Posts Tagged ‘conservatives’

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Last week, Thomas Frank welcomed Paul Krugman to the ranks of those who believe that the American working-class in recent decades has often voted against its fundamental economic interests by supporting conservative Republicans.

Appropriately enough, Frank then chastises Krugman for having repeatedly used his New York Times column to argue exactly the opposite, denying the idea that working-class Americans had defected to the Republican Party.

Frank, the author of What’s the Matter with Kansas? then draws the appropriate conclusion: that the tendency on the part of Krugman and other liberals to underestimate working-class conservatism, in both southern and northern states, prepared the way for Donald Trump’s victory in the presidential election of November 2016.

To be clear, we’re not talking about the entire American working-class. Working-class whites have been more likely to vote against their economic interests and to be persuaded by the kinds of cultural, identity issues raised by Trump and other Republican politicians. Not so with Hispanics, latinos, and other members of the American working-class—although, according to Stephen Morgan and Jiwon Lee, minorities did have lower turnout in competitive states in 2016.

But I think Frank and Krugman have it only half right. Their view is that the working-class, if it voted according to its economic interests, would stop supporting Republicans and return to the Democratic Party fold.

The problem is, as is clear from the chart at the top of the post, the American working-class has lost out under a long series of both Republican and Democratic administrations. Neither party—conservative or liberal—has reflected the interests of working-class Americans in recent decades.

For example, between 1970 and 2014, the share of wages in national income plummeted from 51.5 percent to 42.3 percent.* As a result, the share of income going to the bottom 50 percent of Americans has literally collapsed, falling from 17.8 percent in 1970 to only 12.5 percent in 2014.

Meanwhile, the top 1 percent has enjoyed enormous success: its share of pre-tax income has soared in the past four and a half decades, rising from 12.5 percent to over 20 percent.

The problem for the American working-class is that neither party represents its interests—and no new party has emerged, at least on a national level, to take their place. So, working-class voters are left to float, under increasingly precarious economic conditions, in support of politicians from both parties who have pandered to a variety of identities and issues but have done nothing to effectively reverse the insults and injuries inflicted upon the American working-class in recent decades.

That’s what’s the matter with the United States.

 

*And, remember (as I explained in 2015), the wage share includes the salaries of CEOs and others at the top of the scale, which should rightly be excluded as distributions of the surplus. If they were subtracted, the share going to working-class Americans would have fallen even further.

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Emily Badger is right:

The new White House budget proposal is built on a deep-rooted conservative belief: The government should help those who are willing to work, and cull from benefit rolls those who aren’t.

But it’s also a deep-rooted liberal belief. Lest we forget, it was Bill Clinton who signed the original let-them-work-or-starve welfare reform in 1996 (two years after signing the Violent Crime Control and Law Enforcement Act, the largest crime bill in history).*

As I argued back in March,

liberals and conservatives agree on very little these days, especially now that we find ourselves in the era of Donald Trump. But they do seem to find common ground on one thing: the so-called dignity of labor.

Basically, liberals and conservatives have long shared the view that government programs should be redesigned to make sure people—especially the members of the working-class, white, black, and Hispanic—are forced to have the freedom to sell their ability to work to someone else.

Donald Trump’s first budget is merely the latest proposal to implement this view, held by liberals and conservatives alike.

 

*In general, according to the Center on Budget and Policy Priorities, work requirements have done little to reduce poverty, and in some cases, they push families deeper into it:

Work requirements rest on the assumption that disadvantaged individuals will work only if they’re forced to do so, despite the intensive efforts that many poor individuals and families put into working at low-wage jobs that offer unpredictable hours and schedules and don’t pay enough for them to feed their families and keep a roof over their heads without public assistance of some kind.  Too many disadvantaged individuals want to work but can’t find jobs for reasons that work requirements don’t solve:  they lack the skills or work experience that employers want, they lack child care assistance, they lack the social connections that would help them identify job openings and get hired, or they have criminal records or have other personal challenges that keep employers from hiring them.  In addition, when parents can’t meet work requirements, their children can end up in highly stressful, unstable situations that can negatively affect their health and their prospects for upward mobility and long-term success.

 

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No one ever accused American conservatives of being particularly original. They started with a story about the failure of government programs and they stick with it, against all evidence.

Originally, conservatives targeted African Americans, who (so the story goes, e.g., in the Moynihan Report) were mired in a culture of poverty and increasingly dependent on government hand-outs. In order for blacks to regain America’s founding virtues (so the story continues)—especially marriage and industriousness—well-meaning but ultimately destructive government programs should be abolished so that they would once again be able to enjoy the security of marriage and dignity of work.

That exact same story has now been transferred to the white working-class. Anyone who’s read Charles Murray and J. D. Vance will recognize the “the pejorative Moynihan report on the black family in white face.”

The latest version of that story was penned by the American Enterprise Institute’s Arthur Brooks, who cites Lyndon Johnson’s War on Poverty as the original sin, which “deprived generations of Americans of their fundamental sense of dignity.” According to Brooks, “rural and exurban whites” have been left behind “every bit as much as the urban poor” because they’ve come to “depend on the state instead of creating value for themselves and others.” Real dignity, argues Brooks (echoing a long line of conservative thinkers), stems from people being “authentically, objectively necessary.” And that means working—or at least looking for work.

That’s why Brooks cites the declining labor-force participation rate in the United States beginning with the War on Poverty.

The first problem is, the participation rate has been declining since the mid-1950s, long before Johnson’s program was enacted. As readers can see in the chart at the top of the post, the labor-force participation rate for white men (the red line), which stood at 87.4 percent in 1955, had fallen to 84.2 percent by 1964 and then dropped to 76.6 percent in 2007 (on the eve of the latest crash). If we calculate the change by decades, it dropped by 3.2 percent points in the first decade and then by less then 2 percent points in each succeeding decade.

It makes as much sense to blame the declining labor-force participation rate on Chuck Berry as the War on Poverty.

But notice also that, from the mid-1950s onward, the labor-force participation rate of white women soared—beginning at 33.4 percent (in 1955), rising to 37.3 percent (in 1964), and peaking at 60.2 percent (in 2007). In the terms set forth by Brooks, that increase in dignity more than makes up for the falling rate for men. And much of the increase for women comes after the War on Poverty is enacted.

Instead of mourning the fall in men’s participation, why isn’t the increase for women deemed a great success by Brooks and other conservatives?

The only possible answer is American conservatives hold a nostalgia—an extremely selective nostalgia—for a particular moment in U.S. history. They envision a white working-class made up of men most of whom are forced to have the freedom to sell their ability to work outside the home, with wives who for the most part stay at home, care for their husbands, and raise future workers. At the same time, conservatives forget about the unions that made it possible for workers to earn a family wage—not to mention the Jim Crow laws and bracero programs that created barriers for black and Hispanic workers to compete for the jobs white working-class men were able to find.

So, no, there never was a Garden of Eden—and, thus, no original sin.

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Has the policy consensus on economics fundamentally changed in recent years?

To read Mike Konczal it has. I can’t say I’m convinced. While some of the details may have changed, I still think we’re talking about different—liberal and conservative—versions of the same old trickledown economics.

But first Konczal’s argument. He begins with a pretty good summary of the policy consensus before the crash of 2007-08:

Before the crash, complacent Democrats, whatever their disagreements with their Republican peers, tended to agree with them that the economy was largely self-correcting. The Federal Reserve possessed the tools to nudge the economy to full employment, they thought. What’s more, government programs, while sometimes a necessary evil, were likely to be an inefficient drag compared with the private market. Inequality was something to worry about, sure, but hardly a crisis, and policies were correspondingly timid and market-focused.

And it’s true: the debate about the conditions and consequences of the crash—after Occupy Wall Street, in the midst of the Second Great Depression—challenged that consensus, by focusing much more attention on inequality and disrupting the idea that the growing gap between rich and poor is somehow natural and necessary and by calling into question the idea that capitalist markets are self-stabilizing and full employment can be guaranteed by relying on markets.

In all honesty, that’s the least that can be expected, especially on the liberal side of mainstream political and economic thinking in the United States.

But then, when Konczal outlines the policies that make up what he calls the “new liberal economics,” embodied in Hillary Clinton’s campaign and the current Democratic Party, the evidence is very thin. In terms of specific policies—like following the dual mandate for the Fed of stabilizing prices and maximizing employment and supporting paid family and medical leave—the new liberal economics looks a lot like the old liberal economics of the Great Society programs (and, for that matter, of the Nixon administration). And while the policies Democrats support are certainly different from those of current Republicans (which Konczal summarizes as a “mix of Kempism, austerity, and favorable taxes and regulations for businesses that characterizes Paul Ryan’s ideas” and “Trump’s agenda of mercantilism and a chauvinistic welfare state”), they aren’t evidence the existing policy consensus represents a radical change.

That’s because the consensus before the crash, and now seven years into the recovery, has been based on trickledown economics. On both sides of the political and economic aisle.

The overarching idea, shared by liberals and conservatives, is that the existing economic system—with the surplus being appropriated by a small group at the top, who then decide what to do with it—will eventually deliver benefits to everyone, including those at the bottom (through, e.g., more jobs and higher incomes).

There are differences, of course. While the conservative view of trickledown economics emphasizes individual decisions and private markets, the liberal view is based on the idea that individual decisions are constrained by larger institutions and structures and and government programs are necessary to achieve desirable social outcomes. But, in both cases, the benefits created by existing economic arrangements are supposed to start at the top and trickle down to the bottom.

The consensus before the crash was that the liberal and conservative approaches to trickledown economics represented the limits of the relevant debate about economic policy. And now, seven years into the recovery from the crash, the debate that takes place between those limits remains the policy consensus.*

So, to my mind, there’s nothing new about the “new liberal economics.” It’s just a different mix of policies that together make up the latest version of liberal trickledown economics.

 

*If the existing policy consensus has been disrupted, it’s only because Donald Trump has highlighted the fact that trickledown economics, in both its versions, represents an unfair hustle.

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Is education the solution to the problem of growing inequality?

As I wrote in early 2015,

Americans like to think that education is the solution to all economic and social problems. Including, of course, growing inequality.

Why? Because focusing on education—encouraging people to get more higher education—involves no particular tradeoffs. More education for some doesn’t mean less education for others (at least in principle). And providing more education doesn’t involve any structural changes in society—just more funding. (Of course, suggesting more education under current conditions—when public financing of higher education continues to decline, and students and their families are forced to take on more and more debt—is itself disingenuous).

As a result, there’s a broad consensus in the middle—among conservatives and liberals alike—that encouraging more young people who have yet to enter the labor market and existing workers who want to get ahead to obtain a college education will solve the problem of inequality.

And I proceeded to show how, in terms of declining wages for workers at various levels of education and increasing inequality within the top 1 percent, more education does not actually solve the problem of inequality.

But education is still the preferred solution of mainstream Democrats, and inequality itself is receiving less attention. And Thomas Frank [ht: sm] (in an interview with Jennifer Berkshire aka EduShyster) explains why:

Tom Frank: The Democratic party really doesn’t care about inequality because they’re now a party of the professional class: affluent, white-collar professionals. They themselves say this all the time; they talk about the professional class as being their constituency. But we don’t often try to put the pieces together and try to figure out, well what does it mean to be a party of the professional class vs. the working class? One thing it means is that inequality is seen as the natural order of things. In fact, professionals believe in inequality. They think of inequality as totally fair and the way things should be, and they think that because they themselves are the winners in the great inequality sweepstakes.

EduShyster: There are many great lines in Listen, Liberal, but one of my faves is that whenever the kind of liberal you’re describing stumbles upon an economic problem—say, the collapse of the middle class—s/he sees an education problem.

Frank: That’s one of the lines in the book that I’m quite proud of. The liberals I’m describing are an affluent group, by and large, who’ve done very well, and they attribute their success to their education. The professional class is defined by educational achievement. That’s who they are. They’re defined by how and what they did in school. So they look out at the rest of the country that’s going in reverse, at the middle class dream that’s falling apart, and they say *you know, it’s really your own fault. You should have tried harder in school. You should have gone to the right school.* But defining every economic problem as an education problem is basically a way of blaming the victim.

EduShyster: Here, allow me to repeat that for emphasis, but with italics to emphasize the condescension: you know, it’s really your own fault. You should have tried harder in school. You should have gone to the right school.

Frank: There is nothing that gives the lie to the meritocratic view of the world than what’s happened to humanities PhDs. These are people with the highest degree there is. They spent the most time in school of anyone. This is where the idea that education solves economic problems totally breaks down. I spent 25 years in school and got a PhD in history at the University of Chicago, a degree that used to be valued in the marketplace. But the marketplace figured out a way to casualize university labor. The whole idea of the professional, meritocratic way of looking at the world is that if you study, you’ll win—good things will come to you. I studied hard, and I got good grades and I got a PhD and my dissertation was even published. None of it made any difference. What my generation learned, and what everybody is starting to understand now, is that it’s not about education—it’s about power. It’s about power in the workplace. And we didn’t have any.

Basically, mainstream liberals, like their conservative counterparts, believe in “just deserts,” the idea that everyone receives what they deserve in capitalist markets. That means, if there are fundamentally unequal outcomes (which barely anyone attempts to deny these days), it’s because that’s what people deserve.

But of course some within the mainstream do believe inequality is a problem, if only because it might incite a reaction that calls into question the existing order. And that’s where conservatives and liberal begin to differ: whereas conservatives tend to want to eliminate government intervention (e.g., because it creates a dependency on social welfare programs), liberals look to education as the solution (to the problem of inequality as well as to issues of declining productivity, slow growth, and much else).

What neither conservatives nor liberals want to see is unequal power in the workplace—and that’s a problem more education simply can’t solve.