Category: Abandonment of Middle Class

Monday Wake Up Call – December 12, 2016

“The American Dream: You have to be asleep to believe it.” – George Carlin

According to the College and University Food Bank Alliance, there are now 400 food banks in colleges and universities in the US. Four years ago, when the organization began, it only had 15 members.

Many students experience hunger. While the economy has rebounded, the cost of college continues to rise faster than median family income. The average total costs rose 10% over the past five years at public colleges and by 12% at private institutions, while median family income rose 7% over the same time period.

A new report shows that the college campus hunger problem is bigger than we thought. It surveyed more than 3,000 students at a mix of 34 community and four-year colleges, finding that 48% experienced food insecurity in the past 30 days. The data suggest that hunger is more common among college students than the US population as a whole. The study found that:

 56% of food insecure students were currently employed, more than half received a federal grant, and 18% had received a private scholarship. These are kids who are doing the right thing, but they continue to fall behind.

One reason that colleges and universities have felt the need to take student hunger upon themselves is that the US Congress has been feckless in providing solutions to college student hunger.

Legislation on Pell Grants are the responsibility of the Education and Workforce Committee, but when it comes to the Supplemental Nutrition Assistance Program (SNAP), those bills go through the Committee on Agriculture. That makes it more difficult to get a comprehensive policy enacted.

One example: Representative Bobby Scott, (D-VA), added an amendment to the Child Nutrition Act that would have expanded the National School Lunch Program to help college students. Students who qualified for financial aid would also qualify for subsidized lunches, according to the legislation. But when the amendment was considered by the House Education and Workforce Committee, it failed to pass.

This is part of a wider problem of food insecurity. The economy may be improving, but many Americans who were hit the hardest have yet to see any improvement. In fact, in 2015, 42.2 million Americans lived in food insecure households, including 29.1 million adults and 13.1 million children. Households with children reported food insecurity at a significantly higher rate than those without children, 17% compared to 11%.

It is doubtful that this problem will be solved by the new Congress and the Trump administration.

The idea that people should work hard, pull themselves up by the bootstraps while going into debt to attend college, and then not be able to eat, despite holding down a job while they study, shouldn’t be acceptable just because our Tea Party overlords would like to watch a Darwinian test.

Virtually everything said about poverty in America is essentially about moral failure. For liberals, it’s society’s failure. For conservatives it is the moral failure of the poor. Centrists say it is the failure of institutions and individuals together in a complex combination.

Poverty violates core American values. It challenges the American dream of a promise of prosperity for anyone who works hard, something that is a central tenet of our national ethic. Here we have kids working hard and needing support to eat.

Time to wake up Congress! This is the kind of problem that shouldn’t have any opposition, but it does. To help our well-fed Congress critters wake up, here is “American Tune”, by Paul Simon from his 1973 album “There Goes Rhymin’ Simon”. In this video Paul rocks a Freddy Mercury-esque mustache as was the style in the early 1970s:

For those who read the Wrongologist in email, you can view the video here.

Simon sings about the American Dream, from the Mayflower to “the ship that sailed the moon” (the Apollo moon landing) and says “you can’t be forever blessed”. His point was that America had reached the height of human achievement, but then, we squandered our gifts.

How prescient for 1973!

Sample Lyrics:

Many’s the time I’ve been mistaken, and many times confused
And I’ve often felt forsaken, and certainly misused.
But it’s all right, it’s all right, I’m just weary to my bones
Still, you don’t expect to be bright and Bon Vivant
So far away from home, so far away from home.

I don’t know a soul who’s not been battered
Don’t have a friend who feels at ease
Don’t know a dream that’s not been shattered
Or driven to its knees.
But it’s all right, all right, We’ve lived so well so long
Still, when I think of the road we’re traveling on,
I wonder what went wrong, I can’t help it
I wonder what went wrong.

We come on a ship we call the Mayflower,
We come on a ship that sailed the moon
We come at the age’s most uncertain hour
And sing the American tune
But it’s all right, it’s all right
You can’t be forever blessed
Still, tomorrow’s gonna be another working day
And I’m trying to get some rest,
That’s all, I’m trying to get some rest.

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Trump Promised Jobs. That’s Why He Won

Take a good look at this map. It shows which counties switched parties in the 2016 US Presidential election compared to 2012. Red counties switched from Democrat to Republican, blue counties switched from Republican to Democrat and the vast majority in grey did not switch parties:

counties-that-changed-partys

Source: Brilliant Maps

Of course, it doesn’t show vote margin or size of the total vote in each county. The main thing this map shows is the large number of counties in the North East and Midwest that flipped to Trump, after having been Democratic counties in the prior election. The effect was large enough to deliver the normally Democratic leaning states of Iowa, Michigan, Pennsylvania, and Wisconsin into the Republican camp.

Tim Duy has an article about how economists and most politicians get so wrapped up that they miss the human element in economic dislocations. Duy makes the point that they ignore two of the negative impacts of job losses. First, they say how lost jobs free up human capital for use elsewhere in the economy. Of course, as jobs are added to the economy, skill levels and training determine whether laid-off workers are part of that equation.

“High-skilled” workers is what we need, but they are not always the kind of workers that were laid off.

Second, Duy reminds us that most workers have little ability to move to where better jobs might be found. Politicians tell us that the economy is shifting to urban and suburban areas; to higher skilled jobs; that workers must go and get retrained. That misses the point.

Most new jobs for those who were laid off will only be found if workers are able to relocate, to move from rural or devastated urban locations to geographic areas where jobs are expanding. Duy notes it is particularly difficult for rural areas:

The speed of regional labor market adjustment to shocks is agonizingly slow in any area that lacks a critical mass of population…Relative to life spans, in many cases the shocks might as well be permanent.

We don’t have answers for most of these communities. Rural and urban economic re-development is hard. The people living in these regions have experienced job losses (or no jobs growth) for decades; positive jobs growth has occurred elsewhere.

And the laid-off workforce isn’t mobile. In effect, we have limited access to housing in our major cities by pushing housing costs beyond the reach of most middle class workers. This, from Kevin Erdmann:

If you lost your manufacturing job in Buffalo, and you’re thinking of moving to New York City because there are more jobs there, you might decide not to move because it is too expensive. It is the affordability that is keeping you out. But, even here, the affordability problem is just the messenger. It is the rationing mechanism for a housing stock that is relatively fixed for political reasons.

If you decide to move to the NYC area, you see that the housing supply is largely fixed. New buildings are hard to get through zoning. Construction costs in big cities are very high. Income taxes are rising rapidly.

Erdmann makes the point that housing in big cities doesn’t move up with increased demand:

So, it doesn’t matter if Brooklyn apartments rent for $500, or $1,000, or $2,000, or $4,000. There isn’t one for you. Fixing this by fixing affordability isn’t going to change the supply curve. It’s simply substituting non-monetary rationing mechanisms for the monetary one.

Trump’s message that US firms need to consider domestic jobs as much as their bottom line, also resonated with middle and upper-middle class households. OTOH, it’s not like Trump took on the Coal Industry on behalf of workers. He blamed federal environmental policy, but that isn’t what caused the loss of coal industry jobs.

Trump doesn’t really have any answers, but he pretends to care while pretending to have answers. Pretending to care and pretending to have answers gave him the switched counties on the electoral map above. People want work. They want secure jobs.

Trump might be running a “jobs” scam, but if it fails, what is the Democrats’ alternative?

We have four years until the next election, two if you are looking at Congress. What policies will work? Will we just trade Trump’s scam for another one peddled by the establishment?

Business as usual hasn’t delivered. The idea that economic growth creates jobs is a pipe dream for many: For the past 40 years, economic growth did not improve wages.

Trump’s promise swung the election. If he fails, what will be the Democrats’ response?

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Are We Facing an Undemocratic Future?

What do you think when Trump appoints so many retired generals to cabinet-level posts in his administration? The positive side of the argument is that these are talented, well-educated individuals who bring a worldview and experience on the global stage that Trump himself lacks.

The other side of the argument is that the authoritarian president Trump risks making his government much more authoritarian than it needs to be. This from Roger Cohen in the NYT:

A quarter-century after the post-Cold War zenith of liberal democracies and neoliberal economics, illiberalism and authoritarianism are on the march. It’s open season for anyone’s inner bigot. Violence is in the air, awaiting a spark. The winning political card today, as Mr. Trump has shown…is to lead “the people” against a “rigged system,”…The postwar order — its military alliances, trade pacts, political integration and legal framework — feels flimsy, and the nature of the American power undergirding it all is suddenly unclear.

We sound like a nation that is ripe for political upheaval. Citizens are not only more critical of their political leaders, they have become more cynical about the value of democracy as a political system, less hopeful that anything they do might influence public policy, and more willing to express support for authoritarian alternatives.

Yascha Mounk, a lecturer in government at Harvard, has spent the past few years challenging one of the bedrock assumptions of Western politics: That once a country becomes a liberal democracy, it will stay that way. That bedrock assumption is called “democratic consolidation” in political science, but Mounk’s research suggests that isn’t correct anymore.

In fact, he suggests that liberal democracies around the world may be at serious risk of decline. Data from Freedom House, an organization that measures democracy and freedom around the world, showed that the number of countries classified as “free” rose steadily from the mid-1970s to the early 2000s.

But since 2005, Freedom House’s index has shown a decline in global freedom each year. According to Mounk and his research partner Roberto Foa, who reviewed the data, early signs of democratic destabilization exist in the US and in other Western liberal democracies. They found that the percentage of people who say it is “essential” to live in a democracy has plummeted, and it is especially low among younger generations. The survey was based on 2014 data. Here is a graph from the Mounk-Foa study:

percent-who-say-democracy-is-essential-us

The graph shows responses by age cohort. Younger Americans have substantially less need to live in a democratic society than do older individuals. (The grey shaded part of graph is the 95% confidence limit for the responses to the survey). Remarkably, the trend toward acceptance of nondemocratic alternatives is especially strong among citizens who are both young and rich.

Mounk and Foa found that support for autocratic alternatives is also rising. Drawing on data from the European and World Values Surveys, they found that the share of Americans who say that authoritarianism would be a “good” or “very good” thing had risen from 18% in 1995 to 35% of rich Americans:

support-for-authoritianism-by-income-us

While citizen support for authoritarian rule remains in the minority, it can no longer be dismissed as a fringe group. They support “a strong leader who doesn’t have to bother with parliament and elections” and they want “experts” rather than the government to “take decisions” for the country. (In the study, “Upper income” is defined as the top 20% of income. “Lower Income” was defined as the bottom 50% of income.)

Overall, the rich are also now more likely than lower income citizens to express approval for “having the army rule.” While 43% of older Americans, including those born between the world wars and their baby-boomer children, do not believe that it is legitimate in a democracy for the military to take over when the government is incompetent or failing to do its job, the figure among millennials is much lower at 19%. In the US, only 5% of upper-income citizens thought that army rule was a “good” or “very good” idea in 1995. That figure has since risen to 16%, so the young rich are much more autocratic than their rich elders.

The clear message is that our democracy is now vulnerable. What was once unthinkable should no longer be considered outside the realm of possibility. This is partially the result of an educational system that does not teach even basic civics, much less the meaning of the Constitution.

Generations have grown up believing that they can casually read the document and understand what constitutional law is. Young Americans have never known the threat of an undemocratic system, so their fear of autocracy is far less than it is in the minds of their elders.

Trump is the prime example of this. And according to Mounk’s findings, he has a receptive audience in the young and the wealthy.

Would that be enough to undermine democracy in the US?

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Our New Political Majority

(This is the last column for this week. We will resume on Sunday with cartoons. Everyone has reasons to be thankful, so take the time to talk about them with your loved ones, or your close friends this week.)

Last weekend, like most Americans, Wrongo spoke with friends and family about how we got to the disappointing political place where we are today.

Der Spiegel Online asked: If you think back ten years, could you have imagined in 2006 that America’s reality would be Donald Trump as president of the US? Probably not, but ten years ago:

  1. Economic growth and job growth both fell in 2006 as the residential housing boom came to an end.
  2. Wages were the smallest share of national income since the government began compiling the statistic in 1947.
  3. Consumer debt soared to new heights, while consumer debt payments rose to the highest on record.

Those were dispatches from the ongoing war that corporations and neoliberal economic elites made on our citizens. And it didn’t stop there. After 2006, we had the financial meltdown and the Great Recession. Banks had to be bailed out. Millions of people lost their jobs. Debt grew, and faith in government’s willingness and ability to improve the fortunes of their citizens evaporated.

The clear losers were workers in traditional economic sectors, particularly in manufacturing. According to a study by economists David Autor, David Dorn and Gordon Hanson, the increase in imports from China have resulted in the loss of 1.5 million manufacturing jobs since the early 1990s.

But automation had a greater impact: In total, some 6.9 million manufacturing jobs were lost in the US between the early 1990s and 2011. For those who have lost their jobs, it seems that their political representatives have forgotten them. Particularly when establishment Democrats and Republicans continue to push for more trade, by which they mean more imports from our global corporations who continue to export those jobs to lower-wage countries.

In 2016, despite substantially better economic times, many American still worried about losing their jobs and their financial security. They saw themselves as the losers in a game that only helps corporations and the elites. This domination of our politics by the economic elites has produced a defacto disenfranchisement of everyone else.

A new political map has emerged, one that doesn’t neatly fit into the Left vs. Right model of our politics. The new dividing line is between those who support, and those who oppose, America’s economic elites and their neoliberal policies. Those on both sides of the old ideologies who distrust the elites are connected by their fear of being left behind. This was clear in 2016 in those precincts where Trump outperformed Romney, and where Clinton underperformed Obama.

This is today’s landscape, but in 1998, Richard Rorty, an American philosopher who died in 2007, wrote “Achieving Our Country” which predicted our current political situation. According to the NYT, the following fragment of the book has been retweeted thousands of times since the election:

Members of labor unions, and unorganized unskilled workers, will sooner or later realize that their government is not even trying to prevent wages from sinking or to prevent jobs from being exported. Around the same time, they will realize that suburban white-collar workers — themselves desperately afraid of being downsized — are not going to let themselves be taxed to provide social benefits for anyone else.

At that point, something will crack. The nonsuburban electorate will decide that the system has failed and start looking around for a strongman to vote for — someone willing to assure them that, once he is elected, the smug bureaucrats, tricky lawyers, overpaid bond salesmen, and postmodernist professors will no longer be calling the shots.

One thing that is very likely to happen is that the gains made in the past 40 years by black and brown Americans, and by homosexuals, will be wiped out. Jocular contempt for women will come back into fashion
All the resentment which badly educated Americans feel about having their manners dictated to them by college graduates will find an outlet.

Rorty’s basic contention is that the left abandoned its core philosophy in favor of a neo-liberal worldview that promoted globalism and corporatism. Rorty said in a lecture in 1997:

This world economy will soon be owned by a cosmopolitan upper class which has no more sense of community with any workers anywhere than the great American capitalists of the year 1900.

Mr. Rorty’s most prescient words:

The cultural Left has a vision of an America in which the white patriarchs have stopped voting and have left all the voting to be done by members of previously victimized groups.

Rorty said that in 1998. And in 2016, it was Hillary Clinton’s failed election strategy.

What’s so striking about “Achieving Our Country” is Rorty’s argument that both the cultural and political left abandoned economic justice in favor of identity politics, ignoring too many economically disadvantaged Americans.

According to voter turnout statistics from the 2016 election, 58.4% of eligible voters actually voted (135.2 million). Clinton received about 63.7 million votes (27.5% of eligible voters) to Trump’s 62 million, (26.8%) while 9.5 million votes went to others.

This means that 41.6% of America voted for nobody, far outweighing the votes cast for Trump or Clinton.

That the majority of Americans did not vote is not because they don’t care. They voted no confidence in a political system that forgot about them a long time ago.

A minority elected Trump. The majority voted against our neoliberal political system.

 

(BTW, Tuesday was the 53rd anniversary of JFK’s assassination. While it remains fresh in Wrongo’s mind, it hardly registers in the minds of the press or the public. A new idea on Oswald’s motives appeared in the LA Times. Take a look.)

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