Invisible Infrastructure

When we hear the word “infrastructure,” most of us think of highways, bridges, airports, water mains….the physical apparatus built and paid for with tax dollars. And that’s accurate–so far as it goes. But most of us fail to recognize both the extent of the “public goods” we support and how essential they are to private enterprise.

In a recent issue of PA Times, the publication of the American Society for Public Administration (yes, I am a nerd), a contributor forcefully made the point that citizens are generally uninformed about the public goods they enjoy, and especially oblivious about how dependent they are on those goods. This expansive infrastructure is the “ecosystem” that supports commerce and business activity as well as our quality of life.

Elements of that ecosystem include clean air, clean public water supplies, street lights, food and drug safety, 911 services, police and fire protection, sewers and wastewater treatment facilities, interstate highways, education, national defense, a currency system, weather forecasting, disaster relief, registration systems for property, births and deaths, libraries, basic research and development, jogging trails, public parks, insurance of bank deposits, air traffic control, airports….the list goes on and on.

There is another “infrastructure” that makes civilization possible–the intellectual contributions of those who have gone before us. Today’s science and technology build on the discoveries of scientists long dead. We learn (okay, mostly we fail to learn) from the histories that have been recorded. We learn from research into the nature of our environments, both physical and social, and into experiments that have succeeded and failed. Etc.

I suppose it’s human to minimize the immense debt we owe to those who have provided the assets upon which even the most “self-made” build. But candidly, I find the preening “look at what I did all by myself” folks pretty insufferable.

And I find those who are unwilling to support that infrastructure, unwilling to “pay their dues,” immoral.

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Thou Shalt Not….

Remember that old bumper sticker that said something along the lines of “When they threw God out of the classroom, guns came in”?

Florida media report that police have broken up a stolen gun sales ring. it was operating out of Martin County, Florida’s Community Christian School.

 “Investigators went to the school and following several interviews, determined that one student had burglarized a home on six different occasions and stole five weapons from a safe.”

Money quote: The school is “praying for families who have been affected by this.”

I guess we should all be grateful the students involved weren’t left to the corrupting secular values of a public school classroom.

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Citizens United and Media Credibility

At a recent conference bewailing the loss of civility in political discourse (now there’s a lament for the ages), former Republican Congressman and current head of the NEA Jim Leach, was quoted on an allied concern: the role money has played in the decline of media credibility.

Leach connected our information infrastructure to Citizens United, saying corporate campaign money has harmed civil discourse in Washington and elsewhere. “Money is the elephant at the door in Washington,” Leach said. (The U.S. Supreme Court’s 2010 Citizens United decision, which defined corporations as individuals with First Amendment rights to free speech, is widely seen as facilitating negative political campaigning. There has been less focus on its effect on the availability of the accurate information on which citizens rely to participate in the political process.)

“Rather than conflate a corporation with a person, and money with speech, should not the focus be shifted to the transactional relationship inherent in speaking and listening?” Without limits on independent expenditures made by corporations, more money will be spent on negative attack ads for political campaigns that will further taint the tenor of the debate and erode the focus on real issues, Leach said.

“At one end, uncivil speech must be protected by the courts, but filtered by the public,” Leach said. “At the other, moneyed speech must not be allowed to weaken the voices of the people. The Constitution begins, after all, ‘We the People,’ not ‘We the Corporations.’”

A recent (May 27) issue of the New Yorker carries a perfect example of the behavior Leach indicts. 

The article reports on the fate of two documentaries. The first, by Alex Gibney, an Academy Award winning filmmaker, was called “Park Avenue: Money, Power and the American Dream.” It was scheduled to air on PBS on November 12th. The movie had been produced independently, in part with support from the Gates Foundation, and was intended to be an exploration of the growing economic inequality in America and a meditation on the often self-justifying mind-set of “the one per cent.” It focused on the lives of wealthy inhabitants of a very expensive apartment building in Manhattan.

Unfortunately for Gibney, one of the residents of the building was David Koch. Among other things, Koch was a member of the board of WNET, the New York PBS station, and was being solicited for a large contribution. It doesn’t take much imagination to predict how difficult the battle between journalistic ethics and money became–even at PBS. WNET offered Koch the opportunity to rebut the reporting, and ended up doing a “roundtable” immediately following the show, to facilitate a critique of its message.

At least that movie aired. Others–as the New Yorker piece reported–did not. Another documentary–this one about the influence of money on American politics after the Supreme Court’s 2010 decision in the Citizens United case, had been accepted by the Sundance Film Festival and would compete for Best Documentary. In the wake of “Park Avenue,” it lost its funding. Money not only talks–it silences opposing views, and suppresses unfavorable coverage.

Recently, the billionaire Koch brothers have expressed interest in purchasing a string of newspapers. Given their willingness to silence opposition and engage in propaganda, that’s a chilling proposition.

However benighted the decision in Citizens United, I doubt seriously that the Justices understood the dimensions of the Pandora’s box they were opening. We’re just beginning to see what happens when money manufactures “fact.”

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Job Creators or a Tale of Two Big Boxes

There are job creators, and then there are job creators.

Debates about economic policies tend to center on concerns about job creation. Corporate CEOs often argue that raising tax rates or the minimum wage will suppress hiring. (I’ve often wondered why we can’t just offer a tax credit for each job created, rather than keeping rates low and hoping that will translate into additional employment. But I digress.)

The question that is too seldom addressed is: what kind of jobs do we want to incentivize? Because all jobs are not equal–not from the standpoint of the employee, and not from the standpoint of the taxpayer.

A recent study released by Congressional Democrats underlines the issue. According to that study, Walmart’s wages and benefits are so low that many of its employees are forced to turn to the government for aid, costing taxpayers between $900,000 and $1.75 million per store. As Mother Jones reports,

Walmart’s history of suppressing local wages and busting fledgling union efforts is common knowledge. But the Democrats’ new report used data from Wisconsin’s Medicaid program to quantify Walmart’s cost to taxpayers. The report cites a confluence of trends that have forced more workers to rely on safety-net programs: the depressed bargaining power of labor in a still struggling economy; a 97 year low in union enrollment; and the fact that the middle-wage jobs lost during the recession have been replaced by low-wage jobs. The problem of minimum-wage work isn’t confined to Walmart. But as the country’s largest low-wage employer, with about 1.4 million employees in the US—roughly 10 percent of the American retail workforce—Walmart’s policies are a driving force in keeping wages low.

Businesses do not have to be conducted this way. Good jobs that don’t require public support are not inconsistent with  healthy profits. A recent Business Week article reports on the very different business approach taken by Walmart competitor Costco.

Despite the sagging economy and challenges to the industry, Costco pays its hourly workers an average of $20.89 an hour, not including overtime (vs. the minimum wage of $7.25 an hour). By comparison, Walmart said its average wage for full-time employees in the U.S. is $12.67 an hour, according to a letter it sent in April to activist Ralph Nader. Eighty-eight percent of Costco employees have company-sponsored health insurance; Walmart says that “more than half” of its do. Costco workers with coverage pay premiums that amount to less than 10 percent of the overall cost of their plans. It treats its employees well in the belief that a happier work environment will result in a more profitable company. “I just think people need to make a living wage with health benefits,” says Jelinek. “It also puts more money back into the economy and creates a healthier country. It’s really that simple.”

Despite its higher wages and more generous benefits, Costco nets more per square foot than Walmart.

I have increasing numbers of students who believe that all business enterprises are at worst evil and at best unconcerned with anything but the bottom line. They look at Walmart and the many businesses that emulate its rapacious approach; more recently they point to the employers who are cutting workers hours in order to avoid having to provide health insurance under the terms of the Affordable Care Act, and they note the huge disparities between the salaries of CEOs and their employees, and they see those behaviors as an inevitable result of market capitalism. It isn’t.

Costco and many, many other enterprises demonstrate that concern for workers’ welfare is entirely consistent with a healthy bottom line. The problem is not with our markets, it is with our culture, and with public policies that enable and reward despicable behaviors.

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Why Trust Erodes

A couple of days ago, I linked to an essay by David Frum, in which he encouraged “reform” of the current conservative movement, and professed to see some signs of that reform emerging. I hope he’s right, because this country desperately needs two responsible, reality-based political parties.

As Jonathan Chait put it recently:  “The radicalism of the current Republican Party – its ideological extremism, disdain for empiricism, the inability to share or modulate power – is, to me, the central problem in American life. In the long run, the resolution to nearly every policy problem depends on the GOP refashioning itself as a normal, non-pathological party.”

For specific examples of what Chait is referencing, see this post on “The Wonk Gap.”

In today’s world, governments must fashion policy in areas so complex that average voters simply cannot be expected to understand the underlying challenges or the proposed interventions; we increasingly need the expertise of the relevant specialists–policy wonks. And we need to be able to trust that those specialists are telling us the truth as they see it. When the experts are willing to place partisanship above honesty, when people who presumably know what they’re talking about are delivering fundamentally inconsistent messages, citizens either withdraw from the political arena or they choose to believe the experts who are telling them what they want to hear.

In either case, governance suffers.

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