Globalization and Democracy

August 27, 2019

Amy Chua wrote World on Fire two decades ago, arguing that globalism and democracy would collide by bringing out ethnic and religious resentments around the globe. She identified animosities country by country that would explode when times got tough.

Many of us connected economic and democratic health. In hard times people look for scapegoats and blame each other. I’ve gotten jobs from and lost them to people of other races and genders. That’s normal and goes both ways but I did fine and don’t need to blame anyone. Many who don’t feel as well are looking for reasons.

Chua’s analysis isn’t destiny. Unions in Hawaii realized workers would do better if they were united. Hawaii developed a lovely multi-cultural society as a result. But Yugoslavia came apart in rough times. I fear the European Union and the United States can come apart if we engage in an orgy of blame.

Franklin Roosevelt focused on creating jobs in the 1930s and World War II finally pulled us out of the Great Depression. John Maynard Keynes explained that, when an economy is in the doldrums, spending and investment, by government, industry or consumers, pulls the economy out most effectively. Democrats have worked with his ideas ever since and the overall, national, economy has done well with Democrats in power, particularly when Democrats had a strong labor union base focused on workers.

But capitalism is built on creative destruction. Miners’ desires notwithstanding, other industries have been replacing coal for most of the twentieth century because coal dust and soot blanketed cities, killed plants and got into people’s lungs. The process accelerated recently as more sources of heat and power became available. It’s a benefit that capitalism allows shifts like that but also a problem that capitalism makes workers pay the greatest price for such change. Macroeconomic, Keynesian thinking helps but it doesn’t solve the harms to specific groups of workers who’ve lost out through no fault of their own. More is needed.

Republicans view the economy differently, particularly since Ronald Reagan became President, focusing on supply side economics which stresses putting more resources in the hands of companies, entrepreneurs or so-called job creators. Unfortunately, supply side economics leads Republicans to ignore what business does with money, hoping that enough will be used to create jobs at home. But business also uses their money to outsource to foreign countries, buy stock back, build monopolies and the like, which don’t help American workers. Business helps American workers when they find demand for what American workers produce. That’s not automatic.

So supply side economics leads Republicans away from strategies that would actually help workers and aggravates hard economic times that tend to push workers to fight among themselves for the available jobs. Under most conditions, supply-side economics is a smokescreen for policies that make things worse. Staying away from anything related to supply-side economics is much better for workers, brotherhood and labor unity. But the alternative Keynesian economics isn’t enough.  There is a gap with respect to finding work for areas which have lost their main industries.

To save our democracy, it’s crucial to get across what actually will help American workers and what won’t. That’s why the argument over government projects, like rebuilding infrastructure, is so important.

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The “Caravan”

November 13, 2018

Only Trump could turn a line of destitute and terrified people walking thousands of miles in hopes of finding safety in the America that all admired until recently, into a caravan of desperados bent on breaking laws, robbing, stealing and raping Americans.

Actually that’s wrong – the last time I know of was when Gen. Douglas MacArthur ran the bonus marchers off the mall in Washington, D.C. The bonus marchers were veterans of World War I, trying to survive the Great Depression. They came to Washington to petition their government to give them their promised World War I bonuses a little early, since they were desperate and destitute. Disobeying orders, MacArthur ran them off. MacArthur disobeyed four presidents until Truman finally fired him for insisting on widening the Korean War into China.

But the Bonus marchers and the Caravan both remind me more of John Steinbeck’s Grapes of Wrath – farmers who lost their lands to the banks after drought, the dust bowl and the Great Depression made it impossible to farm or earn a living in those farming communities. They joined a sad and sorry march from Oklahoma to California. They were farmers, not thieves or rapists. But they were vilifield as beggars. Oakies, originally meaning from Oklahoma, became an epithet. To the loss of their income, the loss of their farms, often the loss of their families, they now added the loss even of human empathy. Cold and hungry, the migrants gathered in shantytowns they called Hoovervilles, named for the president in office when the Great Depression began. They lit fires in steel drums to keep warm. I wish Steinbeck had written a sequel. He described great suffering and often death. Yet some percent of them survived and eventually melded into the population of California.

I thought we had outgrown demonizing the homeless and destitute, but not Donald Trump.

I thought we had outgrown running off the homeless and destitute like vermin, but not Donald Trump.

I thought we had learned that the problems of massive unemployment are not the workers’ making, but not Donald Trump.

I thought we had learned that farmers who’d lost their lands, shopkeepers, factory workers and miners who lost their jobs, were decent people suffering from forces beyond their control, but not Donald Trump.

Come back John Steinbeck and remind us all of our humanity.

Come back Franklin and Eleanor Roosevelt and show us how to care for our fellow human beings and build a better world out of love and compassion.

Come back America and show a large heart to each other and to the cold and desperate trying to reach the safety of our shores.

We can do it. There is no economic reason why we can’t. We could get to work rebuilding our infrastructure and make plenty of work for everyone. This is America. Si se puede; yes, we can and be stronger for it.

— This commentary was broadcast on WAMC Northeast Report, November 13, 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.


The Economy and Those Left Behind

March 15, 2018

President Obama brought the economy back since the 2008 crash, and it grows steadily. But the rising tide didn’t lift all boats. Places like West Virginia, heavily dependent on coal mining, were left behind. I’ve taught there, knew coal mining families, shared a hospital room with one and a lovely boy in elementary school who obviously had very good taste took a shine to our daughter. I have very warm feelings about the state and am quite sympathetic.

But everything moves on. Since we lived there, coal has been reeling from competition with new forms of energy, competition from China, conversions from coal fired furnaces, and competing objectives that couldn’t be wished away, like cleaner air. China sells coal rather than burn it. So there’s little left for coal other than pandering to people with impossible dreams about irreversible changes.

Steel has become very specialized. We still produce but not all needed varieties. And production is much more automated, needing fewer, and different workers from the historical steelworker. Some steel producing communities, like Pittsburgh and Cleveland, have revived. But many capable people haven’t found comparable work in new and different industries.

They deserve consideration. Capitalism throws people away in the name of progress like so much garbage when their jobs disappear. People talk about risk as if it’s what entrepreneurs have. Actually, capitalism puts as much risk on workers, consumers and home buyers as legally possible, on those who had no responsibility for corporate failures, or the catastrophe of 2008, while it protects the financiers and CEOs. People we sometimes call average Americans or little people (regardless of their physical size) take it on the chin so that we can protect the people with the money, lawyers and control to protect themselves. American workers deserve our support.

But how? Many ideas are capable of relieving some of the distress but few will solve the problem. Trump’s tariffs on steel and aluminum will make former factory families feel taken care of. But as many economists have been pointing out, tariffs can do a lot of harm.

Education and retraining help some but it’s particularly hard for older workers to take advantage of the opportunities, often in distant places. Internet access connects some workers to distant jobs. Efforts to bring jobs to people are often based on wishful thinking – the casinos already seem to be turning into boondoggles. Some people come home for weekends from distant jobs but that’s hard to scale up without much better mass transit. Government sometimes puts programs or office buildings where they will strengthen the local economy like New York did some years ago in Harlem. Meanwhile infrastructure remains talked about and unfunded.

There are ways we can help share the wealth and should. We have to expect some good ideas to fail and some bad ones to succeed. I suspect that Trump’s tariffs will sound much better to the unemployed than what they will produce, and I think there are better solutions that a sympathetic government could develop. But yes, we should be helping.

— This commentary was broadcast on WAMC Northeast Report, March 13, 2018.


Nuts, Liars, Suckers and the Rube Goldberg Disease

November 28, 2017

I just heard that Jeff Bezos is worth $100 billion. What is he doing with that net worth? Is he putting it all to work? If not, why not? Ya think if we just gave Jeff another billion he’d put that money right to work putting Americans to work? Why can’t he do that with the $100 billion he already has?

Republicans keep telling us that if they give tax breaks to the wealthy they’ll put it to work, like another billion for Bezos. They have to be either nuts or liars. If you like nuts or liars, that’s your business. But the question is whether we are suckers.

Republicans want us to give the money to people who don’t need it in the hope that now, with even more money they don’t need, they might decide to go to the trouble of running another business and the other business would be somewhere in America and would use people and equipment made in America, or they might find others, like venture capitalists who might use the money in, by and for Americans.

Rube Goldberg, a giant of comedy who died in 1970, certainly would have gone that route in his satirical cartoons. Webster’s New World Dictionary defines Rube Goldberg as “a comically involved, complicated invention, laboriously contrived to perform a simple operation.”

The Rube Goldberg website describes “A Rube Goldberg contraption” as “an elaborate set of arms, wheels, gears, handles, cups and rods, put in motion by balls, canary cages, pails, boots, bathtubs, paddles and live animals – [which] takes a simple task and makes it extraordinarily complicated. He had solutions for How To Get The Cotton Out Of An Aspirin Bottle, imagined a Self-Operating Napkin, and created a Simple Alarm Clock – to name just a few of his hilariously depicted drawings.”

Sound familiar? We could give large tax breaks to people and companies that don’t need it on the prayer that they would use it in helpful, constructive ways, and provide decent, useful jobs to Americans.

Or to get the economy going, nationally or locally, we could just do whatever was needed. Instead of praying someone else would do it with unseemly incentives, we could build roads, bridges, updated electrical grids, schools, universities and water systems, all of which would employ lots of people and provide the resources people and businesses need to function. We might even organize cultural attractions that make places more fun and attractive. Just last week the Times had a front and multipage article on the ways the New York City subways have been starved of maintenance dollars. We’re always postponing maintenance but what do we get for that – paying the rich more for the privilege of being their patrons?

People who tell you that we have to give tax breaks to people who have money lying around that they already don’t know what to do with are either Rube Goldberg creations, nuts or liars. If you like nuts, OK. If you like liars, that’s your business. But the question is whether we are suckers.

— This commentary was broadcast on WAMC Northeast Report, November 28, 2017.


Beggars, Soup Kitchens and the Poor

November 25, 2017

I’ve noticed a lot more beggars on the streets as our politics have become increasingly stingy. I’ve seen that before and once mentioned it to a candidate for dean. His response was that we could ban them. I was happy we didn’t hire him.

Recently I saw one of my former students at a charitable sale at our Temple. She told me she frequently works at a soup kitchen and has been doing it for some time. Bless her. I mentioned the people standing out in the cold. She commented that more people come for meals during the summer. She suggested several possible reasons but wasn’t sure why. A couple of days later, Chris Shaw, who has also been cooking for and organizing soup kitchens, told me the difference is the school lunch program. The kids are hungrier during the summer, without lunch at school.

Recently I flew to L.A. on business and arranged to see Mitch Tarighati, another former student. He asked me what I wanted to see or do. I told him I was curious and wanted to see Tehrangeles, an area of Los Angeles populated by Persian shops and restaurants. My friend is Iranian-American, Muslim, a lovely guy and doing well. After showing me around, he took me to another area, looking for the beggars to help out. He tried to do it anonymously so they would not be embarrassed by his generosity. Actually, I think the poor appreciate eye contact, but my friend’s motives were pure gold.

Nobody stands on a street corner for hours for their health, especially in this weather. I’m satisfied they are in need. Begging is an equal opportunity task – white, black, men, women, people recovering from tragedies, girls who ran away from home, veterans, the disabled.

It used to be that political parties took care of people. They’d call one of their people and say so-and-so needs a job. In the Great Depression of the 1930s, the Roosevelt Administration created programs to help the needy. But we’ve been taking that apart and little remains. Now it’s largely up to us, except that it’s beyond us.

That’s why I often discuss economic issues. We no longer talk about giving people jobs. It’s all about that impersonal force known as the economy. But the economy is heartless. And what we do for the economy doesn’t necessarily create jobs for the needy.

My family and I have been lucky. We’re celebrating 50 years of marriage. Our children are each doing what they enjoy. Our granddaughters are healthy. I’m conscious that those are blessings too many don’t enjoy. Luck doesn’t just come to the worthy nor tragedy to the evil.

I once commented in class that I understood that but for luck, or the grace of God, I could be in the position of the least among us. One student found that hard to accept. I think she was kind but naïve. My heart goes out to the less fortunate people out there struggling to keep body, soul and family together.

There are many ways to help. And we need to remember that the poor are with us all year.

— This commentary was broadcast on WAMC Northeast Report, November 21, 2017.


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.


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