Lessons from Kansas

Remember the book “What’s the Matter with Kansas?” If we ask that question today,  the obvious answer is Sam Brownback (and in all fairness, the Kansans who elected–and inexplicably re-elected– him.)

Brownback took office in January of 2011. Like Indiana’s Mike Pence, Brownback had Republican majorities in both legislative houses, and together they were able to implement what Rolling Stone has called “the Republicans’ wet dream agenda.”

They passed huge tax cuts for the wealthy along with tax cuts on business profits, significantly reduced business regulations, and at the same time cut spending on welfare, rejected federal Medicaid money, and put the delivery of Medicaid services into private hands.

One of Brownback’s advisors was Arthur Laffer—best known for the “Laffer curve”–the theory that reducing tax rates leads to higher tax revenues. Laffer’s theory was the impetus for Reagan’s tax cuts; he has called what Kansas Republicans did “a revolution in a cornfield.” Other advisors included Steve Anderson, from the Koch brother’s Americans for Prosperity.

Whatever Kansas is these days, however, it sure isn’t prosperous.

As New York magazine recently reported in an article characterizing Kansas as a “parallel political universe,” the “revolution in the cornfield” has left the state in a world of hurt.

Marginal gains at the municipal level were dwarfed by the $688 million loss that Brownback’s budget wrought in its first year of operation. Meanwhile, Kansas’s job growth actually trailed that of its neighboring states. With that nearly $700 million deficit, the state had bought itself a 1.1 percent increase in jobs, just below Missouri’s 1.5 percent and Colorado’s 3.3.

Those numbers have hardly improved in the intervening years. In 2015, job growth in Kansas was a mere 0.1 percent, even as the nation’s economy grew 1.9 percent. Brownback pledged to bring 100,000* new jobs to the state in his second term; as of January, he has brought 700. What’s more, personal income growth slowed dramatically since the tax cuts went into effect. Between 2010 and 2012, Kansas saw income growth of 6.1 percent, good for 12th in the nation; from 2013 to 2015, that rate was 3.6 percent, good for 41st.

Meanwhile, revenue shortfalls have devastated the state’s public sector along with its most vulnerable citizens. Since Brownback’s inauguration, 1,414 Kansans with disabilities have been thrown off  Medicaid. In 2015, six school districts in the state were forced to end their years early for lack of funding. Cuts to health and human services are expected to cause 65 preventable deaths this year in Sedgwick County alone. In February, tax receipts came in $53 million below estimates; Brownback immediately cut $17 million from the state’s university system. This data is not lost on the people of Kansas — as of November, Brownback’s approval rating was 26 percent, the lowest of any governor in the United States.

This is what happens when people elect stubborn ideologues unwilling to learn from reality or experience. (Here in Indiana, we’re about to see whether Hoosier voters have learned anything about returning ideologues to office.)

If Brownback had been Governor of Kansas when that storm blew her away, Dorothy probably would have stayed in Oz.

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The Dunning-Kruger Effect

What do Mike Pence and Donald Trump have in common? They both exhibit the Dunning-Kruger effect— a scientific theory establishing the truth of Mark Twain’s observation that “It ain’t what you don’t know that hurts you, it’s what you know for sure that just ain’t so.”

Or–in other formulations–it’s what you don’t know that you don’t know.

There are plenty of politicians in both parties who exhibit the Dunning-Kruger effect, but few do so with such stunning obliviousness as these two. Here in Indiana, voters have been treated to ample evidence of our Governor’s ideological rigidity in the face of inconvenient realities (it will be interesting to see how “gung-ho for vouchers” Pence responds to recent research showing that Hoosier children using those vouchers perform more poorly than children remaining in public schools).

But I must admit that even Pence’s delusions pale next to those displayed by “The Donald” he has endorsed.

Again, the key to the Dunning-Kruger Effect is not that unknowledgeable voters are uninformed; it is that they are often misinformed—their heads filled with false data, facts and theories that can lead to misguided conclusions held with tenacious confidence and extreme partisanship, perhaps some that make them nod in agreement with Trump at his rallies.

….

For example, in a CNBC interview, Trump suggested that the U.S. government debt could easily be reduced by asking federal bondholders to “take a haircut,” agreeing to receive a little less than the bond’s full face value if the U.S. economy ran into trouble. In a sense, this is a sensible idea commonly applied—at least in business, where companies commonly renegotiate the terms of their debt.

But stretching it to governmental finance strains reason beyond acceptability. And in his suggestion, Trump illustrated not knowing the horror show of consequences his seemingly modest proposal would produce. For the U.S. government, his suggestion would produce no less than an unprecedented earthquake in world finance. It would represent the de facto default of the U.S. on its debt—and the U.S. government has paid its debt in full since the time of Alexander Hamilton. The certainty and safety imbued in U.S. Treasury bonds is the bedrock upon which much of world finance rests.

Even suggesting that these bonds pay back less than 100 percent would be cause for future buyers to demand higher interest rates, thus costing the U.S. government, and taxpayer, untold millions of dollars, and risking the health of the American economy.

Those of us who teach public administration–whose academic mission is to give prospective government workers the specialized knowledge and tools they will need in order to perform adequately and in the public interest–get pretty disheartened when voters who would never ask a non-dentist to extract wisdom teeth, a non-electrician to wire their homes, or an auto mechanic to draft a lease, blithely assume that anyone with “business sense” (or in Indiana, the “right” religious beliefs) can therefore manage a nation or a state.

Too many voters think of their ballots as a form of symbolic speech, rather than as the act of making a real-world choice between inevitably imperfect alternatives.

The fact that our alternatives may all be flawed is not to suggest that all flaws are created equal.

In November, Indiana voters will have a choice between pretentious piety and managerial competence.

Nationally, voters will have a choice between the unthinkable, a Democratic candidate that many find unsatisfactory, and a smattering of minor-party candidates with absolutely no chance of winning the Presidency. If the electorate doesn’t know what it doesn’t know–if voters fail to understand the difference between less than ideal and dangerously, monumentally unfit, we’ll all suffer the consequences.

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Squirrel!

In the charming animated movie UP, a recurring joke had the dog distracted from his task of the moment by the appearance of a squirrel. For a while, it became a meme–if a debate threatened to get personal, or a line of inquiry a bit too probing, someone would yell “squirrel!” to change the focus and break the tension.

“Squirrel!” became shorthand for distraction, and an inability to continue focusing on the task at hand.

Today’s “squirrel!” is fear of lurking transgender folks in the bathroom.

It isn’t only bathroom use, of course.

OKLAHOMA CITY — Some public schools are starting summer vacation several days early. Others are contemplating a four-day week to cut costs. And more than 200 teachers in Oklahoma City were handed pink slips in March.

But instead of addressing a burgeoning budget crisis that threatens public education and other critical state services, Oklahoma lawmakers have been busy debating proposals to criminalize abortion, police students’ access to public bathrooms and impeach President Obama.

It isn’t only Oklahoma, either. In fact, some of the most egregious examples of misdirection can be found in Congress, where 50+ votes to repeal the Affordable Care Act, interminable investigations of Benghazi, and attempts to impeach the head of the Internal Revenue Service, among similar distractions, have consumed the energies of lawmakers to the detriment of actually doing the nation’s business.

It’s hard to know whether the surreal political landscape we currently inhabit is simply a “phase” we are going through–sort of a national adolescence–or whether it is the beginning of a disintegration of the Republic– evidence that in an increasingly complex modern world, responsible citizenship and self-government are simply beyond our capacities.

If it is the latter, the really worrisome question is: what will replace it? If–as most of us fervently hope– we are just experiencing the dislocations of social change and “paradigm shift,” what sorts of policies should our elected officials be putting in place to safeguard a Constitutional system that has served us well, while still responding to the challenges of globalization and modernity?

But hey–let’s worry about Target’s bathroom policy.

Squirrel!

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Corrupt and Corruptible

I’ve always been a happy person, but I’ll admit to being very depressed these days.

The thought that Donald Trump is actually the Presidential candidate of one of America’s major political parties–a party I worked for and supported for 35 years– nauseates and frightens me. Without money, this man would just be dismissed as the ignorant pontificating asshole you try to avoid at parties, the guy telling  tasteless racist jokes and bragging about his latest con.

(If we had any doubts about the racism, a recent study has pretty much settled the issue: in a survey undertaken to identify the most likely Trump supporters, by far the most likely were people who still insist that President Obama is a Muslim.)

And there have been plenty of cons: his “send in your urine sample and we’ll send you supplements” diet scam, the Trump University fraud (Trump’s “not fair–the Judge is Mexican” sort of reminds me of the whiny undergraduates who complain that their poor grades are because the mean professor didn’t like them…), his refusal to pay people the full amounts of their contracts (he calls that “haircuts”), and so many more.

Now the AP has reported

As scores of students complained that Trump University was a ripoff, the Better Business Bureau in 2010 gave the school a D-minus, its second-lowest grade. State regulators also began to take notice.

The office of then-Texas Attorney General Greg Abbott, a Republican, opened a civil investigation of “possibly deceptive trade practices.” Abbott’s probe was quietly dropped in 2010 when Trump University agreed to end its operations in Texas. Trump subsequently donated $35,000 to Abbott’s successful gubernatorial campaign, according to records.

…

Florida Attorney General Pam Bondi briefly considered joining with Schneiderman in a multi-state suit against Trump University. Three days after Bondi’s spokeswoman was quoted in local media reports as saying the office was reviewing the New York lawsuit, the Donald J. Trump Foundation made a $25,000 contribution to a political fundraising committee supporting Bondi’s re-election campaign. Bondi, a Republican, soon dropped her investigation, citing insufficient grounds to proceed.

So, we know Trump is sleazy and corrupt. But apparently, there are officeholders who are equally corrupt. Or at least, easily corruptible. Maybe that explains the willingness of so many in the GOP to obediently “fall in line” and support the candidacy of this massively unqualified jerk.

I’d love to believe that Trump’s candidacy will go down in flames–that Americans will reject this fascist buffoon, that–as a friend puts it–he is not what is meant by Orange is the New Black….But I keep thinking of a (possibly apocryphal) story about the woman who approached Adlai Stevenson after he’d made a speech, and said “Oh, Mr. Stevenson, no intelligent American could fail to vote for you after that speech.”

Stevenson reportedly replied, “But Madam, I need a majority.”

My stomach hurts, and I think I’m getting hives.

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If We Really Followed the Money…..

I recently came across a citation to a fascinating report from the White House Council of Economic Advisors. (Yes, I know I’m a nerd and my reading habits are embarrassingly dorkish…). But it was interesting!

When asked to study the cost/benefit of various crime reduction policies,  the Council responded with data like this:

The authors consider a few ways of reducing crime. They forecast that hiking the federal minimum hourly wage from $7.25 to $12 would reduce crime by 3 percent to 5 percent, as fewer people would be forced to turn to illegal activity to make ends meet. By contrast, spending an additional $10 billion on incarceration — a massive increase — would reduce crime by only 1 percent to 4 percent, according to the report…

They also calculated the true social costs of crime. It totaled almost $308 billion in 2014. So a simple move like raising the minimum wage to $12 doesn’t only reduce crime by 3%-5%, it would save $8 to $17 billion a year.

The problem, of course, is that in the United States, policies are not evaluated and/or implemented based upon any sort of cost/benefit analysis. A continuing influence of this country’s early Calvinism is our predictable analysis of even the most prosaic policies as “moral” issues, requiring determination of “deservedness.” We don’t ask, what would work best? Instead, we ask “How do we avoid rewarding people for behaviors (real or imagined) of which we disapprove?”

It comes back to a conviction–evidently baked into American DNA–that if people are poor, they must be morally defective. Lazy. Unmotivated. Lacking “middle-class values.”

And all of the data that demonstrates otherwise is simply disregarded as the product of wooly-headed liberals.

If we made policy based upon evidence, we would add the projected reduction in crime to the myriad other benefits of raising the minimum wage.

  • Increased buying power and consumer demand (as a result of more people having more disposable income) would drive improved economic performance.
  • According to research, easing the incredible stress experienced by so many low-wage families would reduce familial dysfunctions and even domestic violence.
  • Ameliorating the fiscal pressures that cause poor families to move more often would reduce the disruptive effect on the education of children who frequently change schools.
  • And guess what? We would dramatically reduce the current levels of government outlays for social programs. 

Someone trying to support a family on today’s minimum wage does not even reach the federal government’s poverty line for a family of three. They would make about $14,500 per year. The federal poverty line for a family of three is $18,123. If the minimum wage were increased to a level at which families could sustain themselves, fewer people would end up needing government assistance for housing, food, or health care. This would be a significant benefit to taxpayers and to states’ budgets.

So why is it so hard to raise the minimum wage?

One intriguing theory, from the Economic Policy Institute, is that raising the minimum wage may be seen as a women’s issue.

While increasing the minimum wage would have a sizable impact on both men and women, it would disproportionately affect women. That women comprise 54.5 percent of workers who would be affected by a potential minimum-wage increase makes it a women’s issue… The share of those affected who are women varies somewhat by state, from a low of 49.3 percent in California to a high of 64.4 percent in Mississippi (according to the authors’ analysis of Current Population Survey Outgoing Rotation Group microdata). California and Nevada, also at 49.3 percent, are the only states where women do not constitute the majority of those who would benefit.

I hate to be a cynic, but maybe the disproportionate benefit to women is why we have so much trouble getting it done.

Misogyny? Or just our usual penchant for stubborn ideology over evidence?

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