Social Safety Net – The Wrongologist

Destruction of Government by Elon (DOGE)

The Daily Escape:

It used to be that In America, one truism of politics is that Social Security (SS) is the “third rail”: You mess with it at your political peril. Republicans have never liked Social Security. They voted against it when it was passed in 1935, and they have been trying to get rid of it in the 90 years since then.

But the problem is that SS is one of the most successful programs created by the government. It has reduced poverty among seniors from nearly 40% to only about 10% (and SS provides at least a subsistence level of income to that remaining 10%). It provides an income for people with disabilities who cannot work. And it has never added a penny to the national debt. Justifiably, it is a very popular program with Americans.

Because of its popularity, Republicans have never been able to abolish the program ̶ but they keep trying. In 2005, GW Bush wanted to privatize SS (putting seniors at risk by putting their money in the stock market). That led to a huge political blowback, and Bush dropped the idea.

Across the years, Trump has consistently promised not to touch Social Security, except now Musk’s DOGE may break Trump’s promise. Musk’s agency almost cut off phone service for people filing SS claims, and stopped only after the WaPo raised a stink:

“The Social Security Administration…abandoned plans it was considering to end phone service for millions of Americans filing retirement and disability claims after The Washington Post reported that Elon Musk’s US DOGE Service team was weighing the change to root out alleged fraud…The shift would have directed elderly and disabled people to rely on the internet and in-person field offices to process their claims, curtailing a service that 73 million Americans have relied on for decades to access earned government benefits.

However, Social Security and White House officials said the administration will still move ahead with another far more limited element of the original proposal: Customers will no longer be able to change a direct deposit routing number or other bank information by phone.”

The phone service change may not be happening, but Elon is still gunning for Social Security. This is from March 11:

“Elon Musk pushed debunked theories about Social Security on Monday while describing federal benefit programs as rife with fraud, suggesting they will be a primary target in his crusade to reduce government spending….“Most of the federal spending is entitlements,” Musk told the Fox Business Network. “That’s the big one to eliminate.’”

Musk also called Social Security “the biggest Ponzi scheme of all time”, and has promised to cut the Social Security Administration’s workforce by 12%.

DOGE can’t actually abolish Social Security. But it can seriously damage it to the extent that the agency wouldn’t be able to deliver checks on time, wouldn’t be able to help recipients make needed changes, and won’t be able to effectively register new retirees. And once the agency can no longer function effectively, Congressional Republicans will step in to “reform” it. They will do that by substantially cutting benefits, or privatizing the program. Probably the latter, because that will benefit moguls on Wall Street.

In February, Trump reassured the nation that:

“Social Security will not be touched, it will only be strengthened, and an unnamed White House official told NBC that “Musk’s personal opinions about Social Security have no impact on Trump’s policies.”

Is Trump really willing to mess with Social Security payments? And if not, why is his administration acting like it’s getting ready to do that? What would be the political upside to broadcasting that you’re going to screw with America’s favorite entitlement program, and then not actually doing it?

What is clear is that the Trump administration doesn’t particularly seem like they’re governing with an eye to future elections. Old people vote in large numbers, and if you stop them from getting the checks they need to live — or even threaten to do so — you’re putting yourself in grave electoral danger.

And if Trump’s team isn’t worried about future elections…well, that’s even more deeply concerning.

The DOGE effort is the newest attempt by Republicans to attack Social Security. It gives the GOP some cover by letting DOGE do the dirty work. But only SS has the huge budget that Republicans want to get their hands on.

This is the latest effort by Republicans to get rid of Social Security (and Medicare and Medicaid). By gutting these funds, they will have the money for huge giveaways to the rich (and especially the super-rich).

They have always been the party of and for the rich. They really don’t care about the needs of the poor, the working class, or the middle class.

This attack on Social Security proves that.

Implications Of Brian Thompson’s Assassination

The Daily Escape:

Bear Trap Gap, NC – November 2024 photo by Mandy Gallimore

“If you want things to stay as they are, things will have to change”– Il Gattopardo

If you’re on social media, a concerning number of people seem to openly support gunning down a “corporate rich guy” in broad daylight. Brian Thompson, the CEO of United Healthcare was murdered in what appears to be a targeted killing. And the comments about it on the internet underscore there is kind of a depravity circulating in too many Americans.

This, after two attempts to assassinate Trump during the campaign. Which stirred up similar, although more muted reaction on social media.

The killer left anti-insurance messages on the shell casings of the bullets that killed Thompson, using the words: “deny,” “defend” and “depose”. Those words are references to the ways insurance companies avoid paying for care.

An excellent summary by Bob Lefsetz:

“And we thought the revolution would arrive as a result of the red/blue divide. When in truth, it’s all about income inequality. Please don’t criticize me for having sympathy for those screwed by the insurance companies. If I were in charge, there’d be no guns at all, or a law akin to that in Australia. But one would posit that the shooter is pissed because the insurance company didn’t pay.

But that’s what insurance companies do, not pay. That’s their business model. Even assuming you can see the doctor of your choice, which is rare.”

Yes, not pay whenever possible is what insurance companies do.

To be clear, this is why advanced societies have tended to create broad publicly funded social safety net programs. It’s not because their bleeding heart politicians love giving away money. It’s because making sure people have humane standards of living keeps them from becoming desperate and doing stuff like this. During the Great Depression, capitalists agreed—grudgingly—to the New Deal because they were afraid otherwise the country would “go Communist”.

We have no clarity on the actual motive behind the killing, but all signs point to it being linked to dissatisfaction with our health insurance system. And we need to remember that Brian Thompson was a human being with a family. So calling his death justified is despicable.

It’s the health insurance payment system and healthcare pricing for goods and services that is despicable.

From STAT:

“The public’s dissatisfaction has never been higher. Recent polling data show the health care system is as unpopular now as it was before the Affordable Care Act went into effect 15 years ago — a time when insurers could decline to cover people if they had any number of pre-existing health conditions and nearly 49 million people lacked insurance. A survey from Gallup released Friday reveals that “Americans’ positive rating of the quality of health care in the U.S. is now at its lowest point” since 2001.”

“Roughly 25 million Americans remain uninsured. Tens of millions of others have health insurance but can’t afford their deductibles, coinsurance, or copays due to the high prices of tests, surgeries, and prescription drugs….These barriers aren’t just a nuisance — they can have real effects on patients’ health.”

The KFF foundation reports that 100 million Americans have medical debt, and its highly doubtful that they can afford to pay it down. Even people with platinum forms of coverage face long waits coordinating the complex and uncoordinated delivery of their health care, as Wrongo knows firsthand.

After getting care, patients are inundated with medical bills they don’t understand — perplexed why their insurer isn’t advocating on their behalf, and fearful that hospitals and other providers will send them to collections or sue them.

It’s all part of a health care system that is projected to spend $5 trillion this year, eating further into workers’ wages. Those who feel most aggrieved often are the sickest. Most people are generally satisfied with their health insurance. However, people who have more health conditions and therefore need to get care more frequently don’t like their coverage nearly as much as healthier people, according to polling from KFF.

So, the more they know you, the more they dislike you. People are feeling a sense of helplessness in trying to address this mammoth commercial insurance industry that’s putting restraints on people’s ability to get care. When you feel that sense of helplessness is when you end up having situations like this. People don’t really know what else to do.

The murder of the CEO and the public’s reaction reveals that:

Americans are blindingly angry, and not just with the healthcare system.
Due process is no longer trusted. Have enough money and you’re likely to buy your way out of a bad situation. The FTC says Twitter must comply with the consent decree and Elon Musk just doesn’t do it. The government is no match for the rich. Money can insulate you from so much.
Vigilante justice has become a solution in some places because of the lack of due process.

We’re entering a period that is very similar to the Gilded Age of the 1880s and the 1930s.

Our social contract is in free fall. And the Trump administration’s proposed cabinet officers will make it worse.

What will happen in a country with 400 million guns and 320 million people? Things may go downhill quickly. Never forget, most change is fomented by individuals. A fruit vendor in Tunisia ignited the Arab Spring.

Is this the start of change in America? One person gunning down an insurance company executive?

Wrongo doesn’t condone the shooting. At this point we have no motive. But what we do know makes you think about our broken health care system and the overcompensation of the people who run it. They’re getting rich on our illnesses. They take our money and then, don’t pay.

Ain’t that America.

Where 2024 Went Wrong

The Daily Escape:

If you’re planning on being a part of the resistance, you need to start from having a few ideas about what went wrong and why in 2024.

Plenty of people have ideas about what we should be doing next. Rachael Bitecofer’s latest “Identity Politics and Microtargeting Killed The Party’s Brand” raises a great concern expressed by many Democrats, that the Party no longer identifies with the working class, and the working class isn’t who it used to be. It’s much bigger and much more diverse.

Bitecofer’s big idea is that the culture wars were the prime driver of the 2024 election. The culture wars were created after the era of Individual Freedom that arose in the 1950s and 1960s. The Democratic Party had morphed into an alliance, merging a Party of liberal Whites and racist White Southerners into one big coalition that by staying together, dominated Congress for decades.

By the 1960s, the activism of MLK. Jr and thousands of other civil rights activists forced the Democratic Party to choose: Either preserve their large coalition or end segregation. After the assassination of JFK, LBJ sided with civil rights for Blacks signing both the Civil Rights Act of 1964 and the Voting Rights Acts of 1965. In doing so, this set off the realignment that would lead to total domination of the South by the Republican Party a few decades later.

Nixon’s Southern Strategy recognized that white Southern conservatives were there for the taking, and they took them. Meanwhile, the Democrats began to absorb liberal Republicans, predominantly in the North East and West Coast. Ideological liberals became Democrats and ideological conservatives became Republicans. And the today’s 270 Electoral College map dominated by the handful of swing states became the norm for success in American presidential elections.

From Bitecofer:

“In building their new multi-racial coalition Democrats…turned to something called identity politics. Identity politics is…based on a particular identity, such as ethnicity, race, nationality, religion, denomination, gender, sexual orientation, social background, caste, and social class….as the new Democratic Party became a multi-racial coalition hyper-focused on gaining civil rights for marginalized groups…”

This chart represents the outcome of Democrats following a microtargeting strategy for the past 30+ years:

This one graph tells us exactly why Democrats lost. First and foremost, it tells us that the Democratic Party is a brand “that stands up for marginalized groups.”

Let’s focus on the time window on the graph. As you can see, the Democrats used to have a massive advantage with the working class which began to erode around the time of the Reagan Revolution and round two of Nixon’s Southern strategy. Please keep in mind, the erosion also corresponds with the diversification of America both in terms of ethnicity and gender and reflects in part the backlash to civil rights.

From Bitecofer about the working class:

“Donald Trump just accomplished the same thing by focusing most of his ads on scary trans people and the data don’t lie, millions of ads repeating the sex changes for prisoners broke through.”

More: (emphasis by Wrongo)

“Now, that’s a great brand to have if you’re…an ideological liberal who cares deeply about the rights of the powerless!! The issue is just about a quarter of the electorate is liberal and psychologically predisposed to care about marginalized groups. The rest of the electorate doesn’t get the warm fuzzies we get from marginalized groups, because most humans are hardwired to prefer in groups over out groups and Republican strategists have exploited this expertly.”

Bitecofer argues that what matters for marginalized groups is policy, and that policy only comes from power. The way to represent marginalized groups is by wielding the power to represent them in majorities, not by identity politics in campaigns.

Bitecofer’s central point is that working class voters no longer primarily vote on economics. They did at one time, but those days were done as soon as cultural issues emerged and segregation was ended by the federal government. Here’s how the working class has grown and diversified over the last few decades:

Can the GOP, a Party financed by industry and bankers, permanently “represent the working class”? Maybe so, if the GOP can keep them distracted enough from the economic warfare they are conducting against them by leveraging grievance politics as a backlash to the Dem’s identity politics strategy.

Bitecofer closes with this:

“If we are lucky enough to get another election in this country, the messaging must focus on telling America the story of what happened to all their money, their rural communities, their paychecks, and their health under Republican Party governance.”

A prime part of the coming resistance is to return the GOP Party back to being at war with working America.

Cartoons of the Week Plus Commentary – October 6, 2024

Cartoons this week were mostly about Vance failing to answer the “Who Won?” question. Here’s one Wrongo liked:

There’s always something in October:

Wrongo wants to update his last column about why Harris needs to speak with more empathy to Gen Z and younger voters. Friend of the Blog John S. left this comment:

“I believe Harris is speaking but perhaps not loud enough or Gen Z isn’t listening. Her plans do include downpayment money for new housing, tax incentives for builders to sell to first time home buyers, 3 million new homes constructed, business startup credits, earned income credits for low wage earners, newborn tax credits, food price regulations, and reduction of medical debt. Maybe you can say it won’t be enough or that some of these things can’t be implemented but nonetheless they are in “the plan”. Perhaps if her message was stronger on social media, as you mentioned in another column, the “Z’ers” would listen.”

He’ s right but Harris like most Dem politicians, isn’t offering sufficient “feel your pain” context to get people to listen. Obama was one of the few Democrats to place policy in a human context, but most of the time, the Democrats are relying on a laundry list of policies that may or may not ever be enacted.

America had good economic news yesterday, but no Republican was willing to cede that to Biden or the Democrats. Sen. Rubio (R-FL) claimed in a post on Twitter/X that the great jobs numbers were “fake” because past months had to be revised (most jobs reports are revised in subsequent months).

It’s true that the economy added jobs. But most were low-income service jobs. Meanwhile, the pathways to the middle class, manufacturing and white collar jobs, actually shrank. The Gen Z and younger workers suspect that the American Dream is fading because middle class jobs are going away, and they’re precisely correct in that intuition.

The GenZ’ers can’t square their lived reality with the commentary that comes from on high, particularly regarding the economy. Over time, they’ve come to distrust institutions. That’s true at a social level—levels of trust have cratered over time. And this is a key reason why this gulf between what young people live, experience, feel, and the skin-deep recitation of the miracle of the “Booming Economy”. It doesn’t reach deeply enough into their lives.

Harris shouldn’t cede any of this ground to Trump. Wrongo quoted Vance during the VP debate:

People are struggling to pay the bills. Times are tough.
The American Dream is fading, and feels unattainable.
We should stop shipping jobs offshore.

And Republicans understand the task at hand is to peel younger voters in swing states away from Harris. FWIW reports that a constellation of Right-wing groups are spending millions online to get their messaging in front of swing state voters. Probably the biggest line of attack being used against Harris has to do with inflation and the state of the economy: (brackets by Wrongo)

“For example, Duty to America is specifically targeting Gen Z and Millennial men in battleground states with ads bemoaning the state of the economy, saying: ‘According to…Harris, the economy is fixed [repaired]…at our age, our parents owned a home, had kids, saved for retirement, and we can barely buy groceries, gas, or pay our rent.’”

“This ad is running across platforms like Facebook, Instagram, and Google, but also on Roku devices and streaming services where young people actually watch TV shows. Duty to America has spent the majority of its ad dollars targeting Michigan, Pennsylvania, Georgia and North Carolina.”

“Similarly, Preserve America is running direct-to-camera video ads on Facebook and Instagram from a trio of white women who are complaining about high inflation and grocery prices, sometimes tying the issue to illegal immigration. You can browse through some of those ads here.”

FWIW adds a chart about ad spending: (note that the red and blue here are 100% pro-Trump spending)

A few other groups have also emphasized economic attacks among younger members of the electorate. One from Our American Century says “Kamala Harris thinks young people are stupid” when it comes to the economy, and Right for America is also running with the “stupid” line.

FWIW notes that Harris is outspending Trump on Facebook and Instagram: Harris spent $8.1 million to Trump’s $1.1 million between September 21 to 28. Meanwhile, political campaigns spent $40.3 million on Google and YouTube ads last week, with Harris and affiliates spent $10.8 million to Trump’s $2.8 million.

Here’s a recap of spending by both campaigns:

The Democrats instead should invest more money where the young people are. They should challenge the Republicans by admitting that things look pretty dire for Gen Z and younger people. That over time, the American Dream’s faded. That times are rough. That people are struggling.

They should use exactly those words like Vance did, because they’re the ones that count. They resonate. You have to hope that the Harris brain trust will match Trump’s initiative by spending some of this money targeting Gen Z and younger voters with empathetic messaging like the Republicans are already doing.

The policy details can come once they’re listening.

Crime: Perception vs. Reality

The Daily Escape:

Saguaros and poppies, Catalina SP, Tucson, AZ – March 2024 photo by Paul J Van Helden

From Jeff Asher, a crime analyst based in New Orleans:

“Murder plummeted in the United States in 2023, likely at one of the fastest rates of decline ever recorded. What’s more, every type of Uniform Crime Report Part I crime with the exception of auto theft is likely down a considerable amount this year relative to last year according to newly reported data through September from the FBI.”

We all knew that crime rates skyrocketed between the mid-1960s and the late 1980s. Then they went into a slow 35-year decline. Now, homicide, violent crime, and property crime rates have returned to what they were prior to the latest 20-year increase. This means that if you’re under 55, crime rates have been falling for most of your adult life.

But America perceives that crime rates are high. A Gallup poll released last November found 77% of Americans believed there was more crime in America than the year before. And 63% felt there was either a “very” or “extremely” serious crime problem — the highest in the poll’s history going back to 2000.

Wrongo doesn’t truly believe the polls since Pew revealed that 12% of people under 30 and 24% of Hispanic people who opt into online polls claim they have a license to operate a nuclear submarine, but here’s a chart:

(This is based on Gallup’s annual Crime survey, conducted Oct. 2023)

The question is, why the disconnect? NPR quoted Jeff Asher:

“There’s never been a news story that said, ‘There were no robberies yesterday, nobody really shoplifted at Walgreens….Especially with murder, there’s no doubt that it is falling at [a] really fast pace right now.’”

One theory you might have is that since the Covid pandemic caused social disorder, dysfunction in our government, and all sorts of problems, including that spike in crime, you might expect crime to remain high even after the country went back to work and school.

Another theory is that when people say “crime“, they don’t exclusively mean “people breaking the law“. Instead maybe they mean “behavior which upsets me“. For example, when the Philadelphia DA tries to focus on eliminating bail for simple drug arrests, while opposing police corruption, he’s said to be soft on crime. Then Republicans (and Trump) tried to impeach him, saying that they’re being “tough on crime” and crime remains a politicized news story.

Another theory is that the narrative around homeless people drives perception of crime. The idea that “homeless people have been violent“, or simply that “homeless people live near me and I don’t want any shelters built nearby,” strengthens the perception that crime is everywhere. For people who feel that way, the statement “Crime is a big problem” is equivalent to the statement “I always see homeless people when I go into town”.

This may explain why crime rates “near me” are perceived to be substantially lower than how national crime is perceived. Few of the homeless are encamped in their suburbs.

If you look back on the 1980s, there were a large number of visible homeless people in Washington DC, and Reagan dismissed them as “homeless by choice“. Today, there are plenty of homeless people on the streets in every city. It’s important to remember that when St. Reagan was governor of California, he released mental patients onto the streets.

This was part of “deinstitutionalization”: The emptying of state psychiatric hospitals that began in the 1950s. As hospitals were shut down, patients were discharged with no place to get psychiatric care. They ended up on the streets, some eventually committing crimes that got them arrested.

In 1963, JFK signed the Mental Retardation Facilities and Community Health Centers Construction Act. (It turned out to be the last bill Kennedy would sign.) The law was designed to replace “custodial mental institutions” with community mental health centers, thus allowing patients to live—and get psychiatric care—in their communities.

However, a sufficient number of community mental health centers were never built.

In 1965, Medicaid accelerated the shift from inpatient to outpatient care: One key part of the Medicaid legislation stipulated that the federal government would not pay for inpatient care in psychiatric hospitals. This further pushed states to move patients out of their state facilities.

That’s when homeless people began to be visible to most of us.

Later, in the 1970s, Nixon declared a war on drugs, setting the stage for tough-on-crime policies. Laws, like mandatory minimum sentences for possession and other drug-related crimes, disproportionately affected people of color and pushed incarceration rates to record levels. Between 1972 and 2009, America’s prison population grew by 700%.

The homeless get blamed for the bad behavior of a small minority of their group. But since an awful lot of the dysfunctional are homeless because their families or friends couldn’t cope with their behavior, it’s logical that the general public would also find their behavior a problem.

And it’s more than just the homeless. In Wrongo’s small Connecticut town, long-time residents resent people who have moved in recently. They are appalled by the occasional drug arrest or stolen car that was left unlocked in a driveway.

This scales up to people in our town bellowing about CHICAGO!!!! Or LA or Portland, OR. They see the far enemy as young Black/Hispanic men in certain zip codes destroying each other. And just possibly turning their attention to our tight, white community here in the Litchfield Hills.

It’s a good thing that overall crime and especially violent crime rates are much lower than they were 30 years ago. But we’re still faced with the overriding perception that people see their families at greater risk now.

This has spilled over into how parents treat their children. NO parent today would allow their kids to get on a bike and roam miles from home. Everything is monitored. If you ask why, the near-universal response is: “It just isn’t safe out there. Not like it used to be.”

Used to be? Most kids were tooling around on their bikes Goonies-style during the 1980s, when crime nationwide was at its peak.

People just seem hell bent on seeing the world as a massively scary place, one filled with predators.

There are major political implications, when data aren’t facts, when truths are lies.

State Of The Union Speech Mop-Up

The Daily Escape:

Morrow Bay, CA – March 2024 photo by Slocoastpix

(This is most likely the only column this week, as Wrongo is working on an outside project.)

Today let’s cover a few disparate topics that are about clean-up from the Biden State of the Union address. The Hollywood Reporter reports on Biden’s viewership ratings with this headline:

“The 2024 State of the Union address drew a larger TV audience than the 2023 address.”

Biden’s speech averaged 32.23 million viewers across 14 broadcast and cable outlets, almost 5 million more viewers than the 2023 State of the Union. Viewership rose on all of the largest outlets by about 18%. More:

“The vast majority of viewers — 28.47 million — watched the State of the Union on the big four broadcast networks (ABC, CBS, Fox and NBC) and the three largest cable news outlets (CNN, Fox News and MSNBC). All seven outlets drew a bigger audience than they did for last year’s address.”

So much for viewer apathy. One big surprise to Wrongo is that Fox News led with 5.84 million viewers, beating out the 5.24 million for ABC, which had the largest viewership among the broadcast networks. NBC’s 4.47 million viewers finished third, followed by MSNBC at 4.43 million, (its largest audience ever for a State of the Union).

Why would Fox have more viewers when their network demographics skew far more to the Right than the others? Did they tune in hoping to see a Biden senior moment?

Second, Sen. Katie Britt (R-Jesus) lied in her rebuttal for the GOP.

Third, Umir Haque’s newsletter, the issue has some good insights that Wrongo hasn’t seen elsewhere. About leadership: (emphasis, parenthesis and brackets by Wrongo)

“We recently discussed the difference between occupying a leadership position—and being accepted as a leader. This Biden’s been hid[den] away by the Democratic machine….Those roaring, electrified [people attending the speech)? Those surging positivity ratings? That’s…going from merely occupying the position, to being accepted as a leader.”

“Biden quietly proposed something very much like a new America. A new American social contract. The ideas came so fast and furious that they were almost easy to miss, sandwiched between philosophy and persuasion.”

“…most State of the Unions aren’t like that. They’re pretty boring because Presidents tout their accomplishments. They’re backwards looking…sort of performance reviews….This one really was…profoundly different.”

Haque who lives in the UK, says that the ideas Biden put forth, are very popular in Europe:

Taxing billionaires, which is part of a new movement, arising mostly in Europe, to reduce inequality, by having a global tax on the ultra-rich.
Taxing executive compensation on salaries over $1 million by making them no longer tax deductible. This is also linked to recent moves by European nations to make economies more equal again.
Giving home buyers tax credits. This is a first step towards fixing America’s badly broken housing market…..many European nations are trying to fix that through incentives like this.
Lowering drug prices. One of Biden’s most revolutionary policy ideas was to let the government negotiate prices for many more drugs—this is a big deal, because of course Americans are ripped off incredibly badly by their version of “healthcare.” This would bring the US in line with other Western nations.

More: (brackets by Wrongo)

“if you read between the lines….Biden [is] recognizing how badly broken many aspects of the American social contract [are] —healthcare, housing, inequality, salaries, taxes—and how all that adds up to an incredibly precarious life even [if you are] at or above the median [income].”

“Taxing billionaires, limiting salaries, intervening in broken markets, giving people actual support—none of these are ideas we associate in the slightest with…American politics. They’re the stuff of social democracy, and Biden’s setting out a sort of lightweight…social democratic vision. It’s not quite one fully, but what it does…is begin to put America on the path to becoming one, like the rest of the Western world.”

This sets a clear distinction between the Parties in 2024. Democrats since Bill Clinton have not had a clear definition of what they stand for: What do they stand for? What’s their overarching idea? Are they after a just society, and a good life for all Americans?

This theory of the good life, the just society, and how they’re linked now has Biden championing a politics that isn’t simply another version of “life’s about winners and losers”. Haque thinks this is an incredibly important evolution in US politics.

Will Biden’s move leftward bring enough votes to win in November? We have to hope it will. Conservative Republican Peter Wehner in the NYT reminds us that there’s just 34 weeks to the election:

“The next 34 weeks are among the more consequential in the life of this nation. Mr. Trump was a clear danger in 2016; he’s much more of a danger now. The former president is more vengeful, more bitter and more unstable than he was, which is saying something…..He’s already shown he’ll overturn an election, support a violent insurrection and even allow his vice president to be hanged. There’s nothing he won’t do. It’s up to the rest of us to keep him from doing it.”

It’s time on this Monday morning, to wake up America! IF he gets to run the country, Trump will act like a juvenile delinquent, flipping over as many of the cafeteria lunch tables as he can. In a nutshell, that’s his MAGA platform. And like the Zombie Apocalypse come to life, sooner or later all Republicans who hold public office will endorse him.

The rest of us have to put aside our ideological differences and support Biden. To help you wake up watch and listen to The Clash perform “(White Man) in Hammersmith Palais” from their 1979 album “The Clash”. This is far from their best, but it’s on point for today’s column:

This song is from a time when the youth began to realize that sticking together was actually a better idea than allowing themselves to be divided. That has to come back.

Sample Lyric:

White youth, black youth
Better find another solution
Why not phone up Robin Hood
And ask him for some wealth distribution

Wake Up To Monday’s Hot Links

The Daily Escape:

Cypress trees, Lake Verritt, LA – November 2023 photo by Rick Berk Photography. Note the egret in the background.

For today’s Wake Up Call, we return to a staple of yesteryear, some hot links that caught Wrongo’s eye over the past few days.

Wrongo isn’t happy with how the Ukraine War has slipped from the consciousness of America’s media and thereby, from our view. Saturday’s WSJ offered an intriguing idea with its column, “Does the West Have a Double Standard for Ukraine and Gaza?” (free link). The article makes two excellent points. First, how these two wars have divided the world. Here’s a view of the division:

From the WSJ: (emphasis by Wrongo)

“Outrage and political mobilization have become subordinated to geopolitical allegiances—a selective empathy that often treats ordinary Ukrainians, Palestinians and Israelis as pawns in a larger ideological battle within Western societies and between the West and rivals such as China and Russia.”

Second, the article concludes by saying that the main difference between the two wars is that the Israeli-Palestinian conflict, with all its complexities, lacks the moral clarity of the Ukrainian resistance to Russia. They quote British lawmaker Alex Sobel:

“There is no moral justification for the Russian invasion. Zero. It’s just about Russian imperialism….But in Israel and Palestine, it’s about the fact that there are two peoples on a very small amount of land, and political and military elites on both sides are unwilling to settle for what’s on offer.”

Yes, America may have the moral high ground in both cases, and views can differ on how both wars are being waged. But as the article says in its second paragraph:

“The Russian invasion of Ukraine in February 2022 was unprovoked, while Israel sent troops into Gaza because of a mass slaughter of Israeli civilians…”.

Make of the article what you will, but it’s important to think through why you (like Biden) think both wars are morally equivalent.

Link #2 is apropos of the COP28 conference now underway in Dubai. Grist Magazine has an article: “Where could millions of EV batteries retire? Solar farms.” As solar energy expands, it’s becoming more common to use batteries to store the power as it’s generated and transmit it through the grid later. One new idea is to source that battery back up at least in part from used electric vehicle batteries:

“Electric vehicle batteries are typically replaced when they reach 70 to 80% of their capacity, largely because the range they provide at that point begins to dwindle. Almost all of the critical materials inside them, including lithium, nickel, and cobalt, are reusable. A growing domestic recycling industry, supported by billions of dollars in loans from the Energy Department and incentives in the Inflation Reduction Act, is being built to prepare for what will one day be tens of millions of retired EV battery packs.”

“Before they are disassembled…studies show that around three quarters of decommissioned packs are suitable for a second life as stationary storage.”

Apparently there are already at least 3 gigawatt-hours of decommissioned EV battery packs sitting around in the US that could be deployed, and that the volume of them being removed from cars is doubling every two years.

Link #3 also shows the impact of the Inflation Reduction Act. Wolf Richter writes that:

“In October, $18.5 billion were plowed into construction of manufacturing plants in the US ($246 billion annualized), up by 73% from a year ago, by 136% from two years ago, and by 166% from October 2019.”

“The US is the second largest manufacturing country by output, behind China and has a greater share of global production than the next three countries combined, Germany, Japan, and India.”

All of this construction spending will take time to turn into production. When these new plants are up and running and producing at scale, manufacturing’s share of US GDP will rise. And much of the new construction is happening in fly-over America, which can use the help.

Finding factory workers in sufficient numbers to support the new capacity will be a key. America has energy in abundance and has robotic manufacturing. So pulling production from overseas with fewer workers needed will be a giant plus for the US.

Link #4 is a downer. Civic Science says in this week’s 3 things to know column, that “Nearly 3 in 10 Americans say they have had to forgo seeing a doctor in the past year due to costs.” Here’s their chart”:

Civic Science says that 12% of US adults have had to miss or make a late payment on medical bills in the last 90 days, a two percentage point increase over September 2022.

A far larger percentage of Americans – 27% of the general population and about 30% of respondents under 55 years old or with an annual household income under $100,000 – report they could not go to a doctor in the past 12 months because they could not afford the cost. Gen Z adults and households making between $25K-$50K are more likely to have held off seeing a doctor due to cost (34% and 31% respectively).

We all know that medical costs have continued to rise and that medical debt is the leading cause of personal bankruptcy in the US. If Congress was really interested in helping provide for the general welfare, they would deal with this out of control problem.

Time to wake up America! There’s plenty going on that isn’t getting visibility in the mainstream media or on social media. You have to cast your net widely to be on top of the good and bad happening in the US.

To help you wake up, we turn to Shane MacGowan, frontman for the Irish group the Pogues who died last week. He left behind a body of work that merged traditional Irish music and punk rock. He wrote many songs that could easily be mistaken for traditional Irish tunes including this one, which was also used as the music for wakes by the Baltimore Police Department in the great, great HBO series, “The Wire“. Here’s “The Body Of An American” from their 1986 album, “Poguetry in Motion”:

RIP Shane.

Suicides Hit A Record

The Daily Escape:

San Juan river cuts through monocline ridge, UT – November 2023 drone photo by Hilary Bralove. It is believed by many that the Navajo people based their rug and basket weaving patterns on what they saw in these geologic formations.

The temporary truce in the Israel/Hamas war is over. Reprobate Congresscritter George Santos (R-NY) was ousted from the House, and former Supreme Court Justice Sandra Day O’Connor died. She was the swing vote in the Bush v. Gore case that stopped the Florida recount and handed the 2000 presidential election to GW Bush. This was the first time that Republicans realized that if they controlled the Court, they could fix elections.

But on a pretty Saturday in southern New England, let’s turn our attention to a news article that hasn’t gotten much interest. From the issue, we learn that:

“More people died from suicide in the United States last year than any other year on record, dating to at least 1941, according to provisional data from the US Centers for Disease Control and Prevention.”

They quote the Kaiser Family Foundation who measure the suicide deaths per 100,000 of population: (brackets by Wrongo)

“Suicide deaths are increasing fastest among people of color, younger individuals, and people who live in rural areas. Between 2011 and 2021, suicide death rates increased substantially among people of color, with the highest increase among AIAN people [American Indian and Alaska Native people] (70% increase, from 16.5 to 28.1 per 100,000), followed by Black (58% increase, from 5.5 to 8.7 per 100,000), and Hispanic (39% increase, 5.7 to 7.9 per 100,000) people….The suicide death rate also increased in adolescents (48% increase, from 4.4 to 6.5 per 100,000) and young adults (39% increase, from 13.0 to 18.1 per 100,000) between 2011 and 2021….”

Suicide rates are up by nearly 50% in adolescents over the last decade, while suicides among Black people are up by almost 60%. These aren’t trends, they’re explosive changes. What we’re seeing in the data is our world in chaos.

Wrongo often says that American life has fallen apart over the past 30 years. People struggle to pay their bills; many do that by accumulating debt. For some, that struggle turns them to embrace demagogues, people who scapegoat innocents, or promise to take their rights away, robbing them of their personhood.

When we see suicide rising particularly among groups who struggle the most for their existence, it says that something has gone terribly wrong with the American model. And in the suicide statistics, there is confirmation that our nearly Darwinian model is what’s wrong. Adolescents and minorities aren’t committing suicide at these rates because they can’t get therapy, but because they feel as if there’s little or no future for them. Sadly, they are told by many pundits and politicians that everything’s fine.

Perhaps this partially explains why Biden seems to be doing so badly in polls of young voters.

As one of the commenters at the issue says:

“It shouldn’t be ‘The pursuit of happiness’ it should be ‘The amelioration of misery’. Being free to pursue happiness when there isn’t enough…left to go around doesn’t do ‘We the people’ any good.”

So, it’s time to forget about Santos, Kissinger and Hamas for a few minutes. Tune in to your Saturday Soother, where we try to get distance from the news for long enough to be able to handle whatever’s coming next.

Here on the Fields of Wrong, we’ve completed our fall clean-up and now it’s on to putting up the deer fencing that protects the bushes around the Mansion. The tree is up and illuminated, and the first members of our family are coming to see it today.

While it’s a beautiful day in the northeast, it makes sense for you to stay indoors for now. Start by brewing up a mug of “The Antidote” coffee ($19.50/12oz.) from Apocalypse Coffee in Melbourne, FL. Now grab a comfy chair by a south facing window and watch and listen to Schubert’s “Serenade”. Written two years before his death, it’s a perfect example of the melancholic music Schubert was so well known for:

Democrats Need New Messaging

The Daily Escape:

Cholla Cactus at sunrise, Joshua Tree NP – November 2023 photo by Michelle Strong

Yesterday’s column described how confusing current polling data is with less than a year to go before the 2024 presidential election. We can easily overdose on polls, but in general, they seem to be pointing toward a very difficult re-election for Biden.

At the risk of contributing to the OD, here’s another example of terrible poll for Biden. It comes from Democratic stalwarts Democracy Corps, run by James Carville and Stanley Greenberg:

“President Biden trails Donald Trump by 5 points in the battleground states and loses at least another point when we include the independent candidates who get 17% of the vote. Biden is trying to win these states where three quarters believe the country is on the wrong track and 48% say, “I will never vote for Biden.”

What to make of all this? Wrongo thinks it’s time to take a different approach to the Democrat’s messaging. Let’s start with a quick look at the NYT’s David Leonhardt’s new book, “Ours Was the Shining Future”. Leonhardt’s most striking contention is based on a study of census and income tax data by the Harvard economist Raj Chetty: Where once the great majority of Americans could hope to earn more than their parents, now only half are likely to. From The Atlantic:

“Of Americans born in 1940, 92% went on to earn more than their parents; among those born in 1980, just 50% did. Over the course of a few decades, the chances of achieving the American dream went from a near-guarantee to a coin flip.”

As we said yesterday, the American Dream is fading. Leonhardt says that the Democrats have largely abandoned fighting for basic economic improvements for the working class. Some of the defining progressive triumphs of the 20th century, from labor victories by unions and Social Security under FDR to the Great Society programs of LBJ, were milestones in securing a voting majority. More from The Atlantic:

“Ronald Reagan took office promising to restore growth by paring back government, slashing taxes on the rich and corporations…gutting business regulations and antitrust enforcement. The idea…was that a rising tide would lift all boats. Instead, inequality soared while living standards stagnated and life expectancy fell behind…peer countries.”

Today, a child born in Norway or the UK has a far better chance of out-earning their parents than one born in the US. More context from The Atlantic: (emphasis by Wrongo)

“From the 1930s until the late ’60s, Democrats dominated national politics. They used their power to pass…progressive legislation that transformed the American economy. But their coalition, which included southern Dixiecrats as well as northern liberals, fractured after…Johnson signed the Civil Rights Act of 1964 and the Voting Rights Act of 1965. Richard Nixon’s “southern strategy” exploited that rift and changed the electoral map. Since then, no Democratic presidential candidate has won a majority of the white vote.”

The Atlantic makes another great point: (emphasis by Wrongo)

“The civil-rights revolution also changed white Americans’ economic attitudes. In 1956, 65% of white people said they believed the government ought to guarantee a job to anyone who wanted one and to provide a minimum standard of living. By 1964, that number had sunk to 35%.”

America’s mid-century economy could have created growth and equality, but racial suppression and racial progress led to where we remain today.

Leonhardt argues that what Thomas Piketty called the “Brahmin left” must stop demonizing working-class people who do not share its views on cultural issues such as abortion, immigration, affirmative action and patriotism. From Leonhardt:

“A less self-righteous and more tolerant left could build what successfully increased access to the American Dream in the past: a broad grass-roots movement focused on core economic issues such as strengthening unions, improving wages and working conditions, raising corporate taxes, and decreasing corporate concentration.”

Can the Dems adapt both their priorities and messaging to meet people where they are today?

The priorities must change first. What would it take to establish the right priorities for the future? Stripping away the wedge issues that confuse and divide us, America’s priorities should be Health, Education, Retirement and Environment (“HERE”). It’s an acronym that sells itself: “Vote Here”.

(hat tip to friend of the blog, Rene S. for the HERE concept.)

Wrongo hears from young family members and others that all of the HERE elements are causing very real concerns. Affordable health care coverage still falls short. Regarding education, college costs barely seem to be worth shouldering the huge debt burdens that come with it.

Most young people think that they have no real way to save for retirement early in their careers when there’s the most bang for the buck. They also feel that Social Security won’t be there for them. From the NYT:

“In a Nationwide Retirement Institute survey, 45% of adults younger than 27 said they didn’t believe they would receive any money from the program.”

Today, only about 10% of Americans working in the private sector participate in a defined-benefit pension plan, while roughly 50% contribute to 401(k)-type, defined-contribution plans.

Finally, people today feel that their elders have created an existential environmental threat that will be tossed into their laps. A problem for which there may not be a solution.

As Leonhardt argues, these HERE problems should have always been priorities for Democrats. But for decades, the Party hasn’t been willing to pay today’s political price for a long term gain in voter loyalty. That is, until Biden started working on them in 2020.

But every media outlet continues to harp on inflation and the national debt. Much of what would be helpful in creating a HERE focus as a priority for Democrats depends at least somewhat on government spending. No one can argue that our national debt is high. It is arguable whether it can safely go higher or if it must be reigned in at current levels.

To help you think about that, we collected $4.5 trillion in taxes in 2022, down half a $trillion vs. what we collected in 2021. Estimates are that the Trump tax cuts cost about $350 billion in lost revenue/year.

Looking at tax collections as a percentage of GDP, it’s less than 17% in the US, well below our historical average of 19.5%. There are arguments to keep taxes low, but if you compare the US percentage to other nations, Germany has a ratio of 24%, while the UK’s is 27% and Australia’s is 30%.

If we raised our tax revenue to 24% of GDP, which is where Germany is now, we would eliminate the US deficit.

There’s a great deal of tension in the electorate between perception and reality. And it’s not caused by partisanship: Democrats and independents are also exhibiting a disconnect, too.

Democrats have to return to being the party of FDR and LBJ. They need to adopt the HERE priorities and build programs around them.

How Can America Handle The Costs Of Elder Care?

The Daily Escape:

The start of US Highway 6, outside of Bishop, CA – September 2023 photo by Steve Wolfe

(There will be no Saturday Soother this week. Wrongo is on the road.)

Millions of older Americans from the Silent Generation and the Baby Boomers are facing a dilemma as they “age in place.” They must figure out how to pay for increasingly complex medical care. The NYT quotes Richard W. Johnson, director of the program on retirement policy at the Urban Institute:

“People are exposed to the possibility of depleting almost all their wealth….”

The prospect of dying broke is an imminent threat for the Boomers. About 10,000 of them turn 65 every day between now and 2030. They’re expecting to live into their 80s and 90s at the same time as the price tag for long-term care (LTC) is exploding. Currently LTC expense is outpacing inflation and approaching a half-trillion dollars a year, according to federal researchers.

By 2050, the population of Americans 65 and older is projected to increase by more than 50% to 86 million. The number of people 85 or older will nearly triple to 19 million. The Times has a chart of how many of those who need long-term care will die broke:

Some older Americans have prepared for this possible future by purchasing LTC insurance back when it was still affordable. Since then they’ve paid the monthly premiums, even as those premiums continued to rise. But this isn’t the norm. Many adults have no plan at all or assume that Medicare, which kicks in at age 65, will cover their health costs. But Medicare doesn’t cover the kind of long-term daily care, whether in the home or in a full-time nursing facility, that millions of elderly Americans require.

For that, you either pay out-of-pocket or you spend down your assets until you have less than $2,000 in assets in order to qualify for Medicaid. Remember that Medicaid provides health care, including home health care, to more than 80 million low-income Americans.

And even if you qualify, the waiting list for home care assistance for those on Medicaid tops 800,000 people and has an average wait time of more than three years.

Here is a snapshot of how long-term care is paid for in the US:

Governments provide 71.4% of the total. The largest non-government source is people who pay out-of-pocket, and private insurance is becoming increasingly expensive. More from the NYT:

“The boomer generation is jogging and cycling into retirement, equipped with hip and knee replacements that have slowed their aging. And they are loath to enter the institutional setting of a nursing home. But they face major expenses for the in-between years: falling along a spectrum between good health and needing round-the-clock care in a nursing home.”

That has led them to enter assisted-living centers run by for-profit companies and private equity funds. The NYT says that about 850,000 people aged 65 or older now live in these facilities and when in them, they are largely ineligible for federal funds. Some facilities provide only basics like help getting dressed and taking medication while others offer luxury amenities like day trips, gourmet meals, and spas.

In either case, the bills can be staggering. More:

“Half of the nation’s assisted-living facilities cost at least $54,000 a year, according to Genworth, a long-term care insurer. That rises substantially in many metropolitan areas with lofty real estate prices. Specialized settings, like locked memory care units for those with dementia, can cost twice as much.”

Home care is costly, too. According to Genworth, agencies charge about $27 an hour for a home health aide. Hiring someone who spends six or seven hours a day cleaning and helping an older person get out of bed or take medications can add up to $60,000 a year.

It’s worse for people with dementia because they need more services. The number who are developing dementia has soared, as have their needs. Five million to seven million Americans over age 65 have dementia, and that’s expected to grow to nearly 12 million by 2040.

The financial threat posed by dementia also weighs heavily on adult children who in many cases become guardians of aged parents. The Times included this chart:

The reality is that families go broke either caring for, or finding care for their loved ones. The alternative: Women in the family give up their lives and jobs to care for their family members instead, which worsens the gender wage gap.

The NYT article makes it clear that older Americans receive far less government support than their peers in other countries. The “why” question is easily answered: It’s a combination of the concerted effort for any public support to be demonized as “welfare”. It’s also partly the result of our failed experiment with long term care insurance. The politicians’ idea was that “the market” would take care of it, so government help for retirees could be limited to Medicaid-paid nursing homes.

But, the LTC insurance industry has largely imploded. Insurers had little experience with the product and grossly overestimated the lapse rates. If a policyholder stops paying, the insurer gets to keep the money and use it to provide services to everyone remaining in the pool. The surprise was that very few people stopped paying. A second miscalculation was that people who held these policies were living longer than forecasted. Longer life equaled higher and larger payouts (insurers also benefit when customers die before they’ve used up all the policy benefits).

A final factor is the rising levels of dementia described above.

And since demand for support outside of family members exceeds the supply of beds, nursing homes and assisted living facilities that aren’t terrible want residents to join during the independent living phase (which requires very little care, so those fees subsidize intensive nursing home care). Many of these facilities require a $400,000-$500,000 buy-in, which may not be refundable at death, even if the resident is current on their monthly fees.

There’s got to be a better way. Medicaid can’t be the only option to pay for LTC. Congress needs to establish a better system for middle-class Americans to finance LTC.

How we handle the growing costs of long-term care is just another reminder that we get LITTLE for our tax dollars beyond a giant military. Americans are responsible for their own medical care, childcare, college tuition, retirement and nursing home care. Some or all of which are provided in other rich countries.

This is a loudly ticking time bomb, and the demographics of the problem won’t change for decades. And yet, the Republicans seem bent on making it worse. They’re actively trying to bring about their dream of privatizing Social Security and Medicare.

Wake up America! We have real problems to solve.

The Wrongologist

Geopolitics, Power and Political Economy

Category: Social Safety Net