Trump and the Swamp

June 6, 2017

Trump promised to drain the swamp. We can agree that the swamp is the predominance of special interests over Americans of ordinary means. Bernie Sanders won many hearts and minds by refusing to take big money. Trump claimed independence from big money because he had so much. Clinton lost many votes because she accepted large speaking fees and contributions. A large populist wave by financially ordinary Americans swept the country.

People credited Trump’s promise to drain the swamp. With Trump in power, we’re entitled to look at his actions. Indeed we should.

Most Democrats long tried to take big money out of political campaigns. With some exceptions, like John McCain, Republicans worked to protect the use of money in politics. In the McCain-Feingold Act, Congress managed to compromise between their positions. But the Supreme Court, dominated by Republican appointees, invalidated restrictions on campaign contributions, and held in Citizens United, that corporations could contribute funds straight from corporate treasuries. Heard anything lately from the White House about campaign finance regulation? I didn’t think so.

Trump wants to lower the tax and regulatory burdens on the wealthiest people and companies. He claims in justification that the extra costs harm American workers. I recognize the heated debates about those claims. I’ve repeatedly explained in this commentary that putting more money in the hands of the wealthiest people and corporations is unlikely to spur investment or improve the position of American workers. It won’t help American workers because corporations can and do spend extra money everywhere, including abroad. It won’t help American workers because extra wealth can be and is spent on nonproductive goods or investments. And it won’t improve the position of American workers because there is no shortage of capital in this country, so putting more in in wealthy or corporate pockets is like pouring mud into the Mississippi.

Eliminating regulations will also put money in wealthy and corporate hands but hurts everyone else. Unions have been big proponents of safety regulations because they protect the health and safety of workers, and, we should add, of consumers and citizens.

Trump’s proposed budget also pulls up the safety net and hands the savings to corporations and the wealthy. The safety net protects people when they fall on hard times, when illness drains their bank accounts and strains their budgets, when corporate decisions leave workers struggling to find new jobs and forced to feed families on minimum wage jobs. These have direct and indirect costs for all of us. Losing a job can be temporary but it can also be a fall into a rabbit hole that sucks out everything we’ve invested in our homes, our retirement, and stresses, even breaks up our families. In 2008 those factors spread and took a lot of us down. The safety net was intended in part to help slow or stop economic downturns. 2008 overwhelmed what was left of the safety net but Trump would make it worse.

And health care decisions don’t just affect the most vulnerable. None of us want people spreading serious or medicine-resistant strains of TB, Zika, MRSA and other communicable diseases. Effective strategies against communicable disease involve keeping the diseases out of the population to the extent possible.

In Trump’s budget, the savings from all these cuts go to the 1/10 of 1%, the wealthiest of the wealthy, the very people who should be giving back rather than sucking at the public til. Trump promised to drain the swamp. But Trump IS the swamp.

— This commentary was broadcast on WAMC Northeast Report, June 6, 2017.


Hilary

September 27, 2016

I’ve been traveling and so I’m playing catch up. But I was shocked at the reactions I heard to Hilary’s illness. I expected people to do what we do when most people get sick – wish her well and hope she can get over it quickly. What I heard was just grousing that she said she was fine.

What do you and I do when people ask how we are? “Fine how about you?” “Good, I’m fine too.” Got a cold? “Nah, I’m fine. How about you?” In America we’re taught to be tough and not complain. In fact, if I ask my students how they are, their most common answer is “Can’t complain.” I often joke back, asking what they’re doing in law school if they can’t complain. I once passed one of my best college profs and with the usual pleasantries, I asked him how he was. Prof. Babbitt leaned in toward me, with a smile on his face, and burst out “Terrible!” Then he straightened up laughing and walked on, leaving this college kid totally nonplussed. But I got the message. We’re taught to be strong; that’s the way Americans handle illness. And we admire that in others.

But people didn’t give Hilary the benefit of adhering to our standards of behavior. The woman tried to tough it out like we’re all taught to do but the press crucified her for it. Thank heavens I’m not running for president; I don’t need that nonsense. You’d of thought people would have the grace to wish her well instead of crucifying her for trying to put a strong face on an illness.

I hate to tell you folks but anyone can get sick, including presidents and candidates, whether they try to tough it out or play bluster about their health. We can argue ‘til kingdom come about what Hilary should have done. But what she did do was to behave the way we are all taught to do. How bad is that? As for me, I wish her well.

I also wish that people would give her the credit she deserves. She’s pretty obviously a very intelligent person, and had the benefit of a terrific education. She could have earned a mint as a lawyer. But she left her practice and devoted herself to public service. I respect her for that.

She was our senator here in New York and what I kept hearing was that she won a great deal of respect all over the state and in Congress because people quickly saw that she worked hard at the job, worked on the needs of the whole state, studied the problems, and worked with everyone she could to solve problems. She was our senator and she took that seriously. I respect her for that.

She’s also been criticized for the way she handled some of her husband’s mistakes. But we are all taught to forgive. Hilary did, and she was crucified for it. We used to be taught that marriage is permanent, for all time. Hilary stuck by her husband and got crucified for it.

It seems that there is no code of behavior that is good enough for Hilary. But I respect her as a person who is doing her best to work for me and for you. She ought to get a lot of credit for that.

— This commentary was broadcast on WAMC Northeast Report, Sept. 27, 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.


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.

 


Bernie

June 9, 2015

I have been an admirer of Senator Elizabeth Warren for many years, ever since she spoke here at Albany Law School some time back in the 90s. But I respected her decision not to enter the primaries to contest the nomination of Hillary Clinton. Obviously I never had to decide whether I would choose to vote for Warren or Clinton, but I came to the conclusion long ago that the candidates I liked best had no real chance of winning. So I have tried to keep my picks within the realm of the people I thought could win.

But Bernie Sanders is forcing me to rethink what to do. Simply put, the Democrats have lost much of the constituency for real, liberal, politics, politics for Americans with average incomes, politics for people who are being given the shaft by business as usual. Those folk have been part of the constituency of the Democratic Party for years. But many of them have been staying home and not voting. Or deserting.

The Occupy movement showed that there is still some life in that constituency. And it showed that American politics and Democratic Party politics can be rejuvenated. Except that it collapsed – not for lack of support but because it was never organized for the long haul.

Bernie gives hope to those of us who care about giving people real opportunity and a fair shake. He gives us a symbol we can rally around. Putting it in the political process is very different from opening a tent on Wall Street. Bernie is trolling for votes. His success will measure the possibility of returning to an America that is fair to all.

Years ago a congressman by the name of William Fitz Ryan represented a liberal district in Manhattan. His brother served on the Board of Directors of the program I worked for and commented that for Congressman Ryan, pushing Congress from the left, created opportunities for his fellow legislators to shift the battleground.

I think Bernie is in that tradition. If he can arouse the mass of us who care about each other’s fate, and arouse the many whose lives are crushed by the disinterest and hostility of those who have power and money, then Bernie can shift American politics from the rut it’s been rattling around in for several decades.

In that way, Bernie is more than a candidate. He represents a cause. He can be the beginning of a movement and an organization. The crucial thing we have to do is to take advantage of his candidacy, win, lose or draw, and build on it toward a stronger, fairer politics, and a stronger America, whose future is not limited to what may be good for a few big donors but is premised on the ways that investing in our country and its people can make a stronger, wealthier, more successful America for all of us.

Go Bernie. And may the rest of us come along, to push the campaign cart, organize for a long push, and celebrate a greater America.


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