The Shutdown

One of my favorite economists, Paul Krugman, has abandoned his New York Times column after 20 plus years. He has, however, continued his daily subscriber letter, which I receive, and in a recent one, he addressed the  embarrassing pre-Christmas clown show that threatened to shut down the government. He titled the essay–quite appropriately–“The Chaos Monkeys Have Already Taken Over the Zoo.” 

In an earlier Times piece, written before passage of the last-ditch, last-minute deal to keep government over, Krugman had written

Speaker Mike Johnson (soon to be ex-speaker?) is scrambling to put a budget deal together to avoid a government shutdown tomorrow. What a Holiday Gift from President Musk and First Laddy Trump. More at The NY Times here.

They couldn’t even wait till January to unleash the chaos. Classic hubris — too bad the country and the world are within the blast radius.

One more thing. Assuming Johnson is unable to remain Speaker in the next Congress, the days and weeks it might take the GOP to select a new ‘leader’ might take them past the deadline to certify the election.

(I hadn’t considered that possibility, and quite probably, neither did the congressional monkeys, aka “the usual suspects.” An inability to certify Trump’s election, brought on by the most MAGA members of the House, would have been..interesting…)

Krugman was far from the only observer who pointed out that the reasons “President Musk” gave for torpedoing the initial bipartisan measure were mostly bogus. His enumeration of the items in the measure he found unacceptable included a number that weren’t actually included in the measure. (I’m sure everyone reading this is shocked by the revelation that Musk is happy to depart from the truth when it serves his purposes…) A number of reports have zeroed in on what was apparently the real reason he wanted to kill the measure.

As the Hill explained,

In a Friday letter to congressional leaders, Rep. Rosa DeLauro (D-Conn.) claimed Musk derailed the deal that would have avoided a government shutdown “in order to protect his wallet and the Chinese Communist Party at the expense of American workers, innovators and businesses.”

The spending agreement released Tuesday included a bipartisan provision to limit and screen U.S. investments in China, among dozens of other proposals attached to the 1,500-page bill.

As the CEO and largest stockholder in Tesla, Musk has extensive business connections to China. The company operates a major manufacturing plant in Shanghai and has sought to build deeper connections with Chinese companies.

Interestingly, although the final bill did not include Trump’s demand to scrap the debt ceiling, it did omit the provision that would have curtailed Musk’s business with China. Musk evidently had more clout with lawmakers than Trump–quite possibly because he has ample resources to fund his threat to primary any legislators who failed to knuckle under.

What is most stunning about this particular “Chaos monkeys” episode is that the entire fiasco was triggered by a man with no official government authority–a man who has never submitted himself to the electorate, who has never received a single vote– yet clearly considers himself a co-President, and just as clearly, intends to use the considerable power of his purse to protect his personal financial interests, if need be, at the expense of the American public’s interests.

Musk is by far the richest of Trump’s proposed governing cabal, but he’s not the only billionaire, nor is he the only one who will bring multiple conflicts of interest to a designated role. The grifter-in-chief proposes to surround himself with other rich men (almost all of his designees are White “Christian” males) who are equally ignorant of government operations and constitutional constraints. They are clearly unconcerned about what policies might be in the national interest. Their first impulses will be to protect their own sources of wealth (or, in the case of RFK, Jr. and Tulsi Gabbard, to impose their loony-tunes worldviews on the country.)

The dictionary defines Kakistocracy as “government by the least suitable or competent citizens of a state,” and Corporatism as economic control by powerful corporate interests.

I think we’re there.

Comments

The Mump Regime

Well, I see where Elon Musk has recently praised Germany’s neo- Nazis. That’s not a big surprise–anyone who has followed the remaking of Twitter/X into a platform filled with racism, anti-Semitism and other assorted bigotries promoted by the world’s richest man can hardly be shocked by an explicit admission of his already-obvious political preferences.

What has been shocking–at least to me–has been the growing evidence that Musk used his riches to purchase the Presidency. The last few days–as our dysfunctional Congress struggled to avert a pre-Christmas government shutdown–Americans have been introduced to a stunning reality: for his expenditure of a quarter-billion dollars to elect Trump, Musk evidently expects to be a co-President. 

Despite the old adage, there really is something new under the sun…

Timothy Snyder–author of a best-selling book about tyranny–has summed up the situation in his Substack.

How to call this thing that is coming to America in a month?

“Administration” seems inaccurate, since it assumes that the elected president just administers a government for four years, whereas Trump clearly wants to rule indefinitely. It also seems wrong since the people he has appointed will chiefly break things rather than run them.

And so “regime” rather than administration. But whose?

As Snyder points out, the correct answer to that question might be Musk. Compared to Musk, Trump is a poor man. He’s also a man who owes Musk a lot more than he owes his voters or even his other ultra-rich donors. And as Snyder predicts, “Looking ahead, it will be Musk, not Trump, who pays for all the lawsuits to quiet the rest of us, or for the campaigns to primary dissenting Republicans.”

As he says, given that reality, any effort to accurately describe the upcoming regime should probably put Musk’s name first. Snyder dubs it “The Mump Regime.” It’s a title that does double duty.

And that recalls a very essential element of the collapse. One weakness of democracy in the United States has always been public health. The lack of a national health system brings us shorter lives, greater anxiety, and less freedom.

Now, with RFK Jr., we face the rollback of vaccinations, and thus a return, precisely, of mumps. And rubella and measles, which are halted by the same vaccine. And much else. The rest of oligarchical cabinet will weaken government by law through incompetence, spite, or avarice. But RFK Jr. will break society by making us sick.

And, thus, another reason to call this thing the Mump Regime. Get ready.

The chaos of the past few days hasn’t just highlighted the inability of Republicans to govern. (Anyone who’s been following the GOP clown-show in the U.S. House already knew that.) It has introduced us to an unprecedented display of the power of wealth.

However, it has also foreshadowed what is likely to be an epic clash of egos.

Musk and Trump share a couple of obvious attributes: massive ignorance of the way government works, and huge egos that prevent them from recognizing their own limitations. The outcome of Musk’s effort to throw a monkey wrench into the original bipartisan bill (itself a stopgap measure that displayed the inability of House Republicans to legislate) was a bill that defied most of their demands. It was also something of a PR disaster for Trump–and if there’s anything that is really important to Trump, it’s hogging the limelight.

The likely implosion of the Mump administration–an epic, forthcoming battle between two massive egos– may save the country from at least some of Trump’s “promises” that would vastly increase inflation, harm millions of Americans, and reverse the strong economic progress made under the Biden administration.

It’s probably too much to hope for, but the antics of these man-child know-nothings might also help undercut the widespread, mistaken belief that very wealthy people are rich because they’re smarter than the rest of us. That belief–that unwarranted respect for those who have managed (for Musk and Trump, via inheritance) to be richer than most people–has been critical to Trump’s support. His wealth and bluster have allowed him to escape public accountability for multiple manifestly stupid acts and pronouncements. The same is true of Musk. (Because they are rich, observers often assume that there must be a method to the madness.. )

By a very slim margin, American voters elected one rich ignoramus. They didn’t elect the other, richer one, although he is acting as though his “investment” entitles him to a “co-Presidency.”. A “come to Jesus” moment can’t be far off.

Pass the popcorn…..

Comments

Unintended Consequences

One of the trickiest problems facing policymakers is the risk of unintended consequences. Even policies passed with the best of intentions can produce very negative outcomes, often to seemingly unrelated issues. Good policy decisions rest both on proper diagnosis–that is, a thoughtful and informed analysis of the problem to be solved and its causes–and on recognition of the effects a proposed policy change might have on other areas of American life.

Those two requirements of sound policymaking–proper diagnosis and an understanding of what we might call the “inter-relationship” of policy areas–require policymakers to be competent and informed. Enormous damage can be done by ideologues impatient with pesky realities, or self-important ignoramuses acting with limited understanding..

Considerable harm can be done unintentionally by people who lack the knowledge necessary to see the probable consequences of their ignorance. What makes the coming Trump administration so terrifying is that it is composed almost entirely of such people.

Trump himself is clearly unable to understand the logical outcomes of his threats–think his love affair with tariffs, which would vastly increase inflation, or the effects of his plan to deport millions of immigrants, many of whom American farmers rely upon to pick their crops.

I thought about the problem of unintended consequences when I came across an article focused on the unfortunate effects of even well-meaning legislation passed by thoughtful legislators. 

Richard Rothstein wrote The Color of Law, a book I heartily recommend. It was an eye-opening history of the many laws that created America’s residential segregation, and any reader who comes to it while laboring under the misapprehension that such neighborhoods arose by chance or choice will discover otherwise. (I will admit to being shocked when I read it, and I did know some of what he covered.)

In the linked article, however, he takes analysis a bit farther, and shows how that shameful history led to a seemingly unrelated bill that worsened the negative outcomes of residential segregation.

I was recently asked how I came to write The Color of LawThe answer is this: In the 1990s and early 2000s, I had been a journalist and policy analyst studying public education. At the time, it was conventional wisdom that the “achievement gap”—black students having lower average performance than white students—was caused by lazy or incompetent teachers of low-income children. In 2002, this view, shared across the political spectrum, was enshrined in federal legislation: the “No Child Left Behind” law. Its theory was that if we shamed teachers by publishing their low-income African American students’ test scores, the teachers would work harder and the achievement gap would disappear. Residues of this law continue to this day. If you wonder why elementary and secondary schools are so obsessed with administering standardized tests and reporting their scores, it’s because of that policy.

Rothstein eventually concluded that lower average achievement of these pupils wasn’t due to deficits of instruction, but to the

social and economic challenges that children brought with them to school—for example, greater rates of lead poisoning that resulted in damaged cognitive function; living in more polluted neighborhoods that led to a higher incidence of asthma that kept children up at night wheezing and coming to school drowsier the next day; lack of adequate health care, including dental care, that brought more children to school with distracting toothaches, and on and on…

Looking back on this now, it’s remarkable that the book treated these all as individual student disadvantages, and made very little mention of segregation. But I soon thereafter realized that it was one thing if individual students came to school with one or more of such challenges; it was quite another if many students in a school did so, overwhelming the ability of even the best teachers to overcome them. We call such schools “segregated” schools and so I began to think of school segregation as the greatest problem facing American public education. And as I thought about it further, an obvious fact struck me: the reason we have segregated schools is because they are located in segregated neighborhoods. For me, a logical next step was to view neighborhood segregation as a school problem, one that writers about education policy should consider more carefully.

That insight led Rothstein to write The Color of Law. It should caution us to recognize the complex and inter-related nature of so many of the issues modern America faces.

We will soon see what happens when the government is run by people who don’t understand H.L. Mencken’s observation that “For every complex problem, there’s an answer that is clear, simple, and wrong.”

Comments

The Costs of Rejecting Reality

Thanks to the information environment we inhabit, we Americans increasingly inhabit alternate “realities.” I’ve put quotation marks around the term “realities,” because it has become very clear that the universe in which too many Americans have chosen to reside is at odds with–indeed, incompatible with–empirical reality. The amount of propaganda, conspiracy theories, and other varieties of mis- and dis-information readily available online greatly facilitates the very human desire to indulge in confirmation bias–and the failure of civic and scientific education has facilitated widespread acceptance of “realities” wildly at odds with fact and credible evidence.

It seems pertinent, therefore, to ask: what happens when people choose to deny empirical evidence and facts they find inconvenient or annoying? What, for example, might we expect from RFK, Jr’s refusal to understand the science of vaccines, or the demonstrable benefits of a fluoridated water supply?

History is instructive. I did some (very superficial) research, and found fascinating (and depressing) evidence of humanity’s past experience with the denial of science and empirical inquiry.

Before acceptance of germ theory, for example, many people believed diseases like cholera were caused by the presence of  “miasma” (bad air). As a result, governments took no effective measures to control cholera outbreaks–and doctors who warned about the dangers of contaminated water were ignored. The result was thousands of unnecessary deaths.

The tendency to ignore and reject scientific evidence hasn’t been confined to America. In Russia, in the early 20th Century, a Soviet agricultural scientist named Lysenko rejected the science of genetics in favor of pseudoscientific ideas like Lamarckian inheritance (the belief that physical changes made to an organism during its lifetime would be  passed on–inherited by the organism’s offspring.) Stalin’s government embraced Lysenko’s theories, suppressed the scientists who supported Mendelian genetics, and based its agricultural policies on Lysenkoism. The result was widespread crop failures and famines that caused millions of deaths.

I found plenty of other historical examples: delays in accepting the science of plate tectonics that hindered advancements in understanding earthquakes, volcanic activity, and geological hazards. Initial medical responses to the HIV/AIDS crisis that were hampered by widespread stigma and misinformation. Vaccine disinformation (especially the consistently debunked claim that vaccines cause autism) has led to reduced vaccination rates, and the resurgence of diseases like measles, polio, and whooping cough that medical science had virtually eradicated.

Numerous studies have confirmed that the MAGA movement’s resistance to masks and vaccines during the COVID pandemic cost the U.S. thousands of lives–a far greater percentage of American citizens died than the percentage of people living in countries where the population had more respect for medical science. Delays in lockdowns, resistance to public health measures, and vaccine rejection caused millions of preventable deaths and significant economic damage.

And I don’t even want to theorize about the likely consequences of climate change denial…

Ironically, MAGA’s stubborn resistance to empiricism and fact flies in the face of what actually made America great.

America’s founders were students of the Enlightenment, especially the philosophy of John Locke, often considered the father of empiricism. The Founders committed themselves to unleashing the power of reason to advance knowledge and to build an effective and responsive government. They believed that science and democracy worked together, and often expressed their intent to base government policy on the best available data and the most up-to-date, empirical understanding of the world.

As the Union of Concerned Scientists wrote in 2012, “science and democracy, working hand in hand, have proved a powerful combination that has helped our nation to prosper and thrive throughout our history.”

That partnership of science and government is what enabled America’s economic “greatness.” The country’s economic growth  has significantly depended on empiricism and technological innovation; advances in industries like aerospace, computing, and biotechnology have all been dependant upon rigorous science and empirical evidence. Respect for science and empiricism has also been crucial to the development of the military defense technologies that have made the U.S. a world power. (Think radar, GPS, and nuclear energy.)

Trump and the MAGA movement are the absolute antithesis of the respect for science, evidence and expertise that is actually at the base of America’s global preeminence. The collection of clowns, buffoons, and know-nothings that Trump has nominated for his cabinet make a mockery of MAGA’s promise to return America to greatness.

What is that famous Santayana quote? Those who don’t know history are doomed to repeat it.

Welcome to Lysenkoism.

Comments

About Those Grocery Prices….

Lately, grocery prices have figured significantly in America’s political argumentation. A number of Trump voters cited them as justifications for their votes, for example. (Excuse my skeptical belief that this “reason” was generally given to mask the racism/misogyny that actually prompted those votes.)

Biden had little to do with grocery prices, but those prices are legitimately relevant to arguments about Trump’s moronic devotion to tariffs, and his threat to impose them on pretty much every country from which the U.S. imports. Every economist who has weighed in has pointed out that tariffs tax American consumers, not the countries exporting to us. And it’s hard to ignore the inevitable effect of his fixation on mass deportations, which–if successful–would leave crops rotting in American fields and set prices soaring.

Prices aren’t the only grocery problem. There’s also maldistribution– the growing incidence of America’s food deserts. A friend recently shared an Atlantic article that shed light on both issues. Titled “The Great Grocery Squeeze,” it highlighted the importance of government policy–very much including the enforcement of policy.

The concept of the food desert has been around long enough that it feels almost like a fact of nature. Tens of millions of Americans live in low-income communities with no easy access to fresh groceries, and the general consensus is that these places just don’t have what it takes to attract and sustain a supermarket. They’re either too poor or too sparsely populated to generate sufficient spending on groceries, or they can’t overcome a racist pattern of corporate redlining.

But these explanations fail to contend with a key fact: Although poverty and ruralness have been with us forever, food deserts arrived only around the late 1980s. Prior to that, small towns and poor neighborhoods could generally count on having a grocery store, perhaps even several. (The term food desert was coined in 1995 by a task force studying what was then a relatively new phenomenon.)

Affluent folks tend to think of food deserts as a feature of low-income, primarily Black neighborhoods, but it’s also a problem in very White places like North Dakota. In 1980s, almost every small town in North Dakota had a grocery store, and many had two. Now, nearly half of North Dakota’s rural residents live in a food desert.

Food deserts are not an inevitable consequence of poverty or low population density, and they didn’t materialize around the country for no reason. Something happened. That something was a specific federal policy change in the 1980s. It was supposed to reward the biggest retail chains for their efficiency. Instead, it devastated poor and rural communities by pushing out grocery stores and inflating the cost of food.

In 1936 Congress had passed the Robinson-Patman Act, essentially banning price discrimination in the industry.

During the decades when Robinson-Patman was enforced—part of the broader mid-century regime of vigorous antitrust—the grocery sector was highly competitive, with a wide range of stores vying for shoppers and a roughly equal balance of chains and independents. In 1954, the eight largest supermarket chains captured 25 percent of grocery sales. That statistic was virtually identical in 1982, although the specific companies on top had changed. As they had for decades, Americans in the early 1980s did more than half their grocery shopping at independent stores, including both single-location businesses and small, locally owned chains. Local grocers thrived alongside large, publicly traded companies such as Kroger and Safeway.

Studies tracking grocery prices while Robinson-Patman was being enforced found that large independent grocers were less than 1 percent more expensive than the big chains.

In the 1980s, convinced that tough antitrust enforcement was holding back American business, the Reagan administration set about dismantling it. The Robinson-Patman Act remained on the books, but the new regime saw it as an economically illiterate handout to inefficient small businesses. And so the government simply stopped enforcing it..That move tipped the retail market in favor of the largest chains, who could once again wield their leverage over suppliers.

Once independent stores closed, “the chains no longer had to invest in low-income areas. They could count on people to schlep across town to their other locations.”

It wasn’t only groceries–lack of anti-trust enforcement affected the entire retail sector. Between 1982 to 2017, the market share of independent retailers went from 53% to 22%.

The problem of food deserts will not be solved without the rediscovery of the Robinson-Patman Act. Requiring a level pricing playing field would restore local retailers’ ability to compete. This would provide immediate relief to entrepreneurs who have recently opened grocery stores in food deserts, only to find that their inability to buy on the same terms as Walmart and Dollar General makes survival difficult.

Policy matters. Just not in the way MAGA voters think.

Comments