Wednesday, June 20, 2012
How Faith in Meritocracy Undermines Meritocracy
Saturday, May 12, 2012
Shocking Common Financial Realities
Thursday, January 26, 2012
Only Taxing the Rich is Bad, Says O'Driscoll
The Yahoo! Finance web series the Daily Ticker today consisted of an interview with Gerald O’Driscoll, former Vice President and economic advisor at the Dallas Federal Reserve, and a senior fellow at Cato Institute. He was asked whether there was anything that either the Fed or Washington could do to spur job creation, and naturally O’Driscoll quickly turned to criticizing President Obama’s tax policies, describing the raising of marginal tax rates on millionaires and billionaires as economically destructive.
The interviewer reminded O’Driscoll of the counter-arguments that would come from the presidential administration and its supporters, then asked: “Do you make a distinction between taxes whether they’re aimed at individuals or corporations, or is it – bottom line – raising taxes on anybody is bad for the economy?”
I think that question presented O’Driscoll with a pretty clear choice: is the problem simply taxation in general within a weak economy, or is it taxation of businesses? Yet O’Driscoll appears to have avoided that simple choice and opted to advance an entirely different perspective.
He began, “Well I would say that raising taxes on the…” and then paused at length, searching for the right synonym for “wealthiest Americans.” I found that pause very telling. He knew about whom he was talking, but he needed to phrase it in a way that served his ends. Using the phrase “the rich” is perfectly clear to every viewer, but using the phrase “the source of savings and investment” obfuscates what we’re talking about and makes it harder to attach an image to the subject, but easier to affix it to a concept. So that was the phrase that O’Driscoll settled on, saying that raising taxes on the source of savings and investment is bad for the economy.
Now, did you notice how that avoids the simple one-or-the-other choice that he was given with the question? For simplicity, let’s drop the more pleasant synonym and just acknowledge that he’s talking about the rich. So when he’s asked whether it’s bad, in a weak economy, to raise taxes full-stop, O’Driscoll’s answer is really no, it’s bad to raise taxes on the rich in particular. Theoretically, his point of view leaves open the possibility of raising taxes on the poorest American’s without expectation of consequence. Of course, this is something that several Republicans have actually advocated, but it’s quite amazing to see that such callous initiatives have a theoretical underpinning.
O’Driscoll continues by rebuking the president for ostensibly failing to understand that most business are not C Corporations and thus are not taxed separately from their owners, “So when you raise taxes on individuals, you’re raising taxes on the business, and hence… you’re inhibiting job creation.”
I almost admire how the language of this quotation allows O’Driscoll to exclusively designate millionaire business owners as “individuals.” Raising taxes on lower or middle class workers doesn’t raise taxes on business. Even raising taxes on millionaires who primarily earn their income from things like investments in businesses they don’t own is not equivalent to raising taxes on businesses. Do neither of these groups count towards the discussion? That seems suspiciously convenient for O’Driscoll’s argument.
Essentially, that argument seems to be that it’s destructive to raise taxes on extremely wealthy individuals, because they might use some of their own wealth to invest in the businesses they own or from which they profit. Meanwhile, by this line of thinking, there is no particular problem with raising taxes on people who will definitely use a portion of their slight income to purchase things like food, clothing, and gas.
I admit that my understanding of economics is rather rudimentary, but it seems to me that a sure-fire way to create jobs is by raising demands for goods and services, thus increasing the size of the workforce required to supply that demand. Unless I’m wrong about that, it’s pretty asinine to suggest that allowing the wealthy to hoard their money while thinking nothing of depriving the poor of theirs is the best way to stimulate the economy. Sure, business owners need personal wealth to invest in their industries. But why on Earth would they do so if demand for what they’re offering remains flat.
By contrast, if a wealthy American is legitimately interested in earning the highest margins from his business, he would be a fool not to make investments to match growing demand, unless of course his wealth has been taxed out of existence. But I hardly think anybody’s proposing that, and I certainly don’t think that paying a thirty-five percent marginal rate would cripple a billionaire’s investment capabilities.
Saturday, October 22, 2011
Presidential Charity is Misplaced
In promoting a new book by one of its reporters, Eli Saslow, the Washington Post recently reported that President Obama has written personal checks to some of the American citizens who have written to him detailing the problems they were facing. No doubt many will read this and take heart at the implication that the president is in touch with the common person, and that he genuinely cares about the struggles of his constituents, to the extent that he is willing to engage in a little bit of self-sacrifice to help them out.
I do not find this story inspiring. In fact, I think that such person-to-person humanitarianism from the president sends a terrible message. It is very specifically not the job of the government to help people on an individual basis. Perhaps the principal reason for government’s very existence is the notion that we can collectively solve those problems which we cannot solve individually. There’s a division between the two that needs to be recognized and respected, and I think that just about anything that cuts against it justifies and worsens the weakness of our government.
I assume and I hope that people who write to the president do so because they feel the need to weigh in on an issue of broad social significance. No doubt there are crackpots and self-important individuals who write to describe problems that are perfectly unique to them, but with ten letters selected for President Obama to personally read each day, I would hope that only the ones that frame the personal narrative in terms of why it’s significant to an issue that’s important to the country at large would make the final cut.
If I’m right in all of this, then the authors of these letters are generally trying to prompt the president to take action that will help those who are in their position, and not strictly them as individuals. Even if that’s not the case, that damn well should be exactly the lens through which the president views each letter. If one impacts him, he should set it down upon his desk and ask a simple question: “What can I, as the president, do to help Americans in the situation this letter describes?” When he is seated in the Oval Office, the question should never be, “What can I do to personally help the author of this letter?” That isn’t the president’s role, and it shouldn’t be.
I don’t want to think that any of my president’s energies are going into improving the lots of singular constituents when those constituents are individuals among massive collectives of people facing the same or worse difficulties. It would be heart wrenching to turn away from the individual, and it may even be wrong, but only if one believes that there are situations in which no course of action is the right one. Turning away from the individual is sadly necessary when your every purpose is to pursue and execute what is best for the good of an entire country. If the authors of letters to the president wanted someone to address their personal struggles directly, it would have been better of them to write to charitable organizations, or old acquaintances, or reality television producers. Writing the president for personal help risks a conflict of interest with the entire country, in that the interests of the collective society may sometime abut against the interests of the individual with that collective. The president’s focus belongs on one side of this and it should be exclusive.
This may sound callous, and some may get the impression that I am asserting that the president should be somehow disallowed from acting on the impulse of personal conscience and offering resources that he can afford to give to a place where they are needed. But I am certainly not claiming that the president should avoid charity in his capacity as leader of the nation. What I am suggesting is that if a letter deeply affects the president and fills him with a sense of urgency about getting involved, he ought to take any money that he would have offered to the individuals involved an instead give it to some sort of organization with the task of helping people facing the associated difficulties.
Solving individual problems is actually insufficiently ambitious for the president. There are other individuals and organizations that do or could have that as their particular function, and for such people solving the problem of one would be a sublime accomplishment. For the president, solving one person’s problem and failing to address the root cause of it is abject failure. Part of the symbolism of cutting a check to a specific individual is that the president is effectively acknowledging that he doesn’t have the tools at his disposal to fix the problem on a broader basis. If I were to ever receive a reply letter from the president, I would much prefer to read a note that says “Sit tight, the country is about to get better,” than to receive a check with a memo that says, “Momentary, personal fix.”
I remember actually being quite angry when that young man got a job by way of the good fortune of having Obama visit his town and being handed the microphone during the Q & A. My first impulse was to wonder about what the president was going to do now for the thousands of other college graduates, me among them, who couldn’t find work. Despite the human interest story of this one solitary man’s struggles being over, the fact was that the situation that created those struggles hadn’t changed a whit. And that being the case, on a certain level of analysis, the effect of helping that one man to find a job was that that job wasn’t available to someone else who needed one, and perhaps just as desperately.
I wonder, though, whether the president and his staff felt accomplished and satisfied when they helped that one individual. I suppose you have to hold onto those things when you have the world’s problems weighing on you personally every day. But there can be no justification for taking the optimistic view that comes of a narrow focus and thereby losing an appropriate sense of urgency about what needs to be done on a legislative level. The unfortunate truth is that when we’re all waiting for the social change that will take this overarching conditions away, doing individual good is sometimes a matter of just shuffling the misery around.
If that’s what you and I have to do, then so be it. We make the best of a bad situation. But the president, and especially this president, should be far better than that. There are a precious few people in the country who actually have the power to fix the conditions that keep the rest of us sharing that misery. If I am to have any faith in them whatsoever, I need to believe that they are not playing favorites among us and that escape from those conditions is not award by lottery to people who’ve had their letters read by the highest office in the land, while the rest of us wait for change forever.
Friday, September 9, 2011
The Obama Jobs Plan: Last Stop for Compromise
It’s a clever approach, and it may succeed in its goal, but there are two serious questions in my mind: is that goal ambitious enough, and what if it doesn’t succeed? I admire the effort and sacrifice that must have gone into identifying and advancing all of the points of demonstrated overlap between Republican and Democratic policies on jobs and the economy. But as far as I’m concerned, the main reason why there is so little progress in American politics today is that the Republican Party has an uncompromising political will while the Democrats have an obsession with compromise at the expense of any will whatsoever.
I value compromise myself. I’m not so naïve and egotistical that I think I think government policy and the future of America can be built according to my own narrow vision. I am a firm believer in incremental change, and I know that the very process of positive change sometimes requires a great deal of patience and a lot of frustration. Yet, in a situation where the most regressive elements of public policy provide an unmovable defense against even the most modest applications of liberal ideas, I don’t want more compromise. I want a stronger offense. I want a reason to believe that liberal ideas aren’t dying because all political resources are being directed to efforts at obtaining cooperation with people who see any Congressional action whatsoever as an unacceptable political defeat.
It seems to me that that is what the president and much of the Democratic Party have been doing. I fear that they are losing sight of the dividing line between compromise and capitulation. In fact, I think both parties lost sight of that line a long time ago. The clearest ideological difference between the two is that Republicans believe that giving up anything is capitulation, while Democrats think that giving up everything is compromise.
And what if the Republican Congress doesn’t pass a plan consisting entirely of initiatives formerly supported by both parties? What will be the new strategy, the next step towards gaining their cooperation? Introducing a jobs bill comprised entirely of initiatives supported only by Republicans? The current strategy absolutely has to be successful. But if it is, I hope that Democrats understand that there is nowhere left to go in the interest of establishing a common vision. They have already gone well past the center of the aisle, and it would make no sense to reach any farther without simply joining the Republican Party. Instead of that, if this strategy of asking the wall to move fails yet again, perhaps it will finally come time for the Democratic Party to regroup and begin assembling the machinery to tear through that wall. Perhaps then they will at least try to stand up for underrepresented liberal ideals. That may bear with it the risk of making little progress, but the Republican strategy has already guaranteed that, and no one seems to worry about the political consequences of that. If it’s impossible for anyone to take the right action, I’d at least like the right ideas to be in the public record.
Tuesday, September 6, 2011
Beyond Statistics and Statements
One of the problems that I have with news regarding the various economic indicators is that, though the public is selectively given reason to be apprehensive about the economy, they are also encouraged to perceive the problem as merely a set of mathematical figures. This is never truer than when the stock market faces a downturn – an event that has no clear connection to real world consequences in the minds of the average American. But even when we are given the numbers for job creation, such as the number zero associated with the month of August, the information is presented as just some vagary of current history, not as what it truly is: people’s lives and futures. There is a constant back-and-forth in the media narrative of the economy, and it gives the impression that when jobs are being created the situation is good, and when they are being cut the situation is bad. It turns the perception of the economy into a comparison of averages, divorced from the nuance of there being victims and beneficiaries in every climate, as well as lingering effects on many people of difficulties that the numbers may suggest have passed.
Obviously, the public knows that people are deeply affected when jobs are lost, when salaries are cut, and so on. Still, when the measure of that effect is purely numeric, it is easy for the public to lose sight of those effects. If you don’t have personal experience with the associated hardships, and if you don’t think very hard about it, you might allow yourself the indulgence of assuming that the difficulties faced by individuals have been, by and large, short lived.
Of course, the media does not exclusively present economic news as a set of statistics. That is precisely what I noticed in the radio segment I heard last night. The formula they follow seems to be aimed at counterbalancing the almost esoteric quality of large-scale assessments of economic indicators. They do this by introducing interviewees who are suffering the consequences of those more impersonal trends and figures. In last night’s case, they spoke to a woman who had been laid off from her job, which provided half of the income for a family of five, who were now not able to make their bills without relying on savings. Bits of that family’s story were interspersed with quotations from experts and excerpts from economic reports, in the same fashion that personal stories are always built into news stories of broader significance.
At the end of the piece, they tied the broader and narrower narratives together with a final thought that displayed shortsightedness and deeply flawed copywriting. They play a quotation from the woman, explaining that she felt that she was facing much greater competition in the current job market than she would have under more normal economic circumstances. The reporter took the reins for the last word, adding to her commentary that in her family’s current situation, that competition is one that she cannot afford to lose. That, I think, is remarkably irresponsible phrasing. It reflects the entire problem of constructing news reports according to this formula, a problem which is far from obvious, but which I think can be quite serious.
Who is it that can’t afford to lose the competition for jobs, according to the reporter? The woman he was interviewing? What about the people with whom she is competing? Saying that she specifically cannot lose that competition suggests that other people can, that she is unique, and that the problem being presented is her problem, not society’s. It is a very subtle outgrowth of the terribly common mentality of blaming the victim, in that that kind of phrasing seems to imply that the overall situation remains a fair competition, and that it is up to the families that are struggling the most to see to it that they win in a competition with people who can better absorb the setback.
The problem with presenting stories like that of the economy as a series of statistics and figures is that it prevents the story from being humanized. Leveraging in reference to one or two people experiencing the associated hardship succeeds at humanizing the problem for one or two people. It does not give the story a genuine sense of urgency for those who are not directly affected. Rather than presenting the public with one story about a series of economic indicators and their effect on entire segments of the American population, this sort of journalism presents two separate news stories in one piece: one bit of reporting about a set of vaguely significant calculations, and one human interest story about the brave struggles of a specific family in a specific region.
These stories need to be connected in a way that is meaningful to people who are not exactly like the ones being profiled in the human interest segment. The impulse to balance a detached perspective on the facts with a normative presentation of their effects and consequences is a good impulse, but its execution is lacking. The news media knows how to present both cold, dispassionate facts and charming personal narratives. It also knows how to speculate wildly on topics such as politics. But what it generally does not seem to have a talent for is the crucial application of reason to situations that warrant more than observation and ideological guesswork. That is what it would take to show economic facts in a light that shines evenly upon everyone who stands to be affected by it. Reporters should sometimes be willing to conclude from the esoteric facts what is happening in society as a whole. Facts speak for themselves, and so do individuals, but the collective experience has no voice. A good reporter should do the work of saying on air what has not been said for them. But there’s no formula for that, and so I have little expectation of hearing such a report any time soon.
Tuesday, August 2, 2011
Democrats' Notions of Dealmaking
Instead of any of that, virtually all of the Democrats I’ve seen commenting on this 100% Republican plan talk about it as if it’s a good thing. They use those words, like “compromise,” implying that both sides gave up a little something for the greater good. But the reality is an increasingly familiar story, in which the legislators who present themselves as being a little bit closer to sharing my views give up the very essence of their position, and all of the preceding debate and rancor comes to look like nothing more than an elaborate show designed to maintain the illusion that there is an opposition party. Why doesn’t that illusion instantly fall apart when we consider that that would-be opposition party still holds control over the majority of the government, but none of the policy discussions?
Only six Democratic senators voted against a debt ceiling increase that includes trillions in spending cuts and absolutely no revenue increase. How can that be explained other than by supposing that they either tacitly accept the positions of the Republican party or that they just don’t care enough about their contrary views to fight for them or even to register them publicly. Republicans have no qualms whatsoever about casting purely symbolic votes. Why do Democrats refuse to do the same, opting instead to demonstrate complete support for legislation crafted entirely by their so-called opponents? Twenty-eight Tea Party Republicans voted against this bill, and that suggests that there are nearly five times as many senators in the minority party who are in opposition because the completely conservative measure is not conservative enough than there are Democratic senators against it because no aspect of it is liberal in any way, shape, or form. Does the Democratic Party stand for anything whatsoever?
My representative in the House voted in favor of the bill, and his subsequent remarks reflect an unwillingness to so much as discuss what went wrong, or to acknowledge that this was anything less than the best thing for the country. Representative Brian Higgins has said that what is important now is moving forward and addressing job creation. I wonder if he believes that the two issues are unrelated. I agree that job creation is of paramount importance, but I think it was important before this fiasco was completed. As a matter of fact, that’s a significant part of the reason why the means by which we raised the debt ceiling was so important in the first place. If legislators continue to push for cuts without revenue, the support apparatus for the unemployed and impoverished can’t escape the chopping block forever, and the government will have no means by which to institute genuine job creation measures. Now that a lack of compromise has been turned into a bipartisan congressional act, it’s not appropriate for Democrats with an active conscience to leave it at their backs and call the issue settled. It’s not appropriate to forget that this is a terrible deal, and to suppress anger and avoid blame. And it’s not appropriate to describe this as a compromise, as even the President has been doing.
I’m pleased that one of the senators from my home state of New York, Kirsten E. Gillibrand, voted against the Budget Control Act, but given the fact that her voice is such a small, ineffectual minority in the party that controls her chamber of Congress, she is one of the very few major party candidates who retains my support after the passage of this act. This is a breaking point for me. I never considered myself a Democrat, but naturally I voted that way more often than not. From this point on, however, I will vote for neither Democrat nor Republican unless I have a damn good reason to believe that that label does not fit the particular candidate. The very best thing that can be said of Democrats in recent years is that they’ve attached such high value to compromise that they’ve made an ideology of capitulation. I’m not interested in voting for congressional representatives whose primary legislative goals are to present an image of bipartisan agreement at all costs. I want representatives who will fight tooth and nail to pass laws that they, and hopefully by extension I, think are best for the country. Is that too much to ask?
Wednesday, July 13, 2011
The Class Warfare Brand
Thus we have Rush Limbaugh responding to the president’s mention of those tax breaks on corporate jet owners by calling it “dangerous!” and “full-fledged demagoguery!” and claiming that Obama’s “aim is for one group of Americans to hate and despise another!”
How can the effort at narrowing the gap between rich and poor be class warfare if decades of efforts at widening that gap weren’t? What could the president possibly be doing here to make one group of Americans despise another? He’s not changing the landscape of class distinctions in America; he’s just bringing attention to some of its features. If Limbaugh’s concern is that hatred will arise from nothing other than more information, there’s probably something wrong with the reality that is being described. If anything is going to breed hatred and despisal by one group against another, it’s not going to be successful efforts to make the rich take up a fair share of the tax burden. Rather, what will breed hatred is being witness to rich people repelling those efforts and holding fast to the most inequitable elements of American society.
Warfare, you see, is something that happens between two different nations or groups of people. If anyone wants to breed hatred and promote class warfare, it’s people like Rush Limbaugh who seem hell-bent on making the differences between the two groups of people in the United States as stark as possible – one group owning everything, the other nothing. So it is outrageous that he is able to throw those pejorative terms entirely onto the other side of the issue and paint multi-millionaires as the sole victims of unprovoked class warfare.
How are Republicans able to get away with this at every mention of labor policy or class inequality when the claim is so patently absurd? Skillful branding and manipulation of language can go a long way towards making simple acts of conscience appear to be villainous and persecutory. Does the Democratic Party have no public relations people whatsoever, no one who can introduce vivid and effective language on the right side of a topic before it is co-opted by the political right? How awful they must be at PR by comparison when they can’t even use it to promote the truth or the action that better advances the public good, while their opponents can paint lead to look like gold and then sell it to a desperately impoverished metallurgist.
All right, so once again the conservative wing has established the narrative and decided the course of the conversation. This is where it’s time to become proactive and change what it is they’re saying, so they look like the manipulative misers they are, rather than noble martyrs. Glenn Beck has described the corporate jet tax conversation as “unprecedented class warfare!” I would like to see someone respond, “You’re goddamn right it is!” It’s a war we’re engaged in, and you know what? That has great potential to be a good thing in the mind of the public. My dictionary shows that “war” can be defined as “a sustained effort to deal with or end a particular unpleasant or undesirable situation or condition.” How about we put the bitter, self-serving complaints of the right in that context? That would be good branding, and then Beck and Limbaugh would be decrying an unprecedented effort to deal with the unpleasant condition of a broadening gulf between rich and poor, the undesirable situation whereby the rich are given every effort to deepen and extend their wealth, while the poor struggle fruitlessly to find work and keep in their homes.
Being more of the latter class myself, I am afraid I can’t bring myself to be so nuanced, though, in response to the rest of Glenn Beck’s comments about the president’s discussion of corporate jet tax breaks, so don’t read on if you’re offended by strong language. Beck has said that it shows Obama’s “sheer, unadulterated disgust for the wealthy, the successful and anyone who’s ever tried to do anything with their life here in America”
Fuck you, Glenn Beck! How dare you indict anyone else for not inhabiting the same deluded fantasy-land that you’ve built with your $65 million personal wealth? As someone who’s trying desperately to do something with my life here in America and finding that my constant, crushing poverty adds more than a few layers of difficulty to my struggle, I powerfully resent the implication that an effort to get the most obscenely rich members of our society to give back something substantial constitutes a punishment of the ambitious. Your greed and that of those like you is what punishes my ambition, and what’s more, it makes my own personal promotion of class warfare seem ever so justified. Fuck you, Glenn Beck, if you think your success is a testament purely to your hard work and that the poverty of 36 million Americans is underpinned by laziness, and if they all just stepped up their efforts, they could have an eventually-disgraced television show and earnings of up to $11 million a year. Fuck you and your brand of class warfare.