Arbitrary and Inequitable Distribution of Wealth and Incomes

John Maynard KeynesPaul Krugman quoted John Maynard Keynes, who in his 1936 masterwork The General Theory of Employment, Interest and Money wrote, “The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes.” This is the kind of statement that drives conservatives crazy. How can he say that? Doesn’t that man know anything about economics?! But it is dead on, of course.

The main problem I have with economic conservatism generally is that it simply assumes that the market correctly picks winners and losers. But that isn’t even true if you accept that the winners and losers are correct. We have a political system that allows the winners to continue to enrich themselves through political favors. In fact, it is hard to find a rich person who has not made a very large amount of money directly from government contracts and various forms of special treatment.

My biggest problem, however, revolves around who the winners and losers are. It isn’t because I disagree with who ought to win and who ought to lose, although I certainly do disagree. My problem is with conservatives’ general unwillingness to admit that we have a society that selects for a certain kind of winner. And there is a reason that they are reluctant to admit this. Doing so has policy implications. If different political and economic structures select for different kinds of people, it does not justify the enormous amount of inequality in the world, because the distribution is largely an outgrowth of how the game is set up.

Kevin O'LearyYou probably saw the story last week, World’s Richest 85 People Now Worth Same Amount as Poorest 3.5 Billion. And you probably saw the followup, Reality TV Star Kevin O’Leary: It’s “fantastic” That 85 People Have More Wealth Than 3.5 Billion. O’Leary is typical of conservatives who think that all that is stopping a small town boy in Somalia from becoming rich is the lack of enough really wealthy people in distant lands to look up to. Now it would be one thing if those 85 people started off as a random sample of the world’s population, but of course, they don’t.

Consider Mr. O’Leary himself. He was born into the middle class in Canada where everyone gets basic medical care and education. After getting his bachelor’s and MBA from public universities in Canada, he started a business. Of course, his mother had $10,000 to give him to start the company. That in itself is a huge advantage. But the company was a success. It was, not surprisingly, doing nothing more than packaging up freeware and shareware that other people who had real skills created. Still, I don’t doubt that O’Leary is a smart and capable manager. But his success is owed to two very big things: his many and continuous environmental advantages, and luck.

O’Leary is estimated to be worth $300 million. But it just so happens that at this very moment, I am working with a brilliant young man on a high tech start up. It is, even now, far beyond anything that O’Leary could ever do. And we do hope that some day we can make some money with it or at least leverage it into a job. But we don’t look up to people like O’Leary, much less Carlos Slim Helu. People like that aren’t innovators. They are people who take the innovations of people like my partner and monetize them. To a large extent, we do the work just to see if we can.

But our society does not reward us a great deal for our work and initiative. And the more “advanced” our economy gets, the more that’s true. In fact, you can see it every week on O’Leary’s own show, The Shark Tank, where actual entrepreneurs stand up in front of a bunch of rich people and try to get money. Like most “reality” shows, it seems totally fake to me. What’s more, it doesn’t have much to do with how venture capital works. But it shows the way the game works: capital gets huge rewards, even though there is actually a lot of capital floating around with nothing to do. What the rich really want are safe investments that pay a lot of money. And we have a system set up so that they generally can get just that, even though that’s not supposed to be how it works. Seeing the show, I’m often struck with the fact that the “sharks” in the chairs are usually passing judgement on their betters.

It provides a great example of what’s wrong with our society. It is often the case that one of the “sharks” gets offended when one of the presenters turns them down. I’ve even seen one shark be offended on behalf of another shark, “You mean you’re going to turn down his offer?!” How dare they! Because in the world of the conservative, the rich aren’t just rich, they are better. And so they spin this yarn of bullshit about the “free” market and its magical powers. Thus, it isn’t necessary to provide actual opportunity to everyone. All they have to do is provide the example of the “Great 85” or the “sharks” and their wise beneficence. But the truth is just as Keynes pointed out. We have an economy that is an “arbitrary and inequitable distribution of wealth and incomes.”

Afterword

Just to be clear: I am not saying that bringing an innovation to maker is worthless. Not at all! But our society rewards that part of the process as though it were the hardest or most elusive part. But it isn’t. Everyone knows that it isn’t. But that has been the way that the system has been set up, and so people accept it as the way things ought to be. But it is a choice. Unfortunately, it is a choice that keeps making the already rich richer. If Kevin O’Leary had to come up with a great new idea for a business, I think he would be stumped.

Ross Douthat’s Weird Idea of Compromise

Ross DouthatRoss Douthat’s last column was about—Wait for it!—how the decline of marriage is causing income inequality, More Imperfect Unions. But that’s really just the pretext. The actual point of the article is to complain that liberals are not willing to look at evidence, the way he and other conservative “reformers” are. It’s a funny claim, given that not only have liberals yielded on some of this nonsense, but the Democratic Party actually passed legislation. A large part of “ending welfare as we know it” was about reforming the social ills of the poor that were supposedly holding them back from becoming nice middle class people.

Conservative Concessions

Douthat starts with conservative concessions that he doubtless thinks are major. He says that conservatives ought to admit that mass incarceration and “creative destruction” have “often made it harder for low-income men to find steady work.” (They have also made men with steady work unable to support a family, but Douthat doesn’t seem interested in that issue.) But the only policy recommendation he has is maybe a bit more along the lines of the earned income tax credit. So he, a supposed conservative reformer, is offering up less than the bare minimum here. There is no discussion of unions, which have been effectively destroyed thanks to the work of conservative US government policy. And somehow the decade’s long attack on the middle class is going to be reverse by subsidizing minimum wage pay checks? I hate to be the bringer of bad news, but the government already subsidizes minimum wage work. And this is a subsidy not of the worker but of the employers.

It gets worse. He claims, “Right now, I think some conservatives—though not enough Republican politicians—are willing to concede these points.” If by “not enough Republican politicians” Douthat means “none at all,” then I’m with him. I’m sure that Douthat can point to a handful of politicians who might give lip service to this. But when it comes down to it, who in Congress is willing to redistribute even a penny to the poor? As Jonathan Chait has pointed out recently, even the couple of policy initiatives designed to encourage marriage just take money away from one set of poor people to give it to another. This isn’t serious policy.

(This is something that really annoys me about “reformers” like Douthat. They are forever claiming that plans like Rubio’s are serious when they are just for show. I’ll admit that when it comes to immigration reform, Republicans have put forward some actual plans. But when it comes to doing something about the poor, the Republican Party is only interested in looking like they are doing something. And even if they backed something like Rubio’s plan, it would hardly be a compromise: taking from one group that they don’t care about to give to another group they don’t care about.)

Liberals Won’t Compromise

But that’s all preamble. After talking about what little he thinks conservatives need to concede, Douthat gets to his real point, which is that while the conservatives are looking at the evidence and changing, those liberals have just ossified:

But I don’t see a readiness among liberals to make any concessions of their own, beyond the minimal acknowledgment that all things being equal, two parents are often better than one.

I think reason that Douthat doesn’t see a readiness among liberals to make any concessions is that they don’t think conservatives are serious. Liberals are open to policies that will encourage marriage. But it doesn’t help liberals to talk about this kind of stuff publicly when people like Douthat are only pushing the “marriage is the cure for poverty” narrative because they think marriage is a good in itself. We have an observation: income inequality is very high and it is getting worse. Solution: ban abortion! So the solution to a huge social ill is exactly the policy that conservatives always want. There are very real reasons for liberals to disregard the conservatives on this matter. But liberals are willing to discuss this stuff. I’ll come back to this later.

Conservatives Aren’t Offering Anything

The biggest issue here is that Douthat has defined conservative concessions so vaguely without any actual policy ideas that they mean nothing. Then he contrasts them with very explicit policy: limit abortion and eliminate no-fault divorce. I think that Douthat is disingenuous on the former and misinformed on the latter. He proposes making second term abortions illegal. But 90% of all abortions take place in the first term. So is this really going to do anything for marriage or is it just a way to pander to the Republican base that thinks that all abortions and many forms of birth control out to be outlawed?

As for no-fault divorce: I don’t especially see the problem. This is not a huge issue for liberals. The main concern is that woman in abusive relationships will not be able to get out of them. According to the Stanford Business School study comparing states with and without no-fault divorce, having it reduced suicides in women by 20%, murder rate of women by a small amount, and domestic violence by 33%. So liberals aren’t ignoring the facts, as Douthat claims; they are just focusing on different facts. But as long as there are safeguards to protect women in these situations, I don’t see a major problem. (Or is Douthat arguing that keeping women in abusive relationships is a social good?) I certainly don’t see liberals completely closed off from discussing this issue.

It is interesting that the party of “freedom” is so interested in depriving people of freedom. I understand in abortion because social conservatives believe that the fetus’ rights are equal to or greater than the rights of the mother. But no-fault divorce?! It may well be that it is a social ill that is keeping the poor in poverty. But there can be no doubt that it is a great deprivation of individual rights. After all, marriage is a contract. If people want out of a contract, what gives the state the right to stop them? Modern conservatism doesn’t make a lot of sense.

Liberals Are Willing to Compromise

My position is that economic policy trumps most other things. So I’m willing to talk about anything. And so are others. What I’m not willing to do is offer up a ban on second term abortions in exchange for taking money away from single parents to give it to married parents. A compromise is when you give something in exchange for getting something. And if the best that conservative “reformer” Ross Douthat can do is provide regrets about past policy and the idea that maybe a little redistribution would be okay, then what exactly is the conservative movement offering? I can tell you: nothing.

Libertarian Theory and Practice

Sam SederThe following video from the Majority Report is really good and very funny. Sam Seder has a standing “libertarian challenge” where he encourages libertarians to call in and discuss issues. At first, when I heard libertarians call in, I thought the show must be screening for stupid people, but I don’t think that’s it at all. Anyone calling up a radio show is at a distinct disadvantage because they aren’t professional talkers. What’s more, Sam Seder is a very smart and knowledgeable guy. He is also quick-witted and funny. So it is no surprise that by the end of the call, the libertarians come off sounding crazy as they back themselves not so much into a corner as into non-existence.

But I think there is a special aspect of libertarianism that creates this problem. When I was a libertarian, all my libertarian friends would come to me with theoretical questions. The truth is that they never seemed to get the philosophical basis of it. They were attached to libertarianism for reasons other than theory. Most often this was just good old American rugged individualist mentality. My feelings on the matter were quite different.

I felt trapped in libertarianism. Theory seemed to dictate that I believe in a political philosophy that I really didn’t like. As a result, when I got into arguments with non-libertarians, I made absolutely no practical claims for it. I was completely willing to admit that the kind of policies that came from it would create an overall terrible society. That didn’t mean I won or lost arguments—I don’t think I did either. I think people went away for the conversations thinking I was so mired in theory that it didn’t make a lot of sense to talk practical matters with me. But at least I was reasonably internally consistent. Eventually, I saw that the problem was not so much my reasoning but the assumptions I was making.

Libertarians more generally accept the theoretical foundations because they’re used to reading people who looked at it the same way I did. But the only reason they are reading someone like Friedman is because they already think that libertarianism will create a better world. Thus we get the Sam Seder kind of debates. The libertarian will start by making a practical claim for his beliefs. All hope is lost at that point. Libertarianism is a theoretical system and it needs to be defended on that basis. On a practical level, a libertarian approach sometimes points the way to better policy. But that is the best you can say about it.

The caller in this clip tries to argue against the minimum wage. The argument he starts with is that it will destroy jobs. This is not a libertarian argument! The libertarian argument against the minimum wage is that employers and employees should have the right to enter into any contracts they want. I can demolish this argument because it has hidden assumptions about freedom that employees do not have in the modern world. But it doesn’t matter because when it comes to public political debate, no one is interested in theory. A perfect theoretical system is nice for people like me, but the question ultimately is whether or not the theory will make things better or worse. So even if the caller had started with the theoretical argument, it would soon have become practical.

But the caller did start with the practical. He then, of course, went to the theory. But in his case, the theory wasn’t about contracts and freedom. It was economic theory that supposedly proved that if you raised the minimum wage it would cost jobs. Just supply and demand! It was a classic example of a little knowledge being a dangerous thing. It isn’t just supply and demand. It is actually quite complicated and that’s why in general we don’t find much evidence to support job losses because of modest increases in the minimum wage. But what I especially like in this video is the denouement where the caller, having changed the argument from practical to theoretical, changes the argument to the ultimate technical issue: the quality of Sam Seder’s mic!

The video is over 20 minutes long and it is quite enjoyable. But the libertarian’s argument can be summed up quite simply, “I just know that it is bad to raise the minimum wage because it will cost jobs.” He never made that case, but even if he had, that wouldn’t end it. Is job creation the only good in our society? Isn’t the loss of a few jobs a price worth paying so that those who do have jobs can live in dignity? I’m not sure what the caller would have to say about that. I know there is no libertarian theory to guide us on that point. And that’s the big problem with libertarianism.

Universality Won’t Protect Entitlements

Means TestingThere is more out of the American Prospect/Democratic Strategist forum on entitlements. The last time I brought this up, it was to say, Democrats Work to Sell Out Liberalism. But today, I am here to agree in large part (although I still don’t think the whole self-negotiation is a good idea). Ed Kilgore wrote, The Case for Greater Means-Testing of Retirement Programs. This, unlike the last article, seems to have gotten my fellow liberals a bit upset.

The big liberal argument against this is that if you make Social Security and Medicare just another welfare program rather than an entitlement, it will be open to cuts just the way welfare programs always are. But I don’t think that’s a reasonable assumption. Let’s start with the fact that it wasn’t a Republican who ended “welfare as we know it.” What’s more, even as entitlements, conservatives still attack the program. In fact, the very word “entitlements” have been successfully redefined by the right wing from “things we all pay into so things we are all entitled to” to “programs for those ‘entitled’ moochers.” I don’t see how universality helps to protect these programs.

What does protect these programs is the fact that they go to a lot of old people. Regardless of how hardy an 80-year-old man may be, all of us but the sociopaths (A growing demographic!) think that we ought to be taking care of him. But I will admit, a conservative may come along who gives retirees that “Welfare Queen” treatment. But that’s going to work regardless of whether the program is universal or not.

A couple of commenters point out that if you just got rid of the payroll tax cap, pretty much all of our problems would be solved. I totally agree with this and I’ve been arguing for that for years. But that effectively does the same thing that means testing does. The program may still be universal, but now it is just an old-fashioned tax. The cap prevents it from being one, even though no one I know ever reaches it. But politicians can’t be ignorant of how special the program is in this regard.

Let me be clear: I don’t think means testing is a good idea. The biggest problem is that it really doesn’t save any money unless you start defining “rich” as people who make $40,000 per year. The inequality in Social Security and Medicare is in the amount paid into it, not the benefits people get out of it. But the argument that we can’t talk about means testing because universality makes the programs untouchable is just wrong.

Debt Ceiling and Not Very Bright Guys

John BoehnerAs I mentioned briefly yesterday, the Republicans are again threatening the Debt Ceiling and the global economic disaster that goes along with it. Jonathan Chait makes a nice catch about the issue this morning, House Republicans Make Saddest Hostage Threat Ever. His main point is that everyone knows they are unwilling to “shoot the hostage” and so everyone knows it is a fake threat. I’m not sure I agree with that.

What he noticed, however, is interesting. He quotes a Wall Street Journal article on the recent threats that has Illinois Representative Pete Roskam saying, “[A] clean debt-ceiling increase cannot pass the House.” Chait responds:

A clean debt-ceiling bill can’t pass the House, you say? Then how come a clean debt-ceiling bill passed the House three months ago by a vote of 285–144? And how come, nine months before that, a clean debt-ceiling increase passed the House by the same margin? The Journal reports on the demands being hopefully floated by various Republican factions without mentioning at any point that the House did in fact raise the debt ceiling without policy concessions the last two times.

This is most likely not some kind of conspiracy to give the Republicans cover. Instead, it is just a reporter trying to make a boring story a little less boring. I agree with Chait, the threat is meaningless in terms of actual plans of the Republican Party. But there is still a very important story here that will always be around as long as we have the current political climate and this really stupid law.

Hostages get shot all the time when no one intended to shoot them. Of course, Congress is not made up of a bunch of common criminals. Ha! That was certainly true for a very long time. And then in 1979, we got the brilliant “Gephardt Rule” that made spending automatically raise the Debt Ceiling. Everything was good until a bunch of criminals took over the Republican Party in 1995. You may remember that one of the big guys in that group was—Oh, what is his name?!—John Boehner. And the Republicans Party has only gotten crazier since then—to such an extent that Boehner now looks like the grand statesman rather than the crazy ideologue that he is.

Let me remind you of a little film history:

Right after this line, “Deep Throat” talks about how things “got out of hand.” Well, in addition to being crazy, the modern Republican Party politicians are comprised of of people who can charitably be called “not very bright.” This is, after all, the party that holds up Paul “I was B-student in math” Ryan as a brilliant thinker.[1]

The only thing more dangerous than a guy who thinks he’s smarter than he is, is a crazy guy who thinks he’s smarter and saner than he is. Ladies and gentlemen, I give you the modern Republican Party!


[1] I do not actually know what Paul Ryan’s grades were in math. He strikes me as the kind of guy who did reasonably well in math up through algebra, struggle in early calculus and collapse at vector calculus. He also doesn’t show any signs of the kind of creativity required to be good at differential equations. His entire career has demonstrated how the sloppiest of thinking will be taken seriously, as long as you are conservative enough.

Our Dirty Wars Ultimately Harm Us

Dirty WarsYou may remember my 95-5 rule: 95% of the problems in the world are caused by 5% of the people. This comes from my experience that the vast majority of people just want to live their little lives and be left alone. So it is a very small number of people who get us into wars and otherwise perpetrate acts of social disease—even though most of them use a pen rather than a rifle.

This afternoon, I haven’t felt much up to working because of some flu I have. So I laid down and finally watched Jeremy Scahill’s documentary for Dirty Wars on Netflix. I’ve read part of the book, so I knew what I was in store for. That’s probably why I’ve put off watching it for so long. I wasn’t much more than a few minutes into the film before I was sad and angry.

The film brings to mind a narrative film based upon actual events, The Battle of Algiers. In that film, the French win the battle but lose the war. They kill the “bad guys” but in so doing create so many more enemies that within five years they had literally lost the war. That is, above all else, what Dirty Wars is all about. You can leave aside all the immorality of what we continue to do. In the end, we will lose this war.

This is how empires fall. I don’t believe our protection has anything to do with why we are killing people all over the world in dozens of countries we aren’t technically at war with. Instead, we are doing it to assert our dominance. If you watch the hawks over on Fox News, you will see that none of their arguments are really about safety. They are about sending out some kind of message to the world that America is a badass country. That seems to be an end in itself.

Of course, I’m well aware that there are all kinds of economic issues too. In one village that we destroyed with a cruise missile, part of the debris is a camera lens that had been on that missile. I can’t imagine that the people working in the factory that made that lens even know that they have been a part in murdering a bunch of innocent civilians. And that means we are all culpable, regardless of how much we might not like to admit it. Most of us aren’t directly involved. And most of us aren’t making a fortune while knowing that the enormous profits support such great harm. But we are all pulled in—all soiled by it.

The innocents we are killing just want to live their lives—they are part of the 95%. But they are caught in the middle of a war that really has nothing directly to do with their lives. Or at least it doesn’t, until an attack by one side or the other makes it part of their lives. And we are pushing ever and ever further with this “war on terror,” making more and more enemies. But in the end, I doubt we will be defeated militarily. I suspect we just won’t have the money to continue. The more a society focuses on the military, the less it has to support the rest of the economy.

A change will come. But as always, it will most harm the innocents here. The people who have profited from more and more of these covert wars will be sitting pretty. The 5% always is.

Sean Trende and the Next Two Elections

Sean TrendeOne of my favorite conservatives is Sean Trende of Real Clear Politics. I usually disagree with him on substance, but he’s a good and honest number cruncher. And yesterday, he did a whole lot of crunching, Obama’s Job Approval Points to 2014 Trouble for Democrats. As is typical of him, he has put a conservative spin on what’s actually in the article.

Basically, all he’s saying is that if Obama’s approval rating stays at 43% or goes lower, the Republicans will almost certainly take control of the Senate. But as I wrote about last July, there was always a good chance of the Republicans retaking the Senate. I put it at 50-50. What’s more, I think that Obama’s approval rating really has reached its nadir. It seems mostly due to the problems with the healthcare exchanges. And now that the Republicans are posturing for another Debt Ceiling fight, I suspect his approval will bounce back up—at least a bit.

Regardless, according to Trende, the worst case scenario for Democrats is that in 2015, the Republicans will control 55 seats in the Senate. And the best case:

If Obama’s job approval does bounce back—which is exactly what happened in 2012—there’s a reasonable chance that Republicans could walk away from this cycle with just a handful of pickups. As we’ll see in the next article, that could have major implications for 2016.

And the Republicans need to pick up six seats to control the Senate. We will see. But the more important point is that it really means very little for the Republicans to get control of Senate in the 2014 elections.

As promised, this morning Trende published his second article, Why the 2014 Senate Races Matter So Much. Again, the headline is a distortion. What he means is that if the Republicans don’t make major progress in the Senate in 2014, it is almost certain that the Democrats will get control back in 2016 and even possible they will get another filibuster-proof majority. As I discussed last month, the Democrats will only have to defend ten seats—all of them in blue states—and the Republicans will have to defend 24 seats, of which 7 are in blue states. It is definitely important for the Republicans to get a running start if they don’t want to face a catastrophe in 2016.

Trende does have an annoying tendency to provide a lot of data that can’t be easily summarized. For example, he provides a table with the number of Senate seats the Republicans have after the 2014 election and then provides columns for the cases where a Republican and a Democrat are elected. The bottom line is that it looks bleak for the Republicans. Even taking the very worst case scenario where Republicans have 55 seats and a Republican wins the White House in 2016, the Democrats still have a 27% chance of taking back the Senate. On the other side, if the Republicans only start with 51 seats and a Democrat is elected president, he predicts a 94% chance of the Democrats taking back the Senate. I think both of those numbers are actually low, but you get the idea.

He concludes:

As you can see, if the GOP wins a bare majority in 2014, the odds are very, very good that the Senate will revert back to Democratic hands in 2016. In fact, if GOP gains are confined to the “traditional seven” Democratic races (the three open seats and the four incumbents in states Mitt Romney carried), they’re still favored to lose the chamber two years later. On the other hand, if Republicans get to 54 seats, their chances of retaining control are very good, and given the horrific playing field for Democrats in 2018, they would be extremely unlikely to lose it that year.

Perhaps of more interest, if Republicans gain only a seat or two, a filibuster-proof Democratic majority in 2016 is at least plausible. If Republicans break even or lose seats—and remember, no one thought that Republican losses were plausible at this point in 2012—a filibuster-proof Democratic majority might even be likely in 2016. A year good enough to net Democrats six or more Senate seats would probably given them control of the House as well, giving them an unlikely trifecta for the second time in eight years.

If that happened, it sure would be nice to have something other than a New Democrat in the White House. But I don’t think that’s likely, unless Clinton turns out to be a very different president than her husband. That’s possible, but unlikely.

O’Reilly, Krugman, and Visceral Hatred

Bill O'ReillyMy favorite economist Dean Baker alerted me to a conservative talking point that I didn’t know about. People go around claiming that Paul Krugman called for Alan Greenspan to create a housing bubble back in 2002. And now Krugman claims that Greenspan was wrong to allow the housing bubble to continue. What a hypocrite! Ah yes, there is nothing like a good conservative talking point, especially when it is based on a comment made sarcastically.

Back in 2002, Krugman did indeed write, “To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.” As Baker points out, his sarcasm was not only clear in the article itself, two weeks later, “Krugman wrote a column explicitly warning about the dangers of a housing bubble.”

About two years ago, I wrote, Satire is Dead. Well, I should have said that sarcasm is dead too. But at this point, it appears that not only is sarcasm dead, it will be used against you in the conservative media echo chamber. Actually, I’m afraid it is broader than that. Internet culture very much sorts for this kind of (non) thinking. I’m sure that 99% of those who quote the line have never bothered to read the article. Conservatives just know that Krugman is wrong the way that liberals just know Bill O’Reilly is wrong. There is a difference, of course. Krugman really does know what he’s talking about, although that certainly doesn’t make him always right.

Paul KrugmanThis gets to my fundamental beef with politics. On one side of the debate you have Noble Prize winning economist Paul Krugman. He’s actually quite careful and more conservative than I am. But the main thing is that he’s a serious thinker. On the other side, you have Bill O’Reilly. He’s a professional ranter—an entertainer. Is that an unfair comparison? Do you think maybe I should compare Krugman to Greg Mankiw? Well, for one thing, I don’t think the conservatives look much better with his “Sunshine Keynesianism,” where Keynes was basically right about stimulus, except when a Democrat is in the White House. On the other side, Rachel Maddow makes O’Reilly look horrible too. Regardless, when it comes to visceral hatred that each side has, Krugman and O’Reilly sum it up.

But purely on a policy level, think of Avik Roy and Austin Frakt. Roy is a conservative healthcare policy wonk and Frakt is his liberal counterpart. Except: not really. First, Roy is an apologist not a wonk. He doesn’t use numbers to figure things out, he abuses numbers to make his partisan points. I don’t even especially know that Frakt is a liberal. It’s just that everyone assumes he is because “facts have a well know liberal bias.” He just seems to want a system that works and doesn’t really have a strong opinion about how to get there.

Last night, I caught a little bit of the Bill O’Reilly segment where he had on a preacher who talked about how Obamacare was softening us all up for the End Times. O’Reilly said something like, “Liberals want big government.” No! Conservatives supposedly want small government as an end in itself. (They don’t actually want small government, of course.) But liberals don’t really care about the size of government. We don’t believe in big government as an end. We believe that the society should take care of certain things and this tends to create a relatively large government.

Avik RoyBut I suspect if conservatives created their perfect government and liberals created theirs, the liberal government would actually be smaller. Because what conservatives want from government costs a lot of money. It doesn’t cost much to feed the poor, but it costs a lot to feed the military industrial complex. Most conservatives are still angry that we don’t have the kind of army we had during World War II when it was 10% of GDP. That doubling of the defense budget would more than make up for the liberal programs they would get rid of. So just there, they would have an even larger government than the one we now have. Liberals could pay for their increased spending with military cuts. And would.

So not only do I have to listen to conservatives say they want a small government when they obviously do not. I also have to listen to them say that I want a big government. The actual Democratic Party is as invisible to conservatives as Barack Obama was in Clint Eastwood’s RNC presentation. But the thing is, I think that I can see the Republican movement for more or less what it is. Being sort of economically minded, I even agree with some things that used to be part of their ideology. But maybe I am just as blind as they are. I don’t think that Avik Roy, for example, thinks he is lying with numbers. Just like that guy who was so certain that the End Times had come that he spent all of his money on a billboard, I’m sure that Roy has convinced himself that the free market is always right and it is absolutely the best way forward on healthcare. Could my commitment to egalitarianism and equality have made me just as blind?

Obviously, I don’t think so. But consider this. Ideologically, like most liberals, I’m not wedded to particular solutions. As I talk about a lot around here, we liberals are a very pragmatic people. What’s more, why is it that Avik Roy seems to have to adjust his thinking about healthcare policy every six months and I don’t? It isn’t because he’s thinking about it all the time and coming up with new things. He’s just covering his flank. Since his policy preference is ideologically driven, he has to adjust every time someone says, “You know, that isn’t quite the way that the Singapore system works.” What’s more, liberals don’t move the goal posts the way conservatives do. We have their conservative healthcare reform. But now it is socialized medicine! After all, it is pretty much what Avik Roy wanted BO (Before Obama). Why did it take him four years to get to the point of admitting that maybe Obamacare could be okay if we make some changes to it?

My answer: conservatives and liberals have a different outlook on life. And a big part of the conservative outlook on life is intellectual rigidity. I undoubtedly am wrong about many things but I do consider new information and change my opinions. Conservatives, in general, do not. And someone like Avik Roy uses his very capable intellect, not in fixing mistaken beliefs but in preserving them.

Democrats Work to Sell Out Liberalism

The End Is NearEd Kilgore provides a very nice service over at the Political Animal blog in providing a good overview of what is happening in politics throughout the day. And even though I’ve always know that he is a New Democrat, he hasn’t manage to really annoy me until yesterday. That’s when he started writing about the American Prospect/Democratic Strategist forum on entitlements. He quoted approvingly the following from Henry Aaron, “With opposition to social insurance more intense than in decades, progressives need to consider carefully what extensions of social insurance they want to seek, what redesigns of the current system they should entertain, and what cutbacks in the current system they might tolerate in exchange for high-priority gains.” That’s a winning strategy there, my New Democratic “allies”!

But it sounds kind of familiar. Actually, very familiar. Isn’t that exactly what the Democratic Party has been doing for the last 38 years? Isn’t that what Obama seems to be best at: bargaining with himself? It’s weird, but I don’t remember any major meeting of Republicans where they discuss what kind of military cuts they’ll take in exchange for tax reductions on the rich. Maybe that’s because as fucked up as the Republican Party is, they at least support what their base believes in. In fact, the Republican elites are actually more conservative than their base. But with the Democrats: no.

This has been going on for forty fucking years! The Republicans take a step to the right so the Democrats follow. This is not because the people keep moving to the right. What seems to have happened is that economic liberalism has been defined out of existence. But the fact remains that the poor vote liberal, and the more poor the terrible economic policies make, the more people will vote for the Democrats. But there seems to be no economic liberalism left in the party at the elite level.

Now liberalism is all about social issues: abortion-choice and gay rights. That does not bode well for the Democratic Party. Abortion will continue to be an issue, but in a generation, gay rights will not. Is that what our entire two party system is going to be about: abortion? And given how well the Democrats have done protecting their former economic agenda, in 2034 the big debate will be whether the “morning after pill” should be legal. Great job guys! Who do I write the check to?

Let me be clear: all this New Democrat and the old Democratic Leadership Council bullshit is nothing but the power elites trying to push the Democratic Party to the right on economic issues. They are fine with the social issues because they do not really care about the social issues. Just like the Republican elites. The Koch brothers don’t much care about abortion so long as their taxes stay low and they can destroy all unions. Regardless, the rich can always move or send their pregnant daughters to Italy for an abortion. Even if the Democrats win all their social battles, it won’t mean much to the people in the new banana (“Finance!”) republic we’ve allow this country to become.

There Will Be No GOP Reform for 2016

Jonathan ChaitRoss Douthat is back with another one of those articles where he pretends that the Republican Party is “moderating.” And that means that Jonathan Chait had to write an article where he mocks Douthat but strangely agrees with him. They are both wrong. So let me sort this all out.

On Sunday, Douthat wrote, At Last, Conservative Reform. That title is hilarious because that describes at least six columns a year for Douthat. He can be forgiven to some extent, since he doesn’t write his own headlines. But that headline is totally accurate. Douthat notes that at the end of Bush’s term in office, conservative policy “wonks”[1] had run out of ideas. I might note that all their previous ideas had run the economy into the ground, but I’ll leave that for now. Once Obama got in office, said wonks like Yuval Levin (!) got to work and came up with lots of “new” ideas. But they weren’t real as long as nationally known politicians weren’t championing them. But now they are! Or at least Douthat thinks that.

Chait responded with, I Have Seen the Future of the Republican Party, and It Is George W Bush. It provides a really good rundown of just how good and serious these ideas are:

The New York Times‘ Ross Douthat lists a few in his most recent column: Senator Mike Lee endorsing family-friendly tax reform and more lenient sentencing, and Marco Rubio endorsing more generous tax credits for low-income workers without children…

The weakness of these plans is that, because they add on to the existing party agenda rather than try to replace it, they don’t fully make sense. For instance, Rubio claims his tax credit plan is deficit neutral, which means his proposal to redirect more tax credits to low-income workers without children would have to come out of the pockets of low income workers with children. Or else he’d have to break his vow and add to the deficit. Lee’s tax reform likewise has no real numbers, for the same reason: the math does not work.

Chait suggests a new avenue for the Republicans: a return to Bush! He says that what really makes the Republican proposals sound so vile to any but the conservative hardcore is that they insist upon balancing the federal budget. If they just give up this idea, they can have unpaid-for tax cuts for the rich, unpaid-for wars, and have a little left over for unpaid-for pandering to the middle class. And most important: they won’t have to make life any worse for the poor.

Let me be very clear on this point: this is what the Republicans will do if they get back in power. This is what the Republicans always do when they get back in power. Of course, this is not what they say they will do. And I think Chait tries to pull a fast one by saying that Bush the Younger walked back the Republican austerity agenda during the 2000 campaign. Of course he did! The federal government had a budget surplus. But what did Reagan run on 1980? Balanced budget. (Along with a 30% tax cut, of course; because you can have it all if you are a Republican!) What did Bush the Elder run on in 1988? Balanced budget. And then the Republican base got mad at him for doing something about it.

In general, voters (Not just the conservative ones!) like the idea of a balanced budget. But they don’t like the reality of it. They don’t like cuts to the entitlements or the war machine or basically anything but “foreign aid,” which is less than 1% of the federal budget. What’s more, they don’t like tax increases, although in recent years, the middle class has been so badly squeezed that they are more and more comfortable with a “soak the rich” policy. (A “soaking” is now defined as an increase in the top marginal tax rate of 4.6 percentage points.) But the people will vote for a candidate who promises the impossible and then borrows like mad once in office.

The problem is with the Republican base. There really is a change there. During the 2016 Republican primary, I don’t believe that they will go along with a softening of the intolerance rhetoric. Mitt Romney didn’t talk about the makers versus the takers because he especially wanted to. He did it because the base eats it up. It is who they are. They want to be told the world is divided into the good and bad. They are the good who contribute (even though they usually come from states that take more from the government than the produce in taxes). And those are the bad people who just take and take and take.

After what will then have been seven years of nonstop hysteria about the budget deficit, I don’t think that the base will turn on a dime and decide to support a candidate who says that the budget isn’t a big deal. Yes, politicians will be able to do that. Chait correctly notes that Cheney went from “deficits don’t matter” to “debt crisis” with the ease of a ballet dancer. But there are consequences for political rhetoric. Look at the huge increase in attacks on LGBTs in Russia right now—that didn’t happen in a vacuum.

Once the Republicans choose a candidate for president, he (And I do mean he!) might be able to walk back some of the red meat that was necessary to get the nomination. But Mitt Romney did try to do that. There is only so much you can do. However, it is really important to remember that Romney didn’t lose because of his extreme views or the 47% comment or any of that. He lost because the economy was doing okay. If there is an economic crisis in mid-2016, almost anyone the Republicans run will have a very good chance of winning. And that would be a catastrophe.

You may remember that I disagree with Thomas Frank that the Republicans intentionally wreck the government so that liberals, once back in power, will have to spend their time cleaning up the mess rather than enacting liberal policy. The important word there is “intentionally.” The fact remains that Frank is right that this is what Republicans do. And if the Democrats lose the White House in 2016, we will repeat the cycle all over again, but not with a budget surplus and a strong economy.

So for the umpteenth time, there will be no Republican “reform” in 2016. If they start losing off-year elections, then the party will start to change. But until then, it is going to mean more pandering to the base and fratricide. There is nothing to the minor and vague reforms of Rubio and Lee. There will be no re-ignition of “compassionate conservatism.” There will just be more of the same.

Afterword

Chait says that he wants a better Republican Party because regardless they will eventually get back in power. I totally agree. But things like “compassionate conservative” are all for show. There was nothing that distinguished the two Bush presidencies other than the fact that the second one was managed much worse. So I want a better Republican Party, not better Republican rhetoric.


[1] There really are no conservative wonks.

Genghis Khan the New GOP Ideal Man?

MongolOver on Majority Report today, they played a bit from a recent Fox & Friends episode that featured Nick Adams. He wrote a book called The American Boomerang. The book is an Australian conservative’s idea of a “pep talk” for America. Go team! Whatever. But he was brought on the show to talk about the feminization of men in general and American men in particular. This is not, apparently, something that Adams can even pretend to be an expert on. But Fox News is pushing this narrative so they are reaching out to anyone who will agree with them.

In the small part that Sam Sedar played, the whole gang was going to town on the idea that we must teach our boys that it is okay to be themselves. And by that, they mean a totally stereotypical view of what a man is. My take on it is just the opposite. Men are acting more like they want. Most men do not not want to act like the boys in Lord of the Flies, nor do most of them dream of the days when it was fine to pinch your secretary’s butt.

The place that these ridiculous ideas of manhood come from are adolescent fantasies about manhood. This is how people assumed their fathers (and actually, more accurately, grandfathers) behaved. And I’m sure there were those kinds of men. But just as now, there were all kinds of men. Today what we call a metrosexual is what we used to call a dandy. There wouldn’t have been a word for it if it were that unusual.

There are lots of ways to be a man. But what the people on Fox & Friends are calling for is not for men to be allowed to be men. They are calling for certain men to be allowed to be assholes with impunity. So you see: no one is stopping, for example, Chris Christie, from being an asshole. We all have to deal with people like him. But these conservatives want us to pretend that the way that Christie acts is right. And it clearly has been for most of the voters of New Jersey. But it’s not right as far as I’m concerned. He’s a bully. Not because he’s a “man’s man,” but because he uses his power to pick on people who aren’t as powerful as he is. I knew such people were bullies when I was 5-years-old; I’m not going to pretend they aren’t now.

Above all, shouldn’t conservatives define the ideal of manhood as something more, you know, conservative. Shouldn’t it be someone more like Charles Ingalls on Little House on the Prairie? Isn’t a real man one who protects the weak? When did it become someone like Christie? By this logic, Genghis Khan should be our ideal. He killed a lot of men and fucked a lot of women. Is that what the ultimate conservative man is now? Or is it just that they want to thread the needle: the ultimate man is whichever conservative politician they are currently pushing. Even when it’s a woman.

Chris Christie’s Tiny Red Box

Chris ChristieChris Christie started his second term today.[1] I saw a bit of it. (I try to avoid these things because they are boring.) But one line really stood out to me, “We have to be willing to play outside the red and blue boxes the media and pundits put us in.” That’s interesting. I didn’t know it was the pundits that were putting politicians in these boxes; I thought it was the choice of each politician. You know: the way I’m a Democrat because I agree more with that party than with the Republicans.

Let’s leave aside the fact that it is looking more and more like Christie has run New Jersey like an old political boss from Chicago where money trumps ideology. That’s generally true of modern Republicans, anyway. But when it comes to ideology, Christie’s “moderation” is phantasmagoric. You can see it in the writings of those political pundits who Christie claims try to put him in a box, but not in reality.

One of the main ways that Christie is “different” from the GOP generally is that he accepts climate change. But as I wrote before, “Christie’s affirmation of climate change has been so weak as to be useless.” What’s more, in a Republican presidential primary, I suspect he would walk that back with something like, “Well, I don’t know, I just think we should look into it.” And that is pretty much the current state of climate change denial: we need more study! When it comes to workers rights and economic issues generally, he is absolutely ideologically pure. All that yelling at teachers? That’s not just because he’s an asshole; it is also because he hates unions. And finally, on social issues he is also absolutely ideologically pure. He’s anti-choice. He’s anti-gay.

The question logically comes up, “Why do people claim that Christie is a moderate?” I think it is simple as this: his rhetoric isn’t as extreme as that we hear coming out of Texas. The biggest part of this is that he doesn’t use religious language about sin and damnation. He talks like people normally do in New York and Washington so he seems like a regular guy. Of course, what’s really going on is that Christie just has a different approach to “fire-breathing” conservatism. It is encapsulated in what Paul Krugman calls him, “Governor Yells-at-People.”

What the current Christie scandals show, regardless of whether he is directly involved or not, is that any actual ability to “work across the isle” is nothing but power politics: forcing the other side to do his bidding. He isn’t interested in “compromise,” that vaunted end-in-itself for “centrist” pundits. Regardless, Republican executives usually get more done with Democratic legislatures than the other way around. Why? Because Democrats are more compliant. If Christie had had to deal with the Democratic equivalent of Mitch McConnell in his legislature, he wouldn’t have gotten anything done—except, of course, through his standard extortion techniques.

So it really annoys me to hear Christie pontificate about the media putting politicians in boxes. Christie put himself in a very small red box. The media have been working overtime to make it appear as though he weren’t a completely ideologically consistent Republican. The media want “bipartisanship” and “compromise.” And they have anointed Christie as the bringer of that, regardless of the facts. For him to pretend otherwise is disingenuous and, frankly, hilarious.


[1] That’s yet another Watergate aspect of this. A lot of people don’t remember, but the Watergate scandal was going strong even during Nixon’s re-election campaign. The Congressional hearings only got going later, but the scandal was out there for all voters to notice, had they been paying attention.