Wednesday, June 20, 2012
How Faith in Meritocracy Undermines Meritocracy
Saturday, May 12, 2012
Shocking Common Financial Realities
Wednesday, February 8, 2012
Poverty in Politics - Either Used or Forgotten
I originally wrote this piece to be posted elsewhere, so the comments and events it refers to are a week or so old now. I still thought it worthwhile to post it here.
I think it’s honest of me to identify myself as coming solidly from the left with all of my political writing. But I certainly don’t make a conscious effort to fit myself into a particular camp, so even while I acknowledge my liberal tendencies, I won’t hesitate to begin an editorial with my own criticisms of fellow liberals or the Democratic Party. One party obviously contradicts my ideals more often than the other, but I have no love for political parties in general. And there is plenty of common ground on which I think both Democrats and Republicans routinely fail to serve the country’s interests.
It’s cheap politics for the DNC to utilize Mitt Romney’s remark that he’s “not concerned about the very poor” and to make a campaign ad out of it. In that ad, the quotation is very conspicuously cut off, and anyone who views such things objectively ought to immediately recognize that it both mischaracterizes Romney’s remarks and allows the Democratic Party to dodge the need to present a clear distinction between their policies and his. Taken out of context, Mitt Romney’s comment sure does portray him as callously out of touch. And indeed, I believe he is just that. But he didn’t say what he’s being accused of saying.
What Mitt Romney really said was, “I’m not concerned about the very poor; we have a safety net there, and if it needs repair, I’ll fix it.” That’s quite different from simply declaring that you don’t care one bit about a particular segment of the population. Romney’s not saying that society has no responsibility for the poor; he’s saying that we already do enough for them. I don’t think one needs to twist that argument in order to criticize it. It would be cartoonishly villainous for a presidential candidate to say, “I don’t care if the poor starve to death,” but it’s not exactly saintly to say, “as long as the poor don’t starve to death, I’m satisfied.” It worries me that the Democratic Party feels the need to mischaracterize Romney’s remarks so they sound like the former statement, because that implies that they don’t see the latter as being sufficiently divergent from their more liberal views.
It says something about the alienation of liberalism in modern American society that commentators like Rush Limbaugh unabashedly deride Romney for defending the very existence of the social safety net while Democrats merely pretend that he doesn’t defend it and make that the focus of their criticism. If liberalism were genuinely at home in American politics, somebody would be quoting Romney’s words exactly as he said them and using them to express indignation at the idea that the poor are sufficiently taken care of. Not only is no prominent politician or commentator saying that in this case, no one ever says it.
After his misleadingly shocking sound bite, Romney went on to say, “We will hear from the Democrat Party: ‘the plight of the poor.’” But will we? Honestly, I can’t think of any Democrat who has reliably expressed lofty ideals about ending the epidemic of homelessness or providing assistance to the poor that goes beyond food stamps and unemployment insurance and that attacks the actual system that keeps people poor, by providing public works employment, for instance.
“You can choose where to focus,” Romney said, ostensibly differentiating his campaign from that of Democrats and other Republicans. “You can focus on the rich – that’s not my focus. You can focus on the very poor – that’s not my focus. My focus is on middle-income Americans.” I don’t believe him when he says that his focus isn’t on the rich, but that aside, I find that everyone in politics today pronounces their focus to be entirely on the middle class. And that’s easy to understand, since not many votes are found on either extreme of the income scale. In fact, given how broad and flexible different people’s conceptions are of “middle-income,” that’s where all of the votes are. Frequently, Americans, whether sitting comfortably within the top five percent of income earners or walking the poverty line like a tightrope, view themselves as middle class. So when a politician talks about defending middle class Americans or putting his political focus on their interests, citizens will tend to think that he’s talking about them. And there’s little doubt that politicians know this.
President Obama’s comments at the National Prayer Breakfast regarding the Christian obligation to help the poor were striking precisely because they are so anomalous in mainstream politics. The sentiment seemed earnest and was well-placed at the event, but the fact that the DNC ad was released on the same day compels me to view it with a great deal of cynicism. The ad is a transparent attempt to score points by leaping on an easy way of portraying the Democratic Party, fairly or unfairly, as having more compassion for the poor than their opponents. I can only hope that the prayer breakfast speech was genuine, and not a more subtle example of the same – a quick response to Romney’s ostensible gaffe the day before.
If it was intended as a response, that illustrates the very problem with political treatments of the issue of poverty and economic disparity. The best that the Democratic Party can do most of the time is wait for a Republican to say something objectionable, and then issue a response that says, “We’re not like that; we care about everybody.” I’d be far more convinced if they took the lead, if they actually demonstrated their commitment to solving society’s ills from the bottom up, rather than from the middle out. As it is, the commitment to helping the poor is only something that is claimed, and rarely something that decides policy.
The DNC ad was framed entirely as part of a negative campaign. It cites nothing that Democrats have done or plan to do in order to eradicate poverty, homelessness, or hunger. It points out the initiatives that Romney would likely undertake that would hurt the poor, and it is right to do so, but a preponderance of negative campaigns risks miring us in negative government, wherein the avoidance of harm is considered a good unto itself. I trust the Democratic Party to avoid willingly making life worse for the nation’s poorest citizens, but I do not trust them to undertake truly original initiatives to mend what is broken within American society.
So long as I have reason to believe that the choice in American politics is between the party that doesn’t care about the poor and the party that cares about them only enough to make themselves look good, I won’t be much inclined to take empty pronouncements on the topic seriously, not matter which side they come from.
Monday, January 30, 2012
The McMillin Double-Standard
The Huffington Post a few days ago reported on a certain legislative conflict in the Indiana General Assembly. Republican Jud McMillin sponsored a bill to require drug testing of all welfare applicants in the state, leading Democrat Ryan Dvorak to introduce an amendment to levy the same requirement on members of the state legislature. As a result, McMillin temporarily withdrew the bill in order to reword it and try again.
This is a wonderful story, and it illustrates a breaking point I’ve been looking forward to for some time. Society needs to better recognize the responsibilities that holders of government office have to those entitlements that benefit them personally. Anybody who controls access to a good or service for other people should be subject to the most rigorous qualifications for their own access to the same. To structure a system otherwise is to invite conflicts of interest.
It belies his gratitude for the benefits of being on the government payroll if a legislator utilizes his salary, health benefits, and the like, but thinks nothing of limiting unemployment insurance or social security and erecting road blocks to such programs for citizens who rely on government money but can’t take it for granted as a sitting legislator can. It borders on dictatorial if a government official places some sort of burden of proof on his constituents in order that they may access something that he takes casually for himself.
It may seem sensible to place such restrictions on welfare recipients since they do not need to work for their entitlements as legislators have to work for their salaries. But the simple fact is that both groups derive personal benefit from their government, and it is unfairly and irresponsibly presumptuous to expect one and not the other to prove their worthiness, especially when one group is tasked with upholding the very system that feeds them both.
There’s no reason other than pure bigotry to think that poor people are more likely to be on drugs than are those who come from a socio-economic status that puts them close to the halls of power. But even if there was, if drug use ought to bar one’s access to government money, it ought to be a universal standard, and certainly not one from which assemblymen are exempt on the basis that they’re probably not on drugs anyway, so they don’t have to prove it. That would be a shockingly undemocratic double-standard.
If the poor owe it to their country to prove their worthiness for its entitlements, government officials owe it to their country to prove their own worthiness on the basis of the very same standards, and more besides. If your very livelihood is the preservation and improvement of the government that pays your salary and ostensibly serves its constituents’ interests, you should feel the full extent of what that government demands of its citizens. Government servants should never take government for granted, lest they lose sight of what it means to the rest of us.
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.
