Capitalism gone wrong: Too many left behind in our divisive economy

September 19, 2017

My latest piece for The Hill discusses the set of unacceptable choices we’ve been stuck with: thinking only of national economic growth and ignoring the local fallout, maintaining industries that do national damage for the sake of local workers, leaving the workers to fend for themselves when industry departs their communities, or moving able workers to better jobs but leaving the rest in dying towns. Each of those choices is both morally and politically unacceptable. Liberals must find more compassionate solutions.

 

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Taking care of each other

September 5, 2017

Americans have been celebrating the reaction to Hurricane Harvey as an example of Americans taking care of each other. There is much to celebrate. But we have also wrestled for centuries with the problem of taking care of each other – the out of work, the working poor and others struggling to stay afloat.

An economic reversal in the lives of many of us is just temporary. But it does permanent damage when it unravels peoples’ lives, leaves them with debts that spiral out of control so that they cannot hope to pay, or leaves them homeless, in broken families, or housed in barred cells. When people have little, events that would be a minor inconvenience for most of us can drop them over the cliff, unable to climb back. As the Founders recognized, all of us can expect some of our offspring to be poor. So what are the options?

Welfare has been cut back but some pieces of a social safety net remain, mostly funded by the federal government. One reason they are funded nationally is because some local governments don’t want to do anything about the problems of poverty. Another reason is that the problems fall unevenly on local governments. The process of creating suburbs and new communities is a process of seceding from the places where people have problems and therefore avoiding any responsibility under our laws about local government. By shifting the obligations upward to the feds we all share those problems at least to some degree.

We could provide jobs. Instead of just giving things and money out, we could take advantage of the time, labor and skills of people who are otherwise out of work, to get some useful things done. But the city can’t save the money that goes into the social safety net because that money isn’t city money. Albany’s Mayor Sheehan pointed that out at a house party before she was first elected. Fair point. But turning welfare money over to localities would invite them to divert the cash. Some form of cooperative federalism might be better for everyone.

Public services for everyone are also an option. We have created many sorts of services that all of us have rights to. Clean water fit to drink is a lot cheaper for everyone than buying it in bottles – provided that government isn’t asleep at the switch and doesn’t let the water supply fill with lead and other poisons. Sewage systems make everyone better off than a crazy quilt of individual efforts to deal with garbage, their own and their neighbors. And it saves a lot of money both because of economies of scale and because sewage can breed disease for all of us. Roads, bridges, sidewalks, other transportation amenities, libraries, postal services and regulated public utilities like phone and electrical service make life better for everyone. And all of them make life cheaper which is especially important for the impoverished.

In other words, making some things available for all of is good for us all and are also ways of helping the least among us. That used to be true of the health care system until we privatized it, demolished the many county, municipal and not-for-profit hospitals, only to try to restore some of the benefits of a public health system with Obamacare.

Republicans call measures like that socialism. I just call it smart, efficient and decent – Americans taking care of each other.

— This commentary was broadcast on WAMC Northeast Report, September 5, 2017.


The Future of Jobs

April 18, 2017

Automation is changing the workforce. It creates some highly skilled jobs but eliminates many others, from service jobs like taxis to previously professional tasks like document review. Factory jobs are decimated by automation.

The industrial revolution was largely built on repetitive factory production lines, based on physical dexterity, repetition and obedience, not higher education. Automation handles repetitive tasks well. Eliminating them affects people very unequally.

How can we deal with that change? The historic Republican free-market approach, now pushed by Tea Party Republicans who control Congress, is that it’s none of our business.  For them, it’s every man, woman and child for him- or herself. Millions in breaks for big corporations and no security for the workers whose lives and livelihoods are the playthings of  markets, financial institutions and corporate interests. But woe to countries that forget their people, engulfed in power struggles and bloody civil wars with the fate of ordinary, hard-working and decent people as talking points and engines of recruitment.

Some jobs have been divided into a large class of “aids.” In Iran everyone from middle class up had a bagi, their term for servant. It’s a world of dependency, power, and deep social division, a world in which people can be taken advantage of. The market, so sacred to the ideologues, is pushing more and more people to join the service economy as maids, waiters, servants and sometimes as sex workers.  Notice the contrary pressures on the women’s movement, with some vying for the few high-end jobs and others being pressured into demeaning and dangerous activity.

We might share good jobs. Labor unions once looked toward a five-hour day. Or we might create jobs, keeping everyone busy and satisfying more of the community’s needs, from building and repairing bridges, roads, water systems and electric and internet grids, to watching over playgrounds. But actually we’re going the other way. Jobs that can create opportunities are being dropped. The pressures are all on workers to find or create ways to survive. We all feel the taxes but don’t notice the benefits.

I see our separation by wealth, color and origin blinding us to common problems. John Adrian Witt, a Yale historian speaking at Alumni House last week, sees organizational failure, like the 1920s before unions and public service organizations finally jelled, leading toward the New Deal reforms in the 1930s.

The New Deal gave us a powerful administrative state, capable of opposing and controlling corporate greed that demeaned and poisoned workers with dangerous equipment, noxious chemicals and contaminated foods. But that effective administrative state became the Republican target, stated theoretically as “regulation” – regulation everyone can be against unless broken down to the safety and honesty it is designed to protect.

There is also an ideological issue, especially when the unchecked power of the market is pushing the public to turn on each other and itself.

Workers are entitled to security. Graduates of high school, colleges, and universities are entitled to good jobs. Our job should not be to ask workers to justify their lives to the market; it should be to employ people to make a better America, much as the New Deal of Franklin Roosevelt founded the Civilian Conservation Corps, the Works Progress Administration and many others. We can support each other, and make a better America for all of us. The market isn’t the answer; the market is the problem. When it doesn’t do what we need, we need to do what it screwed up.

— This commentary was broadcast on WAMC Northeast Report, April 18, 2017.


Trump and Jobs

March 14, 2017

Last week I commented that scholars of intolerance tell us that feeling threatened often leads to hate. That’s one reason the economic threat to some American workers matters to all of us.

Trump is clearly working with the free marketeers. The free market is not about your, or workers’ rights; it’s about your boss’s or your company’s right to close your plant, move, lower your wages, reject your union, or just skip protecting your safety.

Trump makes different noises when talking about your jobs and when writing rules and hiring his cabinet. But his Republican Senate will insist on a free market, and Trump is counting on it.

Trump told us he wants to eliminate 75% of regulations. Those regulations protect employees and consumers; in other words, you and me. They protect our wages, require safer working conditions, ban poisons from our food and water and require companies to give us what we paid for. That’s how Trump shows us his true colors.

Obama saved thousands of jobs by saving American auto makers and growing the economy by hundreds of thousands of jobs per month – but gets no credit. Trump may have saved a few hundred but people think he takes action. With victories like that we can all starve.

Trump’s focus on the optics of small victories keeps us looking the wrong way. U.S. factory output is growing. But the jobs have changed. Missing are factory jobs for poorly educated people. I don’t say that out of disrespect. My Uncle Hershel, a truly lovely man, was a factory worker. I remember him sitting by my bed when I was ill. What I’m talking about is how to get good jobs for people like him. If we expect jobs to show up the same way they did a century ago, we’re whistling in the wind. If we think Trump can trump marketplace change by jawboning a few companies, we’re spitting in the wind. He doesn’t have the time or tax cuts to do it that way.

Central New York was once a manufacturing powerhouse. What’s left are mostly small towns far from traditional jobs. Yet one can now work thousands of miles from where things have to be made or done. We could be linked in to the world IF we invested in and rebuilt the economy, instead of jawboning the owners of obsolete factories.

And education must be available and affordable for everyone who wants a good job. Education sounds like elitism to many workers. But what made America an economic powerhouse was our system of mass education. And that’s part of why those who think we can go back to a prior era of American greatness are spitting in the wind – the rest of the world has caught up. To provide jobs, we need to provide retraining for mid-career workers on top of excellent schools, pre-school and after-school programs – all of which provide jobs.

Yes education will have to change. I’m a dinosaur, standing up in front of a class of students, even though the alternatives, so far, are not working very well. But when people figure out better methods, education will take off again – here or elsewhere. That’s where we need evidence-based experimentation – science. We rely on science from morning till night for the things we touch and use. Denying science is the height of idiocy, not a mark of greatness.

Trump yells about foreigners and markets. It’s our job to address reality.

— This commentary was broadcast on WAMC Northeast Report, March 14, 2017.


How Can We Protect American Workers

March 11, 2017

Trump’s power, and his policies on jobs, immigrants, religious and ethnic hatreds and the Alt-wrong are all related.

Scholars of intolerance tell us that threat breeds hate. I suspect that all we can say about why immigrants and Muslims are really good people only makes those who feel threatened feel more threatened, because instead of talking about their needs we’re praising someone else.

So I want to talk about the needs of Americans who feel threatened economically and what can be done regarding their economic losses, recognizing that the disfunction in American politics is partly due to the desperation of workers who’ve lost once good jobs.

Protecting American workers is crucial both because people suffer when they can’t find good jobs, and because desperate or threatened people take dangerous risks at the polls and elsewhere. We must protect workers both for their sakes and for ours; it’s much the same thing.

It’s our job because government fiscal, tax, programmatic and other policy decisions daily determine how many jobs there are. Some people can make their own opportunities, but, to be fair, most good, decent, hard-working people can’t.

What can we do about it? Sometimes it helps just to set out the options. Here are the choices I can see:

FDR created unemployment compensation and Nixon proposed a negative income tax – safety-net approaches based on direct income transfers. Many object, including those who benefit from handouts, tax loopholes, deductions, farm price supports, subsidies etc. – the tax code and the budget are replete with them. But direct financial transfers are one possibility.

A second approach is to pay for jobs indirectly through trade policies. All three presidential candidates talked about that. I understand the fear of foreign competition even though there are reasons to look for other solutions for American workers: limiting foreign imports hides the cost in the price of things we buy, and isolates the American economy from developments elsewhere. It also might not work; actual hiring decisions would rest on other people’s decisions. But we can’t overcome the fear if we can’t commit to other steps, and all the talk about the risk to Social Security fans that fear.

A third approach, the conservative free market approach, is not really a solution for the working person at all – it simply puts the monkey on workers’ backs to find jobs or starve.

A fourth approach is to create new jobs by government action – fiscal stimulus, infrastructure development, and investment in science and education, all of which call for construction, maintenance and technical jobs. That’s what Obama called for but Congress drastically whittled his effort down.

Why can’t government be employer of last resort? That would automatically support a minimum wage, create better communities, and make life better for all of us. It’s not the free lunch some people worry about; it’s a job. What’s so terrible about giving people what Tom Paxton called “a job of work to do”? There’s plenty to do if we were willing to invest in our people, our workers, our infrastructure, and our environment. Sometimes spending a little can make the community more attractive and the economy zing while providing a decent income to people who need a job.

Some countries use all of those methods and have quite robust economies.

Those are the alternatives I can see: the free marketeers’ defining it away as the workers’ problem, the safety net approach of income transfers, paying indirectly through trade policies or subsidies for the appearance of helping workers, or creating jobs through fiscal stimulus or hiring people to do needed work. My preference is to put people to work – that way protecting others is good for us all. One way or the other, standing up for each other is essential.

— This commentary was broadcast on WAMC Northeast Report, March 7, 2017.


Labor Economics

February 14, 2017

The White House isn’t explaining what’s happening to jobs. I once taught labor economics, an issue close to my heart. To some extent, labor is like any other commodity and that’s the problem. Jobs go wherever business can find all the things it needs – the land, transportation, materials, markets, reliable legal relations, at the right prices. And it keeps changing.

We talk about the rust belt as if we did something wrong. Actually we had about a century-long run on the best factory jobs in the country – a ribbon through this state after New York’s government built the Erie Canal and made New York City gateway to the west, turning every city along the Hudson, Mohawk, Erie Canal, and then the great Grand Central Railway into a powerhouse. This area long dominated clothing, technology, science, heavy industry and spawned radio and television networks. Each industry provided resources for newer ones.

But New York’s advantages couldn’t be permanent. For bigger plants with newer methods, business looked for virgin land. Other governments built ports, the Interstates and St. Lawrence Canal, while the aging infrastructure of older cities led firms elsewhere. It couldn’t be permanent. Economic fundamentals inevitably dominate jawboning and presidential rhetoric.

Workers get cast aside unceremoniously. One of my law students was also a human resources specialist at GE, missing class whenever GE announced layoffs. They had long since let the weakest workers go. Now she had to fire the best and it hurt. But big corporations aren’t sentimental.

What’s a city or region supposed to do? The market doesn’t automatically find the next big thing and put it where former employees can get jobs like those they lost. The market didn’t build America automatically. Government changed British rules. Government built a banking system with resources to fund business, and smooth their cash flow – if you read or saw Hamilton, that’s what he was about, government providing what companies couldn’t. Government built ports, canals, highways, and had the railroads built. Government provided public health facilities, water, sanitation, disease control – which became crucial for business. Government invested in schools, and President Lincoln laid the foundation for the modern state university system. President Wilson sparked the country’s first broadcasting system for the war effort. Almost everything in your hands today has government fingerprints on it – the research and development in fundamental physics that led to the lasers, transistors and chips that run almost everything today.

Yes, governments make mistakes. You think private industry doesn’t? Most businesses fail. But only government can provide the fundamentals, the things that all the businesses in the country, region or route need. Only governments are motivated to look beyond individual companies and work for the region.

Governments have been investing in new forms of power. If governments in coal producing states had the sense to invest in emerging industries instead of dying ones, the coal miners might face a much better transition to good jobs than anything presidential jawboning can produce. But government cannot do it if it is afraid to fail.

Governments need to be thinking about what the emerging industries are, what resources will support growth. Not individual businesses that any group of investors could build on their own, but the underlying fundamentals that make broad development possible. And we may only know which ideas work when we try them.

If government thinks small, we all shrink.

— This commentary was broadcast on WAMC Northeast Report, February 14, 2017.


Postmortem

November 15, 2016

I feel like I’m in mourning. The presidency has been taken by a con man and we all deserve better – those he’s duped as well as the rest of us.

  • Trump was “elected” by an “electoral college” system designed in the 18th century to protect slaveowners by augmenting their votes with 3/5 of their slaves.
  • He was “elected” by a Court unwilling to protect the voting rights of all American citizens.
  • As in 2000, when Al Gore won the popular vote but George Bush became President, the 2016 popular vote went to Mrs. Clinton. President Bush proceeded to make colossal mistakes in foreign affairs for which this country will spend a century paying.
  • Trump was elected with the votes of people who had suffered financially over the past two decades – but they voted for the very people who refused to lift a finger to provide jobs, people who don’t believe government should do anything, including good and important things, and for whom blocking anything Obama wanted to do was more important than helping fellow Americans. With Republicans benefitting from that cynical and deceitful strategy they are back in control of Congress. Good luck to the coal miners, autoworkers, steelworkers and others – they’ll need it.
  • We will now have a dirty old man in the White House as a “role model” for the worst behavior toward women.
  • And his rhetoric threatens to take apart the signal achievement of America – our mutual respect across faith, national origins, class, race, and counting – an achievement central to the status and future of the very people who voted for hate.

I am worried, crestfallen and embarrassed. What is there to do?

First, I have become a supporter of Supreme Court term limits. Rehnquist spent 34 years at the Court, Stevens 35, Scalia 30 and Thomas has been there 25. Erwin Chemerinsky, widely respected dean at the University of California at Irvine School of Law wrote:

The idea is that each justice would be appointed for an 18-year, non-renewable term. A vacancy thus would occur every two years. Vacancies that occur through resignation or death would be filled by appointing someone to serve the unfinished part of the term.

That way the Court would not be dominated by political decisions made decades ago.

Second, I would not confirm any new justice until there is agreement to reverse the decision that allowed states to monkey with their election rules to disenfranchise voters, and until there is agreement to adopt one of the mathematical rules that precisely measure gerrymandering, the level of favoritism to either party – known as symmetry or wasted voters. Some will object that those decisions are for the justices. Nonsense – the appointments clause is the political check and those decisions put the justices’ prejudices ahead of self-government and assured Republican victories, roles no judge should be playing. Those decisions were partisan, self-serving and should be ruled unconstitutional.

Third, we need to get across to people that refusing to vote because there is someone else we like better is a very bad choice because it has very bad consequences. In a democracy, to live and work together we have to be willing to compromise. It’s part of the deal.

Finally, we need to organize. 2018 is two years away and Congress will be at stake again. True patriots don’t give up.

— This commentary was broadcast on WAMC Northeast Report, Nov. 15, 2016.


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