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.

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Racists and Self-Interest

August 14, 2018

I have no illusions that anything I can say would convince white nationalists to flip their political sides. Nevertheless, I think it is important to engage them.

There is of course a strong moral argument based on the Enlightenment, reflected in the Declaration of Independence, that all of us are born equal. But let me see if I can engage anyone with arguments based on their own self-interest?

First, I don’t know how many of the white nationalists have had their DNA checked by 23 and Me or similar organizations. They might find that their own backgrounds are multicultural much like the rest of us. And I’m not sure how many of the white nationalists want to reject or deport their own grandparents or other ancestors.

Beyond that, racial, religious and ethnic nationalism is basically what is called, in language stemming from game theory, a zero-sum game. That is to say, we have a pie of specific size and fight about how to cut it up. But that’s a faulty premise. In fact, the larger the group that participates in the productive process, the more there is for everyone to do. The success of this country was based on our own common market among the states from the very beginning from the Canadian to the Florida border. That gave us a big advantage and propelled this country into the forefront economically within a few years. The European Union was developed and has been prosperous for much the same reason. And there is plenty of factual data that multi-cultural workforces lead to expanding their businesses much more than homogenous ones. It’s easy to look at a single job and notice who has it and who might have had it, but without looking at whether that job and many others would exist in a narrower market one does not have anything close to a full picture. So, I don’t think trade among multiple different cultures, or the development of complex multi-cultural economies are zero sum games. I do think they expand opportunities for us all. And the economic risk from trying to cut oneself off from that is stagnation and decline.

I have another concern about rejecting multi-culturalism: China, not to mention the rest of Asia. One of the things Obama realized, a realization no less true or false if one objects to the color of the man, was that the nations of Asia were focused on their economic advancement, were working hard to grow and were quite successful at it. That was behind his hope to “pivot to Asia.” But our own treatment of people from all the Asian countries, as visitors, residents and citizens, can strengthen or weaken our relations and our cooperation in foreign and economic policy. Perceived as racist, we can become the target of attack. Nations like China and India have the size and fire power to be problems. In briefs to the U.S. Supreme Court in the early 1950s, both the Democratic Truman Administration and the Republican Eisenhower Administration argued for an end to the separate but equal doctrine partly because it made international diplomacy difficult.

I don’t even want to talk about the possibility of internal war. Both for our country and for each of us, white nationalism is a dangerous mistake.

After writing this, we took our grandchildren to Tanglewood for a Young People’s Concert. At one point the BSO played Leonard Bernstein’s music for the rumble in West Side Story, a retelling of Romeo and Juliet set in Manhattan. The rumble pitted the white Jets gang against the Puerto Rican Sharks. It ends in universal disaster. In the suite that Bernstein created from the music, as Tony lies dying in Maria’s arms, the harsh, jagged music for the rumble dissolves into the lyrical, wistful music of Somewhere There is a Place for Us. Somewhere indeed. My granddaughter caught tears rolling down my face. Bernstein like Beethoven before him believed that music could somehow bring us together. I wish it were so.

— This commentary was broadcast on WAMC Northeast Report, August 14, 2018.


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