Shortsighted Self Interest

I’ve been struck by three observations I’ve come across in as many days.

The first was a comment by someone I don’t know, made in response to a post by a Facebook friend. The friend had (surprise!) criticized Trump; the comment challenged him to identify any way in which he, personally, had been harmed by Trump’s policies. The thrust of the comment was “you haven’t personally experienced a problem, so your criticism is unjustified.”

The very next day, I was watching “Morning Joe” while I was on the treadmill. The panel members were analyzing (okay, pontificating over) the Democratic Presidential field. During the discussion, Scarborough asserted that voters are ultimately motivated by their own interests, by what they believe the candidate will do for them, personally, not by “big ideas” or “abstract” policies or principles.

I wasn’t sure why, but both of these opinions nagged at me. Then my older granddaughter posted a meme that clarified the reason for my discomfort: it said I don’t know how to explain to you that you should care about other people.

That post crystalized what bothered me.

There clearly are people–probably more than most of us want to admit–who base their actions and their votes solely on their perceived personal self-interest.  That self-interest may be financial, but in the age of Trump, as I’ve repeatedly noted, it is more often cultural.

Such people cast their ballots for candidates they believe will favor their tribe, however they define that tribe. It might be bankers or fossil-fuel investors–but it is more often white Evangelical Christians or white people generally.

Other people, not so much.

Are children being caged at America’s southern border? Well–as a Fox “personality” put it–they aren’t our children. Is the minimum wage far below the level of a living wage, with the result that working Americans need to hold down two or more jobs just to pay the rent? Well, I’m doing okay, so why should I care? Are millions of people unable to access even minimal healthcare? I have health insurance; if others don’t, it’s probably their own fault.

It isn’t just that these people are a lot like “it’s all about me” Donald Trump–less obvious or crude about it, perhaps, but similarly self-engrossed. It’s that there is a great irony in their perception of where genuine self-interest lies.

As Alexander Pope wrote, “no man is an island.” He was so right.

If my neighbors have the plague, and it goes untreated, I’m likely to catch it too. If they’re too impoverished to maintain their properties, the value of my property will suffer a decline. If those who live in my city are unable (or unwilling) to pay reasonable taxes, my car will be damaged by driving on streets filled with potholes, there won’t be enough police to keep my family safe, and numerous public amenities that I use and enjoy will be shuttered or limited. If significant numbers of children in my city are consigned to substandard schools, live in homes with un-remediated lead paint and/or contaminated water, my business will have problems finding both workers and customers.

The (very obvious) point is that my well-being depends upon an extensive physical and social infrastructure. Humans are inextricably interdependent– which is why enlightened self-interest requires attending to those “abstract policies” that affect the wellbeing of others.

Enlightened self-interest requires us to care for others.

The fatal flaw of plutocracy is not that some people have more than others. It is that some people, when they have a great deal, no longer see themselves as part of an interdependent social fabric, no longer realize that the problems of their fellow-citizens inevitably and adversely affect them.

They’re wrong–and their wake-up call is coming.

Comments

Putting Profits Before People

It is really, really difficult to mount effective opposition to even the stupidest, craziest policies of the Trump Administration, because there are so many of them. From the environment to the social safety net to the rule of law, the attacks just keep coming.

So if you haven’t heard about the variety of ways in which Betsy DeVos is protecting her for-profit pals while screwing over taxpayers, students and public schools, that’s unfortunate but entirely understandable.

Lest Betsy get buried in this administration’s growing mountain of excrement, let me share one  decision that highlights her priorities–priorities that perfectly align with those of her fellow Trumpian plutocrats.

Courtesy of the Brookings Institution, we learn

On a Friday in mid-August, Education Secretary Betsy DeVos quietly announced that she would abolish the Obama administration’s gainful employment (GE) regulation–a safeguard that protected students from for-profit career programs that left graduates with poor job prospects and unmanageable student debt.

Her decision means that hundreds of thousands of our nation’s students–chiefly minority students, single moms, veterans, dislocated workers, and working adults–will now be trapped in low-performing for-profit programs and burdened with unaffordable and often life-limiting debts. Her regulatory rollback marks a betrayal not only of our nation’s most vulnerable students, but an abandonment of traditional conservative principles about institutional accountability for taxpayer dollars.

You have to read this jaw-dropping description of how the Department of Education “oversees” for-profit institutions to see just how far this purportedly “conservative” administration has strayed from what used to be bedrock conservative dogma.

To see just how extreme Secretary DeVos’s departure is from conservative principles, we ask this litmus test question: What would it take for a career education program to lose its eligibility for federal student aid under Secretary DeVos’s plan? The answer: A for-profit institution cannot lose its financial lifeline, no matter how poorly it performs its statutory mission to train students for gainful employment in a recognized occupation. One hundred percent of students can drop out of their career program, or not a single graduate could land a job in their field of training, and still the federal government would be willing to keep the taxpayer money pipeline of federal student loans and Pell Grants flowing unabated to the school. It’s a federal free-money plan—“accountability” stripped of consequences.

When I characterize DeVos’ approach as a departure–a U turn!– from what used to be GOP orthodoxy, I’m not exaggerating. In my wildest imagination, I never thought I would point to Bill Bennett–a blowhard I detested–as an example of “doing it right.” (But then, I wouldn’t have believed that I would look back at George W. Bush with something close to fondness, either…)

Bennett, as most of you probably remember, headed up DOE under Saint Ronald Reagan.

When he realized that numerous for-profit colleges were performing abysmally, he proposed new regulations that forced more than 2,000 postsecondary institutions to immediately face a hearing to determine whether their default rate on federal student loans was over 20%. If it was, their participation in federal student aid programs was limited, suspended, or terminated. Bennett especially blasted shoddy trade school programs, calling their “pattern of abuses” “an outrage.”

Then there was Lamar Alexander, also a Republican. He spearheaded the 1992 amendments to the Higher Education Act (HEA), under which postsecondary institutions lost their eligibility for federal student aid if their student default rates exceeded 25 percent for three consecutive years. By 2000, more than a thousand postsecondary schools lost their eligibility–and more than 80% of them were for-profit.

When a political party reverses its longstanding position on an issue, the obvious question is why.

The first and most important cause of the Republican retreat from accountability is the growing power of the for-profit college lobby. By 2005, the eight largest for-profit college chains had a combined market value of $26 billion. For-profit colleges, which always had aggressive lobbying operations, started donating much more money to congressional representatives and switched more of their giving from Democrats to Republican lawmakers. When the Obama administration released its final GE rule, the for-profit lobby donated twice as much to Republican lawmakers ($1.17 million) as to Democratic lawmakers ($583,000).

You really need to read the entire report. And weep.

Comments

Jeb! and “Earned Success”

Here we go again.

At a recent campaign event in South Carolina, Jeb Bush was asked how he planned to include black people in his campaign and how he would appeal to black voters.

Bush responded, “Our message is one of hope and aspiration.” But–as Charles Blow noted in a recent column in the New York Times— he didn’t stop there. He continued: “It isn’t one of division and get in line and we’ll take care of you with free stuff. Our message is one that is uplifting — that says you can achieve earned success.”

Shades of Mitch Romney, his “makers” and “takers” and 47 percenters!

As Blow noted, this was not one of the unforced errors we’ve come to expect from “Jeb!” (And I thought he was supposed to be the smart one…)

And this is not some one-time slip of the tongue for Bush. In Bush’s book written two decades ago, “Profiles in Character,” he wrote: “Since the 1960s, the politics of victimization has steadily intensified. Being a victim gives rise to certain entitlements, benefits, and preferences in society. The surest way to get something in today’s society is to elevate one’s status to that of the oppressed. Many of the modern victim movements — the gay rights movement, the feminist movement, the black empowerment movement — have attempted to get people to view themselves as part of a smaller group deserving of something from society. It is a major deviation from the society envisioned by Martin Luther King, who would have had people judged by the content of their character and not by the color of their skin — or sexual preference or gender or ethnicity.”

What is it about privileged people that makes it so difficult for them to look at their fellow humans and see fellow humans? What makes them unable to see the systemic issues–economic downturns, jobs paying less than living wages, overt and structural discrimination–that disadvantage some people?

What is it about less fortunate people that elicits these sneering, patronizing stereotypes, rather than efforts to understand–let alone remedy–those systemic constraints?

What special kind of cluelessness makes a man born to wealth and privilege consider his own condition “earned success” that anyone might achieve?

Comments

Fair Trade

Lest the title of this post confuse you, I’m not talking about the fair trade goods that stock the shelves of shops run by well-meaning nonprofits. That movement—to insure that craftspeople abroad are paid fairly for the goods they make—is well intentioned and important, but it isn’t the subject at hand.

The operation of a market economy—capitalism—rests upon a definition of what constitutes a fair trade. It is usually framed as the amount that a willing buyer and a willing seller, both of whom are in possession of all relevant information, agree is a fair price for the goods or services in question.

There are, rather obviously, economic areas where markets don’t work. Health care (no matter what GOP congressmen insist) is one of those, because the buyer and seller do not both possess all relevant information. Economists call this “information asymmetry.” As a practical matter, when one party to a transaction has important information that the other party doesn’t have, the party with the information has an unfair advantage.

There are other situations where markets can be manipulated. One of the most common involves externalities.

Economists use the term “externalities” to refer to the costs of an economic activity that aren’t paid by either party to the primary exchange, but are instead “offloaded” to someone else—typically, taxpayers. The most common example is pollution: a local factory produces a toxic chemical in the process of manufacturing its widgets, but rather than properly and safely disposing of that chemical and including the cost of disposal in the price of the widget, the factory owner dumps it in a nearby river.

The seller makes a bigger profit, and the buyer gets a better deal on his widget purchase. Meanwhile, we taxpayers pay to clean up the river.

Most of us have no problem identifying this as unfair all around. Such practices distort the marketplace, allowing people who break the rules to profit at the expense of the rest of us.

In today’s economy where the lines between public and private are being increasingly blurred, where private-sector companies ask for—and receive—government subsidies and favorable regulations, where the corporations that can afford well-connected lobbyists enjoy privileges that are unavailable to the mom and pop store on the corner, externalities are harder to detect.

America is in real danger of losing real capitalism. Increasingly, what we have is corporatism, and that’s a very different animal.

Corporatism has been defined as the socio-political organization of a society by corporate interest groups. And all signs are that we aren’t stopping there; the words “oligarchy” and “plutocracy” are more frequently heard in American political discourse these days.

Today’s plutocrats and oligarchs are the rich and superrich who effectively dictate economic policy. And they make the widget factory guy look like a piker.

When markets work as they should, where they should, they really do operate as Adam Smith described; the “hidden hand” improves life for all of us. When the system has been corrupted—when, in transaction after transaction, we socialize the risks and costs and privatize the profits—the only people who prosper are the “haves.” And the greedy.

And that’s not fair trade, by any definition.

Comments

Dehumanizing the Poor

Paul Krugman can generally be counted upon to tell it like it is, and yesterday’s column in the New York Times was no exception. In the first couple of paragraphs, he used the recent upheaval in Hong Kong as an example of the disdain with which affluent folks in developed countries regard the working poor, and quoted Leung Chun-ying, the Beijing-backed leader of Hong Kong, who inadvertently blurted out the real reason the regime is resisting giving pro-democracy demonstrators a voice:

With open voting, “You would be talking to half of the people in Hong Kong who earn less than $1,800 a month. Then you would end up with that kind of politics and policies” — policies, presumably, that would make the rich less rich and provide more aid to those with lower incomes.

So Mr. Leung is worried about the 50 percent of Hong Kong’s population that, he believes, would vote for bad policies because they don’t make enough money. This may sound like the 47 percent of Americans who Mitt Romney said would vote against him because they don’t pay income taxes and, therefore, don’t take responsibility for themselves, or the 60 percent that Representative Paul Ryan argued pose a danger because they are “takers,” getting more from the government than they pay in. Indeed, these are all basically the same thing.

For the political right has always been uncomfortable with democracy. No matter how well conservatives do in elections, no matter how thoroughly free-market ideology dominates discourse, there is always an undercurrent of fear that the great unwashed will vote in left-wingers who will tax the rich, hand out largess to the poor, and destroy the economy.

As Krugman notes, this attitude is anything but new. If there is a staple of human politics, it is the tendency to demonize the “other.” Gays, Jews, African-Americans, Muslims, non-Ayrans– the identity of the marginalized may change, but the political and psychological need to draw a distinction between those who are righteous and “deserving” and those who are not seemingly remains constant.

These days, demonizing racial or religious minority groups is publicly frowned upon (although privately indulged), but blaming the poor for their poverty is seen as analysis rather than bigotry.

It’s bad enough that this moral opprobrium prevents us from implementing ameliorative economic policies, but it also retards our efforts to fix public education.

On Thursday, the Mind Trust and the United Negro College Fund hosted a lunch. The keynote speaker was one Roland Fryer. He was brilliant. Fryer–the youngest African-American ever tenured at Harvard–is an economist who studies education, and he reported the results of a large-scale experiment he and others recently conducted in Houston and Denver.  (I’m told his entertaining and informative speech will be shown on Channel 16, and for those who missed it, it would be well worth watching.)

Fryer made a number of important points, but the basic message was simple and profound: poor children–including poor black children–are every bit as capable of learning as their more affluent peers. (Fryer himself grew up in a poor neighborhood in Houston; he never knew his mother and his father was imprisoned.) When poor kids are given good teachers, when their schools support those teachers appropriately, and when the teachers expect those children to learn and excel, performance improves dramatically.

If we want to live in a society where the gulf between the haves and have-nots is deep, where resentments fester and plutocrats retreat ever farther into their gated communities–if we want to inhabit a society focused upon what divides us rather than what we have in common–we just need to keep doing what we’ve been doing.

Comments