Category: Tax Policy

The Pant Suit vs The Pant Load© Part II – Funding Infrastructure

Here is an issue on which the presidential candidates of the two parties seem to agree: Funding infrastructure, or at least, funding roads.

Over the past 50 years, US investment in transportation infrastructure as a share of GDP has shrunk by half. China is outspending us four to one and Europe two to one on transportation infrastructure. We have over 100,000 bridges in this country old enough to qualify for Medicare.

The Economist reported that the American Society of Civil Engineers (ASCE) thinks that additional spending of $1.6 trillion is needed by 2020 to bring the quality of the country’s infrastructure up from “poor” to “good”. The Economist indicated that over the past decade, America’s roads have fallen from seventh to fourteenth in the World Economic Forum’s rankings of the quality of infrastructure.

Part of the problem is that the federal tax on gasoline, which provides most of the funding for federal spending on roads, has been 18.4 cents per gallon since 1993, yet over that period, the price of construction materials and the wages of construction workers have both risen by more than 75%.

And Congress hasn’t helped. They have passed 35 stop-gap funding bills to extend transportation funding. However, most transportation projects are not built in just one year, they are complex, multi-year projects.

Last December, Congress passed the “Fixing America’s Surface Transportation Act”, or the FAST Act – which authorized $305 billion over fiscal years 2016 through 2020 for roads, bridges, public transit, and rail. Of that amount only $70 billion represents a new cash infusion for road repairs. Since the total highway need is $740 billion, there is a big funding gap.

Bizarrely, most of the funding for FAST was paid for by raiding the capital of the Federal Reserve. The Congressional Budget Office recently projected that the money in the Highway Trust Fund will run out in six years, and the fund faces a shortfall of $100 billion by 2026.

The funding gap hasn’t escaped the attention of the two presidential candidates. In a rare show of agreement, they are both for infrastructure spending. So, what do they want to do? Unsurprisingly, Trump hasn’t proposed a specific funding level. In his book, “Crippled America: How to Make America Great Again“, Trump says he’s in favor of major public investment in infrastructure repair and expansion.

“If we do what we have to do correctly…we can create the biggest economic boom in this country since the New Deal when our vast infrastructure was first put into place. It’s a no-brainer.”

It’s a “no-brainer” but, with “no amount”.

Hillary Clinton wants to commit $275 billion in public funds over five years, including $25 billion in capital for a new national infrastructure bank to generate another $225 billion in direct loans, loan guarantees and other forms of credit.

Neither candidate is proposing anything that meets the total financing need.

Today, the federal government is responsible only for about 25% of spending on highways and the FAST alternative will be an unreliable future funding source. Federal net investment has been negative since 2011, meaning that Congress is not spending enough to maintain the roads and bridges we have.

By contrast, many states have raised local taxes on gasoline: 12 states have raised gas taxes in the last 18 months. Most states tax by the gallon, and have benefited from the falling oil price, which has boosted sales of gasoline by 3% nationally. In fact, states are beginning to spend more than the federal government as a percentage of GDP:

State Spending to GDP Growth

But, state gas taxes have the same problem as the federal gas tax: They are fixed per gallon, so inflation erodes their value over time. And state budgets can’t grow to the sky. In many cases, states are under pressure to balance their budgets.

As a result, state politicians are burning political capital just standing still. That means the presidential candidates and Congress must find a way to finance more federal infrastructure investment.

Perhaps the gas tax is the wrong way to go. Rising vehicle fuel economy means more miles driven on fewer gallons of gas. With the move to electric cars, Highway Trust Fund revenue will be even lower. And fewer people own cars, but everyone benefits from good roads. People buy food trucked on our roads. They buy clothes, furniture, etc. trucked on our roads. They are carried to hospitals in ambulances on those roads.

The solution is a general road tax that everyone pays.

So, be on the lookout for Trump or Clinton’s rhetoric on infrastructure solutions. This is a yuuge problem that is not going away.

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Careful What You Wish For in The Primaries

After Super Tuesday, Part Three, it is hard to see how anyone but Trump wins the GOP nomination. But given that there are still powerful forces who stand against him being the Republican presidential candidate, the fight will continue, particularly if he doesn’t win enough delegates in the primary season to win on the first ballot.

On the Democratic side, Hillary won big. As of this writing, all of the delegates have not yet been awarded, but so far, Clinton has won the race 326/220 (60%/40%). As primary night wore on, Wrongo heard many Dems saying how happy they would be to run against Donald Trump in the general election.

Dems should be careful what they wish for. It isn’t a completely new phenomenon for Dems to root for a Republican presidential candidate that they perceived to be an easy target, and be wrong.

Think back to 1968. This wasn’t a great year for Dems, considering that the convention was held in Chicago during a year of riots in more than 100 cities following the assassination of Martin Luther King, Jr. and Sen. Robert F. Kennedy. Both Kennedy and Sen. Eugene McCarthy had been running against the eventual Democratic presidential nominee, Vice President Hubert Humphrey. There was violence on the convention floor, outside the convention center and at Grand Park.

With all that going on, it is doubtful that Dems paid much attention to the GOP primary contest, but they were relieved when Nixon was nominated. After all, a Democrat had beaten him in 1960 (JFK) and 1962, when Nixon lost the California gubernatorial election to Pat Brown, and famously said: “You won’t have Dick Nixon to kick around anymore.”

But, in 1968, Nixon won the popular vote by the very narrow margin of 0.7 of a percentage point, while easily winning the Electoral College, 301-191.

In 1976, Dems probably were unhappy to be running against Gerald Ford, who had replaced Nixon when he resigned in 1974, since incumbents have a strong advantage. Ford defeated Ronald Reagan by a narrow margin on the first ballot, but Jimmy Carter won the general, pitching himself as a reformer.

In 1980, Dems probably were happy to run against Ronald Reagan instead of George HW Bush, but they lost in a three-way contest.

By 1988, Dems thought George HW Bush couldn’t possibly win. But the Dems ran Michael Dukakis, and Bush won.

In 2000, Dems were delighted to be running against George W. Bush instead of John McCain, and proceeded to lose to him twice.

In 2008, no GOP candidate had a chance to win unless they repudiated the 8 years of the Bush/Cheney administration. So McCain was no longer feared by Dems.

In 2012, none of the GOP candidates came anywhere near close to being strong enough to deprive Obama of a second term.

Therefore, Democrats who want to run against the person they believe to be the weakest GOP candidate have a poor track record, one that blinds them to the weaknesses of their own candidates during the Democratic primaries.

Trump vs. Clinton is the general election race that the establishment Dems want, but it seems risky to Wrongo. Hillary isn’t an inspiring candidate, rather, she’s probably about on par with John Kerry, another career politician.

OTOH, Trump’s campaign style is almost tailor-made to defeat an elitist associated with practically every economic and political failure of the past 30 years. He now has months to refine how to go after her, and years of material to use.

So be careful what you wish for, Democrats.

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Free Trade’s Double-Edged Sword

The Bernie Sanders win in Michigan is chalked up to his attacks on trade agreements, in particular, the Trans Pacific Partnership that resonated with a broader audience than his attacks on Wall Street. Along the way, Donald Trump has been plowing the same ground, talking about how America is losing jobs to Mexico and Asia.

So the question is, are we seeing a political backlash against trade? Can Sanders or Trump gain sufficient political traction to win with this issue? And can we blame trade for losing jobs to China and elsewhere?

Jared Bernstein in Monday’s New York Times made an excellent point: (emphasis by the Wrongologist)

The economic populism of the presidential campaign has forced the recognition that expanded trade is a double-edged sword. The defense of globalization rests on viewing Americans primarily as consumers, not workers, based on the assumption that we care more about low prices than about low wages.

When you hear politicians speak about free trade, they talk about cheaper products. They sidestep the terrible impact on American jobs, they sidestep the concern that many, many jobs have been lost through free trade agreements. The free trade deals have also exacerbated the loss of union power, which means fewer (and lower paying) jobs, fewer hours, and poorer benefits, including pensions.

The trade topic is obviously a huge driver of Trump’s and Sanders’s appeal. It is a problem for Hillary, since she was for the Trans-Pacific Partnership before she was against it.

Despite being on opposite ends of the political spectrum, the two populists are using the same message: The government, both political parties, and business are working at cross-purposes with the needs of the American people. In a democracy, populism is a warning sign that government has been disconnected from its citizens. Consider that while Americans lost at least 4 million jobs, corporate profits are up, and the 1% has gotten much wealthier.

It’s true that off-shoring is good for the global economy. Chinese people working to make iPads are richer than they were, but it’s not a win-win situation. It’s more of a win-lose, where Chinese workers win relatively big, while American workers lose medium.

Another problem is that workers directly impacted by trade have little power or influence in their firms or the country as a whole. In the US, exports only make up about 13.5% of GDP. But in Sweden, Denmark or Germany, exports are north of 40% percent of GDP. And these countries, with far fewer natural resources, have robust social safety nets in addition to high wages. And as Bernstein says:

The real wage for blue-collar manufacturing workers in the United States is essentially unchanged over the past 35 years, while productivity in the sector is up more than 200%.

Why? Because governments in these other countries stress building high-skill industries that compete based on producing high value-added products, while low-skill industries that compete based on exploiting their employees are discouraged. This is called having an industrial policy, which encourages business to meet government priorities. In America, we are against having industrial policies, because it sounds like socialism.

Bernstein points out that the free trade negotiation process has been captured by investors and corporate interests:

According to the Washington Post, 85% of the members of the outside committees advising the administration on the proposed Trans-Pacific Partnership were from private businesses and trade associations (the rest were from labor unions, NGOs, academics and other levels of government).

And that’s the world we live in. Business is driving most of the decisions that our politicians make, ensuring that whatever is enacted is primarily good for business, and secondarily, if at all, for We, the People.

And in the world we live in, free trade has significantly boosted wages and quality of life for overseas workers and has helped lift millions of Chinese and other Asian citizens out of poverty, while our middle class, a prerequisite for our stable society, has been hollowed out.

Yet, America’s plutocrats and politicians push for even MORE free trade.

The current election cycle may horrify the “political establishment,” of both parties, but it was preordained by their bought-and-paid-for politics.

Americans have a real gripe. They don’t see, or care about the benefits to Chinese and other third world workers that lower or stagnant wages at home help to provide. The Bernie win in Michigan and Trump’s success in the GOP primaries show people are super pissed off.

Our political parties better start coming up with ways to mitigate the trade and wage problem before someone like DonDon actually succeeds in becoming president.

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Hillary’s Under-reported Uphill Slough

Wrongo didn’t watch the Democratic debate because it was up against the series finale of “Downton Abbey”. Some think that the effort to bury the Dem debates in popular TV time slots is a conscious decision by DNC Chair, Debbie Wasserman Schultz, designed to make Bernie Sanders less competitive with Hillary Clinton.

Conscious or not, few people are watching these debates.

One thing that is overstated in the Democratic primary process is Bernie’s uphill slough with African Americans. The accepted pundit logic is that he does so badly with AA’s that he has no chance to win.

What is overlooked in that analysis is that the 20 primaries held so far have split 12-8 in favor of Clinton (based on who won the majority of committed state delegates). Clinton does have a big lead in delegates, 1130 to Sanders’s 499.

So, consider what Bernie has been able to accomplish. In winning 8 states, he’s exposed a Clinton weakness: She doesn’t do well among the most committed white Democrats – the kind of folks who turn out for caucuses in states like Iowa, Minnesota, and Colorado.

And then there is the under-reported uphill slough by Hillary Clinton: That the Sanders campaign is out raising Clinton’s funds. He’s raising his money from ordinary citizens (five million individual donations at this point). And, unlike Clinton, WaPo reports that he does it easily:

Sanders outraised Clinton again in February for the second month in a row, bringing in $42.7 million to her $30 million. On the last day of the month alone, he brought in $6 million online as the campaign used social media to egg on his backers to give, give and give again.

The WaPo also reported that Clinton has had to take two days off the campaign trail to raise money in California for use against Sanders in the primaries. And in a one-week stretch later this month, she is scheduled to make seven fundraising stops in six states — Georgia, Tennessee, Connecticut, Virginia, Washington and California.

Bernie’s funds-raising power has triggered concern among some Clinton allies that it will weaken her — not only because she must spend so much money competing against him, but also because he is criticizing her in ways that could dampen enthusiasm for her in the fall. She may risk donor fatigue when the general election gets under way.

Perhaps one reason why Clinton may risk donor fatigue in the late stages of the election is that she has already tapped many large potential investors. From 2013-15, she earned $21.4 million in speaking fees from 91 organizations. Those funds did not go into her campaign, or into one of her Super PACs. The funds went into her own accounts, making her a member of the 1%.

You can see the listing of the organizations that paid her an average of $235k per speech here.

As Scott Lemieux of LGM said, paying people six figures (plus luxury perks) to deliver rote speeches is one of the more egregious mechanisms by which America’s overcompensated elites reward each other.

More from Scott:

The speaking fees do not constitute quid pro quo bribes, and they will not turn Hillary Clinton into a right-winger. But they’re nonetheless one of the many ways in which the wealthy exert disproportionate influence on the political process.

So, Clinton’s uphill sloughs come first, from needing money to blunt the Sanders insurgency. She needs to take days out of campaigning to pin down more funding by the wealthy to match the funding of everyday people for Sanders. Second, she needs to explain her awesome ability to get paid by US corporations.

This hurts in a few ways: When she talks about inequality and opportunity, she often starts with canned stories of her middle class upbringing – stories which she says prove that she has more in common with the cashier than the CEO. That can’t seem genuine to many low income people.

And when Clinton’s speaking fees come up, she knows that it also rubs lots of people the wrong way. She should say something along the lines of:

This is exactly why I think people like me should pay much higher taxes in this economy, so middle-class people could pay less.

Her tax plans seem to say she believes that, but she has not used her own plan as a direct response to the speaking fees question.

Hill has two different uphill sloughs, both occurring at the same time.

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Monday Wake Up Call – March 7, 2016

Today’s wake-up call is for the Republican Party.

Beginning with Barry Goldwater in 1964, the Republican Party began its deal with the Devil by starting their catering to those on the farthest Right edge of the political spectrum, inviting people who traffic in anger, hatred, religious zealotry, and fearmongering of those not like them, inside the GOP tent.

The election of Ronald Reagan helped bring these zealots some legitimacy, not because he was one of them, but because he had courted them in his first run for the White House.

We forget that in 1976, an evangelical Christian who taught Sunday school, and who endeavored to follow Christ in his daily life ran for President and won. But, despite Jimmy Carter’s strong Christian beliefs, Evangelicals went heavily for Ronald Reagan in 1980. Because they admired his Christian faith? No, his faith seemed situational. But he projected what they perceived as strength and leadership.

Evangelicals ignored one of their own in favor of a secular Republican who talked tough and affected an air of someone who could talk tough when events called for toughness. Turns out that for Evangelicals, like many groups, are primarily concerned with political power; their need for a theologically-sound candidate takes a back seat whenever it has to.

That’s the reality today, as it was back then. Trump is barely Christian, and Cruz is solidly Christian, but the politics of the Christian Right demands fealty to a political agenda that tolerates hatred, exclusion, and intolerance. Therefore, Trump and Cruz quality.

The contrast between the Democratic and Republican parties couldn’t be more sharply defined.

Since the late 1800s, when businesses were undertaking tremendous consolidation, leading to the formation of trusts, Republicans supported business, despite the fact that business was beginning to prey on people and overshadow the government.

After the brief Republican Progressive period from 1890-1917, in which Republicans were the force behind “trust-busting”, they have advanced an increasingly exclusionary and discriminatory agenda, denying a collective responsibility to care for our fellow human beings in favor of elevating corporate interests along with their view of individual liberties above all else. Government is an instrument designed to show strength, project American power, and enforce a neo-liberal, dog-eat-dog economic worldview, one that will take the social contract back to where it was in the early 1900’s.

Democrats understood that government needs to be more than a police and fire department. One of the most important roles assumed by government was ensuring that we create a level playing field for all citizens, that corporations were not first among equals in America. They also believed that we must look after those who are down on their luck by providing a social safety net.

Government was not to be primarily an instrument for projecting power and protecting the influential, but rather one of ensuring the American social contract, while protecting our citizens from the abuses of big business.

After years of courting the Radical Right, thinking that they could be kept under control, Establishment Republicans now understand that, not only do they no longer have control, the inmates are now running the asylum – poorly. Faced with the reality that the bill for their deal with the Devil has come due, Republicans trotted out Mitt Romney to make the case against The Donald, who responded with crude personal insults and inappropriate sexual innuendo:

COW Trump Miracle Worker

Congratulations, Republicans, you have only yourselves to blame. Now, you desperately need a Wrongo Wake up Call. To help you wake up, let’s return to the “small hands” innuendo of the last GOP debate.

Here are the Talking Heads doing “Born Under Punches” live in Rome in 1980, from their great album, “Remain in Light”. This 8-minute live version is worth your time, since it includes spectacular guest guitar work by Adrian Belew, who played with Frank Zappa and King Crimson.

Some think the guitar that Belew is playing was originally jimmy Hendrix’s (the one he burned at the Monterey Pop festival). Frank Zappa repaired it, and loaned it to Adrian Belew, whose main influence was Hendrix.

The bassist in the white dress is Tina Weymouth who is (still) married to Chris Franz, the Talking Heads guitarist. Here are some sample lyrics:

Take a look at these hands
Take a look at these hands
The hand speaks, the hand of a government man
Well I’m a tumbler born under punches, I’m so thin

Hmmm. Is Trump a government man?

Those who view the Wrongologist in email can view the video here.

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Are Trump and Sanders a Ripple of Populism, or a Wave?

Since sophomoric jokes have failed to derail Donald Trump’s presidential campaign (e.g., running silly pictures of Trump, mocking his soundbites while ignoring his policies and his authoritarian condemnations), let’s try understanding what’s happening.

So, is Trump a problem, or just a symptom of the problem? And folks, what is the problem? The Donald captured the essence of “the problem” in his Super Tuesday victory speech: (Brackets and emphasis by the Wrongologist)

People in the middle-income groups are making less money than they were 12 years ago. And in her speech, [Hillary Clinton] said, ‘they’re making less money.’ Well, she’s been there with Obama for a long period of time. Why hasn’t she done anything about it?

Trump for the win! He asks a question that neither Hillary Clinton, or the Establishments of both parties, have a satisfying way to answer (so far), something like what we said about John Kerry being “for the war before he was against it.”

The nation’s real problems are those articulated by Bernie Sanders, but he is not a messenger who can win in the fall. But his popularity, and that of Donald Trump show that we are looking at the swelling of a populist wave in America. Maybe it is still far from the beach; maybe it is just a ripple. We will know in November, but early signs are that the wave could be big when it hits us.

Consider Trump’s victory in the Massachusetts primary – 310,847 voted for Donald Trump. That gave him 49.3% of the vote in a five-candidate race. A pretty overwhelming endorsement, even considering that independents can vote in either primary, and many use that option to vote against a candidate.

The next day, Massachusetts’ Republican Governor Charlie Baker refused to endorse him. He said that he did not vote for Trump on Tuesday and:

I’m not going to vote for him in November.

Charlie Baker is immensely popular with pretty much every segment of the state’s voting population; his job approval numbers are about 70%. He’s perceived as highly competent at running the government, he’s socially liberal, and people just plain like him. So, Baker doesn’t need the Trump wing of the GOP.

Trump isn’t going to carry Massachusetts in November, Clinton and Sanders totaled 1,190,500 votes between them. But the current populist resurgence will not end with Bernie’s failure to win the Democratic nomination, or with a Trump general election loss in November, because the underlying anger isn’t going away. Remember that Trump and Sanders totaled 897,500 votes in MA, to Hillary’s 603,800. From Fabius Maximus:

Populism’s resurgence has, as always, terrified our ruling elites and their servants. Since most journalists don’t understand it, Campaign 2016 is a series of surprises to them.

Maximus goes on to say that from the start of Trump’s campaign, the similarities between Trump and Andrew Jackson were obvious: Trump’s isolationist foreign policy (but bellicose towards threats), his hostility to minorities and Wall Street bankers, his concern for the poor, his appeal to national greatness — these same views also astonished the elites in 1830 when Andrew Jackson rode the wave to the White House. The 1830 elites despised Jackson like today’s elites despise Trump today.

Jacksonians were the first populists in America to gain power. Even today, their strain of suspicion of federal power, skepticism about both domestic and foreign do-gooding (welfare at home, foreign aid abroad), opposition to federal taxes, but obstinately fond of federal programs seen as primarily helping the middle class (Social Security and Medicare, mortgage interest subsidies) continues.

These “Crabgrass Jacksonians” constitute a large political bloc in America. Crabgrass Jacksonianism sees the contemporary homeowner working on his/her modest suburban lawn, as a hero of the American story.

The Establishments of both parties may have fun demonizing their populists, but they ignore the similarities between the strategies of Trump and Sanders, and the appeal both have to significant numbers in both parties. Separately, progressives and populists are weak. If they can be combined as they were at the time of the New Deal, they can be a huge force for change.

US News reports that historical patterns and political data all show that the real presidential election battle takes place in just seven states: Florida, Ohio, Virginia, Colorado, Nevada, Iowa and New Hampshire. Based on recent Clinton vs. Trump head-to-head polls in these seven states, Trump is within striking distance of winning the general election against Clinton.

For those who believe a Trump presidency is not really possible in today’s America, you may want to re-think that proposition.

That populist wave may be closer to the beach than you think.

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It’s Always Groundhog Day in America

Do Conservatives Have a Learning Disability? A few who read the Wrongologist are convinced that Wrongo is just a clueless, woolly-headed Progressive who hates America and the baby Jesus. None of that is true, except for the Progressive part.

From Krugman’s Monday column:

Marco Rubio has yet to win anything, but by losing less badly than other non-Trump candidates he has become the overwhelming choice of the Republican establishment.

PK points out that Rubio:

• Proposes tax cuts, like completely eliminating taxes on investment income — which would mean, for example, that Mitt Romney would end up owing zero in federal taxes.
• Proposes tax cuts that would be almost twice as big as George W. Bush’s as a percentage of GDP, despite the fact that Republicans have spent the Obama years warning incessantly that budget deficits will destroy America, any day now.
• Insists that his tax cuts would pay for themselves, by unleashing incredible economic growth. Never mind the complete absence of any evidence for this claim, or that the last two Democratic presidents, both of whom raised taxes on the rich, presided over better private-sector job growth than Mr. Bush did.
• Called for a balanced-budget amendment, which makes no sense, since he is calling for budget-busting tax cuts. Also this amendment would have been catastrophic during the Great Recession, when deficit spending helped bring us out of a crash.

Finally, Marco Roboto said a few days ago that it’s “not the Fed’s job to stimulate the economy” (although the law says that it is precisely their job). Krugman closes with: (brackets by the Wrongologist)

In short, Mr. Rubio is peddling crank economics. What’s interesting, however, is…he’s not pandering to ignorant voters; he’s pandering to an ignorant [GOP] elite.

It doesn’t require a Nobel Prize in Economics to see the entrenched divisions in our politics. But let’s focus today on the great coup by American Conservatism, convincing its followers that personal opinion counts for as much as any fact.

We live in an America that Conservatives have turned into an oligarchy. The system has been gamed to support the interests of the wealthy. Politicians are able to choose their voters through a cynical, manipulative gerrymandering re-redistricting process. The idea of “one man, one vote” has, via Citizens United, been turned into a largely meaningless exercise in which those with big bucks and an agenda pay to propagandize the American voter, many of whom are far more comfortable reacting emotionally, than thinking critically.

Conservatives like Rubio (and the rest of the GOP) have retreated into a content-free bubble, where they manufacture truth on the fly to suit their purpose. You know this since few on the Far Right put forward cogent, supportable arguments for their ideas, instead lazily relying on a smug arrogance which allows them to laugh off opposing ideas, as does Mr. Rubio.

The problem is, the vast majority of our electorate are largely oblivious to the nuances of the underlying issues. What information they have is derived from main stream media, or right wing propaganda organs, or social media.

Data are boring and unacceptable: My belief is superior to your data or to my own education. It is easier to just vote for the candidate promising to make America Great Again, ignoring the reality of the deep and nuanced causes of our problems.

The rigidity of the Republican doctrine on taxes as outlined by Rubio looks like an alternate version of the movie, “Groundhog Day“, where Bill Murray experiences a time loop in which he repeats his experience until he corrects the problems that had landed him in limbo.

Sadly, in the GOP alternative version, they begin every presidential election cycle with a demand for lower taxes. The tax policy of the previous four years has no effect on this mantra. Nor do the economic trends of the time alter their robotic claim that lower taxes will cure all difficulties. In the Conservative view, a smaller tax bite will trigger an economic boom that offsets the costs of GOP tax cuts to our budget.

In the GOP version of “Groundhog Day”, the GOP doesn’t learn from its mistakes. Unfortunately, this means the entire country suffers from the inability or unwillingness of Republicans to learn from experience.

It’s time to turn off Fox News and set out on a walkabout in the reality-based world.

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Is Bernie Electable?

Nobody knows. Maybe. The “a miracle can happen” argument was made by Bob Lefsetz, who all of you should bookmark and read:

…in 1964, Elvis was king. And then the Beatles wiped him off the map. We had a decade of rock and roll. It had been whittled down to a formula…And then…A band with roots who didn’t believe in convention, who’d honed their sound off the radar, delivered an honest wallop that was undeniable. And overnight the youth switched allegiance.

Could happen again. Probably will if Bernie Sanders is any indicator.

First, he has to get the nomination. Even after winning 60% of the NH vote, Bernie has barely dented Clinton’s lead, which thanks to super delegates, currently stands at 394-42. The super delegates are lining up for Clinton, and what happens if Sanders can’t beat a massively powerful political machine? It proves his fundamental point about establishment hegemony. And if Clinton can’t beat an old leftie from Vermont on his first national run? It disproves her arguments about electability, experience and competence.

But it takes 2,382 delegates to win the Democratic nomination for president. Check out Bernie’s difficult path in the upcoming primaries:

538 Primary Polling

It won’t be easy for Bernie to win the nomination. And he has built-in disadvantages: He angers the big donors. He has limited support in the Democratic Congress. There are no governors supporting him. Add that a lot of Democrats are skittish about Sanders’ embrace of “democratic socialism,” and add his Dovish positions on foreign policy, and you’re not likely to see a stampede of Democratic insiders rallying to his cause.

OTOH, Hillary had all the insider support imaginable and couldn’t win in NH. And if she can’t beat a grumpy old socialist Jew without super delegates putting their collective thumbs on the scale, how the hell is she going to beat the Republican Media Complex fighting uphill against the Benghazi and E-mail scandals?

But, Sanders has a long, long way to go to maybe get within striking distance of the nomination. Even then, he will continue to be reviled by forces on the right that will pull no punches in order to defeat him. The Conventional Wisdom will always say that Sanders isn’t viable, electable, (a “socialist” can never win), is too old, can’t raise enough money, won’t get the votes of women, African American’s, Latino’s, etc.

And if he smashes any one “barrier,” the remaining “barriers” will be elevated in importance.

And new “barrier” constructs will be created.

Returning to the Lefsetz meme, what narrative could resurrect Hillary’s appeal to the young? “Experience” reinforces her establishment brand. “Pragmatism” runs counter to every progressive aspiration of the Sanders campaign. “Fights for people like you” invites an examination of Bill Clinton’s deregulation of Wall Street, and his welfare reforms, or his legal reforms which imprisoned many minorities.

Those who say “Hillary can work within the system and get things done where Bernie can’t” have to realize that is a double edged sword. Millennials are the largest single voting bloc this time. They think unemployment and jobs are the biggest issues. They think the system has screwed them. They want the system to be rebuilt from the ground up.

And it’s not too hard to figure out why.

They are saddled with debt, their economic opportunities are far more limited than that of any recent generation. They are told they are being selfish by the Boomer generation − the generation that while achieving many great things, has left a huge economic and geopolitical mess to deal with.

When they look at Sanders, they see someone thinking outside the box. When they see Hillary, they see the establishment. And, you can’t say Hillary is not the establishment when she has the majority of the Super Delegates and all the endorsements from, well, establishment Democrats.

So, can Bernie win? Who knows?

A hard-fought primary battle served the Democratic presidential candidate well in 2008; it’s very likely that a similar primary battle will serve the winning candidate well again in 2016.

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We Are Victims of Political Misrule

Yesterday we said that 2016 may be the last election we ever need if political division keeps us from getting anything meaningful done for another four years. We also said that none of the current candidates from either party appear to have the ability to lead us towards being a better country.

Despite that, partisans on both sides say their worst candidate would be a fine president, and would certainly do a better job than the best candidate on the other side. Maybe we have a failure to define exactly what our next president needs to accomplish.

We talk as if a president were all-powerful, able to simply wave his/her magic wand, and all will be well. The past 16 years of presidential and congressional misrule has taught us to know better, but candidates still campaign as if we didn’t know better.

If a president can’t solve our problems, what can he/she do? If all they will do is to continue doing what hasn’t worked in the past, why do we bother to elect them, or have elections at all?

If all we can expect is to maintain a defective status quo, what’s the point?

We need America to grow up. We need a president who can enunciate a humane, adult, reasonable worldview, and vigorously promote it at home and abroad. Perhaps over time, that message will resonate with enough people, young Americans in particular, so the next generation can take the first political baby steps towards building a better world.

Either we fix our politics, or resign ourselves to the fact that our democracy is going to continue to give us substandard results.

To succeed at changing the country’s world view, the people would have to insist upon a politics that requires a humane, adult, reasonable, sane worldview from our elected representatives. At best, we would see some compromise, and take a few steps forward. At worst, idealism fails, and we continue the tyranny of a Congress that while elected, is not accountable for the success or failure of the nation.

Donald Trump has broken the GOP, possibly fatally. The party’s recent history seems to have assigned him that task, and he has discharged it well. Thanks to Trump, “lesser evilism” has lost its power to control our politics, making it possible for genuinely progressive politicians to put non-incrementalist policy back onto the mainstream agenda.

That has been Bernie Sanders’s goal. He too has discharged his task well. He, like Trump, has become the polestar for people who are outraged at the status quo, and who want to change it fundamentally for the better. But if the Democrats nominate Sanders, they risk making the same mistake the Republicans would make if they nominate Trump. That is, not recognizing that the very rhetoric that their side likes best will be seen as inherently disqualifying in the eyes of many.

It is the error of the echo chamber–believing that your side is so obviously right that all you have to do is state your beliefs with conviction and honesty and then surely win.

Unfortunately for Hillary, she seems to be on the wrong side of the zeitgeist for a second time. In 2008, she was no match for an aspirational black man who allowed progressives to project their values on him. This time, it’s an actual progressive who may become the road block to her coronation. In different times, HRC would have the perfect resume for the Oval office, and yes, she could yet win the nomination and the big job. Her biggest problem is poor vision. Here is the NYT’s Charles Blow: (emphasis by the Wrongologist)

But possibly the most damaging of Clinton’s attributes is, ironically, her practicality. As one person commented to me on social media: Clinton is running an I-Have-Half-A-Dream campaign. That simply doesn’t inspire young people brimming with the biggest of dreams. Clinton’s message says: Aim lower, think smaller, move slower. It says, I have more modest ambitions, but they are more realistic.

How long has it been since a President has campaigned on a specific platform and also urged the people to vote for his Party in Congress so that he could accomplish that platform. Reagan maybe?

No president has ever changed things alone, and none ever will. If Bernie wins, it’s because he inspires us to join a movement for change. Just like Reagan and Movement Conservatism, where Republicans built a conceptual base, a popular base, a business base, and an institutional infrastructure of think tanks. By the 2000s, movement conservatives controlled the Republican Party.

It took them 40 years, but they succeeded.

And it can happen again.

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The Last Election You’ll Ever Need

“The only rules that really matter are these: what a man can do, and what a man can’t do” − Captain Jack Sparrow

Some may have seen Death Wish, starring Charles Bronson. The movie came out in 1974, a time of increasing fear of random crime, creeping distrust of life in our cities, and growing frustration with what the Right called the moral relativity of liberalism. The film resonated with the US public, and had four sequels over the next 20 years.

The context for Death Wish was New York City’s decline after the fallout from years of redlining, blockbusting, and failed urban renewal. The city’s crime stats began to rise. Son of Sam would arrive in three years, a Republican president would tell a bankrupt NYC to drop dead, and Reagan’s morning in America would usher in a decade of anti-city films bookended by Escape from New York and New Jack City.

So, the question for 2016 is: Does America have a death wish? Are we about to start another period when our cities are declining, and our fears are growing? There is plenty of evidence to support both, from urban decay in Detroit and Flint, Michigan to our fears of Muslims and immigrants, to the distressingly difficult geopolitical landscape for which we have no clear strategy.

In the case of Flint’s need to replace its water pipes, no government – local, state or federal, has any idea where the money will come to fix the problem.

And in the case of geopolitics, we chose to spend $trillions on defense and homeland security, while willingly giving up some of our Constitutional rights out of fear, but are still failing to stem the tide of persistent conflict.

And no candidate from either party is offering a coherent set of policy positions that will solve these issues. Consider that Donald Trump and Hillary Clinton, the two front-runners, offer a similar pitch: Trump’s “I know how to get things done” is the same as Hillary Clinton’s.

But what can get done?

Whenever we talk about a solving a big problem, what we say is: “We can’t do that.” But in politics-speak, “can’t,” doesn’t mean: “That’s impossible” or, “We don’t have the skills or money”. What we really mean is: “It’s too hard”.

Or the solution is outside our ideological comfort zone. Ian Welsh said in 2009:

While there are no problems that America has that America can’t fix, it also appears that there are no problems America has that America is willing to fix properly. And it doesn’t matter why.

The world won’t grade us on a curve. You need to jump the fence, and you can’t. You’re running away from a bear, and you don’t run fast enough, and you’re dead. You wanted to get into a good grad school, but you don’t have the grades or test scores.

As we enter the 2016 election process, this is where America is:

• We have been shipping our real economy overseas for 30 years
• Ordinary families have had wage stagnation for the same 30 years
• We’ve voted for lower taxes
• We’ve not paid for infrastructure reinvestment, or education, or much of our domestic needs

This is where America is, and we continue to struggle to find our way in both domestic and foreign policy, despite the growing criticality of our problems.

In 2001, we elected a president who had a conservative ideology, and under his watch, we had disastrous foreign wars and the Great Recession. So, in 2008, we elected a president who we thought had a vision for the future. Someone who spoke to our better angels, who would drag us out of a near-depression, who would focus on our domestic problems and get us out of war in the Middle East.

Like Jack Sparrow says, after 16 years of presidents with very different ideologies, neither could do most of the things they promised. And we are the worse for that.

Now it is time to elect a new savior, and no candidate looks ready for the job. But choose we must, and one of them will be the next president. If, after we make our next choice, our political divisions again prevent progress for another eight years, it may be the last presidential election we ever need.

Collapse of the state is not an event, it is a process. A process that we are in.

We are right on schedule.

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