It’s Government’s Job to Make Work Available

April 19, 2016

Bernie and Hilary argue about trade pacts. We know trade pacts cost some jobs and open up others. That’s not a satisfying trade-off if your skill is suddenly unmarketable and you’ve become unemployed or underemployed. An effective response is crucial.

But protecting specific jobs will ultimately hold America back, diminish our competitiveness, and damage our ability to develop in new directions. Government should not protect specific, unsustainable jobs or avoid trade pacts that promote economic progress, national security or other international objectives.

But – and it’s a very important but – government should make sure that we can all work to support ourselves and our families. That’s why Republican insistence on scaling back Obama’s stimulus package in 2009 and then blocking more investment in infrastructure was very much the wrong move. It shirked our responsibility to each other and made moving forward politically more difficult.

The way government can make jobs available is to hire people to do what we should be doing and building. Once people are working, business and investors will take advantage of the extra income flowing and build their businesses and inventory to satisfy the demand.

But businesses don’t invest in order to create demand. Individual businesses can’t assume their investments will change the economic picture significantly, certainly not enough to repay their investments. Individual businesses can’t assume that they will reap the benefits of having created more jobs – people spend their paychecks in many places only a fraction of which will come back to the company.

That’s just one of the reasons pouring more money into the hands of what Republicans like to call job-creators is worthless, like a Rube Goldberg invention in its totally confused complexity. Business invests to meet demand or to create a product they think will sell – they don’t invest just because they have money. And since in fact they have lots of money on hand, many have been engaging in various forms of financial manipulation, buying back stock, sending money abroad, anything but job-creating investment or investments here.

That means that both Bernie and Hilary are hitting the nail of economic doldrums for the many people who can’t find decent jobs right on the head. It’s a problem that needs government to work for us.

Putting people to work solves many problems at once. Putting people to work supplies the person-power to re-build, update and renovate infrastructure. Putting people to work, pushes the wage scale for the best of reasons – not just a legal minimum wage pegged to an arbitrary number, marketplace pressure for employees raises the payscale. Putting people to work improves the business outlook. And infrastructure improvements improves the feasibility of successful investment for everyone – not just the favored projects of a few but improved access for all of us means that people with a good idea will have the opportunity to get the resources they need and access to the customers they want.

Of course whether government can pay for doing the right thing depends on whether government can actually impose taxes on the people and companies who have money. Arguing about protecting the so-called job-creators bv reducing their taxes is actually a way of starving government so that those so-called job creators can squeeze workers who are uprotected because government can’t afford to do anything about it. A successful modern economy requires a government with the resources to play its part.

— This commentary was broadcast on WAMC Northeast Report, April 19, 2016.

 


Why Neither Party Can Back Down on Garland

April 12, 2016

Why is blocking the Garland nomination to the Supreme Court so important to them that most Republicans won’t even meet with him let alone agree to hold a vote? Many probably think it is about gay rights and abortion. But there is much more at stake for both parties.

After the Civil War, a very different Republican Party was anxious to secure voting rights for African-Americans. They explicitly addressed the voting rights of the former slaves in both the Fourteenth and Fifteenth Amendments and addressed it by implication in several other clauses as well. Those Republicans, committed to freedom and equality, understood that if the states of the former Confederacy could exclude African-Americans from voting, the former secessionists could retake southern government. Even more important, southern control of the House of Representatives would be strengthened, because the former slaves would count as full and equal human beings in the census and therefore in the apportionment of seats in the House. If that greater southern representation could be controlled by the white secessionists without Black votes to contend with, the former secessionists would control Congress.

Republicans have now switched positions. They still want to control Congress by controlling who can vote, but now by excluding everyone except white voters and undercounting everyone except Republicans. The Court has given them the power to do that. First, the Court chose George Bush for President, stopping the count of the actual votes in Florida. It refused to subject gerrymandering to any legal standard, even though there is now a very precise formula defining the extent of gerrymandering. It has taken the lid off every measure that descendants of the former Confederacy can impose to prevent African-Americans from voting, opening the polls only when it is difficult for them to get there, moving polling places to make them harder to reach, and requiring documents for registration that are costly in both time and money to obtain. That’s the dictator’s game where the officials choose the voters instead of the voters choosing the officials. It shreds democracy. It seems it is all the Republicans have left. And if choosing their voters turns out to be insufficient, the Court has unleashed the flood of corporate treasuries on politics and undercut labor’s ability to survive as a counterweight.

Choosing their voters, and controlling political money to favor Republicans are their biggest motives for wanting to control the Court – it protects their seats and their control of states and Congress. But there are other motives. The Court has shredded the protections of ordinary citizens in product liability, fraud and breach of contract cases. It has shredded the responsibility of Republicans’ corporate friends in antitrust liability and responsibility for securities fraud. The Court has become the major enabler of corruption, a giant kickback to friends of Republicans.

If one adds Republican preference for the conservative justices’ attack on abortion and gay rights, and their defense of school segregation, the Court has defined virtually the entire Republican agenda, its social agenda, its attempt to subordinate democracy to their dominance, and its cozy relationship with corporate America. It gives the rest of us very strong reasons to stop them and to get the Court back in support of democratic government, especially taking back the Court’s blessing for legally converting a vocal minority into national rulers. It’s time to stop them in the name of democracy.

— This commentary was broadcast on WAMC Northeast Report, April 12, 2016.

 

People bear the cost for rulers’ misbehavior

March 29, 2016

In a still unpublished manuscript on the way conservative economics has failed us, my friend Eric Zuesse remarked, “The ‘Greek debt’ is really not a debt of the Greek people.” He goes on to identify the “institutional creditors  … Euro-banks … high risk kleptocrats, oligarchs and bankers who siphoned most of the euros into overseas Swiss accounts …. [and other foreign investments] devoid of any capacity to generate income to pay back the debt.”

Eric’s statement is profound, pointing to the ways that those in power play with our lives and then displace the responsibility to their innocent victims. While I’m sure that some will argue that elections gave the Greek people some complicity, Eric accurately points to the ability of those primarily responsible to displace the costs of their own misbehavior.

I think we can see that pattern all over modern public affairs. What responsibility did the refugees in Syria or Iraq have for the wars that took their lives, homes and livelihoods? What responsibility did unemployed Americans have for the depression that was engineered by banks too big to fail, banks which traded worthless securities in an enormous Ponzi scheme for which they have not been prosecuted? The Supreme Court has cleared the manufacturers of failed medical devices for rupturing in our bodies but why is it somehow the responsibility of the victims to absorb the injuries and the costs? This is a pattern – the rich and powerful do the damage and outsource the costs to the rest of us.

Terrorists take advantage of that. They attacked the World Trade Center and the Pentagon on 9/11. But the people of Afghanistan, Iraq and the Middle East have paid the price of our response, innocent men, women and children, polarizing regions and sweeping us into the worldwind. Our failure to calibrate the response had much wider repercussions.

The British, French, Germans and Spanish have suffered similar terrorist attacks, actually over many decades from many different groups, but they have managed to restrain their responses. England fought in the so-called “troubles” of Northern Ireland but finally learned that their response was devastating the wrong people and making the problem worse. The Spanish restrained their response to the Basques. All restrained their response to leftist terror. They responded with police work, ultimately capturing and trying many of the terrorists.

For many Americans anything but an all-out response seems unacceptable. Politicians attack restraint as weakness, not strength. And of course ordinary Americans pay the price. We pay it in the deficit, in taxes, in the lives of our loved ones in foreign wars, and in civil liberties at home. But those who benefit are immune. Major suppliers of paramilitary forces abroad like Blackwater and Halliburton get more contracts while they supply deniability to American leadership for their violations of human rights.

These are bad bargains. Will we have leadership capable of leading, capable of explaining to the American people and standing strong in the face of hotheads for whom an indiscriminate overreaction is the only so-called “manly” response. Will we have leadership capable of zeroing in on the perpetrators of economic collapse, mortgage failure, and malfunctioning products?

Isn’t it time to stop blaming the people for the misbehavior of the oligarchs? Or will the rulers, paraphrasing Thomas Hardy’s conclusion to Tess of the d’Urbervilles, end their sport with us?

— This commentary was broadcast on WAMC Northeast Report, March 29, 2016.


What is Limited Government Anyway?

January 26, 2016

With the presidential primaries underway, the media is choked with talk about getting the government off the people’s backs, restoring limited government, making government let the people alone. But the Koch brothers, the Tea Party, their candidates and supporters are actually saying something very different – they want government to support their definition of their rights and push everyone else out of their way, and most important they want the courts to decide in their favor when others complain that they are trespassing on public land or polluting the air, land and water in ways that injure and interfere with the lives of others. That’s government in their favor.

We lawyers talk about law as a seamless web. That sounds like an idiom but it’s actually very precise. Everything is governed by rules. Judges always decide that someone does or does not have a privilege or a right. Those are all decisions about what the law is. Law always favors someone and disfavors someone else. If someone has a privilege, then everyone else loses when that person does whatever he or she is privileged to do. The question is not, cannot be, whether there is law; the question we have to deal with is whether it is fair and whether it is good for the public. Government off the backs of some means government on everyone else’s back, often leaving you and me poor and defenseless.

Limited government, regulation off people’s backs, are the tropes we hear when a government agency or legislature takes note of bad behavior – fraud, pollution or unconscionable business practices that cause decent people great loss. Unscrupulous companies, some very large and well known, as we discovered during the 2008 financial shock, want no regulations that would set a moral floor under their behavior, allowing more moral enterprises to compete instead of being bankrupted by cut-rate competition from the scandalous moguls. The only regulations that the unscrupulous like are regulations that keeps everyone else out of their way.

So when you hear that trope, look squarely at the privilege these anti-government claimants are defending. You hear it loudest when people are claiming the right to hurt the public. That’s not a claim of freedom that would have made any sense to the Founders of our country.

When the Founders spoke and wrote about government, their central questions were what’s fair and what’s good for the public. Those was central in every aspect of their work from the definition of property rights to the rights the public retained and what the public could and should do for the benefit of the people. Concern for public welfare was central to the building of the Erie Canal that defined the path of commerce in the State of New York for a century and a half, even as the canal was replaced by roads and railroads to continue developing the path the canal had developed. Concern for public welfare was central to the establishment of schools which made Americans among the most educated people on the earth, education that was at the root of all the good things that have happened since.

The Founders believed in public spirit, not a spirit of what the public could do for one’s selfish needs, but a spirit about what each of us could contribute to the improvement of the community, the states and the nation. When President John F. Kennedy told the American people “Ask not what your country can do for you; ask what you can do for your country,” he was channeling the spirit of the Founders.

— This commentary was broadcast on WAMC Northeast Report, January 26, 2016.


No Justice for the Vulnerable

December 29, 2015

In this season of charity, I’d like to talk about the fate of the less fortunate to make clear how our politics has been turning a blind eye to the damage it does.

When we aren’t responsible for the costs imposed on others, we will continue to hurt them. Economists call that externalities. Businesses don’t have to pay for the effects on our environment so most businesses continue doing global damage just as much as if they were perfectly benign. Forcing businesses to pay for workers’ injuries, forced them to take account of ways they could save money by protecting their workers – not out of the goodness of their hearts but because the legal system said they had that responsibility. When costs are internalized, they result in better overall decisions.

In the law of eminent domain, cities have to pay for taking people’s property regardless of how wonderful their plans. They have to internalize the costs their plans will do to the owners of real property. When they did urban renewal, the cities didn’t have to pay for the businesses whose customer base was destroyed, and they didn’t have to pay for forcing people into much less safe or appealing housing or projects. So cities avoided taking high priced real estate but they freely wiped out the businesses of the most vulnerable. Those costs were externalized, imposed on other people who had no choice in the matter.

In fact our system makes scores if not hundreds of thousands of innocent victims with no thought of internalizing the damage and paying any form of compensation.

When an individual is wrongly imprisoned for a quarter century and is lucky enough for someone eventually to find a way to convince the courts to let him out, with DNA or other conclusive evidence, that individual has to prove that someone was not only derelict in his or her duty, but did not have one of the many privileges that the law gives people in the criminal justice system, or that the city or state was derelict in its duty of supervision and training, before that individual has any right to compensation. Everyone in government gets to smile and say justice was done while continuing to do the kind of careless investigation and sometimes deliberate withholding of evidence that kept people in prison. They aren’t made to internalize the costs of their misbehavior.

Would police departments be so happy to retain police officers if the department budget took a big hit every time a cop guessed wrong and shot an unarmed civilian? Or would the department institute practices to make that stop?

In fact our law makes the victim or survivors prove specifically what the city should have done in training or by regulation or what the officer should have done under the circumstances. Asking only whether the officer’s behavior was reasonable, the law doesn’t take account of the reasonableness of the victim’s actions. In other words, instead of making the officer and the city responsible for their mistakes, it puts the risk of police error on the individual.

Of course that is typical of American law – protect those who don’t need it but leave the vulnerable in the gutter with a sheet and a prayer. There’s little justice in America for the vulnerable.

— This commentary was broadcast on WAMC Northeast Report, December 29, 2015.

 


Jobs and the “job creator” fairy tale

December 22, 2015

At this season in which charity is high on our agenda, I’d like to address some economic issues. I recently spoke with you about what the oligarchs are doing to American democracy. This time I’d like to talk with you about is happening to our jobs and wages. Jobs have recovered slowly from the 2008 crash; wages have flatlined for a decade. Candidates should be talking about jobs and wages.

Some want to turn money over to what they call the “job creators” – fabulous, fairy tale language. When taxes were cut to the 1%, the great bulk of that money didn’t finance jobs, or even trickle down to the rest of us. The 1% used it for finance, to jack up asset prices, buy and sell companies, close factories and outsource jobs abroad, or build McMansions, everything but better lives for American workers, who put in long hours at multiple jobs, with little to show for it but worry about the future. Creating jobs by lowering taxes hasn’t worked for decades because we already did it decades ago; now it’s become a fairy tale told for the gullible. It’s amazing the demonstrable nonsense that people can convince themselves of.

Our society insists it’s everyone’s personal responsibility to find work. As a legal aid lawyer, I worked closely with unemployed, mostly African-American clients. I felt like I was watching them die. Losing a job left them feeling worthless; nothing was more deeply hurtful or more threatening. With little to tide them over, they lived where they could afford housing, far from jobs, without cars to get to interviews or available work, or any network of employed friends to point them to possible jobs. On-the-job training left them few transferable skills, and parents struggled to find affordable day care. The more they needed work, the harder it was to find a job.

We had a fellow do odd jobs, yard work, pick up bottles and cans for the deposit, after losing his last job for lack of transportation. A lawsuit for unrelated injuries got him enough to buy a car. Instantly he was working, steadily.

The stuff called tough love isn’t love but it is dumb. People without assets or work become vulnerable to doing anything just to stay alive. That affects all of us.

The unemployed cost us money, for unemployment insurance, because of the dislocation that unemployment generates, and for lots of police because we fear the jobless. They cost us money because of the decrease in property values, the poor prospects of their children and those who live in areas of high unemployment. We pay in the fear of going out at night or stepping on to the wrong street; and we lose the multi-generational workforce we want for our own programs and projects.

Any responsible business person would include all the costs to individuals and our communities in their balance sheet for deciding whether to support a job program. To evaluate the cost to each of us individually in taxes, compare it to the taxes we have to pay for not putting people to work, as well as the value of the work they could do.

The notion that all taxes are bad for us, is sloppy economics. Justice, fairness and safety are not trade-offs but different sides of the same coin. I’d put people to work rebuilding and improving the infrastructure and other needed projects. There are a lot of things we can do to boost the economy and provide jobs if we are not bamboozled by fairy tale language about what the princes would do for us if only they had even more money.

— This commentary was broadcast on WAMC Northeast Report, December 22, 2015.

 


Who We Work to Support

September 29, 2015

We’ve all seen bumper stickers that complain, “I work so welfare queens don’t have to” and other complaints about taking care of people in need. Conservatives, Republicans, Tea Partiers all tell us the problem is “entitlements.” And people are mad. They do not want to work to pay for other people’s entitlements.

Except it is impossible. The richest 1 percent in the United States now own more wealth than the bottom 90 percent.[i]  And the top 20% of American households, whose average income was around a quarter million dollars get the majority of Americans’ yearly income from all sources.[ii] So, yes, we work for others, but not for the people who are poor, unemployed or disabled. We work to support the wealth of the people who get all the money. They claim not to need our help, but only because they already took our money.

They want us to believe that’s just “natural,” that they have that money because they sold us such useful things, and whatever the market does is perfectly proper. But actually it’s because of all the tax benefits they have, so that Warren Buffet properly pointed out that his secretary pays a larger percent of her earnings than he does. As Buffet understood, that’s not natural. It’s the kleptomania of the rich, the people who control the lobbyists for themselves and their businesses and who finance the political campaigns of the lackeys we call congressmen and senators.

Their forms of income are protected – the top tax rate is no longer high but they still get a break for capital gains, deductions for all the lobbyists and accountants they pay to make sure they don’t pay their share of the tax burden, and the privilege of moving their money to tax havens. Of course they will lend back to government, at interest, the money they aren’t investing in job creating activities, the money they have protected themselves from having to pay as taxes like the rest of us.

It’s also because they convince their lackeys that their companies shouldn’t be regulated either; they should be allowed to monopolize markets so we’d fill their pockets faster, and they should get government help for the very financial vehicles they used to wreck the economy, instead of helping the people that they took advantage of in scams called derivatives, credit-default swaps and subprime mortgages. It’s all rigged and it isn’t you and me that are taking advantage of the system.

But their lackeys say they’re the job creators – indeed even while they are sitting on money they don’t think it worth their while to spend. That’s called chutzpah!

What’s worse, this is a vicious cycle – the rich control the politics so they can get wealthier and control the system ever more tightly. When does it reach a point when we no longer have a democracy? Indeed, what kind of democracy is it if all the candidates have to get the blessing of the enemies of the people.  Is that the democracy we fought for? And can we get it back?

— commentary was broadcast on WAMC Northeast Report, September 29, 2015.

[i] Nicholas Kristof, An Idiot’s Guide to Inequality, NY Times, July 23, 2014. See also Tom Kertscher and Greg Borowski (March 10, 2011). “The Truth-O-Meter Says: True- Michael Moore says 400 Americans have more wealth than half of all Americans combined”. PolitiFact.
[ii] The Distribution of Household Income and Federal Taxes, 2011, Congressional Budget Office Report, November 12, 2014, https://www.cbo.gov/publication/49440.

Follow

Get every new post delivered to your Inbox.

Join 368 other followers

%d bloggers like this: