Daily Escape – Page 48 – The Wrongologist

The Great Resignation

The Daily Escape

Sunrise, Alpine AZ – November 2021 photo by Ed Kendall. Alpine is at 8,200’ elevation.

“You’re probably aware that the US is experiencing what many call the Great Resignation — a significant fall in the number of people willing to accept jobs, at least at pre-Covid wages. Four million fewer Americans are employed than were on the eve of the pandemic, yet the rate at which workers are quitting their jobs — usually a good indicator of labor market tightness — has hit a record, and the scramble of employers to find workers has led to rapid wage increases.”

People see the “now hiring” signs everywhere. They assumed that generous unemployment benefits were discouraging workers from accepting jobs. But the enhanced benefits went away with no visible change in the US labor force participation. So, what’s going on?

Back to Krugman: (brackets by Wrongo)

“…[the] Great Resignation, it turns out, is largely an American phenomenon. European nations have been much more successful than we have at getting people back to work. In France, in particular, employment and labor force participation are now well above prepandemic levels.”

Barry Ritholtz says that there’s a massive transformation underway in America’s labor markets. When we look at the total Quits Rate for all Nonfarm payroll workers since the Great Financial Crisis (GFC) ended in 2009, the trend in the “quits rate” has steadily moved higher for all workers and really accelerated this year:

The red trend line shows that the rate that people are quitting has now returned to its level in 2016, and except during the pandemic, it has continued to rise.

If you look at only the Quits Rate for Professional & Business Services, those white-collar workers who did okay during the pandemic, their trend isn’t the same as the overall quits:

There’s been virtually no difference in the rate of professional quits since 2008. That’s telling us that the Great Resignation is taking place in the lower half of the employment wage scale, entry-level jobs, and the tiers just above them.

This has deep ramifications for the American economy.

Companies who rely on cheap labor are having hiring problems. Those companies that pay the minimum wage (or slightly higher) are having a hard time finding workers. Part of this is the failure of the Federal government to raise the minimum wage, which has been the same since 2009. That hasn’t kept up with inflation, or the growth in corporate profits.

Instead of gradually raising the minimum wage over time nationally, putting it on a path towards $15 or higher, we’ve allowed wage pressure to build for years. Then, during the pandemic, we experienced an 18 month period when low-wage workers reconsidered their careers. The dam broke, and we’re seeing both a sudden spike in wages and a shortage of workers.

Along the way, some labor has upskilled, gotten certified, degreed, and found new fields to work in. Now we have millions of people launching small businesses, striving to make it to the middle class, and towards self-determination. From the WSJ:

“The pandemic has unleashed a historic burst in entrepreneurship and self-employment. Hundreds of thousands of Americans are striking out on their own as consultants, retailers and small-business owners.”

The number of unincorporated self-employed workers has risen by 500,000 since the start of the pandemic, to 9.44 million. Except for a few months this summer, that’s the highest total since 2008. It amounts to an increase of 6% in the self-employed, while overall US employment total remains nearly 3% lower than before the pandemic.

So far this year, these entrepreneurs applied for federal tax-identification numbers to register 4.54 million new businesses, up 56% from the same period of 2019. That is the largest number on record since 2004. And two-thirds are for businesses that aren’t expected to hire employees.

Monday Wake Up Call – November 29, 2021

The Daily Escape:

Dusk, San Miguel Peaks, Uncompahgre National Forest, CO – November 2021 photo by Tad Bowman

And we’re back from our gratitude-giving, dessert-eating weekend at the Mansion of Wrong. Did I miss anything? Oh yeah, Omicron. It’s the 15^th letter of the Greek alphabet, but it has a darker meaning for people who fear Covid. Omicron is also known as B.1.1.529 Coronavirus variant. It was first detected in Botswana and South Africa earlier this month.

It’s moving fast. Cases have been found in Australia, Hong Kong, the UK, Germany, France, Italy, Belgium, Israel, and the Netherlands, in addition to several African countries. But we know very little about it so far.

Three questions have to be answered: How rapidly does the variant spread? Is it capable of causing more serious disease than the known variants? Can it circumvent the immune protection of the Covid vaccines?

Once again, we’re facing an unknown. Dr. Fauci said Omicron looks more transmissible than others, and thinks that it’s inevitable that the US will see cases of the new variant. No need to panic, but the US has shut down flights from several African countries. There are questions facing us:

Will we be better prepared for this variant than we were for the past several variants that have killed nearly 800,000 Americans?
If a new variant becomes widespread, will it help make a nation that is already skeptical about its institutions and leaders better able to take direction from the federal government?
Will a substantial minority again toss aside experts and incumbents in a pursuit of self-management of their disease in the name of toxic freedom?

What will the political and economic ramifications of a new surge of disease be as we enter an election year? The battle lines are drawn. We know that the country is very evenly divided, and trying to govern causes one side to demand nearly the opposite of whatever is proposed. People on both sides of the political divide ask: Who can we really trust? Who do we really believe can solve the problem? Who’s really for us?

We used to take it on faith that our country works, that the dollar is a valuable currency, that there will always be a peaceful transition of power. But those things are slipping away. Many think that we are teetering on the edge of something very dark, that we must be pulled back, if we are to preserve America.

What are we actually trying to preserve? Our lack of shared values? The sham of our voting laws? McDonald’s, apple pie and baseball? Think long and hard about these questions. Regardless of what conclusion you reach, you’ll find that it simply won’t resonate with a significant minority of Americans.

Time to wake up America! Our social cohesion is dying. The Fund for Peace ranked the political cohesion of countries between 2008 and 2018. They found that the US had the largest drop in cohesion of any country studied, including Libya, Mali, and Bahrain. Martin Longman likens an asteroid headed straight for Earth to where we are as a society. We complain about the asteroid rather than the destruction it will cause.

To help you wake up, listen to U2 play their global hit “One” live at Commonwealth Stadium, Edmonton, Canada in 1997. The song is about finding unity:

Sample Lyric:

Well, it’s too late tonight to drag the past out into the light.
We’re one, but we’re not the same.
We get to carry each other, carry each other… one
Have you come here for forgiveness,
Have you come to raise the dead
Have you come here to play Jesus to the lepers in your head
Did I ask too much, more than a lot
You gave me nothing, now it’s all I got.

“One” is a song about disunity written against a backdrop of reunification. U2 decided to work at Hansa Studios in Berlin. The studio used to be called “Hansa by the Wall” but when U2 got there, the Berlin wall was gone. Bono told the BBC:

“The irony of One’s title is the band wasn’t very close at the time….We were building our own wall right down the middle of Hansa studios.”

Happy Thanksgiving

The Daily Escape:

Turkeys on the fields of Wrong – November 2018 photo by Wrongo

(Wrongo is taking a break for the Thanksgiving holiday. Posting will resume on Monday, November 29th. We should expect that by then, most of what we already know will still be on everyone’s plates, and it won’t be leftover turkey.)

“I am grateful for what I am and have. My thanksgiving is perpetual” — Thoreau

Thanksgiving is Wrongo’s favorite holiday because as a secular holiday, no one commands you to do anything. Celebration is subdued, and at least around here, it focuses on gratitude.

Here’s Wrongo’s thanks to the readers of the Wrongologist. Special thanks go to everyone who reads this crummy blog, particularly those who have stuck around since the beginning: Monty, Fred, David, Marguerite, Kelly, and Terry. Thanks to those who comment and send me private emails saying the equivalent of “What’s wrong with Wrongo?”.

I am grateful that you all stick with it, and with me.

We started this adventure in 2011. Since then, this is the 2,286^th post. This year’s list of readers includes people in 166 countries. The company that hosts the Wrongologist says that in the past 12 months, we’ve had 1.2 million page views. Most readers (43.7%) use a desktop machine, and Chrome (48.2%) is the preferred browser.

Wrongo is grateful every day for this journey he’s on with you. Sometimes, it seems like cynicism and despair is all we have left. But then there are days like today, a crystal clear morning, and at sunup, the temperature outside was 26°F. Hopefully, optimism will stick with us for a few days.

On the big day, we’ll have a fire in the fireplace, “Alice’s Restaurant” playing in a semi-continuous loop, along with good thoughts about the great country that we’re privileged to live in.

We’re thankful to those who came before us, and to our family members and friends who can’t be with us today. We’re thankful to those who are on the front lines in military service, or here at home in our hospitals, schools, firehouses, and police stations.

Let’s listen again to two of Wrongo’s favorite Thanksgiving songs. First, the late Tom Petty and his band Mudcrutch. Petty started his career with Mudcrutch, but everyone knows The Heartbreakers, who he had most of his hits with. Petty returned to Mudcrutch for the last time in 2016, when they released the album “Mudcrutch 2”. Here is Mudcrutch with Petty singing “I Forgive it All”, an incredible reflection on life and forgiveness. The video stars Anthony Hopkins:

Sample lyric:

I ain’t broke and I ain’t hungry
but I’m close enough to care

Wrongo’s other favorite Thanksgiving song is “Be Thankful For What You’ve Got” by William DeVaughn. It sold nearly two million copies after its release in 1974. It reminds us of a time when there was more optimism in America. If you lived or worked in NYC in the1970s, the video will take you back to a difficult period in that city’s history:

Sample lyric:

Though you may not drive a great big Cadillac
Gangster whitewalls TV antenna in the back
You may not have a car at all
But just remember brothers and sisters
You can still stand tall
Just be thankful for what you’ve got

Happy Thanksgiving everyone!

Should Biden Run Again?

The Daily Escape:

Mesquite Dunes, Death Valley NP – November 2021 photo by Ed Kendall

Paul Campos asks: “Should Biden run again in 2024?” While Martin Longman asks what explains Joe Biden’s steep decline in the polls in the latter half of 2021?

Jonathan Chait has an idea:

“Nobody can say with any confidence if this fall can be reversed. Indeed, given the US’s steady job growth, nobody can ascertain exactly why the public has turned so sour so fast. Biden is like a patient wasting away from some undiagnosable disease. What is clear is that if the presidential election were held this fall, Biden would enter the contest as the decided underdog against Trump.”

All of us have been on the wrong side of failing someone’s unstated expectations. We didn’t know we were taking a test; we didn’t know our actions were being scored, and naturally, we failed. That’s where Biden is today. Regardless of the analysis, it seems clear that Biden would lose an election to a Republican if it were held today, probably even to Trump.

But the reasons for Biden’s poor poll numbers are at least to Wrongo, unclear. At the 2020 presidential election, people were crying out for a return to normalcy. Back to Campos:

“It’s clear that a big underlying reason for Biden’s success in 2020 was a widespread…belief/hope among voters…that electing an anodyne middle of the road elderly white man — you know, a normal person, as opposed to a woman or a minority or a Jewish radical leftist [sic] — would calm things down after all the Trump craziness, and the Republican party would at least trend back toward being a center right party…”

We didn’t return to normal, and maybe, there isn’t a normal to return to. If that’s true, “Make America Great Again” will again have tons of appeal.

Wrongo detects among Democrats a perception that Biden and the Democratic Party are all in on tying their policies to racial justice. While that’s well-intended, and good strategy for energizing the base of People Of Color, it’s causing some dissatisfaction among Whites and certain Hispanic sub-segments.

That showed in this year’s Virginia and New Jersey elections. White suburban women moved away from the Dems in both states.

In Passaic, NJ, Hispanics make up about 70% of the population. Trump won 22% of their vote in 2016, and 36% in 2020. The 2021 Republican candidate for governor won a similar percentage. A Republican won a seat on the county board of commissioners for the first time in more than a decade.

These results should be a wakeup call for Democrats.

A recent Pew Research study divided the electorate into nine affinity groups, four Republican, four Democratic and a disaffected group that didn’t fit well into either Party’s coalition. Pew found that among: (brackets by Wrongo)

“….the four Republican-oriented typology groups…[fewer]…than…a quarter say a lot more needs to be done to ensure equal rights for all Americans regardless of their racial or ethnic background; by comparison, no fewer than about three-quarters of any Democratic group say a lot more needs to be done to achieve this goal.”

This gulf on one of the central questions facing our nation suggests that for now at least, Republicans have a powerful message to take to Independents and undecideds in the mid-terms and beyond. From Tom Sullivan:

“The MAGA squad on Capitol Hill sees waging culture war as the very point of holding political office: stoking anger, provoking fights, “owning the libs,” and advancing conspiracy theories.”

Everything isn’t about Dems being too pro-equality. Things like the withdrawal from Afghanistan, inflation, the supply chain disruptions, and the Delta variant of Covid have something to do with Biden’s poor numbers, along with no prospect of returning to normal.

Should Biden not run in 2024? Do the Democrats have a viable national candidate who could step into Biden’s shoes? Having a president candidate in their early to mid-80s, like Biden will be, isn’t optimal. That would seem to rule out both Sanders and Warren.

Kamala Harris looks to be doomed at least for now as a national candidate. She polls behind Biden. About the only thing low-information voters know about her are her gender and ethnicity. All else being equal, being nonwhite and female are probably national electoral handicaps this time around. She does appeal to many minority voters. But are there enough minority voters in swing states who would be willing to vote for her?

Given the ossification of the Democrats, the question of “Who should run?” feels like shuffling the deck chairs on the Titanic.

We’re one election away from permanent Republican rule that will bring with them “show elections”. So far, no Democrat with the exception of a few dark horses, like Transportation Secretary Pete Buttigieg or Connecticut Senator Chris Murphy, appear to have the smarts and charisma to be credible with the disaffected middle road of American voters.

Maybe the Dems have no realistic alternative to Biden in 2024.

Who do you think should run?

Saturday Soother – November 20, 2021

The Daily Escape:

Floyd Lamb Park, Las Vegas NY- November 2021 photo by Marcia Steen

The biggest, baddest news of the week was that Kyle Rittenhouse was found innocent on all charges in the Kenosha murders.

As bad as that is, there’s some good news to start the weekend. First, the House succeeded on Friday in their months-long quest to pass Biden’s social spending bill. It still faces a serious challenge in the Senate before it can become law.

Second, the Organization for Economic Co-operation and Development (OECD) reported that the US is the only G7 country to surpass its pre-pandemic economic growth. Employment is up. Wages are up. Goldman Sachs predicts by the end of next year the US unemployment rate will drop to a 50-year low, thanks to continuing red-hot demand for workers. Retail sales surged 1.7% in the month of October. American consumers spent $638 billion in October, a 16% increase from last year.

Meanwhile, slowly but surely, the supply chain bottlenecks that have plagued our economy for over a year appear to be easing. Imports through the ports of Los Angeles and Long Beach are up 16% from 2018, and in the first two weeks of November, those two ports cleared about a third of the containers sitting on their docks.

The Baltic Dry Index (BDI), a measure of global shipping rates and an inflation indicator, has plummeted 50% since peaking Oct. 7, another good sign for consumers. And the global chip shortage that was crippling the auto industry? GM said that the week of Nov. 1 was the first time since February that none of its North American assembly plants were offline due to a lack of chips.

All of this good news is going to waste because of the media’s hot takes on how bad Biden is doing. From Eric Boehlert:

“For weeks this fall, the Beltway press joined forces with the GOP to tell a hysterical tale about the state of the US economy. It was an alternate version of reality, where the stagnant, faltering economy was being driven to the precipice by runaway inflation, which stood poised to demolish middle-class savings across the board. All while an ineffective president stood by and watched cash-strapped households suffer.”

Boehlert says that recent press coverage suggests the economy is an albatross around Biden’s political neck, while in reality, it’s booming.

Biden got elected to bring a return to normalcy. Since there’s no normalcy in sight, his poll numbers (along with Democrats generally) have plummeted. David Brooks in the NYT addresses Joe Biden’s efforts at meeting the needs of people in “left behind” places of the country that did not vote for him: (parenthesis by Wrongo)

“If (noted economist) Larry Summers thinks lifting wages at the bottom will cause inflation…so be it. The trade-off is worth it to prevent a national rupture.”

Democrats have to get beyond the victory laps when they pass a bill, and let America know what the bills are for. Propaganda is a tool that shouldn’t be used to yammer on about defunding the police. Here’s Wrongo’s list of what Dems should say they’re for:

The Bill of Rights
One person, one vote
A world-class ideology-free education for all American kids
Jobs for more Americans
Universal health insurance
No more foreign interventions
More police funding and more police accountability
Reduce carbon emissions
Zero potholes

That last one is facetious, but it’s political gold in Wrongo’s town, and is funded in the recent infrastructure bill.

The Democrats’ gamble is whether their efforts and their successes will be rewarded politically less than a year from now, in November 2022. Remember that despite what the pundits say, passing the items on Biden’s platform shouldn’t be primarily to woo swing voters. They’re to shore up enthusiasm among your base, something that Dems didn’t have in the recent elections in Virginia and New Jersey.

Right now, things look grim. If you let your mind wander to what might happen if there’s a Republican House and Senate in January 2023, you should be happy not sad, that the Dems aren’t repealing the filibuster.

Let’s take a break and try for some normalcy in our weekend. Wrongo recommends that you start by not watching the Sunday pundit shows. Here on the fields of Wrong, we’re still engaging in our fall clean-up, trying to take advantage of the few warmer days to work outside. Also, there’s some menu planning for Thanksgiving underway.

So, settle into your Saturday Soother, where we leave the chaos behind for a few moments. Let’s start by grabbing a chair near a large window, and listening to the Prague Cello Quartet play an atmospheric version of the theme from “The Phantom of the Opera”:

Increased Demand is Causing Price Inflation

The Daily Escape:

Pueblo Bonito, Chaco Canyon, NM – November 2021 photo by James C. Wilson. It’s difficult to hire stone masons this good today.

“If Americans are feeling glum, they sure are engaging in some retail therapy.”— WSJ’s “Heard on the Street” columnist Justin Lahart

We’re in a period of unclear signals. Every poll says that Americans believe inflation is high and the economy is bad. But unemployment is low, GDP growth is high, and people are buying things like crazy:

“The Commerce Department…reported that sales at stores, restaurants and online rose 1.7% in October from a month earlier, better than the 1.5% economists expected. Additionally, estimates of August and September retail sales were revised upwards. Sales were broadly higher across most categories, with gains at department stores, electronics and appliance stores and online retailers in particular…”

This led economists to revise their fourth-quarter GDP estimates higher. JPMorgan Chase now forecasts GDP will grow at a 5% annual rate in the fourth quarter, versus its previous 4% estimate. The news wasn’t all terrific, as restaurant and bar sales were flat in October versus a month earlier. That might be an indication of cooler weather keeping diners at home as outdoor seating arrangements became less comfortable.

Overall, this dynamic growth in retail sales stands in contrast to the University of Michigan’s consumer sentiment survey that fell in early November to its lowest level in a decade.

How to explain what’s going on? People have some savings. Some people have higher wages, and both seem to be having a greater influence on how much people are willing to spend than price increases are having on how they feel about Biden’s job performance.

Claudia Sahm argues that some of the savings are due to government checks, and it was worth it:

“2021 began with economists arguing about $1,400 stimulus checks. Americans got them, but they got higher inflation too. Even so, the checks were very good policy.”

She compares the government’s reaction in the Covid crisis to their reaction during the Great Recession. This time, Congress went big:

“In 2008, Congress enacted one round of stimulus checks, totaling about $110 billion. During the first year of Covid, it sent out three rounds at close to $1 trillion dollars. A family of four got $11,400, which is about 20% of median family income.”

Here’s a chart showing the difference between the two policy approaches. Sahm plotted the value of the payments against the trend of personal income during both recessions:

The three rounds of stimulus checks provided relief to the families whose lives Covid disrupted and it helped bolster the economic recovery by creating jobs. The Covid relief paid the bills. Stimulus helped bring back paychecks.

Most people spend most of the money they make. With smaller take-home money during the crisis, many Americans made a dramatic cut in their spending. And big cutbacks in spending in an economy driven by consumers, led to big layoffs. So, the policy decision to put money in people’s bank accounts was key to keeping the Covid recession as short-lived as possible.

Clearly, the fast recovery came with a cost. Inflation is higher today than it has been in 31 years. But don’t let the inflation doom-sayers fool you: consumer spending, even after taking inflation into account, has been increasing even as millions are out of work.

New Deal Democrat shows us that total activity through the big Southern California ports is breaking records, and yet as we know, they still can’t keep up with the increased import demand:

Despite increased container handling capacity, this explains a great part of the current supply chain bottleneck since the global supply chain is incapable of handling a sudden jump in consumer demand. It partially explains why goods shortages and price pressures have mounted. That, in turn, is pushing up prices. The NYT quoted Aneta Markowska, chief financial economist for Jefferies, an investment bank:

“It’s the demand in the first place that’s causing prices to move higher…There is a supply shortage, but it’s not because of bottlenecks. It’s because we’ve had this big shock to aggregate demand and supply can’t respond quickly enough.”

There are still plenty of logistics bottlenecks. Yes, we’re buying much more stuff, and paying more for it. But households were sitting on a collective $2.5 trillion in savings built up during the pandemic. And millions of jobs have come back, so spend they will.

The Covid recession was a sharp and steep one, the deepest since the Great Depression. But the speed of recovery has been very fast, due in large part to the policy decision to put checks in people’s pockets.

This time, government worked for us.

Let’s have a Thursday tune. Everyone has heard 1981’s “Under Pressure” a masterpiece by Queen and David Bowie. It was covered by Fall Out Boy as part of ABC’s Queen Family Singalong on Nov 4. Lead vocalist Patrick Stump tries to sound like both Freddie Mercury and Bowie. Read the words and you’ll understand why Wrongo offers it today:

Monday Wake Up Call – November 15, 2021

The Daily Escape:

Autumn, Seven Lakes Basin, OR – October 2021 photo by Valledweller33

With Congress’s dancing around (and not passing) Biden’s social welfare bill, we’re now to the point where there are less than 20 days until the government’s funding runs out in early December. There are other issues that must be dealt with as well. The federal debt limit needs to be raised. The National Defense Authorization Act must be passed.

The Democrats and Biden are entering yet another critical time. Wrongo wrote about this two months ago, and since then, just about the only thing that Congress accomplished was passing the infrastructure bill. That wasn’t chump change, but the 2021 legislative calendar has only three weeks left to accomplish a long list of must-pass items.

But this is far from the only concern for Dems. With the 2022 mid-terms looming, they need to take a careful look at their policies on immigration, crime, and inflation. These will all be issues that Republicans use against them at election time. The Dems response is usually to deny that an issue is a problem for them, or for the country.

The Dems start by saying there’s nothing to the problem. They reframe it as a different and more complex issue, and say that the White House is already on top of it. This is what Ruy Texeira calls the Fox News Fallacy.

“This is the idea that if Fox News…criticizes the Democrats for X then there must be absolutely nothing to X and the job of Democrats is to assert that loudly and often. The problem is that an issue is not necessarily completely invalid just because Fox News mentions it. That depends on the issue.”

If there’s something to the issue and persuadable voters have real concerns, Democrats won’t assuage those concerns simply by embracing their Fox News Fallacy of denial and deflection. Texeira offers a few examples including the debate over CRT, border security, and crime:

“Start with crime. Initially dismissed as simply an artifact of the Covid shutdown that was being vastly exaggerated by Fox News and the like for their nefarious purposes, it is now apparent that the spike in violent crime is quite real and that voters are very, very concerned about it.”

Clearly this includes the Democrats’ traditional base of Black and Hispanic voters. A Pew poll found that Black and Hispanic Democrats are significantly more likely than white Democrats to favor more local police funding.

This is more of the disconnect that Wrongo wrote about last week. Democrats need to deal with how their pet issues may play differently to different parts of their coalition. As blog reader D. Price said in comments, we assume that our liberal values and the language we use to frame those values must fall on others’ ears just like it does on ours. He points out that Dems need to listen more and take seriously the different perspectives in the Democratic coalition.

Some Democrats, like NYCs mayor-elect Eric Adams, openly highlight their commitment to cracking down on crime and criminals. Consider a recent NBC poll that shows Republicans are favored over Democrats on the crime issue by 22 points.

And in heavily Black Detroit, a USA Today/Suffolk University//Detroit Free Press poll found that Detroit residents, by an overwhelming 9-1, say they would feel safer with more cops on the street, not fewer. On a list of eight concerns, police reform ranked last, at 4%.

The poll also found a significant racial divide on the question. Black residents ranked crime at the top of their list of concerns: 24% cited public safety, and just 3% named police reform, while White residents were only slightly more concerned about police reform than public safety, 12% compared with 10%.

Democrats have to stop saying that they suck at messaging, as if there’s nothing that can be done about it. They must create messaging that emphasizes what Americans have in common and their right not just to economic prosperity but to public safety, secure borders and a world-class (and maybe) non-ideological education for their children.

That’s much more likely to work than simply denying that these issues are problems.

Time to wake up Democrats! There’s no time to lose. Despite the messaging from DC that all will be fine in the mid-terms if the Dems just pass a few pieces of legislation, their problems are much deeper. To help them wake up, listen and watch Della Mae, an all-woman American bluegrass band perform their 2021 tune, “The Way It Was Before“.

Sample lyric:

I left my home and rolled the dice
Followed the promise of a better life
Now I work at the factory
On the third shift while my kids sleep
They say our job’s a necessity they turn the lock and hide the keys
They call us heroes on the killing floor but a day off is something that I can’t afford

We can’t go back to the way it was before
While some profit off the ones who just endure
We all know what’s broken won’t get fixed by wishin and hopin
We can’t just go back to the way it was before

Saturday Soother – November 13, 2021

The Daily Escape:

Coral Pink Sand Dunes State Park, UT – November 2021 photo by Byron Jones

This week’s Veteran’s Day apparently isn’t finished with Wrongo just yet. It’s important to remember that when the US war in Afghanistan ended in August after nearly 20 years, there were both hard and soft costs that had been paid, and much that remains to be paid.

The Pentagon reports the hard costs of our Afghanistan adventure to be $825 billion. However, the “Costs of War” project at Brown University estimates those costs at $2.313 trillion. But it gets worse: They estimate the costs of all US post-9/11 war spending at $8 trillion, including future obligations for veterans’ care and the cost of borrowing on the associated federal debt for roughly 30 years. They also estimate the human costs of the “global war on terror” at 900,000 deaths.

Those are all truly staggering numbers.

And Congress is now considering next fiscal year’s military budget. Defense One is covering this so you don’t have to. They’re saying that the proposed 2022 defense budget will be another bipartisan effort by the old-timers in the House and Senate to add more money than was asked for into the pot. And it’s part of a long history of hiding flimsy arguments behind dramatic rhetoric: (parenthesis by Wrongo)

“This year, both the Senate Armed Services Committee (SASC) and House Armed Services Committee (HASC) have displayed a similar unwillingness to distinguish between needs and wants in their versions of the National Defense Authorization Act, which recommend adding $25 billion and $24 billion, respectively, to President Biden’s recommended $715 billion Pentagon budget.”

“It is difficult to imagine how either the SASC or HASC could convincingly demonstrate the necessity of such military spending increases when none of the most urgent crises facing the United States today have military solutions. Furthermore, the credibility of both the Pentagon and Congress on this subject is, to put it mildly, underwhelming: one has an extensive history of budgetary boondoggles, and the other is openly cozy with the U.S. arms industry.”

Defense One says that the most frustrating aspect isn’t the exorbitant amounts, but the lack of any substantive strategic justification for the increased spending by either Chamber. In specific, Defense One argues that there’s been no effort to demonstrate that the Senate’s billions are funding needs instead of simply political wants.

Remember this is from Defense One, a stalwart defender of America’s military.

We shouldn’t assume legislators think carefully about the public’s interest when crafting the defense budget. Over the years, the defense budget process is driven partly by what the administration and the Pentagon ask for, and by what the defense industry wants for its bottom line. (Full disclosure, Wrongo holds a significant number of shares in a large defense contracting firm.)

US military spending in 2020 was $778 billion. The next closest nation was China, at $252 billion. In third place was India at $72.9 billion. Another perspective is to compare what we spent to fight in Vietnam to the costs of our Apollo moon landing. Apollo 11 got to the moon in July of 1969. That feat cost the US about $25.8 billion.

During the same era, it’s estimated that the Vietnam War cost the US $141 billion over 14 years. That means that we spent about as much in two years in Vietnam as we spent on the entire space race!

When we think about accountability for the costs of the Pentagon, we should remember that the Pentagon has never passed an outside expense audit. Waste is endemic; and the Pentagon simply fabricates numbers, but receives nearly zero pushback from Congress.

There’s so much corruption in the halls of Congress that we will never know how little we could spend on defense. Maybe we should just make some deep cuts to the defense budget and force real strategic decision-making down their throats.

Enough! It’s Saturday, and we need to take a break from trying to figure out whether Steve Bannon or Kyle Rittenhouse will ever go to jail. It’s time for our Saturday Soother.

With a soaking rain in Connecticut today, we’re limited to indoor sports. Most of our fall clean-up is still ahead, but today, let’s grab a seat by the window and listen to pianist Max Richter’s “Mercy” with Richter on piano and Mari Samuelsen on violin. Richter originally wrote the piece 10 years ago for violinist Hillary Hahn. For Richter, “Mercy” places the need for mercy and compassion firmly within our view:

Expanding The Dem’s Voter Base

The Daily Escape:

Artist’s Point, Monument Valley Navajo Tribal Park, AZ-UT – October photo by Alan Seltzer

Ruy Teixeira explains the political (and messaging) dilemma facing Democrats in 2021:

“A recent Gallup release confirmed that Democrats now have about as many liberals in the party as moderates or conservatives. That liberalism has been mostly driven by increasing liberalism among white Democrats which has spiked upward 20 points since the early 2000s. White Democrats are now a solidly liberal constituency. Not so black and Hispanic Democrats who are overwhelmingly moderate or conservative.”

The contrast is particularly striking among Whites who are college graduates and working class (non-college) nonwhites. The Gallup data show that two-thirds of White college grads are liberal while 70% of Black working class and two-thirds of Hispanic working class Democrats are moderate or conservative.

This takes on additional relevance because in 2020, 63% of voters did not have college degrees, and 74% of voters came from households making less than $100,000 a year. This should make it painfully obvious that, if issues and rhetoric that appeal mostly to college-educated White liberals are promoted, Democrats could see serious attrition among Democrat working class nonwhites who dislike those issues and rhetoric.

It’s hard to build a majority if you’re focused on a minority of the electorate. The internal conflict between Democrats, displayed by the Gallup poll mentioned above by Teixeira, pits the Party’s progressives against its moderates, its college-educated against its working class.

Like the modern Democrats, the Whigs cobbled together their party in the late 1830s out of an assortment of constituencies, many of whom had little in common. The Whig Party was formed to counter President Andrew Jackson and the Jacksonian Democrats. They were one of the two major political parties in the US from the late 1830s through the early 1850s and managed to elect two presidents: William Henry Harrison and Zachary Taylor.

By the mid-1850s, the Whigs were divided by the issue of slavery, particularly as the country had to decide whether new states would be admitted as slave or non-slave states. The Kansas-Nebraska Act of 1854 overturned the Missouri Compromise and allowed each territory to decide for itself whether it would be a slave or free state. Anti-slavery Whigs then spun off to found the Republican Party in 1854.

Is the modern Democratic Party on the precipice of becoming the new Whigs? The Whigs were a coalition of bankers, lawyers, and the Eastern mercantile class. In the South, Whigs worked to put a moral face on slavery. This allowed the Whigs to cultivate political distance from what was becoming a party of southern Democrats happy to extend slavery in new states, and a northern base of what we call “blue collar” (white) workers.

The Whigs couldn’t continue bridging the ideological distance between the Northern industrial states section of the party and the Southern agribusiness/slavery Whigs. Faced with this dilemma, the party broke apart.

If the Democrats are to remain one Party, a new poll by Jacobin, YouGov, and the Center for Working-Class Politics offers a perspective on how to win among working-class voters. They found that:

Candidates who prioritized bread-and-butter issues (jobs, health care, the economy), and presented them in plainspoken, universalist rhetoric, performed significantly better than those who had other priorities or used other language. That preference was even more pronounced in rural and small-town areas, where Democrats have struggled in recent years.
Candidates who named elites as a major cause of America’s problems, invoked anger at the status quo, and celebrated the working class were well received among working-class voters.
Potential Democratic working-class voters did not shy away from candidates who strongly opposed racism. But candidates who framed that opposition in identity-focused language fared significantly worse than candidates who embraced either populist or mainstream language.

The survey proposed multiple sound bites spoken by potential candidates to survey respondents to rank. The most popular sound bite was the “progressive populist” one:

“This country belongs to all of us, not just the super-rich. But for years, politicians in Washington have turned their backs on people who work for a living. We need tough leaders who won’t give in to the millionaires and the lobbyists, but will fight for good jobs, good wages, and guaranteed health care for every single American.”

This has implications for the 2022 mid-terms. Keep Trump off the table unless, by some miracle, the House committee investigating the Jan. 6 attempted coup refers charges to the DOJ and the DOJ acts on it. Another key finding was that those surveyed felt Democrats run too far left on certain priorities:

This is also key for building Democrats’ messaging in 2022. You can read the full report here.

Democrats need to think about what it will take to do two things simultaneously: How to stay together as a Party, and how to retain majorities in the House and Senate.

It won’t be simple, but everything depends on it.

Dems Must Persuade the Persuadable

The Daily Escape:

Sunrise, Jensen Beach, FL – November 2021 photo by Patrice Ostradick

More about the Dem’s messaging problem. The latest jobs report showed that we added more than 530,000 new jobs in October. And the DOL also revised its estimates for September and August, confirming an additional 235,000 positions were created.

That’s 766,000 jobs we didn’t know about until last Friday.

The news sent the Dow Jones upward (again). It ended at another all-time high, 36,327. Since Biden was elected last year, the market is up 40%. That’s $14 trillion in new wealth that has landed in quite a few pockets. But the media still covered a Biden administration in disarray. From Eric Boehlert:

“…on Friday, news consumers visiting WashingtonPost.com had to scroll down past 75 different stories and links before they found the first mention of the blockbuster jobs report…..at the top of the Post site Friday afternoon was a column about how the White House is having trouble spreading good news about the economy.”

Again, the media going all “gotcha” on Biden. And it’s having an impact on his poll numbers, which took another dive in a USA Today poll over the weekend that shows Republicans holding a lead on the 2022 Congressional ballot. It found that Biden lost support among the Independent voters who delivered his margin of victory over Trump one year ago:

46% said Biden has done a worse job as president than they expected, including 16% of those who voted for him. Independents, by 7-1 (44%-6%), say he’s done worse, not better, than they expected.
64% said they didn’t want Biden to run for a second term in 2024. That includes 28% of Democrats.

Democrats need to understand their peril. The NYT’s front-page story, “Americans Are Flush With Cash and Jobs. They Also Think the Economy Is Awful” shows their dilemma. The economy is by all accounts on fire, but consumers and voters think it’s floundering. You might question just who is flush with cash, but the negative views of the economy seem to be tied to the effects that rising prices and shortages have on families. Regardless of the exact causes, after decades where the lack of jobs drove economic sentiment, inflation now appears to be a force driving opinion about the economy.

Prices for many consumer goods are rising, and as we said yesterday, it’s impossible to win elections by telling voters that their concerns are imaginary. From Bloomberg (paywalled):

“It’s not all negativity: A record-high 74% of respondents told Gallup in October that this is a good time to find a quality job, and 65% told AP-NORC pollsters that their personal financial situation was good. The Conference Board’s Consumer Confidence Index rose in October and, while lower than before the pandemic, is higher than at any time between 2001 and 2017.”

The reality is that consumer prices have risen faster over the past six months than at any time since the early 1980s. And there’s increasing evidence of a partisan bias in consumer sentiment, with most people judging the economy more favorably when the person they voted for is president.

Remember that the USA Today poll says 64% think Biden shouldn’t run in 2024. Maybe some of today’s economic pessimism has to do with people downgrading their view of Biden’s competence after the surge in the Delta variant that killed so many, while our messy withdrawal from Afghanistan was seen by many as humiliating.

The Democrats’ conundrum is how to respond both to the economic concerns and the cultural attacks. They can’t win by simply pointing to their actual policies on specific issues. They must respond to the attacks on “wrong way for the country” by honing a message that works for the persuadable Independents. We live in a 40-40-20 country in which 40% percent are hard-wired for either Party, and 20% are swing voters, who are primarily located in the suburbs. They largely control the outcome of elections.

Democrats need to study the art of persuasion. The Right is driven by nostalgia: they want to go back to a “simpler time”. The Left is motivated by change, to ensure rights for all, whether that’s healthcare or fair wages. if Democrats want to win against the highly organized right-wing media ecosystem, they must find a series of messages to persuade Independents.

We need a tune for Tuesday. Here’s Willy Nile with something brand new, “The Justice Bell” a tribute to John Lewis, from his August 2021 album, “The Day The Earth Stood Still”:

The Wrongologist

Geopolitics, Power and Political Economy

Category: Daily Escape

The Great Resignation

Saturday Soother – November 13, 2021