Author Archives: Sheila

For Goodness Sakes, Indiana!

A couple of years ago, Indiana geniuses came up with the motto “Honest to goodness, Indiana!” After reading this scorching–and utterly accurate–description of what passes for governing in my state, I think that motto should be “For goodness sakes, Indiana!”

The article by Aaron Wren in Governing  magazine looked at the traditional Red state tactics that brought disaster to Kansas and failed to improve economies in Red states generally. When Wren focused on Indiana, he laid out the state’s current status and the roots of our declining wellbeing.

Or look at Indiana. It has had Republican governors since 2005 and full Republican control of the state for over a decade. Its leadership loves to boast that its growth rate in population and jobs beats surrounding states, but that’s a low hurdle to jump. In reality, most of Indiana is stagnating or declining. Over half of the state’s counties are losing population, and the forecast for the prime working age population is grim: Virtually the entire state is projected to have a declining workforce in coming years. Indiana’s per capita income is only 86.2 percent of the national average, and that’s lower than it was when the GOP took over the governorship and the Legislature. Under Republican management, the state started out poor and got even poorer.

Why these poor results in states with the full panoply of red state best practices? It’s because the entire philosophy of governance in Kansas, Indiana and quite a few other Republican states is based on a fundamentally mistaken view of progress. Rather than investing to build up the skills and enhance the well-being of their citizens, they engaged in a race down to the bottom as a strategy to attract corporations.

Wren doesn’t simply make an assertion–he provides examples.

When local media reported on the horrific situations faced by many local renters, Indianapolis responded by passing an ordinance that required landlords to provide tenants with a list of their rights– including the right to have “functional plumbing, safe wiring and heat in the winter.” Indiana’s legislature just overturned that ordinance, as part of the legislature’s ongoing refusal to respect local control, and–as Wren says–at the behest of the property owners’ lobby.

Indiana is a great place to be a slumlord, but not such a good place to be a citizen who rents.

The article points out that this example is just one of many.  The state’s nursing home industry has so many negatives, it has become, Wren says, “a giant scam.” He recounts how hospitals in the state used ownership of nursing facilities to overbill Medicare and siphon over a billion dollars from those homes. The money was used to fund building projects and generous salaries for hospital executives. Meanwhile, Indiana ranks 48th in nursing home staffing, and more than 20 percent of nursing home patients with COVID died (the national rate is 13 percent).

How did our legislature respond? It passed a bill providing expansive immunity from liability for nursing homes and other businesses.

In addition to overturning tenant protections, Indiana has flirted with canceling a transit expansion in Indianapolis that has been supported overwhelmingly by the voters, and gutted a bill that would have required employers to provide basic accommodations to pregnant women. (Expectant mothers can now ask for accommodations, but employers don’t have to actually provide any). Perusing the list of bills working their way through the state Legislature, it’s hard to see much that could even plausibly make a material improvement in the life of Hoosier citizens.

Wren points out that the most important factor in attracting high-wage employers is the availability of a skilled labor force – talent. What he doesn’t mention is the Indiana legislature’s continuing assault on public education, and the negative effects of that assault on efforts to produce a skilled labor force. Instead, the Republicans who have dominated state government continue to siphon dollars from public schools in favor of private, mostly religious schools via the nation’s largest voucher program.

Aaron Wren is no bleeding-heart liberal. When he lived in Indianapolis, I knew him slightly, and followed his observations on local governance. He was pro-business in the better sense of that term, supportive of governance that created a business-friendly environment, but highly critical of the crony capitalism that continues to characterize Republican politics in Indiana.

So long as Indiana’s gerrymandered districts continue to weight rural votes over urban ones, we will continue to rank among the bottom of states in numerous categories, and we’ll continue to have what the late Harrison Ullmann called “the world’s worst legislature.”

For goodness sakes, Indiana!

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Stiglitz On The Environment

Today, I’m largely turning this blog over to Joseph Stiglitz, Nobel-prize winning economist who heads up economic research at the Roosevelt Foundation. Stiglitz recently testified before the Senate Budget Committee on what he–and President Biden–have both correctly termed an existential threat: climate change.

The following are excerpts from that testimony.The entire presentation is at the link.

Thank you for this opportunity to share with you some of my concerns about the large economic costs and huge risks of not taking strong actions now to deal with climate change, and the large benefits of doing so.

Some of the downside risks are already apparent. In one recent year, the magnitude of destruction associated with extreme weather events—which will inevitably occur more frequently, with ever more devastation as a result of climate change—was more than 1.5% of GDP, effectively wiping out more than 60% of the growth of that year.1 But this is only one dimension of what is occurring: Rising sea level will put much coastal property under water, destroying homes and property values. Forward-looking markets have already begun to price this in—but still far from adequately.2 3

Recent studies have documented the adverse effects of climate change on health.4 We pay for this in multiple ways, including higher health care costs and a less healthy population, which means a less productive workforce. But there is no way to accurately monetize the shorter life spans and the increased morbidity….

There are, of course, some sectors, some parts of our population, some locations that will be particularly hard hit. During the past year, we have seen the inequities associated with Covid-19. Those associated with climate change are equally severe, with people at the bottom of the income ladder often bearing the brunt of the costs, with fewer resources to respond. But there is an additional dimension of inequity that speaks to our future: While Covid-19 disproportionately affected older Americans, climate change is a risk that we impose on our children and grandchildren—on the future of our country….

Let me spend a few moments discussing the real risks our economy and society face if we do not take stronger actions than we have so far. We have been treating truly scarce resources, our environment, our water, our air, as if they were free. But economics teaches us that there is no such thing as a free lunch. We will have to pay the check someday. And delay is costly. Taking carbon out of the atmosphere is far more expensive than not putting it into the atmosphere. A smooth transition is far less costly than the one we will surely face if we do not take action urgently….

The longer we delay dealing with climate change, the larger the necessary adjustments will be, and the greater the potential for huge economic disruption—an economic disruption that could make the 2008 Great Recession look like child’s play by comparison.6 The danger of a crash is particularly acute for the U.S. economy, given that large U.S. banks are the largest financiers of fossil fuel….

Economics has, for good reason, been called the dismal science. The scenario of doom and gloom that I have painted is, unfortunately, all too real. But I want to end on a sunnier note. Doing something about climate change could be a real boon for the economy.

Too often, critics of taking action point to the job losses. Change is costly. But change provides opportunity. I am also firmly convinced that the opportunities afforded by addressing climate change are enormous. The number of jobs that will be lost in the old fossil fuel industries are dwarfed by those that will be created in the new industries. The value created in the new industries will also dwarf the value of the stranded assets in the fossil fuel and related sectors. As just two examples: the number of installers of solar panels already is a multiple of the number of coal miners; the auto company with the highest valuation today is Tesla…

The current focus on changing to a green economy is already stimulating enormous innovation, innovation that holds out the promise of significant increases in standards of living. The price of renewable energy has been plummeting, and in many areas outcompetes fossil fuels. The drive for a greener society is stimulating the design of new buildings and new ways of doing agriculture, which turn out actually to save resources, particularly if we value them appropriately….

Our country especially has much to gain, because innovation is a key comparative advantage. If we are ahead of the game—rather than a laggard—we will develop technology that will be in demand around the world. If we are behind the game, we will pay a high price. It is almost inevitable that other countries will demand cross-border adjustments that will put our companies at a disadvantage….

There is much more to be done to protect the economy from the risks I have described. For instance, we need immediately to end fossil fuel subsidies and require full disclosure of climate risks—both the risks of physical damage and the financial risks. Markets on their own don’t provide adequate disclosure, necessary both for the efficient allocation of scarce capital and for protecting investors. We need to change statutes governing fiduciary responsibility to mandate looking at these long-run risks, and especially where government is at risk, as in government insurance pension schemes…

There’s much more at the link, and it is definitely worth reading in its entirety.

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Today’s GOP Even Frightens David Brooks

David Brooks frustrates me. Sometimes, I disagree strongly with his “take” on the American condition (usually offered from what seems a self-consciously “elevated” vantage point), but sometimes, he hits the nail squarely on the head. I continue to read his columns in the New York Times for those latter instances, of which last Friday’s was one.

Titled “The GOP is Getting Even Worse,” Brooks commented on the cultural hysteria that has clearly gripped the Republicans’ (declining) base.

There are increasing signs that the Trumpian base is radicalizing. My Republican friends report vicious divisions in their churches and families. Republican politicians who don’t toe the Trump line are speaking of death threats and menacing verbal attacks.

It’s as if the Trump base felt some security when their man was at the top, and that’s now gone. Maybe Trump was the restraining force.

What’s happening can only be called a venomous panic attack. Since the election, large swathes of the Trumpian right have decided America is facing a crisis like never before and they are the small army of warriors fighting with Alamo-level desperation to ensure the survival of the country as they conceive it.

Survey research provides support for that observation. Brooks points to a poll taken in late January, in which respondents were asked whether politics is more about “enacting good public policy” or more about “ensuring the survival of the country as we know it. ” Fifty-one percent of Trump Republicans said survival; a mere 19 percent chose policy.

Another poll asked Americans which of two statements came closest to their view: “It’s a big, beautiful world, mostly full of good people, and we must find a way to embrace each other and not allow ourselves to become isolated” or “Our lives are threatened by terrorists, criminals and illegal immigrants, and our priority should be to protect ourselves.”

Those who read this blog can guess what’s coming: More than 75 percent of Biden voters chose “a big, beautiful world.” Two-thirds of Trump voters chose “our lives are threatened.”

Brooks is absolutely right when he writes that

Liberal democracy is based on a level of optimism, faith and a sense of security. It’s based on confidence in the humanistic project: that through conversation and encounter, we can deeply know each other across differences; that most people are seeking the good with different opinions about how to get there; that society is not a zero-sum war, but a conversation and a negotiation.

He is also right when he observes that the Republican response to Biden and his agenda has largely been anemic “because the base doesn’t care about mere legislation, just their own cultural standing.”

For years, the refrain from what Americans call “the Left” (and what is globally considered pretty middle-of-the-road) has been “why do so many people vote against their own best interests?” That question, however, rests on a faulty premise. Moderate and leftwing folks define “best interests” in largely economic terms. Voters would be “better off” financially or more likely to find employment if they voted differently. But today’s Republicans see their “best interests” in cultural and racial terms, not economic promises.

The overwhelmingly White Christian supporters of today’s GOP see a demographic shift that will eventually rob them of what is clearly most important to them–far more important than a good job or a fairer tax system or the rate of inflation. Their “interest” is in continued cultural and racial dominance–and as the research shows, many of them are willing to engage in violence, a la January 6th, to protect that dominance.

It’s scary.

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About That Shortage Of Workers…

Bars and restaurants are reopening–something for which we are all grateful–but according to media reports, having trouble finding workers. Republicans are jumping on those reports, arguing that employers just can’t compete with unemployment insurance checks. It’s the standard GOP argument that helping people breeds “dependence,” — that workers would rather collect benefits than go back to work.

A 2020 study by Yale economists found that–convenient as that argument may be–it’s wrong. Unemployment benefits don’t create a disincentive for job seekers.

Recent reports suggest that the pandemic has cost America’s economy 2.5 million restaurant jobs and closed more than 100,000 eateries. Now, just as the nation begins to return to whatever “normal” looks like, the restaurants that made it through 2020 can’t find staffers.

A recent Brookings report  looked at Census survey data from early April. It found that 37% of small businesses in the hospitality and food sectors were affected by worker availability, compared to 16% for all small businesses.

So–if those Yale researchers are right, and the dearth of restaurant workers isn’t attributable to sloth enabled by unemployment compensation–what is causing the problem?

One likely factor is the unusual timing. When everyone is trying to hire at the same time, it is harder to find workers. Add to that the fact that easing of the pandemic does not equate to defeat of the pandemic. Many workers–especially those who will face the public as servers, hosts and the like–remain fearful, and not without reason.

But a substantial and overlooked reason for the problem is Trump’s immigration policy. 

Restaurants (and for that matter, farmers) have long been dependent upon immigrant labor, and Trump’s policies (if hatred of Black and brown people can be dignified by the label “policy”) sharply curtailed the supply of those workers. Of course, pointing out that consequence is incompatible with Republican’s anti-immigration orthodoxy.

An ugly truth further complicating the situation is the fact that food establishments don’t depend exclusively on legal immigrants. A study from last year pointed out the significant extent to which restaurants rely on undocumented workers–and how they exploit those workers’ fears of deportation to underpay them.

Undocumented immigrants as a whole pay billions in taxes and a higher effective tax rate average than the top 1 percent of taxpayers (8 percent versus 5.4 percent).

And, as they often work in the back of house — as line cooks, bussers, dishwashers, and janitors — they’re largely invisible to the dining public. In reality, they’re the backbone of the industry. And yet, many are unable to obtain health insurance even though they perform backbreaking work day after day. Most didn’t receive a $1,200 stimulus check from the government, and they often fear getting tested for COVID-19 or obtaining care for fear of deportation.

The next time a GOP flack attributes the scarcity of workers to “dependency” caused by government largesse (a dependency that somehow doesn’t affect the wealthy and corporate beneficiaries of sizable subsidies), you might connect the dots for him.

You might also ask GOP opponents of immigration if they are willing to pay higher prices for fruits and vegetables, and more for that hamburger, if farmers and restaurant owners have to pay something close to a living wage to attract workers in a tighter (and Whiter) labor market. (For the record, I would be willing to pay more if I could rely on the assumption that the people picking produce and waiting on my table–whatever their ethnicity– were being paid a fair wage. )

Bottom line: anti-immigrant rhetoric grounded in barely veiled bigotry may generate votes, but rational, comprehensible and humane immigration policies are more likely to reopen your favorite watering hole….

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Alternate Realities

If we needed a reminder that today’s Republicans and Democrats occupy very different realities, Pew recently provided it.

The Pew Research Center fielded one of its periodic surveys, asking Americans to identify the issues facing the country that they considered most pressing. A majority of Democrats identified gun violence, health care affordability, the coronavirus outbreak and racism as very big problems facing the country today. Each of those issues was identified by two-thirds or more of Democrats and Democratic leaners.

But far fewer Republicans saw these issues as major problems.  The closest they came was the four-in-ten Republicans who did identify health care affordability; approximately two-in-ten rated the coronavirus and gun violence as big problems.

The extent to which climate change and economic inequality are viewed as very big problems is similarly split along partisan lines. About six-in-ten Democrats say each of these are very big problems, while just 21% of Republicans say economic inequality is a very big problem and even fewer (14%) say this about climate change.

By contrast, illegal immigration and the federal budget deficit are the top problems identified by Republicans. About seven-in-ten say both of these are very big problems for the country. Only about three-in-ten Democrats identify these issues as very big problems

It isn’t hard to see the influence of partisanship in these responses. Pew reports that Republicans today are 40 percentage points more likely than Democrats to say the deficit is a very big problem, a finding that–among other things– is in stark contrast to the numbers who said so during the Trump Administration, when there wasn’t a partisan split on that issue. Evidently, deficits incurred when Republican Presidents cut taxes on the wealthy aren’t as worrisome as deficits caused by Democratic Presidents spending on pandemic relief and infrastructure.

It is stating the obvious to say that government cannot solve a problem it fails to properly diagnose. We have evidently reached a point in our political lives where Americans refuse to see problems that are at all inconsistent with their political identities–so people who embrace so-called “Second Amendment” liberties don’t see the steady toll of mass shootings (not to mention the consistent loss of life attributable to suicide by gun) as a big problem.

What is truly difficult to understand is the survey’s finding that only 14% of Republicans identify climate change as a problem. This, in the face of dramatic increases in damaging weather events, out-of-control fires attributable to unusually severe droughts, rising sea levels and other evidence that is widely reported and just as widely attributed to climate change– and that increasingly affects the daily lives of ordinary Americans.

The fact that members of the GOP don’t consider income inequality a problem is more understandable, if equally unforgivable. After all, Republican policy preferences have caused that inequality.

It also isn’t surprising that Republicans named immigration as a “big problem.” For many of them, immigration these days equates to the entry of people of color, hastening the time when White Americans are no longer in the majority. Democrats who consider immigration a problem generally define the problem differently; for them, the problem is a dysfunctional system that takes far too long, is difficult to administer, and is unfair to categories of would-be immigrants.

The Pew survey illustrates what most observers already know: Republicans and Democrats no longer simply disagree about the policies needed to solve our problems. They occupy different realities, in which the identity and severity of the nation’s problems are starkly different.

No wonder our political system is gridlocked.

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