Showing posts with label role of government. Show all posts
Showing posts with label role of government. Show all posts

Thursday, November 7, 2024

The Real Reagan Legacy - Disrespect of Government

Republicans love to talk about the Reagan legacy in glowing terms, and there is indeed a Reagan legacy.  Some of that legacy has been good for the country, but some of it not.  

One of the worst aspects of his legacy is the "Me" generation, which has become the "Me" attitude of much of the populace. This focus on what is in my interests to the exclusion of the interests of others, let alone the common good, and to see one's own interests as disconnected from the common good, has created a self-centered citizenry.  


This attitude is not in line with the American social contract that developed in the early 1900s.  That social contract conferred not just rights with citizenship but also an obligation to respect the rights of others and support the government (through taxes) in its efforts to improve the common good.  Actually, as early as 1858, Abraham Lincoln said that, "each individual is naturally entitled to do as he pleases ... so far as he in no wise interferes with any other man's rights;"


But worst of all, it is Reagan who legitimized and spread disrespect of our institutions of government.  And it is this disrespect that ultimately has resulted in Trumpism and the far-right agenda of dismantling much of what our government does to protect the common good, which is its proper role – to ensure that the rights of citizens are secured.  


During his first inaugural speech, Reagan said that "government is not the solution to our problem, government is the problem."  There you have in a nutshell what has become the mantra of the far-right and of the base of people (at least a third of the population) who are devoted followers of Trump.  It should be remembered that Reagan was a prominent speaker against Medicare as "socialized medicine" in the early 60s before Medicare was enacted by Congress; he also spoke against Social Security. 


Reagan followed up that statement by saying that government is run by a group of elites rather than by the people.  Meaning that government is the problem because it is not being run or directed by Congress, the elected representatives of the people, but is instead being run by federal employees – the agencies – who by implication were a liberal elite.


But as noted above, contrary to the Republican mantra, government is there to protect the public, to act in its interests.  Why then do Republicans say otherwise?  Why don't they say that to serve the people, government must be improved?  Because it provides them with an appeal to disgruntled and disappointed voters, and because it is in furtherance of the interests of big business, which during the 20th century became the guiding force for Republicans.


There are so many inaccuracies involved in this view of how our government works that it's hard to know where to start.  But here is my rejoinder to Reagan and the far-right.


First, while I agree with Reagan that government is the problem, it's not for the reasons that he suggests.  And it is "run" by an elite, but not the elite he suggests.


Our government is, in fact, run in large part by major corporations.  Because they have a huge impact financially on election campaigns, they have major influence in Congress.  That impact is increased by their lobbying Congress regarding the passage and even writing of legislation.  In this way, corporations often have far more power than the people in determining the laws by which we are all governed.  That is the problem of government today.


This is a problem because corporations are solely concerned with maximizing their profit and freedom to act; corporate interests are thus often opposed to the interests of the average person, the common good.  There used to be a widely held opinion that, "What was good for General Motors was good for the country."  That line of thought was long ago discredited, debunked. Corporate-influenced legislation is rarely "for the people."  Indeed, it is often against their interests.  Even if the final legislation is still in the public interest, it will have been watered down by corporate lobbying to reduce the negative impact on corporations and thus the benefit to the people.


Not only do corporations often control the passage of legislation, but they are also largely to blame for the stubbornness of our recent high inflation.  The reason why prices were not responsive to the Federal Reserve's raising interest rates substantially is that corporations found during the pandemic that they could raise their prices without much impact on sales, and so increase their profits.    And so they continued to raise prices to increase their profit, even as the Fed increased interest rates.  


The second Reagan inaccuracy is that government is controlled by elites - the inference is that the people who staff government agencies are liberal elites.  First of all, there are plenty of conservatives in the civil service; they aren't all liberals.


But most importantly, most federal employees – civil servants – are regular people.  They are not elites.  They struggle with the same things that most people struggle with, albeit their jobs are more stable and they have better health insurance.  And while more of them have college degrees – 32% bachelor's degree and 21% advanced – that's not that much higher than the general population – 40%.


And as for higher-level appointed personnel, they represent the party that won the last election – so they are typically liberal under one administration and conservative in another.  They thus represent the people's will in that presidential election.  They may all be elites in some sense, but I don't think that Trump and his allies are complaining about the conservative elite, it's just the liberals they don't like.


Unfortunately, such is the power of demagoguery and hearing something repeatedly – what the Nazi propaganda chief Goebbels called "the big lie" – that Trump supporters believe anything he says.  Regardless how outrageous, his words are the truth.  So the fact that this charge against government is wrong, that this argument is against the people's best interest, and that while there is an argument to be made against government, it's a very different one – none of this will make any difference to the committed Trump voter.


While Democrats countered Reagan's statement that government is the problem, they have never, to my knowledge, countered Reagan's reasoning, explaining why it was faulty. This truth about government must be broadcast by Democrats, even if it upsets the corporate support that they too depend on.  


Democrats must give the people a chance to judge the falseness of what Trump and his allies have been telling them.

Saturday, September 14, 2024

What Is a Liberal?

In the past few decades, "liberal" has become a dirty word to almost half the population because the way in which Republicans, and especially Trump, have defined it and spoken of it.  But "liberal" is quite different from their definition.


A liberal is someone who believes that all citizens – men and women – should be treated equally and that all have the right, as stated in the Declaration of Independence, to life, liberty, and the pursuit of happiness.


Whether you are rich, middle class, or poor; whether you are a person of color or white; whether you were born here or are an immigrant – you have that right.


And the role of government, again as stated in the Declaration, is to ensure those rights.  What does that mean?


It means that government must do what is necessary to ensure that all citizens have an equal opportunity to pursue those rights.  It may require laws, regulation of business, or funding measures.  But the goal is always to ensure that all citizens have a meaningful equal opportunity, – that is, not just stated on paper.


The goal is not to make everyone equal because that is not the goal of a democracy.  That would be communism.  Rather the goal of a liberal and of our democratic government is just to ensure each person has an equal opportunity to pursue their rights.  What people make of that opportunity is their own responsibility.


Further, a liberal does not just believe that all citizens have equal rights, he or she also believes that all people have obligations that flow from citizenship.  Under the American social contract that developed in the early 1900s, each citizen has an obligation to support the common good.  Each citizen has an obligation to do nothing that takes away another citizen's rights. Each citizen has a responsibility to support the government financially in its performance of its functions, each according to his means. 

And, yes, I am a liberal and proud of it. 

Friday, December 14, 2018

ATTN: Liberals and Conservatives - What Is the Role of Government?


In these days of enraged people on both sides of the political spectrum, it would be helpful to take a deep breath, step back from the battle, and ask the question, “What is the role of government?”  Specifically, our government.  In answering this question we look to our founding documents.

According to the Constitution the purpose of government is to "establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our posterity.”  If we look at the Declaration of Independence the role is defined more broadly, which is “to secure” the unalienable rights to “life, liberty, and the pursuit of happiness.”  I say more broadly because everything stated in the Constitution is necessary if one is to be able to pursue life, liberty, and happiness.

Clearly the role of government is an active one.  Words such as “insure,”  “provide,” “promote,” and “secure” are all verbs denoting an ongoing active responsibility.

There are two aspects of the role as stated in both these documents that deserve focus.  First the Constitution refers to promoting the “general Welfare.”  This is clearly a statement that government must look to the welfare of all its citizens, not just some.  It is the general welfare that is important, not just the welfare of some segments of society.  Taken together with the Declaration’s statement that “all men are created equal” and have “unalienable rights,” our founding documents clearly stand for the value and the rights of each and every citizen, of all segments of society.

The second aspect I will focus on is that both documents state that the role of government is to “secure” what the Constitution broadly characterizes as “the blessings of liberty,” and which the Declaration more particularly describes as the rights to “life, liberty, and the pursuit of happiness.”

To what extent has our government lived up to its responsibilities as set forth in our founding documents?  

First, let’s get one thing straight … regardless the political party in power or the era, the United States has harbored huge inequality, not just regarding wealth but well-being.  This is true despite all the social welfare programs that were enacted in the 20th century.  While one can talk about the poor being worse off or better off under a particular administration, and one can say that materially the poor are better off in modern times than ever, their state of well-being remains a negative one.  (Perhaps this is why so many of the poor don’t vote; why they say it doesn’t make a difference who is in power, which liberals find maddening.)  

Why is life for the poor degrading?  Widespread discrimination, unequal access to quality education, substandard housing to name perhaps the most important factors.  This negative well-being has in turn spawned an environment of gangs, violence, and drugs which haw made a bad situation that much worse.  Note:  it is not poverty itself that makes life degrading, it is these attendant factors.

This is true regardless whether one is looking at people of color or whites, urban or rural.  And, to counter a widely held perception, while the majority of those living in poverty are people of color, 44% are white.  In 2018, the figures were white - 44%, black - 23%, Hispanic - 28%, and Asian - 5%.  Yes, blacks disproportionately commit more crimes and engage in drug trafficking, but they also suffer disproportionately more discrimination, bad education, and substandard housing.  Many whites blame blacks for inflicting the drugs and violence environment on themselves, but such accusations totally overlook the role of the white-imposed reality of life for blacks in America.

Bottom line.  Government has not promoted the general welfare.

From the foregoing, it is also clear that government has not secured the “blessings of liberty” for a large proportion of Americans (40 million people live poverty, 12.3% of the population).  The charge is not that government hasn’t provided these blessings, because that is not government’s role.  

It’s role is to secure the “right” to life, liberty, and the pursuit of happiness.   What does that mean?  It means that government has the responsibility for insuring that all citizens have an equal opportunity to pursue their right to life, liberty, and happiness.  What an individual makes of that right is his or her responsibility.  

So for example, it is government’s role to insure that the education provided in all schools is of equivalent quality.  That is sadly far from the case.  It is government’s responsibility to insure that there is no discrimination by educating children and adults about equality, passing appropriate laws, and vigorously enforcing them.  It is government’s responsibility to insure that no one lives in substandard housing through building codes, etc. that are vigorously enforced.  Then there is the right to vote.  Before the Voting Rights Act of 1964, Blacks were routinely denied the vote in much of the South.  In recent years, Republican forces have been attacking this right in a deceitful way which primarily impacts poor people of color in order to reduce Democratic voter turnout.

While government has certainly made advances in addressing these issues, most have been half-hearted.  None have come even close to fundamentally changing the status quo.

The one area where government’s effort to secure a right has been to a large extent successful has been in the area of access to health care.  Through Medicaid, the vast majority of people living in poverty have health insurance.  There are still problems of health care access, especially in rural areas, but this nevertheless has largely been a successful effort.  And it has been made even more so with the passage of Obamacare and its expansion of Medicaid.

So what do we do with the basic fact that our government is not truly fulfilling its role.  It’s doing many things it should be doing, and probably very little of what it does is unnecessary, outside the area of defense.  But when it comes to promoting the general welfare and securing the right to life, liberty, and the pursuit of happiness for all its citizens, it has barely scratched the surface.

Why not?  It isn’t for lack of resources.  But it is a matter of priorities.  What I’m referring to is not really even on the list of priorities.  And that is for two very different reasons.  

For conservatives, they just don’t see the role of government as being more than providing for our defense, insuring domestic tranquility (i.e. order), and letting business and people be free to do pretty much what they want to do without government “interference” (that’s their definition of the blessings of liberty).  They are comfortable with government subsidizing business and farmers (a subset of business) in many ways; it’s individuals that they don’t think deserve government support.

For liberals, while they see the role of government very differently, as a source of help for those who need it, changing the fundamental status quo is not on their radar.  Whether that’s because they don’t see it as a viable option, or because it’s not something that has even entered their thought process, it’s just not there.  They are mentally and spiritually limited by the world as they know it.  They are not visionaries.  And what this country needs is visionaries.

How do we develop visionaries in the population and in our politicians?  It starts by not accepting the status quo, by understanding that there is something basically wrong with the way things are and have always been.  That what is going on is contrary to the basic tenets of our founding documents.  It means going back to the content of our education system as it pertains to civics.

But that is not going to happen.  And one reason why is that, as noted, you have such diametrically opposed intellectual approaches to our founding documents.  For example, on the one hand you have the thoughts expressed in my book, We Still Hold These Truths, published in 2004, which present our founding documents as primarily liberal in spirit.  On the other hand, you have Mathew Spaulding’s book of the same title, published in 2009, which argues for a conservative reading of those same documents.  And he castigates progressives for perverting those documents.

I don't think there is anything one can do to convince a Spaulding or any of his followers that the liberal interpretation of our founding documents is correct.  However, one can focus liberals/progressives on the fact that their position is supported by these documents.  And one can educate independents.  

I find it amazing not only that the Democratic Party has never taken my book to its heart and used it productively, they’ve never really taken notice of it, but that they haven’t come up with anything to counter Spaulding’s argument.  They have walked away from our liberal birthright and left this elemental source of strength to the conservatives.

This is what must change if there is to be any hope of bringing the force of our founding documents to bear on this central issue of social justice.  Only then will we have a chance to end discrimination, provide equal access to education, end the blight of substandard housing for the poor, insure voting rights for all, and correct many other wrongs.

Monday, April 3, 2017

So They Want Class Warfare? Let's Have It Then.

Major corporations and financial institutions, and the 1% behind them, have been waging class warfare against the average person for years.  They act in total disregard for the common good and have perverted our democracy into government of industry, by industry, and for industry.  President Eisenhower’s prescient warning against the power of the military/industrial complex has come true.  It is now past time to fight back.

What do you think is the major problem facing the United States today?  If you think it’s unresponsive government, government gridlock, the Democrats, or the Republicans, you are not getting at the underlying problem.  If you think it’s discrimination and bigotry, that’s certainly a big one, but that’s not it either.  

The major problem we face is the control that corporations and financial institutions have over government and our lives.  Whether you are a small farmer, an under-employed former middle class factory worker, a consumer with a huge credit card debt, a person of color living in the ghetto whose children go to schools that aren’t schools, a resident of rural or urban America who sees your life getting worse, not better … the underlying problem is the same.

The problem is that because of the control of corporations and financial institutions, the focus of government is on their needs and interests, not the needs of the people.  They are not the same.  We long ago gave the lie to the saying, “What’s good for General Motors is good for the country.”  Government thus is not meeting its purpose, as stated in the Declaration of Independence, of securing the peoples’ right to life, liberty, and the pursuit of happiness.

Class warfare is a dirty word in the United States.  Whenever someone makes an argument against the power of corporations or the moneyed class, they are stuck with that critical label.  This was certainly the case with Bernie Sanders.  The implication is that class warfare is un-American.  It reeks of Communism or Socialism.

No type of internal warfare, whether with arms or merely verbal, is desirable in a civilized society.  But we have come to the point in the United States where class warfare is necessary if we are to survive as a democracy dedicated to government of the people, by the people, and for the people. There is no other way to reverse the control corporations have amassed.

The United States in 2017 is a land where all real power rests with major corporations and financial institutions.  Through their lobbying and vast donations to campaigns, corporations have taken control of Congress and their interests prevail.

Yes, we the people still vote and elect our representatives and the president.  But even that has been corrupted because corporate-funded political advertising, thanks to Citizens United, now exerts a huge influence on how we vote.  We are bombarded with deceitful messages in support of those who protect corporate interests, and so people have been fooled into voting against their best interests.  As Lincoln is credited as saying, “You can fool some of the people all the time, and all of the people some of the time.”

And so big money has gained effective control of Congress and is now moving on the regulatory process.  This isn’t just a criticism of Republicans.  As I’ve stated in previous posts, while Democrats certainly fight for the interests of the average person and protect the environment, they too are beholden to big money interests.  And so while their legislative agenda is liberal and primarily centered around doing things that benefit the average person, the general good, everything they do is circumscribed by their need to not disturb big money donors too much.  That affected Dodd-Frank, it affected Obamacare, it affected the people President Obama brought in to run the Treasury Department … it affects everything.

Why is it so harmful for big money interests to control Congress?  Why is it that we can’t allow our country’s welfare to rest in the hands of the top 1%?  Many Americans think that powerful, rich people clearly know what they’re doing and so they are the logical people to entrust our welfare to.

The problem is that while they certainly know what they’re doing, it’s all about furthering their own interests.  If that’s at the expense of the interests of the average person, the consumer, the greater good … too bad.  Such is life!

Corporations exist for one reason and one reason only … to make and constantly increase profit for the benefit of shareholders and management.  Today that bottom line focus is worse than ever given the pressure of the stock market’s expectations.  

As for the top 1%, who are usually part of this corporate/financial establishment, they have concern only for themselves.  They are the ultimate poster child of the “me” generation.  

Corporations and people with that kind of money have become so separated from the average person that they just don’t connect anymore.  They have no concern for the needs of the average person or the greater good.  The fact that so many are now multi-national and as a result their prosperity is not tied to the United States economy makes their separation even more pronounced.

And so, as I’ve argued previously, we need to have a soft revolution in the United States.  The people need to rise up and truly take back government.  Not by electing a Donald Trump who has no intention of giving government back to the people … talk about putting a fox in charge of the hen house! … but by electing representatives who are honestly dedicated to protecting the interests of the average person by restoring and improving the balance that the United States built during its progressive period … roughly the presidency of Teddy Roosevelt through Jimmy Carter, 1901 - 1980.

The United States came to its full maturity and strength (economically and militarily) during the 20th century because it harnessed the potential of both the American people and its corporations.  It did this by creating a balance between private rights, the public good, and government.

Because it’s about restoring this historic American balance, the soft revolution proposed is not about emasculating corporations, about removing the profit incentive, or removing them from positions of influence.  It is not about becoming a Socialist country.  Corporations are very important to the well-being of our country and its citizens, and so they not only deserve a seat at the table, they need to be at the table.  

But this revolution is about limiting their power, reducing the greed that currently drives corporate actions and causes them to disregard even the interests of their consumers, let alone the general public.  Even during our progressive period, there is no shortage of examples of corporations acting against the interests of their consumers and the general public.  The decision-making process in corporations needs to be transformed.  

But it should not be the role of government to micro-manage corporations.  We should not have to resort to regulations.  That is not healthy and it is not efficient.  What we need is the creation of an evolved corporate persona and decision-making process that is not at odds with the interests of their consumers, the greater good, and the environment. 

This will not happen without the aroused involvement of voters across traditional party lines in favor of Congressmen who will truly protect and further their interests, who see it as their prime responsibility to secure the right of all Americans to life, liberty, and the pursuit of happiness.  Who will work with corporations and financial institutions but insure a balance between private rights, the public good, and government.

Hopefully we will prove the truth of the final part of Lincoln’s remark noted above … “But you can’t fool all the people all the time.”  Rise up America.

Tuesday, March 28, 2017

So You Want to Be Rid of Government Regulation?

Businessmen grouse about the burden of government regulations and paperwork.   They don’t want “pesky” inspectors snooping around.  The New York Times recently reported that small business owners are happy that Trump will free them from these burdens.   Investors are clearly cheered by the prospect of lower corporate taxes and less regulation.  

But does this put the public at risk?  Before the industrial revolution, when the people who made things had a very personal connection with their customers and took pride in the craftsmanship of their work, there was no need to protect the consumer or general public from the actions of business.

But after the industrial revolution, that relationship  changed.  There was no longer a direct connection, no craftsmanship.  Mass production became the norm, with workers toiling under terrible conditions, and profit became the main premium for the businessman, the main source of pride, not the product.  During this period, in the late 1800s and early 1900s, both smaller industries and large conglomerates became rapacious, with no concern for either their workers, their consumers, or the environment.

To protect workers, consumers, and the environment, the federal government began to pass laws and enacted regulations to force industry to act in a responsible way.  (See my post, “The Responsibility Crisis.”)  The need for such oversight is as great today as ever because of investor pressure on industry to constantly increase profits.

If the business community wants to get rid of government regulation, then all businesses must have in their articles of incorporation language that speaks to their responsibility to their workers, their consumers, and the environment.  And those articles must provide for both regular impartial reports regarding their actions and an easy means for workers or effected third parties to complain and sue if they are not meeting their responsibility.

Corporations are a creature of the law and are protected and favored in many ways because they were perceived as providing a benefit to the greater good.  If they cannot be depended upon, on their own initiative, to protect others by refraining from actions that would harm their workers, their consumers, or the environment, then it is government’s responsibility in its role of protector of public safety to regulate their actions.

Saturday, May 21, 2016

What Drives Policy Decisions? - The Theory v The Reality

Since the establishment of representative democracies, the role of government has been to promote and secure the safety and well-being of their people.  As stated in the Declaration of Independence, the first official document stating this concept of government, “That to secure these rights [life, liberty, and the pursuit of happiness], governments are instituted among men, deriving their just powers from the consent of the governed.”  That is at least the theory on paper.

From the beginning, a tactical problem was encountered in that the interests of all the people are rarely, if ever, in agreement.  Added to this complexity are the varied interests of organizations and corporations which, while creatures of the law, nevertheless should also be promoted by government since the law provides for their existence because they are thought to contribute to the good of the whole.  

To deal with this multiplicity of interests, the concept arose of government promoting the greater good.  The question is always whether a policy is in the interest of the people as a whole, or at least not contrary to their interest.  

For example, if a policy is good for wealthy individuals but harmful for the rest of society, then it is not in the greater good.  Likewise, policies that favor particular corporations to the detriment of the public are not in the greater good.  The old saying, “What’s good for General Motors is good for the country,” was debunked many years ago.

However, corporate and public interests are not always at odds.   A policy that favors particular corporations could be in the interest of the people because, for example, it is directly tied to creating jobs or encourages the development of products at a reasonable cost that are needed for the welfare of the people.  

One used to say that policies that promote robust corporate growth are on their face for the greater good because that means more jobs and better wages.  However, in modern times that is not the case.  Policies have fostered corporate growth and profit, but workers have not benefited and even been harmed, either because jobs were sent overseas or because wages stagnated.

Needs and interests are not just competing but are often in conflict.  In its effort to promote the safety and well-being of all, government’s policies need to be balanced so that at a minimum all have their most critical needs met and have the opportunity to prosper.

But what is the reality of government decision making?  While the people do vote for their representatives, it is the corporations through their lobbyists and campaign donations who have control of government.  It is true that Democrats are more attentive to “the public good” than Republicans, but even they are deeply influenced by corporate interests which, while not wiping out their support of various programs or efforts, does often weaken the programs’ effectiveness by lessening their impact on corporations and the corresponding protection afforded the public.

While the influence of corporations has been a recurring issue during our history, it is only in the post-WWII era … remember President Eisenhower’s admonition to beware the growth and influence of the military-industrial complex … and even more so beginning with the Reagan years that corporate influence has become so predominant as to render our representative democracy to a large extent illusion.

To understand the terrible human cost of this development, let’s look at some examples of both domestic and foreign policy.  (Although the Declaration of Independence only deals with the relationship between the American government and its people, these same principles should govern foreign policy decisions by government because ultimately the people are affected.  And also because this is what we say we stand for.)

The most horrendous example in recent foreign policy was of course the Iraq war.  Although the talk was to save U.S. citizens from Saddam’s missiles and the Iraqi people from his tyranny, the reality was that the invasion of Iraq was to enhance corporate interests by gaining control of Iraqi oil and establish a friendly base in that economically and militarily strategic part of the Middle East.  But when we left Iraq, not only had we not gained our corporate and geopolitical goals, but we left a people who were worse off in almost every aspect than they were under Saddam.  

Perhaps worst of all was the impact on our own people.  The war created another generation of severely damaged, both physically and psychologically, young American men and women.  And it had placed such a burden on this country’s finances that it made future needed investment in our people and in our infrastructure almost impossible.

A more recent example where the welfare of a foreign people was not the concern is Syria.  The U.S. has long wanted to be rid of Assad in Syria.  Not for any concern for the welfare of the Syrian people, but because during the cold war and its aftermath, Syria under Assad was in the Russian sphere of influence and not friendly disposed to American interests, both corporate and geopolitical.  So when the rebellion started, we gladly lent some aid, even though the fight was again not so much to better life for the Syrian people but to change who or what group was in power and control.  Certainly, the Syrian people have done nothing but suffer during this rebellion because no one on either of the various sides really has had any concern for their welfare.  

True, as regards the American people, the Syrian conflict has not had much impact because the U.S. does not have boots on the ground and the cost of our “aid” has been relatively modest.  It appears the government has at least temporarily learned the lesson of Iraq and Afghanistan.  And, we have accepted almost no Syrian immigrants, which is a matter I will not go into here.  That burden has been left to Europe.  But the policy approach to the extended Syrian conflict has nevertheless been an unmitigated human disaster.

Domestically, while the impact of a decision-making process concerned more with corporate geopolitical interests than with the welfare of the people has had effects arguably not as dramatic or violent as these foreign policy examples, the effects have been in other ways even more devastating for the American people.

The two domestic examples I will site are the background and aftermath of the 2008 financial crisis and the politics of transportation policy/energy policy/global warming.  Since the Reagan years, when government was declared to be the problem not the solution, there had been a steady increase in the deregulation of business, which regulation had been put in place to begin with to protect the people.  But regulation interfered with business and their profits, and so it almost became un-American.  

One of the hallmarks of deregulation was the repeal of the Glass-Steagall Act, which had prevented banks from having both banking and investment operations.  Glass-Steagall was passed during the Depression in an effort to prevent banks from diverting bank assets into speculative operations, to keep them free of the manipulative methods and volatility of the investment market … for the good of the people.  Banks had long chafed under these restrictions, and under the leadership of Republican Senator Phil Gramm the act was repealed and the legislation was signed into law by President Clinton, who had many Wall Street advisors surrounding him, in addition to having received massive amount of campaign donations from Wall Street.

The result was the development by the biggest banks of a whole host of unscrupulous and manipulative investment strategies that benefited their bottom line and amassed huge wealth but screwed the public, even including at times their own customers.  When the bubble inevitably burst, several banks and the economy came crashing down and would have entered a severe depression, were it not for the government bail-outs.

Now one might have hoped that in the aftermath of such clear unethical behavior the government would reimpose strict rules on investment banks.  But even with a Democratic-controlled Congress in the Obama’s administration’s first 2 years, it was a fight to get the Dodd-Frank Act passed, and in the end it was not as strong as it could or should have been because of Democrats’ desire to not “unduly” harm banking interests.  The Act has been further weaken by prolonged fights over implementing regulations which have also turned out often to be far less strict than they should have been.

As for the interrelated policies regarding transportation, energy, and global warming, corporations have again been in control.  Transportation policy has always been a function of what is best for those being regulated (auto manufacturers, railroads, airlines), not the people.  The result is a terrible transportation system which is outdated, environmentally inefficient and provides bad service to the public.  Energy policy likewise has been a creature of corporate wishes, for the most part.  Under Bush II, Vice President Cheney even took the unbelievably bold public move of convening a meeting of energy execs to devise the administration’s energy policy.  No one representing the public was present.  The result not surprisingly was a policy which did not protect the interests of the public nor did it even give a nod towards the issue of global warming.

With regard to global warming itself, I will only say that while there has been to-date a confluence of corporate opposition and, given our addiction to cheap energy, people opposition to necessary measures, there is no doubt in my mind that even had there been a strong and vocal majority in favor of such measures, the corporate world still would have managed to water down almost anything that passed.

As I have said at the conclusion of many prior posts, our system of representative democracy is broken.  The reasons are various, but certainly the outsized influence of money and corporations on policy is a major factor.  The system can only be fixed, and the people’s welfare be protected, with a soft revolution in who has power in Congress.

Sunday, December 27, 2015

Back to the Future, But Not Too Far!

We are a country that is obsessed with the future, with facilitating the next phase of our “progress.”  In the process, we have lost our collective, our societal mooring to what has made the United States a great social and political experiment.  

As I’ve noted in previous posts, our society is dysfunctional in many respects.  But there are two central problems.  One is that virtually all political power is now in the hands of major corporations and the rich; they call the shots in Washington, not the people.  The other is that these same actors, as well as many average citizens, seem to have no concern for the welfare of their fellow citizens, and in the case of corporations, their workers.

One can place a band-aid here, and another there.  But that will not change any of the basic problems that we are facing and which are pulling the United States down from its great potential.

I have therefore argued for a revolutionary change in attitude and perspective on the part of our political parties and citizens.  This revolutionary change is not to something “new,” some utopia, but rather back to ideals and standards that served this country well and made it strong during the 20th century.  

In the first 125 years of our country’s history, things were pretty much a frontier-style free-for-all.  Each person for himself.  People who needed help generally weren’t helped, and those who were on the make pretty much got away with anything they tried.

But at the turn of the 20th century, the country took a progressive turn in its politics under Republican President Theodore Roosevelt.  The government and people saw that things had gotten out of hand and that there was massive inequality in power and wealth in the country.  Because such inequality did not square with our founding ideals, there was a realization that government needed to become a more active player to insure that the average citizen wasn’t exploited, and that power was more evenly distributed.

Thus, during the first 20 years of the new century, the progressive income tax was introduced, the robber barons were regulated, massive holding companies like Standard Oil were broken up, and workers were given the right to unionize.  And women were finally given the right to vote.  

As I state in my book, We Still Hold These Truths, a social contract developed that gave practical shape to Lincoln’s famous, “government of the people, by the people, and for the people.”  There was an increasing emphasis on a balance between rights and obligations, between business interests and the public good, with each person contributing to support the government’s efforts to level the playing field, each according to his ability.

Following the 1929 stock market crash and the resulting Depression, government saw the need to increase its role both in providing a hand to those in need (for example, the enactment of Social Security) as well as regulating the excesses of big business (for example, the Glass-Steagal Act).  In the mid 1960s, Medicare was enacted together with a host of measures to further improve the balance and fairness of our society. 

Congress also passed major civil rights legislation in the 1960s, although it must be said that while these laws resulted in certain improvements in their lives, the basic standing of most black Americans in our society and the conditions in which they lived and were educated were left virtually unchanged.  And they were still frequently subject to various forms of both institutional and private discrimination.  (See my posts, “The Mirage of Civil Rights,” and “Our Failed Economic/Social/Political System.”)

But I don’t want to overstate my case.  Needless to say, throughout these progressive periods, there were plenty of people, both in Congress and in the populace, primarily Republicans, who were against both measures to regulate business and efforts to increase government spending or other efforts to help those in need.  Even during the Depression and its immediate aftermath, there were people, and not just the rich, who literally hated FDR!  In 1932, the height of the Depression, Roosevelt only got 58% of the popular vote when he ran against Hoover, although he swept the electoral vote.

In this regard, it should be noted that regardless of the huge changes shown in the electoral vote map, indicating landslide years, the popular vote has never been a landslide.  For example, in 1972 when Nixon got 96% of the electoral vote, he received only 61% of the popular vote.  Likewise, when FDR got 98% of the electoral vote in 1936, he got only 62% of the popular vote.  The country has historically been quite divided.  

Then along came Ronald Reagan, the same man who had campaigned vigorously against the enactment of Medicare, who as President famously said that, “Government is not the solution to the problem.  Government is the problem.”  Reagan didn’t invent a new movement.  He just gave voice and a popular face to deep feelings that have always been held by a large percentage of the voting population, legitimizing those perspective.

The fervency and bitterness of these feelings grew and deepened over the following years, culminating in the Tea Party movement and the current crop of Republican radicals (they should not be referred to as “conservatives”) in Congress.  What they, led by the billionaire Koch brothers and others who back them, want is nothing less than a return of this country to its 19th century ethos, when it was each man for himself, without any interference from or help by the government, of course with the exception of Social Security and Medicare from which most of them directly benefit.  Unfortunately, they don’t see the irony in this.

What I am calling for is a return to the 20th century ethos (Reagan excepted) of balance and social responsibility plus a changed attitude towards black Americans.  

This is not a soak the rich movement or class struggle.  It is a movement that seeks a return to the ethos where we are all part of a society, that recognizes that many people are born into situations that place huge obstacles in their attempts at pursuing the American dream of happiness and equality, and that those who have made it, who have benefited from the system, have a responsibility as citizens to help the government in its efforts to assure that all have true equal opportunity.  

In this regard it should be noted that for most of the income tax’ existence, the highest tax bracket ranged from 60 - 94%, dropping down to 50% during the Reagan years.  So the current top rate of 39.6%, and even the various suggested increases, are historically low.  It should also be noted that regardless of the tax rate, the rich have always remained rich.

Nor is this an anti-business movement.  The health of our economy and of the businesses that make it prosper are of critical importance to the well-being of all Americans.  Business interests must always have a significant place at the table.  But we have learned all too often that it is nevertheless not true that what is good for corporate America is good for all Americans.  Thus there must be a balance between the needs of business and the greater public good.  Maximizing profit cannot be the sole goal of a responsible corporation in a democracy.  

For example, the New York Times just reported that corporate lobbyists working with their friends in Congress (on both sides of the aisle) inserted a provision in the omnibus spending bill that just passed that continues a tax loophole that benefits casino and hotel owners as well as major Wall Street investors to the tune of $1 billion.  That is to say that our tax revenues will continue to be reduced by that amount from what they otherwise would be.  That is unconscionable.

Nor is this a big government movement.  I for one feel strongly that government should be as small as it can be while executing the functions that are its responsibility.  There should be no holy cows.  Every aspect of government must be justified by the purpose it serves and its effectiveness.

What I seek is simply government of the people, by the people, and for the people … all the people.  Not government of the people  (they do still elect), but by corporations, and for corporations.  Which sadly, is what our government has to a large extent become.

The citizens of this country deserve better.