Noah Smith is such a brilliant guy, I have no idea why he wrote, Guess What’s Destroying the Middle Class? He started with the silliest notion that there are three reasons why middle class wages are falling: robots, unions and China. I realize that there are a lot of people who talk about this, but don’t we all know that it is a little more nuanced than that? That it isn’t that simple? If you asked me, I would say that the primary reason for falling wages is something else entirely: the new normal coming into 2001 was that middle class wages were stagnant. The difference between stagnant and falling wages is just a matter of degrees. The capitalists in America have gotten even better at siphoning off profits.
There is nothing especially new about this; it’s been going on for forty years. And robots, unions, and China are all symptoms of the larger problem. And the larger problem is that the government has had it out and continues to have it out for the middle class. Let’s do a little Dean Baker 101. High paying jobs in America moving to low paying jobs in China should also reduce the cost of living for Americans. And indeed: televisions are cheaper. But what isn’t cheaper? Healthcare, legal support, college educations. And that’s because we haven’t subjected workers in those fields to the same globalization. And that is a choice that was made by the power elite for the power elite.
I agree with Smith that the robots story is weak. There is a larger problem, however. Our policies allow the owners of capital to capture more and more profits. Robots help in that regard. But technological improvements were arguably as fast during the 1950s as they are today. And we did not see more and more money going to the capital side of the economy at that time. I think that unions are clearly a bigger issue. But even they aren’t huge. I still think the bigger issue is the way that norms have changed. These now allow billionaires to think they deserve their money and don’t owe anything back to society. And this has ripple effects all through the nation, not the least of which being the low taxes on the extremely wealthy.
What really amazed me about the article was Smith’s fatalism with regard to the problem. He concluded that the problem was China — and I think that’s clearly a simplistic way of looking at income inequality — was so fundamental that the only thing that we can do is nothing. “The only solution to the problem of globalization may be to wait.” Chinese wages are increasing. So soon, all those factories will move to India. And then there won’t be any super-large countries for our patriotic companies to run to. In other words: don’t worry American middle class; your wages will rise in just another forty years!
(There’s something I don’t exactly understand with this reasoning. I thought that he was using China as a metonymy for the whole of globalization. But he seems to mean it literally. And apparently, only India can take over China. Somehow, a bunch of countries in Africa wouldn’t work. I don’t understand that, but I don’t suppose it really matters.)
A big problem with the people who claim that robots or education are the only things that are responsible for economic inequality is that these reasons are used as an excuse for doing nothing — or for arguing that there is nothing that can be done. But that is the conclusion that Smith draws from his China hypothesis. And this is strange, because like I said, he’s a brilliant guy. There is no reason for fatalism. The state of the American middle class is not the result of forces beyond our control; it is the result of our own policy choices.
The amount of household debt and even more recently of student debt in the US is something that is really troublesome… This exemplifies a particular problem with inequality in the United States, which is very high inequality and access to higher education. So in other countries in the developed world you don’t have such massive student debt because you have more public support to higher education. And I think the plan that was proposed earlier this year in 2015 by President Obama to increase public funding to public universities and community college is exactly justified.
Ted Cruz got a lot of razzing for his “Imagine” speech where he asked a lot of confused students at Liberty University to imagine a conservative world with things like a flat federal income tax. It was the “imagine” part of it that got the scorn, not the ideas — they are just standard Republican ideas. But I think it is really interesting that the Republican Party is so wedded to this idea that everyone ought to be pay the same federal income tax rate. This would make overall taxes in the United States regressive: the poor would be paying a higher percentage of their income in taxes than the rich. But that’s what Republicans like Cruz believe, and after they got their flat tax, they would start pushing for an explicitly regressive tax. After all, why should people pay the same percentage of their income in taxes?! One man can only walk on one road at a time; every man should have to pay the same amount. And so on.
Ezra Klein wrote an interesting article that touched on both of these points,
I just heard a tiny bit of Ali Gharib talking on
Similarly, Monday morning, Jonathan Chait wrote,
On this day in 1811, Percy Shelley was thrown out of Oxford for publishing a little book,
The evidence is overwhelming that the rich and powerful of Venezuela have followed a continuous, constantly morphing plan to de-stabilize the country and take over the government by any means necessary and that the United States government knows about that plan, supports it and, as much as it can, is assisting in it…
Ah, the good old days! That was when conservatives everywhere resorted speaking in only sentences that consisted of a noun, verb, and “Greece.” Every conservative policy under the sun had to be enacted or: “We’ll turn into Greece!” Well my friends, now United Kingdom Prime Minister 
Last week, Stephen Mucher, the director of Bard College’s “master of arts in teaching” program, wrote an important article,
As I’ve expanded exactly what a birthday post is, it was inevitable that I would finally get to deaths. But today we have a special death. On this day 35 years ago, Archbishop 
I am the more confirmed in this determination by everything I see and hear in this country. Their statesmen in and out of office have their minds too occupied with English and foreign affairs to have either leisure or inclination to be troubled with the wants of Ireland or the rights of her people. I solemnly declare my conviction that the senate of Petersburg or the divan of Constantinople would be as ready to attend to the grievances of Ireland as the British House of Commons. There is an utter ignorance of, and indifference to, our sufferings and privations. It is really idle to expect that it could be otherwise! What care they for us, provided we be submissive, pay the taxes, furnish recruits for the Army and Navy and bless the masters who either despise or oppress or combine both? The apathy that exists respecting Ireland is worse than the national antipathy they bear us.
I don’t stay up much on the whole gamergate thing, for reasons that will become clear enough in a moment. But I found Todd VanDerWerff’s article over at Vox interesting,