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.

 

Advertisements

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.


Blame the Supreme Court for America’s sharp political divide

August 24, 2017

August 24, 2017

In the 19th century the Supreme Court set the stage for a century of murder, intimidation and voter suppression in the southern states by nearly obliterating the application of constitutional rights to state behavior, In the 20th century, the Court’s nationalization of constitutional rights long met liberal dreams. The Court now seems poised to use the national application of constitutional rights language to satisfy conservative dreams. Both ways close the states’ rights escape valve and therefore magnify the contentiousness of national politics. And all of those choices have enormous moral costs. I elaborate on TheHill.com, at Blame the Supreme Court for America’s sharp political divide.

Happy reading, Steve


The Court’s attack on the “ever-normal granary”

June 30, 2015

I’ve been celebrating like many of you over the marriage equality and Obamacare decisions last Thursday and Friday. But my own celebrations are tempered by the realization that these two cases don’t symbolize any shift on the Court. Kennedy’s libertarian philosophy has paid dividends in the gay rights controversy for years. But the decision last November to hear the case challenging whether federal health exchanges could provide subsidies to those without the money to buy a health plan unassisted, turned into a trap.[1] The scale of damage that would have been done by blocking the subsidies made it impossible even for opponents of the program to shut it down. Nothing in the decision suggests that Kennedy had a change of heart about having wanted to declare it unconstitutional, and nothing suggests that Roberts had a change of heart about narrowing the commerce power, even though he had approved the individual mandate in the statute as a tax. Twenty years ago, Thomas wrote he would consider going back to the Court’s very restrictive definition of federal powers before 1937 when President Franklin Roosevelt’s appointments changed the Court’s philosophy. Apparently Scalia and Alito are on Board with him.

That brings me to raisins.

Horne v. Department of Agriculture,[2] looks like the Supreme Court is maneuvering to get us back to the era when it throttled government economic policy. Horne held unconstitutional a program to keep the supply of raisins on an even keel.

Roosevelt’s New Deal Administration had the dream of an “ever normal granary” for farmers. Their prices were spiking in both directions, making farming very difficult especially for family farmers whose resources to endure periods of low prices were limited. The statute was passed in 1937 to create the “ever-normal granary,” in order to deal with the effects of the great depression, stabilize prices, preserve supplies against shortages from drought or other natural causes and to protect farmers against “disastrous lows” from bumper crops.[3]

The result was a program to store portions of crops in government facilities when supply exceeded demand and release them in periods when yields were too low. It was a program designed by farmers for farmers.

The Horne decision used the takings clause to overrule part of that nearly eighty year old statute which had been designed to help pull the country out of the great depression of the ‘30s.

If one simply reads the words of this Roberts Court decision, it looks easy to get around. Government could use a regulation or a tax. And there are other ways to make this decision seem appropriate and unthreatening.

But I don’t believe it. This case has been part of a decade long set of challenges looking for a way to take down federal agricultural marketing policies. The attorney for the Hornes was a well-known conservative activist, professor and former judge. I doubt he handled this case just because he sympathized with the Hornes.

Similarly, when the Rehnquist Court decided United States v. Lopez in 1995 on federalism grounds all the constitutional scholars said it was insignificant, a shot across the bow but portending nothing. Within a few years it was clear they were wrong. The Court started declaring civil rights statutes unconstitutional as violations of principles of federalism that are nowhere in the language of the Constitution.

This case is not a one off. The Court has been developing takings doctrine so that it can be used to block federal regulation of the economy and the environment. The conservative faction on the Roberts Court is trying to develop legal tools to return the U.S. to a period in which we are a congerie of 50 small states instead of a single proud country. And if that happens, family farmers especially may be sorry to be free of federal regulation.

— This commentary was broadcast on WAMC Northeast Report, June 30, 2015.

[1] Linda Greenhouse, The Supreme Court’s Reality Check, NY Times blogs, June 25, 2015, http://www.nytimes.com/2015/06/26/opinion/the-roberts-courts-reality-check.html?rref=collection%2Fcolumn%2Flinda-greenhouse

[2] Horne v. Dep’t of Agric., 2015 U.S. LEXIS 4064 (2015).

[3] Mordecai Ezekiel, Farm Aid-Fourth Stage, The Nation, February 26, 1938, Vol. 146, No. 9, p. 236-238, available at http://newdeal.feri.org/nation/na38146p236.htm.


%d bloggers like this: