The New Powerlessness

Conservative pundit Bret Stephens recently had a column in the New York Times, cleverly titled “The Bonfire of the Sanities.”

Like Alexis de Tocqueville’s “Democracy in America,” Richard Hofstadter’s “The Paranoid Style in American Politics” is often cited but less often read, which is a shame because the landmark 1964 essay helps explain our times.

As an example of contemporary paranoia, Stephens recounted a speech in which Senator Ron Johnson had gone full conspiracy theorist, before it turned out that a text message he had found so suspicious was an office in-joke between two FBI agents who were having an affair.  Johnson was also forced to admit he had no idea what a phrase within the message referenced, “not that it prevented him from painting it in the most sinister colors. Maybe there was a scavenger hunt for Hillary’s missing emails.”

I wouldn’t bother posting about this particular bit of GOP embarrassment–it is only one of  many, and Stephens lists several other “breaking news” items that later turned out to be equally bogus, but I was struck by this observation:

None of this would have surprised Hofstadter, whose essay traces the history of American paranoia from the Bavarian Illuminati and the Masons to New Dealers and Communists in the State Department. “I call it the paranoid style,” Hofstadter wrote, “simply because no other word adequately evokes the sense of heated exaggeration, suspiciousness, and conspiratorial fantasy that I have in mind.” What better way to describe a Republican Party that thinks America has more to fear from a third-tier F.B.I. agent in Washington who doesn’t like the president than it does from a first-tier K.G.B. agent in Moscow who, for a time at least, liked the president all too well?

Then again, Hofstadter might have been surprised to find that the party of conspiracy is also the party of government. The paranoid style, he noted, was typically a function of powerlessness. “Having no access to political bargaining or the making of decisions, they find their original conception that the world of power is sinister and malicious fully confirmed.”

As Stephens points out–and as we all know–the GOP currently controls all three branches of government, and then some: Robert Muller is a Republican. Jeff Sessions is a Republican. Etc. Surely the GOP is not powerless!

Except, it is.

Despite control of the government, the party cannot govern. It cannot head off standoffs like the recent shut-down. When its lawmakers make a deal–like the recent DACA agreement brokered by Lindsay Graham and Dick Durbin–they can’t predict whether their lunatic President will accept it.

Powerlessness, it turns out, is not solely a function of losing elections. There are a lot of reasons for the dysfunction that has turned the federal government into an exaggerated version of the Gang That Couldn’t Shoot Straight–this blog has suggested a number of them. And although he has been a mighty contributor to GOP fecklessness, Trump is less a reason than a consequence.

When nothing is working properly, people look for a reason–usually, they look for someone to blame. When there is no one handy, they suspect conspiracies. They develop paranoia.

The principal lesson of paranoia is the ease with which politically aroused people can mistake errors for deceptions, coincidences for patterns, bumbling for dereliction, and secrecy for treachery. True conspiracies are rare but stupidity is nearly universal. The failure to know the difference, combined with the desire for a particular result, is what accounts for the paranoid style.

“Conspiracies are rare but stupidity is nearly universal.” Or, as a friend of mine used to say when we were all in City Hall: incompetence explains so much more than conspiracy.

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About That Mulligan…

For the past year and a half, many people have tried to understand  the “family values” Evangelicals who support Trump. That discussion has ramped up since Tony Perkins, leader of the Family Research Council, told Politico that Trump gets a “mulligan,” or do-over, on his past moral transgressions, because he’s willing to stand up to the religious right’s enemies.

One recent analysis of that arguably unholy relationship came via Michelle Goldberg at the New York Times. She began by reminding readers that this seeming departure from New Testament exhortations of love and mercy isn’t anything new.

In 1958, the Baptist preacher Jerry Falwell, who would go on to found the Moral Majority, gave a sermon titled “Segregation or Integration: Which?” He inveighed against the Supreme Court’s anti-segregation decision in Brown v. Board of Education, arguing that facilities for blacks and whites should remain separate.

“When God has drawn a line of distinction, we should not attempt to cross that line,” he wrote, warning that integration “will destroy our race eventually.”

He went on to establish what would become Liberty University–as an all-white school.

Goldberg noted the Evangelical community’s later willingness to support Ronald Reagan despite his divorce, although prior to Reagan’s emergence on the scene, a candidate’s divorce had been an absolute bar to the Christian vote.  Access and influence, evidently, are more important than theology. (You might even say they trump theology.)

Given this history, it is not surprising that the contemporary leaders of the religious right are blasé about reports that Trump cheated on his third wife with a porn star shortly after the birth of his youngest child, then paid her to be quiet. Despite his louche personal life, Trump, the racist patriarch promising cultural revenge, doesn’t threaten the religious right’s traditional values. He embodies them.

Earnest evangelicals, of course, are appalled.

As Michael Gerson–himself an Evangelical Christian– wrote in The Washington Post, the “Christians” who support Trump and ignore behaviors previously considered very unChristian are “associating evangelicalism with bigotry, selfishness and deception. They are playing a grubby political game for the highest of stakes: the reputation of their faith.”

Goldberg also notes the (unpersuasive) contortions of contemporary Evangelicals who are trying to distinguish between their former pro-segregation resistance to Brown v. Board of Education and their current support for anti-LGBTQ activists who don’t want to bake cakes or otherwise do business with same-sex couples. The latter are described by their co-religionists as “sincere Christians” whose religious liberties are being trampled by civil rights laws, and she makes the obvious point:

it seems absurd to ask secular people to respect the religious right’s beliefs about sex and marriage — and thus tolerate a degree of anti-gay discrimination — while the movement’s leaders treat their own sexual standards as flexible and conditional. Christian conservatives may believe strongly in their own righteousness. But from the outside, it looks as if their movement was never really about morality at all.

I’d say that’s a fair conclusion.

Of course, Goldberg and those she cites aren’t the only ones who are trying to understand the fervent Evangelical embrace of a repellant man who embodies everything they claim to abhor.

Among the various explanations I’ve come across, my own favorite is this one that I only recently saw: They believe Trump will use nuclear weapons and destroy the world–and that will bring on the long-awaited Rapture.

At least the Rapture is part of their theology, unlike porn stars….

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Some Damage Will Be Permanent

As the Trump Administration’s dreary parade of discredited assertions, retrograde policies and corrupt practices marches on, I remind myself that destruction is also opportunity; once the current cabinet is gone, competent public servants can address agency shortcomings–both old and new.

I console myself by imagining a new administrator doing a thorough review of agency policies and regulations, jettisoning those that have outlived their usefulness and tightening up those that are needed. The Trumpian chaos can provide an opening to rethink, re-arrange, revisit. Sure, damage was done by the barbarians, but (assuming a really big wave in November) it can be fixed. It can even be made better!

But not all of it.

The Trump administration’s plan to shrink four land-based national monuments has provoked howls of anguish from environmental groups, Native American tribes and some businesses, such as the outdoors company Patagonia.

Accompanying changes to protected monuments in the oceans – vastly larger areas than their land-based counterparts – have received less attention, but could have major consequences for the livelihoods and ecosystems dependent upon the marine environment.

Ryan Zinke, the secretary of the interior, has recommended to Donald Trump that three sprawling marine monuments, one in the Atlantic and two in the Pacific, be either opened up to the commercial fishing industry or reduced in size, or both.

According to marine biologists, these “blue parks ” are home to, and protect, unique species. They shelter a wealth of biodiversity and special habitats.

In 2009, George W Bush created the Pacific Remote Islands national monument around seven islands and atolls in the central Pacific. The monument, subsequently expanded by Barack Obama to become what was the largest marine protected area in the world, comprises “the last refugia for fish and wildlife species rapidly vanishing from the remainder of the planet”, according to the Fish & Wildlife Service, boasting creatures such as sea turtles, dolphins, whales, sharks and giant clams.

Evidently, fishing interests have complained about these areas being made off-limits, and as we have seen with multiple issues, this is an administration exceptionally receptive to the complaints of business and industry.

“This is a spectacular place that contains animals incredibly vulnerable to drilling, fishing, noise and pollution,” said Peter Baker, director of US oceans, north-east, at the Pew Charitable Trusts.

“It shouldn’t be too much to ask to protect 2% of the US’s exclusive economic zone off the Atlantic coast for future generations. Allowing commercial fishing there is really a distortion of why you would have a national monument in the first place.”

Baker said the New England Fisheries Management Council, which Zinke indicated should determine fishing restrictions in the monument, has a “horrible track record” of overfishing and conflicts of interest.

Assuming a return to competent governance, we can repair a lot of the damage. For one thing, we can address–and hopefully redress– the shocking deterioration of our National Parks, recently the subject of a depressing series in the Guardian.

But there’s a lot we can’t repair. And the wrecking crew that is the Trump Administration is counting on that.

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Indiana–Always Last

The Hill recently reported on a number of states where 2018 will see raises in the minimum wage. Indiana, of course, was conspicuously absent from their list.

The lowest wage workers in 18 states will get a boost in their paychecks starting on New Year’s Day, as minimum wage hikes take effect.

Many of the wage hikes are phased-in steps toward an ultimately higher wage, the product of ballot initiatives pushed by unions and workers rights groups over the last few years.

The minimum wage in Washington state will rise to $11.50 an hour, up 50 cents and the highest statewide minimum in the nation. Over the next three years, the wage will rise to $13.50 an hour, thanks to a ballot measure approved by voters in 2016.

Mainers will see their minimum wages rise the most, from $9 an hour to $10 an hour, an 11 percent increase. Voters approved a ballot measure in 2016 that will eventually raise the wage to $12 an hour by 2020.

Arizona, California, Colorado, Hawaii, New York, Rhode Island and Vermont will see their minimum wages increase by at least 50 cents an hour. Smaller increases take effect in Alaska, Florida, Michigan, Minnesota, Missouri, Montana, New Jersey, Ohio and South Dakota.

Our overlords at the Indiana Statehouse like to brag that keeping Indiana a “low wage” “right to work” state means we are attractive to businesses looking to relocate. What they don’t seem to understand is the flip side of the equation, beginning with the state’s inability to provide the quality of life amenities (not to mention smooth highways)  that appeal to businesses proposing to relocate. Higher wages would generate more tax dollars. Higher wages would also reduce the number of people who–despite working full-time–must depend upon social welfare programs funded by tax dollars simply to make ends meet.

I have posted before about the ALICE study, conducted a couple of years ago by Indiana’s United Ways. That study found

  • More than one in three Hoosier households cannot afford the basics of housing, food, health care and transportation, despite working hard.
  • In Indiana, 37% of households live below the Alice threshold, with some 14% below the poverty level and another 23% above poverty but below the cost of living.
  • These families and individuals have jobs, and many do not qualify for social services or support.
  • The jobs they are filling are critically important to Hoosier communities. These are our child care workers, laborers, movers, home health aides, heavy truck drivers, store clerks, repair workers and office assistants—yet they are unsure if they’ll be able to put dinner on the table each night.

Here in Indiana, we don’t seem to find ALICE poverty problematic or immoral, despite the fact that virtually all of us who are more privileged depend upon the services these people provide.

Even more immoral, in my humble opinion, is having my tax dollars effectively paying a portion of the wages of Walmart, McDonalds and other big employers’ workers. As I have previously posted,

Walmart generates nearly $500 billion in revenue annually; over the past five years, its yearly profits have averaged $15.5 billion dollars, and the family that owns it has a net worth of $129 billion dollars.

Despite its obvious ability to do so, the company declines to pay its employees a living wage, instead relying upon government programs–taxpayer dollars– to make up the difference between its workers’ paychecks and what they need to make ends meet. In essence, when a Walmart employee must rely on food stamps or other safety-net benefits, taxpayers are paying a portion of that employee’s wages.

Walmart (including its Sam’s Club operation) is currently the largest private employer in the country–and one of the largest recipients of corporate welfare. Walmart employees receive an estimated $6.2 billion dollars in taxpayer-funded subsidies each year. Money not paid out in salary goes directly to the shareholders’ bottom line.

The Indiana legislature declines to offer even a modicum of help to the third of Hoosiers who are working for below-subsistence wages, but they are evidently happy to continue subsidizing the wealthy.

The Hoosier bottom line.

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More Bad News About The Tax “Reform” Bill

I have a feeling I should keep the title of this post for repeated future use.

It’s hard to know which of the damaging provisions of the tax bill were intentional, and which were the result of the unseemly haste and secrecy that marked its passage. As I have previously noted, scholars of philanthropy have predicted that it will cause a significant decline in charitable giving. (And yes, it would be nice if people gave money because they simply felt generous, but in the real world, deductibility that makes the gift less costly to the giver is a pretty important factor.)

Now we have reports that the tax bill will dramatically reduce the production of (much needed) low-income housing and the preservation of historic structures.

According to the New York Times

SAN FRANCISCO — The last time that Congress approved a sweeping overhaul of the federal tax code, in 1986, it created a tax credit meant to encourage the private sector to invest in affordable housing. It has grown into a $9 billion-a-year social program that has funded the construction of some three million apartments for low-income residents.

But the Republican tax plan approved last month amounts to a vast cutback, making it much less likely that such construction will continue apace. Because the tax rate for corporations has been lowered, the value of the credits — which corporations get in return for their investments — is also lower.

“It’s the greatest shock to the affordable-housing system since the Great Recession,” said Michael Novogradac, managing partner of Novogradac & Company, a national accounting firm based in San Francisco.

According to an analysis by his firm, the new tax law will reduce the growth of subsidized affordable housing by 235,000 units over the next decade, compounding an existing shortage.

Then there’s a report from Shelterforce about the effect of the tax bill on a Chicago neighborhood revitalization project and other projects like it.

Urban and rural communities throughout the country have historic buildings that can be preserved and repurposed for multiple community needs. 

In addition to revitalizing communities such as Uptown and spurring local economic growth, the HTC returns more to the U.S. Treasury than it takes. According to a study commissioned by the National Park Service, since inception, $25.2 billion in federal tax credits have generated more than $29.8 billion in federal tax revenue from historic rehabilitation projects. The credit generates new economic activity by leveraging private dollars that not only preserve historic buildings but also create jobs; through 2016, the rehabilitation of 42,293 historic buildings has created more than 2.4 million jobs, according to the Historic Tax Credit Coalition.

Though HTCs were preserved in the tax bill passed by Congress, its value was diminished. Instead of allowing investors to take the full value of the credit when a building opens, as they can now, it parcels out the credit over five years. Historic preservationists fear this change will decrease the attractiveness of the credit and consequently negatively impact its pricing. A project seeking $2 million of Historic Tax Credit investments could lose as much as $400,000 in valuable capital. Historic rehabilitation projects frequently have higher costs, greater design challenges, and weaker market locations—all of which can already cause lender and investor bias against such investments.

Another casualty of tax reform is the demise of tax credit bonds. While Private Activity Bonds survived the final assault, new key tools such as Qualified Energy Conservation Bonds (QECB) did not.

Yessir. Some tax “reform.”

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