A Different Kind of Economic “Bubble”

In my Media and Public Policy class last week we were discussing the ways in which the Internet has given us the ability to live in “reality bubbles” of our own choosing, when an older student made a perceptive observation. She pointed out that when she grew up in Martinsville, she’d been surrounded by a “bubble” of bigotry–she’d lived in a small community of homogeneous people who all thought alike. In her case, the Internet had provided an escape from the bubble.

We all live in bubbles of one kind or another, and that ability to isolate ourselves from those with whom we do not share geography, religion, common interests and experiences can stunt our human empathy. When our distance from each other becomes too great, civility and self-government suffer.

Joseph Stiglitz is a Nobel-winning economist, and he has just written a book called The Price of Inequality, examining the effects of  the currently huge divide between the rich and everyone else on our ability to sustain a democratic government.

He isn’t sanguine.

According to Stiglitz, the vaunted American market is broken. It has been overwhelmed by politically engineered market advantages—special deals that economists call “rent-seeking.” The term refers to politically-achieved “exemptions” from the market that allow certain individuals to reap economic returns above normal market levels– profits derived from favorable political treatment rather than competitive success.

In The Price of Inequality, Stiglitz chronicles these blatant tax and spending giveaways–the special deals and corporate welfare enjoyed by big agriculture, big energy, and many, many others.

Stiglitz also argues that much of the rent-seeking that plagues our economy takes a more subtle form. In many cases, the production of a product produces what economists call “negative externalities.” These are costs that are incurred during the manufacturing or development process that end up being imposed on society rather than paid for by the producer and included in the price of the goods or services involved. The most commonly cited example would be a manufacturer who discharges his waste into a nearby waterway rather than properly disposing of it, shifting the costs of cleanup and disposal to others. Society pays for the pollution, and that cost is not included in the market price of the manufactured goods.

The bottom line is that markets don’t operate properly when some participants are in a position to game the system, and societies don’t operate properly when markets are rigged.

As he points out, one of the consequences to society is that when those at the top–the 1%–enjoy the best health care, education, and other benefits that come with greater wealth, they fail to realize that “their fate is bound up with how the other 99 percent live.”

They live in a bubble.

Speaking of Love…

A friend of mine takes some sort of twisted delight in sending me the Indiana Family Institute’s newsletters. I think he just enjoys my incredulous reactions.

The latest one was filled with “the usual suspects.” Planned Parenthood is prowling the state killing babies, the poor economy is another consequence of our departure from morality–or something. And of course, allowing same-sex couples to marry is no different from incest or pedophilia.

Really?

Are people really unable to distinguish between a relationship that rests on the mutual love and desire of willing, consenting adults and those in which a person in a position of power abuses that power to exploit someone younger and/or weaker?

I’m not a fan of government intrusion into private, consensual relationships. If you and your significant other get your kicks hanging from the chandeliers or making love in wet suits, it really isn’t the business of the state to intervene. If, on the other hand, realizing your fantasies requires the “participation” of children under the age of consent, government has the duty and obligation to prevent that. The difference isn’t that hard to see.

Those who insist that same-sex marriage is a slippery slope to a hellish society in which marriage itself has lost all value have been making that argument at every social turn. Divorce would destroy the family. Women working outside the home and birth control would thwart God’s plan.

These attitudes are part of a fantasy world–a remembrance of imagined times past when children weren’t born out of wedlock, grandma and grandpa’s marriage lasted sixty glorious years, and grandpa went to work every day to support a passel of kids (none of whom, of course, were gay). As social scientists remind us, that wasn’t the way it ever was. At the turn of the last century (1900), thanks to death and (common) desertions, the average marriage lasted 12 years. Fully a third of women were pregnant at the time of their very early marriage. Men had no legal obligation to support their children until the 1920s, and plenty didn’t.

Every social change makes people uncomfortable. Those who simply can’t deal with the discomfort–those who feel diminished by changes in the culture and by efforts to the include others at the table–are sad reminders of how fragile the human ego can be, and a cautionary tale about how and why people hate.

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A Peek in the Mirror

Ross Douthat is a conservative columnist at the New York Times (given David Brooks’ frequent forays into non-ideological common sense, it would not be inaccurate to say he is THE conservative columnist there). This morning’s column displayed an interesting combination of obtuseness and dawning recognition of political reality.

Douthat joins other conservatives who simply cannot fathom why Romney isn’t walking away with this election. He goes through several possible reasons–identifying “villains” like the “liberal education establishment” that has shifted the culture to the left–before settling on the likely culprit. And that culprit is…George W. Bush! He’s the one who destroyed the party’s brand!

Now, Bush clearly deserves a good deal of blame for the electorate’s distrust of GOP competence. But nowhere does Douthat suggest that the ham-handed Romney campaign with its wooden candidate might have something to do with the current status of the race. And only at the very end of his column does he grudgingly admit that the party doesn’t seem to have learned anything from the disaster in Iraq and the rape of the middle class by the bankers and other Masters of the Universe.

Conventional political wisdom tells us that “it’s the economy, stupid!” So Douthat and other conservative pundits are mystified by the increasing likelihood of a second Obama term.  What seems to have escaped them is yet another timeworn political adage: “you can’t beat something with nothing.”

You can’t beat a sitting President with a deeply flawed candidate whose only persuasive argument is that he isn’t Obama. And you can’t beat a party that reflects the ideas and aspirations of a diverse and ever-changing electorate with a party composed mainly of rigidly ideological old white guys.

As the GOP keeps reminding Obama, you can’t blame George W. Bush for everything.

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Getting It Backward

In a recent article about the experiences of gay Supreme Court clerks, I came across the following paragraphs:

Justice Antonin Scalia, joined by Rehnquist and Justice Clarence Thomas, has authored some of the most caustic dissents against gay legal rights. In his dissent in Lawrence v Texas, Scalia said the majority had “signed on to the so-called homosexual agenda … directed at eliminating the moral opprobrium that has traditionally attached to homosexual conduct.”

Asked last month in an interview about his dissents in past gay-rights cases, voiced from the bench as well as in his written opinions, Scalia said he was merely reading the Constitution, which he says does not cover a right to same-sex relations: “Where does it come from?” he said. “This is a trendy view of the current society elite. It’s not right to impose it on everybody else. It’s a democratic question. If you want to permit homosexual sodomy, then pass a law.”

This betrays a profound misreading of the Constitution and our most basic approach to the role of government–a misreading that Scalia himself would scorn in a different context.

One of the very few things the Tea Party folks get right is their insistence that rights precede government. Their formulation is that rights are “god-given”–I won’t go that far, but I agree with the Founders that humans have rights simply by virtue of being human, that we are born with “inalienable” rights. The Bill of Rights is a list of actions that government is forbidden to take—actions that would violate those antecedent rights.

The language in the Ninth and Tenth Amendments–amendments that Scalia the “textualist” rarely mentions–is pretty explicit on the point, providing that failure to “enumerate” a right in the preceding Amendments is not to be taken as evidence that the right was not protected. That language was included in order to calm the fears of folks like Alexander Hamilton, who argued that the government of delegated powers that the Founders had created had been given no power to infringe fundamental liberties, and worried that a written Bill of Rights would inevitably omit some important ones.

The Constitution doesn’t explicitly protect a right to have children, or a right to travel, or any number of other rights the Court has had no difficulty recognizing as protected. We would rightly consider it absurd if a Justice of the Supreme Court said something like “If you want to allow people to have children, pass a law.” A majority of the Court–unlike Scalia–understands that we don’t comb through the Constitution to find out whether government, in its infinite wisdom, has conferred a particular right on We the People.We look to the Constitution to see whether government has been given the right to interfere with a particular liberty.

And I don’t find anywhere in the Constitutional history or text where government is given the power to decide who has human rights.

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