Choices

I recently came across a Facebook post that perfectly summed up America’s continuing failure to make sane public policy consistent with the country’s founding premises. It pointed to the absurdity of far-right definitions of “freedom”:

You can regulate a human body, but not a coal plant. You can regulate the speech of a teacher, but not the money-as-speech of a corporation. You can coerce a child to pray in school, but not keep guns out of the classroom.

“You” are American lawmakers.

The post attributed these truly insane results to the Supreme Court, and the Court certainly deserves a considerable part of the blame, but so do the lawmakers who play to–or are part of–  the Rightwing fringe.

The Indiana legislature is a good example. In the wake of the Dobbs decision, our legislative overlords took hardly any time to ban abortion, but has struggled–and frequently failed– to regulate environmental hazards. The state has the most miles of rivers and streams too polluted to swim in, and we also lead the country in toxic emissions, among other deficiencies. The legislature’s focus on culture war issues routinely takes precedence over concerns for  public health, and lawmakers’ concern for the rights of farmers and utilities just as routinely outweighs concerns about the environment.

Our Hoosier lawmakers have a long history of telling teachers what to do–from older efforts aimed at prescribing how they should teach reading to periodic instructions about “character” education, to the more recent efforts to keep them from teaching about the less laudatory parts of our history or recognizing the existence of LGBTQ citizens. These persistent efforts have not been matched by efforts to restrain the influence of corporate dollars.

And don’t even start me on the Indiana General Assembly and guns. The pious hypocrites who continually try to shoehorn God into public school classrooms–and  failing that (due to that pesky First Amendment Establishment Clause) support the vouchers that siphon money from Indiana’s public schools and send them to private religious schools–continue to make firearms more easily available, most recently by ignoring law enforcement testimony and public opinion and eliminating the need to obtain a permit.

The hypocrisy is overwhelming.

The same “freedom fighters” who were outraged by mask mandates during the pandemic see no inconsistency with mandates to carry a pregnancy to term. They claim the “God-given right” to be free of a minor inconvenience that would protect their friends and neighbors, but are perfectly willing to interfere with medical science and the bodily autonomy of women.

Lawmakers who are solicitous about protecting factory farms from “onerous” regulation show considerably less concern about protecting the environment and the health of their constituents, despite evidence that those farms are massive polluters.To focus on just one element of that pollution, researchers tell us that industrial livestock farms produce up to 1.37 billion tons of manure annually—and that that’s 20 times more fecal waste than the entire U.S. human population, posing serious pollution risks to water and air.

The Indiana lawmakers who insist upon protecting the untrammeled, unimpeded right to own guns–including weapons more appropriate for war than personal protection–are blithely unconcerned with the havoc and death those weapons cause.

IN AN AVERAGE YEAR, 931 PEOPLE DIE BY GUNS IN INDIANA. WITH A RATE OF 14 DEATHS PER 100,000 PEOPLE, INDIANA HAS THE 19TH-HIGHEST RATE OF GUN DEATHS IN THE US.

In Indiana, 61% of gun deaths are suicides and 36% are homicides. This is compared to 61% and 36% respectively, nationwide.

The rate of gun deaths in Indiana increased 30%↑ from 2009 to 2018, compared to an 18%↑ increase over this same time period nationwide. In Indiana, the rate of gun suicide increased 24%↑ and gun homicide increased 49%↑ from 2009 to 2018, compared to a 19%↑ increase and an 18%↑ increase nationwide, respectively.

Across the nation, deadly attacks on schoolchildren are accelerating. The same legislators who are willing to tell education professionals how to teach and what to say remain unwilling to require even minimal background checks as a condition of buying the lethal weapons increasingly used to mow down the children in those classrooms.

There are, obviously, many other examples of misplaced legislative zeal.

The basic question citizens need to confront is: what is government for? What sorts of rules should government have the authority to impose, and what matters are properly left to each individual?

Our system was founded on the principle that Individuals should be free to pursue their own ends–their own life goals–so long as they did not thereby harm the person or property of someone else, and so long as they were willing to accord an equal liberty to their fellow citizens.

Hoosier lawmakers continue to get it backwards.

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And So It Begins

Duck and cover: It’s a new year, with a new session of Indiana’s General Assembly. Hoosiers will be spared the chaos we are witnessing at the federal level, but what emerges isn’t likely to be pretty.

According to the Indiana Capitol Chronicle, our legislative overlords have a number of priorities–among them, continuing their focus on public education, aka telling educators what they can and cannot do in their classrooms. In addition to fiscal and personnel concerns, the Chronicle reports that

Republican state lawmakers have also hinted at the return of a contentious “curriculum transparency” bill that would limit classroom discussions about race, as well as a bill that seeks to prohibit sexually-explicit content in school library books. Versions of both bills sparked widespread debate during the 2022 session, but both failed to pass.

Top GOP legislators are additionally pointing to a draft “Don’t Say Gay” that could ban Indiana teachers from holding classroom instruction about sexual orientation or gender identity.

I will forego my usual rant about these mean-spirited culture-war assaults to describe an (equally misplaced)  impending effort to “improve” high school curricula.  The article quotes Speaker of the House Todd Huston, who wants lawmakers to “reinvent” that curriculum, and responses to that effort  by the “usual suspects.”

Longtime chairman of the House Education Committee, Rep. Bob Behning, R-Indianapolis, said the state’s high school curriculum needs to better prepare students to enter the workforce and should include greater emphasis on the importance of post-secondary education.

Part of that could include making math “more relevant” by tying components like financial literacy, simple interest and mortgage rates into coursework, he said. Other options include more apprenticeship programs — and making those types of opportunities more easily count towards a student’s diploma requirements.

Indiana Secretary of Education Katie Jenner has also doubled-down on the importance of adding additional work-based learning opportunities for students and making it easier for high schoolers to access post-secondary education credentials before graduation.

I am so tired of these persistent efforts to redefine education as job training.

Let me begin by saying I have absolutely nothing against job training, practical skills, or the transmittal of “useful knowledge.” The inculcation of skills and information required to obtain and keep employment is clearly an important endeavor–both for the individual and for society–and the increasingly technical nature of work in the 21st Century often necessitates a significant amount of training.

But both individuals and society pay a steep price when we substitute the transmittal of useful knowledge for education.

It isn’t just Indiana. On college campuses, the years since the Great Recession have been brutal for almost every major in the humanities, and for the social science fields that most closely resemble humanistic ones — sociology, anthropology, international relations and political science. Technology and engineering have gained at the expense of the humanities (and with them, majors in things like sports management and exercise studies…)

That emphasis on job training and the neglect of subjects long thought to be necessary to an individual’s ability to live a good life is also reshaping high school curricula.

When an “education” is limited to the transmission of technocratic skills–when we are teaching students how to derive the one correct answer to that math problem or the one correct way to program that computer–there is a very real danger that we are creating a culture in which every issue has a “right” answer and a “wrong” answer, a prescription for disaster in a world where ambiguity and complexity require careful analyses grounded in a knowledge of history, philosophy and science abetted by critical thinking and communication skills.

Life in the 21st century will require today’s students to do more than find a job and reconcile their bank accounts. They will have to wrestle with confounding ethical and moral questions. They will  be challenged to cope with social change, to work with different people having different perspectives, and to appreciate new insights. It will require them to fulfill the obligations of citizenship.

At best, a real education can only provide young people with a “tasting menu,” a sampling of the intellectual riches that generations of scholars and thinkers have amassed. But ideally, that sampling should do three things: foster a thirst for lifetime learning; give them a foundation for understanding the complexities of the world in which they must function; and inculcate an appropriate intellectual modesty–a recognition that there is infinitely more to know.

We are cheating students when we fail to at least introduce them to the intellectual and cultural products of those who have gone before. Making a living isn’t remotely the same thing as making a life.

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The Party’s Over

Okay. I was waiting for the spectacle to conclude before commenting on the ongoing sh*t show in the House of Representatives, but I can no longer restrain myself. 

Let me begin with points made by observers more astute and informed than I am.

After day one, Robert Reich wrote that we are witnessing the “mindless hostility of a political party that’s lost any legitimate reason for being. For all practical purposes, the Republican party is over.”  

The party line became confused, its message garbled, its purpose unclear. It thereby created an opening for a third and far angrier phase, centering on resentment and authoritarianism…

Today’s Republican base is fueling hate. It is the epicenter of an emerging anti-democracy movement.

What we are seeing played out today in the contest for the speakership of the House involves all of these phases – what remains of the small-government establishment, the cultural warriors and the hate-filled authoritarians – engaged in hopeless, hapless combat with each other.

In the Washington Post, Matt Bai focused on McCarthy’s multiple deficits.

During the Boehner era, which now seems like some distant eon when woolly mammoths roamed the Earth, the future of the Republican Party was said to belong to three of his younger colleagues. They called themselves the “young guns,” but a better metaphor now would be the three little pigs.

The pigs were Cantor, Ryan and McCarthy. The first two left when the “MAGA wolf” blew their houses down.

Unlike the other two, who got by on guile and smarts, McCarthy’s gift was his easy charm. No one was going to mistake him for a Mensa candidate, but he was fun and flexible.

If McCarthy emerges with the title by ceding effective control to the crazies, he will  be neutered.  As Bai points out, appeasement of extremists never works . Acquiescence to irrational demands just encourages more irrational demands.

As McCarthy’s humiliation continued through day two, Reed Galen of the Lincoln Project wrote (no link)

This is not a clash of ideals on what kind of tax policy or health care is best for our country. It is a bare-knuckle brawl for power – and given Democratic control of the White House and Senate, all the GOP can do is cause chaos — it is a brawl that is not going to end well for America.

Do you, reading this email, think letting Lauren Boebert fire the Speaker on a whim is a good idea? What about letting MTG, Gaetz, and others have their own private lawsuit power? That’s what the crazies are asking for in their “negotiations.” Not policy. Not representing their constituents. Personal power to take this thing off a cliff and try to hang it around Joe Biden’s neck.

If there is any doubt about that desire to take America off a cliff, one holdout was  quoted as saying he wouldn’t vote for McCarthy without a commitment to shut the government down rather than raise the debt ceiling. He defined that commitment as “a non-negotiable item.”  If that isn’t insanity, it’s a close relative. 

Josh Marshall of Talking Points Memo has observed that–while every Republican Congressperson isn’t the same as Jim Jordan or Matt Gaetz– virtually all of them rely on a coalition of voters that supports Jim Jordan and Matt Gaetz. Today’s GOP is a “balkanized party made up of elected officials who either are Jim Jordan or aren’t willing to cross Jim Jordan.”

As if the chaos, dysfunction and sheer insanity on display aren’t worrisome enough, Robert Hubbell has highlighted an even more ominous development. 

McCarthy made a smidgen of progress that may have secured an additional vote or two on Wednesday evening. But that progress came at a deeply disturbing cost that should concern every American. The details of the agreement negotiated by McCarthy are complicated and obscure—deliberately so because they involve a “treaty” between two dark money PACs that fund GOP candidates for the House. The fact that the election of a constitutional officer—the Speaker of the House—is being brokered by dark money PACs is an insult to the rule of law and an open wound on democracy…

To use a technical term, the agreement “stinks to high Heaven.” 

At the end of day three, it turned out that even this unprecedented intervention by the GOP’s dark money donors wasn’t enough to move the lunatic caucus. As I write this, there have been eleven votes, and the House still has no Speaker. 

Disarray is too mild a description. We are watching the death throes of an American political party. The question now is: what comes next?

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Meanwhile….

As House Republicans noisily demonstrate their utter lack of interest in governing, other parts of the federal system continue to operate. The Fed, for example, continues to battle inflation.

In a lengthy October essay in the New York Times, Ezra Klein provided an overview of the causes of inflation and the choices policymakers face when trying to control it.

Inflation often begins as a mismatch of supply and demand. But if people get accustomed to prices rising, then inflation becomes about expectations. And so the task of ending it grows fuzzier: You need to use policy not just to manage the economy but also to alter psychology. The arid language of economics obscures the brutality this demands. You need to hit the economy hard enough to cow everyone who makes decisions within it.

Because that’s what prices are: decisions. Those decisions, even when mediated by algorithms, are made by people trying to predict the decisions other people will make. When people start to believe that other people are raising prices, they will raise prices. If they think other people are raising prices even faster, they will raise prices even faster than that. “How can you persuade people to expect differently?

One way is by increasing supply., but that usually can’t be done quickly. Another is by cutting demand by raising interest rates–but that makes it harder to borrow money or afford homes, and inevitably throws people out of work.

Klein reminded readers of Paul Volker’s approach  to “stagflation” in the 1970s.

Volcker forced a recession so deep that the entire psychology of the American economy changed. Today he is celebrated for his steel. Powell invokes him as inspiration. In a speech at a Fed conference in Jackson Hole this summer, he mentioned Volcker twice and said, of the intended rate hikes, “we must keep at it until the job is done,” presumably a reference to Volcker’s memoir, “Keeping At It.”

Using interest rate hikes to manage inflation operates like a sledgehammer: it reduces demand, but also cuts supply.

When people lose their jobs, they stop producing the goods and services the economy needs. When mortgage rates spike, developers build fewer houses, despite the fact that high housing costs are often caused by too few houses. When borrowing money becomes expensive, people stop borrowing it and cease to make the investments that create future productivity.

Klein documents the various ways in which interest rate hikes disproportionately harm the poor and the jobless, and says that it would be “nice to have a policy that targeted the rich rather than the poor and did so in a way that didn’t hurt long-term investment.”

He asserts that “such a policy exists.” It’s a progressive consumption tax. 

Here’s how it works. Instead of reporting your income to the I.R.S. and being taxed on that, you report your income minus your savings, and you’re taxed on that. That’s a consumption tax: Your taxable income is what you spend, not what you save. Congress can make it progressive by adding a hefty standard deduction and applying a much higher tax rate to people making much more money, just as we do now.

The economist who proposed this approach wasn’t concerned about  inflation. He thought rich people’s spending wasn’t just wasteful, but harmful. Whether one accepts his definition of “harmful” or not–I’m dubious–Klein points to a truly useful aspect of a progressive consumption tax: it can be dialed up and down to respond to different economic conditions.

In a time of recession, we could drop taxes on new spending, giving the rich and poor alike more reason to spend. In times of inflation, we could raise taxes on new spending, particularly among the wealthy, giving them a concrete reason to cut back immediately and to save and invest more at the same time.

Ideally, adjustments could also be made automatic.

Perhaps for every percentage point increase in unemployment above 5 percent, the tax rate would fall by three points, and for every percentage point increase in inflation above 3 percent, it would rise by four points. Other rules could apply for periods when unemployment and inflation moved together. The tax code would become responsive to the economy by default, rather than only through new acts of Congress.

Given the GOP’s semi-religious objection to taxes, and the current domination of the House by people who can barely spell “economic policy,” let alone leave their preoccupations with culture war issues long enough to consider the operation of the economy, I don’t hold out much hope for passage of a progressive consumption tax in the near future, but it’s an intriguing idea.

We should file it away with other good ideas that await a (hoped-for) return of political sanity and lawmaker interest in actually governing.

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The Definition Of Insanity

No–despite the title of this post, it isn’t about the insanity of the GOP’s meltdown over Kevin McCarthy’s inability to round up votes to make him Speaker–that will have to wait for a resolution. (Meanwhile, pass the popcorn…)

This is about one of America’s insane public policies.

A few years ago, research for a book required me to look more closely at the federal budget than I had previously done–especially at our bloated defense expenditures, but also at the persistence of various subsidies that may (or may not) have been prudent in the past, but clearly are counterproductive in the present.

One of those continuing subsidies supports the fossil fuel industry to the tune of twenty billion dollars a year. (That’s the conservative estimate–others put the number even higher.)

It’s bad enough that the government is continuing to support the use of an energy source damaging to the planet at a time when those funds should be incentivizing a transition to green energy. It is absolutely unconscionable that our tax dollars keep flowing to an industry that is enormously–embarrassingly, obscenely–profitable.

An industry that is also shameless.

I’ve previously defined the Yiddish word “chutzpah.” It is the word that first came to mind  when I read the following. (Okay, the actual first words that came to mind were too filthy to employ in this blog.)

Fresh off posting the highest quarterly profit in its history, the U.S.-based fossil fuel giant ExxonMobil sued the European Union on Wednesday in an attempt to stop the bloc from imposing its recently approved windfall tax targeting major oil and gas companies.

The Financial Times, which first reported the new lawsuit, noted that the challenge takes aim at the European Council’s “legal authority to impose the new tax—a power historically reserved for sovereign countries—and its use of emergency powers to secure member states’ approval for the measure.”

“The new tax is due to take effect from December 31 and will apply a levy of at least 33% on any taxable profits in 2022-23 that are 20% or more above average profits between 2018 and 2021,” the newspaper explained.

In a statement, Exxon spokesperson Casey Norton insisted the company recognizes that sky-high energy costs are “weighing heavily on families and businesses” but claimed the tax would “undermine investor confidence, discourage investment, and increase reliance on imported energy.”

Excuse me if I don’t sympathize. The tax would cost Exxon an estimated $2 billion through the end of next year—in other words, a fraction of the company’s 2022 profits.

Europe has experienced a mounting cost-of-living crisis, and passage of the windfall profits tax was intended to generate revenue to provide financial support to households and companies struggling with high energy costs.

Oil and gas companies like Exxon have been accused of exploiting global energy market chaos spurred by Russia’s war on Ukraine to hike prices and pad their bottom lines.

Ya think?

Exxon previously announced that the company had generated profits of $19.7 billion between July and September. That exceeded the profits of any other quarter in the company’s history.

Further evidence of corporate greed: the company has announced it will raise its dividends and expand its share buyback program, and it raised the pay of several of its top executives. (It increased the annual salary of CEO Darren Woods from $1.70 million to $1.88 million for the coming year.)

So–while consumers in Europe and the U.S. continue to struggle with elevated prices at the pump and with the inflation to which those elevated prices have substantially contributed, Exxon and its peers in the fossil fuel industry have chosen to reward their wealthy investors rather than contribute a small part of their bloated profits to the amelioration of problems they have helped to cause.

This revealing conduct joins the evidence that continues to emerge, showing that Exxon deliberately lied for years–actually, for decades– about  what the company’s scientists knew about the climate crisis and the central role of fossil fuels in creating that crisis.

Congress probably can’t punish Exxon for those years of lies, but there is no excuse for continuing to subsidize an industry that continues to profit handsomely from knowingly harming the environment and spitting on the common good.

The windfall profits tax that Exxon wants to evade would cost the company a fraction of its profits, and an even smaller fraction of what  American taxpayers fork over annually to the fossil fuel industry.

Continuing those subsidies makes about as much sense as handing a gun to the guy who came to rob you. it’s the definition of insanity.

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