I signed this letter.

September 8, 2016

I signed the letter below along with more than 200 of the top legal and economic experts in the country protesting against ratifying any treaty that contains the private dispute mechanism, called ISDS, that allows corporations to defeat major environment and worker protections of the countries signing the agreements. Here are U.S. Senator Elizabeth Warren’s remarks in support:

“Today’s letter from top legal experts makes clear: ISDS undermines the American judicial system and tilts the playing field further in favor of big multinational corporations…This provision empowers companies to challenge laws and regulations they don’t like, with friendly corporate lawyers instead of judges deciding their disputes. Congress should not approve a TPP agreement that includes ISDS.”

And here’s a link to the final letter I signed.
Steve


Bernie and Ralph

May 24, 2016

Let’s talk about Bernie Sanders and Ralph Nader. I have enormous respect for what both men have been trying to tell us. I also have enormous respect for Nader’s willingness to plow his earnings back into the effort to improve many aspects of life while he, Nader, lived on a shoestring.

Then came the 2000 election. Nader argued that there was no difference between the major parties so it didn’t matter which one won that election. On the economic issue he was close to right, although the 2008 meltdown should have made clear that there are important differences between Republicans and Democrats on handling the economy. On other issues, particularly the environment, and the War in Iraq, the parties were far apart. That election made an enormous difference.

And it almost killed Nader’s movement; it certainly killed his ability to be an effective advocate. The conversation after the 2000 election wasn’t about Nader’s message; it was about the damage Nader did.

Bernie has an important message, which he shares with people like Elizabeth Warren and Ralph Nader, that the American economy is organized to take advantage of the vulnerable and deliver its benefits to those who have much more than they need. But if Hillary wins the Democratic nomination, what happens to Bernie’s message will depend on how he treats Hillary. It will be important for his message that he works for her election – and that his supporters do. If he and they work for the ticket, then his message has staying power because it becomes a shared message, his people are welcome and they broaden their own power within the Party. But if they sit it out or vote for the other side, their only message is that they aren’t important, reliable or helpful. It will stir resentments that will block their appeal going forward.

Nurturing Bernie’s message requires looking beyond this election, making friends and alliances for future elections. The way to create a lasting movement is to build on good feelings and organize for challenging down ballot in future federal, state and local elections much like what conservatives did to the Republican Party. Winning the top spot is a defective balloon, useless without down ballot organization. Bernie’s people have a chance to push the whole party, not just the White House, to the left. That’s the big prize. It doesn’t mean Bernie lost if he can’t catch Hillary; it means he and his supporters can do something much more powerful and sustainable.

Sitting back, or communicating that it’s my way or the highway infuriates the public. Republicans are learning the costs of that strategy, and even if Donnie wins, he may have no coattails or ability to govern. One of the crucial features of a democratic culture is the ability to be a good sport. Moderates usually win in the general election because that’s where the public is, so compromise must join principle in a successful strategy. Movements build over time. The best way to limit a movement’s prospects is to look like a sore loser.

I hope that message gets across to Bernie and his supporters.

— This commentary was broadcast on WAMC Northeast Report, May 24, 2016.


The Outdated Economics of Conservative Ideologues

April 26, 2016

Some of you may have been following Shankar Vedantam on NPR or the discoveries of Daniel Kahneman, the Nobel Prize winning psychologist on the Princeton faculty, and their demonstration of the irrational ways that people very naturally and ordinarily reach decisions. Indeed, for quite a long time it’s been apparent that rational decision making often demands too much of people. As Cornell’s Vicki Bogan said in a talk in Albany, the rational choice model of economics assumes that people:

  • Think like Albert Einstein
  • Can store as much memory as IBM’s Big Blue
  • Can exercise the will power of Mahatma Gandhi
  • … [and] make unbiased forecasts

Nobel Prizes have been awarded to psychologists and economists who have been studying human decision making, showing that people literally can’t do what conservative economic theory expects them to. The rational man doesn’t exist, and for that reason, markets often don’t protect us. For both businessmen and consumers, rational choice is often impossible; it’s just too hard. Sometimes things aren’t currently knowable. Sometimes they’re beyond the capacity of individuals, even if institutions can figure it out.

A trip to the grocery store helps make the point clear. Even though much of the information exists, I can’t know enough about all the ingredients of the goods I buy, and their impact on my body, and still take the time to do my work and have a life to live. I have to trust someone or something else. But consumer ignorance shapes what businessmen have to do to survive. Those who cater only to the most informed, cater to small markets and often go under.

One consequence is that the market doesn’t protect us. That’s why workers’ compensation was started many decades ago – workers couldn’t figure out the odds of injury and didn’t have the ability to protect themselves as cheaply and effectively as informed employers could. Government stepped in to move that burden of knowing and choosing from the employee to the employer.

Those are examples. The broader impact of what is now called behavioral economics is that the economic theory of market ideologues is thoroughly discredited nonsense. It doesn’t work. A couple of decades ago there was a big debate about the efficient market theory which claimed that the market had it right even though individuals could be wrong. But they couldn’t tell me whether the market had it right the day before or the day after the crash. In other words it was nonsense on stilts.

That’s one of the reasons the public, all of us, have to get out of the glare of the outdated economics coming from conservative ideologues. It’s one of the reasons why it has been so important that Elizabeth Warren and Bernie Sanders have moved the Democratic Party to the left. That shift also clears the way for Hilary Clinton to return to the roots of the modern Democratic Party in the Great Depression, in Roosevelt’s New Deal, in being a party with heart.

Hilary and Bernie both have a lot to offer, but just as big a key to progress will be the Senate and the House of Representatives, which have blocked Obama’s efforts to push this country toward better, more caring solutions at every turn.

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


Comments on two races: Elizabeth Warren in Massachusetts and Neil Breslin here

September 11, 2012

In most political campaigns, I don’t know any of the contestants personally. I vote based on what I can glean about them. But I do happen to know some of the candidates this time. So let me comment about a couple of people I know about two races in the area reached by this station.

First, a word on the race for the U.S. Senate from Massachusetts. I met Elizabeth Warren years ago when she came to speak at Albany Law School about proposals to change the bankruptcy laws. At the time, she was on the faculty at the University of Pennsylvania, before she moved to Harvard. Her talk was stunning. What she showed us in the clearest black and white numbers was the way that the proposed changes to the bankruptcy laws were targeting women who had suddenly lost everything because of divorce or illness. Not the “deadbeats” of popular imagination and the proponents’ rhetoric, but people who were working around the clock to take care of themselves and their families. Read the rest of this entry »


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