Against whom the rebellion?

November 8, 2016

This is my last chance to talk with you before the polls close.

Republicans have argued since the 19th century that the market solves all problems. Democrats by contrast solve economic problems by investing in the people and the infrastructure they need to get their work done – things business can’t partly because of competitive pressures and partly because they can’t reap the benefits of projects that help the general public.

Because getting things done requires both the president and Congress, split government favors the Republicans. Democrats need both branches and both houses of Congress to pass the laws  that make their economic programs possible. Looking back to 1994, there have been only four years in which Republicans did not control at least the Senate.

There is a well-justified need to rebel against the way the economy and the government have been treating you, and the Republicans should bear the brunt of that rebellion.

They insist that investors would use tax breaks to create new jobs in this country. In fact, tax- break beneficiaries can invest the money anywhere. So when Republicans give wealthy businessmen more money, we just get the risk. Their friends get tax breaks; workers get laid off. Their friends close factories; workers look for jobs. Their friends freeze wages; workers look for second and third jobs just to keep going. Their friends downsize for efficiency, leaving workers unemployed, unhappy, and looking for a way to earn a living.

The economy is organized for the guys on top. Dealing with it, making America truly great for all of us, takes more than the Republican nostrum of lowering taxes. Businesses invest where they find markets, workers, infrastructure, and where they’re attracted by the comfort or the cultural life for themselves and those they want to hire. Taxes have little to do with it.

That’s why Obama’s and Hillary’s investment in infrastructure and emerging industries is a better deal to create jobs and opportunities for everybody. There are many reasons to invest in America – unless we let it fall apart, let our infrastructure crumble, and don’t keep it up to date.

Whether Trump understands real estate, where he’s managed to lose lots of other people’s money, Trump clearly doesn’t understand the economy. The old trope about taxes won’t grow the economy. And his promises are cynical because people won’t invest in outdated, high cost, low return industries when there are better opportunities, no matter how much he yells about it.

Which gets back to something else Trump doesn’t understand. Government needs to work on shifting the risk, to make it easier for the vast majority of Americans to find new sources of income, if necessary to move where the jobs are, on more than a hope and prayer of avoiding homelessness. That’s not in the big generalities that so-and-so will fix things. That’s in the details. You work on those; you study those; the job isn’t all in the bluster.

We’ve had enough of Republicans blocking every effort to build the economy, protect its workers and take care of all the people. It’s time for a smart rebellion – not a wild swing with eyes closed.

So do vote if you haven’t already. It matters.

— This commentary was broadcast on WAMC Northeast Report, Nov. 8, 2016.


Suckers for Trump

May 31, 2016

Let me begin by reminding you of Trump’s claims,[1] and end with some questions.

“I’m totally pro-choice” he declared and then took it back: “I’m pro-life” and told MSNBC that “there has to be some form of punishment” for a woman who has an abortion, later modified that only the doctor should be responsible. Plus he supported Planned Parenthood, and defunding them.

Remember the poor woman in Providence whose house was taken under eminent domain? “Eminent domain is wonderful” he told Fox News, and within a month told another outlet, “I don’t like eminent domain.”

He told CNN “I’m an environmentalist,” but tweeted “Global warming is a total, and very expensive, hoax!”

He once “support[ed] the ban on assault weapons and … a slightly longer waiting period to purchase a gun.” but “I don’t support it anymore.” Now he says he’s “the strongest person running in favor of the Second Amendment.”

In 2000 he said “We must have universal health care” but his campaign website read “It is not enough to simply repeal this terrible legislation,” and says he’d substitute “free market principles” on health care.

On taxes, in 2015 he described his tax plan as “a big tax reduction, including for the upper income.” On May 5 he told CNBC “I am not necessarily a huge fan of” cutting taxes for billionaires.

It’s not clear who Trump likes as people. First he refused to denounce the Ku Klux Klan and other white nationalists supporting him. Under fire he reversed course but many white supremacists, including David Duke, continue to support Trump. He’s blown hot and cold on refugees: “on a humanitarian basis, he said, “you have to” take in Syrian refugees. But now he wouldn’t. “I love Hispanics!” he tweeted on Cinco de Mayo, pictured with a taco bowl. Except of course that he wants to build a wall and send them all back to Mexico.

Donald thinks military policy is a cinch, “It would take an hour and a half to learn everything there is to learn about missiles. … I think I know most of it anyway.” He waffles on whether he would trust the Russians or not. He liked NATO, the North Atlantic Treaty Organization, which unites Europe and the U.S. militarily. “I see NATO as a good thing” he said recently but six days later decided “NATO is obsolete.”

The Middle East befuddles him. He supported invading Iraq. and crowed that “It looks like a tremendous success” but four days after that said, “The war’s a mess.”

He supported fighting in Libya: “Qadhafi in Libya is killing thousands of people, nobody knows how bad it is, and we’re sitting around, we have soldiers, all over the Middle East, and we’re not bringing ‘em in to stop this horrible carnage. … We should go in, we should stop this guy, which would be very easy and very quick.” But he said later, “I never discussed that subject.… We would be so much better off if Qadhafi were in charge right now.”

What are we supposed to make of Trump’s contradictions and about-faces? Does the adjective he uses endlessly to describe Hillary fit Trump better? Does he know what he’s talking about? I’m more interested in how we decide what he’s for? He’s inviting people to buy their own dreams. Whatever you’re for, he wants you to think he is too. Selling people their own dreams is a great sales tactic. It’s natural to believe others think like us. But if we guess wrong, who wants to be Donald’s sucker?

— This commentary was broadcast on WAMC Northeast Report, May 31, 2016.

[1] Clips collected on http://www.politico.com/magazine/story/2016/05/donald-trump-2016-contradictions-213869;  Michael P. Lynch, Truth, “Politics and the Power of Contradiction,” New York Times, May 8, 2016, at SR2, available as Michael P. Lynch, Trump, Truth, and the Power of Contradiction, http://www.nytimes.com/2016/05/08/opinion/sunday/trump-truth-and-the-power-of-contradiction.html?_r=0; “A Trump Sampler: His Changing Views,” New York Times, May 8, 2016, on page SR2, available at http://www.nytimes.com/interactive/2016/05/08/sunday-review/a-trump-sampler-his-changing-views.html.


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.

 


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.

How America Would Handle Greece

July 14, 2015

What are the lessons from the Greek crisis? Their economy had major problems. People with plenty of money weren’t bothering to pay taxes. And the Greek government provided benefits beyond its means and beyond the pace of investment to maintain. So the EU was certainly correct that Greece had problems that Greece has to deal with. But that’s not the whole story. Greece needed multiple remedies, to cure its mistakes but also to stimulate its economy.

Think about what we do in America. Periodically states are bankrupt or depressed. We don’t offer secession or a sale to Mexico. We didn’t ignore problems in Appalachia, Arkansas and other struggling states. Within states, we don’t ignore depressed areas. Sometimes we put communities in receivership, but that’s not our only tool. Although Tea Party Republicans don’t want to recognize it, we do have another American strategy – we invest. The Cuomo Administration is investing in areas around colleges and universities, spread throughout the state. We’ve had business empowerment zones. Military bases have been used for economic purposes. And we build infrastructure or housing or convention centers. Some investments are unwise wishful thinking. But the instinct is shared, American, and, used intelligently, it works. Conservatives don’t like to admit the Keynesian economics behind it, but they use these techniques wherever they are in control. They just call it good business.

States are barred by the Constitution from printing money. If Greece exited the Eurozone, it could issue currency or pay its employees with i.o.u.s for use as currency. Either way a devalued currency could make Greek goods and services worth buying.

Greece’s finance minister accurately explained that austerity deepens recession. The EU has responded with the same economic strategies that had been discredited before the Great Depression of the ‘30s. If the economy shrinks in response to austerity, nothing is left to pay debts, much less to invest. For an economy in trouble austerity alone is the wrong prescription at the wrong time for the wrong disease. It works only if the desired outcome is to kill the patient. Unfortunately, the EU hasn’t used other tools needed to deal with the recession.

The lesson here is the contrast. Cutting expenses cannot be the only tool. Investment works. Infrastructure, science and educational investments work. Congressional conservatives are too skittish about investing in America. They need to do what their own state governors do – invest in economic development. There is plenty of room in the U.S. for investment that will contribute to the American economy. Intelligent public investment can yield multiple rewards: the immediate reward of assisting people get back on their feet, the return of some of that money as taxes, and the longer term rewards of facilitating business. That is the virtuous cycle that every good economy needs.

Neither taxes nor tax cuts automatically yield economic benefits. Cutting business taxes will probably not raise the chances of business investment if they are already sitting on money. Cutting personal taxes won’t put us on the road to recovery to the extent that consumers buy abroad. The devil is in the details. But the visceral objection to all investment by government because it is government needs to give way to a more intelligent discussion of the investment we need and the investment that will pay dividends for years.

— This commentary was broadcast on WAMC Northeast Report, July 14, 2015.


Band-aids or Systemic Change

July 1, 2014

Let me try to put some things in perspective. I spent a decade in the Legal Service Program which provides lawyers for the poor, first as a store-front lawyer, then in the management of programs or running a clinic. One of the recurring issues we used to debate was whether to focus on what we called “band-aids” or systemic change.

Band aids were individual relief for individual clients, generally much easier to get, but taking quite a lot of time for the few people we could help. It was important work, very satisfying and very frustrating at the same time because we could never make a dent in the needs most of our clients had that way. Read the rest of this entry »


Passover – The Indivisibility of Freedom

April 15, 2014

This is Passover, a holiday that comes straight out of the Bible, the Almighty commanding us to tell the story of the Exodus to each new generation as well as reminding ourselves. The Exodus, of course, is a story of freedom from slavery. The Biblical story is about the Hebrew exodus from slavery in Egypt. But we are very explicit about relating that story to the freedom of others. Read the rest of this entry »


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