Posts Tagged ‘liberals’

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How else to put it? The levels of economic inequality in the United States are obscene.

According to the latest data from the World Inequality Database, the share of pre-tax income captured by the top 1 percent of Americans is an astounding 20.1 percent, while the bottom 50 percent are forced to make due with only 12.6 percent. And the distribution of wealth is even more unequal: the top 1 percent own 37.2 percent but the bottom 50 percent of Americans hold no net wealth at all.

Even Donald Trump’s Federal Reserve Chair Jerome H. Powell has warned that income inequality is the nation’s biggest economic challenge in the coming decade.

Powell and many others recognize that, if present trends continue—with corporate profits growing and the Trump administration in power—economic inequality is only going to get worse.

It’s no wonder, then, that Dani Rodrick argues that the Democratic Party will face a critical test in the next U.S. presidential election:

Will it remain the party of merely adding sweeteners to an unjust economic system? Or does it have the courage to address unfair inequality by attacking it at its roots?

Clearly, Rodrick reflecting on the poor showing of Hillary Clinton in the last presidential election, who promised to continue the policies of economic recovery under Barack Obama, and the fact that most of the proposals currently on the table are aimed at raising taxes on the rich. They don’t really get at the roots of the grotesque levels of inequality the U.S. economy has been generating.

The problem is, most of what Rodrick offers as an alternative agenda for “the Left” also fails that test. His plan for “inclusive prosperity” is confined to “productive re-integration of the domestic economy” (basically, encouraging large corporations to invest in their local communities), directing technological change (to help less-skilled workers), rebalancing labor markets (for example, by promoting unionization and raising minimum wages), regulating the financial sector (with higher capital requirements and tighter scrutiny), and electoral reform (such as more stringent campaign financial rules).

Now, there aren’t many on the Left—at least progressive thinkers and activists I talk to or whose work I read—who would be opposed to such changes. They would, indeed, improve the condition of the working-class and make it somewhat easier for the vast majority of Americans to make their voices heard.

But, by the same token, the kinds of policies Rodrick is putting forward do not meet his own test of attacking the problem of inequality “at its roots.”

The fact is, inequality begins where the surplus is produced and appropriated—in the factories, offices, and warehouses where most Americans work. Workers produce much more value than they receive in the form of wages and salaries, and it’s that surplus that is appropriated by their corporate employers to do with it what they will. Some of it is invested and the rest is distributed for other purposes—stock buybacks, mergers and acquisitions, salaries for corporate executives, and so on—which only serve to make the existing distribution of income and wealth even more unequal.

In other words, it’s that control over the surplus by a small minority of Americans that is the root, the condition or source, of the unfair inequality that characterizes the United States today. And there’s nothing in Rodrick’s set of policies that seeks to fundamentally alter or solve that particular problem.

Perhaps a month ago, when Rodrick first published his piece, he could claim to have been out front in the discussion—and perhaps he still is for mainstream liberals. But already the terms of debate, for the Left, have bypassed him and moved on. Now, politicians, activists, and journalists are asking new questions and posing new solutions—under the rubric of socialism.*

People in the United States often ask whether or not we should keep the socialist label. My answer is an unequivocal “yes,” for two reasons: one is that it ties contemporary discussions and debates to a long historical tradition of criticizing existing conditions and proposing alternatives; second, socialism is based on a recognition that the problems workers face are based on and stem from an “unjust economic system,” and “merely adding sweeteners” doesn’t represent a solution.

The current discussion of socialism is only in its infancy, and it’s impossible to tell at this point where it will end up. But already, in putting issues like a Green New Deal and economic democracy on the table, it is much close to attacking the roots of unfair inequality in the United States than anything mainstream Democrats or Dani Rodrick have to offer.

 

*Even “On Point,” a radio program produced by WBUR in Boston and broadcast every weekday on NPR stations around the United States, recently hosted an episode on socialism.

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We’re ten years on from the events the triggered the worst crisis of capitalism since the first Great Depression (although read my caveat here) and centrists—on both sides of the Atlantic—continue to peddle an ahistorical nostalgia.

Fortunately, people aren’t buying it.

As Jack Shenker has explained in the case of Britain,

one of the most darkly humorous features of contemporary British politics (a competitive field) is the ubiquity of parliamentarians, pundits and business titans who wail and gnash at our ceaseless political tumult but appear utterly incurious about the conditions that produced it. . .

Such stalwart defenders of a certain brand of “common sense” capitalism have watched in horror as ill-mannered upstarts — on both the right and the left — build power at the fringes. But these freshly emboldened centrists pretend that the rupture has no connection to their own dogma and seem to envision the whole sorry mess as some sort of administrative error that will be swiftly tidied away once the right person, with the right branding, is restored to authority.

Much the same is true in the United States, where centrists in the Democratic Party watch in horror as the Republican Party falls in lockstep with Donald Trump and the only energy within their own party comes from the Left. All the while, they ignore their own role in creating the conditions for the crash and the fact that their technocratic promises to American young people—university or community-college education leading to a stable and prosperous worklife, the dream of a thriving middle-class democracy, the claim for capitalism’s economic and ethical superiority—lie in tatters.

As it turns out, Jürgen Habermas sounded the warning of just this eventuality back in the mid-1980s.* His argument, in a nutshell, is that western cultures had used up their utopian energies—and for good reason, because

the very forces for increasing power, from which modernity once derived its self-confidence and its utopian expectation, in actuality turn autonomy into dependence, emancipation into oppression, and reality into the irrational.

In particular, the social welfare state—based on Keynesian economic policies and democratic politics (with a social basis in independent labor unions and labor-oriented parties)—had lost “its capacity to project future possibilities for a collectively better and less endangered way of life.”

The reactions to this crisis are well known: on the Right, the rise of neoliberalism associated with Margaret Thatcher and Ronald Reagan; on the Left, the celebration of non-party social movements. And, in the center? “Those who defend the legitimacy of industrial society and the social welfare state”—such as the more conservative wing of the Social Democrats (he mentions the Mondale wing of the Democrats in the United States and the second government of François Mitterand in France)—who “have been put on the defensive.”

I would make it even sharper: the center refashioned itself in the mould of the right-wing neoliberals, at least in part to isolate and contain the criticisms from the Left, by emphasizing individual (not collective) initiative and market-based (not social or solidarity) solutions to economic and social problems. As a result, the center lost its utopian impulse and settled for a meek defense of what remained of the social welfare state.

Habermas’s view is that society has been reoriented away from the concept of labor toward that of communication, which requires a different way of “linking up with the utopian tradition.” The alternative approach would be to rethink the concept of labor in terms of class and analyze the ways in which the forces of capital that were supposed to be regulated and contained by the social welfare state were left with both the interest and means to undo those regulations. And it’s the center that put itself in the position of responding to and representing the progressive dismantling of the economic side of the social welfare state—in deregulating finance, pursuing globalization, and helping to unleash new digital technologies. The result was, not surprisingly, the growth of obscene levels of inequality, increasing precariousness for large parts of the working-class, and finally the crisis that broke out in 2008, which has led not only to economic but also political breakdown.

However, as Shenker correctly observes, “the breakdown of any political order can be both emancipatory and revanchist.” And it now falls to the Left to reharness and reinvigorate the utopian impulses and energies that the center has squandered in order to chart a path forward.

*The English-language translation of Habermas’s article, “The New Obscurity: The Crisis of the Welfare State and the Exhaustion of Utopian Energies,” was first published in Philosophy & Social Criticism. The article, with a slightly different title (“The Crisis of the Welfare State and the Exhaustion of Utopian Energies”) and translation, was reprinted in On Society and Politics: A Reader. According to a friend and colleague who is a Habermas expert [ht: db], the essay is typical of his thinking that issued from what most people still consider Habermas’s most important work, The Theory of Communicative Action. “I would characterize Communicative Action as his middle period, which follows his earlier, more Frankfurt-styled emphasis on ideology critique (especially positivism) in books like Knowledge and Human Interests and Theory and Practice. In this middle period, he moved way from negative dialectics à la Adorno and Horkheimer toward developing a positive social theory of his own, one he would say was a “reconstruction” of Marxism but I would call a “replacement,” in which he develops a theory of communicative action to avoid what he sees as productivism and economism in the Marxist tradition.” And he adds:  “I find his means of doing so, evolutionary theory, unacceptable.”

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Francisco de Goya y Lucientes, “Murió la Verdad/Truth Has Died” (1814-15)

The liberal establishment continues to mourn the death of truth. Everyone else is moving on.

Every day, it seems, one or another liberal—pundit, columnist, or scholar—issues a warning that, in the age of Donald Trump, we now live in a post-truth world. In their view, we face a fundamental choice: either return to a singular, capital-t truth or suffer the consequences of multiple sets of beliefs, facts, and truths.

For example, just the other day, Keith Kahn-Harris [ht: ja] (in the Guardian) noted the “sheer profusion of voices, the plurality of opinions, the cacophony of the controversy,” which in his view “are enough to make anyone doubt what they should believe.” It’s what he calls “denialism”: the transformation of the “private sickness” of self-deception into the “public dogma” of seeing the world in a whole new way.

There are multiple kinds of denialists: from those who are sceptical of all established knowledge, to those who challenge one type of knowledge; from those who actively contribute to the creation of denialist scholarship, to those who quietly consume it; from those who burn with certainty, to those who are privately sceptical about their scepticism. What they all have in common, I would argue, is a particular type of desire. This desire – for something not to be true – is the driver of denialism.

Then, to ratchet up the morbid consequences of the death of truth, Kahn-Harris plays the ultimate trump card: contemporary denialism involves doubting the existence of the Holocaust, which in turn makes it possible “to publicly celebrate genocide once again, to revel in antisemitism’s finest hour.”

Olivia Paschal [ht: ja] (in the Atlantic) is concerned about a different facet of the world after truth: the role of repetition in creating beliefs that run counter to truth Thus, as she sees it, “even when people know a claim is false, just a few repetitions can make them more likely to think it’s true.” Such “illusory” truths serve to make false claims “familiar” and thus became ways of reframing the debate. Thus, according to Paschal, Fox News has been able to broadcast Trump’s claims (e.g., about the unfairness and inaccuracy of the Russia investigation), which “is also almost certainly contributing to their plausibility among the segments of the population that trust the network.”

As if in response, just yesterday, Margaret Sullivan (in the Washington Post) claimed that, among the consequences of the crisis in American newsrooms, is the decline of “common information—an agreed-upon set of facts to argue about.” So, she complains, in an already deeply divided nation, people turn to Facebook and cable news and thus “were deep in their own echo chambers and couldn’t seem to hear anything else.”

These are just three recent examples of a burgeoning series of complaints, and warnings about the dangers of a world in which a singular truth no longer holds and the need to restore such a truth (as if it once existed)—by challenging denialism, exposing illusory truths, and establishing a set of agree-upon facts.

The “trauma” of Trump’s win just can’t make liberals stop writing this stuff. They keep trying their best to ask the nearly undisguised question: “are Trump supporters really human, like us?” This tells me that the members of the liberal establishment really thought they were never going to face another serious challenge to their ideological hegemony. And now that voters have had the temerity to defy the existing authority, liberals it seems can only dehumanize Trump supporters and, like the members of the Ancien Régime watching over the female cadaver of truth, hope their powers will eventually be restored.

Everyone else, however, is moving on—and a growing number of them are espousing socialist ideas or at least expressing support for them.

The turn to socialism stems in large part from the punishments meted out by the Second Great Depression and the lopsided nature of the recovery. It also represents a disenchantment with mainstream economists and their theories of capitalism, since they failed to consider even the possibility of a crisis in the years before 2007-08, and they didn’t haven’t anything useful to offer once the crash happened. Nor have mainstream economists (or pundits and politicians) been able to explain, much less suggest appropriate policies to undo, the obscene degree of inequality that has been steadily growing for decades now. And, of course, the rising cost of education, the unreliability of health insurance, and the growing precariousness of the workplace have left young people with gnawing material insecurity—and an interest in socialism.

Additional impetus has come from the spectacular—and largely unexpected—successes of Bernie Sanders’s campaign for the presidential nomination of the Democratic Party. And just this past June Americans witnessed the surprising electoral victory of Alexandria Ocasio-Cortez, a self-proclaimed democratic socialist, against ten-term House incumbent Joe Crowley in a New York congressional primary.*

At a pace that appears to match, if not surpass, all the liberal complaints about the death of truth, mainstream American media outlets now regularly publish discussions of (including, but certainly not limited to, attacks on) socialism. There’s socialism in the New York Times, the Washington Post, on CNN, Vox, and on and on.

But, of course, authors in other publications have been thinking about and developing different definitions and approaches to socialism for much longer. One of the best, especially for a younger generation, is Jacobin, which recently included a piece by Neal Meyer on what democratic socialism might mean:

Like many progressives, we want to build a world where everyone has a right to food, healthcare, a good home, an enriching education, and a union job that pays well. We think this kind of economic security is necessary for people to live rich and creative lives — and to be truly free.

We want to guarantee all of this while stopping climate change and building an economy that’s ecologically sustainable. We want to build a world without war, where people in other countries are free from the fear of US military intervention and economic exploitation. And we want to end mass incarceration and police brutality, gender violence, intolerance towards queer people, job and housing discrimination, deportations, and all other forms of oppression.

Unlike many progressives however, we’ve come to the conclusion that to build this better world it’s going to take a lot more work than winning an election and passing incremental reforms.

That’s pretty general but, at this early stage of the new, revitalized discussion of socialism in the United States, it’s a pretty good start.

It certainly moves us beyond the seemingly endless series of teeth-gnashing complaints about the perils of the post-truth world and charts a different path forward, which involves among other things a recognition of the real resentments and desires of working-class Americans, including those who voted for Trump.

Me, I’ll take socialism over truth any day.

 

*According to CNN, the excitement surrounding Ocasio-Cortez’s June stunner spurred another spike in dues-paying members of Democratic Socialists of America. The group now claims to have more than 45,000 members nationally.