Two Countries, Both American

There’s an important new book by Peter Temin, professor emeritus of economics at MIT, titled The Vanishing Middle Class: Prejudice and Power in a Dual Economy.  It paints a depressing  portrait of America and the evaporation of what used to be a healthy middle class.

His assertion: America is no longer a single country. Instead, we are two separate nations, and those nations have dramatically different resources, expectations and fates. As a post to the blog of the Institute for New Economic Thinking put it,

In one of these countries live members of what Temin calls the “FTE sector” (named for finance, technology and electronics, the industries that largely support its growth). These are the 20 percent of Americans who enjoy college educations, have good jobs and sleep soundly knowing that they have not only enough money to meet life’s challenges, but also social networks to bolster their success. They grow up with parents who read books to them, tutors to help with homework and plenty of stimulating things to do and places to go. They travel in planes and drive new cars. The citizens of this country see economic growth all around them and exciting possibilities for the future. They make plans, influence policies and count themselves lucky to be Americans.

The FTE citizens rarely visit the country where the other 80 percent of Americans live: the low-wage sector. Here, the world of possibility is shrinking, often dramatically. People are burdened with debt and anxious about their insecure jobs if they have a job at all. Many of them are getting sicker and dying younger than they used to. They get around by crumbling public transport and cars they have trouble paying for. Family life is uncertain here; people often don’t partner for the long-term even when they have children. If they go to college, they finance it by going heavily into debt. They are not thinking about the future; they are focused on surviving the present. The world in which they reside is very different from the one they were taught to believe in. While members of the first country act, these people are acted upon.

According to Temin, the two sectors have entirely distinct financial systems, residential options and educational opportunities, and their inhabitants have very different experiences when they get sick or interact with the law.

Worst of all, those in the low-wage sector have no way out. American social/economic mobility may have been real once, but it is a myth today.

A review of the book in the Atlantic was titled “Escaping Poverty Requires Almost Twenty Years with Almost Nothing Going Wrong.”  The reviewer cites Temin’s assertion that racism, abetted by deliberate policy choices, produced these separate nations:

The upper class of FTE workers, who make up just one-fifth of the population, has strategically pushed for policies—such as relatively low minimum wages and business-friendly deregulation—to bolster the economic success of some groups and not others, largely along racial lines. “The choices made in the United States include keeping the low-wage sector quiet by mass incarceration, housing segregation and disenfranchisement.”…

Many cities, which house a disproportionate portion of the black (and increasingly, Latino) population, lack adequate funding for schools. And decrepit infrastructure and lackluster public transit can make it difficult for residents to get out of their communities to places with better educational or work opportunities. Temin argues that these impediments exist by design.

The book does offer a way out– suggestions for remedying the hopelessness of those trapped in low-income America.

He offers five proposals that he says might help the country return to more equal footing. Some are fairly clear levers that many before him have recommending pulling: expanding access to and improving public education (particularly early education), repairing infrastructure, investing less in programs like prisons that oppress poor minorities, and increasing funding for those that can help build social capital and increase economic mobility. But other suggestions of his are more ambitious and involve fundamentally changing the cultural beliefs that have been reinforced over generations. Temin advocates doing away with the belief that private agencies can act in the interest of all citizens in the way that public entities can, and should. His final recommendation is to address systemic racism by reviving the spirit of the Second Reconstruction of the 1960s and 1970s, when civil-rights legislation helped to desegregate schools and give black Americans more political and economic power.

I agree that changing the culture is imperative; but it is also an incredibly slow and difficult process.

If someone knows how, I hope they’ll share….

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Donald Trump and the Gang That Can’t Shoot Straight….

It’s hard to believe, but the evidence is overwhelming: no one in Donald Trump’s White House is politically competent.

We knew Trump’s menagerie didn’t know spit about governing or policy. We knew they considered ethics a joke. (Senior Administration officials refused the orientation/training routinely offered by the Office of Government Ethics.) But even acknowledging the cringingly inept performances of Sean Spicer and Kellyanne Conway, no one could have anticipated the level of abject cluelessness revealed by the firing of James Comey.

Perhaps the Washington Post said it best:

Donald Trump has surrounded himself with sycophants and amateurs who are either unwilling or unable to tell him no. He lacks a David Gergen-like figure who is wise to the ways of Washington and has the stature to speak up when the president says he wants to fire an FBI director who is overseeing the counterintelligence investigation into whether his associates coordinated with Moscow. Without such a person, Trump just walked headlong into a political buzz saw.

 Senior officials at the White House were caught off guard by the intense and immediate blowback to the president’s stunning decision to fire James Comey. They reportedly expected Republicans to back him up and thought Democrats wouldn’t complain loudly because they have been critical of Comey for his handling of the Hillary Clinton email investigation. Indeed, that was the dubious excuse given publicly for his ouster.

“Caught off guard”? Really? How utterly devoid of political savvy–not to mention operating brain cells– would you have to be in order to be surprised by the public reaction to so clumsy and obvious an attempt to derail an investigation likely to uncover serious criminal conduct?

Did the geniuses advising our embarrassment of a President really think the American public, the media and the political establishment would believe that Comey’s handling of Hillary Clinton’s email was the reason he was terminated?

The word “Nixonian” has been tossed around, but really, Nixon and his co-conspirators were far less naive than the sorry collection of white supremacists, consiglieres, and know-nothings that form Donald Trump’s inner–and only– circle.

Media outlets report that grand jury subpoenas were recently issued to associates of  Michael Flynn, and that Comey had requested additional resources for the investigation of Trump and Company’s ties to Russia. These events, and the damning testimonies of Sally Yates and James Clapper earlier this week, evidently sent the White House into panic mode.

Whatever the calculation (assuming anyone in that den of ineptitude is actually capable of calculating), the President has placed Congressional Republicans firmly between a rock and a hard place. During Watergate, a not inconsiderable number of Republicans put nation above party. American politics is much more polarized now–and we have fewer statesmen and more ideologues in both parties–but I have to believe that the combination of public outrage, Trump’s blatant corruption, and fear of what might happen in the 2018 elections will persuade at least some in the GOP to do the right thing.

Frank Rich wrote an article titled “The Comey Firing May Be the Beginning of the End of the Trump Administration.” It should be read in its entirety, but here’s a taste:

A White House gang this insular, this politically naïve, and this transparent in its maladroit efforts at deflection and deception is a gang that can’t shoot straight. No one in the West Wing apparently even considered that it might look bad to time this debacle on the eve of a day when Trump’s only scheduled official event was an Oval Office meeting with the Russian Foreign Minister Sergey Lavrov. No doubt these same brilliant masterminds now think that Washington will go back to business as usual.

If the public outrage that greeted Comey’s firing is any indication, America will not go back to “business as usual” until a special prosecutor issues a comprehensive report.

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The Age of Inhumanity

Historians will eventually affix a label to the time period we are living through (assuming, of course, that we do live through it); my predictive powers are considerably less than optimal, but I vote for “The Age of Inhumanity”–or maybe, “The Age of Assholery.”

My exhibits, from just the past couple of days:

Jimmy Kimmel recently delivered an emotional monologue about his newborn son, who’d been born with a heart condition. Ultimately, the story had a happy ending; surgery corrected the defect and they were able to take the baby home. Kimmel’s monologue included a “political” observation:

Before 2014, if you were born with congenital heart disease like my son was, there was a good chance you’d never be able to get health insurance because you had a pre-existing condition. You were born with a pre-existing condition. And if your parents didn’t have medical insurance, you might not live long enough to even get denied because of a pre-existing condition.

If your baby is going to die, and it doesn’t have to, it shouldn’t matter how much money you make. I think that’s something that, whether you’re a Republican or a Democrat or something else, we all agree on that, right?”

Well, no. Evidently not.

Former Rep. Joe Walsh (R-Ill.)–now a radio call-in show host– tweeted his reaction, writing: “Sorry Jimmy Kimmel: your sad story doesn’t obligate me or anybody else to pay for somebody else’s health care.”

I will note here that we shouldn’t be surprised by Walsh’s disinclination to pay insurance premiums that might benefit other people’s children, since he’d previously been sued by his ex-wife for failing to pay child support for his own. A real prince of a guy….

And then there was the funeral home in Mississippi that refused to honor its contractual obligation to provide services when they discovered that the deceased man had a husband.

For most of the 52 years he was in a relationship with Robert Huskey, Jack Zawadski doesn’t remember much in the way of anti-gay discrimination.

Not while they were trying to grow apples on a farm in Wisconsin. Not during the decades they spent as special education teachers. Not even when they moved to Mississippi 20 years ago to retire someplace warmer and more lush, or after they married in 2015, when the Supreme Court declared that gay couples have as much of a right as heterosexuals to marry.

Last month, at age 86, Huskey died after a long illness.

Zawadski, 82, said the funeral home that had been prearranged to pick up and cremate Huskey’s body refused at the last minute, telling the nursing home that they don’t “deal with their kind.”…

The couple’s nephew, John Gaspari, made the arrangements ahead of time with Picayune Funeral Home, the only funeral home in the county with an on-site crematory, according to the complaint. Zawadski had hoped to hold the funeral there so the couple’s local friends could pay their respects. On May 11, 2016, Gaspari contacted the funeral home to let them know Huskey had died.

But after filing the paperwork, including a document naming Zawadski as next of kin, Gaspari got a call from the nursing home. “The Nursing Home relayed to John that once it received the paperwork indicating that Bob’s spouse was male, PFH refused service because it did not ‘deal with their kind,’ ” the lawsuit stated.

Zawadski’s complaint says that the turmoil involved in finding alternative arrangements “permanently marred the memory of Bob’s otherwise peaceful passing,”

I wish I could say that these are isolated examples, but anyone who follows the news knows that they’re not.

What the hell is wrong with these people? What makes them so small and mean-spirited?

Whatever historians ultimately call it, we  live in an ugly time.

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Brave New World

The past few decades have seen massive social changes, and even the most superficial scan of the current state of affairs leads to the inexorable conclusion that we “ain’t seen nothin’ yet.”

I don’t think there’s a sufficient appreciation of the economic side of that change. Think, for example, of the imminent phenomenon of self-driving cars, and the ongoing collapse of brick-and-mortar retailing.

Self-driving vehicles will eliminate the jobs of five million people nationwide. These are people who make their living driving taxis, buses, vans, trucks and e-hailing vehicles; according to a Harvard labor economist, those jobs represent 3% of the national workforce, and most of them are held by men without college degrees, a demographic that has already been hit hard by the loss of 5 million manufacturing jobs since 2000.

Then there’s the cratering of traditional retailing.  More and more Americans shop on line, and one result is the proliferation of empty storefronts in the nation’s malls. Those empty shops signal the loss of thousands of clerking and sales positions. Warehouse work and online “customer service” jobs are unlikely to replace them all.

As I have written previously, international trade is not the culprit;  automation is what is relentlessly driving job losses, and automation isn’t confined to robots in coal mines or on the factory floor. We no longer hire people to pump our gas; a single secretary handles jobs that used to require three or four; automated check-outs are everywhere from the drug store to the parking garage. In many cases, these innovations create new jobs— requiring new and more demanding skills—but in many cases, they don’t.

And then there’s climate change. The deniers can stick their fingers in their ears and chant “la la la I can’t hear you” all they want, but ice keeps melting, weather keeps getting more unpredictable, oceans keep warming and rising, hurricanes get more powerful…and barring an unlikely concerted effort, by the end of this century large areas of the planet will become unlivable. One result will be mass migration on an unprecedented scale.

How will we cope with that when we can’t even resettle a comparatively small number of Syrian refugees?

One of the reason people are climate change deniers is the fact that the worst consequences are still some decades off, and they can pretend those consequences aren’t real. The economic threats posed by mass joblessness will be felt a lot sooner. And we are already encountering entirely new challenges posed by the acceleration of technology. One of my students wrote his research paper on –I kid you not–the legal liabilities of artificial intelligence. (It was an A+ paper, too.)

The paper considered the uses (and misuses) of ‘personal assistants” like Siri and Google Assistant. Legitimate concerns go well beyond identification theft through hacking.  If someone tells his personal assistant he intends to do something illegal, does the device (or its programmer) have a responsibility to remind him it’s illegal? To call the cops?  What if you tell your assistant you plan to commit suicide by jumping off a bridge, and it obediently gives you directions to the nearest bridge? What if a crime is committed at your home and the police want to confiscate your personal assistant to determine who was interacting with it and at what time–is the assistant to be treated like the books of a business (discoverable) or is it entitled to protection against self-incrimination?

You may think this is all too fanciful, but Amazon has argued that First Amendment Free Speech rights should be extended to its Alexa assistant in certain circumstances, and a court has ruled that the way Google ranks search results is entitled to First Amendment protection.

Bottom line: humans on this planet are entering a twilight zone in which familiar work is disappearing, new technologies are forcing us to confront unfamiliar questions, the gap between the “haves” and the “have nots” is becoming gargantuan–and all of this is happening in an environment that is drastically changing, both climatically and socially.

It really isn’t a good time to be governed by a clueless buffoon and a Congress filled with third-rate intellects and corrupt panderers.

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Your Answers?

This is the time of year that professors both love and hate–the semester is coming to an end, and most of us are very ready for that, but it is also when lengthy research papers are due and final exams given.  Those papers and exams must be graded  (and unfortunately, those grades must often be defended to students convinced that their efforts entitled them to higher marks).

I give students in my law and policy classes a take-home final. That’s partly to make up for a pretty brutal midterm, and partly to see whether the materials and concepts we’ve covered have caused them to think critically about the enterprise of government and the elements of good policy. Has the class helped them fashion a coherent philosophy of governance? Has it given them an appreciation of the complexities involved and skills required?

Here are the questions I have given them this semester; they were to choose one and write an essay responding to that choice. How would you answer them? (I won’t grade readers’ answers…promise!)                                                       

  1. Earth has been destroyed in World War III. You and a few thousand others—representing a cross-section of Earth’s races, cultures and religions—are the only survivors. You have escaped to an earthlike planet, and are preparing to establish a new society. You want to avoid the errors of the Earth governments that preceded you. What institutional choices do you make and why? Your essay should include: The type/structure of government you would create; the powers it will have; the limits on its powers, and how those limits will be enforced; how government officials will be chosen and policies enacted; and the social and political values you intend to privilege.

2. The First Amendment protects religious liberty. Over the past few years, Americans have engaged in heated public debates about the nature and extent of that liberty. Some people argue that requiring employers to provide health insurance that includes contraception, or requiring businesses like florists or bakers to serve same-sex customers, is a violation of the religious liberty of those whose religions teach that contraception or homosexuality is a sin. Others disagree. What is the proper definition of “religious liberty”—that is, how far should the free exercise of religion extend in America’s diverse religious landscape? What religiously-motivated actions can government legitimately limit, and what are the justifications for those limits?

3. Donald Trump’s campaign slogan was “Make America Great Again.” Without addressing the personal characteristics of either candidate in the November election, and without opining whether America was or was not greater in the past, describe the characteristics, values or other attributes that you believe make a country “great.” In other words, what are the attributes of a great country? How does it behave toward its own citizens and toward other countries? What changes to current American policies or laws do you believe are needed to achieve greatness as you define it?

Go!!

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