Corruption Overwhelming America

August 20, 2019

This commentary was drafted in anger when I learned that pig farmers are refusing to allow inspections to look for the microbes that are killing people. Upton Sinclair’s The Jungle exposed the filth of the meat-packing industry in 1906 and led directly to the Pure Food and Drug Act and the creation of the FDA, the Food and Drug Administration. Now they want to undo a century of relatively clean food by claiming regulation is bad – yes, particularly bad for filth in the food industry.

This country’s reputation for honesty and responsibility long gave us a huge market edge. American institutions check on errors and misbehavior. That drove our legal and corporate culture. Now we’re inviting the world to ditch its confidence in us, and inviting each other to be cynical about business and political claims, threatening our economic power and democratic system.

Everyone has a reason why you can’t check on them. China is more honest about their meat than our pig farmers. Police refuse to allow information to be made public about their behavior because the people might realize who is trustworthy and who isn’t. The President denies Congress’ authority to get information from him. Even George Washington turned papers over. Trump is the first President since Richard Nixon to refuse Congress his tax information, lest the American people get an honest look at his economic behavior, bankruptcies and unreliability.

Republicans lump everything under the title of regulation and, making no distinction, claim all regulation is bad. Regulation is a problem because they might have to take responsibility for the poisons they want to emit, the toxins and dangerous bugs in the food they want to sell us, and the financial shenanigans they use to fleece us of our money. No one has the right to poison or injure anyone else. That’s irresponsible at best, legally tortious and probably criminal.

The so-called Supreme Court authorizes corporations to force us into arbitration with arbitrators the corporations choose so that the arbitrators are only beholden to the corporations, and anyway, they have no power to cure corporate misbehavior. Heaven forbid corporations should have to own up for their sins. Why should they – no one else does.

We have fussed about the bribery rampant in other countries because it prevents law from working to produce decent and proper behavior that justifies reliance. Preventing investigations is almost as bad. We’re now allowing corporate and political America to behave like the Mafia where there is only accountability for hurting each other – the purpose of the organization is to fleece the public, impose protection rackets, and, where people object, kill. In this complex world it is increasingly difficult to protect yourself from dishonest business.

But the President does it – shouldn’t we follow his example? He failed to fire Mueller but he fires everyone else who might insist on honesty and accountability. Now he’s now moving federal agencies halfway across the country to encourage the staff to quit rather than relocate. What a step forward.

There’s a stench in the White House but who’s left to complain? Too many corporate officers can no longer be watched because Trump destroyed the civil service. Who’s to complain about what they do?

 

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No Time for Moderates

May 27, 2019

We’re suffering a worldwide attack on tolerance, the brotherhood and sisterhood of all peoples, and the principles of democracy and equality that make it possible to share the country and much of the globe in peace. The results, from Brexit to White Nationalism, the resurgence of Nazism in Europe, intolerance in India and China and ethnic warfare over the scraps of economic failure endanger us all. America, founded on tolerance, equality and democracy, should be leading the world out of this dangerous morass instead of smoothing the path to hell.

Commentators have long seen and feared the separation of national politics from the needs of the great mass of working people. Both national parties partook of that separation. Republicans revere Reagan but he crippled the unions, the organizations of working men and women. And claiming that government is the problem, not the solution, Reagan crippled efforts to address their problems. Democrats followed national economic trends without paying enough attention to the dislocations among working people. That combination made white working people feel left out, instead of uniting us in pursuit of a better world for everybody.

That’s recent history. Much further back, Alexis de Tocqueville, famous French nobleman, toured the U.S. in the 1830s and had the genius to see far into this country’s future. Tocqueville told us that democracy required widespread economic well-being.  The very first paragraph of the U.S. Constitution talks about the “general welfare” but many poo-poo it as merely precatory language, not authorizing government to take care of the people. Those who poo-poo that language think the Constitution is merely about freedom from government rather than the creation of a government capable of providing for the people. Their misreading of history is perverse and dangerous.

Seymour Martin Lipset, one of the twentieth century’s great political scientists, pointed to the world-wide connection between democracy and economic welfare. Germany, which had been a great economic power, lost its illustrious and democratic Weimar Constitution after going through economic hell between the world wars.

President Franklin Delano Roosevelt told America that he was saving capitalism by protecting the great mass of Americans from the ways capitalism went awry. The big shots of industry couldn’t understand that their behavior wasn’t sacrosanct. They couldn’t understand that capitalism too has to operate by standards of ethics and principles of sharing. Roosevelt was the architect of American economic success for the next half century precisely because he put in place the rules by which it could operate for the benefit of the entire country, not merely the captains of industry and finance. We have forgotten and dishonored Roosevelt’s legacy of making government serve the people. He rescued this country from the Great Depression, “promote[d] the general Welfare,” as the Constitution provided, and set the country on a sound economic keel, a legacy that would honor any leader.  Fools now sneeze at his accomplishment so they can promote something new – poverty for all.

There’ve been plenty of warnings. Now we have a chance. It’s not enough to beat Trump. We need a victory for the principle that everyone counts and everyone needs to be protected. It doesn’t matter whether it’s called “socialism” or something else. The idea that it’s a bad idea to take care of each other has got to go – permanently – and all the conservative nonsense about the damage of helping each other. Either we care for each other or we will suffer a war of all against all regardless of what you call it – fascism, communism, totalitarianism – the results won’t be good for anyone except the oligarchs.

Forget “moderate” Democrats. If “radical” describes the philosophy of taking care of each other, we need it NOW. Bless all the people with the decency and humanity to care about their neighbors, fellow citizens and fellow human beings. The blessed are those who care.

– This commentary was broadcast on WAMC Northeast Report, May 28, 2019.


Our love affair with capitalism

February 25, 2019

Bernie reopened a national debate about capitalism and socialism. I think we need to understand that no economic system carried to the limit produces justice. We’ve been most successful using mixed systems to gain the advantages and smooth the problems created by both capitalism and socialism.

Actually socialism is hiding in plain sight: the post office, libraries, public schools, the water supply, fire and police protection, highways, roads and streets. We buy our capitalist cell phones on an internet system that government created for military and academic use before turning it over to private systems.

Capitalism has a fraught relationship with workers. It can and often does enlarge the total economy, the whole pie. But it doesn’t distribute that pie among the workers. It distributes the pie to those who make the decisions, and they keep what they can for themselves.

Workers and farmers have every right to be dissatisfied with the impact of capitalism on their lives. Capitalism makes farm prices unpredictable. I’m convinced the programs could be tweaked for the benefit of both the environment and of family farmers, but government programs nevertheless make prices for farm produce sufficiently predictable for farmers to stay in business.

The crumbling safety net leaves workers at the whim of other people’s investment decisions. The disruptions capitalism causes are well illustrated by the argument over the Amazon plant in Queens. There were several appropriate solutions, but the problems were clear – capitalism was preparing to push people out and their fate depended on government. Unemployment insurance and the social safety net were never enough or well attuned to the needs of families who work for others for their living. And the social safety net has been weakened considerably in the last decades along with weakening the legal position of unions. So, government has a job to do.

That doesn’t mean that we should abandon capitalism, but it does mean that capitalism is not the answer to every problem, and it’s not a sufficient answer to our economic problems. Nor are incentives for decision makers adequate answers. Capitalism is well described by the board game Monopoly. It’s so familiar, I wonder if you realized it was created to teach people what capitalism does. As its name implies, the effective object of capitalism is monopoly. Even though the holders of that monopoly change in real-world capitalism as we experience it, ordinary folks are constantly squeezed out. If our objective is the welfare of the people, capitalism is not a sufficient answer. We cannot and must not be ideological purists. Our country has been most successful when we have implemented a mixed system – capitalism as an essential disruptor, and public planning to smooth the impact for workers and communities.

There is a huge difference between saying that capitalism is valuable and the conclusion that socialism is useless, and vice versa. The truth is that both are useful, and we have to be ready, willing and able to reap the advantages of both without losing sight of their limitations.

It was my pleasure, years ago, to meet Robert A. Dahl, one of the intellectual giants of our era. He and Charles E. Lindblom teamed up to prepare a wonderful book, Politics, Economics and Welfare, to show us the different advantages of public and private action. Those of you who frequently listen to my commentary know that I often try to break the ideological mindset that only private action solves problems.

So, I’m looking for candidates this year whose answers are not ideological knee jerks for one system or the other, but who are pragmatically open to the best solutions from whatever source. Bernie is certainly right that some socialist solutions are necessary and important. Some candidates are staying clear of the word but nevertheless get the point. Any candidate who doesn’t get that point deserves a reeducation at public expense beginning with kindergarten where they might finally learn to share.

—  This commentary is scheduled for broadcast on WAMC Northeast Report, February 26, 2019.

 

 


Liberty and License

December 11, 2018

With this Administration demolishing the regulatory state, we need to talk about the underlying claim of liberty. Conservatives once distinguished between liberty and license. Liberty was morally and socially responsible; license was not. That distinction seems to have disappeared from the conservative vocabulary. And with it the moral order in the country.

“Liberty” is now invoked whenever business confronts regulation. Citing “liberty,” business fought the exposure of Thalidomide even as it monstrously disfigured and eventually killed the child of one of my students. Citing “liberty,” some claim the right to waste energy and sell energy wasting products no matter the impact on the climate. Citing “liberty,” some claim the right to pollute with mercury, arsenic and an alphabet of poisons, to put anything into products, into or onto our bodies, earth, air and water unless and until someone else can prove it’s harmful. We don=t treat medicine that way but the claim is that it violates the “liberty” of supplement producers for us to ask for tests of whatever they don=t want to have to get FDA approval for. Some might think it also violates buyers= liberty to lead healthy lives B but perish the thought; that’s not economic “liberty.”

Because people Atook the risk@ B they called it Aliberty@ B financial institutions claimed the “liberty” to construct mortgage terms that made it virtually impossible for buyers to come out above water, destroying their savings, credit, health, homes, livelihood, families and future. In the Great Recession of 2008, those terms took the whole economy down as major companies, banks and markets failed in a cesspool of bizarre financial arrangements, subprime mortgages, mortgage backed securities, credit default swaps, and similar misbegotten deals. And it was OK to bail out those who were too big to fail because they just exercised their “liberty.”

To the free marketeers, the President and CEOs, regulation is generalized and undifferentiated. All restrictions are regulation and they are all bad unless and until regulators spend decades jumping through hoops. Meanwhile producers bear no responsibility to check whether their products are harmful. They accept no liability when harms become obvious to science, but only when it becomes obvious to the very people who pour their poisons into our bodies and our world.

Put it another way. There is no single definition of liberty. There are different definitions of “liberty” for you and me, different definitions for farmers, cattle ranchers, factory workers, lumber workers, guys, gals, easterners, southerners, people who want to graze their animals on public lands without paying B everyone has their own definition of “liberty” and their definitions pay no attention to the impact on the rest of us or on anyone else. Which means that “liberty” no longer means anything.

Liberty for the founders was universal. “Liberty” now seems to be a sacred word applied to whatever is good for us personally but with no binding meaning. Otherwise why can=t I do what I want to do on public land whether or not it conflicts with public purposes or Cliven Bundy’s insistence that he has the right to graze his animals there. Why isn=t that the same “liberty” he insists on? “Liberty” is whatever a president chooses to do whether or not it is good for the country. “Liberty” is what conservatives think we all should respect when it pertains to their clients. Their “liberty” is meaningless, a signal that we=re talking about selfishness, not rights. They’re talking about what used to be called license to do whatever they want regardless of whom it hurts.

Real liberty regards us equally. We all have the same rights. It makes no sense if you can do to me what I can=t do to you. True liberty is freedom to act short of injuring others. We all count. And that, equality, is as American as apple pie.

— This commentary was broadcast on WAMC Northeast Report, December 11, 2018.


Stop Dumping All the Risks on Blue Collar Workers

June 5, 2018

I have been thinking about all the blue-collar workers who believed that Donald Trump would do a great deal for them.

We often talk about the risks that entrepreneurs face but capitalism does its best to outsource risk to blue-collar workers. If there are environmental problems, poisons in the air or water, blue-collar workers and their children will be the first to become sick – they are the canaries in the coal mines. But the irony is that they are also the first to be affected by any attempt to remedy the situation. Prohibitions may force their workplaces to shut down or lay them off.

Liberals often respond by saying that new methods will create jobs. But blue-collar workers have good reason to assume that any jobs created will probably be for other people. Liberals also argue that the proper method for creating jobs is with public works, renovating American infrastructure, etc. But who’ll get the infrastructure jobs? And even more important, no one has been able to promise those jobs. Obama tried but Congress blocked much of what he wanted to do. Trump promised a huge infrastructure program but he put it in the budgets of the states, not his own budget. In effect American politics has not been able to deliver on that jobs promise for the people whose jobs are at risk.

Other relief programs are more automatic: Except for Puerto Rico, we regularly protect people flooded by major storms even when they should have known better than to build on flood plains. The farm program, whatever its shortcomings, protects farmers with formulas that can be calculated in advance. Unemployment insurance is statutory but often grossly inadequate. Social security and Medicare have been reliable though they have become political footballs. Obamacare still exists despite Republican attempts to kill it. But you can’t feed and house a family on medical care. The earned income tax credit comes annually after April 15.

All of this suggests political winners and losers – we like some folks and we don’t trust others with whatever we might do for them. Government has not been willing to become the employer of last resort, so that there are always jobs and wages, although some candidates are urging it now. A negative income tax has been deemed too expensive. And Trump has spent huge tax dollars on enriching the super rich instead of reducing or eliminating the payroll tax in order to encourage hiring more workers for jobs that pay well. There’s lots that could be done if we have the will.

The result is that our political system has not been willing to care for workers. They are not the only ones our politics has left to hang in the breeze. Our unwillingness to insist on decent, honest and ethical behavior for everything from payday lending to mortgage loans, from manufacturing to toxic waste, leaves masses of people at risk, unable to protect themselves or their families.

We need statutes that protect all workers when employers reduce their workforce. Protections need to be reliable so that people don’t have to fear for their jobs when they demand safe working conditions and decent contractual terms that don’t shift all the risks to the people who are most vulnerable and least able to protect themselves. We need reliable worker protection so that people needn’t fear for their jobs when we demand safe products and safe byproducts of business activity. We need to rethink how we protect American workers so that they don’t become the losers whenever we try to improve the American environment and working conditions for everyone.

— This commentary posted by WAMC on their website on June 5, 2018 but the audio was pre-empted by the Pledge Drive. It was broadcast in its usual spot the following week on WAMC Northeast Report, June 12, 2018.


Why law?

February 13, 2018

Governments, including democracies, make laws and rules. Lots of folk spend lots of time telling us we don’t need regulation, or at least we need lots less. Laws and rules are restraints on our freedom to do what we want. And most people are honest. So why do we need law?

Let me tell you about a janitor at Albany Law. John DeMateo was very much beloved. Our gymnasium is named for John. He was always ready to lend a helping hand, often going way out of his way to be helpful. He hired students for the maintenance staff, giving them ways to earn the money they needed to get through their schooling. During breaks, especially the summer break, John used to put out an urn of coffee strictly on the honor system. Put in a quarter and take a cup. No one was watching. What John told me was fascinating. He never had any problem with people helping themselves to free coffee. I’m sure some people must have paid a little later when they got that quarter. But they were honest. However, and this is a big but, every summer someone figured out where he kept the money. It only took one. John still put the urns out but he told me that it barely paid his expenses. The vast majority of us were honest, but one dishonest person changed everything.

Law is for the few people whose unscrupulousness can make life miserable. I’ve heard a Harvard dean claim that a code of professionalism is better than law because scientists will follow it. But if there is any significant profit to be made from being unscrupulous, someone will follow that path too. Business tells us that most businessmen are honest. I’m sure that’s true. But how many unscrupulous business people does it take to make life miserable for the rest of us – especially when the unscrupulous, who cut corners that endanger the rest of us, can brag about how cheap their stuff is. Cheap indeed. And that puts pressure on everyone else. It puts pressure on other businesses, especially when it’s hard to find out who’s doing what. How easy is it for us to know that the workers who make our beloved running shoes are treated well? Or to understand the medical implications of all the stuff that goes into our food. Competition isn’t a level playing field. Many regulations are appreciated by business because they squeeze out the unscrupulous and make it easier to treat customers well and still stay in business. Generic chants about regulation are just sloppy reasoning that hide serious issues.

So when Trump and his cabinet officers tell you they’re going to weaken or eliminate regulations, does that mean everything is going right so we can trust what people are doing? Or does it mean a green light for those who are going to take advantage of non-enforcement to do us harm? Most people want to treat others well, but the few that don’t care will make life difficult for the rest of us. Sloppy language covers serious mistakes.

— This commentary was broadcast on WAMC Northeast Report, Feb. 6, 2018.


Democracy and Public Investment

January 30, 2018

What democracy can do is obscured by today’s free market, anti-regulatory, anti-government rhetoric. That rhetoric creates real winners and losers, but taking it at its word, it’s based on an everyone-for-him-or-herself form of individualism. It asserts that our successes and failures are almost solely the result of our personal abilities and denies that what we accomplish always rests in part on what society gives us.

That flatly contradicts reality. This country blossomed because we worked together, with a spirit of cooperation. Cooperation that made associations, large businesses and elective government possible.

Everyone-for-him-or-herself-alone ideologues shouldn’t blind us to the public role in development. America’s Founders knew they needed government. As aptly described in the show Hamilton, Alexander Hamilton, Robert Morris and their colleagues understood the importance of a banking system and had government create it. Across the thirteen original states, Founders used government to open transportation to the west. Washington himself was deeply involved in efforts by Virginia and Maryland. When New York, which had a sea level path to the interior, finally built the Erie Canal, it set the path for industrialization and settlement for a century and a half, and made the North into the powerhouse that won the Civil War.

Today we’ve lost a shared sense of the public investments necessary to continued development, and the foundations of American success are falling apart. Bridges take unsuspecting occupants into the rivers and ravines below. Water systems deliver lead, mercury, and an armory of toxins. Sewage systems poison rivers, people and the living things that depend on them. Trains crash for lack of decent equipment. The electronic grid barely carries ordinary loads. The next solar storm can take the electrical and internet grids down, bringing the country to a lengthy stand-still. American colleges and universities have been the envy of the world but stripping their resources will ensure their replacement abroad and with them the R&D that has been central to American leadership. We are the wealthiest of countries but too cheap to fund our infrastructure, terrified that taking care of America would actually put people to work, or that public spirit in building and rebuilding America will help someone else’s business.

The best stimuli for business are investments in the capacity of the public, infrastructure for getting things done, and rules that create a common floor of good behavior. The idea that everything depends on lowering taxes is pure garbage from people who want their winnings the easy way – by taking them away from the people.

Trump promised to put infrastructure in his budget. It’s hard to know whether he’ll keep that promise, whether enough Republicans will follow him, or whether it would include anything more than a wall on the border or brick and mortar repairs. Public investment could make infrastructure better and more resilient, as so dearly needed in Puerto Rico and on the coasts. Public investment could go well beyond controversial minimum wage laws by offering decent, useful, jobs at livable wages. Public programs could improve the private market by creating a model to compete with, like the public health care option that Obama tried to get.

Madison, Hamilton and their contemporaries had a much more patriotic and mature understanding of what American progress depended on – the people, the whole people, not just a few plunderers appropriating for themselves what should be our birthright.

— This commentary was broadcast on WAMC Northeast Report, Jan. 30, 2018.


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