A Story that Ought to be Told

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It’s natural enough that different factions of the Democratic Party see things differently.  But we’ve got to stop letting the Republican Party off the hook.

  1. Bill Clinton may have let China into the WTO, but he was not around to see or act on China’s behavior. Essentially 100% of job losses occurred under Bush, either directly or as a result of the 2008 crash.  Obama had no opportunity to do anything:  his first two years were spent avoiding a depression, and after that the Republican Congress shut down government.
  2. That Republican Congress deserves public exposure. Its stated objective was non-cooperation with Obama on all issues, so as to slow recovery for the 2016 election.  They understood perfectly what stimulus is good for, and they made sure it didn’t happen—with the proven-bogus “balanced-budget amendment”.   The Republican Party deliberately kept the country poor.
  3. On meat and potatoes issues Trump is not a rebel, he’s a Republican. His primary effect on the economy was through the tax cuts. Those were properly the Koch organization tax cuts—delivered as ordered to the primary donors to the Republican Party.

It’s not wrong to say that both parties share blame for the growth of inequality and such—but not in equal measure.  The position of the “Trump base” would have been quite different if Obama had not been denied all opportunity to act.  A Clinton Presidency would have worked on education, healthcare, and climate change instead of the Koch tax cuts.

Clinton was reluctant to criticize the Republican Congress, because she thought ordinary Republicans might support her (Comey fixed that!).  We seem to be making a similar mistake by excusing Republicans in the guise of everybody did it until now.   We’re letting Trump be the hero who brought it all to the fore.

Trump is a Republican.  He is not a break with the past.  He has not uncovered a conspiracy of both parties that no one saw before him.  Instead he is continuing the Republican policies that led to most of the problems we’ve got.

Republicans produced the 2008 crash, the Iraq war, the drastically increased inequality, and the current polarization of society.  Democrats fix things.  We can get it done.

The Epiphany of the Right

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It’s often difficult to understand the logic behind the right’s continued embrace of Trump’s lies and corruption.  In thinking about it, it seems that there is something even more fundamental than identity behind it.  You might call it the epiphany of the right.

This already existed in rather pure form with the Tea Party.  Tea Party participants had the enthusiasm of true believers, and they were pretty clear about their new beliefs.  When interviewers asked people on Medicare and Social Security why they were ready to deny government benefits to everyone else, the answers came down to a simple idea: “I don’t have to care!”.  In Strangers in their own Land, the author asked a Tea Party defender of personal responsibility how a poor child in a drastically underfunded school system was supposed to succeed, and she got the same response. “I don’t have to care”.

That “I don’t have to care” has become the epiphany of the right.  It’s the all-purpose answer.   It not only absolves the believer of moral responsibility, it gets you off the hook for anything you’d rather not think about—say climate change or the actual operation of world economy.  All that nagging about equality, facts, or expertise is optional!

It’s the perfect elixir for the Trump world.  Responsibilities or standards of behavior are gone.  You don’t have to do anything you don’t want to.  Whatever you don’t like can be dealt with by any means, however brutal.  Democracy is just something else to nag about. Same for any other argument.

As with one’s personal life, this kind of behavior feels liberating and great until it isn’t.  But until then—there’s nothing anyone else can tell you!

Questions for Democrats

consumption-by-source-and-sectorI’m concerned about what seems to be a kind of giddiness in the Democratic Party.  Winning control of the house was a major accomplishment, and there does seem to be a shift in national attitudes toward the liberal agenda.  But I’m worried that the feeling that everything is now possible is getting ahead of what it will take to make it so.

I’ll start with Green New Deal and Medicare For All.  In both cases there’s a lot that’s good.  We’ve succeeded in focusing attention on key problem areas that urgently need to be addressed.  But in both cases there is so much room for interpretation that it’s hard to see what will come out.  And I don’t understand what the decision process is going to be.

Climate change and healthcare are both highly technical issues.  We’ve talked here before about what it will take to put together a true national plan to address climate change.  (The chart at the start has to be addressed point-by-point.)  The current GND bill doesn’t claim to do anything like that and adds a number of other issues into the mix.  Part of that is good—for the first time we’ve succeeded in presenting action on climate change as a step forward for everyone, not as distasteful but necessary medicine.   At the same time, though, we now have a number of competing objectives for whatever will come out as plan.

However attractive those objectives may be, there is a lot more in GND than anyone will deliver.  Fighting climate change will create many jobs, but will not—by itself—solve unemployment.  It’s okay that part of the selection process is political, but that can’t be the main thing.  Roosevelt had a brain trust of people driving the original New Deal.   We need something like that here, and we also need a broad-based process for contributions to the plan.  It’s not enough to let the Presidential candidates or other players chime in.  This is a real test for our ability to govern.

Healthcare makes me nervous for similar reasons.   Medicare for All sounds very specific, but one hopes it’s not.   A literal Medical for All solution would not be a simple change and would force a premature answer to a problem that deserves careful study.   Virtually every developed country other than us has implemented some form of universal healthcare, and there is quite a lot of variety in the solutions.   We have every opportunity to make a careful and successful choice for both the overall plan and the sequence of steps to get there.

I don’t see enough of that happening.  Thus far there seems to be more concern about how to relate to Medicare than about how other countries have achieved universal coverage.  Positions of Presidential candidates seem like shots in the dark.  We should be careful to avoid making the transition harder than it has to be, we should avoid fighting battles we don’t have to, and we should certainly make sure to keep the ACA surtax!

A third and final topic is international affairs.   What’s worrisome about that one is that there is no way of avoiding competing objectives.   One of the biggest mistakes of the current administration is its zero-sum approach to the rest of the world.   We’re trying to “win” international affairs by making sure everyone else loses.  Such belligerence may sound great—defending America—but it’s a wrong model.  The world has learned the hard way that economic nationalism is self-defeating.   We need rules of engagement so that nations can participate in building shared prosperity.  The world has a real chance to succeed at that, but it’s not a given.

In particular it’s not easy for us and not easy now.  The drastic changes in the world economy call out for nationalism and trade wars.   “The worst thing about globalization is everything that can be blamed on it.”  Better trade rules will help some of it, as will a better safety net.  But the problems won’t go away.  Not only are we going to have to say no to tariffs, but we may also have to spend serious money outside the US to help poorer countries fight climate change.  The only way forward is to recognize how interconnected we all are.  That applies to Trump’s Devil’s bargain with dictators too.

Both the country and the world need us to get this right.

 

 

Saving the Country

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This note grows out of a comment made during the election night coverage of the midterms.  Analysts were breaking down the vote in various categories, and one of them remarked that if you just look at white voters, this seems like a completely different country:  Republican voters outnumbered Democrats 3 to 2.  They were all-in for the Trump program.

It’s worth paying attention to what that means.  Diversity is not a matter of tolerance; it’s a matter of national success.

Immigrants and their families are assets by any statistical measure.  They need to work harder to succeed, and they do it.   As the various waves of immigration entered this country, they have adapted and prospered, and the country as a whole has benefited.  It’s no accident that the most prominent players in our new economy—Google and Apple—were founded by an immigrant and the son of an immigrant.

But there is another aspect to this as well.   Outsiders (and not just immigrants) are not so easily tempted by images of an idealized past paradise.  Those siren-song images are not from their past, so they can keep focused on reality and the future.

Despite the many similarities between the Trump regime and the early stages of the “illiberal democracies” of Poland and Hungary, our diversity provides perhaps a degree of protection.  White voters have not called all the shots in the midterm election.  And it’s possible to believe that we’ve taken a first step back from the brink.

The problems of the Trump regime affect everyone.  First and foremost, we are squandering our strongest economic advantages out of ignorance and arrogance.  And we are at each other’s throats by conscious choice.  Dictatorships are not just bad for outside groups, they are historically bad for everyone.

So we should give credit where it’s due.  Three cheers for diversity in all of its shapes and colors—the saviors of the country!

 

Thinking Back to the 2008 Crash

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There have been many articles recently reviewing what happened in 2008 and how things have evolved since then.  It’s a good thing we’re thinking about it, but there seems to be a tinge of inevitability to our memories, as if it was all a fact of nature and we need to understand the science of how things turned out as they did.

That’s wrong.  Blithe confidence in deregulation caused the crash.  The Koch-controlled Republican Party chose—with unconscionable cruelty—to prolong the pain of the downturn, so as to get a new President who would deliver massive tax cuts for the ultra-rich.  (Remember the “balanced budget amendment” and compare with the current deficits.)  And they have placed in power and continue to support a person who in their own words “continues to act in a manner that is detrimental to the health of our republic.”  It’s a good idea to think about the crash.

Despite the much-discussed topics of globalization and automation, we are not living with unsolvable acts of God.  And there are no secret demons running around hidden in the depths of the administrative state.  Dramatically rising inequality—and the decline of the middle class—is not an accident, but a chosen result.  The deep divisions that exist in our society are not an accident, but a chosen result.  Follow the money.  Divide and conquer is nothing new.

This country has dealt successfully in the past with industrialization and massive immigration.  And was stronger for both.  And we were able to share that prosperity more broadly than it had even been done before.  We can do it again.  The current, hard-won worldwide prosperity should be good for everyone if it weren’t being sacrificed to greed.

This isn’t going to be easy.  The current inhumane, anti-democratic Supreme Court will be around for a long time.  The much-encouraged divisions in the society will not heal easily.  But we can start by heeding the recent advice of John McCain and vote out this cult that can’t even be called conservatives.  Democrats have a great variety of people running in this critical election.  Breadth of opinions is a good thing.  Belief in democracy is a requirement.

This needs to be done.  What we do matters everywhere.  We are the leaders of the free world, and that leadership is dearly missed.

NY Times: Inviting the Next Financial Crisis

This NY Times Editorial Board piece is the best summary I’ve seen of where we are and how we got there.

Our comment:

Maybe I missed it, but one thing that isn’t explicitly noted is how much worse this could be than 2008. The major stimulus then came from the US and China, both of whom are far less able today. Also the IMF issued a warning a few months ago about an enormous increase in the global level of debt. What’s particularly galling about the current situation is that the current, hard-won worldwide prosperity IS sustainable if it weren’t being sacrificed to greed.

I was glad to see the article point out the unconscionable cruelty of the Republican party in deliberately prolonging the effects of the downturn so as to sow discontent for the election. We should call things for what they were: the Republicans held the country hostage for six years, so they could deliver massive tax cuts for their ultra-rich donors.

The Firebug in Korea and China

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As the NY Times reported, Jimmy Kimmel had a concise summary of Trump’s treatment of immigrant children: “Thank you, Mr. President, for lighting the house on fire and now taking credit for putting the fire out.”

It’s good that someone noticed, but this case is far from unique.  Trump’s firebug behavior happens all the time, and he almost always gets away with it.  As with a real firebug, you can see the permanent damage once the false heroics are over.

Example number 1 is North Korea.  Trump started the fire with his visions of an imminent attack and then whipped it up as he played the out-of-control lunatic preparing a preemptive strike.  There never was any scenario where it made sense for Kim to attack the US, so Trump was in complete control of the perceived nuclear threat.  In a truly virtuoso performance he kept the fire going for many months of ups and downs (no surprise that the meeting was “almost cancelled”).  And the final act did no more than put out his own fire.

The nuclear security of the US is no better or worse than it was at the beginning.   There was no disarmament or even a concrete plan.  All the concessions were on the US side—approval of the regime and the cancelled military maneuvers (a signal of intended withdrawal).  All we’ve got is Trump telling us that Kim is now a buddy—which recalls George W. Bush’s famous comment on Putin: “I looked the man in the eye. I found him very straightforward and trustworthy—I was able to get a sense of his soul.”

The damage is on two fronts.  The first is the ringing endorsement of nuclear proliferation.   The best quote is from Beatrice Fihn, the executive director of the International Campaign to Abolish Nuclear Weapons (Ican) “We support diplomacy and peaceful solutions. But there is no agreement on nuclear disarmament and this all looked more like a big welcome party to the nuclear-armed club.”  The second problem is the signal of intended withdrawal.  China was undoubtedly happy to hear it.

However, firebug behavior is even worse when it substitutes for addressing a real problem.  That’s what seems to be happening with the Chinese trade war.  It looks like North Korea all over again.

We started the trade wars, and they’re in the news every day.  As with the Korean affair, we get a steady diet of Trump’s tough-talking belligerence together with analyst worries about the consequences.  That’s all self-created fire.  Despite the fuss, the real worry is that we’ve been set up for the deal to dowse it. Since the Chinese have already announced willingness to do something, and since Trump needs very little to cry success, there should be no problem getting the kind of PR-oriented agreement we got from Kim.  Market access can be as murky as denuclearization.

There’s another factor too.  China matters to Trump in a way no one should ever forget.  The development of China is the biggest single opportunity for the future of Trump’s businesses.   The $500 M already reported is the tiniest bit of it.  That’s another reason this great deal is going to happen.

And the damage will be monumental.

For starters, the Chinese are not amused and have cut back Chinese investment in the US to almost nothing.  Deal or no deal, there’s no reason to believe they’ll turn that around.  It also says a lot about the level of true cooperation we’re going to get on any deal.

The main point, though, is that we will miss a historic opportunity to get real trade concessions from the Chinese.  By antagonizing our European allies as well as the Chinese, we’re losing half our leverage, and Trump’s need for a deal undercuts negotiations even more.  Following the North Korean model, we’ll take what we’re given.  As the Business Round table of CEO’s pointed out from the beginning, there’s a real danger of missing the boat entirely.

We’ll just have to see what we get!  (Recent update here.)