobbing with other rich white guys. What I’d suggest is that they ask the people who clean their toilets about how much dignity and fulfillment they derive from their work, and then ask them whether they’d feel less dignified if they knew they could leave their jobs and still get health coverage. For a group of people who spend so much time talking about “economic freedom,” conservatives seem awfully hesitant to let too many people taste it.
In the real economy—not the economy of a Republican congressman’s imagining, where the only perspective that matters is that of the guy in the corner office, but the real economy—bosses are sometimes kind and sometimes beastly, compensation is sometimes fair and sometimes stingy, and for most people, work is the thing you do so you can carve out a little bit of time to do the things you’d rather be doing. It would be a wonderful world if everyone drew limitless fulfillment, engagement, and purpose from their work. But this is not that world.
Unfortunately, government can’t make everyone love their jobs so much they leap out of bed in the morning. But what it can do is stop the gross injustices, keep the ruthless from harming the helpless, soften the market’s cruelties and give people at least a chance to reach the kind of lives they want. Is that too much to ask?
By: Paul Waldman, Contributing Editor, The American Prospect, February 10, 2014