Poverty Is A Policy Choice

Tumultuous times offer us an opportunity to revisit previous assumptions about the way the world works–and these are definitely tumultuous times. This blog has considered the discomfort most of us feel witnessing elements of our society that weren’t always so obvious: the increasing displays of racial animus, widespread visual evidence that the policeman may not always be our friend, the disregard for others displayed by the “in your face” mask and vaccine refusers… and of course, we’ve had to deal with the pandemic’s upending of so much of what we used to think of as our normal lives.

The economic realities as we emerge from that pandemic are also challenging some unthinking assumptions about wealth and poverty.

Once more, Ezra Klein gets to the crux of the issue.

The American economy runs on poverty, or at least the constant threat of it. Americans like their goods cheap and their services plentiful and the two of them, together, require a sprawling labor force willing to work tough jobs at crummy wages. On the right, the barest glimmer of worker power is treated as a policy emergency, and the whip of poverty, not the lure of higher wages, is the appropriate response.

Reports that low-wage employers were having trouble filling open jobs sent Republican policymakers into a tizzy and led at least 25 Republican governors — and one Democratic governor — to announce plans to cut off expanded unemployment benefits early. Chipotle said that it would increase prices by about 4 percent to cover the cost of higher wages, prompting the National Republican Congressional Committee to issue a blistering response: “Democrats’ socialist stimulus bill caused a labor shortage, and now burrito lovers everywhere are footing the bill.” The Trumpist outlet The Federalist complained, “Restaurants have had to bribe current and prospective workers with fatter paychecks to lure them off their backsides and back to work.”

Klein considers recent proposals to eliminate poverty via a “negative income tax”–very similar to the one proposed several years ago by none other than Milton Friedman. Unlike a guaranteed annual income, this subsidy would phase out as incomes rose, so it would be  less costly than a universal benefit. But as Klein observes, the problem isn’t really the cost.

The real political problem for a guaranteed income isn’t the costs, but the benefits. A policy like this would give workers the power to make real choices. They could say no to a job they didn’t want, or quit one that exploited them. They could, and would, demand better wages, or take time off to attend school or simply to rest. When we spoke, Hamilton tried to sell it to me as a truer form of capitalism. “People can’t reap the returns of their effort without some baseline level of resources,” he said. “If you lack basic necessities with regards to economic well-being, you have no agency. You’re dictated to by others or live in a miserable state.”

But those in the economy with the power to do the dictating profit from the desperation of low-wage workers. One man’s misery is another man’s quick and affordable at-home lunch delivery.

Klein reminds readers that America is full of hardworking people who are kept poor by very low wages and harsh circumstance–people who want a job but can’t find one, or who can only find jobs that are “cruel in ways that would appall anyone sitting comfortably behind a desk.”

We know the absence of child care and affordable housing and decent public transit makes work, to say nothing of advancement, impossible for many. We know people lose jobs they value because of mental illness or physical disability or other factors beyond their control. We are not so naïve as to believe near-poverty and joblessness to be a comfortable condition or an attractive choice.

Klein also reminds us that “following the money” tells us what our priorities really are–that we always find money to pay for the things we value.

What America spends its national wealth on doesn’t reflect well on those values. We’ve spent trillions of dollars on wars in the Middle East and on tax cuts for the wealthy, and billions subsidizing fossil fuel companies and factory farms.

As Klein says, it’s within our power to wipe out poverty. It simply isn’t among our priorities.

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America’s Troubling Exceptionalism

“American Exceptionalism” means different things to different people.

Historically, the phrase was embraced by politicians pandering to voters’ belief in America’s superiority. We were the inventors of “freedom,” with a national “can do” spirit. “Exceptionalism” was a nicer word than “best,” a way to proclaim that we were Number One.

The dictionary definition of exceptional is neither positive nor negative: one can be exceptionally good or exceptionally bad. It simply denotes something unusual or atypical. One way that America’s political structure is definitely atypical is our two-party system, and as a recent post to FiveThirtyEight makes clear, that bit of exceptionalism is a significant source of the country’s current dysfunction.

The post begins by reiterating what is obvious to anyone who follows American politics:

As the “Big Lie” of a stolen election continues to dominate the Republican Party, GOP-controlled states enact restrictive voting laws and pursue preposterous election audits, aspiring candidates embrace the fiction of a stolen 2020 election, and a majority of GOP voters still believe Trump is the “true president,” the obvious questions follow: Where is this all headed? And is there any way out?

In one telling, the Republican Party will eventually come back to its senses and move past former President Donald Trump and Trumpist grievance politics, especially if Republicans lose a few elections in a row and realize that it’s a losing strategy. But there’s another possible outcome: More contested elections, more violence and, ultimately, a collapse into competitive authoritarianism enabled by electoral advantages that tilt in one party’s favor.

The post, by political scientist Lee Drutman, refers to historical patterns of democratic decline , and attributes the “cracking of the foundation of American democracy” to hyper-polarization. That polarization has given us a political environment within which one party can break democratic norms with impunity– because, as he notes, winning in the short term has become more important than maintaining democracy for the long term.

Drutman says that the hyper-polarization that threatens us is–to a significant extent– a product of the two-party system.

There’s no shortage of plausible explanations for why U.S. politics has become so polarized, but many of these theories describe impossible-to-reverse trends that have played out across developed democracies, like the rise of social media and the increased political salience of globalization, immigration and urban-rural cultural divides. All of these trends are important contributors, for sure. But if they alone are driving illiberalism and hyper-partisanship in the U.S., then the problem should be consistent across all western democracies. But it isn’t.

Drutman points to four ways in which America’s polarization is different from–and arguably more dangerous than–that of other countries (I encourage you to click through and evaluate that analysis for yourselves) and notes that in other countries where two parties dominate its politics, populations also display more unfavorable feelings toward the political opposition than populations in multi-party democracies.

In fact, in a new book, “American Affective Polarization in Comparative Perspective,” another team of scholars, Noam Gidron, James Adams and Will Horne, shows that citizens in majoritarian democracies with less proportional representation dislike both their own parties and opposing parties more than citizens in multiparty democracies with more proportional representation.

This pattern may have something to do with the shifting politics of coalition formation in proportional democracies, where few political enemies are ever permanent (e.g., the unlikely new governing coalition in Israel). This also echoes something social psychologists have found in running experiments on group behavior: Breaking people into three groups instead of two leads to less animosity. Something, in other words, appears to be unique about the binary condition, or in this case, the two-party system, that triggers the kind of good-vs-evil, dark-vs-light, us-against-them thinking that is particularly pronounced in the U.S.

Even the urban-rural split, which can be seen globally, is substantially less binary in proportional systems, partly because multiple parties can still win seats in geographically unfriendly areas, resulting in coalition governments with both urban and rural representation.

But it’s not just the lack of a stark urban-rural divide. As Drutman points out, there isn’t a strategic benefit to demonizing the opposition in an election that has more than two parties.

In a multiparty election, taking down one party might not necessarily help you. After all, another party might benefit, since negative attacks typically have a backlash. And because parties can take stronger positions and appeal more directly to voters on policy, there’s less need to rally your supporters by talking about how terrible and dangerous the other party is. Moreover, in systems where parties form governing coalitions, demonizing a side you’ve recently been in a coalition with (or hope to be in the future) doesn’t ring quite as true.

Can the U.S. change its political system to be more proportional? Unlikely. After all, today’s Republicans aren’t even willing to support the right of their opponents to vote….

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Critical Race Theory

I was really hoping I could avoid ever posting about the asinine debate over Critical Race Theory–but the other day, I saw that our bootlicker-to-the-Right Attorney General had entered the fray, a clear sign that the racists and their enablers think they’ve found a winning formula for 2022.

So I guess I do need to weigh in, in a (probably useless) effort to clarify what all the noise is about.

I didn’t encounter Critical Legal Studies and its cousin, Critical Race Theory until I was a college professor. Both approaches were–and are–relatively arcane, primarily the preoccupation of a subset of legal scholars. As Heather Cox Richardson recently explained it,  Critical Race Theory was a theory conceived in the 1970s by legal scholars trying to understand why the civil rights legislation of the past twenty years had not eliminated racial inequality in America.

They argued that general racial biases were baked into American law so that efforts to protect individuals from discrimination did not really get at the heart of the issue. While this theory focused on the law, it echoed the arguments historians have made—and proved—since the 1940s: our economy, education, housing, medical care, and so on, have developed with racial biases. This is not actually controversial among scholars.

While CRT explicitly focuses on systems, not individuals, and while it is largely limited to legal theory classes rather than public schools, Republicans have turned this theory into the idea that it attacks white Americans and that history teachers are indoctrinating schoolchildren to hate America. In the past three and half months, the Fox News Channel has talked about CRT nearly 1300 times.

I suppose I shouldn’t be shocked to discover that people who couldn’t define either “socialism” or “capitalism” if their lives depended on it are having trouble distinguishing between their fear of being “replaced” by Jews and scary Black people and a graduate-level study of how and where racial stereotypes are reflected in the country’s legal system. (I guess they never heard of redlining…)

Assertions that CRT is being taught in America’s elementary and high schools is ludicrous–as I have been complaining pretty much forever, schools aren’t even teaching the most basic concepts required for civic literacy, let alone a theory that requires a familiarity not just with the Constitution and Bill of Rights, but with significant elements of America’s legal structures.

The GOP-hyped hysteria over Critical Race Theory is just another effort to mask garden-variety racism  by pretending that the fight is really about something else. It takes its place beside the party’s rejection of “political correctness” (i.e., I refuse to abide by your social expectation of basic civility) and “cancel culture” (i.e., I should be free to spew my venom but you shouldn’t be free to respond by signaling your disapproval).

 One of the biggest disappointments of my adult life has been my reluctant recognition of the extent and depth of American racism, and the degree to which it infects our politics. That said, despite the evidence of the past few years–the hysterical reaction to Obama’s election, the subsequent election of an ignorant blowhard willing to demonize the “other”– I  still refuse to believe that the majority of Americans are in thrall to hate and fear.

The problem is, the rabid racist minority–thanks to gerrymandering,  vote suppression (and let’s be honest, voter apathy) and the Electoral College– has seized outsized control of America’s government. And when it comes to turnout, rage is a great motivator. If dishonest and dishonorable politicians can drum up fear and anger by emphasizing culture-war issues like the “threat” of a mischaracterized CRT, they may yet overwhelm the majority.

We live in an incredibly dangerous time.

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Cost Of Doing Business

Politico recently reported on a proposed law in Maine that would tax food wrappers. Before you react (either by yawning or rolling your eyes), consider the likely motive for imposing such a tax, and the potential implications.

Maine’s bill is an effort to recoup at least some of the costs governments incur when recycling tons of packaging waste. Managing America’s trash is expensive, its costs continue to escalate, and a significant percentage of those costs are paid with tax dollars. 

According to the report,  business groups actually asked lawmakers to tax food wrappers and containers. Industry groups did emerge to oppose certain parts of the proposal–mainly, who would control the tax revenue and how it’s spent. Packagers and consumer brands wanted authority to manage the money and use it exclusively for recycling. Maine regulators and their allies in the Legislature wanted the revenues to reimburse municipalities for hauling waste to landfills, too.

The industry won that battle, and the bill–that has now passed– designated revenues for recycling. This legislation appears be the first of its kind in the country; it could give momentum to a broader push to curb plastic waste and rationalize a recycling system that is outdated and varies from town to town. 

What I find really hopeful, however, is that I see  this as an (admittedly small) step toward dealing with the serious challenges posed by  externalities.

As I have often noted, I am a proponent of markets and capitalism–properly understood and properly regulated. The usual description of a working–and workable–market is that it is characterized by transactions between willing buyers and willing sellers  who are each in possession of all  information relevant to the transaction. That description is an accurate depiction of the ultimate purchase and sale, but it elides other, equally important assumptions–including the assumption that the pricing of a good accurately reflects the costs of its manufacture plus a reasonable profit.

That assumption isn’t necessarily accurate.

If I am manufacturing widgets, and the process involves the use or creation of a pollutant, the cost of production–and the price charged to the consumer– should include the expense of properly disposing of that pollutant. If –instead of following the rules for such disposal– I dump my contaminated waste in the local river (where it will have to be cleaned up by adjacent municipalities) I can price my widgets more advantageously than widget manufacturers who follow the rules and pay to dispose of their waste properly.

In a properly operating marketplace, the price of goods will reflect the complete cost of their manufacture–the expense of raw materials, all costs of turning those raw materials into a salable item, and the associated expenses of marketing and packaging. Appropriate regulations are those aimed at preventing some companies from gaining unfair advantage by “offloading” a portion of what should be their costs onto unsuspecting taxpayers.

Properly operating markets benefit us all. What doesn’t benefit us are (1) markets in clearly inappropriate economic sectors, like health care, where there is a huge (and unbridgeable) disparity in information and urgency between the parties to a transaction, and (2) inadequately or improperly regulated markets that allow–or even encourage–companies to profit by cheating.  

The packaging issue being addressed in Maine isn’t an instance of cheating; technically, I doubt that the need to recycle packaging is even a true externality–at least, as economists would categorize it–but the need to recycle packaging waste clearly does impose a cost that is currently being covered by taxpayers rather than manufacturers.

Maine appears to be the first state to address the allocation of that expense, and it will be interesting to see how many other states (if any) follow suit. At the very least, efforts of this sort raise awareness of an issue that is all too easy to ignore.

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More Than One Way To Skin The Filibuster Cat…

Americans who may never have heard of the filibuster–or who were previously only dimly aware of that parliamentary mechanism–are passionately debating its continued existence. One reason so many of us favor its elimination is that the filibuster in its current iteration bears little or no resemblance to the original rule.

Whatever the original purpose of the filibuster, for many years its use was infrequent. For one thing, it required a Senator to actually make a lengthy speech on the Senate floor–unlike today. In its current form, it operates to require government by super-majority–it has become a weapon employed by extremists to hold the country hostage.

A bit of history is instructive.

The original idea of a filibuster was that so long as a senator kept talking, the bill in question couldn’t move forward. Once those opposed to the measure felt they had made their case, or at least exhausted their argument, they would leave the Senate floor and allow a vote. In 1917, when filibustering Senators threatened President Wilson’s ability to respond to a perceived military threat, the Senate adopted a mechanism called cloture, allowing a super-majority vote to end a filibuster.

In 1975, the Senate again changed the rules, making it much, much easier to filibuster.

The new rules allowed other business to be conducted during the time a filibuster is (theoretically) taking place. Senators no longer are required to take to the Senate floor and publicly argue their case. This “virtual” use has increased dramatically as partisan polarization has worsened, and it has effectively abolished the principle of majority rule. It now takes the sixty votes needed for cloture to pass any legislation. This anti-democratic result isn’t just in direct conflict with the intent of the Founders, it has brought normal government operation to a standstill.

Meanwhile, the lack of any requirement to publicly debate the matter keeps Americans  from hearing and evaluating the rationale for opposition to a measure–or even understanding why nothing is getting done.

There is really no principled argument for maintaining the filibuster in its current iteration. But there may be alternatives to simply jettisoning it, as Ezra Klein points out in a recent column about Joe Manchin.

Klein is clear-eyed about Manchin’s purported reasons for maintaining the filibuster– devotion to a long-gone “bipartisanship.”

At his worst, Manchin prizes the aesthetic of bipartisanship over its actual pursuit. In those moments, he becomes a defender of the status quo and, paradoxically, an enabler of Republican partisanship. But over the past 24 hours, a plausible path has emerged through which Manchin could build a more cooperative and deliberative Senate. It’s narrow, but it’s there.

Part of the strategy relies on changing the rules. Manchin has said, over and over again, that he will not eliminate or weaken the filibuster. I wish he’d reconsider, but he won’t. The possibility remains, however, that he will strengthen the filibuster.

Klein points out how dramatically the filibuster has morphed from its original form, and considers–in lieu of simply getting rid of it–how it might be returned to something approximating its historical form.

It’s possible to imagine a set of reforms that would restore something more like the filibuster of yore and rebuild the deliberative capacities of the Senate. This would begin with a variation on the congressional scholar Norm Ornstein’s idea to shift the burden of the filibuster: Instead of demanding 60 votes to end debate, require 40 (or 41) to continue it.

That would return the filibuster to something more like we imagine it to be: Impassioned minorities could hold the floor with theatrical speeches, shining public attention on their arguments, but the majority could end debate if the minority relented. To sustain this kind of filibuster would be grueling, which is as it should be. The filibuster is an extraordinary measure, and it should require extraordinary commitment to deploy.

The majority, for its part, would have to carefully weigh the consequences of proceeding with partisan legislation: They would gamble weeks or months of Senate time if they chose to face down a filibuster, with no guarantee of passage on the other end. A reform like this would demand more from both the majority and the minority and ignite the kinds of lengthy, public debates that the Senate was once known for.

In leaked audio published by The Intercept on Wednesday, Manchin appeared to favor exactly this kind of change. “I think, basically, it should be 41 people have to force the issue versus the 60 that we need in the affirmative,” he said.

I think that most of us who are exasperated by the constant, dishonest and sneaky use of the filibuster in its current form would be willing to give this modification a try. 

Fingers crossed.

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