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.

Advertisements

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.

 

 


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 Central Issue of Trump

March 20, 2018

Trump says and does so many things which are parts of much bigger issues, that it’s nearly impossible to keep up.

  • He has us discussing whether he’s going to fire one guy or the other, who does or doesn’t deserve to go;
  • Whether Trump will make war or peace and what country deserves our friendship or enmity;
  • Whether we will honor or dishonor treaties that he claims other countries violate, though no one else shares that view;
  • Whether he has a policy about infrastructure based on his saying things should be built or does not have a policy based on the empty line in his budget;
  • Whether he has conspired with an enemy of the United States, and whether the Special Counsel’s investigation should be shut down because he tells us that he did nothing that should be investigated, and whether it matters that he didn’t give Hillary that privilege.

It makes the head spin.

We’re heading in just a few years to an economy in which most of us won’t have steady jobs, pensions or unions to support us. Instead it’s everyone for himself all the time in the gig economy. Republicans insist that government and regulation are almost always bad. Who’s left to have our interests at heart? Reminds me of pastor Martin Niemöller on being sent to the concentration camps by the Nazis, “Then they came for me—and there was no one left to speak for me.” Is Trump for or against the workers when he says nothing about union rights and supports no change in working conditions other than tariffs for a couple of industries. And is Trump for or against a livable environment when he takes every possible action to degrade the earth, air and water?

We have been at war since 2003 but what do we have to show for it but body bags and amputees. Will Trump send more troops to die in the Middle East, or is he just bluffing to make people back down? But attempted bluffing will be ignored by people across the globe who have all lost confidence in what he tells us because we need only wait a short while for him to say the opposite.

Trump wants the Special Prosecutor, Robert Mueller, to stop investigating whether Trump or his campaign collaborated with the Russians in order to win the White House, or wants to fire Mueller and hire someone else who will close the investigation? Does it matter whether criminal defense lawyers may want their accused clients to have a right to choose their prosecutors and put a time limit on investigations, especially for such difficult prosecutions as those of organized crime, corporate finagling and international financial transactions. Can they cite the president for that right?

It’s enough to make one’s head spin. But there’s a way to simplify it. Forget all the separate issues until we have a president that actually cares about them, and focus on impeachment. Every one of those issues bears on impeachment, either because they relate to obstruction of justice, selling America out, self-dealing in foreign affairs or rewarding his favorite autocrats and wealthy friends at the expense of the people he swore to protect. His high crimes and misdemeanors easily exceed what Clinton was impeached over, threaten more damage to the republic than the misbehavior for which Andrew Johnson was impeached, and for which Richard Nixon resigned before the House could vote on articles of impeachment. Bring all these issues back to the fundamental question of impeachment. Dirty Donald, lock him up.

— This commentary was broadcast on WAMC Northeast Report, March 20, 2018.


Unions, Anarchy and the Court

February 27, 2018

The Supreme Court, the one in Washington, heard argument Monday in Janus v. American Federation of State, County and Municipal Employees. The case challenged whether unions, elected by a majority of the workers as their bargaining agent, can charge what are called agency fees, that is, fees for the work they do negotiating for better wages and working conditions. The argument against the unions is that the unions might advocate things that some workers disagree with and, therefore, worker dues are being used in a way that violates their freedom of speech.

The question is how far the Court majority is likely to take us toward anarchy. But first, three short paragraphs of explanation of the terms involved. Unions are selected in a carefully supervised process to be the exclusive bargaining agent for the workers in the shop. The union officers are elected in turn by the membership. The officers are always on those electoral hooks. The union can be decertified if people conclude that the workers no longer support that choice. And the officers can be defeated at the next election.

Unions are exclusive bargaining agents because a plurality of competing unions can’t represent the workers as effectively. Employers could just deal with compliant unions and leave the others out on strike. The responsibility to share the cost of the bargaining unit is necessary because without it, workers can be “free riders,” getting the benefits of their unions’ efforts while refusing to pay for it. That would undermine the unions’ ability to do their work.

From the perspective of the challengers to the part of union dues that supports collective bargaining and handling of grievances, those expenses are as political as lobbying and candidate support. For them, elections don’t matter, just whether union leaders say and act in ways that individual workers dislike. Their argument is that they shouldn’t have to pay.

So now I want to talk about the next case. Obviously many people object to the use of their tax dollars by President Trump to say things that they believe are horrendous, not to mention all the things he does that many taxpayers object to. Can they demand freedom from paying for his press officers and for any portion of his salary which is used for the purpose of making speeches, twits or statements. The logic is similar. The question is how far this union case can take us toward anarchy?

The same argument can be extended to the statements of whichever party opposes their own beliefs. Can taxpayers sue to defund all the press offices, and all the speechwriters, and the congressional TV studio?

There are problems with taxpayer suits. The Supreme Court might bar the door, but the principle is the same. And there are organizations and other parties who could probably make arguments that they are more injured than an ordinary taxpayer.

The same issues come up on the state and local levels too.

We might also raise the same questions about the Court itself. It is taking American law in directions many Americans strongly disagree with. There are costs involved in preparing opinions and publishing them. Do they also violate taxpayers’ First Amendment rights?

The Founders believed that elections solved the speech problem. But the Court views it differently. For the Court, corporations have First Amendment rights to speak for a majority of their boards, with the funds of their consumers. The dissenting board members, shareholders and purchasers, however, have no right to object to the use to which their funds are put.  Unions, by contrast, can’t speak for a majority of their members, despite the fact that they have available to them an electoral process that consumers don’t.

The logic of where the Court appears to be going is not law and order. Instead it is about anarchy. There is no law or government if each of us is a law unto ourselves, including those uses of speech that are necessary to the various jobs that officials and representatives have. There are anarchists in this country, and the gun owning, self-proclaimed “sovereign citizens,” are among them. The Republican Party, however, is anything but. Their party stands for social control. The issue for them is not authority itself but who controls what. Anarchy is anathema to majorities of both major parties and inconsistent with democratic government. But the Court may not understand the connection and the implications of what they are doing.


The Dagger in the Heart of Labor

August 15, 2017

Last week I spoke about labor. Next week is the anniversary of Martin Luther King’s speech at the 1963 March on Washington. I intended to connect the two. After hate intervened in Charlottesville, that’s even more urgent.

In the late 19th and early 20th centuries the Progressive Movement was making great strides on behalf of American workers and farmers. Gradually, the political parties adopted parts of the Progressives platform and many of their proposals were eventually adopted. But in the South, white elites drove a stake through the heart of the Progressive Movement by dividing workers on race. It took the Great Depression of the 1930s to wake America up.

The March on Washington that many of us remember as Martin Luther King’s great triumph was actually called by a coalition of labor leaders. Labor understood that workers had to stand together or they would be trashed together. If you could underpay African-American workers you could underpay everyone. The AFL-CIO, clear about the ways our fates interrelate, was a major supporter of the Civil Rights Movement.

But some politicians used racial prejudice to drive a wedge into support for progress, to prevent government from providing benefits and services for all of us, and then take the “savings” as tax breaks for themselves. Far more whites land on the public safety net but politicians want us to believe it’s just African-Americans. Far fewer African-Americans than whites depend on public schools but politicians want us to think money spent on schools is wasted because “they” get it. In area after area, politicians convinced many of us to starve public services. They want whites to think we would never need what African-Americans would get. They tell us we don’t want to spend anything on “them.” We should be allies, but the politics of race turns us into competitors.

Last time, I described how states and the Supreme Court have been undermining labor’s political role even as it augments management’s. So-called free market “conservatives” don’t want to do anything for the public, for you, your kids and your parents. They tell us that the market solves all problems for the deserving and only the undeserving need help, even while sanctimonious business men poison and defraud us. The real culprits want the freedom to take advantage of us while piling on more tax breaks for themselves. Racial prejudice just makes it easier for them to hide their own misbehavior.

So I want to make three points. First, racial prejudices do the greatest harm when politicians exploit them. I applaud those who condemn the violence and the perpetrators specifically. White supremacists don’t just object to policies – they hate everyone different from them. And no, Black Lives Matter is not a racist organization – objection to racism isn’t racism.

Second, the Supreme Court handed us heavily armed racists massing and marching to intimidate the rest of us. That must stop. Guns have no place in politics or public debate. Worse, white supremacists here admire Hitler, and study his path to power. Hitler’s Brown Shirts terrorized Germany. These folks are terrorists.

Third, Trump has done permanent damage to American politics. His close ties to groups which hate a large portion of America because they think we have the wrong parents is outrageous and highlights the danger of those hate groups. Trump has shown a path to power that every decent American must reject.

I was in front of the Lincoln Memorial when Dr. Martin Luther King shared his glorious dream. I thrilled to his words. But the March on Washington which we remember for Dr. King’s words was called and organized by the labor leaders of America dreaming of unity for all the working men and women of America. It is still a dream. We have to make it come true.

— This commentary was broadcast on WAMC Northeast Report, August 15, 2017.


%d bloggers like this: