Race And American Inequality

This is Black History Month, but rather than a post on black history, I think it may be useful to share some depressing information about the current status of African-Americans vis a vis the White Americans who have occupied a privileged social position in this country even after most of the legal disabilities targeting people of color were repealed.

The Institute for Policy Studies recently issued a report on the wealth gap between whites, Latinos and blacks in the United States.The report looked at trends in household wealth among Black, Latino and White households over the past three decades.

Since the early 1980s, median wealth among Black and Latino families has been stuck at less than ten thousand dollars, while the median wealth of White households, adjusted for inflation, grew from $105,300 to $140,500. The median White family has 41 times more wealth than the median Black family and 22 times more wealth than the median Latino family.

The wealth gap has gotten wider as wealth in America has become extremely concentrated.The median American family of any color has seen its wealth drop 3 percent between 1983 and 2016–a period of time in which the richest 0.1 percent have seen their wealth jump 133 percent. The three wealthiest families–the Waltons, the Kochs and the Mars–have seen their wealth increase by nearly 6,000 percent.

Wealth held by members of the Forbes 400 equals that of all Blacks plus a quarter of Latinos.

The  report takes issue with analyses that treat the racial wealth divide and the growth of economic inequality as two separate issues; instead, it finds that they are mutually reinforcing outcomes of larger economic issues–issues that result from public policies that have favored–and continue to favor–both White Americans and the very wealthy.

Just one example: As this is being written, Mitch McConnell and the Senate GOP are proposing to eliminate what they like to call the “death tax,” and the rest of us call the estate tax.

The estate tax raises $20 billion dollars a year, which is a lot of money, but a pretty insignificant part of the federal budget. It applies only to estates worth more than $5.5 million dollars, and people with lots of money can pretty easily structure their wills to avoid it.

As the Atlantic points out, however, there’s more than money involved in this debate.

The tax code is more than a ledger. It is a national statement of values. And so this little law inspires a great commotion during each tax debate. To its opponents, it is the ultimate (literally) punishment on success and an affront to the family legacy that each striving individual hopes to leave. To its supporters, it is a necessary bulwark against inherited plutocracy, which offends the national virtue of merit over privilege.

The article goes through the arguments advanced in favor of repeal and in favor of retention of the estate tax, and is worth reading for a quick review of the debate. But the argument for retention most relevant to policy’s role in worsening inequality is that, in a period defined by the rising gap between rich and poor, we need to recognize the enormous role played by inheritance.

According to analysis byMatt Bruenig, a writer and the founder of the advocacy group People’s Policy Project, four out of 10 members of the wealthiest 1 percent inherited some money, with an average inheritance in the millions of dollars….

In the last half century, the average wealth of the bottom half has gone from about nothing to about $1,000 in debt. Meanwhile, the returns at the top have accelerated. In the 1960s, families in the top 1 percent were six times wealthier than families in the middle, according to the Urban Institute. By 2016, the 1 percent was 12 times wealthier than the typical family. As wealth inequality has soared, the estate tax has been diminished, with the number of estate tax returns declining by 76 percent between 2006 and 2015. There is little doubt that 21st-century tax policy has assisted the concentration of wealth.

When ostensibly color-blind tax policy benefits “haves,” that policy inevitably benefits Whites.

And let’s face facts: money is power.

Comments

Kakistocracy

Kakistocracy is defined as government by the least competent or suitable. To which I would add: most corrupt. And that corruption goes well beyond the White House, where Trump’s incompetence is on constant display.

Examples abound. The Guardian recently reported accusations that the FDA has “direct links” to the opioid crisis.

The Food and Drug Administration is sacrificing American lives by continuing to approve new high-strength opioidpainkillers, and manipulating the process in favor of big pharma, according to the chair of the agency’s own opioid advisory committee.

Dr Raeford Brown told the Guardian there is “a war” within the FDA as officials in charge of opioid policy have “failed to learn the lessons” of the epidemic that has killed hundreds of thousands of people over the past 20 years and continues to claim about 150 lives a day.

Brown accused the agency of putting the interests of narcotics manufacturers ahead of public health, most recently by approving a “terrible drug”, Dsuvia, in a process he alleged was manipulated.

Brown’s accusations come at a time when the FDA’s credibility is low; it has been damaged by  the opioid crisis and by accusations that the agency has behaved less as a regulator and overseer of the pharmaceutical industry and more like a business partner of drug manufacturers.

The FDA was also embarrassed by revelations that officials responsible for opioid approvals were taking part in “pay to play” schemes in which manufacturers paid to attend meetings to draw up the criteria for approving prescription narcotics.

Things are no better at the EPA.

The EPA is in charge of ensuring companies and utilities follow national environmental laws. Its enforcement has actually been on the decline for the past decade and reached 10-year lows in the fiscal year 2017, according to the agency’s own data. But the numbers really plummeted between the fiscal years 2017 and 2018, according to the Environmental Data and Governance Initiative, an advocacy group formed by university researchers to counter what they see as the Trump administration’s rejection of science.

The decline in enforcement is intentional, according to environmental groups and former EPA personnel.

“The administration has strongly sent a message, to the folks who do enforcement, that they should cut back on their role,” says Marianne Sullivan, a public-health professor at William Paterson University in New Jersey and an EDGI volunteer who conducted the interviews. “There are declining resources. There’s much more deference to industry.”

Less enforcement, of course, means–among other things– that more Americans may be exposed to lead, smoke, and other pollutants that the EPA regulates.

Here in Indiana, we have  two recent examples of the consequences of EPA non-performance. In Franklin, Indiana, residents attribute a cluster of childhood cancers to a toxic site identified years ago by the EPA–after which nothing was done.

And in the small town of Wheatfield, Indiana, toxic coal ash is leaching into the groundwater.

In Indiana, coal ash ponds are leaking at 15 out of 15 power plant sites tested. But the problem isn’t limited to the Hoosier State, which currently has the most coal ash dumps in the country. Based on the industry’s own data, 92 percent of all coal ash ponds and landfills tested under the new rule have contaminated groundwaterwith harmful levels of toxic chemicals like arsenic and boron. Oklahoma reported in June that 4 out of 4 sites tested had contaminated groundwater, while Illinois revealed in November that 22 out of 24 coal ash sites tested positive for groundwater contamination. In total, the U.S. is home to more than 1,400 of these sites, many of them filled with millions of gallons of toxic ash.

As news about the contamination leaks out, coal companies and electric utilities are desperate to water down the 2015 regulations, including weakening the reporting, closure, siting, and cleanup requirements in the new rule.

Last March, Trump’s EPA heeded their wishes, proposing to gut coal ash regulationsjust as the nation began discovering that many coal ash ponds and landfills are leakingtoxic pollutants into groundwater. The 2015 rule opened a door to a hidden disaster; weak regulators now want to slam it shut. And they’re just getting started.

To characterize the current administration as “just” a Kakistocracy is to be kind. If it isn’t also a criminal enterprise, it’s close.

Comments

Transparency

Classes in public management routinely include lectures on the importance of transparency; after all, democratic processes depend upon the participation of informed voters, and–as yesterday’s post noted– being informed requires knowledge of what government is doing.

From that perspective, I suppose we might applaud news of the most recent survey from Transparency International.

Transparency International publishes an annual Corruption Index that ranks the world’s governments on their honesty. The United States didn’t do so well.

The U.S. has plummetedin an annual corruption index, falling out of the top 20 countries for the first time since 2011, watchdog Transparency International said in a new report that links the global erosion of democracy and tidal wave of autocrats to an uptick in graft.

“Corruption chips away at democracy to produce a vicious cycle, where corruption undermines democratic institutions and, in turn, weak institutions are less able to control corruption,” said Patricia Moreira, managing director of Transparency International (TI).

The Corruption Perceptions Index, which ranks 180 countries by their perceived levels of public sector corruption, found overall that the failure to control corruption is contributing to a “crisis of democracy around the world.”

It will probably not shock you to learn that the U.S. slipped four points since the election of Donald Trump. That’s the lowest score we have registered in seven years.

The low score comes at a time when the U.S. is experiencing threats to its system of checks and balances as well as an erosion of ethical norms at the highest levels of power,” according to TI.

President Donald Trump is a “symptom, not a cause,” Zoe Reiter, the watchdog’s acting representative to the U.S., told Reuters

“Conflict of interest wasn’t a new problem, but it was illuminated in its glory when you have someone who is basically breaking norms,” she said.

According to the Index, the least corrupt countries were Denmark and New Zealand; Western Europe and the European Union scored the highest by region.

The most obvious question raised by America’s declining honesty is: what are we going to do about it? The most obvious answer is: we’re going to begin by getting rid of Donald Trump and Mitch McConnell. As salutary as that would be–as much of an improvement their exit from public life would represent–that should only be a start. As Zoe Reiter has pointed out, they are symptoms.

There’s a reason we have rarely heard pundits and public figures use terms like “public servant” and “statesman” over the past couple of decades. The political figures worthy of those labels–in Indiana, the Richard Lugars and the Lee Hamiltons–have been replaced by ambitious empty suits who lack both gravitas and integrity (and frequently, intelligence) and who are unwilling to do the hard work needed to master policy areas.

Empty suits are much easier to corrupt. Hence America’s declining place on the Corruption Index.

The problem is, when politics becomes a dirty word, it’s much harder to recruit bright, idealistic young people to run for office.

We can only hope that the number of newcomers who ran and won in 2018 are a sign of renewed political interest among young citizens intent upon cleaning up what has become America’s disgraceful political sewer.

Comments

No News Is Definitely NOT Good News

Indianapolis, Indiana used to have three newspapers. Little by little, we lost them–the Indianapolis Times went first, then the Indianapolis News, the evening paper, “merged” with the co-owned morning Star. Then Gannett bought the Star, and changed what had been a mediocre newspaper into a worthless compendium of sports columns and stories about new bars in town, wrapped around a daily “McPaper”–aka USA Today.

Gannett’s ownership led to a constant series of layoffs and outsourcing. The layoffs and firings decimated the news staff, with those having institutional memory going first, and the outsourcing of copy editing multiplied the number of misspellings and textual gaffes. All of this seemed–and still seems–insane to me: the only thing news organizations have to sell is news content; it makes no sense to save money by reducing your ability to produce the quality and quantity of what you are selling.

Now, a new organization evidently wants to buy Gannett. Ordinarily, I’d be delighted, but evidently, the potential buyer is even less interested in producing news than Gannett. According to a column in the Washington Post,

Print revenue is down, digital and mobile revenue aren’t nearly enough, and now a hedge fund promising even deeper cuts wants to acquire the company. If the future of corporate news operations looks bleak, that’s because it is.

In Tennessee, we’ve been watching the slow-motion destruction of our news institutions under Gannett for a few decades now, and the idea that things are about to get even worse is appalling. As badly as the country needs strong coverage of national news these days, the local news landscape is important, too. And what happened here mirrors what’s already happened in city after city.

The story of what happened in Tennessee mirrors what happened in Indianapolis.

In July, for example, local hospital operators LifePoint Health and RCCH HealthCare Partners merged in a nearly $6 billion deal that affected roughly 1,000 local employees. The Tennessean covered the story with an Associated Press dispatch written in New York, followed by a local rewriteof a news release at the end of the day. There was no follow-up coverage despite LifePoint’s founder receiving a $70 million exit package and 250 jobs getting eliminated.

In Indianapolis, the locally-owned Indianapolis Business Journal (disclosure: I write a column for the IBJ) does a good job of covering the business community. (It actually does a better job of covering state and local government than the Star, but that’s not its primary mission and being better than the Star is to clear a low bar.) Nuvo, our alternative weekly newspaper, does excellent reporting on selected scandalous or corrupt matters, but doesn’t have the resources to provide the sort of comprehensive coverage we used to get from daily papers. Thanks to the Star’s shortcomings, citizens of Indianapolis get only the most superficial coverage of state government, the legislature and city agencies.

And it matters.

When no one is watching the store, there is no way to evaluate whether  or how local officials are doing their jobs. There’s no “early warning system” allowing citizens to object to changing rules. There’s no authoritative, trusted source to rebut or confirm rumors or conspiracy theories.

It’s hard to disagree with the conclusion of the cited article:

All over America, we need something different: We need more reporters covering the issues that matter to our communities. We need to stem the crisis in statehouse reporting; here in Nashville, the Capitol Hill press corps has dwindled from 35 to just 10 over a few decades. We need more investigative power to follow the billions of dollars spent by state and local governments, often with little oversight. We need competition in places where corporate news has carved out monopolies and let local news wither.

 And we need to do it fast, because the butchers are sharpening their knives.

No news is definitely not good news.

Comments

Words Utterly Fail….

A few days ago, I posted about the excellent bill Congressional Democrats have introduced to begin the overdue cleanup of corrupted democratic processes. The bill includes curbs on gerrymandering and safeguards against vote suppression, among other things.

The one element of the bill that I figured was unlikely to be controversial was the proposal to make Election Day a national holiday. Good government groups have been lobbying for this for years. I mean, how can you argue against making voting easier for people who work long hours and have other problems getting to the polls?

Mitch McConnell–aka the most evil man in America–just answered what I thought was a rhetorical question. He has labeled the proposal “a power grab.”

I suppose if you are convinced that facilitating citizens’ ability to cast their votes will lead to  higher vote totals for your political opponents–if you know, in your heart of hearts that you and your party are historically unpopular– that might seem like a power grab…Still, it’s hard to imagine McConnell offering this argument with a straight face.

There has been a lot of outrage expressed in the wake of McConnell’s chutzpah, but I think Ed Brayton’s response at Dispatches from the Culture Wars is my favorite.

The man who refused to allow even a committee vote on Obama’s Supreme Court nominee for nearly a year so a Republican could appoint the next justice is accusing someone else of a power grab? The fact that he wasn’t immediately struck dead by lightning is powerful evidence that there is no god (or that god is a first-class jerk, take your pick). This is Trumpian-level lack of self-awareness and shamelessness. I can’t imagine how the man sleeps at night, other than on a pile of money.

McConnell was recently described by a historian as “the gravedigger of American democracy,” a description he has clearly earned. (Even Donald Trump, who never met a greedy thug he couldn’t relate to, evidently told aides that McConnell was “meaner than a snake.”)

McConnell has defended his opposition to making Election Day a holiday by claiming it would cost money, because it would require government workers to be paid. In Mitch’s world, the country can easily afford to give billions in “tax relief” to corporations, but can’t manage continuing to compensate government employees for one extra day off.

Hoosiers like to make fun of folks from Kentucky, characterizing them as not-too-smart hillbillies. I’ve always maintained that bigotry–even geographical bigotry–is always wrong. But to the extent that there is  evidence for that characterization of our neighbors to the south, it is that they have repeatedly voted for Mitch McConnell.

Comments