“To A Healthier Democracy”: Ending Armageddon
Meg Greenfield, the late Post editorial page editor, counseled against writing in “High C” all the time. By this she meant that an editorialist or columnist who expressed equally noisy levels of indignation about everything would lack credibility when something truly outrageous came along that merited a well-crafted high-pitched scream.
We now seem to be living in the Age of High C, a period when every fight is Armageddon, every foe is a monster, and every issue is either the key to national survival or the doorway to ruin.
This habit seems especially pronounced in the way President Obama’s adversaries treat him. It’s odd that so many continue to see Obama as a radical and a socialist even as the Dow hits record levels and the wealthy continue to do very nicely. If he is a socialist, he is surely the most incompetent practitioner in the history of Marxism.
The reaction to Obama is part of a larger difficulty that involves pretending we are philosophically far more divided than we are. In all of the well-off democracies, even people who call themselves socialists no longer claim to have an alternative to the market as the primary creator and distributor of goods and services. The boundaries on the left end of what’s permissible in the public debate have been pushed well toward the center. This makes the hysteria and hyperbole all the more incomprehensible.
But let’s dream a little and assume that the American left signed on to the proposals put forward by Lane Kenworthy of the University of California-San Diego in his challenging (and, by the way, very pro-market) book “Social Democratic America,” published this year. Kenworthy’s argument is that we can “successfully embrace both flexibility and security, both competition and social justice.”
His wish list is a straightforward set of progressive initiatives. A few of them: universal health insurance and early education, extensive new help on job searches and training, a year of paid parental leave, an increased minimum wage indexed to prices, expansions of efforts that supplement wages such as the Earned Income Tax Credit, and the government as an employer of last resort.
His program, he says, would cost around 10 percent of our gross domestic product. Now that’s a lot of money, and the debate about whether we should spend it would be anything but phony. Yet would such a level of expenditure signal the death of our constitutional system? Would it make us like, say, Cuba? No and no. It might make us a little more like Germany, the Netherlands or the Scandinavian countries. We can argue if we want to do this, but these market democracies happen to share with us an affection for freedom and enterprise.
And when it comes to High C, there’s nothing quite like our culture wars, in which disagreements about social issues are seen as battles between libertines and bigots. When I look around, I see a lot of liberals who live quite traditional family lives and even go regularly to churches, synagogues and mosques. I see a lot of conservatives who are feminists when it comes to their daughters’ opportunities and who oppose bigotry against gays and lesbians.
The ideological resolution I’d suggest for the new year is that all sides stop fighting and pool their energies to easing the marriage and family crisis that is engulfing working-class Americans.
This would require liberals to acknowledge what the vast majority of them already practice in their own lives: that, all things being equal, kids are better off with two loving and engaged parents. It would require conservatives to acknowledge that many of the pressures on families are economic and that the decline of well-paying blue-collar work is causing huge disruptions in family formation. I’d make a case that Kenworthy’s ideas for a more social democratic America would be good for families, but let’s argue it out in the spirit of a shared quest for remedies.
Maybe it’s asking too much, but might social conservatives also consider my friend Jonathan Rauch’s idea that they abandon their campaign against gay marriage in favor of a new campaign on behalf of the value of committed relationships for all of us?
Disagreement is one of the joys of freedom, so I am all for boisterous debate and tough political and philosophical competition. It’s how I make my living. But our democratic system would be healthier if it followed the Greenfield rule and reserved the harshest invective for things that are genuinely monstrous.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, December 28, 2014
“The Obama Recovery”: You Shouldn’t Conclude That Hitting Yourself In The Head Is Smart Because It Feels So Good When You Stop
Suppose that for some reason you decided to start hitting yourself in the head, repeatedly, with a baseball bat. You’d feel pretty bad. Correspondingly, you’d probably feel a lot better if and when you finally stopped. What would that improvement in your condition tell you?
It certainly wouldn’t imply that hitting yourself in the head was a good idea. It would, however, be an indication that the pain you were experiencing wasn’t a reflection of anything fundamentally wrong with your health. Your head wasn’t hurting because you were sick; it was hurting because you kept hitting it with that baseball bat.
And now you understand the basics of what has been happening to several major economies, including the United States, over the past few years. In fact, you understand these basics better than many politicians and commentators.
Let’s start with a tale from overseas: austerity policy in Britain. As you may know, back in 2010 Britain’s newly installed Conservative government declared that a sharp reduction in budget deficits was needed to keep Britain from turning into Greece. Over the next two years growth in the British economy, which had been recovering fairly well from the financial crisis, more or less stalled. In 2013, however, growth picked up again — and the British government claimed vindication for its policies. Was this claim justified?
No, not at all. What actually happened was that the Tories stopped tightening the screws — they didn’t reverse the austerity that had already occurred, but they effectively put a hold on further cuts. So they stopped hitting Britain in the head with that baseball bat. And sure enough, the nation started feeling better.
To claim that this bounceback vindicated austerity is silly. As Simon Wren-Lewis of Oxford University likes to point out, if rapid growth after a gratuitous slump counts as success, the government should just close down half the economy for a year; the next year’s growth would be fantastic. Or as I’d put it, you shouldn’t conclude that hitting yourself in the head is smart because it feels so good when you stop. Unfortunately, the silliness of the claim hasn’t prevented its widespread acceptance by what Mr. Wren-Lewis calls “mediamacro.”
Meanwhile, back in America we haven’t had an official, declared policy of fiscal austerity — but we’ve nonetheless had plenty of austerity in practice, thanks to the federal sequester and sharp cuts by state and local governments. The good news is that we, too, seem to have stopped tightening the screws: Public spending isn’t surging, but at least it has stopped falling. And the economy is doing much better as a result. We are finally starting to see the kind of growth, in employment and G.D.P., that we should have been seeing all along — and the public’s mood is rapidly improving.
What’s the important lesson from this late Obama bounce? Mainly, I’d suggest, that everything you’ve heard about President Obama’s economic policies is wrong.
You know the spiel: that the U.S. economy is ailing because Obamacare is a job-killer and the president is a redistributionist, that Mr. Obama’s anti-business speeches (he hasn’t actually made any, but never mind) have hurt entrepreneurs’ feelings, inducing them to take their marbles and go home.
This story line never made much sense. The truth is that the private sector has done surprisingly well under Mr. Obama, adding 6.7 million jobs since he took office, compared with just 3.1 million at this point under President George W. Bush. Corporate profits have soared, as have stock prices. What held us back was unprecedented public-sector austerity: At this point in the Bush years, government employment was up by 1.2 million, but under Mr. Obama it’s down by 600,000. Sure enough, now that this de facto austerity is easing, the economy is perking up.
And what this bounce tells you is that the alleged faults of Obamanomics had nothing to do with the pain we were feeling. We weren’t hurting because we were sick; we were hurting because we kept hitting ourselves with that baseball bat, and we’re feeling a lot better now that we’ve stopped.
Will this improvement in our condition continue? Britain’s government has declared its intention to pick up the baseball bat again — to engage in further austerity, which does not bode well. But here the picture looks brighter. Households are in much better financial shape than they were a few years ago; there’s probably still a lot of pent-up demand, especially for housing. And falling oil prices will be good for most of the country, although some regions — especially Texas — may take a hit.
So I’m fairly optimistic about 2015, and probably beyond, as long as we avoid any more self-inflicted damage. Let’s just leave that baseball bat lying on the ground, O.K.?
By: Paul Krugman, Op-Ed Columnist, The New York Times, December 28, 2014
“The Government Problem”: The Central Issue Is Whom The Government Is For
Some believe the central political issue of our era is the size of the government. They’re wrong. The central issue is whom the government is for.
Consider the new spending bill Congress and the President agreed to a few weeks ago.
It’s not especially large by historic standards. Under the $1.1 trillion measure, government spending doesn’t rise as a percent of the total economy. In fact, if the economy grows as expected, government spending will actually shrink over the next year.
The problem with the legislation is who gets the goodies and who’s stuck with the tab.
For example, it repeals part of the Dodd-Frank Act designed to stop Wall Street from using other peoples’ money to support its gambling addiction, as the Street did before the near-meltdown of 2008.
Dodd-Frank had barred banks from using commercial deposits that belong to you and me and other people, and which are insured by the government, to make the kind of risky bets that got the Street into trouble and forced taxpayers to bail it out.
But Dodd-Frank put a crimp on Wall Street’s profits. So the Street’s lobbyists have been pushing to roll it back.
The new legislation, incorporating language drafted by lobbyists for Wall Street’s biggest bank, Citigroup, does just this.
It reopens the casino. This increases the likelihood you and I and other taxpayers will once again be left holding the bag.
Wall Street isn’t the only big winner from the new legislation. Health insurance companies get to keep their special tax breaks. Tourist destinations like Las Vegas get their travel promotion subsidies.
In a victory for food companies, the legislation even makes federally subsidized school lunches less healthy by allowing companies that provide them to include fewer whole grains. This boosts their profits because junkier food is less expensive to make.
Major defense contractors also win big. They get tens of billions of dollars for the new warplanes, missiles, and submarines they’ve been lobbying for.
Conservatives like to portray government as a welfare machine doling out benefits to the poor, some of whom are too lazy to work.
In reality, according to the Center for Budget and Policy Priorities, only about 12 percent of federal spending goes to individuals and families, most of whom are in dire need.
An increasing portion goes to corporate welfare.
In addition to the provisions in the recent spending bill that reward Wall Street, health insurers, the travel industry, food companies, and defense contractors, other corporate goodies have been long baked into the federal budget.
Big agribusiness gets price supports. Hedge-fund and private-equity managers get their own special “carried-interest” tax loophole. The oil and gas industry gets its special tax subsidies.
Big Pharma gets a particularly big benefit: a prohibition on government using its vast bargaining power under Medicare and Medicaid to negotiate low drug prices.
Why are politicians doing so much for corporate executives and Wall Street insiders? Follow the money. It’s because they’re flooding Washington with money as never before, financing an increasing portion of politicians’ campaigns.
The Supreme Court’s decision this year in McCutcheon vs. Federal Election Commission, following in the wake of Citizen’s United, already eliminated the $123,200 cap on the amount an individual could contribute to federal candidates.
The new spending legislation, just enacted, makes it easier for wealthy individuals to write big checks to political parties. Before, individuals could donate up to $32,400 to the Democratic or Republican National Committees.
Starting in 2015, they can donate ten times as much. In a two-year election cycle, a couple will be able to give $1,296,000 to a party’s various accounts.
But the only couples capable of giving that much are those that include corporate executives, Wall Street moguls, and other big-moneyed interests.
Which means Washington will be even more attentive to their needs in the next round of legislation.
That’s been the pattern. As wealth continues to concentrate at the top, individuals and entities with lots of money have greater political power to get favors from government – like the rollback of the Dodd-Frank law and the accumulation of additional corporate welfare. These favors, in turn, further entrench and expand the wealth at the top.
The size of government isn’t the problem. That’s a canard used to hide the far larger problem.
The larger problem is that much of government is no longer working for the vast majority it’s intended to serve. It’s working instead for a small minority at the top.
If government were responding to the public’s interest instead of the moneyed interests, it would be smaller and more efficient.
But unless or until we can reverse the vicious cycle of big money getting political favors that makes big money even bigger, we can’t get the government we want and deserve.
By: Robert Reich, The Robert Reich Blog, December 23, 2014
“Tidings Of Comfort”: On Multiple Fronts, Government Wasn’t The Problem; It Was The Solution
Maybe I’m just projecting, but Christmas seemed unusually subdued this year. The malls seemed less crowded than usual, the people glummer. There was even less Muzak in the air. And, in a way, that’s not surprising: All year Americans have been bombarded with dire news reports portraying a world out of control and a clueless government with no idea what to do.
Yet if you look back at what actually happened over the past year, you see something completely different. Amid all the derision, a number of major government policies worked just fine — and the biggest successes involved the most derided policies. You’ll never hear this on Fox News, but 2014 was a year in which the federal government, in particular, showed that it can do some important things very well if it wants to.
Start with Ebola, a subject that has vanished from the headlines so fast it’s hard to remember how pervasive the panic was just a few weeks ago. Judging from news media coverage, especially but not only on cable TV, America was on the verge of turning into a real-life version of “The Walking Dead.” And many politicians dismissed the efforts of public health officials to deal with the disease using conventional methods. Instead, they insisted, we needed to ban all travel to and from West Africa, imprison anyone who arrived from the wrong place, and close the border with Mexico. No, I have no idea why anyone thought that last item made sense.
As it turned out, however, the Centers for Disease Control and Prevention, despite some early missteps, knew what they were doing, which shouldn’t be surprising: The Centers have a lot of experience in, well, controlling disease, epidemics in particular. And while the Ebola virus continues to kill many people in parts of Africa, there was no outbreak here.
Consider next the state of the economy. There’s no question that recovery from the 2008 crisis has been painfully slow and should have been much faster. In particular, the economy has been held back by unprecedented cuts in public spending and employment.
But the story you hear all the time portrays economic policy as an unmitigated disaster, with President Obama’s alleged hostility to business holding back investment and job creation. So it comes as something of a shock when you look at the actual record and discover that growth and job creation have been substantially faster during the Obama recovery than they were during the Bush recovery last decade (even ignoring the crisis at the end), and that while housing is still depressed, business investment has been quite strong.
What’s more, recent data suggest that the economy is gathering strength — 5 percent growth in the last quarter! Oh, and not that it matters very much, but there are some people who like to claim that economic success should be judged by the performance of the stock market. And stock prices, which hit a low point in March 2009, accompanied by declarations from prominent Republican economists that Mr. Obama was killing the market economy, have tripled since then. Maybe economic management hasn’t been that bad, after all.
Finally, there’s the hidden-in-plain-sight triumph of Obamacare, which is just finishing up its first year of full implementation. It’s a tribute to the effectiveness of the propaganda campaign against health reform — which has played up every glitch, without ever mentioning that the problem has been solved, and invented failures that never happened — that I fairly often encounter people, some of them liberals, who ask me whether the administration will ever be able to get the program to work. Apparently nobody told them that it is working, and very well.
In fact, Year 1 surpassed expectations on every front. Remember claims that more people would lose insurance than gained it? Well, the number of Americans without insurance fell by around 10 million; members of the elite who have never been uninsured have no idea just how much positive difference that makes to people’s lives. Remember claims that reform would break the budget? In reality, premiums were far less than predicted, overall health spending is moderating, and specific cost-control measures are doing very well. And all indications suggest that year two will be marked by further success.
And there’s more. For example, at the end of 2014, the Obama administration’s foreign policy, which tries to contain threats like Vladimir Putin’s Russia or the Islamic State rather than rushing into military confrontation, is looking pretty good.
The common theme here is that, over the past year, a U.S. government subjected to constant bad-mouthing, constantly accused of being ineffectual or worse, has, in fact, managed to accomplish a lot. On multiple fronts, government wasn’t the problem; it was the solution. Nobody knows it, but 2014 was the year of “Yes, we can.”
By: Paul Krugman, Op-Ed Columnist, The New York Times, December 25, 2014
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