Tag Archives: Krugman

Working

A million or so years ago, I taught high school English. (This was back when women could prepare for jobs as secretaries, nurses or teachers–as my father put it, “in case your eventual husband dies.” I couldn’t type well, and the sight of blood made me faint–ergo, I would teach.)

I still remember a poem from an anthology I used; a person sat at the gate of a village and responded to questions from people entering the town. They’d ask: “what sort of people will I find here?” and the gatekeeper would inquire: “What sort of people lived in the village from which you come?”

If the answer was negative–“knaves and fools”–the gatekeeper would say “You’ll find the people here the same.” If it was positive–wonderful, kind folks–the gatekeeper promised “You’ll find the people here the same.”

As poetry goes, it wasn’t great. But as wisdom, it scored.

I’ve had several opportunities to revisit the undeniable truth that we humans see what we look for. I thought about it again when I read a recent Paul Krugman newsletter. We’ve all heard versions of the rant by Bernie Marcus with which he began his column:

Bernie Marcus, a co-founder of Home Depot, had some negative things to say about his fellow Americans in an interview last December. “Socialism,” he opined, has destroyed the work ethic: “Nobody works. Nobody gives a damn. ‘Just give it to me. Send me money. I don’t want to work — I’m too lazy, I’m too fat, I’m too stupid.’”

You’re naïve if you think his take is exceptional. Without question, rich men are constantly saying similar things at country clubs across America. More important, conservative politicians are obsessed with the idea that government aid is making Americans lazy, which is why they keep trying to impose work requirements on programs such as Medicaid and food stamps despite overwhelming evidence that such requirements don’t promote work — but do create red-tape barriers that deny help to people who really need it.

Krugman says he’s not under “the delusion that facts will change such people’s minds.” But he notes that people for whom facts do matter should know that America has, over the past year, conducted what might be termed a “huge test of the proposition that Americans have become lazy.”

They haven’t.

Krugman reminds readers that the American labor force is aging, which means we should be seeing a downward trend in the fraction of adults still working. (I will add that, given our unwillingness to admit immigrants with Brown skin who are mostly younger, that shouldn’t come as a surprise.) Despite that demographic decline, the data about labor force participation by Americans in their prime working years shows that such participation is higher now than it has been for 20 years.

Bobby Kogan of the Center for American Progress reports that if you adjust for age and sex, overall U.S. employment is now at its highest level in history — again, despite the lingering effects of the pandemic.

During the pandemic, of course, social welfare supports skyrocketed. If the “socialism” of such supports really made people lazy, the data fails to show it.

Krugman explains the benefits of the current “hot” labor market–including the fact that it has increased employment for members of marginalized groups. He then concludes:

The larger point is that despite what grumpy rich men may say, Americans haven’t become lazy. On the contrary, they’re willing, even eager, to take jobs if they’re available. And while economic policy in recent years has been far from perfect, one thing it did do — to the nation’s great benefit — was give work a chance.

Given the data, what explains the constant carping from employers who say they cannot find workers? A report in CNN says we have some 8.1 million job vacancies.

This problem is concentrated among America’s low-wage workforce, hitting restaurants, warehouses, manufacturers and the service industry. Many Republicans see these numbers and conclude the problem is unemployment payments that are, in their estimation, doled out to lazy people unwilling to work.

The real reason–confirmed by several studies–is low pay.  (Seventy percent of workers receiving federal aid work full-time, and are still so poor they qualify for government aid.) When  jobs are plentiful, workers have options. That’s bad news for the businesses that have felt entitled to employing and abusing a steady supply of poorly-paid workers.

Remember the gatekeeper in that poem?

Ask a Republican why he can’t find workers, and–like Marcus–he’ll tell you it’s because Americans are lazy and the government is too “socialist.” Ask a Democrat, and he’ll tell you it’s because employers are unwilling to pay a living wage. Our expectations frame our answers.

It makes policymaking very difficult…..

 

When Common Sense Became “Woke”

In a recent column, Paul Krugman traced the growing anti-environmentalism of the GOP. He noted that, in the 1990s, self-identified Republicans and Democrats weren’t that far apart in their environmental views, but that since 2008 or so, Republicans have become much less supportive of environmental initiatives. After considering several possible reasons for that devolution (“follow the money” among them), he concluded that

What has happened, I’d argue, is that environmental policy has been caught up in the culture war — which is, in turn, largely driven by issues of race and ethnicity. This, I suspect, is why the partisan divide on the environment widened so much after America elected its first Black president.

One especially notable aspect of The Times’s investigative report on state treasurers’ punishing corporations seeking to limit greenhouse gas emissions is the way these officials condemn such corporations as “woke.”

Wokeness normally means talking about racial and social justice. On the right — which is increasingly defined by attempts to limit the rights of Americans who aren’t straight white Christians — it has become a term of abuse. Teaching students about the role of racism in American history is bad because it’s woke. But so, apparently, are many other things, like Cracker Barrel offering meatless sausage and being concerned about climate change.

If this seems crazy, it’s because it is. Evidently, a substantial percentage of the American population is certifiably looney-tunes…

One of the most compelling explanations for that insanity was recently offered by Tom Nichols in the Atlantic. Nichols was opining about  political violence, or the possibility of another civil war. As he noted, however,  the actual Civil War was “about something.” Unlike today’s culture wars.

Compared with the bizarre ideas and half-baked wackiness that now infest American political life, the arguments between the North and the South look like a deep treatise on government.

Nichols writes that the “soldiers” fighting “wokeness” talk about “liberty” and “freedom,” but those are really just code words for personal grudges, racial and class resentments, and generalized paranoia.

What makes this situation worse is that there is no remedy for it. When people are driven by fantasies, by resentment, by an internalized sense of inferiority, there is no redemption in anything. Winning elections, burning effigies, even shooting at other citizens does not soothe their anger but instead deepens the spiritual and moral void that haunts them.

Donald Trump is central to this fraying of public sanity, because he has done one thing for such people that no one else could do: He has made their lives interesting. He has made them feel important. He has taken their itching frustrations about the unfairness of life and created a morality play around them, and cast himself as the central character. Trump, to his supporters, is the avenging angel who is going to lay waste to the “elites,” the smarty-pantses and do-gooders, the godless and the smug, the satisfied and the comfortable.

In other words, Trump is leading the battle against “woke” folks. You know, people who have the nerve to suggest that conclusions should be based upon verifiable evidence, that many if not most of the issues we face are complicated, and that knowledge and expertise are desirable and not simply an elitist construct devised to make less educated people feel inferior.

It”s “woke” to admit that racism and anti-Semitism and homophobia still exist; “woke” to recognize that climate change is real and that it threatens our future; “woke” to criticize the “Big Lie;” “woke” to argue that women are entitled to agency over their own lives and bodies…

To those on the political Right, to be “woke” doesn’t simply describe people who have awakened to obvious realities and begun trying to ameliorate inequities. To the True Believers, the Christian Nationalists, “woke” is today’s “mark of the beast.” 

So here we are.

“Wokeness”  no longer means you’ve reached certain conclusions about contemporary society based on research, observation and  common sense. It’s morphed. It has become a label to be applied to one’s mortal enemies–and a threat to be defeated at all costs. 

 It is simply not possible for rational folks to reason with the True Believers. The old adage is right–you can’t reason people out of positions they didn’t reason themselves into. 

Welcome to the all-encompassing culture war.

 

 

And Furthermore…

I am convinced that the biggest problem America faces– the reason we can’t solve or even address the other multiple problems that grow worse each day they are ignored–is the GOP. 

Permit me to share some observations that support that thesis.

Paul Krugman–Nobel winning economist and opinion writer for the New York Times —took on the “reliably awful” Ted Cruz and his anti-gun-legislation GOP cohort, including Texas Lieutenant Governor Dan Patrick, whose “solution” involved locking school doors rather than controlling firearms. (Patrick has obviously never talked to a Fire Marshall..) As Krugman and literally hundreds of others remind us,

Mass shootings are very rare outside the United States. Why are they so common here? Not, according to the U.S. right, because we’re a nation where a disturbed 18-year-old can easily buy military-grade weapons and body armor. No, says Patrick, it’s because “We’re a coarse society.”

I know it’s a hopeless effort to say this, but imagine the reaction if a prominent liberal politician were to declare that the reason the United States has a severe social problem that doesn’t exist elsewhere is that Americans are bad people. We’d never hear the end of it. But when a Republican says it, it barely makes a ripple….

What distinguishes us is that it’s so easy for people who aren’t nice to arm themselves to the teeth.

What also distinguishes us are outmoded rules of governance that allow representatives of a minority of citizens to block action supported by the majority. (Recent polling by Pew and others tells us that ninety percent of Americans want stricter gun regulations, especially more stringent background checks.)

It isn’t just gun safety. Republican senators routinely object to pretty much anything proposed by the majority or by the Biden Administration. I get absolutely livid when people complain that “Biden isn’t doing anything.” These are people who clearly have no idea how easy it is for Republicans to block administrative measures. One recent example, reported by Daily Kos:

When Sen. Jon Tester (D-MT) came to the floor Wednesday afternoon to ask for unanimous consent to approve Dr. Shereef Elnahal to serve as the Veterans Affairs deputy secretary for health and Sen. Rick Scott (R-FL) objected, Tester blew, telling Scott: “You want to talk about why the American people think the United States Senate is dysfunctional? The senator from Florida could look in the mirror.”

Elnahal had impeccable credentials–he’s currently the chief executive officer of University Hospital in Newark. Furthermore, he’d had a hearing in the Committee on Veterans’ Affairs and been approved unanimously.  As Tester pointed out, the need to have the position filled is urgent. “The VA is continuing to battle the impact of COVID-19 pandemic with veterans cases, hospitalizations, and death on the rise again, and VA staff are dealing with burnout and increasing turnover in our VA system.” The job hasn’t had a Senate-confirmed person in it since January 2017.

And what was Scott’s objection? Well, we don’t know, because he refused to say. (Of course, Elnahal is brown…) But under Senate rules, and thanks to the Memorial Day recess,  his objection will delay a vote until sometime in late June.

And don’t get me started on the filibuster…..

As Jamelle Bouie recently wrote in the New York Times,

I am thinking about the ways that narrow, destructive factions can capture the counter-majoritarian institutions of the American system for their own ends. I am thinking of how they can then use the levers of government to impose their vision of society and civil life against the will of the majority. And I am thinking of this in the context of guns, gun violence and the successful movement, thus far, to make the United States an armed society.

Two weeks ago, a gunman killed 10 people at a grocery store in Buffalo. Three days ago, a gunman killed 21 people, including 19 children, at an elementary school in Uvalde, Texas.

Although there has been, in the wake of both atrocities, the requisite call for new gun control laws, no one believes that Congress will actually do much of anything to address gun violence or reduce the odds of gun massacres. The reason is that the Republican Party does not want to. And with the legislative filibuster still in place (preserved, as it has been for the past year, by at least two Democratic senators), Senate Republicans have all the votes they need to stop a bill — any bill — from passing.

I am old enough to remember when Republicans and Democrats had good-faith, substantive disagreements about the proper way to address national problems. Those days are long gone–and so is the time when currently-obsolete Senate rules and procedures served any legitimate legislative purpose.

Go re-read Pastor Pavlovitz’ warning. And help get out the vote.

 

 

Policy, Politics And Reality

Paul Krugman condenses our current democratic dysfunction into one pithy paragraph.

In principle, voters should judge politicians by their actions; they should support politicians who pursue policies that help them, oppose politicians whose policies would hurt them. To do this, however, voters should have a reasonably good idea of what policy is doing.

Krugman is focused on economic policy, but his evaluation of what voters know–very little–is equally true of other policy domains. As he says, In a sensible world–i.e., one that worked as envisioned– voters would have both “a reasonably accurate picture of what’s happening” and a basic understanding of what aspects of our lives are actually under politicians’ control.

As he points out, in the world we inhabit, neither of these things is true. (This observation echoes a popular meme making the Facebook rounds, to the effect that it’s easy to believe in conspiracies when you have no idea how things really work.)

Krugman uses the current gloom over the economy as an example.

Start with the state of the economy. You might be tempted to assume that in a world in which getting and spending occupies a large part of everyone’s life, people would have a pretty good sense of how the economy is doing, even if they aren’t familiar with national income accounting. In reality, however, economic perceptions are largely shaped by media coverage — and, increasingly, by partisanship.

Indeed, the role of partisan skew has gotten so large recently that the Michigan Survey of Consumers, probably the most influential gauge of economic perceptions, highlighted it in its most recent data release; you might say that the Michigan Survey has warned us not to trust the Michigan Survey.

He has appended a chart illustrating the wide differences in consumer sentiment among self-identified Democrats and Republicans since 2019. The chart shows–among other things- that today’s Republicans  have a more negative assessment of economic conditions than they did in March 2009, when the country was in the depths of the financial crisis, a time when unemployment was at 8.7 percent and the economy was losing 800,000 jobs a month.

Other data confirms Krugman’s point that people’s views on the economy reflect what partisan media and their own political preferences are telling them; they show “a huge divergence between what people say about the state of the economy, which is quite negative on average, and what they say about their own personal finances.”

Then there’s the grousing about Biden and the increase in gas prices, despite the fact that the rise is global and Presidents have virtually no control over them.

So we’re living in a nation with many voters who seem to have both a distorted view of the state of the economy and false beliefs about what aspects of the economy politicians can affect. How is democracy supposed to function well under these conditions?…

The fact remains that public perceptions have become extremely disconnected from reality — economics is just one example. It’s a real conundrum. And if you’re waiting for me to propose solutions, well, not today.

That disconnect from reality is an absolutely foreseeable consequence of our national inability to know who and what we can trust.

The constant drumbeat about “fake news,” the willingness of far too many elected officials to lie through their teeth–not to mention their unwillingness to call a lie a lie–aided and abetted by media outlets engaged in propaganda rather than news, are all bad enough.But they would be far less effective if the population at large was minimally knowledgable–if people knew the basic facts about America’s legal framework, the rudiments of economic theory and the difference between science and religion.

When people who are ignorant of  those basics are constantly told that the “legacy” news media is peddling falsehoods, that “others” are to be feared and their voices discounted, that the United States was founded as a “Christian Nation,” that scientific “theories” are  nothing more than wild-ass guesses, and much more–they are far more susceptible to conspiracy theories and disinformation. Some of those theories are so far out–space lasers, pedophiles in charge of the federal government and similar lunacies–that most relatively sane people will reject them, but others–the President is in charge of prices at the gas pump, or the economy is not as robust as it looks–are far more likely to take hold.

When we no longer have Walter Cronkite (or reasonable clones) to trust, all bets are off.

 

Laws Are For The ‘Little People’

I don’t know about all of you, but I’m getting tired of daily news items that leave me both mystified and angry. One of the most recent causes of that combination was news that, during the Republicans’ “negotiation” (note quotes) on the infrastructure bill, they insisted on removing the measure’s additional funding for the IRS.

Please note, this wasn’t a provision allowing the government to raise taxes. This money would have provided the agency with more resources to go after tax evasion. In a sane world (which we clearly don’t inhabit), the party of “law and order” might be expected to support the notion that government should crack down on the crime of tax evasion.

Plus, we are talking about a lot of money. The Treasury Department has estimated that what they call the “tax gap,”–that is, taxes owed under current rates but not paid– amounts to more than $500 billion every year. According to Paul Krugman, some estimates put the number much higher. The Biden administration has simply proposed additional resources that the I.R.S. needs to reduce that gap.

I also want to emphasize that we aren’t talking about the obscene amounts of money sheltered by obscenely rich people in various tax havens, or monies not payable thanks to  the operation of various tax loopholes. We are talking about money people owe after their tax advisors have helped them take advantage of these handy  little mechanisms.

When people who owe taxes don’t pay them, the rest of us have to make up the difference. Given the economics of what constitutes today’s GOP base, why wouldn’t Republican officeholders want to spread the burden–in this case, the costs of repairing America’s crumbling infrastructure–to the citizenry as a whole?

In his column, Krugman shares my mystification–although he’s a bit more cynical.

Just to be clear, I’m not surprised to learn that a significant number of senators are sympathetic to the interests of wealthy tax cheats, that they are objectively pro-tax evasion. I am, however, surprised that they are willing to be so open about their sympathies.

There is, after all, a big difference between arguing for low taxes on the rich and arguing, in effect, that rich people who don’t pay what they legally owe should be allowed to get away with it.

Just to be equally clear, I was surprised that  even these Senators would be “objectively pro-tax evasion.”

For one thing, I don’t think even right-wingers would dare make the usual arguments for low tax rates, dubious as those arguments are, on behalf of tax evasion. Who would seriously claim that the only thing keeping “job creators” going is their belief that they can dodge the taxes the law says they should pay?

 Krugman asks the question that I also ponder: who are the constituents for this startling position? Granted, a bigger budget deficit might cut into the social spending Republicans detest, but–as he points out– it also leaves less room for legal tax cuts.

Tax evasion certainly isn’t limited to the rich–Krugman reminds us that when plumbers or handymen ask for payment in cash, we can pretty much figure out why–but it is definitely concentrated among the well-do-do.

Opportunities to hide income are concentrated at the top; one recent estimate is that more than 20 percent of the income of the top 1 percent goes unreported.

It’s certainly possible that big political donors are among the biggest tax cheats. Krugman thinks that their clout within the G.O.P. “has actually increased as the party has gotten crazier.”

There have always been wealthy Americans who dislike the right’s embrace of racial hostility and culture wars but have been willing to swallow their distaste as long as Republicans keep their taxes low. But as the G.O.P. has become more extreme — as it has become the party of election lies and violent insurrection — who among the wealthy is still willing to make that trade-off?

Some rich Americans have always been right-wing radicals. But as for the rest, the party’s base within the donor class presumably consists increasingly of those among the wealthy with the fewest scruples and the least concern for their reputations — who are precisely the kind of people most likely to engage in blatant tax evasion.

This seems like a stretch. On the other hand, I have no better explanation.