Public Policy and Governance – Page 249

Economic Despair

More and more, I am reminded of that old adage that “it ain’t what you don’t know that hurts you, it’s what you know that just ain’t so.”

A recent research paper from the Brookings Institution investigated one of those “things we know,” and came to some disquieting conclusions.

When it comes to staying in school, many economists talk about the “aspirational effects” of income inequality. When students look around them and see a better life, they are incentivized to invest in their own human capital—such as investing in their own education.

But what if that conventional thinking is wrong? What if inequality doesn’t incentivize students at the bottom of the income ladder to work harder, but rather disincentivizes them? This is one of the questions Melissa S. Kearney and Phillip B. Levine sought to answer in a new paper published as part of the Spring 2016 Brookings Papers on Economic Activity.

Among other things, Kearney and Levine found that low-income children growing up in states that have greater income inequality are dropping out of high school at higher rates than are children living in states with less income inequality.

The authors point to a concept they call “economic despair,” or a feeling that economic success is unlikely because the distance from the bottom to the middle of the ladder is too far to climb. If a student perceives a lower benefit to remaining in school, then he or she will choose to drop out—even if they aren’t struggling academically.

What is particularly interesting about this study is that it focused upon the perceived distance between the bottom and the middle of the income distribution—not the distance between the bottom and the top. The idea is that what they call “lower tail” inequality is a more relevant measure, because—although the top may realistically seem to be out of reach—making it to the middle would seem to be a more manageable goal.

The authors suggest interventions: mentoring programs that connect youth with successful adults, programs focused on establishing high expectations and pathways to graduation, or early-childhood parenting programs to build self-esteem and engender positive behaviors. Although such interventions might help ameliorate the problem, it’s hard to escape the conclusion that the effects would be modest, at best.

In fact, this study is one more “data point” in a picture that increasingly points to an inescapable conclusion: the level of inequality in America today is unsustainable and extremely detrimental, not just to the prospects of poor children, but to the nation as a whole.

We are in the midst of an election season that has unleashed a furious and troubling display of social dysfunction, in-your-face bigotry and populist anger. It’s hard not to attribute a significant part of that to economic realities that pit low-wage workers against each other and against a perceived plutocracy that has “rigged the system.”

Social scientists tell us that stable democracies are characterized by distributional equity, and the existence of a large and relatively secure middle class. Economists tell us that economic growth requires robust demand, generated by consumers with discretionary dollars to spend in the market, and a well-educated workforce.

When large numbers of people working 40 hours a week cannot earn enough to cover basic living expenses, when children don’t believe education offers them a path out of subsistence, democracy and the economy both suffer.

It’s past time to revisit some of the economic “facts” we think we know.

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Sticking to Principle

It’s a complaint we hear constantly from both ends of the political spectrum: we want to elect people who will “stick to their principles.” We’re tired of the DINOs and RINOs willing to negotiate with the political “enemy,” look for areas of agreement and–most scandalous of all–settle for results that are less than 100% of what “our” side demands.

Look, I get wanting principal. No one wants an elected official without a spine, or worse, a lawmaker willing to “sell out” her true beliefs to placate a big donor, avoid a primary challenge or cave to pressure from a bigoted segment of the party base.

The problem is, not every compromise is a deviation from principle.

There’s a big difference between ideological rigidity and acting in accordance with principle. It’s a difference that’s invisible to the zealots who see every issue as black and white, every encounter with reality and its inevitable complexities, and every effort to find workable accommodations, a betrayal.

Americans used to understand that it’s better to get half of what you want than none at all. We used to understand that legislation is complicated, and not every description of a bill provided in hysterical internet “alerts” by advocacy groups tells the whole story. We used to recognize that legislation goes through a lengthy process, and that what might have begun as a step in the right direction might no longer be supportable, even by those who agree with the original intent.

Americans used to understand that issues are complicated, and that we are not well-served by people who refuse to admit or understand that.

And we used to understand that a willingness to blow up Congress and shut down the government in order to get what you want (yes, Ted Cruz, I’m looking at you), or a willingness to cause continuing harm to thousands of people by holding up water system repairs in Flint, Michigan because you don’t believe the federal government should be in the business of providing aid to states (yes, Mike Lee, I’m looking at you) is evidence of grandiosity and disregard for the consequences, not principle.

Effective governance and strategic negotiation aren’t as exciting as grandstanding and moralizing, but we used to understand that we are better served by the former than the latter.

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Mike Pence: Embarrassing Indiana Yet Again

Nothing like picking up the New York Times, “the nation’s newspaper,” seeing an editorial titled “Judge’s Message to Xenophobes,” and realizing it’s all about Indiana Governor Mike Pence.

The editorial was in response to the stinging decision by Federal Judge Tanya Walton Pratt, in which she not only found what every first-year law student already knew–that federal government, not the state, has jurisdiction over the resettlement of Syrian refugees–but that Pence’s move to withhold resettlement funds was “in no way” justified by his claim that his main concern was the safety of Indiana residents.

Resettlement lawyers said the ruling was the first to address substantively the attempt by some governors, mostly Republicans, to exploit the terrorism issue. The presidential candidates, of course, have been vying furiously to keep up with venomous nativism coming from Donald Trump and from Gov. Chris Christie of New Jersey, who told a conservative radio interviewer that “I don’t think orphans under 5 are being, you know, should be admitted into the United States at this point.”

I had no idea those five-year-old Syrian kids could be so dangerous….but of course, they’re Muslims….

According to the State Department, 67 percent of the Syrian refugees referred to the United States for asylum are women and children under the age of 12. Mr. Trump has falsely suggested that federal officials steered Syrian refugees to states with Republican governors, when in fact resettlement decisions are made by mainstream social agencies like the United States Conference of Catholic Bishops. Mr. Trump’s claim was one more example of propaganda being used to distort the truth on the refugee issue.

Governor Pence’s willingness to make political points by inflicting unnecessary harm on children who are already in dire straits simply confirms what even the most casual observer has seen: a self-important, self-described “Christian” more interested in pandering to his party’s fundamentalist base than in governing the state of Indiana.

What is even more unbelievable is that Mr. Posturer insists he will appeal the decision. He will expend taxpayer resources to appeal a judicial application of settled law, further announcing to the nation and the world that Indiana is an unwelcoming and discriminatory state.

That ought to be almost as good for business as his defense of homophobia.

I know where you can buy a “Pence Must Go” sign.

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Double Whammy

A friend from Wisconsin often shares news reported in that state’s media. Most recently, he sent me an article reporting on the troubling results of research into poverty and public health.

Malia Jones is an assistant scientist and social epidemiologist working in Wisconsin. As she notes, her conclusions about increases in poverty despite the economic recovery are consistent with those reached by other scholars.

We didn’t look at explanations for that but other people have, and I think what’s happening is that people at the low end of the economic spectrum are not benefiting from recovery. They’re really being left behind. So inequality is increasing in the face of an expanding economy.

Jones’ work is one more confirmation that, as she says, low-income Americans are being left behind. But her analysis didn’t stop there, and her discussion of both the immediate and long-term implications requires attention.

In short, poor children in America are getting a “double whammy.”

Jones notes that the number of children living in poverty has increased since the Great Recession, and that the existence of children living in poverty is not only a humanitarian issue, but also a critical public health issue. As she points out, exposure to the myriad problems that accompany an impoverished childhood can lead to a lifetime of disability.

It’s those kinds of stressors like housing insecurity, not being sure if there’s going to be food for dinner, living in a crummy neighborhood with violence, those stressors can impair normal brain development.

Impaired brain development often leads to behavioral outcomes; as anyone who has taught in a low-income area can attest, it affects school performance in a variety of ways. Children of poverty often lack the opportunity or means to develop the sorts of skill sets common among middle and higher income students. That, in turn, affects later access to jobs, trapping such children in a cycle of poverty.

Living in poverty also increases the likelihood of poor health. Living in poverty is a major risk factor for obesity, diabetes, hypertension, and even premature death.

It seems unconscionable that the United States would ignore the lifetime health effects of poverty on poor children who are already living in sub-optimal and stressful conditions. Even the self-satisfied and clueless scolds who insist that poor people just need to work harder can’t hold children responsible for their impoverished situations. Surely, even the adamant opponents of Obamacare, Medicaid and other efforts to make health care affordable can’t believe that it is either moral or economically reasonable to deprive children of adequate medical attention.

And surely, even self-described fiscal conservatives must realize that the long-term costs of neglecting the most basic needs of poor children are far higher than the costs of timely intervention.

Why is it that American public policy choices so often make me think of the adage: penny wise, pound foolish?

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If There Was Sauce for the Goose…

By now, anyone not living in a cave knows that Republicans in the Senate are refusing to participate in the constitutionally-required exercise of advising and consenting on a proposed Supreme Court nominee. Not that they have objections to the (as yet unnamed) choice–no, they object to even allowing the President to fulfill his constitutionally-required duty.

Indiana Republicans seem to like the GOP’s new “Obama Rule;” to the extent that I can understand the basis upon which Mitch McConnell invented it, it goes something like this: We don’t like Obama, and we think the next President will be more to our taste. (Ignore the fact that Obama won election pretty overwhelmingly, and a lot of Americans–arguably still a pretty robust majority–still do like him.)

Here in Indiana, we also have a state supreme court vacancy. Indeed, interviews for the position are already underway. Governor Pence is in the last year of his term, and all signs suggest that he is far less popular than the President. (In my circles, he’s less popular than dandruff.) So shouldn’t the voters get to decide who they want picking Indiana’s next state supreme court justice?

If America is now operating on the basis of what Bill Maher might call a “new rule”—if we’ve decided that it is improper for political executives to select judges during the last year of their term–shouldn’t we apply that rule to Governor Pence?

Actually, we might take the new rule even further; since one-third of the US Senate is up for election this year, maybe those senators shouldn’t vote or do much of anything until we see whether the electorate has returned them to office. (Okay–scratch that last suggestion: this Senate isn’t doing anything anyway.)

Besides, let’s be honest; it’s only a black President who’s limited to 3/5 of a term….

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