Making the Titans of Finance and Industry Accept Social Responsibility

Why is our society, our world, ignoring the warnings of climate change, destroying our environment, creating ever-larger inequality even as more people are lifted out of poverty?  Why is it that the U.S. middle class, which used to be such a strong, vibrant element of our society has become weak and stagnant?

The reason for all of this lies not with the mass of people on this Earth, who have no or little control of anything, even in their own lives.   The reason lies with those with ultimate power – the corporate titans of finance and industry.   

It is they who decide what is in their corporation's best interest, which is what will make the most money in the short run, and implement that plan of action without any concern for the plan's impact on the public good or the welfare of their workers.  And it is they who largely determine the regulatory scope of government, regardless which Party is in power, and so they are in most critical areas effectively unregulated.   

This is not an indictment of capitalism, as I made clear in my post, "Is the Problem Capitalism or Our Society?"  Regardless the economic system, it is the holders of capital – whether they be aristocrats, political dictators (Communist, fascist, or otherwise), or corporate titans – that have determined the fate of their economies, their workers, and the general public.   It is thus instead an indictment of man-made society going back millennia. 

Until the dawn of the 20th century, those who controlled capital pretty much had their way.   Whether it was the robber barons of the industrial revolution or the aristocrats of the old social/political order, these people could do what they wanted and treat people, whether their workers or cottagers, as they wanted.  Income inequality was huge with the large mass of people being both poor and illiterate.   Slavery may have been the most egregious example of this system, but it was definitely part of the system. 

It was only with the ascendancy of Teddy Roosevelt, of all people – a wealthy Republican – that finally some people with political power felt the huge damage that those with unregulated power wreaked on the masses, while acquiring astronomical wealth.   And so the progressive era was born.   The trusts were broken up, anti-trust laws were passed, and workers were protected and empowered for the first time, both through protective laws as well as government support for the growth of labor unions.   This movement gained further momentum in the 30s because of people's reaction to capitalism during the Great Depression and the election of F.D.R. with his crusading New Deal. 

As a result, the middle class grew from a small segment at the turn of the 20th century (15 - 20%) to become the largest single bloc in the population (around 70%) and the backbone of the country's economic prosperity at its highpoint in the 1970s.  This increase came about because the lower working class had largely become middle class.   In 1970, 62% of the nation's aggregate income went to middle-class households, compared to 29% for upper-income households. 

Then Ronald Reagan was elected President and things started changing.   Central to that change was the famous Reagan line, "Government is not the solution to our problem; government is the problem."  

From that perspective, the dismantling of government regulations that had protected the public and workers began and gathered steam in the decades that followed.   Culminating perhaps most significantly in the repeal of the Steagall-Glass Act which was passed to regulate banks in the aftermath of the 1929 stock market crash.   

This repeal happened during an otherwise liberal Democratic administration (Clinton), but with wall street insiders in key cabinet positions and Republicans in control of both the House and Senate.   Efforts to reenact Steagall-Glass after the 2008 market crash and recession failed, as did efforts to regulate derivatives – all of this again under a Democratic administration with full control of Congress. 

The result of this disempowering of workers/empowering of corporations together with the forces of globalization, which began in the 1970s, resulted in the stagnation of worker's salaries.    While wages have risen (26%), their purchasing power has stayed the same during the 50 years between the 1970s and 2020; or said another way, salaries adjusted for inflation have remained the same.   While those in the top 1% rose 160% during the same period, unadjusted for inflation.

As a result of that stagnation together with many formerly middle-class workers falling back into the lower-class income category, the middle class in 2015 accounted for just under 50% of the population – a significant drop since the 70s – and accounted for only 43$ of the nation's aggregate income, down from 62% in 1970. 

The middle class was also the main victim of the finance industry's predatory lending schemes, made possible when Steagall-Glass was repealed, that were a major cause of the 2008 recession.   The recession cost the middle class not only jobs but also resulted in the foreclosure of millions of homes.   (I do not include the upper class as a main victim of the recession because although they lost heavily, they generally regained their wealth when the market rebounded.) 

Another measure of how the middle class have fared during this period is to look at income inequality.   One measure of this is that in 1929, the richest 0.1% of Americans held 25% of the country's wealth.   By the 1970s, that percentage had fallen to below 10%.   Over the past 40 years, it has again risen to around 20%.

We have gone back to the future, with those with the control of capital being largely unregulated.   Yes, we don't have child labor anymore and various other controls remain in place.   But so many have been weakened or repealed that corporations have been empowered to consider almost no interests other than their own greed.   Workers are no longer considered an asset to be nourished and grown but as a cost center to be controlled. 

Clearly, if left to their own devices, corporate leaders will not do what is in the best interest of anyone other than themselves.   They only act as responsible members of society when they are forced to by government laws. 

And so, in one post, "Toward a Reformed Capitalism," I urged the laws of incorporation be changed to force companies to consider their workers' interest as well as the public good.   Let me quote from that post:

"We must reexamine what a corporation is.  What is its function in our economy and society?

Corporations are a creature of the law.  Corporations are allowed the benefits of incorporation because they provide something of value … they are critical to the economic health of the country and of their workers.  They also thus meet a societal need.

So from a governmental/societal perspective, corporations exist to enhance the greater good.  Unfortunately, as we have seen repeatedly ever since the industrial revolution, corporations have been mostly intent on making money and so have done much that harms, that is not in keeping with, the greater good.  And typically with full knowledge of that harm.    And they have been abetted by the government's action or inaction.

The answer to this conundrum is to reform the laws under which corporations are organized by restructuring their governance.  The goal of this effort should be to make consideration of the greater good … the public interest as well as worker interest … an integral part of the corporate decision making process. "  Specific recommendations are made in the post. 

These recommendations are not unrealistic or totally novel.   Most countries in the EU require employee board-level representation.  They also require a number of "independent" directors; but these are not directors who are tasked with representing the public good, they are just tasked with preventing conflict of interest in decision making.   My recommendations go much further.

This will take strong political leadership and lock-step support from Democrats in Congress because this will certainly not be a bi-partisan effort, not in the current political climate. 

This may result in the end of corporations as we have known them, but they will still be strong and financially profitable.  As I noted in the post, this proposal does not in any way eliminate the profit motive in corporate decision making, nor the amount of profit they seek to make.   It just ensures that the public good and workers' interests are considered in the adoption of corporate plans, and so it will most likely impact the amount of profit.   

Republicans will scream, "socialism."  But this is not socialism in any form; government is not taking over the role of the private sector.   This is not even the government hovering over or involving itself in corporate decision making; it is just setting the law which corporations must follow.   

Clearly this is a change in the way things have been done.   But it is a change that is wholly in keeping with the reason why corporations are sanctioned by the government, why government gives corporations the benefits of incorporation.   And it is past due because of the havoc corporations have caused in the economy, the environment, and people's well-being due to the unregulated effect of corporate greed over the past four decades.   

It is important to note that in the period between the passage of Glass-Steagall in 1933 and its repeal in 1999, the U.S. suffered no major financial crisis – there were recessions but they were due to monetary policies or other factors.   Further, during the period of progressive corporate regulation and increasing government measures supporting low income families, income inequality decreased.   

Since the repeal of that act we have had a major financial crisis and economic downturn, major stuck market volatility.   That together with the decrease in regulation and lower-income supports since the 80s (pre-Biden) returned income inequality to its pre-Depression levels.   One measure of this is that in 1929, the richest 0.1% of Americans held 25% of the country's wealth.   By the 1970s, that percentage had fallen to below 10%.   Over the past 40 years, it has again risen to around 20%.

If we want to maintain a sound, stable economy and one that fosters greater income equality, then government must take this step to reform capitalism and our society. 

The Menace of Airbnb and How To Control It

As I’ve traveled this past year, spending time in a variety of places, I’ve discovered that Airbnb is having a very harmful impact on both the availability and affordability of housing stock in both cities and small towns.  

Yearly rents are going up because there are fewer apartments or houses available to rent, as owners discover there is more money to be had in short-term Airbnb rentals.  And housing stock available for sale has diminished, again because owners can make so much money from Airbnb rentals, resulting in higher prices for what is available.   

Airbnb is thus destroying the traditional diversity of communities, their fabric.  Middle class or elderly people find it increasingly difficult to either stay in or move to such areas.  Until recently, the issue of affordable housing was confined to housing for the poor or low-income working class.  Now it includes the middle class and elderly in any place that attracts tourists and thus provides a market for Airbnb rentals.  Additionally, such rentals often cause a nuisance to neighbors.

In most of the communities I’ve visited, local government is concerned about what is happening and is trying to regulate Airbnb.  But they are going at it in an ineffectual way.  They are starting with the presumption that owners have a right to rent out their property in this way. 

But do they?  If an owner, especially a non-resident owner, rents out either his whole house or rooms on a short term basis, how is this different in substance from a bnb or a hotel?  Yet it is being regulated more like the owner who used to live in a house and took in borders to help make ends meet.  Thus they talk about placing a cap on the number of rentals or requiring owners to pay a small annual fee.

I propose instead that zoning ordinances be amended so that Airbnb rentals, where the owner does not continue to reside on the premises during the rental, are regulated similarly to a bnb or a hotel.  Because of the impact on the whole community as well as immediate neighbors, approval of an Airbnb operation should be required by the local government authority before it can begin.  Input from neighbors should be obtained as part of a “special use” application if the area is zoned residential.

This is not a case of regulating the internet or modern technology.  This is a case of government regulating how a property is used, which is the traditional function of zoning. 

How to Respond to the Election?

After the dismaying election season and the heartbreaking election results, my first response was that I needed to start planning to leave the US.  The country is broken in so many ways.  The rage unleashed by Trump against Latinos and Muslims is scary.  As is his contempt of women and the “elite,” meaning educated liberals.  Given the darkness of his campaign, I saw things could easily move in an even more unpleasant direction.  

And incoming reports confirm my fears; just since the election, hate crimes are on the rise, committed by people often invoking his name.  And the FBI just reported that hate crimes were up 6% this past year.

During a morning meditation though I asked myself what a spiritual person should do.  What did spiritual, good people do in other situations where people were persecuted?  And I thought of the people who at great risk hid Jews or helped them escape from the Nazis.  I thought of the Danish citizens who marched with yellow stars on their coats.  I thought of churches here who offer sanctuary to undocumented aliens.  I thought of what Pastor Niemöller said in Nazi Germany, “First they came for the Communists, and I did nothing,  Then they came for the Jews, and I did nothing.  Now they have come for me, and it is too late.”  I knew I had to do something.

At the same time, I was aware that millions of Trump supporters have been suffering terribly for decades as a result of jobs lost overseas and wage stagnation, their middle class world shattered.  That they rightfully felt neglected by the political establishment, and their anger was a reflection of that suffering.  They need help as well.

Each of us, in ways small and large, can act to let those being attacked as well as those who have suffered know that they are not alone.  

As for myself, I realized that this disaster presents a once in a lifetime, perhaps once in history, opportunity for America to get past its internal problems of racism and all forms of bigotry and inequality.  And so I came up with the idea of starting a nonprofit, American Solidarity, which would, in concert with other national organizations, organize mass non-violent rallies across this country for people to stand in solidarity with Latinos, African-Americans, Muslims, LGBT people, and women, as well as the white displaced worker.  To show that you can’t rebuild America physically while leaving its social fabric frayed.  Go to www.american-solidarity.weebly.com.  

I purposely am not calling these gatherings “protests” because that’s not the spirit I want to project.  Why?  One has to understand a basic fact regarding Trump: if you criticize him in any way, he will respond with vitriol and disdain.  And so all the ranting protests, regardless how large, will not move him an inch and actually be counter-productive.  He feels victimized by the establishment, by moderates and liberals, and so this type of protest will only feed that perception and strengthen his resolve to go his own way, supported by the alt right.   

Instead, I want these rallies to be dignified statements of solidarity with all those being attacked as well as the millions of blue collar workers who have been suffering terribly.  

What we need is a Gandhi/MLK moment.  This is a time for all 63,000,000 of us who voted for Hillary as well as millions who voted for Trump out of economic despair, not hatred, to come together and say to Trump, “yes, rebuild the country’s infrastructure, create jobs, but be, as you pledged, the president of all Americans.”

Economic Justice for All - Why and How

We live at a time where there is no greater challenge for America (yes, even greater than the terrorist threat) than forging a nation of greater economic justice and income equality.  The existence of a large portion of the population struggling to keep their financial heads above water - who 40 years ago were solidly middle class and prospering - and another large segment who are poor and without opportunity -  as they have always been - creates a drag on our economy, a drag on the social fabric that holds us together as a nation, and a drag on the democratic strength of America.

The Declaration of Independence famously says that all men are created equal and that they are all endowed with the inalienable rights to life, liberty, and the pursuit of happiness.  Less well known is the fact that it further states that it is government’s purpose to secure those rights.

Thus whether from a sense of America’s founding values, a general sense of social justice, or a practical desire to strengthen America economically, we must find ways to reverse the trend of the past 40 years, recreate a robust middle class, and for the first time provide real opportunity for the poor to rise up from poverty.

Some will say that these are lofty goals and beyond our current means, that we are a country in financial stress with a huge debt.  To answer that I would say that we are a very rich country and there is in fact no shortage of available funds to meet these goals without further increasing the debt.  It is a question of priorities.  It is a question of how much revenue is raised and how that revenue is spent.  It will no doubt mean having to increase our revenue as well as shift current government spending patterns.  So be it.

Given the importance of the proposed actions to the health of our nation, such changes are not just warranted they are necessary.  If we want America to be strong as a nation and for its people to be strong in body and soul, then we must act.

What are the practical ways in which such a policy commitment to the American people would be carried out?  The people deserve to know.

1.  Through renegotiating international trade deals and changing the tax code, we will both shift many lost jobs back to the United States as well as encourage the creation of new manufacturing middle-class jobs here.  Our current free trade agreements and tax code have worked to increase the wealth of corporations while destroying much of our middle class by shipping their jobs overseas and either leaving them unemployed or underemployed in low-paying service industry jobs.

2.  We will embark on a massive infrastructure replacement program which is desperately needed to ensure a strong America.  Virtually anywhere you look, our infrastructure is both outdated and in dangerously bad repair.  By replacing this failing infrastructure with technologically advanced systems we will strengthen America, we will create new business for a multitude of American companies, and we will create jobs for millions of American workers.

3.  Through increased investment in education in areas of our cities and country which have historically suffered from a lower rate of investment and quality than those areas of greater affluence,  we will create the first generation of American children who truly will be able to experience equal education opportunity.  No child deserves to be left behind.

4.  No American, regardless of color, should be discriminated against.  It is anti-American, based on both the Declaration of Independence and our Constitution.  The laws already on the books against discrimination and ensuring equal opportunity must be more vigorously enforced.  Employers and institutions should be required to have plans in place that strongly discourage discrimination.  (This is already required by some states; it should be Federal law and thus uniform.)

In limited areas however, such as education, where Blacks and other poor people have not had access to equal education opportunity, we need to continue affirmative action to help bring the country into balance.  But once the education initiatives outlined above have been put in place and a generation of children have benefited from them, there would be no further justification for affirmative action.  Each person should be judged on their merit.

5.  To pay for these programs, in addition to shifting current budget patterns, additional revenue will need to be raised, as noted above.  A large portion of that increased revenue should come from higher income and other taxes (such as luxury) on the very rich.  

Let me be clear … it is no sin to be rich and the ability to become rich is a strong motivator in our society to perform well and succeed, which in turn benefits society in many ways.  However, there comes a point where a person has acquired so much wealth where not only does one have more money than one knows what to do with but where, from a social contract standpoint, it becomes obscene.  Such income should be taxed at a high rate.  Citizens who have profited to such an extent from the opportunities afforded by our economic/political system have a social obligation, as citizens, to pay back to the system to ensure that it stays strong and that more people come to have such opportunities.

Besides being what I think the country needs at this point in time, if Hillary Clinton and the Democratic Party adopted such a slogan and program as a key element of the 2016 campaign (yes, many of my points are already included in the 2016 Platform, but a platform is cumbersome), it would go a long way … assuming it was presented enthusiastically, vigorously … to blunting Trump’s claim to be the savior of the forgotten.  It would maximize her chances of not just winning, but winning big and Democrats’ regaining the Senate and perhaps even the House.

White Working Class - The Republican Base?

While reading a recent New Yorker, I came upon a sentence that made me stop in disbelief.  “The base of the [Republican] Party, the middle-aged white working class, …”

I was aware that many working class whites had become Reagan Democrats and that many were at the heart of the Tea Party’s strength.  But that things had gone so far that this part of the traditional Democratic base had now become the Republican base stopped me in my tracks.  Was this true?  What in the world had happened?  

As I thought through my answer to this question, I sadly realized that it was true and how it came to be.  The factors:  economic woes, race, class/elitism/intelligence.

The Democratic Party has been the party of the “common” person for most of its history in that it has championed the rights of the worker, immigrants, and the poor, but not Blacks.  Whereas the Republican Party has been the party of the moneyed establishment and was (and still is) steadfastly against any advancement in the rights of the lower classes, including workers.  Not surprisingly, the Democrats were rewarded with the loyal votes of white working-class America.

The first break in this alliance came with the passage of the Civil Rights Act of 1964 under the leadership of President Johnson and the Democrat-controlled Congress.  Working class whites in the South, together with many white collar whites, left the Democratic Party in droves and became the key to the solid Republican South.  The percentage of working class whites voting Democratic in 1960 and 1964 was 55%; in 1968 and 1972, 35%

While this situation improved during the 70s because of Watergate and a sharp recession, the defection returned with the presidential candidacy of Ronald Reagan.  White northern and midwestern working class men had begun feeling the pinch of stagnating wages and the loss of jobs.  They were attracted to the “can do it” energy of Reagan, his patriotism, and just him as a person.  He was not an intellectual; he was someone they could relate to.  The Democratic candidates during the period, by comparison, did not have charisma, nor exude energy, nor were they flag-waving patriotic … and they were definitely intellectual and spoke like it.

The economic problems of the white working class also increased their resentment over Democratic support for things like affirmative action, welfare, and women’s rights.  They saw the Party as going to bat for everyone but them.   And so again in 1980 and 1984, working class whites voted Democratic only 35%.

While Bill Clinton (who was more down-to-earth and not so intellectual) did somewhat better, the numbers again went down with Al Gore and John Kerry.  And that has continued in 2008 and 2012 with Obama.

Pre-Civil Rights Act, the issues binding the white working class and the Democratic Party were economic.  In that period, Democratic progressivism was mostly about economic prosperity.  Post-Civil Rights Act, the issues driving them away were their worsening economic situation and the Democratic’s new emphasis on social liberalism, including most recently the advancement of gay rights.

The white working class has always been conservative on social issues.  During the past 40 years they have also come to feel that the Republicans will do a better job with the economy.  And so even though the Republican Party has never shown any real interest or caring for the plight of the working class and instead has done the bidding of corporate America, whose interests are usually diametrically opposed to that of the working class, we see this continued phenomenon of working people voting against their economic interests.

There is evidence that with the Trump candidacy this trend will only increase.   Through his outrageous statements regarding Latino immigration as well as his support for protectionist policies to protect American jobs, he may be attracting even greater white working class support.  

For example. it was reported that in one depressed county in Pennsylvania, working class white Democrats are “flocking to Trump.”  Before the primary, 4,647 Democrats and independents in Luzerne County switched their registration to Republican, nearly four times the number of Republicans and independents who changed their registration to Democrats.  One caveat about this example, since Luzerne County is in the coal region, Hillary Clinton’s ill-advised and much publicized comment about putting a lot of coal miners out of work may have more to do with this switch than Trumps comments.  Nevertheless it is troubling.

In the forward to the 2011 edition of We Still Hold These Truths, I noted the following about the plight of the working class.  (Many today may be surprised to hear blue collar workers referred to as part of the middle class, but for decades they were because their unions provided them with very-well-paying jobs.)

“The middle class is made up mostly of nonprofessionals … people with only a high school degree. As manufacturing and other middle class jobs have disappeared, their standard of living and the quality of their lives has been drifting downward. The recent recession only exacerbated the trend. In March 2011, 12 percent of those with only a high-school diploma were unemployed compared to 4.5 percept of those with college degrees and 2 percent for those with professional degrees. The greatest impact has been on men … in 1967, 97 percent of men 30-50 years old in this cohort were employed; in 2010, just 76 percent were. Not only has this resulted in economic problems for these men and their families, these pressures have brought about greater interpersonal stress, with a resulting increase in divorce rates and other examples of social dysfunction. The greater income inequality that developed during this period has also resulted in heightened actual and felt lifestyle differences between the middle class and those with more income and education.”

I wrote then that the world the working class knew since WWII has been turned upon down resulting in them being scared, angry, and alienated.  I chided Democrats for not highlighting this important shift in the American social fabric.  They talked about the need to protect the middle class (everyone always does), but the evisceration that had already occurred was not mentioned … Democrats had and have not shown that they feel the pain of the working class …  and practical measures to reverse the trend are not much of anything.

This year, Hillary (assuming she is the nominee) must show that she feels the pain of the working class.  She must distance herself from her Wall Street backers and show that she is willing to fight for measures to protect workers and bring back jobs, even if those measures are against corporate interests.  Although at this point it may well already be too late.  Hillary has been around long enough that people already have a very fixed opinion of her which new-sounding words from her can probably not effectively overcome.

Also, as I have been urging for years, Democrats must expose Republicans for the hypocrites they are.  They never have and they never will do anything to support the American working class.  Trump may make noises that appeal to the working class, but his policies are not Republican Party policies and they will never be enacted.

Even if Hillary can win without these votes because of the changing electoral demographic, the American worker cannot be left in the dust. They are in pain.  They are a natural part of the Democratic Party’s constituency.  Their well-being is important to the economic stability and health of our society.  Republicans will in the end do nothing to help ease their pain.  Democrats must step up to the plate.

Growing a Stronger America - More Self-sufficient, a Stronger Citizenry, a World-Class Infrastructure

America is a great country.  But we are slipping.  If we want to remain great, we need to grow a stronger America.  America must become more self-sufficient.  It must do everything it can to create a better educated, healthier, more engaged citizenry and rebuild a strong middle class.  And it must either replace or repair an aging, often archaic, infrastructure with one that will both meet the needs of the citizenry as well as support our economy’s competitiveness into the next century.

More Self-Sufficient:  The impact of globalizations has been a disaster for America’s well-being.  Instead of the advertised promise of globalization, it has become a curse for all but the multi-national corporations engaged in it.  Yes, most of us do like spending less money for all sorts of merchandise, and it has kept the inflation rate down, but we have paid a heavy price for that benefit.

First there is the well-publicized loss of good-paying, middle class jobs.  This has resulted in millions of previously well-employed men either being unemployed, employed in a new field at a fraction of their previous wage, or at the same job but at a wage that has stagnated for decades.  This has decimated the middle class.

That impact may have gotten the most publicity, but there is much more.  The loss of earning power by a large segment of the population has resulted in a weaker domestic economy.  You can’t buy as much when you’re not earning as much.  It’s as simple as that.  And the influx of less-expensive goods from abroad together with our dependence on imported oil has worsened our balance of trade deficit, thus weakening our economic independence.  Foreign countries own 34% of US debt, and China alone owns over 7% or $1.2 trillion.

Beyond weakening the domestic economy by reducing spending, globalization together with tax policy has increased income inequality.  From 1980 to 2014, the US per capita GDP increased from $28,133 (adjusted for inflation) to $50,211.  That’s an increase of 78%.  (The figures vary considerably, so I used the ones showing the least growth.)  By comparison, the increase in the US median personal income (not the average, but the center point) rose from $20,919 to $28,829, an increase of only 37%.  By contrast, looking at the increase in average personal income, which is skewed by the increase of those in the top income categories, the increase is 104%.  

The economy has grown, multi-national corporations have profited, the rich have gotten richer, but the average worker has not.  Without question, the middle class has been left behind and adversely impacted by these forces.  This is not healthy for our economy or our society.

Further, we have now become more dependent on the health of other, specifically Asian, economies.  The fortunes of our corporations and thus the stock market are subject to the vagaries of these economies, as we’ve often seen.  The stock market has been more volatile since globalization than before.  And surprisingly it doesn’t matter how strong or unconnected with global trade a company is … markets are so interconnected that when there’s a rumble in Asia’s economy, all U.S. stocks go down.

Lastly, but significantly, because what is happening in distant corners of the world has become even more important to American corporations and our economy, it has given more credence to the argument that we need a huge military able to go to any spot in the world to defend our national security.  We are witnessing an increased blurring between what is in our national security interest and what is in the interest of our multi-national corporations.  But they are not the same.  

That’s really what happened in Iraq, as our national security was never at stake, not even had there been WMDs in Iraq. We should never be in a position of going to war to protect corporate supply lines.  We should never expend the lives of our youth and our material wealth for such a purpose.

For all these reasons, we must do everything we can to make America more self-sufficient.  We must bring manufacturing back through tax and other policies.  And we must engage in a serious effort both to conserve energy use as well as wean ourselves from our addiction to oil by developing alternative energy sources and alternative energy transport.

A Stronger Citizenry.  The United States, when compared with the rest of the industrialized world, ranks nowhere near the top, more often near the bottom, on various markers that measure the strength of its citizenry:  education, health, and political engagement.

Education.  Whether we look at the PISA (Program for International Student Assessment) math and science scores which show the US ranking  25th and 24th, respectively, among 30 OECD countries, or data that places us 18th out of 23 comparing high school graduation rates, or 15th in college completion, or 10th in the percentage of 25-34 year-olds holding an associate degree or higher, the status of US education is definitely not world class.  (Note: the number of OECD countries used for comparison varies because of the number that have available data.)

Health.  Looking at health status compared with the other OECD countries, the US again does not fare well.  The US ranks 26th in life expectancy, has the 7th highest rate of infant mortality, ranks dead last (first) by far in the percentage of overweight and obese children and adults, has the 6th highest rate of diabetes, ranks 18th in 5-year survival for cervical cancer though it does rank 1st in breast cancer survival, and ranks dead last in access to health care (2013, so before Obamacare fully kicked in) … oddly the US ranks 1st in people self-reporting that they were in good health … all this despite the US spending 2 1/2 times the OECD average on health care per capita.

Political Engagement.  The US ranks 31st out of the 34 OECD countries in the percentage of voting age population who actually vote.  The result is that a rather small minority typically decides who governs us.  For example, in 2000, the voter turnout was 

51.2%.  Since Bush won with 47.9% of the popular vote (actually less than Gore got), only 24.5% or less the 1/4 of the voting age population elected Bush.  In 2008, the voter turnout rate was higher, 58.2%.  And Barack Obama won with 52.9% of the vote.  But that still meant that 30.8%, less than 1/3, of the voting age population elected him.  

It should be a point of extreme concern and embarrassment, if not shame, that the US … the founder of the modern democratic state and the wealthiest and economically strongest country in the world … has its elections decided by such a small minority of its voting-age population.  That election results express the will of the majority is even more important now that the two major parties have such extremely divergent positions on most issues.

Regardless what the cause is … voter apathy, voting barriers (for example, our elections occur on a weekday whereas most occur on the weekend or a declared holiday), poor campaigns, lack of education … something is not right and it must be addressed.  For starters, just changing the day that our elections are held, or declaring at least Presidential elections a national holiday, would most likely make a significant difference.  

But Republicans seem intent on doing everything they can to create more barriers to voting, not less.  Could this be because studies consistently show that non-voters are disproportionately poor or less well-off, younger, and tend to favor higher taxes and more government spending?  For example, 46% of nonvoters have household incomes below $30,000, while the percentage among voters is 19%.  43% of nonvoters are people of color, while only 22% of voters are.  And 34% of nonvoters are under 30, while only 10% of voters are.

Our democracy is based on the philosophy of majority rule.  But the reality is far from that.

How can we be a great country, let alone the leader of the world, with a citizenry that is relatively poorly educated, less healthy, and not politically engaged when compared with other developed countries?  A country’s strength and competitiveness are not based on the strength of the top 20% of its citizens, but on the strength of all its citizens.  

In addition to these factors on which there is comparative data, I noted in a recent post, “Our Failed Economic/Social/Political System,” that America has not lived up to its promise or its potential to provide true equal opportunity regarding “life, liberty, and the pursuit of happiness” and that this was critical to our country’s future well-being.  I noted there that in addition to various factors, including equal access to health care and a quality education, rebuilding a strong middle class was critical.

Improving education, health care, and political engagement, providing meaningful equal opportunity, and rebuilding a strong middle class will require more than a band-aid approach.  We must find the strength to rethink these issues at the most fundamental level and devise a strategy for each that will lift America’s citizenry up to an appropriate level for a country that proclaims itself to be the best in the world.

A Healthy Infrastructure.  In another recent post, “Our Archaic Transportation System,” I lamented how our transportation system is not up to meeting our needs now, let alone in the coming decades.  The same has been reported elsewhere on everything ranging from our electric grid to the state of our water and sewer systems.  

We pride ourselves on being a great and powerful country, on the cutting edge of technology, and yet in many important areas of our nation’s infrastructure, not only is it outdated but it is often crumbling and undependable.  This situation must be corrected if we are to continue being a strong nation and a world leader.  

Addressing most of the issues I’ve noted will necessitate a shift in our national priorities, as I’ve noted in various posts.  If we are serious about growing a stronger America, improving our nation’s health, it will require us to reexamine what is important and how best to use our resources to provide what is needed.  This will require a nation and a Congress who first and foremost ask, “What is in the best interest of the nation,” because they understand that what is in the nation’s best interest is ultimately also in our own individual best interest.

Our Failed Economic/Social/Political System

America has a failed economic/social/political system.  I did not use the word “broken” because America has never reached its promise, never fulfilled its potential.  What is the promise of America?  It’s found in the words of the Declaration pf Independence … “that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness.”

We are a country of great wealth, the strongest economy in the world, and yet we live in a country where a vast portion of our population have never tasted the fruits of equality and where income inequality is greater than it’s ever been.  We live in a country where for a vast portion of our population, because of the lack of meaningful equal opportunity, the rights to life, liberty, and the pursuit of happiness are almost meaningless, a cruel tease.

First, let’s be clear what is meant by “equality” and “all men are created equal.”  When the writers of the Declaration used that phrase, they were speaking in a spiritual sense, not a practical one.  It was a statement of the Enlightenment’s vision of natural rights, as elucidated by John Locke, among others.  

Obviously, all men are not created or born equal because they are born to vastly different circumstances, whether to poverty or wealth, whether disabled or healthy, whether black or white.  What the Declaration meant is that all men (and women) come out of the womb equal in the sense that they all have the God-spirit inside them, they are all of equal value.

And because they are all of equal value in the eyes of their Creator, they all have and deserve an equal right to life, liberty, and the pursuit of happiness.  This equality does not mean that they all have a right to have or achieve the same status and wealth, but that every person has an equal opportunity to life, liberty, and the pursuit of happiness.  

What each person makes of that equal opportunity is that person’s responsibility.  But it is the system’s responsibility to insure that everyone have that equal opportunity.  That latter thought is expressed in the Declaration when it says, “that to secure these rights, governments are instituted among men.”

How has our system fared in that regard?  In answering this question, I shall limit myself to the period post-Civil War, post-14th Amendment, post-19th amendment.  Clearly, before those points, even viewed in a strictly legal sense,  the vast majority of the population was in no sense equal, either because they were female or they were black.

First, though, the question must be asked, what is necessary, what is the foundation that an economic/social/political system need provide, in order for there to be meaningful equal opportunity?  I think the following:

• The laws must provide for equal opportunity.
• Social authority and peer pressure must not tolerate any deviation from equal opportunity and discrimination must be denounced as unacceptable.  
• All children, regardless of background, must have an equal education opportunity both with regards to its quality and to its accessibility.  
• Recognizing that a certain minimum standard of living is necessary for a person’s feeling of self-worth because it enables them to secure safe housing and sufficient food, the system must provide a method to secure that standard of living for those who cannot obtain it of their own accord.
• All people must be guaranteed access to adequate health care; if you do not have your health, you cannot make full use of equal opportunity.
• The system must foster a sound middle class, which is often a launching pad for further upward mobility.  

1.   Legal equal opportunity.  With the glaring continuing exception of sexual orientation (and gender identity), Federal law and most state laws provide that discrimination is illegal in all areas of the public sphere … employment, housing, entertainment, restaurants, etc.  By executive order, discrimination on the basis of sexual orientation is illegal in federal employment.  And by virtue of the Supreme Court decision, discrimination in marriage laws is now illegal.

2.   De facto discrimination.  But despite all the laws on the books, de facto discrimination towards blacks and towards other people of color is rampant.  Discrimination towards women is not uncommon, and certainly pay equality is not a general practice.  

Part of the reason for this continuing discrimination is our history … old attitudes die hard …  but the other part is we cannot say that “social authority and peer pressure” do not tolerate discrimination and denounce it.  Some social authorities do, and in some communities peer pressure does, but as a general matter, discrimination is the elephant in the room.  It’s there but few care to discuss it.  Those in power in our society appear to have little or no interest in ending this discrimination.

3.    Equal opportunity of education.   Before children even enter school, a significant factor impacts their educational opportunity … the extent to which they are exposed to basic learning skills, including reading, during their pre-school years. Not surprisingly, inner city children living in poverty suffer most from a lack of such exposure. We cannot change the family circumstances into which a child is born, but we can insure that every child receive full exposure to learning skills through pre-school programs.

Regarding primary and secondary education, there is huge inequality in the quality of education between states, within states, and within metropolitan areas.   The reason is that very little funding comes from the federal government (10%).  The rest comes from state and local sources, with local property taxes accounting for 50-70% of available funding in most localities.  Thus, the funding available varies greatly depending on the wealth of the school district’s residents.  

While quality of education is not solely dependent on the amount of money spent per student, it does have a real impact.   The other significant factor impacting quality is the attitude of teachers.  Many teachers in inner city school seem to view their students as hopeless and so put forth little effort beyond crowd control.  

The combination of these two factors delivers a double whammy to inner city school children.  The average high school graduation rate in the 50 largest cities was only 53% according to a 2009 report.  And for those who did manage to graduate, without a solid primary and secondary education the thought of higher education is so far out of reach it isn’t even a dream for most.  

That such students are in fact, however, not hopeless is shown by the ample examples of schools run with a different attitude that achieve "amazing" results with underprivileged children. 

4.   Minimum standard of living.  The Federal government spends a huge amount of money (11% of the Federal budget) on a variety of programs to provide financial assistance to those in need, primarily to families with dependent children.  This funding is augmented somewhat by the states.  With regards to food stamps, it should be noted that a large percentage of recipients work … the working poor.  But despite all of this spending, not only do we have a stubborn poverty rate that hovers around 14%, but the living conditions that most people in poverty encounter are horrendous and homelessness is a serious problem.  

What has gone wrong?  I understand the problem is complex, but rather than spend money on education and jobs to bring people into the workforce, we have doled out money to people and thus not surprisingly their status has typically not changed; they have become more dependent, not less so.  And there is no talk of fundamentally changing the system to help raise the poor out of poverty.  The reason … those with power in society really aren’t interested.  Clinton’s workfare program was a farce.  All the Republicans want to do is cut aid.  They seem to think that if you’re poor, if you don’t have a job, it’s your fault.  You’re lazy.

5.   Universal health care.  Despite all the effort to pass Obama’s Affordable Health Care Act, and the increase in the numbers of insured Americans that resulted from that measure, we still have a very inefficient, cumbersome system that relies primarily on private insurers.  And while many more are insured now, the plans that they can afford are mediocre in their coverage and many who previously had better employer-sponsored plans now find themselves with either plans that cost them more or provide less coverage and thus ultimately cost them more if there is a health emergency.  

This criticism is separate from that of our health care system which has so many serious problems that it is almost dysfunctional.  We continue to have both a health care system and accessibility to it that is substantially inferior to most of the other industrialized countries.

6.   A sound middle class.  This is the one area where the United States really used to excel.  We had a large sound middle class.  But then globalization and the trade agreements that fostered that movement resulted in millions of jobs leaving the U.S.  This was great for multi-national corporations, but bad for workers.  As a result, many formerly middle-class men are now unemployed, or they have found work at only a fraction of their former wage, or if still at their former jobs their wages have stagnated since the mid-70s because of overseas competition.   

Why would successive administrations, both Republican and Democrat, support this disastrous movement?  Because power in the U.S. lies with the major corporations and they wanted to be free to move jobs where labor costs less.  And because economic theorists said it was the right thing to do.  There has been no movement to either build new middle-class wage jobs or bring old ones back.  What effort there has been recently is to raise the wages of service workers, as in the fast food industry, to a living wage, which is important but does not create a middle class

Bottom line on all these fronts … our economic, social, and political system is controlled by powerful corporations and people with substantial wealth.  These forces have shown no interest in the betterment of their fellow citizens.  Their only interest is their pursuit of ever more wealth and power.  As a result, the Republican Party has no interest in the issues I’ve raised.  And Democrats, while they have an interest, lack the courage to stand up to these interests and call for a massive restructuring of how our government provides for the common good and helps those in need.  

And so the rich and powerful have gotten richer and more powerful, while the poor and middle class have gotten poorer and more powerless.   The problem is not so much one of insufficient funds or sources of revenue.  The problem is “the vision thing,” a lack of leadership and skewed priorities.  A disconnect from the promise of our founding documents.

This problem is far-reaching, extending into all areas of government responsibility, not just those affecting the poor and middle class.  As has become increasingly clear to me through my writing, regardless what the issue … the environment and energy policy, tax fairness, globalization, financial institution regulation, our archaic transportation system, replacing/repairing our infrastructure, education, health care, civil rights, foreign policy, and defense … it all comes back to real power residing with powerful corporations and the wealthy, not the voters who elect their representatives and the President.  We have a democracy in format, but not in substance.  

Money and power have of course always been a factor in American, and indeed all, politics.  It’s the nature of the beast.  And it’s also appropriate.  Business and finance have an important role to play in the health of our economy and should be supported.  

But the grip on power and influence by major corporations and the wealthy has increased greatly over the course of the last decade or more to the detriment of the common good.  Our system has lost its balance.  The Supreme Court decision in Citizens v United will surely aggravate the situation.  

If we are to reclaim government of the people, by the people, and for the people. then we must find a way to get big money if not totally then mostly out of politics.  Public financing of election is one obvious way.   There may be others, but that is not the topic for this post.

This will require an aroused electorate, because this will be the first test of the power of the people v the power of corporations.  (See my post, “How the Koch Brothers Hijacked the Middle Class Revolt and How To Take It Back.”)  Only if there is a popular movement so strong that members of Congress know that if they do not implement the will of the people they will be turned out of office does this have a chance of getting passed into law.