Bigotry: A Cost/Benefit Analysis

There are fairly obvious reasons that posts and comments to this blog have increasingly centered on bigotry–well-meaning individuals are (reluctantly) facing up to the extent of the tribal animus that continues to fester in far too many of our fellow Americans.

Much of the reaction to that animus is expressed in moral or religious terms– the belief that racial and religious hatreds are immoral or sinful. Others point to the destabilizing, anti-democratic consequences of such bias, and still others point to the human costs to individuals who suffer from discrimination or may even be prevented from pursuing their life goals for no reason other than their religion, gender or the color of their skin.

But bigotry has economic costs as well, and they are substantial, as a Brookings Institute paper points out.

The research concludes that racial and ethnic disparities in the United States–disparities resulting from official and social discrimination–haven’t simply hurt the people who experience that discrimination. They’ve hurt us all, by depressing U.S. economic output by trillions of dollars over the past 30 years.

The researchers controlled for five variables: 

employment (the percentage of people with jobs); hours worked; educational attainment (the level of education completed); educational utilization (the extent to which people are in jobs that fully use their education); and earnings gaps not explained by those factors.

Then they calculated how much larger the U.S. economic pie would be if opportunities and outcomes had been more equally distributed by race and ethnicity. Their answer?  $22.9 trillion over the 30-year period.

When we fail to utilize the talents of millions of people, we shouldn’t be surprised that the result is lower prosperity for everyone. (We began to recognize that reality when large numbers of women finally entered the workforce and we were no longer failing to use the smarts and talents of fifty percent of the population.)   

As J.P. Morgan & Co.–hardly a socialist enterprise– has documented, Black people represent 12.7 percent of the U.S. population, but only 4.3 percent of the 22.2 million business owners in the country. A significant reason for that disparity is the difficulty minority business-people encounter when they are trying to raise capital; Black entrepreneurs are almost three times more likely to have business profits negatively affected by access to capital.

Furthermore, barely six percent of small businesses in majority-Black communities and 11 percent of small businesses in majority-Hispanic communities have more than 14 days worth of cash on hand, compared to 65 percent of businesses in majority-white communities. Similar disparities are found in comparison of first-year business revenues: Black-owned small businesses earned 59 percent less and Latino-owned small businesses earned 21 percent less in first-year revenues than white-owned counterparts.

The J.P. Morgan report noted the effect of these disparities on the overall economy:

Closing this racial wealth gap could grow the U.S. gross domestic product (GDP) by an estimated four to six percent by 2028, adding an additional $1 to $1.5 trillion to the economy, according to McKinsey. An economy that works for more people could break down barriers to opportunity and improve how people live, from life earnings to life expectancy.

As I read the research documenting the various ways in which ostensibly neutral financial decisions reflect bias–the extent to which decisions by investors and banks are influenced by attitudes about race and gender– I keep coming back to the episode recounted by Heather McGhee, about the town that filled in its swimming pool rather than share it with Black people.

Hard as it is for me to get my head around, it’s obvious that there are a lot of Americans who choose to go without–who choose to be poor, or poorer than necessary–if the alternative is that some of their Black or Brown neighbors succeed. 

If the “benefit” in that cost/benefit analysis is an outcome ensuring that Whites and people of color are equally denied an otherwise available asset, then the costs of bigotry are massively disproportionate to the benefits.

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And…Todd Rokita Again

I’ve posted a lot about the negative consequences of bigotry for individuals and the body politic. What I haven’t focused on–at least, not sufficiently–is the moral culpability of the politicians who pander to and encourage bigotry and ignorance because they think it will help them win elections.

Which brings me to Indiana’s current Attorney General, Todd Rokita.

Rokita, predictably, is one of the GOP officials currently screaming about President Biden’s vaccine mandate– elevating political identity over government’s obligation to protect  public health.

It’s part and parcel of his persona.

Some of you will remember that Rokita was a prime mover of Indiana’s Voter ID law–premised on a “voter fraud” that every single study found to be non-existent. But of course, minorities were less likely to have the required documentation–and  not-so-coincidentally, less likely to vote for Rokita.

Todd Smekens, who often comments on this blog, shared a letter with me that Rokita had sent to multiple media outlets in Indiana, “explaining” his war on the Confucius Institutes that dot campuses around the state. (I’ve previously noted how ridiculous and dishonest those attacks have been.)

This letter–replete with inaccuracies (China did not intentionally loosen the virus on the world, Valparaiso University does not have an “affiliation with the Chinese Communist Party”…) continues Rokita’s assault on Confucius Institutes and common sense, and ends with a ringing promise to protect Hoosiers from the Chinese Communist Menace. (Oh good..I’ve been so worried. Hoosiers are so susceptible…) In any event, that grandiose promise of “protection,” ridiculous as it is, falls far afield of the Indiana Attorney General’s job description.

As I’ve previously noted, Confucius Institutes exist at some 100 American colleges, including IUPUI, where I taught, although given its lack of prominence on campus, most students had probably never heard of it. The Institutes are one of a wide range of campus organizations intended to introduce students to a diverse set of global cultures.

Valparaiso University’s Confucius Institute–for some reason, a particular target of Rokita’s– was founded in 2008 and its website said it “aims at helping Northwest Indiana citizens learn about China and its people and culture and study the Chinese language, and promoting cultural, particularly music, exchange between the US and China.” Valparaiso shut the Institute down last year, citing a loss of federal funding.

It’s tempting to shrug at this posturing –after all, this is deep-red Indiana, where we’re used to  political figures making fools of themselves. But we need to realize that the character, morality and intellect of the people we place in leadership positions actually matters.

In a recent piece in the Economist, Stephen Reicher revisited the infamous Stanford Prison Experiment, and found evidence of the important role played by leadership–the researchers who shaped the experiment– in producing the shocking results that  brought the experiment to an early close. As Reicher reports, a full reading of the study archive–recently opened– “does not reveal natural brutality, as it is often depicted, but how brutality is mobilized by others.”

At the moment, Americans are in the middle of a different leadership experiment, this one focused on a deadly pathogen. “Leaders” like DeSantis and Abbott and Rokita are actively encouraging behaviors that are equally toxic–behaviors that pose a threat to public health and are directly responsible for hundreds if not thousands of deaths. That encouragement is clearly intended to enhance their standing in the ranks of the “freedom fighters” who control today’s GOP. (Rokita fought efforts by IU to ensure that students coming back to campus were vaccinated; he lost in court.)

Rokita’s “letter” (really a press release) was clearly intended to endear him to his natural constituency– to the sort of voter who would be receptive to his misinformation (pretty much the horse de-wormer crowd).

As I noted when he first initiated these attacks against China, communism and American universities, it really doesn’t matter whether Rokita is as loony and smarmy as he seems (a la Marjorie Taylor Greene et al), or just pursuing what he considers to be a savvy strategy of appealing to uninformed and loony voters. He’s a prime example of everything that’s wrong with contemporary American politics.

Our ability to get government functioning properly again–our ability to ensure that the various leaders of state agencies are doing the jobs they are supposed to be doing rather than chasing media mentions and the votes of the credulous and uninformed– requires ridding ourselves of elected officials like Rokita.

In Rokita’s case, I actually know several Republicans who agree….

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Time To Rethink Federalism

I used to begin my classes in Law and Public Policy with what I call the “constitutional architecture,” the structures of U.S. government. As I would tell students, the Founders had divided authority both vertically and horizontally–through Separation of Powers and Federalism.

Most graduate students were familiar with those terms. Undergraduates generally knew that we had three branches of government, although the term “Separation of Powers” was less familiar to them, but very few could define federalism–the division of jurisdiction between the federal government and the states. Both mechanisms were intended to provide “checks and balances”–to limit the power of the central government.

The world we inhabit is very different from the world that confronted the nation’s founders. We still need federalism–but it is past time to review and adjust the current divisions of authority among local, state and federal levels of government.

A number of those divisions are still useful and should be retained. State and federal governments have no reason to assume responsibility for handing out zoning permits or policing domestic violence disputes, to choose a couple of examples, but other current assignments of responsibility no longer make much sense. State-level management of elections, for example, was necessary in the age of snail-mail registration and index cards identifying voters; in the computer age, it’s an invitation to misconduct–an invitation that  state-level lawmakers eagerly accept.

In a number of areas, there are awkward pretenses of state “sovereignty” where contemporary realities mean none really exists. (Think of federal highway dollars that are conditioned on state compliance with federally mandated speed limits. Or the similar “strings” attached to federal funding.) 

At the other end of the spectrum, there are an increasing number of issues, including but certainly not limited to the threats posed by climate change and the pandemic, that must be addressed globally.

Then there are the increasing tensions created by legislators in red states who want to be free of the constraints imposed by the Bill of Rights.

The GOP has never gotten over its original resentment over incorporation–the odd word for the doctrine that nationalized the Bill of Rights. That process was premised on the 14th Amendment principle that fundamental liberties protected by the Bill of Rights should be a “floor”–that a citizen in Alabama should enjoy the same basic rights as a citizen of New York. States are able to enlarge on those rights, but–at least until Donald Trump managed to pack the Supreme Court with rightwing ideologues–they have been forbidden to retract them.

There are multiple reasons to revisit the division of authority between the nation’s state and federal governments. I realize that any effort to do so would be met with alarm–much as we’ve seen with calls to eliminate the filibuster that currently prevents the Senate from actually governing. We humans are creatures of habit: we become accustomed to the world we have grown up with, and assume that the structures of whatever society we inhabit are just “the way it is.” (A great example: the people who argued against same-sex marriage by insisting that marriage “has always been between one man and one woman.” That’s demonstrably false. Even if you ignore biblical history, more than half of the world still recognizes plural marriage. But it was true within the confines of their limited experience.)

A recent guest essay in The New York Times pointed to the undeniably negative effect of our current federalism on public health.

Tennessee and North Carolina are both digging out from catastrophic flooding, while parts of Louisiana were flattened by Hurricane Ida, and most of New Orleans remains without electricity. Ida’s remnants also brought even more rain to areas of the South and beyond that were already dangerously waterlogged.

In the Utter Failure to Understand What “Pro-Life” Really Means tournament, normally a very close battle in the red states, Texas is currently uncontested: Its leaders just made it easier to carry a gun and harder to end an unwanted pregnancy in the same week.

Finally, in the Colossally Botched Medical Emergency competition, it’s neck and neck across the region as Republican governors double down on efforts to block mask and vaccine mandates, along with every other pandemic-mitigation attempt made by people who are not allergic to science.

The author points out that every single one of these disasters is a public health emergency that red state governors have worsened “in every way imaginable.” (A recent NBC poll confirmed that politics has played havoc with public health. It found 91 percent of Biden voters vaccinated opposed to 50 percent of Trump voters.)

 Citizens’ health and safety– and the extent of their civil rights–  should not depend upon their state of residence. 

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Policy And Procedure

So here’s the problem: as Paul Krugman recently noted in his weekly newsletter, Will Rogers oft-quoted line — “I am not a member of any organized political party;  I am a Democrat” —is still accurate.

Today’s Republican Party has morphed into an ideological monolith, mainly constructed around racism and a visceral rejection of the “other.”  That has led to a Democratic Party that encompasses, and must appeal to, pretty much everyone else–from the sane centrists fleeing what has become of the GOP to the moderate left to America’s version of the far left.  In order to win elections with such a coalition, Democrats have to satisfy multiple constituencies. (As Krugman also observed, there’s a positive side to this reality–“this makes it harder to sell your soul, because it’s not clear who you’re supposed to sell it to.”)

The monolithic nature of the current GOP has helped it hold power despite the fact that we have literally mountains of research attesting to the fact that the party’s priorities are widely–sometimes wildly–unpopular. But (as a political scientist friend of mine recently explained over coffee) we fail to appreciate the extent to which Republican electoral successes are also a consequence of the filibuster.

Bear with me.

Even moderately honest observers realize that GOP legislators routinely put partisan advantage over the common good of the country. What we fail to appreciate is that most Democratic lawmakers–not all, certainly, but most–truly do try to put country first. (Granted, that doesn’t mean that the policies they pursue are necessarily correct, or that their motives are always pure.) Part of putting country first is protecting Americans from some truly awful policies that Republicans want to impose.

Democrats defending the filibuster point to precisely that function. They argue that in an inevitable future, when Republicans gain control of the Senate, Democrats will need the filibuster to keep the GOP from enacting damaging policies. As my friend pointed out, that impulse–to protect the country from policies that are broadly harmful and unpopular–actually helps the GOP.

He provided two illuminating examples.

In Indiana, when the Republican Governor and legislature passed a bill that would have allowed merchants to discriminate against LGBTQ customers, the blowback was intense, and the effort ultimately failed. The law was “clarified” to avoid its obvious goal. The very public nature of the response also “educated” a lot of people who don’t follow politics–and in the more urban parts of the state, at least, did the GOP no favors.

The more recent example is the Texas anti-choice vigilante law. For a number of years, pro-choice voters have relied upon the courts to protect their right to reproductive freedom, leaving them free to vote on the basis of other issues. It remains to be seen how much the outrage over the Supreme Court’s refusal to step in will motivate voters, but at this point, it looks like Texas Republicans have handed the Democrats a powerful issue.

My friend’s point is simple: let the GOP enact their pet policies, many if not most of which research tells us are very unpopular. Don’t use the filibuster to protect the party from the consequences of its own venality. Yes, the country will initially suffer the results –but the likely negative reaction will, once again, “educate” voters, clarifying the importance of  registering their disapproval with their votes. 

Obviously, there are other structural elements of our electoral system protecting an unpopular GOP from losses it would otherwise incur–as enumerated in this story in Vox.        Gerrymandering and the Electoral College are huge hurdles, as is the growing tendency to view political party affiliation as part of one’s tribal identity, and to vote on that basis rather than on reaction to policy. But the less-recognized use of the filibuster as a mechanism to keep Republicans from enacting a toxic agenda is counterproductive.

Also, since it is a rule made by the Senate, it ought to be easier to eliminate. Someone needs to “educate” Manchin and Sinema.

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The Southernication Thesis

I have previously posted about Will Wilkinson’s Density Divide. That paper was firmly grounded in research; Wilkinson reserved his more speculative observations for venues like Substack.Those observations may be–as he readily acknowledges–more speculative, but they certainly accord with what I see when I travel around the country and/or read news reports.

The linked article begins with a description of the growing uniformity of a rural America that once reflected the cultures of the immigrants who originally settled in them. Now, however, most of those differences have disappeared.

One of the puzzles of the 2016 election, and the catastrophe of the Trump presidency, is how populist white nationalism finally prevailed at a time when Americans, taken altogether, were less racist than ever. This is one of the questions I take up in the “Density Divide.” But I left out one of my favorite answers to this question largely because it’s too speculative and I didn’t have the data to prove it. My hunch is that rural white culture, which was once regionally varied and distinctive, became more uniform by becoming increasingly Southern. I call this the Southernification thesis.

The Density Divide provided convincing evidence that white ethno-nationalism worked to elect Trump, although it had failed to elect Pat Buchanan or Ron Paul, and explained that new success on the growth of  residential self-selection, which had made lower density parts of the country more homogenous, ethnocentric and socially conservative. But Wilkinson says that even though he is convinced that the density analysis is correct as far as it goes, it provides an incomplete explanation without something like the Southernification thesis. “Before it could be successfully organized politically, America’s increasingly ethnocentric non-urban white population needed to be consolidated first through the adoption of a relatively uniform ethnocentric white culture.”

What I’m still groping for is solid empirical confirmation that the Southernification of white rural America did happen and, if so, how it happened. Now, I have few doubts that it did happen and is still happening. Indeed, it’s hard to think of better impressionistic evidence than the spread of Confederate flags far from the South into all parts of white rural America.

It’s hard to dispute Wilkinson’s observation that the Civil War, and the battle between North and South, lives on both culturally and geographically. Only the geography has changed: the North, as he says, “has drifted out of the countryside and concentrated itself into our cities. At the same time, America’s rural and exurban counties have slowly become more and more homogenously Southern. The South has risen again … in rural Maine?”

I’ve seen the Stars and Bars flying from Iowa barns. You can see them at Minnesota county fairs. They pop up everywhere. In rural Idaho, Colorado, Oregon — places that weren’t even states during the civil war. [Correction: actually, Oregon became a state in 1859. I regret the error. Still…]

Wilkinson quotes David A. Hopkins, a Boston College political scientist, on the figures emerging from the recent census :

Many large metropolitan areas grew faster over the past decade than the Bureau had previously projected, with eight of the nation’s ten largest cities showing an increased growth rate compared to the 2000 to 2010 period. At the same time, most of rural America shrank in absolute as well as relative terms. A majority—52 percent—of the nation’s counties actually reported a smaller raw population in 2020 than they had in 2010.

[…]

The fundamental geographic division in American politics has traditionally been a sectional conflict setting the North against the South. The idioms of “red states” and “blue states” caught on widely after the 2000 presidential election because they could be applied to a regional divide—blue North, red South—that was already presumed to reflect the main axis of political debate and competition. But the partisan difference between large-metro and rural residents has now become much larger than the gap between northerners and southerners. 

It is difficult, if not impossible, to ignore the reality of the current urban/rural divide, and the extent to which it has replaced the North/South divisions that led to the Civil War. The question, as always, is “what do we do?” The answer to that question is made much more difficult by an electoral system that privileges the rural residents of the “new South”–a system that gives vastly disproportionate power to rural Americans who are adamantly resisting the consequences of “one person, one vote.”

We are beginning to see what Civil War between rural and urban America looks like. It is being carried out by the growing domestic terror attacks by groups like the Proud Boys, Oath Keepers and various Neo-Nazi organizations.

Who knew the South would rise again in places like rural Iowa and Minnesota…?

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