Stiglitz On The Environment

Today, I’m largely turning this blog over to Joseph Stiglitz, Nobel-prize winning economist who heads up economic research at the Roosevelt Foundation. Stiglitz recently testified before the Senate Budget Committee on what he–and President Biden–have both correctly termed an existential threat: climate change.

The following are excerpts from that testimony.The entire presentation is at the link.

Thank you for this opportunity to share with you some of my concerns about the large economic costs and huge risks of not taking strong actions now to deal with climate change, and the large benefits of doing so.

Some of the downside risks are already apparent. In one recent year, the magnitude of destruction associated with extreme weather events—which will inevitably occur more frequently, with ever more devastation as a result of climate change—was more than 1.5% of GDP, effectively wiping out more than 60% of the growth of that year.1 But this is only one dimension of what is occurring: Rising sea level will put much coastal property under water, destroying homes and property values. Forward-looking markets have already begun to price this in—but still far from adequately.2 3

Recent studies have documented the adverse effects of climate change on health.4 We pay for this in multiple ways, including higher health care costs and a less healthy population, which means a less productive workforce. But there is no way to accurately monetize the shorter life spans and the increased morbidity….

There are, of course, some sectors, some parts of our population, some locations that will be particularly hard hit. During the past year, we have seen the inequities associated with Covid-19. Those associated with climate change are equally severe, with people at the bottom of the income ladder often bearing the brunt of the costs, with fewer resources to respond. But there is an additional dimension of inequity that speaks to our future: While Covid-19 disproportionately affected older Americans, climate change is a risk that we impose on our children and grandchildren—on the future of our country….

Let me spend a few moments discussing the real risks our economy and society face if we do not take stronger actions than we have so far. We have been treating truly scarce resources, our environment, our water, our air, as if they were free. But economics teaches us that there is no such thing as a free lunch. We will have to pay the check someday. And delay is costly. Taking carbon out of the atmosphere is far more expensive than not putting it into the atmosphere. A smooth transition is far less costly than the one we will surely face if we do not take action urgently….

The longer we delay dealing with climate change, the larger the necessary adjustments will be, and the greater the potential for huge economic disruption—an economic disruption that could make the 2008 Great Recession look like child’s play by comparison.6 The danger of a crash is particularly acute for the U.S. economy, given that large U.S. banks are the largest financiers of fossil fuel….

Economics has, for good reason, been called the dismal science. The scenario of doom and gloom that I have painted is, unfortunately, all too real. But I want to end on a sunnier note. Doing something about climate change could be a real boon for the economy.

Too often, critics of taking action point to the job losses. Change is costly. But change provides opportunity. I am also firmly convinced that the opportunities afforded by addressing climate change are enormous. The number of jobs that will be lost in the old fossil fuel industries are dwarfed by those that will be created in the new industries. The value created in the new industries will also dwarf the value of the stranded assets in the fossil fuel and related sectors. As just two examples: the number of installers of solar panels already is a multiple of the number of coal miners; the auto company with the highest valuation today is Tesla…

The current focus on changing to a green economy is already stimulating enormous innovation, innovation that holds out the promise of significant increases in standards of living. The price of renewable energy has been plummeting, and in many areas outcompetes fossil fuels. The drive for a greener society is stimulating the design of new buildings and new ways of doing agriculture, which turn out actually to save resources, particularly if we value them appropriately….

Our country especially has much to gain, because innovation is a key comparative advantage. If we are ahead of the game—rather than a laggard—we will develop technology that will be in demand around the world. If we are behind the game, we will pay a high price. It is almost inevitable that other countries will demand cross-border adjustments that will put our companies at a disadvantage….

There is much more to be done to protect the economy from the risks I have described. For instance, we need immediately to end fossil fuel subsidies and require full disclosure of climate risks—both the risks of physical damage and the financial risks. Markets on their own don’t provide adequate disclosure, necessary both for the efficient allocation of scarce capital and for protecting investors. We need to change statutes governing fiduciary responsibility to mandate looking at these long-run risks, and especially where government is at risk, as in government insurance pension schemes…

There’s much more at the link, and it is definitely worth reading in its entirety.

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Today’s GOP Even Frightens David Brooks

David Brooks frustrates me. Sometimes, I disagree strongly with his “take” on the American condition (usually offered from what seems a self-consciously “elevated” vantage point), but sometimes, he hits the nail squarely on the head. I continue to read his columns in the New York Times for those latter instances, of which last Friday’s was one.

Titled “The GOP is Getting Even Worse,” Brooks commented on the cultural hysteria that has clearly gripped the Republicans’ (declining) base.

There are increasing signs that the Trumpian base is radicalizing. My Republican friends report vicious divisions in their churches and families. Republican politicians who don’t toe the Trump line are speaking of death threats and menacing verbal attacks.

It’s as if the Trump base felt some security when their man was at the top, and that’s now gone. Maybe Trump was the restraining force.

What’s happening can only be called a venomous panic attack. Since the election, large swathes of the Trumpian right have decided America is facing a crisis like never before and they are the small army of warriors fighting with Alamo-level desperation to ensure the survival of the country as they conceive it.

Survey research provides support for that observation. Brooks points to a poll taken in late January, in which respondents were asked whether politics is more about “enacting good public policy” or more about “ensuring the survival of the country as we know it. ” Fifty-one percent of Trump Republicans said survival; a mere 19 percent chose policy.

Another poll asked Americans which of two statements came closest to their view: “It’s a big, beautiful world, mostly full of good people, and we must find a way to embrace each other and not allow ourselves to become isolated” or “Our lives are threatened by terrorists, criminals and illegal immigrants, and our priority should be to protect ourselves.”

Those who read this blog can guess what’s coming: More than 75 percent of Biden voters chose “a big, beautiful world.” Two-thirds of Trump voters chose “our lives are threatened.”

Brooks is absolutely right when he writes that

Liberal democracy is based on a level of optimism, faith and a sense of security. It’s based on confidence in the humanistic project: that through conversation and encounter, we can deeply know each other across differences; that most people are seeking the good with different opinions about how to get there; that society is not a zero-sum war, but a conversation and a negotiation.

He is also right when he observes that the Republican response to Biden and his agenda has largely been anemic “because the base doesn’t care about mere legislation, just their own cultural standing.”

For years, the refrain from what Americans call “the Left” (and what is globally considered pretty middle-of-the-road) has been “why do so many people vote against their own best interests?” That question, however, rests on a faulty premise. Moderate and leftwing folks define “best interests” in largely economic terms. Voters would be “better off” financially or more likely to find employment if they voted differently. But today’s Republicans see their “best interests” in cultural and racial terms, not economic promises.

The overwhelmingly White Christian supporters of today’s GOP see a demographic shift that will eventually rob them of what is clearly most important to them–far more important than a good job or a fairer tax system or the rate of inflation. Their “interest” is in continued cultural and racial dominance–and as the research shows, many of them are willing to engage in violence, a la January 6th, to protect that dominance.

It’s scary.

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About That Shortage Of Workers…

Bars and restaurants are reopening–something for which we are all grateful–but according to media reports, having trouble finding workers. Republicans are jumping on those reports, arguing that employers just can’t compete with unemployment insurance checks. It’s the standard GOP argument that helping people breeds “dependence,” — that workers would rather collect benefits than go back to work.

A 2020 study by Yale economists found that–convenient as that argument may be–it’s wrong. Unemployment benefits don’t create a disincentive for job seekers.

Recent reports suggest that the pandemic has cost America’s economy 2.5 million restaurant jobs and closed more than 100,000 eateries. Now, just as the nation begins to return to whatever “normal” looks like, the restaurants that made it through 2020 can’t find staffers.

A recent Brookings report  looked at Census survey data from early April. It found that 37% of small businesses in the hospitality and food sectors were affected by worker availability, compared to 16% for all small businesses.

So–if those Yale researchers are right, and the dearth of restaurant workers isn’t attributable to sloth enabled by unemployment compensation–what is causing the problem?

One likely factor is the unusual timing. When everyone is trying to hire at the same time, it is harder to find workers. Add to that the fact that easing of the pandemic does not equate to defeat of the pandemic. Many workers–especially those who will face the public as servers, hosts and the like–remain fearful, and not without reason.

But a substantial and overlooked reason for the problem is Trump’s immigration policy. 

Restaurants (and for that matter, farmers) have long been dependent upon immigrant labor, and Trump’s policies (if hatred of Black and brown people can be dignified by the label “policy”) sharply curtailed the supply of those workers. Of course, pointing out that consequence is incompatible with Republican’s anti-immigration orthodoxy.

An ugly truth further complicating the situation is the fact that food establishments don’t depend exclusively on legal immigrants. A study from last year pointed out the significant extent to which restaurants rely on undocumented workers–and how they exploit those workers’ fears of deportation to underpay them.

Undocumented immigrants as a whole pay billions in taxes and a higher effective tax rate average than the top 1 percent of taxpayers (8 percent versus 5.4 percent).

And, as they often work in the back of house — as line cooks, bussers, dishwashers, and janitors — they’re largely invisible to the dining public. In reality, they’re the backbone of the industry. And yet, many are unable to obtain health insurance even though they perform backbreaking work day after day. Most didn’t receive a $1,200 stimulus check from the government, and they often fear getting tested for COVID-19 or obtaining care for fear of deportation.

The next time a GOP flack attributes the scarcity of workers to “dependency” caused by government largesse (a dependency that somehow doesn’t affect the wealthy and corporate beneficiaries of sizable subsidies), you might connect the dots for him.

You might also ask GOP opponents of immigration if they are willing to pay higher prices for fruits and vegetables, and more for that hamburger, if farmers and restaurant owners have to pay something close to a living wage to attract workers in a tighter (and Whiter) labor market. (For the record, I would be willing to pay more if I could rely on the assumption that the people picking produce and waiting on my table–whatever their ethnicity– were being paid a fair wage. )

Bottom line: anti-immigrant rhetoric grounded in barely veiled bigotry may generate votes, but rational, comprehensible and humane immigration policies are more likely to reopen your favorite watering hole….

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Alternate Realities

If we needed a reminder that today’s Republicans and Democrats occupy very different realities, Pew recently provided it.

The Pew Research Center fielded one of its periodic surveys, asking Americans to identify the issues facing the country that they considered most pressing. A majority of Democrats identified gun violence, health care affordability, the coronavirus outbreak and racism as very big problems facing the country today. Each of those issues was identified by two-thirds or more of Democrats and Democratic leaners.

But far fewer Republicans saw these issues as major problems.  The closest they came was the four-in-ten Republicans who did identify health care affordability; approximately two-in-ten rated the coronavirus and gun violence as big problems.

The extent to which climate change and economic inequality are viewed as very big problems is similarly split along partisan lines. About six-in-ten Democrats say each of these are very big problems, while just 21% of Republicans say economic inequality is a very big problem and even fewer (14%) say this about climate change.

By contrast, illegal immigration and the federal budget deficit are the top problems identified by Republicans. About seven-in-ten say both of these are very big problems for the country. Only about three-in-ten Democrats identify these issues as very big problems

It isn’t hard to see the influence of partisanship in these responses. Pew reports that Republicans today are 40 percentage points more likely than Democrats to say the deficit is a very big problem, a finding that–among other things– is in stark contrast to the numbers who said so during the Trump Administration, when there wasn’t a partisan split on that issue. Evidently, deficits incurred when Republican Presidents cut taxes on the wealthy aren’t as worrisome as deficits caused by Democratic Presidents spending on pandemic relief and infrastructure.

It is stating the obvious to say that government cannot solve a problem it fails to properly diagnose. We have evidently reached a point in our political lives where Americans refuse to see problems that are at all inconsistent with their political identities–so people who embrace so-called “Second Amendment” liberties don’t see the steady toll of mass shootings (not to mention the consistent loss of life attributable to suicide by gun) as a big problem.

What is truly difficult to understand is the survey’s finding that only 14% of Republicans identify climate change as a problem. This, in the face of dramatic increases in damaging weather events, out-of-control fires attributable to unusually severe droughts, rising sea levels and other evidence that is widely reported and just as widely attributed to climate change– and that increasingly affects the daily lives of ordinary Americans.

The fact that members of the GOP don’t consider income inequality a problem is more understandable, if equally unforgivable. After all, Republican policy preferences have caused that inequality.

It also isn’t surprising that Republicans named immigration as a “big problem.” For many of them, immigration these days equates to the entry of people of color, hastening the time when White Americans are no longer in the majority. Democrats who consider immigration a problem generally define the problem differently; for them, the problem is a dysfunctional system that takes far too long, is difficult to administer, and is unfair to categories of would-be immigrants.

The Pew survey illustrates what most observers already know: Republicans and Democrats no longer simply disagree about the policies needed to solve our problems. They occupy different realities, in which the identity and severity of the nation’s problems are starkly different.

No wonder our political system is gridlocked.

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Rand Paul Is Insane..Or Worse

A friend of mine from what I’m beginning to think of as the “good old days of politics” spent time as a Republican member of the Indianapolis City-County Council. He has steadfastly refused to exit the party, insisting that the few remaining sane folks need to be there to pick up the pieces when the fever breaks.

I hope he’s right about the fever breaking…

In any event, he continues to be the recipient of rightwing emails and solicitations, and on occasion, he shares them with me. This one from increasingly bizarre Rand Paul hit my inbox a couple of days ago, accompanied by a simple message: “wow!” Here it is in its entirety.

From: Rand Paul <[email protected]>
Sent: Monday, April 19, 2021 11:32 PM
To: Patriot (I’ve blanked my friend’s name)
Subject: throw away your masks and burn your ‘vaccine passport’
 

Patriot,

The left has gone completely COVID crazy.

They want government-enforced shutdowns, mask mandates, school closures, forced vaccines, and now they’re talking about a COVID vaccine passport.

It’s absolutely unconstitutional – not to mention, it’s absurd.
 

A Democrat politician famously said, “never let a crisis go to waste.”  Boy, did this pandemic really see them put their shoulder into that old axiom.

Throughout the COVID crisis, these radicals have embraced theatrics, abandoned science, and the longer it goes on, the more they double down. 

The newest power grab comes in the form of an alleged “Vaccine Passport” which would determine whether or not you’re “ALLOWED” to engage in your everyday life.

Want to go to the store? Show your vaccine card.

Want to go to a restaurant or concert? Did you tell the government what vaccines you’ve had?

Want to travel? VACCINE PAPERS PLEASE.

This is the slippery slope I warned about and it’s exactly what I’m fighting to defeat in Washington. Will you chip in to join the fight today?

By donating below, you are making an immediate contribution:

ONE CLICK DONATE: $75

 If you’ve saved payment information with Revv or WinRed, your donation will go through automatically.

 Patriot, this passport idea from these hypocrites in Washington is just completely unacceptable. 

Let’s not forget: these are the same people who are boycotting states like Georgia for implementing common-sense policies like voter ID.

Let me tell you something… if you think voter ID is racist, but the vaccine passport is just fine, you need some serious help thinking through public policy.

I will never be in favor of this COVID hysteria and I will never support a COVID passport. JOIN ME: CHIP IN NOW >>

It’s time to say enough is enough. 

I urge everyone to get the vaccine if you need or want it. And then I urge everyone in America to throw away their masks, demand their schools be open, and burn your vaccine passport if they try to give it to you.

If you’re with me, please chip in today to join the fight against the vaccine passport powergrab.

Where to begin? During the year-long fight against COVID, Rand Paul has consistently played to the (misnamed) “Patriots” –engaging in uninformed debates with Dr. Fauci, dealing in a variety of anti-science conspiracy theories, and just generally making an ass of himself. 

If he really believes half of what he spouts, we can shrug and chalk up his behavior to mental illness, but if–as I half suspect–he is playing the “patriots” on his email list for suckers in order to raise money, he’s  just venal. Either way, of course, the conclusion is the same: a member of the United States Senate who has absolutely no business being there. 

Rand Paul and his ilk have displayed exactly ZERO interest in policy, in deliberating in good faith, or in representing the genuine interests of a majority–or even a minority– of their constituents.

Most Americans would undoubtedly define “patriotism” very differently from the implicit meaning conveyed by Rand Paul’s (mis)use of the word .
 
 

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