Don’t Let A Crisis Go To Waste…A Grifter’s Perspective…

Usually, when a politician says “don’t let a crisis go to waste,” the meaning is: “let’s take advantage of this crisis to move policy in the direction we think it should go.” It implies recognition that crises are often opportunities for positive change.

A report from NBC News is a reminder that not letting a crisis go to waste means something rather different to folks whose only goal is to make a profit–and that we have a federal administration just chock-full of grifters who think that way

It seems that, as the country hunkered down, DuPont convened a crisis team, charged with  figuring out how to increase production of personal protective equipment (PPE). DuPont has a patented material called Tyvek, which its distributors sell between $5 to $15 apiece to hospitals, and according to NBC, by early March, DuPont’s factory in Richmond, Virginia, was cranking out Tyvek.

In non-crisis times, it can take up to three months to turn Tyvek into body suits, because DuPont usually ships the fabric to Vietnam, where the body suits are sewn. So when the federal government offered to pay for chartered flights to reduce the round trip for 750,000 items to 10 days, DuPont agreed.

Then DuPont sold the suits to a third-party distributor for approximately $4 each, according to company documents it provided to NBC News, and that distributor sold them to the government. The company initially declined to say how much the Department of Health and Human Services paid for 750,000 suits, and it refused to identify the third-party distributor or say how much that firm charged the federal government.

“We actually helped get raw materials supplied from Richmond, Virginia, and we flew that s— to Vietnam, all so that DuPont could sell us” their products, said a senior federal official involved in the coronavirus effort.

Trump, of course, bragged that the deal was evidence of his administration’s excellent efforts to provide PPE.

NBC–and a number of government insiders–have a different view.

[F]or some government officials familiar with the supply-chain end of the coronavirus fight, it was yet another example of Trump’s task force serving industry as the White House tried to corner the market on medical supplies.

For weeks, Trump has resisted pressure to use the full power of his office to temporarily turn the private sector into an arm of the federal government in a national emergency. He and his lieutenants instead have used the crisis to make federal assets and personnel a support group for industry, rather than the other way around, according to NBC News’ interviews with dozens of public- and private-sector sources involved in various aspects of the coronavirus response.

In doing so, the vice president’s coronavirus task force — mostly through a supply-chain unit led by Rear Adm. John Polowczyk, vice director of logistics for the Joint Chiefs of Staff, and heavily influenced by White House adviser Jared Kushner, the president’s son-in-law — has favored some of the nation’s largest corporations and ignored smaller producers of goods and services with long track records of meeting emergency needs, according to officials at multiple federal agencies and people familiar with contracting.

They have operated almost entirely in the dark, releasing few details of their arrangements with the big companies; created a new and convoluted emergency response system; and sown confusion and distrust in the states and among the people who need medical supplies.

The supply-chain group is just one part of the task force run by Vice President Mike Pence. That task force is routinely described by insiders as chaotic, secretive and inept. According to the NBC report (and numerous others, including Governors, local officials and veterans of federal emergency response), it has deeply complicated the national fight against the pandemic.

We don’t know much, because transparency is clearly not a priority of this administration; however, there are two priorities that–according to off-the-record officials–definitely remain:  private profit and the ability of the White House to choose where supplies go.

A friend of mine used to say that the whole point of holding political office was to help your friends and screw your enemies. Whatever the truth of that cynical maxim, it may be the only political principle guiding the know-nothing grifters in this administration…

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A Follow-Up

Yesterday’s post was about Gavin Newsom’s challenge to Washington, and what it might mean for federalism, and for the divisions–both philosophical and partisan–between the more thinly-populated Red states (most of which are also “taker” states) and more urbanized Blue states (mostly “donors.”)

The Guardian also addressed the federalism issue, albeit from a different angle.The Guardian looked at the effect of Trump’s ego and behavior, focusing especially on Trump’s clear resentment of Puerto Rico after its hurricane, and–in the midst of the pandemic–his unmistakable message that he would be more likely to send needed medical supplies to states whose governors treated him “with appreciation.”

Clashes between presidents and states are nothing new. But according to government theorists, public affairs experts and political analysts, Trump’s rattling of the federalist compact, by which the 50 states are both autonomous and bound in a national union, is unprecedented in modern times.

“You’ve redefined the role of state governors,” said David Super, a professor at Georgetown Law. “Governors must grovel to the president. Governor [Gavin] Newsom [of California], Governor Andrew Cuomo [of New York] have understood that, and they’re doing it. Governor [Gretchen] Whitmer has largely refused, and Michigan is going through hell as a result.

“These governors are more like provincial chiefs under this system, and if we want to restore federalism in this country we will have to make some very dramatic changes after this is over. If we don’t, federalism is dead.”

Super calls the White House approach to the nation’s governors “flippant federalism.” And along with many other observers, he conveyed shock and concern over reports that the federal government is intercepting ventilators and other equipment ordered and paid for by the states, which Trump appears to be handing out on a political patronage basis.

“On the one hand, they’re telling the states they’re on their own,” said Super. “On the other, they’re seizing the supplies that the states get on their own.”

Martin O’Malley, a former governor of Maryland has called the administration’s approach “Darwinian federalism.”

“His [Trump’s] behavior is not in keeping with the office of president,” O’Malley told the Guardian in an email. “The notion that governors have to bow down and praise him in order for their citizens to receive federal disaster assistance is contrary to the very nature of a republic.”

In the wake of this pandemic, what happens to federalism, to democracy, to government legitimacy, to partisan polarization, the social safety net– are all open questions.

Every newscast, every performance, practically every Facebook post ends with “We’ll get through this– together.” I hope that’s true, but  I’m not so sure.

One thing I am sure of, however, and that is the importance of trust in a society’s institutions, based upon a belief that those institutions and structures are fair. Right now, Americans don’t have that belief and that trust.

Much as I detest Donald Trump and the know-nothings and predatory bigots he’s assembled, he’s not the cause of the multiple failures of governance we’re experiencing. He’s the pathetic result of years of civic apathy.

Our national motto was not originally “In God We Trust.” It was e pluribus unum–out of the many, one. The existential question we face is whether we can breathe new life into that motto–if we can use this horrible time to recommit ourselves to the values that once did make this country exceptional (although probably not in the way the nationalists believe).

Federalism isn’t the only institution we have to repair.

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A New Nation-State

Apologies for yesterday’s accidental post-that-wasn’t. I clearly don’t do stir-crazy very well….

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Should the GOP manage to manipulate–rig– the 2020 election and somehow re-elect Trump–maybe I won’t have to move into my son’s house in Amsterdam, or go to Canada, which have been my choices so far.

Maybe I can just move to California. which Governor Gavin Newsom has begun referring to  as a “Nation-State.”

California this week declared its independence from the federal government’s feeble efforts to fight Covid-19 — and perhaps from a bit more. The consequences for the fight against the pandemic are almost certainly positive. The implications for the brewing civil war between Trumpism and America’s budding 21st-century majority, embodied by California’s multiracial liberal electorate, are less clear.

 Speaking on MSNBC, Governor Gavin Newsom said that he would use the bulk purchasing power of California “as a nation-state” to acquire the hospital supplies that the federal government has failed to provide. If all goes according to plan, Newsom said, California might even “export some of those supplies to states in need.”

 “Nation-state.” “Export.”

(Newsom’s “Nation-State” differs from what Mike Bloomberg and others have referred to as “the rise of City-States” in response to climate change.)

In what the quoted article calls “civil war by other means,” Newsom is sending a message, not to Trump (who lacks the intellect to decode communications in any event), but to both political parties.

The GOP has been waging war on democratic values, institutions and laws for a number of years. The Democrats have been playing defense (and arguably not very well).

The GOP’s politicization of the Supreme Court most recently led to the unconscionable ruling requiring Wisconsin voters to risk their lives in order to cast a vote. Despite the fact that Wisconsin voters took that risk, that should have been a wake-up call.

Perhaps it was.

It’s clearly past time for Democrats to go on the offensive. Newsom is Governor of the nation’s largest state; he’s in a position to put Republicans on notice. California’s  taxpayers account for 15% of individual contributions to the U.S. Treasury, and the article suggests the state is is “now toning up at muscle beach.”

Democratic state Senator Scott Wiener, a leader in California’s cumbersome efforts to produce more housing, said soon after Newsom took office in 2019 that reorienting the state’s relationship to Washington is a necessity, not a choice.

“The federal government is no longer a reliable partner in delivering health care, in supporting immigrants, supporting LGBT people, in protecting the environment, so we need to forge our own path,” Wiener said. “We can do everything in our power to protect our state, but we need a reliable federal partner. And right now we don’t have that.”

And that quote  was from before the federal government’s multiple failures to respond adequately to the pandemic.

Federalism has a number of virtues; as we saw in the 50s and 60s, however, “state’s rights” can also facilitate gross injustices. Its current operation is among the many governing structures we need to rethink and reorient–but that reorientation, along with all the other institutional “fixes” we need–will have to await the installation of a competent federal administration.

Meanwhile, states like California are increasingly at odds with the Republican playbook: California is a sanctuary state while Trump’s GOP is demonizing immigrants; its approach to marijuana is much more permissive than that of the feds; its position on guns is diametrically opposed to that of an administration co-opted by the NRA.  Etc. Now, Trump’s dangerous mismanagement of pandemic response has essentially left California and other states to manage on their own.

One conflict, however, encompasses all others, and could galvanize Californians into new ways of thinking about their state and its relationship to Washington. The GOP war on democracy is inspired by a drive for racial and cultural supremacy that jeopardizes the democratic aspirations and human rights of California’s multiracial citizenry.

It isn’t only California. The majority of citizens in our diverse nation live in urban areas and urbanized states, while the White Supremacy Party–aka GOP–is increasingly a rural phenomenon. The states with a majority of the country’s population are under-represented in the Senate; their citizens’ votes are minimized by the Electoral College and gerrymandering.  There’s no reason to believe that these continuing inequities of minority rule won’t trigger a counterattack–and good reason to believe they will.

As the editorial concludes:

John C. Calhoun, who used the theory of states’ rights to defend the institution of slavery, is not generally a philosophical lodestar for liberal Democrats such as Newsom. But if Republicans (or foreign friends) succeed in sabotaging democracy in November, Calhoun’s theory of nullification, which posited that states have the power to defy federal law, could be ripe for a comeback on the left coast. With the heirs of the Confederacy now reigning in Washington, turnabout might be very fair play.

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Apres Le Deluge…What?

Thanks to the pandemic, millions of jobs have been disappearing–many of them, hopefully, just on hiatus, but many probably for good.

What will America and the world look like when this pandemic has played out? What lessons will we have learned, and how will those lessons change us?

The New York Times has introduced an entire series devoted to the question. Daily Kos recently predicted eleven ways America will change in the wake of the coronavirus. Like many of you, I’ve been discussing with my children and grandchildren the likely reasons for the deadly incompetence of America’s federal governance and the likely consequences for the future.

We have a son who lives  in Amsterdam and a granddaughter who lives in England, so we have an international context within which to evaluate successes and failures; of the two, the Netherlands has clearly (in my view, at least) exhibited the better approach: in addition to the country’s already-robust social safety net, the government has imposed a moratorium on firing people and is subsidizing payrolls for the duration. The Netherlands is predicting an unemployment rate just under ten percent when the pandemic is gone; here, of course, joblessness predictions are far, far higher.

The real question for Americans, of course, is: what cultural attitudes will the pandemic experience change? And how?

Every news show, every advertisement, currently ends with “We are all in this together.” True. Will that recognition outlast the crisis? We are all on this planet together, too, but the threat of climate catastrophe hasn’t notably affected the fossil fuel predators and others more concerned with their bottom lines than with global survival.

Will the pandemic–and its incredible mismanagement–finally awaken Americans to the importance of competent government? To an appreciation of the people conspiracy nuts call “the deep state,” and rational people recognize as committed civil servants?

What about the escalating reports of corruption–reports about  how this despicable administration’s “best people” are enabling looting and polluting while the pandemic provides a distraction? Will American voters and the American media finally understand that character–defined as honesty and “servant leadership”–matter?

Will we finally join the rest of the world, and provide access to health care to all of our citizens, or will America’s “original sin” and continued tribalism prevent us from supporting universal programs that help all people, including black and brown people?  For that matter, will we respond the way we did after the Great Depression, with a new “New Deal” that recognizes that we really are all in this together—and that the pursuit of rational self-interest requires that we build a society that works for everyone?

Will we at least recognize that government’s obligation to protect its citizens extends far–far–beyond maintaining “law and order,” anti-terrorrism efforts and foreign wars (justified and unjustified)? One of the most unforgivable acts by this unforgivable administration was dismantling the efforts put in place by the Obama administration to plan for pandemics–can’t you just see Trump thinking, who will notice, right? That task force is just sucking up resources that we can use to reward donors with subsidies and tax cuts.

When I look at this very incomplete list, and think about other lessons we should learn, they all require a renewed appreciation of the importance of an appropriately structured and constrained government.  Once this election is over, and voters have (hopefully!!) ejected this utterly unfit administration, Americans need to engage in a national conversation about what government is for–what government should and should not do.

That conversation will be critical–and we absolutely cannot allow it to be hijacked by the ideologues and conspiracy theorists and looters.

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The Robots Are Coming…

When I opened my email a few days ago, the first thing that popped up was an article from the Brookings Institution titled “The Robots Are Ready as the Covid-19 Recession spreads,” predicting that a coronavirus-related downturn will increase the rate at which American industry invests in labor-replacing automation.

As I have previously argued, jobs don’t matter simply because most of us need to put food on the table. Having a job–even a job we dislike–gives most of us a sense of purpose and identity. (There is a reason so many people die shortly after retiring.)In “The Truly Disadvantaged,” William Julius Wilson noted the significant differences between neighborhoods where residents are poor but employed and neighborhoods where residents are poor and jobless.

The longterm trend was worrisome well before the advent of the Coronavirus: American economic mobility and job creation had already begun to slow, largely as a result of policies favoring larger firms over the entrepreneurial start-ups that were once responsible for the creation of most new jobs. Numerous studies have documented what Brookings calls “a steady and significant increase in consolidation” Thanks to anemic anti-trust enforcement, the number of so-called “mega-mergers” has increased, and as the market power of these huge companies grows, competition decreases. The under-enforcement of anti-trust laws has reduced entrepreneurship, increased predatory pricing practices and economic inequality, and resulted in the concentration of economic growth.

Rather than the vigorous competition that characterizes healthy markets, we have increasingly moved from capitalism to corporatism, or crony capitalism, in which government shields favored industries and companies from competitive pressures rather than acting as the guarantor of a level playing field.

Until recently, people expressing concerns about job losses have focused their criticisms on the outsourcing of manufacturing to low-wage countries, ignoring what is by far the biggest contributor to job loss–  automation, and the replacement of workers by machines.

A 2018  study by Ball State University found that just since 2000, nine out of ten manufacturing workers have been replaced by automation. That same year, the Pew Research Center asked approximately 1900 experts to opine on the impact of emerging technologies on employment; half of those questioned predicted the displacement of significant numbers of both blue- and white-collar workers by robots and digital agents, and predicted that those displacements will lead to serious consequences: larger increases in income inequality, masses of people who are unemployable, and breakdowns in the social order.

Forecasts varied widely. One analysis, by the Organization for Economic Cooperation and Development, predicted that ten percent of the jobs in advanced economies will be automated, while scholars at Oxford University warned that 50% of American jobs are at risk. Obviously, no one can say with confidence how many jobs will be lost, or which workers will sustain those losses, but technologies now in development threaten millions.

Think about the numbers. There are 3.5 million professional truck drivers in the United States, and another 1.7 million Americans drive taxis, Ubers, buses and delivery vans for a living. Self-driving cars, which are already being road-tested, could put them all in the ranks of the unemployed.

Think skilled workers are immune? Think again.  Reports show accelerating automation of jobs held by skilled knowledge workers engaged in data-driven decision-making. Between 2011 and 2017, Goldman Sachs replaced 600 desk traders with 200 coding engineers. Even medical professionals are at risk: in 2017, Entilic, a medical start-up, reported that its AI algorithm “outperformed four radiologists in detecting and classifying lung modules as either benign or malignant.” In 2016, the World Economic Forum projected a total loss of 7.1 million jobs to automation, including jobs in advertising, public relations, broadcasting, law, financial services and health care.

Automation will obviously create jobs as well as destroy them, but that will be cold comfort to that 55-year-old truck driver with a high-school education–he isn’t going to move into a new position in Informatics.

What does the current pandemic have to do with this longterm trend? According to Brookings:

Robots’ infiltration of the workforce doesn’t occur at a steady, gradual pace. Instead, automation happens in bursts, concentrated especially in bad times such as in the wake of economic shocks, when humans become relatively more expensive as firms’ revenues rapidly decline. At these moments, employers shed less-skilled workers and replace them with technology and higher-skilled workers, which increases labor productivity as a recession tapers off.

America wasn’t prepared for a pandemic, and we won’t be prepared for the civic unrest exacerbated by widespread joblessness. We are going to require skilled leadership, and that leadership will not be provided by the Party of the Past, led by a mentally-ill ignoramus.

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