Category Archives: Public Policy and Governance

Moral Deficit

There are plenty of issues that people of good will see differently.

For example, most Americans—at least the ones I know—consider themselves fiscal conservatives, but that doesn’t mean they necessarily agree about which policies are fiscally responsible. Depending upon their understanding of economics, some people will argue that now is the time to cut back spending to concentrate on deficit reduction; others insist that cuts now will delay economic recovery and reduce tax receipts–that we should spend to stimulate the economy and create jobs, because more jobs will both reduce government expenditures and generate more tax revenues with which to pay down the deficit. Both groups want to reduce the deficit; it’s an honest disagreement over the best way to do so.

Other disagreements are harder to understand.

The Zadroga 9/11 Health and Compensation Act would pay health care costs for 9/11 first responders who were sickened by toxic fumes and debris when the Twin Towers fell.  I don’t use the word “hero” very often, but that’s what these firefighters, police officers and medics were. They braved the inferno in order to rescue those inside, and they are now suffering from injuries and illnesses caused by that desperate effort. It passed the House with 90% of Republicans opposed. Then Senate Republicans refused to allow a vote on it, because “it would add to the deficit.”

Concern for the deficit would have been more believable had GOP Senators not been holding this and other measures hostage to their insistence that the richest 2% of Americans retain the favorable tax rates they received from George W. Bush.

Extending those rates would cost many billions more than providing much-needed medical care for first responders. Marginal rates are at historic lows: in 1945, the rate was 91% of every dollar earned over 200,000; in 1982, 50% of everything over 106,000; in 1993, 39.6% of earnings over 250,000.  It is now 35% of everything over 357,700. If the Bush tax cuts expire, rates will revert to 1993 levels. Those levels would remain very low by historical standards, but even so, expiration would generate billions to reduce the deficit.

Republicans argue that low taxes on the wealthy spur job creation. The evidence for that assertion is mixed, to put it mildly. If we really want to encourage job creation, we’d be better served giving businesses tax credits for new jobs.

The income gap between rich and poor in this country is wider than it has been since the gilded age. Joblessness is at its highest point since the Depression. These indicators are warning signs, not just for our economic health, but for our civic well-being.

Denying first responders desperately needed medical treatment so that millionaires won’t have to endure a 4.6% marginal tax rate increase cannot be excused as a good-faith policy dispute. It is, quite simply, disgraceful.

Americans are facing two kinds of deficits right now: monetary and moral. Ultimately, our fiscal problems—difficult as they seem—may be easier to resolve.

Power to the People

Back in the wild and woolly Sixties, “Power to the People” was a slogan often shouted at sit-ins and the other disruptive gatherings that characterized those tumultuous times. We hear similar chants today from those attending “tea party” events.

Reporters covering the various factions of so-called tea partiers tell us that there really is no central issue motivating them; rather, these events are expressions of frustration and anger, fueled by feelings of powerlessness. A sour economy certainly doesn’t help.

It’s easy to dismiss Tea Party folks as fringe malcontents who are being given undue attention by the media; there were all of six hundred people in attendance at the recent national “convention” that received so much coverage. Certainly, it is not a coherent movement advocating any particular goal. But outright dismissal would be a mistake; while most Americans do not share the paranoia, racism and hostility to government that characterize Tea Party gatherings, huge numbers of Americans do share participants’ frustration and their belief that our governing institutions are not working.

Whatever one thinks of Evan Bayh and his motives for leaving the Senate, it is hard to argue with his accusation that extreme partisanship and the influence of moneyed special interests have crippled that institution. Game-playing has replaced policymaking, with the result that efforts to solve our most pressing problems—think healthcare, the environment, job creation—go nowhere. Time and time again, scoring political points or keeping the other party from doing so, trumps doing the people’s business. Time and time again, serving the vested interests trumps serving the people’s interests.

It isn’t only the U.S. Senate. The Indiana Legislature seems equally unwilling or unable to address the issues Hoosier voters really care about—improving education, creating jobs, reforming and streamlining our outmoded government and election systems.

What are Indiana lawmakers—of both parties, it should be noted—spending time on? Well, there’s always time to debate another anti-same-sex marriage amendment to the Indiana Constitution. Or to micro-manage local school board decisions about when school should start.

This year, lawmakers spent time on a bill prohibiting employers “from adopting or enforcing” rules against employees bringing guns to work. Perhaps you didn’t realize what a truly important problem that was—surely, every employee has the right to pack heat on his employer’s premises! The bill says employers have no right to prohibit workers from bringing weapons, so long as they are kept in a locked car, trunk, or glove compartment. Virtually every employer in the state is opposed to this bill, which has sailed through the House 76 to 21, and will easily pass the Senate.

I would suggest we return power to the people by voting these incumbents out of office, but unfortunately, voters no longer choose their representatives. Thanks to gerrymandering and the precision of modern computers, lawmakers today choose their voters.

It won’t surprise you to learn that the General Assembly hasn’t spent much time on proposals to eliminate gerrymandering, or to return power to the people.

Happily Ever After

The last time I babysat my younger grandchildren, we watched one of those age-appropriate Hollywood fairy tales where the good guy defeats the bad guy and then the story ends because—it is understood by all, even five-year olds—that everyone will now live happily ever after.

 Many Americans apply that simple fantasy to politics: once we elect the “good guy,” the story’s over. If we’ve elected the “bad guy,” the story’s still over, but with an unhappy ending.  This childlike belief explains much irrationality on both the right and left a scant year after Obama’s election.  

 Tea party “patriots” and the right-wing fringe are screaming that health-care reform is a Nazi plot and Obama will single-handedly destroy America. Their left-wing counterparts charge Obama with “selling out” to the power structure because he has yet to fulfill all his campaign promises or solve all of America’s problems.

 This may come as something of a shock to both groups, but real life doesn’t work that way. Changing the course of institutions—particular large, entrenched ones—is extremely difficult. Systems matter, and they can favor or smother efforts to change direction for good or ill.

Constitutional constraints on government power are important in a nation that values the rule of law. As the old saying goes, one person’s accountability is another’s red tape. Achieving a workable balance is an ongoing challenge. But political systems also create roadblocks that are neither constitutionally required nor democratically sound.

Let me offer a very few examples.

Gerrymandering frustrates efforts to create a more competitive political playing field, and protects incumbents from constituents who want to retire them. In the Senate, filibusters—as we have seen—allow legislative minorities to frustrate the efforts of majorities, even when those majorities represent overwhelming percentages of the population. Our system gives every state, no matter how thinly or densely populated, two Senators. You can argue the pros and cons of such a system, but love it or hate it, it’s the system we have. As a result, a couple hundred voters from Montana have the power to frustrate a million from California or Texas. One Joe Lieberman can frustrate an entire nation.

The Senate also observes quaint and arguably indefensible “traditions” like the one that allows any Senator to put a hold on any Presidential nomination for any reason. Recently, Senate Minority Whip Jon Kyl decided to show his displeasure with a delay in the enforcement of internet gambling prohibitions. So he put a hold on six of the Administration’s pending nominations to fill positions in the Treasury Department. No one has a problem with the people who’ve been nominated, mind you. But because Jon Kyl wants action on internet gambling, the Treasury Department is operating without needed management personnel during a global economic meltdown.

The moral of this story? Systems matter, and many of ours are broken.

As a result, even when a “good guy” wins, “happily ever after” is likely to fall far short of our fantasies.

Who Can We Trust?

The Indianapolis Star has been advocating rather forcefully for laws to tighten restrictions on the lobbyists who exercise increasing power at the Statehouse. The Star argues that such restrictions are necessary if we are to restore a modicum of trust in our legislative body.

 They’re right.

 My most recent book—“Distrust, American Style”—was an inquiry into the current American “trust deficit.” I learned a lot.

In recent decades, old-fashioned corruption and greed combined with regulatory dysfunction to undermine business ethics. Enron, WorldCom, Halliburton, the sub-prime housing market meltdown—these and so many others are the stuff of hourly news reports. Many business scandals were enabled by failures of federal regulatory agencies; others were traced back to K Street influence-peddlers.

But it goes well beyond Wall Street greed and government incompetence.

Religious organizations haven’t been covering themselves with glory, heavenly or otherwise. Revelations ranging from misappropriation of funds to protection of pedophiles to the “outing” of stridently anti-gay clergy have discouraged believers and increased skepticism of organized religion. In that other American religion, major league sports, the news has been no better. High profile investigations confirmed widespread use of steroids by baseball players. An NBA referee was found guilty of taking bribes to “shade” close calls, and others have been accused of betting on games at which they officiate.  Michael Vick’s federal  indictment and guilty plea on charges related to dog fighting was tabloid fodder for weeks.

Scandals have even involved charitable organizations; a few years ago, United Way of America had to fire an Executive Director accused of using contributions to finance a lavish lifestyle, and other charities have been accused of spending far more on overhead than on good works.

In short, the institutions of our common civic life have seemingly unraveled.

Perhaps—as my more cynical friends believe—things have always been this way. But in earlier times, we did not have 24/7 cable news, millions of blogs and assorted broadcast pundits constantly telling us about it. If Americans are less trusting than we used to be, it’s no wonder.

Unfortunately, when citizens don’t know who they can trust, everything becomes fodder for suspicion and urban legend. Eventually, government grinds to a halt, and even the most routine tasks fall victim to conspiracy theories and fear-mongering. We are perilously close to such a meltdown in American civic life.

Our system of government was deliberately structured around the notion of checks and balances. The founders recognized that not all public servants would be trustworthy; their response was to create structures and competing power centers that would force accountability and transparency—to create a system we could trust, even when some people in that system weren’t trustworthy.

Perhaps the Indiana legislature is filled with the innocent do-gooders that Pat Bauer and Brian Bosma touchingly describe. But many of us have our doubts. The modest reforms supported by the Indianapolis Star would be a welcome step toward removing those doubts and restoring a measure of  trust in our governing institutions.