Tag Archives: economy

Family Values

What are “family values?”

To hear Republicans describe them, family values are a traditional, a backward-facing insistence on sexual “purity” (for women) and heterosexuality: mom in the home watching the children (no pre-school or day care), gays in the closet, no access to abortion. Occasionally, there will be a nod to the importance of dad’s fidelity, but that gets awkward these days, given GOP allegiance to a male sexual predator.

Democratic policies illustrate a very different approach to valuing families.

For one thing, Democrats emphasize job creation, so that families can adequately care for the children they may–or may not–choose to have. (On that score, the GOP’s performance has been dismal: during the DNC, Bill Clinton noted that, since 1989, America has created about 51 million new jobs. Fifty million were created during Democratic administrations, one million under Republicans. This jaw-dropping statistic turned out to be true, albeit slightly misleading.)

Even if you discount the importance of a robust economy to the health of the American family, a glance at the policies pursued by the parties confirms that Democrats are far more family-friendly. Nicholas Kristof recently made that case. Calling Republican efforts to paint themselves as the “pro-family” party “chutzpah,” Kristof wrote

Children are more likely to be poor, to die young and to drop out of high school in red states than in blue states. The states with the highest divorce rates are mostly Republican, and with some exceptions like Utah, it’s in red states that babies are more likely to be born to unmarried mothers (partly because of lack of access to reliable contraception).

One of President Biden’s greatest achievements was to cut the child poverty rate by almost half, largely with the refundable child tax credit. Then Republicans killed the program, sending child poverty soaring again.

Can anything be more anti-child?

Well, maybe our firearms policy is. Guns are the leading cause of death for American children and teenagers, largely because of Republican intransigence and refusal to pass meaningful gun safety laws.

It’s because of the G.O.P. that the United States is one of only a few countries in the world without guaranteed paid maternity leave. Republicans fought universal health care and resisted the expansion of Medicaid; that’s one reason a child in the United States is three times as likely to die by the age of 5 as a child in, say, Slovenia or Estonia.

Kristof also noted several of the anti-child policies advanced in Project 2025, including ending Head Start–which has been a lifeline for low-income children– and dismantling the Department of Education.

Banning abortion and requiring women to give birth whether or not they can afford to feed and clothe a child is hardly “pro family”– even ignoring the fact that when women with dangerous pregnancies cannot access adequate care, they often die, leaving existing children motherless. And Republican extremism on abortion and birth control has led to obstacles to in vitro fertilization–for some families, the only avenue to producing those children Republicans want women to keep turning out.

Kristof also recognized the importance of the economy in supporting families. If marriage rates are important–and he agrees that they are–the evidence of economic influence is compelling.

Union membership among men raises their marriage rates, for example, apparently because they then earn more money and become more stable and appealing as partners. But Republicans have worked for decades to undermine unions.

And while marriage is important, so is access to divorce. Before easy access to divorce, large numbers of women were trapped in violent marriages that terrorized them and their children. (JD Vance is on record counseling women to remain in such marriages.) As Kristof notes,

One careful study by the economists Betsey Stevenson and Justin Wolfers found that the introduction of no-fault divorce in America was associated with about a 20 percent reduction in female suicides, at least a 25 percent reduction in wife-beating and an apparent decline in husbands murdering wives.

Which raises the question: can an anti-women party be pro family values?

In this policy arena–as in so many others–the fundamental difference between today’s GOP and the Democratic Party really does get back to dramatic differences in values. That’s why calls to “bridge our differences” and “achieve compromise” ring so hollow. If the debate is about the best way to achieve result X–say, feeding hungry children–then we can absolutely come to some sort of mutual agreement. But when one party wants to feed children and the other party doesn’t, compromise isn’t likely. 

Americans aren’t divided over policy; we are divided over values–and not just family values.

 
Comments

We Need To Listen To Joseph Stiglitz

Joseph Stiglitz and Paul Krugman are my two favorite economists–probably because, despite both being Nobel Prize winners– both of them are able to explain their conclusions in language I can (mostly) understand, and because those conclusions usually strike me as eminently reasonable.

Stiglitz recently took on the neoliberalism that has characterized American governance since Reagan. Neoliberalism has been described as an economic system generally opposed to the provision or expansion of government safety nets, and highly skeptical of regulation, extensive government spending, and government-led countercyclical policy.

As Stiglitz notes,

On one side of the economic debate are those who believe in largely unfettered markets, in which companies are allowed to agglomerate market power or pollute or exploit. They believe firms should maximize shareholder value, doing whatever they can get away with, because bigger profits serve the common good.

The most famous 20th-century proponents of this low-tax/low-regulation shareholder-centric economy, often referred to as neoliberalism, are Milton Friedman and Friedrich Hayek. These Nobel Prize-winning economists took the idea beyond the economy, claiming this kind of economic system was necessary to achieve political freedom.
The strongest argument advanced by neoliberals is that economic freedom translates into political freedom. As Stiglitz points out, however, “not quite.”
We’ve now had four decades of the neoliberal “experiment,” beginning with Ronald Reagan and Margaret Thatcher. The results are clear. Neoliberalism expanded the freedom of corporations and billionaires to do as they will and amass huge fortunes, but it also exacted a steep price: the well-being and freedom of the rest of society…
Friedman and his acolytes failed to understand an essential feature of freedom: that there are two kinds, positive and negative; freedom to do and freedom from harm. “Free markets” alone fail to provide economic stability or security against the economic vagaries they create, let alone allow large fractions of the population to live up to their potential. Government is needed to deliver both. In doing so, government expands freedom in multiple ways.
Stiglitz’ basic argument is that the “Road to Serfdom” isn’t paved by governments that do too much; loss of freedom–serfdom– is a consequence of governing that does too little. He points out that populist nationalism poses a greater threat in countries like Israel, the Philippines and the United States than it does in in Sweden, Norway and Denmark. In those Scandinavian countries, high-quality public education, strong unemployment benefits and robust public health provide an economic floor that shields citizens from what he calls the “common American anxieties over how to pay for their children’s education or their medical bills.”
Discontent festers in places facing unaddressed economic stresses, where people feel a loss of control over their destinies; where too little is done to address unemployment, economic insecurity and inequality. This provides a fertile field for populist demagogues — who are in ample supply everywhere. In the United States, this has given us Donald Trump.
We care about freedom from hunger, unemployment and poverty — and, as FDR emphasized, freedom from fear. People with just enough to get by don’t have freedom — they do what they must to survive. And we need to focus on giving more people the freedom to live up to their potential, to flourish and to be creative. An agenda that would increase the number of children growing up in poverty or parents worrying about how they are going to pay for health care — necessary for the most basic freedom, the freedom to live — is not a freedom agenda.
Champions of the neoliberal order, moreover, too often fail to recognize that one person’s freedom is another’s unfreedom — or, as Isaiah Berlin put it, freedom for the wolves has often meant death to the sheep. Freedom to carry a gun might mean death to those who are gunned down in the mass killings that have become an almost daily occurrence in the United States. Freedom not to be vaccinated or wear masks might mean others lose the freedom to live.
Stiglitz provides examples of the various ways government regulation can enhance, rather than impede, individual freedom, and he ends by defining what he calls “progressive capitalism” (what I would call the “mixed economy.”) The goal of any economic system ought to be the creation of a broadly shared prosperity. The Isaiah Berlin quote captures the essential problem we face in today’s crony capitalist economy: we have a government that has been solicitous of the freedom and well-being of the wolves, and we’ve ignored the negative effects on the sheep.
Only government can (1) provide a social and political infrastructure accessible to all, and (2) prevent the wealthy and powerful from dominating and harming others. Neoliberalism fails on both counts.
Comments

Let’s Talk About Economic Performance

One of the recurring questions on presidential polls asks respondents for their perceptions of economic performance.
Although Kamala has bested Trump in a couple of recent polls, it has really rankled me that so few Americans have recognized and/or appreciated either the damage Trump did to the economy or the Biden administration’s incredibly successful management of it–management that financial markets and economists acknowledge was masterful, and brought the U.S. out of the pandemic downturn faster (and better) than any other country.
Knowledgable observers compare Biden’s performance to that of FDR. He will go down in history as one of America’s most consequential Presidents. In my humble opinion, the lack of popular recognition of his performance is attributable to his relative lack of oratorical skills–if Biden had the oratorical gifts of an Obama, perhaps a general public fixated on celebrity, salesmanship and hype (and too lazy to consult evidence and data) would have appreciated the extent of his administration’s accomplishments.
The Democratic convention got underway Monday, and in his speech, Biden justifiably reminded listeners of his “greatest hits.” In a column about the convention and the speech, Jennifer Rubin focused on Biden’s economic and foreign policy performance, noting the historic pieces of legislation Biden managed to pass even when the House of Representatives was in the hands of a partisan–and looney– GOP: measures on infrastructure, microchip manufacturing, and green energy investment. Cost controls on insulin and a variety of prescription drugs for Medicare patients. A massive operation to immunize Americans against the coronavirus, despite what Rubin called–accurately– “irrational and destructive” Republican opposition. That operation saved thousands of lives in addition to allowing the U.S. economy to recover. 

These domestic successes accompanied equally impressive foreign policy accomplishments: “repairing and expanding NATO, arming Ukraine, reestablishing the United States’ credibility on the international stage, new and reinvigorated alliances to check China’s power).”

Kamala Harris has been part of the Biden administration, and can be expected to continue the policy approaches that have been so successful. There will be some “tweaks,” but she has administration “bragging rights.” She is running on four years of demonstrated, excellent performance.

So, you might ask, what are Donald Trump’s “bragging rights?” My sister recently listed them, and seeing them all in one list was–shall we say–edifying:

First President in history to serve a full term and increase the deficit every year he was in office.

First President in history to maintain a debt to GDP ratio over 100% for his entire term

Highest annual budget deficit.

Most added to the national debt in a single term.
Most new unemployment claims.
Largest single day point drop in the history of the Dow.
First President in almost a century to lose jobs in his first term.
Longest government shutdown in history (and he did that while his own party controlled both chambers of Congress).
In addition to that dismal economic performance, Trump was also the first President to lose the popular vote twice, the first to maintain a net negative approval rating for his entire term, first to be impeached twice (with bipartisan support for his conviction after both impeachments) and, as we know, the President with the most indictments, guilty pleas, and criminal convictions of members of an administration.
The first to be a convicted felon.
The only people who cheered Trump’s economic policies were the super-rich, who benefitted from his tax cuts–cuts that placed the tax burden squarely on the middle class, and further enriched the wealthiest Americans.
You know what to do. VOTE BLUE.
Listen to the nuns….
Comments

I Know Facts Don’t Matter…

Talk about “sucking all the oxygen out of the room…” The four indictments of Trump have consumed most of the media, masking what would otherwise be a greater emphasis on administration actions and policies, and overwhelming what ought to be applauded as the enormous success of “Bidenomics.”

The Inflation Reduction Act (IRA) is one year old; it is central to “Bidenomics.” A recent Treasury Department analysis found that it has incentivized unusually strong business investment–investment Axios recently called a “tailwind for economic growth.”

Together with the bipartisan Infrastructure Law and the CHIPS and Science Act, the IRA has especially spurred investments in manufacturing and clean energy. According to Treasury officials, evidence shows that private investment has held up, even in the face of increases in interest rates. And the report also noted that most counties where IRA-related investments have been announced are areas where college graduation rate, employment and wages are lower. In other words, Republican, largely rural areas. 

As Heather Cox Richardson noted in a recent daily Letter, 

The IRA was the eventual form President Joe Biden’s initial “Build Back Better” plans took. It offered to lower Americans’ energy costs with a 30% tax credit for energy-efficient windows, heat pumps, or newer models of appliances; capped the cost of drugs at $2,000 per year for people on Medicare; and made healthcare premiums fall for certain Americans by expanding the Affordable Care Act. 

By raising taxes on the very wealthy and on corporations and bringing the Internal Revenue Service back up to full strength so that it can crack down on tax cheating, as well as saving the government money by permitting it to negotiate drug prices with pharmaceutical companies, the IRA was expected to raise $738 billion. That, plus about $891 billion from other sources, enabled the law to make the largest investment ever in addressing climate change while still bringing down the federal government’s annual deficit.

“This is a BFD,” former President Barack Obama tweeted a year ago.

It is a “BFD,” and it is extremely frustrating that reporting on its effects has been smothered by a combination of “it bleeds so it leads” reporting and the massive amounts of propaganda “flooding the zone” ala Bannon.

The law has driven so much investment in U.S. manufacturing that the CEO of U.S. Steel recently suggested renaming it the “Manufacturing Renaissance Act.” Manufacturers have been returning previously off-shored production to the U.S., bringing supply chains back to the U.S. And as Richardson emphasized,

These changes have meant new, well-paid manufacturing jobs that have been concentrated in Republican-dominated states and in historically disadvantaged communities. 

The IRA has also been enormously consequential to the fight to tame climate change.

Scientists Alicia Zhao and Haewon McJeon, who recently published an article in Science, today wrote that the IRA “brings the US significantly closer to meeting its 2030 climate target [of cutting greenhouse gas emissions to 50–52% below 2005 levels], taking expected emissions from 25–31% below 2005 levels down to 33–40% below.”

 Republican presidential candidates have—predictably–refused to credit the act with these results; Richardson quoted former South Carolina governor Nikki Haley, who called the IRA  “a communist manifesto,” although, with their usual hypocrisy, “Republicans have been eager to take credit for IRA investments in their districts without mentioning either that they voted against the IRA or that they are still trying to repeal it.”

The Environmental Defense Fund recently issued a statement rebutting several of the Republican misrepresentations–okay, lies–about the IRA. The organization noted the difficulty of getting factual information out:

The truth takes about six times as long to reach 1,500 people as false stories do. Six. Times. Longer.

And this is from a study that is a few years old, before the global pandemic and the 2020 U.S. election — events that caused an explosion of lies online by Bad Actors.

A simple google search brings up dozens of reports from highly credible and nonpartisan sources, confirming the truly massive economic and environmental benefits triggered by the IRA, and the fact that those benefits are being felt in parts of the country that have previously been left behind.

Those reports won’t reach the millions of Americans glued to Faux News and its clones, or the other millions who have turned off the news because they no longer know what or who to believe–a situation that explains Biden’s low approval numbers.

My middle son said it best. In a conversation a while back, he said “Biden is the first President I’ve voted for who vastly exceeded my expectations.”

To quote Barack Obama, Biden’s Presidential performance has been a BFD. Too bad so few Americans understand that.

Comments

Joe Biden

Let me begin this post with an admission: I am older than Joe Biden, so I know a little something about the diminishing energy levels that accompany aging. I sometimes (okay, often) blank on words. On the other hand, I have a significant well of life experience to draw on, and so far, at least, I’m reasonably confident that the lessons of that lifetime have more than compensated for the relatively minor deficits of aging.

And I am over the constant media handwringing about Biden’s age. 

Sure, given the challenges of aging, I wish Biden was younger–but after looking at what he has accomplished over the past three years by drawing on his lifetime of political and governmental experience, I realize that significant trade-offs would be involved. (Unlike Trump–who is only 4 years younger– Biden spent his time acquiring the knowledge and skills that have made him a very consequential President.)

In the last three years, America’s economy has added more than 13 million jobs—including nearly 800,000 manufacturing jobs. We’ve unleashed a manufacturing and clean energy boom. In 2021 and 2022, more than 10 million applications were filed for new small businesses—the strongest two years ever recorded.  Since the pandemic, America has had the strongest growth of any leading economy in the world. Inflation has fallen for 11 straight months.

As my middle son observed, “Biden is the first President I’ve voted for who has exceeded my expectations.”

And as an article in the New Republic argues, there needs to be more recognition of the skills Biden brought to the job.

Nobody seems to have noticed this, but over the course of the spring, the country’s four leading freight rail carriers agreed to grant the vast majority of their workers paid sick days.

Everybody remembers what happened last December. The workers threatened to strike over such days, among other issues. President Biden, generally very friendly toward labor, made it illegal for the workers to strike. He was criticized by unions and workers and fellow Democrats and liberal media outlets, this one included….

When the workers prevailed, the International Brotherhood of Electrical Workers  explicitly acknowledged that the Biden administration had

played the long game on sick days and stuck with us for months after Congress imposed our updated national agreement. Without making a big show of it, Joe Biden and members of his administration in the Transportation and Labor departments have been working continuously to get guaranteed paid sick days for all railroad workers.

As the article argued, the administration needs to start “making  big show” of such accomplishments.

Biden has been a terrific president. The big legislation. The way he played Kevin McCarthy on the debt deal. The global leadership against Putin. The plain human decency restored to the White House after four years of self-obsessed thuggery. Oh—the 13 million jobs created since he took office, which is more jobs in 28 months than created under any other president, in all of our history, in a full four-year term.

As Jennifer Rubin recently wrote in the Washington Post, Biden has an economic record that has been working far better than most people anticipated but that the electorate doesn’t yet recognize.

 
The economy has created 13 million jobs, inflation has been more than cut in half, huge investments are being made in infrastructure and green energy, wage growth has begun to outpace inflation, the first drug price controls are going into effect and the biggest corporations will finally be forced to pay something in federal taxes. Yet polls show voters incorrectly think we are in a recession and remain negative about the economy.

As Robert Hubbell recently reminded us, “The constant hum of investigations into Trump’s many crimes is obscuring one of the great modern presidencies.”

Historians will look back in wonder at what Biden achieved in a presidency that began mid-pandemic before the smoke of a failed coup and insurrection had cleared. Despite those obstacles, his legislative record rivals or exceeds that of every president since FDR—a president who was mired in controversy throughout his tenure. 

The Biden Administration has a three-part vision: targeting investment, empowering workers, and promoting competition. That vision includes enforcing antitrust rules and allowing Medicare to negotiate for lower drug prices. (Recent results: cheaper insulin and real wage growth.)

As the New Republic reminds us,

Liberals have a list of 50 things they want government to do, and they want those things done fast and to completion. Conservatives have a list of about two things they want government to do: Cut taxes, and punish people they disapprove of morally. For a presidential administration, satisfying that first group is a lot harder than satisfying the second

As someone has pointed out, It’s not how old you are. It’s how you are old.

Comments