Democrats – Sheila Kennedy

How Awful Are Hoosiers, Really?

Consider this a follow-up to yesterday’s “Extra” post.

I have written before about Indiana Democrats’ self-defeating attitudes and behaviors. A recent conversation with two very savvy political observers reminded me–again!– how incredibly unhelpful those negative attitudes are.

It’s a conversation I’ve had repeatedly. Acquaintances who are committed Democrats refrain from donating to Hoosier Democratic candidates because “they can’t win in Indiana.” Rather obviously, that becomes a self-fulfilling prophecy–if these candidates lack sufficient resources to compete, they will lose. (During that recent conversation, when I reminded my friends that Obama had won Indiana, one responded “Yes, but he put significant resources here.” Yes–with sufficient resources, Democrats can win Indiana. Duh.)

This year, as I have documented, the Indiana Democratic Party has nominated a statewide (non-gerrymander-able) slate of truly excellent candidates. They are capable, moderate, and–unlike their GOP opponents–sane. Meanwhile, the Republicans are running a ticket of out-and-out White Supremecist theocrats, men who are personally repugnant supporters of an exceptionally far-Right agenda: anti-choice, anti-gay, anti-public education, anti-environment…candidates who enthusiastically support positions that survey research confirms are at odds with the positions of most Hoosiers, Republican and Democrat alike.

So why, you might ask (I’ve certainly been asking) do people who clearly recognize both the merits of the Democratic candidates and the threats posed by the Republican ones still insist that Indiana voters will opt for the Republican ones?

During that last discussion, I finally came to understand the roots of that belief. (I’m slow.)

These same people–people who care about their neighbors, who understand and worry about the current assaults on the Constitution and civil liberties, who recognize the nuanced nature of policy disputes–apparently believe that a significant majority of Hoosier voters are ignorant and hateful.

Too many of my Democratic friends view all Hoosier Republicans–especially but not exclusively rural Republicans– as uneducated and politically unsophisticated, resentful of social change and suspicious of anyone who isn’t a White Christian. They see all Republicans as MAGA bigots, mired in a Fox “News” universe, dismissive of information inconsistent with their prejudices, and they conclude that efforts to inform or persuade them are useless. (This belief actually becomes a self-fulfilling prophecy: if the Democratic candidates lack resources to communicate their positions, many Hoosier voters will lack accurate information.)

I’m willing to concede that this picture of a committed racist rube accurately describes the base of today’s GOP–the MAGA folks who form the core of what has become Trump’s political party. But I refuse to believe that all Hoosier Republicans are cut from that same MAGA cloth. There are people who are relatively uninformed, but not hateful–many people who would reject the premises and promises of Project 2025 if they knew what those premises and promises really were.

The Democrats who are writing off Hoosier voters rather clearly believe that providing sufficient resources to disseminate accurate information widely around the state is a fool’s errand. They believe that the super-majority in our deplorable state legislature is an accurate representation of unenlightened, racist and misogynistic Hoosier sentiment–after all, those voters elected that super-majority. (They forget the substantial effects of gerrymandering and vote suppression.)

The only thing that would change the minds of these dismissive observers of Indiana politics is an election that upends their smug conclusions–but their unwillingness to fund their preferred candidates adequately makes such an election result infinitely more difficult.

I’ve been working with both the McCormick and McCray campaigns, and I can report that both are well-organized, strategically sound, and–most important–right on all the issues that matter. I am absolutely convinced that–with adequate funding–they can inform voters statewide of the enormous differences between them and the GOP’s Christian Nationalist ticket, and that adequate dissemination of that information would lead to victory.

I guess it’s up to those of us in Indiana who are politically “unsophisticated” to step into the breach. Those of us who care deeply about women’s access to abortion, civil rights for our gay friends and neighbors, support for public education, and the other immensely important rights threatened by today’s far far Right GOP candidates need to contribute as much as we can so that the good guys have enough to communicate their message.

They don’t need as much as their opponents; they just need enough.

Unless, of course, my “sophisticated” friends are right, and a majority of my fellow Hoosiers are contemptible.

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Very Interesting…

I am aware of a number of upper-income folks who justify their continuing support of Donald Trump by asserting that–“like most Republicans”– he has been better for their portfolios. That has always struck me as a poor excuse for ignoring what another Trump Presidency would do to the country (and for that matter, the world), but I’ve chalked it up to selfishness and (misunderstood/shortsighted) self-interest.

Evidently, I should have attributed it to ignorance, because it turns out that–when it comes to investment returns– Democratic administrations have greatly out-performed Republican ones.

As I was reading a recent issue of the Indianapolis Business Journal–a publication that covers local government far more thoroughly than the Indianapolis Star, by the way–I came across the regular column by Mickey Kim devoted to giving investment advice. This particular column was titled “Keep Calm and Don’t Mix Politics with your Portfolio,” and it was an effort to persuade people not to base their investment strategies on partisanship rather than performance, not to suggest that one party was better than the other for investment.

But the data was eye-opening, at least for me. (I readily admit to chosen ignorance about all things investment.)

My friend Sam Stovall, chief investment strategist for Wall Street research firm CFRA, dissected price changes for the S&P 500 going back to 1945 based on election results.

Republican administrations are generally viewed as “pro-business,” and conventional wisdom is that stocks do better with a Republican in the White House. There has, indeed, been a huge difference in returns during Democratic versus Republican administrations. However, as is often the case, conventional wisdom is wrong. Past performance is no guarantee of future results, but Stovall calculated from Harry Truman’s inauguration on April 12, 1945, through March 15, 2024, the average annual return for the S&P 500 was 44% higher with Democrats in the White House (9.5% vs. 6.6% during Republican administrations).

Further, according to Invesco and Haver Analytics, hypothetically speaking, the best-performing portfolio from 1900 to 2023 was the “bipartisan” one that stayed fully invested in the Dow Jones industrial average (a price-weighted index—cannot be invested in directly—of the 30 largest, most widely held stocks traded on the New York Stock Exchange) during both Democratic and Republican administrations. Again, past performance is no guarantee of future results, but starting with $10,000, this portfolio grew to almost $9.9 million.

Conversely, a “partisan” portfolio, invested only during Democratic or Republican administrations, underperformed by millions of dollars. The same $10,000 invested only during Democratic administrations grew to about $528,000. Invested only during Republican administrations, the initial $10,000 grew to a bit less than $181,000.

Kim concluded this analysis by reiterating his intended message, that “there can be a huge cost to letting a partisan political storm crash your portfolio.” His sound advice: “Develop an investment plan based on your long-term goals and stick to it. Your financial future will depend far more on how much you save and invest, not who wins the election.”

I am in no position to quibble with that advice, which strikes me as quite sound, but it certainly does raise a question about those upper-income Trump apologists. I suppose it’s possible that their portfolios grew under Trump, but given the truly excellent performance of the economy during the Biden Administration, it’s quite likely they’ve done as well or better with a Democrat in the White House. Is their purported reliance on portfolio performance an evasion intended to mask the actual reasons they support Trump (racism, misogyny, isolationism…)? Or do they actually not understand the significance of the data I’ve cited above?

Perhaps they’ve simply and unthinkingly accepted the old “country club Republican” belief that the GOP is the party looking out for the interests of the business community, while Democrats are “giving away” tax dollars via welfare and government spending. If so, someone needs to explain to them that both the short and long-term interests of the business community include such things as social stability, a well-maintained infrastructure, an educated and adequate workforce, and a population with enough disposable income to support robust consumer demand.

As investors are often admonished, past performance is no guarantee of future results. But the odds would certainly seem to be in the Democrats’ –and Biden’s–favor.

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A Bill Passes. Then What Happens?

Making policy–passing laws–requires a series of decisions. It begins with (and is often stymied by failure to reach) an agreement on the existence, nature and extent of the problem to be solved. When lawmakers do see the same problem, and agree on why something is a problem, they then have to come to some consensus on what action is needed to solve or ameliorate that problem. Then–in our age of “privatization”–they need to determine who should enforce the agreed-upon remedy. Should those empowered to deliver the new service or oversee compliance with the newly-passed regulation be government employees, or should that obligation be vested in the private or non-profit sector?

And finally, once the problem has been identified, a solution agreed upon, the means of enforcement determined, and the law passed, a sound policy process will vet how the new law performs–evaluate its effectiveness in actually addressing the original problem, and noting–and ideally correcting–any negative unanticipated effects.

This process will inevitably involve debate and discussion, and in an era of technological and social complexity, creating sound policy increasingly requires careful attention to sources of specialized expertise in the matter at hand.

Unfortunately, today’s Republicans and Democrats can’t even agree on what time it is, let alone what our actual problems are. The GOP buffoons who increasingly dominate America’s legislative chambers ignore virtually all the “grunt work” needed for sound policymaking. When they aren’t fundraising, preening for Faux News cameras or producing television ads blaming “others” for real and imagined social problems, they are using legislative tactics to block rather than produce policies.

(This is frustrating for all serious citizens, of course, but I spent the last 21 years of my career teaching policy, and watching the total abandonment of actual governance in favor of performative antics is beyond painful.)

It’s one thing to outline the steps of the policy process, as I’ve done above. But just as a (non-AI) picture can be worth a thousand words, a real-life example can be more illustrative than an abstract process outline. So let’s look at a tax bill that Trump still touts as evidence of…something.

As the Institute on Taxation and Economic Policy explains:

The tax overhaul signed into law by former President Donald Trump in 2017 cut the federal corporate income tax rate from 35 percent to 21 percent, but during the first five years it has been in effect, most profitable corporations paid considerably less than that. This is mainly due to loopholes and special breaks that the 2017 tax law left in place and, in some cases, introduced. Corporate tax avoidance occurs because Congress allows it to occur, and the Trump tax law in many ways made it worse.

Tax policy is one of many intractable dividing lines between Republicans and Democrats, and it is a given that the tax overhaul of 2017 was not a product of agreement over the nature of the problem. Republicans think the problem is that businesses have to pay too much; Democrats think the problem is that wealthy folks aren’t paying their fair share. Clearly, a tax cut for profitable businesses is not the result of agreement on the nature of the problem. But the linked report focuses on the part of the policy process that both parties–and the Keystone Kops in Congress–routinely ignore.

How is it working?

The Institute looked at taxes paid by profitable corporations.

The 342 companies included in this study paid an average effective income tax rate of just 14.1 percent during this five-year period, almost a third less than the statutory rate of 21 percent.
Nearly a quarter of the corporations in this study (87 companies) paid effective tax rates in the single digits or less during this five-year period.
Of these, 55 (16 percent of the total 342 companies) paid effective rates of less than 5 percent. This is particularly striking given that all these companies were profitable for at least five years consecutively. Companies paying less than 5 percent include T-Mobile, DISH Network, Netflix, General Motors, AT&T, Bank of America, Citigroup, FedEx, Molson Coors, Nike, and many others.
Twenty-three corporations paid zero federal tax over the five-year period despite being profitable in every single year. And 109 corporations paid zero federal tax in at least one of the five years.
At the other end of the spectrum, 50 corporations paid effective tax rates of more than 21 percent, but most of these companies were also the beneficiaries of large tax breaks because they were paying taxes from previous years that they delayed using depreciation breaks.

One obvious “fix” for this would be passage of the global minimum tax negotiated by the Biden administration that’s currently being blocked by GOP lawmakers more interested in currying favor with special interests than engaging in the policy process.

Americans deserve better.

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If Only…

There are so many reasons to vote straight Blue this November: to keep a dangerously insane man out of the Oval Office, to remove the “God Squad” from the House and Senate, to protect democracy and Separation of Church and State…and especially, to send an emphatic message that women will not meekly return to second-class citizenship.

You can undoubtedly come up with other reasons as well. But a bill just filed by the Democrats in the U.S. Senate may be the most important, because its passage would go a very long way to accomplishing several of those goals–and it won’t pass unless Democrats sweep the November election.

Per The Democracy Docket:

Earlier this month, U.S. Sens. Amy Klobuchar (D-Minn.) and Laphonza Butler (D-Calif.) introduced the Redistricting Reform Act of 2024, legislation that would make a slew of impactful changes to the congressional redistricting process nationwide.

The bill would set spell out comprehensive criteria for congressional redistricting including:

Banning partisan gerrymandering by prohibiting drawing maps that favor or disfavor any political party,

Ensuring compliance with the Voting Rights Act of 1965,

Providing an explicit right for private citizens to file legal challenges under this law,

Requiring that districts be drawn to represent communities of interest and neighborhoods to the extent possible,

Barring people, legislatures and states from asserting legislative privilege over lawsuits brought under the act,

Setting clear deadlines for when maps must be enacted and

Mandating that redistricting plans are subject to public comment in an open and transparent manner

Gerrymandering is the root of America’s current dysfunctions. When lawmakers can choose their voters rather than the other way around, we end up being ruled by a minority.

Gerrymandering–aka partisan redistricting–does more than skew election results. A lot more. And much of it goes unrecognized. Here in Indiana, for example, where partisan redistricting has carved up metropolitan areas and subordinated them to rural ones, gerrymandering has given us distribution formulas favoring rural areas over cities when divvying up dollars for roads and schools, among other inequities.

Even before the Dobbs decision, The Guardian connected gerrymandering to passage of radical abortion laws.

Georgia’s legislature responded to the state’s closely divided political climate not with thoughtful compromise but by passing one of the most restrictive abortion bans in the United States.

An April poll by the Atlanta Journal-Constitution found that 70% of Georgians support the landmark Roe v Wade decision that legalized abortion. The new state ban is opposed by 48% of Georgians and supported by only 43%. So why would the legislature enact such an extreme measure?

For that matter, why would Ohio, Alabama, Missouri and other states establish similar “fetal heartbeat” laws that are far more restrictive than their constituents support?

One important answer is gerrymandering: redistricting voting districts to give the party in power an edge – making it almost impossible for the other side to win a majority of seats, even with a majority of votes. Sophisticated geo-mapping software and voluminous voter data turned this ancient art into a hi-tech science when the US redistricted after the 2010 census.

Partisan redistricting is undemocratic no matter which party is doing it, but give credit where it’s due: the GOP has been far more adept at gerrymandering than the Democrats (probably because Republicans recognize that they are increasingly a minority party and must cheat in order to win). As the Guardian reported, gerrymandering has allowed the GOP to control state legislatures with supermajorities even when voters prefer Democratic candidates by hundreds of thousands of votes.

Gerrymandering nullifies elections and insulates lawmakers from democratic accountability.

Despite lacking any mandate for an extreme agenda in a closely divided nation, Republican lawmakers have pushed through new voting restrictions, anti-labor laws, the emergency manager bill that led to poisoned water in Flint, Michigan, and now, these strict abortion bans. Electorally, there’s little that Democrats can do to stop it.

In Ohio, the article pointed to “zero evidence” that voters held extreme opinions on abortion, and noted that polls showed more voters opposed to that state’s “heartbeat” bill than supportive of it. A University of Chicago study showed that barely half the total vote in Ohio gave Republicans more than 63% of the seats– simply because the maps were “surgically designed” to ensure that few seats would be competitive.

I have frequently posted about the multiple negative consequences of gerrymandering: among other things, it empowers extremists (as “real” elections move to the primaries) and suppresses the vote.

In non-referendum states like Indiana, the only way to get rid of gerrymandering would be via a U.S. Supreme Court decision or a federal law. The Court has repeatedly declined to act, so we need a Democratic win in November big enough to ensure passage of the Redistricting Reform Act.

That would go a long way toward protecting democracy–and women.

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That Elusive Center

I’m torn.

I recently agreed to serve on the advisory committee of ReCenter Indiana alongside several people I like and admire. It is a bipartisan organization with laudatory goals.

Convinced that “divisive Indiana politicians don’t represent Hoosier values,” the organization wants to elevate candidates who “represent the center, where most Hoosiers are.”

As ReCenter’s website argues, “the loudest and most extreme voices have drowned out sensible solutions,” a situation that has taken faith in government to an all-time low, making it critical that we restore “trust, respect, and accountability to our political system.”

Importantly, the organization defines “centrism” as behavior, not ideology– a willingness to engage in respectful dialogue with those holding different views, a willingness to negotiate in good faith and to compromise to achieve solutions that serve a majority of their constituents. It defines moderation as an attribute of character, not ideology.

The website identifies ReCenter’s values as

●      People over parties;
●      Results over rhetoric;
●      Patriotism over politics.

ReCenter’s political action committee intends to endorse candidates of both parties who display centrism/moderation defined in this way.

It is hard to argue with any of this, which is why I agreed to join the advisory committee. But I am increasingly concerned that the unprecedented nature of today’s American polarization will defeat these very reasonable–even noble– goals.

When I first became political “back in the day,” both of America’s major political parties were what I would describe as ideologically expansive. There were liberal Republicans and conservative Democrats, and although the GOP was essentially center-Right and the Democrats were essentially center-Left, there were few if any philosophical “litmus tests” determining partisan affiliation.

That has changed–and the change threatens to foreclose our ability to negotiate our differences in good faith.

There are two contemporary realities that I see as barriers to the laudable goals of ReCenter Indiana and a number of other well-meaning political organizations.

The first is the effective sorting of voters between a political party and a cult. A recent example was highlighted by Pew research. Pew found that Americans support the continued availability of medication abortion by a margin of nearly 2 to1. The report of that survey result, however, also noted a “stark divide in partisanship in Americans’ views of the issue.” Virtually every respondent who opposed abortion was a Republican.

It isn’t only abortion. Public opinion on a wide range of issues has found a significant majority of Americans holding a range of relatively progressive opinions–while those holding minority far Right and/or extremist positions are clustered in the GOP. It’s hard to escape the conclusion that–no matter how one defines “moderation” and “centrism,” it is rarely to be found in today’s GOP.

That doesn’t mean there are no moderate or reasonable people left in the party, and ReCenter’s mission to identify candidates rejecting extremism so that those moderate and reasonable people can vote for them–especially in primaries–would make perfect sense, if it wasn’t for a pesky second reality.

The cult that is the contemporary Republican Party is autocratic. It does impose litmus tests–and those tests require adherence to extremist and anti-democratic positions. The rare Republicans who put people over party and patriotism over politics are promptly ejected from positions of influence–Congresspersons Cheney and Kinzinger are gone, while Marjorie Taylor Greene, Paul Gosar and their ilk have increasing prominence in the House of Representatives and the GOP.

Here in Indiana, the legislature’s radical super-majority is firmly in the thrall of the rural White Christians who–thanks to gerrymandering– still elect them.

So–here is my dilemma: how do those of us who agree with ReCenter’s definition of moderation and centrism– those of us who applaud efforts to return our state and country to a saner, more civil politics–accomplish that? We live in a time when an organization formed to identify civil, reasonable candidates is likely to omit most Republicans–and a time when any that we do find are highly unlikely to influence the current trajectory of the GOP.

I am increasingly convinced that the only way America will emerge from its current divisions is a massive electoral defeat of the GOP, leading to its subsequent reformation or replacement. That conviction is at odds with the very laudable mission of ReCenter.

Several of the people who comment on this blog are obviously highly intelligent, articulate and creative, so I’d appreciate the posting of practical solutions to ReCenter’s challenges.

I shared the draft of this post with ReCenter‘s officers, and invited their response. It will post tomorrow.

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