Public Policy and Governance – Page 81

The Rear-View Mirror

Like many who read this blog, I get the Letter from an American from Heather Cox Richardson. Richardson is a historian, and the great benefit of her Letters is that they provide what I like to think of as a look in humanity’s rear-view mirror.

Driving a car requires checking the traffic behind us in order to navigate the road ahead. History serves much the same purpose (which is one of the many, many reasons why the rightwing hysteria over teaching the country’s history of racism is so deranged…)

A few days ago, Richardson shared an “aha” moment.

It has been hard for me to see the historical outlines of the present-day attack on American democracy clearly. But this morning, as I was reading a piece in Vox by foreign affairs specialist Zack Beauchamp, describing Florida governor Ron DeSantis’s path in Florida as an attempt to follow in the footsteps of Hungary’s Viktor Orbán, the penny dropped.

She proceeded to outline the political currents prior to the election of Trump: the evolution of today’s GOP into the pro-oligarchy party, following what she described as the usual U.S. historical pattern to that point– “in the 1850s, 1890s, 1920s, and then again in the modern era, wealthy people had come around to the idea that society worked best if a few wealthy men ran everything.”

Each of those periods was a reaction to the expansion of civil equality. Richardson reports that wealthier Americans protected their privileged status by playing on the racism of poorer white male voters– telling them that passage of laws protecting equal rights was really a plan to turn American governance over to immigrants or to Black or Brown Americans.

The idea that poor men of color voting meant socialism resonated with white voters, who turned against the government’s protecting equal rights and instead supported a government that favored men of property. As wealth moved upward, popular culture championed economic leaders as true heroes, and lawmakers suppressed voting in order to “redeem” American society from “socialists” who wanted to redistribute wealth. Capital moved upward until a very few people controlled most of it, and then, usually after an economic crash made ordinary Americans turn against the system that favored the wealthy, the cycle began again.

When Trump was elected, the U.S. was at the place where wealth had concentrated among the top 1%, Republican politicians denigrated their opponents as un-American “takers” and celebrated economic leaders as “makers,” and the process of skewing the vote through gerrymandering and voter suppression was well underway. But the Republican Party still valued the rule of law. It’s impossible to run a successful business without a level playing field, as businessmen realized after the 1929 Great Crash, when it became clear that insider trading had meant that winners and losers were determined not by the market but by cronyism.

Trump deviated from the usual cycle in one way–he didn’t care about enriching the oligarchy, only about enriching himself, his toadies and his family. Despite his repellent personality and embarrassing ignorance of government and policy, he was especially dangerous because he turned the Republican base into a cult that no longer respected the rule of law.

Richardson warns that Trump’s deliberate destabilization of faith in our democratic norms is especially dangerous because it creates space for two right-wing, antidemocratic ideologies. Two current Republican governors model those ideologies: Abbott in Texas, who is pursuing the South’s Civil War insistence on “states’ rights,” and DeSantis in Florida, who is emulating Viktor Orbán’s “soft fascism.”

Orbán has taken control of Hungary’s media, ensuring that his party wins all elections; has manipulated election districts in his own favor; and has consolidated the economy into the hands of his cronies by threatening opponents with harassing investigations, regulations, and taxes unless they sell out.

DeSantis is following this model right down to the fact that observers believe that Florida’s “Don’t Say Gay” bill was modeled on a similar Hungarian law. DeSantis’s attack on Disney mirrors Orbán’s use of regulatory laws to punish political opponents (although the new law was so hasty and flawed it threatens to do DeSantis more harm than good).

Richardson counsels us to look in that rear-view mirror–to access the knowledge and tools that history provides to defend democracy from the ideology of states’ rights.” But she also warns that, because the rise of “illiberal democracy” or “soft fascism” is new to us, we need to understand how it differs both from Trump’s version of autocracy and from the old arguments for states’ rights.

At risk of over-extending my somewhat strained analogy, Orbanism represents a massive pothole on the road to democratic self-governance and civil liberty–a pothole requiring us to drive carefully and keep our eyes on the road– ahead and behind.

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Putting Us In Our Place…

The day the Alito draft opinion leaked, my youngest son sent me a reaction from The Onion, headlined “Vessel for Male Sexual Gratification Very Sad Today.”

Noting its slumping posture, slack expression, and overall downcast appearance, sources confirmed Wednesday that a vessel for male sexual gratification was very sad today. “It definitely appears to be upset,” said sources, adding that the object that exists solely for men’s physical pleasure was presently sitting unmoving with a distant, empty stare. “It doesn’t look happy. What’s wrong with it? I don’t like the way it’s ignoring me.” At press time, sources had decided to go over to the sexual apparatus and tell it to smile.

Despite the pious, “pro life” pronouncements of those who have worked assiduously to control women’s reproduction, the real issue has little or nothing to do with “saving babies.” (If it did–as innumerable people have pointed out–Americans wouldn’t continue to ignore the care and feeding of those babies once they are born.) It’s the “place”–the defined status– of women.

We can see the desired end game of the “pro-life” movement in the declarations of the more rabid anti-choice warriors, who have made it quite clear that they oppose birth control as well.

I still remember a conversation with a partner at the law firm I joined after graduating from law school. It was 1977, and the firm had just hired its first two women lawyers (I was one). He mused that women’s ability to plan our childbearing had opened up employment opportunities that hadn’t previously been available. He was right.

Before the wide availability of birth control, the only real “choice” available to women who wanted to pursue professional careers was to abstain–from sex, marriage, and motherhood–or to delay for many years (or more commonly, to entirely forgo) careers.

The birth control pill changed women’s worlds. It also changed virtually all parts of American society. Remember that old cigarette ad, proclaiming “You’ve come a long way, baby?” We have.

Think about the trajectory.

Religion began–and mostly remains– highly patriarchal. Women were seen as either temptresses (Eve!), or nurturers and breeders. Gender norms were “God decreed,” and religious texts were male-centered.

When the American colonies were first settled, they adopted English laws forbidding women from owning property or from keeping their own earnings. In 1877, all states had laws preventing women from voting. Women have had the vote for just over 100 years.

Most other advances toward civic equality for females came after 1960–the year the FDA approved the birth control pill. In 1963, we got the Equal Pay Act. In 1964, the Civil Rights Act was passed and the EEOC established. In 1965, the Supreme Court ruled that state legislatures couldn’t forbid married people from using contraceptives–a ruling that Alito’s draft endangers. Other rulings allowed women to serve on juries, and forbid various types of gender discrimination. It was only recently that the Lily Ledbetter Act attacked the practice of paying women less than men doing the same job.

Thanks to those legal changes–and especially the ability to decide whether and when to procreate–women have entered much more fully into the life of this country. We have a woman Speaker of the House, a woman Vice-President. Turn on your TV, and women news anchors and sports reporters inform you. Today, your doctor and your dentist and your CPA are all as likely to be women as men.

The results have been salutary–and not just for women.

A friend whose company offers financial services recently posted an article from The Daily Shot, sharing research that compared companies with greater and lesser numbers of female executives in the ranks. Those with more female executives “have done far better over the last decade in return on equity than the rest of the S&P 500.”

The Christian Nationalist Party–formerly the GOP–finds the current state of affairs terrifying and “unGodly.” The old White guys who believe they should run the world have very accurately identified the foundation on which women’s progress rests: the ability to control our own reproduction.

And that is what the fight over abortion is really about.

Assuming the extent of the backlash to the Alito leak doesn’t change the result–assuming the Court issues a version of Alito’s dishonest “history” and his astonishing decree that state legislators should have the right to require women to give birth–we will see whether America is willing to roll back the past fifty years of cultural change–whether even Red states are able to erase the civil status, empowerment and participation of half of the population.

Will this last gasp of patriarchy prevail? We’re about to find out.

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Briggs Gets It. Banks Doesn’t

James Briggs is currently an opinion columnist for the Indianapolis Star. (I say “currently” because for the past several years, the Star has employed one columnist at a time to opine about the news–usually national– arguably to distract readers from recognizing the extent to which the newspaper doesn’t cover state or local government. But I digress.)

I have tended to agree with Briggs’ take on the various matters he’s covered, and a recent column was no exception.The target was Florida Governor Ron DeSantis, and his retaliation against Disney for having the temerity to oppose his “Don’t say Gay” bill. Briggs wonders whether Florida’s break between business and the GOP will spread to other Red states.

Florida Gov. Ron DeSantis’ war on Disney feels like a potential breaking point for Republicans and big business.

The question is whether the rift will extend beyond certain regions (such as the Southeast) and personality-driven politics (DeSantis boosts his national profile by taking on that lib, Mickey Mouse) to alter the governing philosophy of Republicans in red states across the country.

As Briggs notes, the traditional alliance between the GOP and big business has become strained, as a number of corporations have responded to public opinion by taking political positions that have angered Republican culture warriors. He mentions Dick’s Sporting Goods, which led large retailers to stop selling semiautomatic rifles and ammunition in 2018, and decisions by Coca-Cola and Delta to oppose Georgia Republicans’ voting legislation last year.

The most famous Indiana example of government clashing with big business, of course, was the 2015 response of Hoosier business to the effort by then-Gov. Mike Pence and the Republican-controlled Indiana General Assembly to pass an altered version of the Religious Freedom and Restoration Act–a version that would have facilitated anti-LGBTQ discrimination. Business won that conflict.

This year in Florida, however, DeSantis’ obedient state legislature passed a bill to eliminate a special district that enables Disney World to operate as its own municipality in the state. The effective date of the measure was delayed until after the midterm elections, undoubtedly because–if it goes into effect– it will raise taxes and shift enormous debt from Disney to Florida taxpayers. (Culture wars come at a cost…)

Some Indiana Republicans are agitating for that shift as well, most notably U.S. Rep. Jim Banks, who has called out Eli Lilly & Co. and bragged about being blacklisted by the Indianapolis drugmaker’s political action committee over objecting to Joe Biden’s election certification last year. Banks also is among 17 Republican members of Congress who wrote to Disney expressing opposition to extending copyright protection for Mickey Mouse beyond 2024.

The sentiment is simmering throughout Indiana. Rank-and-file Republicans in the Indiana General Assembly have been putting the state’s top companies on their heels in recent years, including the most recent session when they introduced legislation that would have all but banned employer vaccine mandates.

I find this 180 degree shift in Republican philosophy gobsmacking. The GOP used to be overly deferential, if anything, to corporate America’s freedom to manage its own business affairs.

Briggs is confident that Indiana will not follow DeSantis’ authoritarian lead. His reasoning is persuasive, but depressing. Essentially, he says Florida remains a state where people want to live and do business. It’s the eighth-fastest-growing state, and it has three of the 10 hottest housing markets. It’s “attracting the population and talent to drive a thriving business climate.”

Indiana is a tougher sell. Eli Lilly CEO David Ricks recently laid that out in brutal terms during a speech to the Economic Club of Indiana.

“Our education attainment in the state is not good,” Ricks said, as reported by WISH-TV. “The ability to reskill the workforce, I think, could improve. Health, life and inclusion, overall, I think, conditions rank poorly nationally in our state. And also workforce preparedness, also related to reskilling, is a liability for us.”

Ricks might have elaborated on that thesis, pointing out that Indiana’s infrastructure and overall quality of life don’t send welcoming messages to potential residents or businesses. “We’re cheap” isn’t exactly an enthusiastic endorsement. Add to our other visible deficits the voices of far too many of our elected officials; Banks isn’t the only embarrassment working overtime to appeal to the under-educated and overwrought GOP base.

Indiana’s Republicans have long since abandoned the statesmanship of Dick Lugar and Bill Hudnut. Instead, they are emulating the bigoted idiocies of Margery Taylor Green, Paul Gosar and their ilk.

As Briggs points out, Indiana needs big, high-paying employers–and those employers need workers who are unlikely to agree with Jim Banks, et al, on social issues. We aren’t Florida, “where oceans and warm weather in January have a way of making you forget about politics.”

These days, businesses will think twice about Florida–ocean or not–let alone Indiana.

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The Real Welfare Queens

America’s most generous welfare system is one in which the rich get richer, and the rest of us pay the bills.

Both Axios and American Progress have reported on the taxes paid–or more accurately, avoided– by members of the Fortune 500. This was at a time when corporate profits were more than healthy, and in the view of many, a time when corporate greed has contributed to the inflation that is eroding wage gains.

The table at the link shows 2021 federal income tax expenses, pre-tax earnings, and effective corporate income tax rates for 19 companies in the Fortune 100. Four of them show a negative tax rate, or zero taxes owed that year and for some, entitlement to a refund.

I’ve pared down the following list to the name of the corporation, its pre-tax earnings after allowable deductions and credits, and the effective tax rate. There are many more companies that fall into this category, but this will give you a (bitter) taste…

Amazon.com Inc.
$35.1 B
6.1%

Exxon Mobil Corp.
$9.3 B
2.8%

AT&T Inc.
$29.6 B
−4.1%

Microsoft Corp.
$33.7 B
9.7%

JPMorgan Chase & Co.
$48.2 B
5.9%

Verizon Communications
$27.2 B
6.9%

Ford Motor Co.
$10 B
1.0%

General Motors Co.
$9.4 B
0.2%

Chevron Corp.
$9.5 B
1.8%

Bank of America Corp.
$30.6 B
3.5%

United Parcel Service
$14 B
9.9%

FedEx Corp.
$4.7 B
4.2%

MetLife Inc.
$4.8 B
1.3%

Charter Communications Inc.
$6 B
−0.2%

Merck & Co. Inc.
$1.9 B
4.0%

American International Group Inc.
$9.8 B
−2.2%

Dow Inc.
$1.5 B
−3.1%

Nike Inc.
$5.6 B
5.9%

A recent Guardian analysis of top corporations’ earnings shows most of them are enjoying significant profit increases while they continue to pass higher costs on to customers. And despite record profits and minimal or even negative taxes generating big refunds, several of these companies–Amazon is notable–are frantically opposing the unionization of their workforces.

If you wonder why the gap between the rich and the rest continues to grow…

A recent article from Time Magazine traced the history and effect of unionization.

Unions became popular in the U.S. starting in the 1930s, with membership rising from just over 10% of the eligible working population in 1936 to about a third by the mid-1950s, according to 2021 research published in the Quarterly Journal of Economics. That remained the case until the mid-1980s, when they fell out of favor, thanks to a culture in which companies refocused on maximizing shareholder value and minimizing worker benefits, as well as a court-backed emphasis on the value of private property and private profit. “Those years turned out to be basically a blip in what otherwise has been not only a very contentious, but many times a very violent interaction between workers and employers in this country,” Devault says of the mid-20th century.

During unions’ heyday in the U.S., however, the income gap between the richest and poorest Americans shrunk considerably. “The only time that the bottom tenth of the population and the top tenth of the population have come closer together has been during those years, when unions were operating in the largest corporations in this country,” Devault says. As unionization declined in the 1970s and 80s, that income gap grew once more. Today, it is at an all-time high since tracking began over 50 years ago, based on Census Bureau data. Research shows that as much as $50 trillion has migrated into the coffers of the top 1% of income earners in the U.S., an upward redistribution of wealth that has squeezed out the middle class.

Business schools are finally recognizing that shareholders aren’t the only stakeholders who matter to the success of a business enterprise. Employee morale is ultimately as important to the bottom line as tax avoidance. For that matter, a prosperous middle class consisting of people with disposable income is critical to sustained business success.

America’s tax system is an abomination. You need not be anti-capitalist to insist that the rich pay their fair share to the country that provides them with the wherewithal to make those fortunes.

I’d be willing to bet that the “captains of industry” who manage those tax-avoiding businesses don’t resent paying the dues charged by fancy country clubs; they know it takes money to maintain glitzy clubhouses and immaculate golf courses. It also takes money to maintain the roads and bridges over which manufacturers ship their goods. It takes money to pay the police and firefighters who provide businesses with security and public safety, and it takes money to compensate the judges and other personnel who administer the legal system all businesses depend upon.

Etcetera.

During one of the 2016 Presidential debates, Trump responded to Hillary Clinton’s charge that he’d played fast and loose with his taxes by sneering that his tax avoidance meant he was smart. Too many executives agree with that sentiment, and they are all wrong.

The truth is, they are the “welfare queens” that they like to disparage.

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The Story Of Our Age

Jeffrey Goldberg is the editor of the Atlantic, one of the more credible and informative publications I read, and he recently transmitted an email to subscribers titled “Notes from the Editor-in-Chief.” I am going to take the liberty of quoting large portions of that message, because I entirely agree with him about the nature and extent of the danger we face.

Last week, a Michigan congresswoman whose existence had not yet entered the rest of the country’s consciousness credited Donald Trump with having “caught Osama bin Laden,” among other terrorists. It is difficult to forget that night in 2011 when Barack Obama told the world that, on his orders, a team of Navy commandos had killed the al-Qaeda leader. But Representative Lisa McClain, a first-term member of Congress, showed that, with effort, and with a desire to feed Trump’s delusions and maintain her standing among his supporters, anything is possible.

In ordinary times, McClain’s claim would have been mocked and then forgotten. But because these are not ordinary times—these are times in which citizens of the same country live in entirely different information realities—I put her assertion about bin Laden on a kind of watch list. In six months, I worry, we may learn that a provably false claim made by a single unserious congressional backbencher has spread into MAGA America, a place where Barack Obama is believed to be a Kenyan-born Muslim and Donald Trump is thought to be the victim of a coup.

Disinformation is the story of our age. We see it at work in Russia, whose citizens have been led to believe the lies that Ukraine is an aggressor nation and that the Russian army is winning a war against modern-day Nazis. We see it at work in Europe and the Middle East, where conspiracies about hidden hands and occult forces are adopted by those who, in the words of the historian Walter Russell Mead, lack the ability to “see the world clearly and discern cause and effect relations in complex social settings.” We see it weaponized by authoritarians around the globe, for whom democracy, accountability, and transparency pose mortal threats. And we see it, of course, in our own country, in which tens of millions of voters believe that Joe Biden is an illegitimate president because the man he beat in 2020 specializes in sabotaging reality for personal and political gain. This mass delusion has enormous consequences for the future of democracy. As my colleague Yoni Appelbaum has noted, “Democracy depends on the consent of the losers.” Sophisticated, richly funded, technology-enabled disinformation campaigns are providing losers with other options.

The Atlantic has joined with the Institute of Politics at the University of Chicago, and the two entities staged a conference focusing upon disinformation of all sorts. (The conference is available online.) The Institute of Politics was founded by David Axelrod, who has expressed his opinion that the “future of this country—and of our democratic allies around the world—depends on the ability and willingness of citizens to discern truth from falsehood.”

Goldberg was forthright in admitting to the nature of the challenge disinformation poses for “big-tent” magazines like the Atlantic. He reiterated his belief that citizens of democracies require a wide variety of views and opinions, and insisted that

We strive for nonpartisanship at The Atlantic, and we aim to publish independent thinkers and a wide variety of viewpoints. But this most recent period in American history has presented what might be called “both-sides journalism” with serious challenges—challenges that have prevented this magazine from publishing many pro-Trump articles. (After all, our articles must pass through a rigorous fact-checking process.)

Long-term, the emergence of our citizens from the Tower of Babel we currently inhabit will require a co-ordinated effort. My own repeated calls for more and better civics education–leading to greater levels of civic literacy– obviously point to an important part of that effort, but civics education alone cannot address the economic and psychological insecurities that make so many Americans receptive to the lies and hatreds being promoted by would-be autocrats and their enablers.

I don’t know what it would take–what policies could impose at least a minimum of coherence and integrity to the Wild West that is our current information environment without sacrificing the First Amendment– but as Goldberg and Axelrod clearly understand, figuring that out is obviously job number one.

I’m on vacation without reliable Internet access, but when I get home, I intend to click through and watch that conference….

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