Why Indiana’s Economy Lags

Indiana’s Institute for Working Families conducts research on Indiana’s economy–more specifically, the ways in which the state’s economy is or is not working for low-income Hoosiers who work.

The news, you will not be shocked to discover, is not good.

Recently, the Institute posted a list of 16 reasons why Indiana’s minimum wage should be raised. I encourage you to click through and read them all, but I want to highlight some of the most compelling.

  • There is not one county in Indiana where where working full time at the minimum wage of $7.25 per hour is sufficient to support even a single adult.
  • Waiters and waitresses in Indiana are paid $2.13 per hour by their employers (29% of the minimum wage). The last time they saw a raise was a quarter-century ago (1991), even as the industry has seen strong growth and profitability.
  • In Indiana, the median number of work hours at the minimum wage for a single adult to become self-sufficient is 48 hours per week. The number of hours increases significantly to 108 hours for a single adult with one preschooler and one school-age child. For a family with two adults, a preschooler, and a school-age child, each adult would need to work 64 hours for the family to be self-sufficient.
  • Standard and Poor’s cites rising income inequality as “contributing to weaker tax revenue growth”, making it more difficult for state and local governments to invest in education and infrastructure.
  • Children whose parents work for the minimum wage live below the federal poverty line. Research has found that children being raised in poverty have lower academic achievement, poorer nutrition, fewer job prospects as adults, and worse physical health than their more affluent peers.

The usual objection to raising the minimum wage makes superficial sense: if businesses have to raise what they pay, they will hire fewer workers. Logical as that seems, the evidence from decades of research says otherwise. As the Institute notes,

Two recent meta-analyses of research on minimum wage increases during the 1990s found that “the minimum wage has little or no discernable effect on the employment prospects of low-wage workers.”

There is a reason for this seemingly counter-intuitive result: when the minimum wage goes up, the buying power of low-wage workers also goes up. Unlike wealthier Americans, low-wage workers spend those extra dollars, and that increased spending boosts the economy. Increased buying power translates to increased sales of goods and services; employers who see improved bottom lines hire more workers.

A raise in the minimum wage to 10.10 per hour would affect 637,000 Hoosiers (23.4% of the workforce). That number includes 436,000 who are currently making less than $10.10 and another 201,000 whose wages would be pushed up due to pay scale adjustments. That’s a lot of additional buying power.

And as an added bonus, paying a living wage to hard-working Americans might ameliorate some of the rage and resentment currently fueling our toxic politics.

Just a thought.

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A Very Good Step

I get positively giddy when I actually get to blog about something positive, and these days, those opportunities are rare. But what do you know–Indianapolis’ new Mayor, Joe Hogsett, has provided me with that opportunity!

According to the Indianapolis Star, the Mayor is moving aggressively to close the gaping loopholes in the City’s ethics ordinance.

Today when a lobbyist wines and dines a City-County Council member, he or she has to disclose the cost of the meal, but not who ate it.

This is among a number of loopholes in the city ethics code that Indianapolis Mayor Joe Hogsett is attempting to close with a package of reforms introduced at this week’s council meeting.

Co-sponsored by Democratic Councilmen Blake Johnson and Leroy Robinson, the ordinance would strengthen reporting requirements, impose stronger penalties for violations and create a web portal for easier public access to ethics disclosures. It would also establish a cooling-off period similar to that for state employees.

Many of the provisions contained in the ethics overhaul were introduced last year by then-Councilor Kip Tew. For reasons I have never understood, the Council declined to pass Tew’s version, which was very similar to the one introduced on behalf of Mayor Hogsett. Now, they will have another chance.

Under the pending proposal, lobbyists who repeatedly break the rules could find themselves and their firms subjected to lifetime bans. Contractors who violate the ordinance could be banned for a single offense.

These changes are long overdue. In the six years the current ordinance has been in effect, there has not been a single effort to enforce it, despite multiple accusations of “cozy” relationships between elected officials and those doing business with the city.

Giving the rules real teeth, making them clearer, and making access to documentation easier, will go a long way toward restoring trust in local government.

Now if we could just do something about ethical standards at the General Assembly….

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It’s Not Just a Card–It’s the Whole Deck

Speaking of the “race card”….

As Donald Trump has continued his march toward the Republican nomination, pundits and political historians alike have tried to explain his emergence. One of the most cogent of those explanations appeared in the Guardian, in a lengthy, well-researched article tracing the trajectory of racism and political calculation in the United States.

After describing the events leading up to the passage of the 1964 Civil Rights Act, the article referenced Lyndon Johnson’s well-known quote:

“I think we just gave the south to the Republicans,” he told his staff after ramming the Civil Rights Act of 1964 through Congress. His aide Bill Moyers recalled the moment in more drastic terms: Johnson feared he had delivered the south to Republicans “for your lifetime and mine”, a prediction whose proof, while not yet conclusive – we are happy that Mr Moyers is still with us – has trended ever since toward prophecy.

Fast-forward to Nixon, and the “southern strategy.”

What was needed was white backlash with a kinder, gentler face. Years later, the Republican strategist Lee Atwater, by then an operative in the Reagan White House, would explain the essence of the “southern strategy” to an academic researcher:

You start out in 1954 by saying ‘nigger, nigger, nigger’. By 1968, you can’t say ‘nigger’ – that hurts you. Backfires. So you say stuff like, uh, forced bussing, states’ rights and all that stuff. You’re getting so abstract now you’re talking about cutting taxes, and all these things you’re talking about are totally economic things and a byproduct of them is blacks get hurt worse than whites. And subconsciously maybe that is part of it. I’m not saying that. But I’m saying that if it is getting that abstract, and that coded, that we are doing away with the racial problem one way or the other. You follow me – because obviously sitting around saying ‘We want to cut this’ is much more abstract than even the bussing thing, and a hell of a lot more abstract than ‘nigger, nigger’.

The article details how Nixon refined the strategy and Reagan perfected it. It also describes  the way in which the GOP “establishment” used that racism to distract from a more plutocratic agenda–engaging in a “bait and switch” operation that won elections and then ignored the base that delivered those victories.

Enter Donald Trump.

While the other Republican contenders keep their xenophobia within the bounds of acceptably cruel political discourse, Trump blows it out: his racist rants play like full-fledged operas compared to the dog-whistle stuff, shredding the finely honed code that’s worked so long and so well for the GOP establishment. But that’s why the base loves him; he feels their rage.

Paul Krugman has an abbreviated version of that same history in a recent New York Times column.

How does a party in thrall to a basically unpopular ideology — or at any rate an ideology voters would dislike if they knew more about it — win elections? Obfuscation helps. But demagogy and appeals to tribalism help more. Racial dog whistles and suggestions that Democrats are un-American if not active traitors aren’t things that happen now and then, they’re an integral part of Republican political strategy.

Krugman takes up where the Guardian leaves off, and completes the history of the southern strategy.

During the Obama years Republican leaders cranked the volume on that strategy up to 11 (although it was pretty bad during the Clinton years too.) Establishment Republicans generally avoided saying in so many words that the president was a Kenyan Islamic atheist socialist friend of terrorists — although as the quote from Mr. Rubio shows, they came pretty close — but they tacitly encouraged those who did, and accepted their endorsements. And now they’re paying the price.

For the underlying assumption behind the establishment strategy was that voters could be fooled again and again: persuaded to vote Republican out of rage against Those People, then ignored after the election while the party pursued its true, plutocrat-friendly priorities. Now comes Mr. Trump, turning the dog whistles into fully audible shouting, and telling the base that it can have the bait without the switch. And the establishment is being destroyed by the monster it created.

If we’re lucky, America won’t be destroyed in the process.

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The Persistence of Tribalism

I think I need to go back and reread Benjamin Barber’s Jihad vs. McWorld.

The cover of that paperback illustrated the conflict Barber was addressing: a woman in a full burka drinking a diet Pepsi. That one picture showed the conflict between globalization and tribalism.

Barber was exploring the conflict between consumer capitalism in a constantly shrinking, interconnected modern world and deeply-rooted “tribes”–cultures resistant to and threatened by modernization.

In the wake of the recent terrorist attacks in Istanbul and Brussels, it’s easy enough to point our fingers at the jihadists who believe they are defending their tribal cultures against encroaching global norms. These extremists pose a real challenge to civilization, and the best way to meet and defeat that challenge is by no means clear–not just because of the danger and mayhem they pose, but because there are troubling signs that many of our more “civilized” citizens are responding in kind.

Whatever else accounts for the electoral successes of Donald Trump, a major element has been his blatant appeal to white American tribalism–his willingness to “go there,” to draw stark lines between (a culturally and racially-defined) “us” and “them.” Proposals from Trump and Cruz to “patrol” Muslim communities, to build a wall between the United States and Mexico, the scornful rejection of civility and inclusiveness as “political correctness” all serve to remind us that Middle East jihadis aren’t the only groups responding viscerally to what they see as assaults on their worldviews.

Communication and transportation technologies, scientific and medical discoveries, the growth, productivity and interrelationship of the global economy–all of these advances hold enormous promise, if we can enlarge our concept of our tribes to include the other humans with whom we share the planet.

But right now, the signs are anything but auspicious.

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Words Fail–Edition Number Zillion…

Every day, it seems, Americans are waking up to new expressions of punitive hatefulness erupting in state legislative chambers, mostly but certainly not exclusively in the South.

From The New Civil Rights Movement, we learn that

Led by Republican Speaker Tim Moore (photo), Republican House lawmakers in North Carolina have just passed a sweepingly broad anti-gay bill in a special session called just for this one bill. The bill will void all local nondiscrimination ordinances. It will also mandate that all public accommodations ordinances, all minimum wage ordinances, and all employment discrimination ordinances come only from the General Assembly – state lawmakers – effectively banning any localities from protecting citizens in any of these areas.

The bill, HB 2, passed by a huge margin, 83-24, after less than three hours of debate and just 30 minutes of public comment.

HB 2 now heads to the Senate, who will take it up immediately.

It is expected to pass and Governor Pat McCrory, who called for the bill, is fully expected to sign it.

So–as long as we are striking back at LGBT citizens who have had the nerve to demand equal treatment before the law and the right to use a gender-identity-appropriate bathroom–let’s also pile on and punish the working poor, minorities, women….It is really hard to fathom what could impel an elected official to vote for a measure this hateful.

It’s worth noting that this North Carolina eruption is yet another illustration of the growing divide between urban and rural Americans; this special legislative session is a response to the passage of a nondiscrimination measure in Charlotte. In North Carolina–like other states, including Indiana–rural areas wield disproportionate influence in the statehouse.

It may also be that these lawmakers feel free to act on their bigotries because they are confident they will not have to defend their votes in a democratic election. After all, it can’t be coincidental that North Carolina is the most gerrymandered state in the country, and is currently embroiled in litigation over that fact, and over the state’s other assaults on voting rights.

I refuse to believe that this measure is an accurate reflection of North Carolina voter sentiment. This despicable behavior is what you get when the legislators choose their voters, rather than the other way around.

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