Class War and The Big Con
Fellow book clubbers,
Thank you all for taking the time to discuss my book. Let me start by explaining what it’s about, because I’m not sure anybody has actually summarized the thesis.
The Big Con tries to explain how far-right economic ideas have come to dominate the American political agenda over the last thirty years. The book is divided into two parts. The first describes how the Republican Party was transformed, from the moderate Eisenhower-Nixon-Ford party into a party whose central aim is the upward redistribution of wealth. This is a story about the rise of the supply-siders, the transformation of the business lobby, and the overthrowing of the old, responsible Republican elite by right-wing class warriors. (In deference to some of the right-wingers who have graciously agreed to join us, I’ll try to avoid describing them with words like “maniacs.”)
The second half of the book explains how they have managed to get away with it in the face of hostile public opinion. My argument is that the decades after World War II, when there was a broad consensus between the two parties about the role of government, produced a certain style of governing. This style worked for the conditions of the time but is totally unsuited to the new landscape.
The TNR excerpt of my book came from the chapter on supply-siders. This has caused some people to think the book is about supply-siders. It’s only one piece of the story. Yes, the Republican Party believes, as supply-siders do, that tax rates – to be precise, tax rates on the rich – have enormous, almost magical, effects upon the economy. They believe that tax cuts are always good, and tax hikes are always bad, and this holds true regardless of spending or even what the tax rate in question happens to be. So, for instance, it is received GOP wisdom that the 1990 budget deal, which featured a tiny upper-bracket tax hike (from 28% to 31%) and substantial restraints on spending, was an evil betrayal that must never be repeated again.
Tax rates are central to the Republican agenda, but they are not the whole of it. As I said, the GOP agenda is primarily an exercise in the upward redistribution of wealth. This agenda usually conforms to the tenets of small government ideology – government tends to tax more from the rich and spend more on the non-rich – but when the two diverge, Republicans almost invariably side with the rich over small government principles. Thus the farm bill, the Medicare bill (which was written as if to maximize profits for the health care industry), various trade bills, tougher IRS audits of the poor, student loans (where Republicans support far more costly private lending) – the list goes on and on.
Some of the debate in the blogs last week focused on whether, or to what degree, leading Republicans actually believe the arguments they make on behalf of tax cuts, such as the common claim (made by leading Republicans everywhere, starting with President Bush) that tax cuts have caused revenues to grow. I think many of them do believe it. But the extent to which they believe it is fairly beside the point. The wealthy interests who favor tax cuts, and other pro-rich items, aren’t motivated by supply-side ideology. While they may believe that tax cuts help the economy, their deeper belief is that every dollar they have, including the dollars they inherited, is a reflection of their success and a measure of their virtue. So, in this sense, supply-side ideology simply plays the same role that Social Darwinism did a century ago and that economic orthodoxy did seventy years ago.
There’s something that’s always made me uncomfortable about writing in such starkly class-based terms, and I’ve figured out what it is. The sorts of people who think in terms of class tend to be pretty left-wing. For that reason, people who share my political predilections – generally in favor of the Clinton economic program -- tend to steer clear of class when they analyze American politics.
The problem is, the GOP just is driven by class. So if you try to understand modern American politics without understanding class, you’re going to get it wrong. And I think most reporters, pundits, and public intellectuals have been getting it wrong.
















Thank you. There most certainly has been class warfare going on for sometime now, and by the looks of things, the class that waged that war is winning.
Big time.
They're the only ones allowed to talk about class warfare, because if anyone in the bottom 95% does, they get called on it pretty quickly. I know I have. It is quite true that I do not understand "economics" per se, but I do understand where the policies of the last 20 or so years have landed me, and it doesn't take a degree in economics to understand I'm totally screwed. I am workng harder and longer for less.
What's left to understand?
CSPAN junkies visit http://spannerbackup.ipbhost.com
September 10, 2007 8:54 AM | Reply | Permalink
"OLEB and Texas Death Master"
www.ilovepoetry.com/viewpoem.asp?id=93328
Long ago silence only brought death and disaster?
September 10, 2007 9:08 AM | Reply | Permalink
One of the most successful aspects of the big con is something Tom Frank discusses in "What's the Matter With Kansas?" and that is divorcing politics (in the news pages) from economics (on the business pages) as though there were no connection between the two and economics "just happens" by the invisible hand. Most of the public (including many small business owners) just has no idea how big business rigs the markets, garners subsidies and tax breaks and generally hogs everything on the old inverted Puritan principle that by prospering they must be God's elect and therefore entitled to more.
The estate tax is a good example, in that it really only affects a very, very small minority, but somehow everyone thinks that
since they might someday strike it rich, they don;t want there to be an estate tax (although that is changing).
Another aspect is that many journos and pundits these days come from the upper middle or lower upper class and are uncomfortable talking about class because they have become comfortable with it.
September 10, 2007 9:22 AM | Reply | Permalink
On the estate tax, I think that a lot of otherwise well-informed people believe that the tax applies at all estates, and that it's pretty punitive. This is perhaps the most extreme lie in the entire right-wing arsenal. It's conceivable, though unlikely, that a tax cut could increase federal revenue. But it's impossible for the estate tax, as it stands now, to reach more than 2 or 3 percent of estates.
September 10, 2007 9:32 AM | Reply | Permalink
Will you be commenting on how the Democratic Party has facilitated this by through a mix of compromise, cowardice, and corruption that the GOP knows how to exploit tactically.
Curiously, the GOP obsession with sex seems to be their only tactical weakness.
::JRBehrman
September 10, 2007 9:35 AM | Reply | Permalink
Not having read your book, it's a bit difficult to give a substantive post... but perhaps you could let me in on this question:
Is your book substantively on the hucksterism that has accompanied some of the supply-side advocacy? Or are you looking at least as much at how supply-side policies have failed to deliver on their promises?
Here's where I stand: I think there are some true-believers in supply-side theory, people who are really hooked what Robert Bartley and co popularized. They believe in trickle-down, that deficits take care of themselves, that tax cuts lead to increased productivity.
And I actually don't think it is complete heresy to believe these things. There is some theory that can support these arguments. What I think is heretical however, where I believe the supply-siders get it flat wrong, is when they argue that economic data of the last 20 years supports their arguments.
Surely there are people who wilfully attempt to put more money into the hands of the already-rich, but I don't paint all supply-siders with this same brush. Just as I think there were some well-meaning dreamers who supported the Iraq invasion, I wouldn't tar them with the greedy a**hole brush that is merited in the case of other advocates.
So to repeat the question, are you suggesting that the supply-siders are plainly policy hucksters? Or is your argument that they are stubborn, dogmatic believers? Put another way... Are they deliberately conning the electorate, or are they in fact deluding themselves as well?
September 10, 2007 9:46 AM | Reply | Permalink
While they may believe that tax cuts help the economy, their deeper belief is that every dollar they have, including the dollars they inherited, is a reflection of their success and a measure of their virtue. So, in this sense, supply-side ideology simply plays the same role that Social Darwinism did a century ago and that economic orthodoxy did seventy years ago.
As a former college professor, teaching up here in New Hampshire with its strong libertarian, individualist, anti-communal and small government traditions, this is an attitude I encountered often in my students, who seemingly drink it in with their mother's milk.
I often found that there was a general absence of intuitive appreciation for the innumerable ways in which one's own economic well-being depends on the work and virtues of other people, and on the virtues of the societies they have built. It should be obvious that a society's infrastructure, its educational system, its moral culture, and the mountain of public and private investments made over many centuries play a huge role in how much wealth flows to individuals in exchange for the work they do. Two individuals from different societies, with the same education and skills, and equal energy and industry, might receive dramatically different amounts of compensation for equivalent work, and will be faced with substantially different opportunities to apply the skills they do have in the most productive ways. So it should be obvious that a great deal of what flows to you has nothing at all to do with your personal contribution, but has been bequeathed to you by the society you live in.
For many of my students, however, there was an intuitive presumption that the invisible hand of the free market economy was the hand of providence itself, guaranteeing that everybody got precisely what they deserved. Even for those who recognized the practical necessity of taxation, taxation often seemed to bear the taint of original sin. It was a kind of organized stealing, even if an unavoidably necessary kind of stealing. The wages they received were primordially theirs, dispensed through the pure and natural justice of the free market system. Any government takings of those wages were a fallen, human distortion of that natural system, a corruption of the state of economic natural justice.
September 10, 2007 9:52 AM | Reply | Permalink
I'm sorry, the Constitution trumps class and politics. That means that I don't have to understand either class or the GOP, but the upper class and the GOP have to understand the Constitution.
Darwinistic class warfare would be acceptable in a fully open, no-holds-barred lawless society where only raw politics ruled. But the simple fact is that the USA is a republic with a government and a constitution that specifies the purposes of that government as well as the rules that restrict the government, with the general purpose of promoting and safeguarding the inherent liberties of the American people.
Before getting to the Constitution, the spirit of America is embodied in the Declaration of Independence: "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."
Simply stated, this means that every person, every child, in America has the same rights (liberty) as any other to achieve their goals.
The Constitution gets a little more specific: ". . .to . . .establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, . ."
The government is required by the Constitution to promote the general welfare.
Let's fight this battle on our (constitutional) terms, not theirs. "Promote the general welfare"--words to legislate by.
September 10, 2007 9:56 AM | Reply | Permalink
Re: The estate tax is a good example, in that it really only affects a very, very small minority, but somehow everyone thinks that
since they might someday strike it rich, they don;t want there to be an estate tax (although that is changing).
I suspect that most people know they are not going to striek it rich. Rather I think there is a great deal of ignorance out there as to how the estate tax works. Many people seem to think it affects all estates of any size and hence do not want to pay it when their parents die and pass on the family home and a small bank account or two. Also, by using the ridiculous name "death tax" the Right has managed to make it sound as the act of dying itself were being taxed and since everyone does, they manage to get everyone's attention.
September 10, 2007 10:09 AM | Reply | Permalink
Dan K, I think you do a good job of getting inside the minds of those who think of all taxation as theft. Have you come up with any arguments that have an impact on people who think this way?
I doubt that comparing ourselves to people in poorer countries will do the trick. After all, we can think of entire foreign countries as less virtuous that the USA.
September 10, 2007 10:11 AM | Reply | Permalink
Hi Don,
I think you are saying that the Constitution SHOULD trump class-based politics. But I think what Jon Chait is arguing is that the GOP (with respect to economic issues) ACTUALLY PRACTICES class-based politics.
Jay
September 10, 2007 10:15 AM | Reply | Permalink
Its not that business rigs the markets. There is no such thing as a market separate and distinct from political considerations. The market is a human construct, a set of man-made rules that largely determine opportunities and outcomes. When conservatives argue for "letting the market decide", it is letting the rules as currently constructed determine the outcome. Those same people, however, have no problem calling for rules changes when the outcome hits their own pockets.
September 10, 2007 10:18 AM | Reply | Permalink
The Constitution has prevailed. The Republicans have presuaded people to elect them. Chait may be exactly correct than nonsensiclal economics that predominately works against those who work for a living has been the driving force behind Republican campaigns. However, they have not succeeded by magic but by winning more votes more often.
Daniel A. Greenbaum
September 10, 2007 10:22 AM | Reply | Permalink
Like most one-sided descriptions and generalizations, this is true as far as it goes but hardly comprehensive. When you state, "Two individuals from different societies, with the same education and skills, and equal energy and industry, might receive dramatically different amounts of compensation for equivalent work, and will be faced with substantially different opportunities to apply the skills they do have in the most productive ways. " that is undoubtedly true but you only describe a comparison across societies. What you leave out, what I imagine your students are focused on, and what this thread is focused on, is something different - competition within the same society. It is as true to observe that two individuals within the same society, going to the same school, but with different energy and industry, can realize substantially different wealth outcomes. And the opportunity to achieve a better wealth outcome tends to be a big part of the motivation.
And when you state that exogenous factors explain "a great deal" or play "a huge role" in an individual's wealth, the absence of specific numbers in your comment makes it hard to argue with you, but when you recognize that successful employers pay at least 45% of their income in federal, state, local and payroll taxes, (even ignorning the after-tax cost of government mandated compliance expenditures), I respectfully suggest there is no basis to argue that such employers are not sufficiently reimbursing the rest of American society for the advantages it has conferred.
September 10, 2007 10:28 AM | Reply | Permalink
I have argued since the 1980 campaign that right wing claims that America society is rotting were correct - but that the rot was coming from the top.
I think Mr. Chait's argument fits in very well with my conclusion.
Noblesse Oblige used to be a real force in society, but that has been replaced with the idea that the amount of money one has shows one's worth - including one's moral superiority.
September 10, 2007 10:32 AM | Reply | Permalink
Link
September 10, 2007 10:38 AM | Reply | Permalink
The trap: I'm in a post-industrial Vermont, Connecticut River town, where there's a strong sense of working class identity. That very identity emphasizes the advisability of not taking school seriously, since to do so is to betray the class of your parents and adopt an attitude the locals identify with the rich. So awareness of class identity, far from being a wellspring of Marxist or any other meaningful revolt, becomes instead a revolt against knowledge and against the very means by which their children may most dependably raise themselves. Class identity, as a concept, is in itself a tool of oppression. That's a serious, dangerous trap.
The inconsistency: Class is sometimes a synonym for wealth; but other times a marker for culture and learning. There's no single culture among the wealthy; and those with the most culture and learning are often indifferent to wealth. So what's our discussion here: Class as in "classy," or just as a somehow easier way to say "stinkin' rich"?
If "stinkin' rich," how do we differentiate between the rich of the old-money zip codes, who gave primarily to Kerry last time around, and of the new money neighborhoods, who of course mostly supported Bush? If the Republicans are to be accepted at the party of the rich, why are those who have grown up with wealth more likely to support Democratic policies, including even the estate tax? While the "entrepreneurs" may be Republicans in ideology, the rich, as a "class," are quite split between the parties.
So ... "class"? Is that the best term or concept we can come up with to leverage a better understanding of the Republican economic scam?
September 10, 2007 10:39 AM | Reply | Permalink
I think it is hard to see if you weren't raised to see others as people, separate from yourself, with legitimate desires and aspirations of their own. Many people seem to see others as an extension of themsleves. This isn't confined to the young, as our President sees everyone else as props for his own dramas.
There is a Buddhist meal chant that begins, "Innumerable labors brought us this food; may we know how it comes to us." That goes for every aspect of life. But for many it applies only to their failures, not to their successes as well.
September 10, 2007 10:39 AM | Reply | Permalink
I don’t think “welfare” in the phrase “promote the general welfare” means the same as it does today. One can argue that strict regulation of the private economy by the government is better for the “general welfare” than more economic liberty, but that is a political debate, not a constitutional issue.
September 10, 2007 10:41 AM | Reply | Permalink
So, are you arguing that those who succeed in out economic system cannot claim that it was due to their efforts any more than those fail in our economic system can be blamed for their lack of effort? By implication do the fruits of all labor thus belong to the State and does the state owe something to those who are not successful?
September 10, 2007 10:42 AM | Reply | Permalink
Interesting. I have found a similar attitude among young Black students I've worked with, mostly among young males, that taking education too seriously is "acting white" and knuckling under to the values of the dominant society. Students who want to succeed and get to college have to insulate themselves against this. It is not the same for immigrants, including African immigrants (we have several families from Eritrea), although more prevalent among Latino males.
I think it is a scam, though a successful one. It is tribal, though, more than class, and so atimized that the bottom half (or 3/4) is continually divided against itself.
September 10, 2007 10:47 AM | Reply | Permalink
My goodness! I'm a "successful employer" and I find your assertion absolutely ridiculous. Where did you get such an astonishingly silly figure as "45% of their income in federal, state, local and payroll taxes?"
I respectfully suggest you explain what you really meant. Because what you stated doesn't make any sense.
September 10, 2007 10:54 AM | Reply | Permalink
"While they may believe that tax cuts help the economy, their deeper belief is that every dollar they have, including the dollars they inherited, is a reflection of their success and a measure of their virtue. So, in this sense, supply-side ideology simply plays the same role that Social Darwinism did a century ago and that economic orthodoxy did seventy years ago."
One reason you may be "uncomfortable about writing in such starkly class-based terms" is that you haven't taken the justifications for the above-quoted attitude far enough back.
Thinkers and writers on the left are more comfortable with doctrines that have a tinge of scientific legitimacy like economic orthodoxy and Social Darwinism even if it is just mathematical models and the invocation of the name of Darwin.
However, before economic models and Social Darwinism, attempts to justify the same attitude were more theistic. For example, the Catholic and Calvinistic beliefs that worldly goods are evidence of God's grace. In other words, all these arguments are a vestige of the doctrine of divine right which goes back beyond even the Pharoahs. All are attempts to justify unearned wealth and power.
Maybe writing in class-based terms will be easier if you can either make or break the case for divine right.
September 10, 2007 10:56 AM | Reply | Permalink
Wrong. What he said, was what he said. Period.
You seem to have this compulsive urge to twist everything everyone says around in order to gratify some ideological ego driven point.
You're also substantially misrepresenting the issue.
Are you saying the Enron failed 'due to lack of effort'? Are you claiming that all those Enron employees who worked their asses off and came away with zilch in their retirement funds had a 'lack of effort.'
In a perfect world, success should always come with effort. Being an imperfect world, it doesn't always happen that way.
I know a family that ran a restaurant up the street from where I live. The whole family worked at it, they were up all night cooking, they put up posters and signs, they did everything. Every member of that family put in 16 hour days. I never saw such decent people, I never saw such hardworking people. The one day, the sheriff put his notice on their door, and they were out of business. They came away with nothing.
But hey, if you want to ride your ideological hobby horse, go for it. But let's not have any argument that you know a damned thing about real people or about real life.
September 10, 2007 11:00 AM | Reply | Permalink
What's so difficult about understanding "general welfare"? There all sorts of statistics to measure it, and currently in the USA the gw is going south.
It becomes a constitutional issue when the "general welfare" has been demonstrably worsened by political actions. IOW it is unconstitutional to worsen the general welfare: increased poverty and worsening health statistics, etc.
September 10, 2007 11:01 AM | Reply | Permalink
45%? Gee.
I can remember several years ago when I paid roughly 38% of my earnings in taxes. And I would very gladly go back to that, and would want business owners to go back to what they were paying at that time because there was meaningful growth, things like New Orleans got cleaned up, -- in general, government worked.
Stop worrying about the size of your slice of the pie, and start worrying about the size of the pie. What you may not notice is that we are headed down the tubes in a very competitive world, which over the past few years has developed a certain disrespect for this country.
The key here is not the "numbers" you can site. It is very plain that so-called conservative management of the economy has not worked very well.
September 10, 2007 11:03 AM | Reply | Permalink
upward redistribution of wealth
Unfortunately I see that as the driving force behind those same funders of many Democratic political operatives who have sat by and allowed these economic policies to be put in place. Do any of you really see a significant shift away from current policies that would actually stop what has been going on?
I think our society would have to undergo a dramatic overhaul in order to even discuss making things right. The same people who benefit from the GOP's economic agenda are the same people who buy politicians and own the media outlets. What grassroots godzilla will emerge to overthrow that deadly combination?
I don't think its news that the GOP's supply-side ideology is BS or that the GOP is classist. What I'm really interested in is what anyone is going to do to stop this train. I don't have faith in millionaire cowards to right these current and past wrongs.
September 10, 2007 11:07 AM | Reply | Permalink
I think the term "general welfare" is vague and subject to wildly different interpretations.
If the federal reserve makes a mistake and their action results in either inflation or recession, was their action unconstitutional? Can we blame ecomomic conditions on their actons? Making such arguments is foolish.
September 10, 2007 11:15 AM | Reply | Permalink
Actually, I saw it growing up in backwoods New Brunswick, and I've seen it written about in places like Australia and England.
I don't think its a scam. In any community, people have to respect each other, they have to get along, they have to accept certain mores, customs and values. A poorer or tightly knit community relies more strongly on customs and values, because there's more interdependence.
Look at it this way. You're growing up in a working class neighborhood. You need to car pool to work with your fellow workers. You have to fix up the house, your neighbors help you. You need a babysitter, your neighbors pitch in. Recreation, socialization, work, pleasure, you depend on the people around you, and they depend on you.
That means that they have to know they can depend on you. That means that you've got to respect them, to identify yourself with them, so they identify themselves with you. You've got to be known at the bars, tell jokes they laugh at, give a solid, take a solid.
The more you step out of line in any way, the more you become strange, the more unreliable you become. All that antipathy to 'dirty stinking hippies' the hatred that bordered on violence, it was the dislike for an interloper who potentially entered the community, who took, but didn't give back, who wasn't reliable, who didn't identify with you and who you couldn't identify with, and so you couldn't trust him. And if you can't trust someone in a community, they're a drain, when resources are thin and you need people pulling together.
Now me, I grew up in an environment like that. I grew up smart, and perhaps a little alien, I wasn't much into sports. But I was tolerated and accepted because I wore ragged working clothes and had dirt under my fingernails, that no matter how much I liked books, they all saw me working on cars at the garage or hauling lumber. I was quiet and plain spoken and never put on airs. But even then there was suspicion that bookishness was an awkward alien thing to be discouraged.
Sometimes culture gets in the way. Smart people often see it. Talented people see it. Gays. It's just human nature.
September 10, 2007 11:16 AM | Reply | Permalink
Jay,
I understand that, and I'm saying let's not let the Repubs prescribe the rules, let's not accept that silver-spoon Bush going to Yale is fine as long as my son got a chance to go to the local community college and nothing better 'cuz I'm poor. That Bush 'deserved' it and my son didn't. Is that "the idea that is America" to use A-M Slaughter's phrase? It's not my America. It's not a Constitutional America, in my view.
We shouldn't accept what the GOP actually practices and forgo the Constitution, --should we? What is the Constitution, just an old, useless piece of parchment, made obsolete because the GOP doesn't want to live under its rules? Promote the general welfare, that's what it says. Not cater to the rich, not pass laws allowing the rich to get richer while the poor have to decide between heat, food and medicine. None of that. Promote the general welfare, it says, which means--let's be honest and upfront about it--take from the rich and give to the poor. Put THAT in your pipe and smoke it, GOP.
September 10, 2007 11:21 AM | Reply | Permalink
Its a not a scam just a vestige of the hundreds of years of slavery, racism, terrorism and other horrible acts visited upon black people in America. Many black people are stuck in cyclical poverty that has at its heart poor education. This is never addressed by those unaffected by it and so it persists. It also sends a steady stream of slave labor into the nation's prison systems to enrich more GOP or Democratic wealthy people.
September 10, 2007 11:25 AM | Reply | Permalink
I will allow Dan K to clarify his remarks if I misunderstood him.
People who work hard sometimes fail for a variety of reasons and some lazy people succeed for a variety of reasons. We are talking about generalities here. Are economically successful people entitled to be proud of their achievements, or do they owe their success to the state?
September 10, 2007 11:27 AM | Reply | Permalink
"General welfare" can be determined with statistics on mortality. incarceration, education, crime, vacation time and health, among others, and these can be readily compared to figures from other developed countries. Right now the USA doesn't look so good. I don't follow the presidential candidates that closely, but I think that John Edwards is discussing this subject. Anybody know?
September 10, 2007 11:30 AM | Reply | Permalink
You've answered your own question, haven't you.
Are economically successful people entitled to be proud of their achievements, if they are lazy and succeed for reasons unconnected with their personal merits?
Do economically successful people owe their success to the state? Tell you what. Let's test that. Let's put Bill Gates down in the middle of Afghanistan and see if he can become a multi-billionaire.
September 10, 2007 11:37 AM | Reply | Permalink
Daniel,
Votes don't trump the Constitution, do they? If the Repubs canceled freedom of speech would you say okay, because they won more votes?
I understand that we have elections, what I'm suggesting is that there is a strong legal foundation for what liberals propound, that leftys don't have to be surrender monkeys in class warfare because they are fighting for the Constitution, that promoting the general welfare isn't just a pie-in-the-sky scheme to rob the rich--it's what the Constitution says we're to do. So cough up, you billionaires, this is America, love it or leave it.
September 10, 2007 11:39 AM | Reply | Permalink
I'm sure your political enemies will interperet "general welfare" differently than you. Are you seriously going to argue that the U.S. government is unconstitutional if our ecomomy is not superior to all others at any given time by some arbitraty measure? That is a fools arguement. Better to stick to ideological political arguments.
September 10, 2007 11:42 AM | Reply | Permalink
O.K. I will put you in the camp with those who believe that all individual economic success is due to the State. Do you by inference believe that the fruits of the labor of all successful people rigntfully belongs to the State?
September 10, 2007 11:50 AM | Reply | Permalink
Dan K's comment was very specific, and your comments certainly suggest that you misunderstood him.
Whether or not economically successful people are proud of their achievements is beside the point. The point is that there is more to being economically successful than simply individual effort.
September 10, 2007 11:53 AM | Reply | Permalink
Dems = better Supreme Court, better NLRB, better regulatory bodies, and better every other piece of the federal bureaucracy.
September 10, 2007 12:01 PM | Reply | Permalink
Excellent post--there is an old saying that I can't remember exactly, but it is something to the effect that 'those who profit from any system will find it to be exceedingly just.'
I think what you are describing is the commonwealth--it used to be understood that there was such a thing as the 'common good,' and that parks, libraries, roads, etc. were good things, payed for, and used by all. The right wing rich have been trying to destroy the commonwealth, because they personally don't have a need for it (private schools, gated communities, etc.), and they are too short-sighted, or too selfish, to perceive any advantages from the commonwealth, such as, their workers, nannies, gardeners, etc. all need the commonwealth in order to continue to serve their 'masters.'
American mythology also plays into this perception--the 'Horatio Alger' myth that anybody can work their way to the top carries a hidden subtext, that if you don't 'make it,' it's your own damn fault, because you didn't work hard enough.
September 10, 2007 12:14 PM | Reply | Permalink
But it does not help countering that belief that there are quite a few STATE estate taxes that are much lower in cut-off level than past/future Federal estate taxes. This is where many of the farm stories come from, STATE estate tax from surviving parent to children on valuable land still being farmed. It is also one reason gays are fighting for marital rights as a gay partner can get stuck with paying a state estate tax on the value of a home shared by partners, while most states do not tax home value or anything else for that matter as inheritance between husband/wife.
September 10, 2007 12:20 PM | Reply | Permalink
I refuse to accept that designation as a knowingly hypocritical and dishonest attempt to distort my views.
Since your first proposition is a malicious distortion, your second question is meaningless.
Have you stopped beating your wife?
September 10, 2007 12:22 PM | Reply | Permalink
Really? Did the Republicans 'win more votes' in the 2000 election, or did they gain control by judicial fiat? What about the phone jamming scandal in New Hampshire, voter fraud in Ohio, the Diebold scam, etc. etc. etc.
Sounds like they really did win by magic--black magic.
September 10, 2007 12:26 PM | Reply | Permalink
Even a hard line libertarian would argue that there needs to be a rule of law enforced by some level of government and that we are all dependent on each other if we are going to have an efficient division of labor and thus ones economic success is not simply individual effort.
Somehow I don’t think Dan K is making a libertarian argument.
September 10, 2007 12:27 PM | Reply | Permalink
It is my understanding that the effective tax rate at the Federal level is about 19% and it has been that for many years. What tends to cause the total tax rate to go up and down is the state and local taxes.
Daniel A. Greenbaum
September 10, 2007 12:28 PM | Reply | Permalink
I am so tired of people whose condemnation of GOP policy and practice is only outdone by their condemnation of Democrats for not stopping the GOP.
That pool of purity you stand in is getting stagnant. Winning social change means facing reality and working within the realm of the possible, not holding yourself aloof from the fray and condemning those who wage the war.
September 10, 2007 12:32 PM | Reply | Permalink
Looks like I won another one. Go lick your wounds and I will see you again soon.
September 10, 2007 12:37 PM | Reply | Permalink
A debate over policies to promote the general welfare as opposed to an unbridled market are lovely to have. However, bear in mind that Chait's asking about something else, activist government to redistribute wealth and how this has come about. In effect, we're concerned not so much for rebutting the fervid and prolific libertarians commenting in order to rein in markets and broaden the safety net this time so much as in keeping them from using that debate as a dishonest cover for picking out pockets. And, again, how this framing of matters has come to be accepted.
The philosophy part is interesting for other reasons, too, though. People frequently describe liberalism and conservatism as simplifications, because there are separate axes, values of freedom/control, economics of common good/markets. One Discussion Table post had us taking the test to find our quadrant. In addition, we frequently will note how each party is a coalition of many forces, with the GOP, for one, encompassing single-issue voters (NRA), religious "values" voters, those for a "muscular" foreign policy, libertarians, and business interests. (One can see the comments from libertarians here, then, in my above description, as masking the distinction between the latter two groups.) Thomas Frank has a similar frame, when he sees the appeals to values as a kind of opium of the people, leading them to deny their economic interests.
The philosophy, then, is interesting in suggesting a coherent world view encompassing much of this, around certain myths about moral virtue and success. Liberals should be used to some hyphenations like military-industrial complex as already not contradictory and as benefiting from similar associations. I see much of what Stirling N. was contributing here before his vanishing was in exploring a connection.
Dan K., bear in mind that rural New England is anomalous in its own way. There's less obvious self-deception in such claims up there than in Mississippi, Kansas, or the Rust Belt because of different economic histories and demographics. One could almost joke that they're immune to Marxist criticism because they never even reached the industrial revolution.
John
http://www.haberarts.com/
September 10, 2007 12:41 PM | Reply | Permalink
ROTFL. That's your game: 1) You make a dishonest statement. 2) I object to your dishonest statement. 3) Then you declare victory?
That's beneath contempt. Funny, but trivial. Go lick your balls, if you've got any.
September 10, 2007 12:59 PM | Reply | Permalink
Robert,
Well, good, we're making progress here. You've moved from "making such arguments is foolish" to "your political enemies will interpret "general welfare" differently than you." Above I have set out some parameters for measuring "general welfare". Since the subject is no longer foolish, how do you interpret gw? How would you add or subtract from that list?
September 10, 2007 1:29 PM | Reply | Permalink
Daniel,
It's such a crucial point, I want to scream it. The average joe, not doing his own taxes and therefore not understanding them, sees only the cut out of his paycheck, which on the Fed part is mostly SS/FICA, and attributes that to those damn Congresspersons in Washington spending again. There is little awareness of how small the non-SS Fed take is, and how so many, with all the various credits, pay very little to the Fed government. (Or get more back than they pay in, as with EIC.) The GOP story, and, of course it is part of their ideology, is to shift all the burden to the states. Which it does. One interesting flip on that is that it can be argued that the homeowner deductions are a stealth way of getting local property taxes to pay for government. Another is something that Dems might like to hide: there is little awareness of how expensive SS is, with the employer paying the half not seen as deductions on the paycheck; I'm self-employed and see it, and am a strong supporter of SS, but still, people should be aware of its cost and what is done with those enormous funds as to the economy as a whole.
September 10, 2007 1:33 PM | Reply | Permalink
The "general welfare" is what is in the best interest of our country Robert. And our "country" is representative of "we the people" and not "we the upper 2% of wage earners".
Meanwhile our bridges are falling down, millions become sick and get can't get medical treatment because of the prohibitive cost of health insurance, American workers lose their jobs to Chinese workers being paid $2.50 a day, billions of dollars are being fed into the military-industrial complex courtesy of the Iraq War, Big Oil is getting taxpayer funded subsidies while reporting record profits, and social security is under attack...the upper 2% reap a windfall and the rest of us suffer. It is time government addressed the problems facing 98% of the American people's "general welfare".
My home when I am not ranting here...
September 10, 2007 1:37 PM | Reply | Permalink
Um, I suppose, but it wouldn't be funny to anyone that studied a bit of actual history. New England was quite industrial in it's day.
Does "The rural South versus the Industrial North" ring any bells?
September 10, 2007 2:08 PM | Reply | Permalink
Very interesting anecdotals to add to my own "live free or die" file. Thanks. Having traveled country roads of those parts quite a bit, my own prejudicial impression of New Hampshire compared to surrounding states is "more seedy, less developed, less zoned, less governed;" it truly has a libertarian landscape in many places (ala we don't need no curbs, sidewalks or weed control.) But the contrarian part of me wants to say: don't dis them as conservative, aren't they following the "go small and local" advice of say, environmental alarmists?
September 10, 2007 2:23 PM | Reply | Permalink
There are some people you just can't talk to...and they proliferate in discussions of economics.
The right's "trickle down" theory was discarded by FDR in a speech in 1936 when he said, "But the trouble with that theory was that there was always too little left to trickle down more than halfway."
In another speech he talked of the importance of building from the bottom up - on the foundation of the common man.
The evidence has been around since Hoover that "trickle down" is just a euphemism for the rest of us getting pissed on my the well off, but anytime someone dares speak up, the trolls come out of the woodwork, mischaracterizing you statements, and general being obnoxious twits like this nut job. Don't engage. HE twists your words and proves nothing other than he can't last 2 minutes in a real conversation.
September 10, 2007 3:10 PM | Reply | Permalink
It's really pretty easy to get people to recognize how much they owe other people, once they start to think about it. But ideology can be stubborn.
September 10, 2007 3:47 PM | Reply | Permalink
"ideology."
Is that the polite form of arrogant greed?
CSPAN junkies visit http://spannerbackup.ipbhost.com
September 10, 2007 4:28 PM | Reply | Permalink
Either that or I backed you into a corner that you could not extricate yourself from. I'm putting this one in my W column.
September 10, 2007 5:03 PM | Reply | Permalink
You are making an ideological argument for income redistribution, economic isolation and a smaller military from my reading of your comments. That’s fine, I just think it is not fruitful to maintain that the constitution requires those policies.
September 10, 2007 5:10 PM | Reply | Permalink
Uh huh? So you gonna claim to me that Bill Gates in Afghanistan would have gone on to be a multi-billionaire, instead of a rent boy for Mujahedeen?
Answer that question, tinkerboy, and I'll answer yours.
Or better yet, Regale us with your crackpot libertarian theories.
September 10, 2007 5:22 PM | Reply | Permalink
If you read the rest of my comment you will realize that I maintain that making a constitutional argument for what life in the United States should be like is a fools argument I guess everyone would like to live in a land of milk and honey and not have to work very hard. I just don’t think the constitution can require that outcome.
September 10, 2007 5:28 PM | Reply | Permalink
No.
But we are talking about the relative economic success or failure of people operating in our economic system. Or are you indeed arguing that everyone who succeeds here owes everything to the State because we have a rule of law as opposed to Afghanistan?
September 10, 2007 5:38 PM | Reply | Permalink
How about this. I'm saying that relative economic success or failure of people operating in our economic system is dependent, first and foremost, in that they are operating in and embedded within our economic system.
People who succeed, succeed for a variety of reasons:
* First and foremost because they exist in an environment of the rule of law;
* Regional advantages and resources make a great difference. Silicon valley didn't emerge in Alabama, there's a reason for that. Not a lot of sofware, not a lot of hardware, not a lot of dot com or anything came out of there.
* Economic factors. In the middle of the depression it was a lot harder to be successful than in the roaring twenties, or the postwar boom.
* Social factors. Being born into money, having the right connections, the right training, education, upbringing, the right social networks and supports, the right contacts and connections.
* Hard work? Sure.
* Brilliance, smarts, hustle? Sure.
But are individual hard work and brilliance the determining factors? Only in idiot would argue that. You don't even argue that. You admit that lazy and stupid people are able to be successful.
And that's the really interesting question, isn't it? How is it that lazy and stupid people manage to succeed at all? How is it that the plain and the ordinary and the mediocre do so well in America?
Surely the ordinary people of America are nothing special. Surely they're no better and no worse than people the world over?
What makes America special, what makes Americans rich?
If it isn't American society, if it isn't the whole set of legal and cultural rules, the accumulated wealth of generations of education, of contributions, of vast resources, of millions of people building and building a nation, if the state is not a part of this... then what is?
Here's a question for you. What's the difference between America and Afghanistan? What's the difference between America and China, or America and Russia?
Brazil, China and Russia are huge countries. They've all got vast natural resources in their large territories, just like America. They've all got large populations. Long histories. Educated populations.
Surely their populations are on average as smart. Surely their populations are on average as hardworking. Maybe more hardworking, spend your life in backbreaking toil wading in rice paddies, that's hard work.
But why aren't these countries up there? If resources and history, if territory and population, if the human resource is comparable, what's the difference.
Different kind of state? A state organized to benefit the many rather than the privileged few? A rule of law dedicated to equality, rather than power? Regulations to prevent monopolies, to prevent environmental expropriation, to make sure that the economy plays fairly, to support critical economic sectors, to encourage innovation?
Here it is, smart boy.
Where does the rule of law come from, if not from a state? I'm not arguing about where that state comes from. I'm arguing that the state is an essential tool for the rule of law, it is an essential tool for ordering and organizing a society to be functional.
This is the Libertarian delusion. Well, we've seen plenty of 'Libertarian paradises.' We've seen them in Somalia, in Afghanistan, in the Congo. Countries where the state has withered away, vanished, dissolved, gotten off peoples backs. Instead of capitalist utopias, instead of freedom, they've turned into hells on earth.
September 10, 2007 6:24 PM | Reply | Permalink
One of the many propaganda benefits of always talking about cutting marginal tax rates is the confusion of the income tax on the last dollar and the total people actually pay. Appropos of SS/FICA the Republican "Laffer Curve" Steve Forbes "flat tax" crowd always fail to mention when they tell us that the top 1% pay the most taxes is that many people pay SS/FICA taxes even if they don't pay income taxes.
Daniel A. Greenbaum
September 10, 2007 6:30 PM | Reply | Permalink
I think you are confusing libertarians with anarchists. Even the most hard core libertarians that I am aware of agree that there have to be some rules of engagement for economic competition and don’t look to Afghanistan as an ideal model.
I still didn’t get a clear answer to my question from your screed. Do you think that in general someone who has achieved a high level of economic success in the United States can rightfully claim that he earned his wealth?
September 10, 2007 7:37 PM | Reply | Permalink
Libertarians, anarchists. What's the difference? They're both unrealistic fools with no grasp of the world or of human nature.
You want a clear answer: In general terms, someone who has achieved a high level of economic success may or may not be able to claim that they have earned their wealth largely through their own merits.
Most people who experience a high degree of economic success in America owe that success to one degree or another to the society that enables and rewards them.
How do you define "rightfully claim"?
September 10, 2007 7:49 PM | Reply | Permalink
Robert, property is a human institution, not a fundamental metaphysical fact. The products of our labor - or rather the products of the long chain of labors of which our labor is just the last link - don't belong to us in any deep sense; nor I think do they belong in a deep sense to the state or the community. It's up to us to work out politically the rules and institutions of possession and exchange that make for the best society, and to find the right balance between personal and community control of value. We have nothing to go on but our experiential knowledge of what makes people happy. There are no primordial rights of possession.
In most cases, people who have succeeded economically, and who have reaped rewards from what they have produced, have expended significant effort. But there are two other factors that go into setting the reward that their efforts bring them; and of neither can the individual claim authorship. These two factors are the gifts of nature and the gifts of social advantage.
The latter concerns the contribution made by the human society into which you are born, and the place in that society you were born occupying. There is a famous saying of Isaac Newton's: "If I have seen further, it is because I stood on the shoulders of giants." Newton expresses just one kind of awareness of the ways in which our achievements depend on the work and achievements of others. And anyone who succeeds economically in our society can say with equal justice, "If I have produced great things, it is because I have made good use of the great productive engine built and maintained by my ancestors and fellow citizens." One could have bottomless industry, but without the countless factors of production that are sustained by others in the world around you, the rewards for you efforts would be meager.
I am writing some words right now. If they have any value at all, that value derives almost entirely from the thinking others have done. Their thinking has been transmitted to me by many teachers, and my own transformative contribution has been vanishingly small by comparison. My head is filled with the knowledge, ideals, imaginings, and moral and intellectual disciplines that I did not author. The intellectual content itself is the work of millenia. And in my own case, many of my teachers were part of a public system of education nurturing human beings capable of literacy, critical thinking, problem solving and creativity.
There is another famous saying: "There but for the grace of God go I". This expresses an awareness of contingencties that go beyond the social ones, and reach deeper into the natural world. While we all take pride in our physical, intellectual and moral virtues; most of us instinctively recognize that the presence of those virtues in us has little to do with anything we have done ourselves. We might build upon some of the virtues present in us to cultivate additional virtues. But the foundation of it all trails off into places far outside our own finite existences. Everything you are - your genetic inheritance, your moral qualities and virtues and your acquired excellences comes ultimately from places far outside of you, and a person is just a highly contingent and impermanent node in an imponderable causal nexus.
I know this is all very philosophical, and in the end it doesn't do much to resolve the practical disagreements about how we should set up the institutions of our society. But thinking about these truths does help to counter certain obsessively individualistic habits of thought, such as the voice that says, "That's mine, and they are taking it from me," or the one that says, "I am responsible for this; not anybody or anything else."
Recognizing the overriding value of the gifts we have received can help us cultivate an attitude of humility, gratitude and peaceful resignation. In religious traditions, this attitude is sometimes called "spiritual poverty", and I think it is something American society in its modern form could probably use a bit more of.
September 10, 2007 8:36 PM | Reply | Permalink
You're basically right. But also some of those things, like the relative absence of sidewalks and streetlights in some places, may be more a factor of low population density than attitudes toward government spending. It costs a lot of money, in anybody's book, for 2000 people to run sidewalks up and down the streets of a 30 square mile town with a minimal industrial base.
September 10, 2007 8:51 PM | Reply | Permalink
I’ll put that down as a maybe. That’s a fair answer.
I think the argument that those who enjoy economic success today are building on those who have gone before is of course true but a different argument than whether those participating in the economy are earning their success. Bill Gates did not have to grow his own food so he had time to figure out how to take advantage of the emerging personal computer market. Of course someone else had to develop the semiconductor industry which enabled the personal computer. All of that does not detract from the debate as to whether Bill Gates advanced the economy enough to justify his wealth. I happen to think that he probably did not, but he is really an outlier.
I think one can “rightfully claim” to have earned their wealth if they have contributed to the economy approximately what they have received from it. That’s the libertarian streak in me that you clearly despise.
September 10, 2007 8:58 PM | Reply | Permalink
Anyone see the bumper sticker?
"At Least the War on the Middle Class is Going Well"
Forgive me if I repeat anything stated elsewhere, but after reading about this book and about Charlie Savage's "Takeover," I'll just state the obvious.
Jonathan's recognition of the blatant "upward redistribution of wealth" and Savage's outlining of what we can call the "upward redistribution of governmental authority" only proves yet again, that these forces don't want just SOME of the money and power in the world.
As Noam Chomsky said, "They do not want to be loved. They want to be obeyed."
The task we're looking at is simple but difficult: Getting the truth out and making it unassailable. Because when everything is a lie, the truth is suspect.
So there are dueling statistics and "differences of opinion" about arcane interpretations of Constitutional intent, and whether a modest tax increase for the richest among us has measurable benefits on the economy and society as a whole. To even mention the plight of poor and middle-income families is frequently considered a distasteful playing of the "Class War" card.
Meanwhile, Iraq burns, poverty and violent crime rise sharply, and the truth has all but disappeared from the TV screen. (Partial truths serve the liars best.)
September 10, 2007 9:45 PM | Reply | Permalink
Of course there is some validity to "supply side" stimulus, where appropriate, in specific cases. Going back to Keynesian economics it's recognized there are appropriate places for government to spur economic growth, not just to maintain employment, but also to spur innovation and infrastructure.
But that's more of an investment, which of course has to be weighed as you would any investment, on an individual basis. A great example is the S Korean partnership with telcoms to invest in, and heavilly regulate, accelerated internet deployment which quickly leap-frogged the US. They got a great net, telcoms got rich, the tech market grew as a result of supply, and the economy grew and there was wealth dispersion.
However, supply-side as an ideology presuming that happens automatically due to an invisible hand, is simply "voodoo economics" as HW Bush once rightly criticized, before he got the memo. What laisse faire types hate is that good Supply Side should actually be seen as a government investment, and come with responsibilities and partnership.
Which gets down to the real motivation behind Supply Side, Laissez Faire, Pareto's Law, and so on.
It's essentially Social Darwinism by many other names. These people have the economic equivalent of Asperger's Syndrome.
September 11, 2007 2:53 AM | Reply | Permalink
I jokingly call it Economic Asperger's Syndrome. But actually that sums it up fairly well.
Another way to look at it is the flip side of communism. Same simplistic appeal towards magical solutions that especially intellectually lazy people are drawn to.
The best way is simply to use tangible examples. Law enforcement is one example, which can quickly be applied to other crimes such as environmental poisoning, and then to the EPA as a logical conclusion.
I personally find primate research into the evolution of morality useful to reduce ethics to the most fundamental level, even natural law, driven only by the demands of evolution. Even at that primitive level it's complex and similar to human morality.
Most libertarians and anti-government Republicans actually have small close knit communities, they just distrust larger government and have trouble grasping and gaming out the net gains of large systems. And the Republicans play on that weakness by encouraging apathy.
September 11, 2007 3:10 AM | Reply | Permalink
It's not as simple as individual meritocracy, and therefore progressive taxation is robbery, which seems to be your gist.
Our Egalitarian system gives opportunities to everyone. Opportunities that no individual, not even the most wealthy, could individually buy in advance. You can pay down Western Civilization on an individual account.
There are ethical, actually logistical, reasons for Egalitarianism as opposed to Social Darwinism. If we could be guaranteed that Bill Gates' or Steve Job's offspring would also be the best, or that there wasn't someone more capable who never got the chance due to circumstance, then there would be no problem with nepotism and plutocracy, or even monarchy.
Reality demands policies that maintain egalitarianism. Ranging from anti-trust regulation to estate taxes, to avoid nepotism and plutocracy, which are antithetical to democracy. And democracy, despite flaws, is the most efficient system at generating happiness and progress, and thereby the most ethical.
Meritocracy should be incentivized in conjunction with egalitarianism. They must be balanced. A more perfect society will be found in the subtle shades of gray, not some stark contrast, as romantic as that would be.
Communism is a simplistic ideology which seeks egalitarian efficiency but soon collapses by failing to promote meritocracy and by actually generating an excessive ruling bureaucracy leading to extreme dissonance and eventually totalitarianism. Libertarianism is s simplistic ideology which seeks to promote maximum meritocracy but soon collapses as it fails to promote egalitarianism which then leads to nepotism, plutocracy, dissonance, stagnation, and totalitarian despots.
Bill Gates would still be the wealthiest man alive, and have incentive, even if he had paid a higher rate. As it is he doesn't know what to do with the wealth he has. And he's far from the worst example. Oil men, money lenders, and such who tend to border on rent activities are far worse.
Even if a person goes entirely to private schools and comes from the wealthiest of families, they will owe a great deal to the general populace and rule of law. Eventually, should they become successful in business, their consumers will only exist as a result of social policies and rule of law.
Without public schools for example, Bill Gates would have nobody to sell computers to, and might simply die a violent death due to crime if it wasn't for the rule of law, which depends upon an educated and idealistic populace.
Bill Gates and others are obligated to repay that system to maintain those opportunities for others. Not loot the system for personal gain and then let it decay.
You seem to think that's ripping off the wealthy. Actually, it's repaying society and giving back so others will have the same and hopefully greater opportunities. Paying back society and having some gratitude.
And no, I don't think optional philanthropy cuts it or even close. Bill Gates is givign back, though it's questionable whether he should have accumulated so much wealth relative to his contribution to begin with, and whether he wasn't just the beneficiary of economically deficient patent laws and anti-competitive practices. But at least he's giving back, which is better than most. Most just build monuments to themselves like Pharaohs.
It's ethically lacking because it's unreliable, inefficient, and deficient. It's also plutocratic and undemocratic.
Government should be more efficient. But the anti-government ideology isn't helping. It's a delusion. It's apathy which fails to address the problems and fails to stimulate real reform. We'll not get a better state through Libertarianism any more than Russia or China got a better government through revolt and communism. They just flipped from one extreme to another and wound up with the exact same problems.
We need to optimize government which is going to be difficult and not very pretty. Not daydream auto-magical ideological delusions.
September 11, 2007 4:16 AM | Reply | Permalink
Not so.
Libertarians are often against many law enforcement aspects of government. For example, take the EPA, which most Libertarians would like to abolish, or at least cripple.
Is a clean environment not a liberty we enjoy as a result of law and order? What is the EPA but essentially the environment police? Take the FCC regulating anti-trust of the media landscape among other things. Are ordinary police suited to replace the EPA or FCC or other regulatory functions of government? Of course not.
There are plenty of examples of Libertarians claiming to be for Law and Order while deriding the admittedly imperfect institutions protecting those liberties. And were they abolished a more perfect system would not emerge through the market. That's a delusion easily dispelled with historical examples and gamed out scenarios of monopoly and plutocracy. Such liberties would vanish completely as they have in other cultures and eras.
One can't honestly claim Libertarians are for law and order, except at the most rudimentary levels totally deficient for a developed nation to actually preserve the liberties we presently enjoy, let alone improve society. They have delusions of the Wild West as some sort of libertarian utopia.
Valdron is correct to say Libertarian ideology is a complete delusion. Libertarianism wouldn't produce a better world, it would produce something like the Gilded Age quickly degenerating to something resembling Mad Max or various third world nations.
September 11, 2007 4:35 AM | Reply | Permalink
I am making an ideological argument against income redistribution upwards Robert. Economic isolationism? No not really. Just advocating a return to a export based economy where American workers build consumable goods again which gave America it's economic might and brought relative prosperity to the American people. And I am definitely for a smaller military. Eisenhower was quite correct in his farewell address when he warned the country about the military-industrial complex.
The Constitution might not require these policies but it does give the government the right to regulate the economy for the "general welfare".
My home when I am not ranting here...
September 11, 2007 5:14 AM | Reply | Permalink
I agree with all of that, but it's only half the story. Yes modesty is good, but it sounds as though you're glorifying the whole while trying to annihilate the individual.
If you chalk individuality entirely up to chance, fate, or such, that logically leads to a nihilism and a sort of determinism incompatible with individual psychology. It's a self contradictory mental trap. Even taoism and other especially selfless philosophy warn against that.
On meritocracy:
Two people can receive highly similar experience and opportunity, and one may make better use of it than another. One may work harder, have a better attitude, whatever. Certainly a part of that occurs on a level so mysterious it appears chaotic or fate. There but for the grace of god and all. That would argue against ego or merit.
However, there is also an individual component which can be recognized, predicted to some extent, incentivized, and therefore should be. Individual motivations for success, fame, prestige, and yes wealth, are our evolved mechanisms to reward good strategies. Call it genetics, spirit, or whatever. Those positive traits have to be recognized and incentivized, to reward individuals for contributing to society.
Individual meritocracy must be balanced evenly with egalitarianism. They serve each other.
Social Darwinism is a misnomer. It's a poor understanding of evolution. Darwin himself abhorred it because he recognized empathy and morality for a common good as having tremendous utility to the individual equal to individual desires. That in fact individual morality is an inherited trait for group efficiency which gives individuals great pleasure. Darwin and others who get evolution of social species understand individual and group interdependence, and balancing them, is the greatest and most difficult invention of nature.
Similarly, Libertarians need to recognize that ceding some authority to state, even a flawed state, ultimately makes greater liberties possible. And Socialists need to understand that individual merits must be incentivized to promote excellence and benefit the society as a whole.
It's a balancing act. The ideal is something like "Market-Social-Democrat."
September 11, 2007 5:19 AM | Reply | Permalink
You are over reacting to what I said. Certainly libertarians are not for “law and order”. I merely pointed out that even those who believe in extreme liberty understand that there must be understood rules of economic competition and that we depend on each other as trading partners, employers and employees.
September 11, 2007 5:22 AM | Reply | Permalink
I don’t recall saying “progressive taxation is robbery”. I was merely trying to tease out Valdron’s views on meritocracy and the degree of ownership of the fruits of ones labor.
I hope others enjoy your rant, I was quickly bored and skipped most of it.
September 11, 2007 5:29 AM | Reply | Permalink
It sounds as though you're glorifying the whole while trying to annihilate the individual. Which is a patently logically flawed ideology. If you chalk individuality entirely up to chance, fate, or such, that logically leads to a nihilism, in which case no social policy matters. Which is foolish in the extreme.
Could you spell this argument out a bit more? First, I don't know why recognizing the causal dependency of human individuality on natural and social conditions amounts to an "annihilation" of individuality. It seems to me just to provide a framework for explaining individuality, not denying its existence. Human beings are natural objects like everything else, and the individual traits that distinguish them from other human individuals have causes. They don't spring into the world by spontaneous generation; nor are human traits and actions some kind of miraculous disruption of the natural order.
Since human individuality has intelligible causes, we are then not entirely powerless to influence which traits people end up possessing. Since the social conditions into which an individual is born have a lot to do with the traits they acquire, then it seems to me that selecting the right social policies actually has a lot to do with seeing to it that individuals acquire desirable traits. So I don't see where this view leads to the conclusion that social policy doesn't matter.
September 11, 2007 5:31 AM | Reply | Permalink
Yes, in a nut-shell it's Social Darwinism. Which is basically just a misnomer, as Darwin abhorred it, and an excuse for ignorance and greed with a pretense of learning.
Ayn Rand was of course a big Social Darwinist, and her close colleague and in later years patron and in some regards mentor was Alan Greenspan. In fact they formed the "Collective" together in 1950, to promote Social Darwinism through laissez-faire capitalism with a heaping dose of romanticism and theatricality for public consumption.
September 11, 2007 5:34 AM | Reply | Permalink
Call it the "Don't build it and they won't come" approach to governance.
Though due to the prime real estate and telecom technology NH is seeing some growth. But despite their notions of independence and regional pride, it would actually be pretty helpless without high population, high technology, economic powerhouse states like CA and NY.
September 11, 2007 5:52 AM | Reply | Permalink
Correction, not the "right" to regulate, as though it was an option that could be discarded or ceded.
It's more of a responsibility, an obligation, than a right.
The Constitution Article I requires Congress, requires Congress specifically, NOT the Administration, the sole power to establish and collect taxes, mint money, maintain law and order, build infrastructure such as roads and communications, regulate trade, and maintain the national defense including most importantly war powers, "for the common good."
So yes, the Congress does have that responsibility to promote the "common good." That is their highest, and fundamentally their only, mandate.
The Administration was constitutionally intended to be only an executive body implementing congressional will and legislation, with minimal veto power and no legislative power. The movement towards a more powerful executive, Republican or Democrat, is utterly against the founding principles, and a bad idea regardless.
September 11, 2007 6:13 AM | Reply | Permalink
O.K. I’ve slogged through your manifesto.
I do not share your difficulty in assigning the ownership of the product of labor to those providing the labor. For instance, I think that someone who has the ability to produce beautiful furniture from raw wood creates something that did not exist before and naturally owns the furniture he produces irrespective of human constructs. Likewise in a more complex economy someone who simply assembles a compute from components created by others, owns the small increment of value that that assembly produced.
I can wax philosophical about the assigned ownership of land and other natural resources which are human constructs.
I agree that each new generation benefits from those who have gone before. That does not detract form the ownership of the new wealth created by each generation. I think my furniture maker still owns the furniture he produces even though he uses tools that previous generations invented. Now the value of his furniture may indeed be lower since the tools make the furniture more easily produced by others. In the example you gave of yourself, you indeed produce little new in value since you simply regurgitate the thinking of others. If you are a teacher and are able to convey those thoughts to students, you do provide a service that has value that I think you own.
September 11, 2007 6:40 AM | Reply | Permalink
What if the raw wood was stolen? Who owns the furniture then?
September 11, 2007 8:16 AM | Reply | Permalink
Huh?? Catholic belief recognizes wealth as evidence of God's approval? Any formal study of the great literature on religion and economics works from the opposite premise regarding Catholic beief.
Weber, in fact, uses Catholicism to contrast the Calvinistic belief as wealth being an indication of God's approval, and a pre-ordained fate now manifest. (You seem to have gotten it half right, anyway.)
Kevin Russell Cook
September 11, 2007 8:44 AM | Reply | Permalink
Well, it's good to know the meaning of welfare, now and then. But what about "promote"? Only in the occasional preverse case could "promote" mean to husband by negelect. Still, some seem to think that is what it's all about. The perverse cases that is, we may suppose.
Kevin Russell Cook
September 11, 2007 8:55 AM | Reply | Permalink
Dan, This RB guy is sold on the objective truth of his own definitions. Cut up the world any other way and, to him, your wrong. He doesn't get it. He'll never get it. Definitional thinking is the basis of thought. But, assuming these things are more than simply practical constructs doesn't free you from the metaphysical. It sentences you to an imprisonment there. Hello 14th century.
Kevin Russell Cook
September 11, 2007 9:14 AM | Reply | Permalink
I gladly stand corrected kozmik. The correction actually helps reinforce the main point I was making. ;-)
But it seems Congress has in fact ceded their responsibility on economic policy to the Executive Branch. The Chairman of the Federal Reserve has become the one party most responsible for establishing our economic policies.
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September 11, 2007 9:42 AM | Reply | Permalink
Of course I am simplifying to make my point. My furniture maker owns the value added by converting raw wood into furniture. I am assuming that society has arrived at a way for him to obtain his raw materials legally.
September 11, 2007 10:28 AM | Reply | Permalink
Why are you making that assumption?
And why do you assume that the furniture maker creates value by converting raw wood into furniture.
Supposing that the tree in question is a valuable and rare tree. Destroying the tree to convert its wood into furniture might well substantially reduce its value.
Would the furniture maker then own or be responsible for the loss of the value? Would the personal contribution of value in the furniture be forfeit to the greater loss of value in the tree.
Why do you assume that the furniture maker comes by the wood legally? And what does legality mean?
Suppose I own a forested lot. The trees on that lot are valuable to me, they have aesthetic appeal. They're valuable. They are so valuable to me that I simply refuse to sell them for any purpose. In economic terms, their value is infinite, since they cannot be bought.
Suppose your furniture maker takes those trees because he needs them for his furniture. Who owns the furniture then, what about the value, where is that value and who owns it?
Here's a good one. Suppose the trees are common property of the community, but the furniture maker helps himself to the communities wealth, converting it into furniture to which he claims sole title?
Suppose the government decides that furniture is the way to go, and simply licenses the furniture maker to take any trees he wants... even the trees on my property?
These are not abstract issues, but actually occur and occur frequently in the real world.
The problem is that the model you presuppose is limited in every respect. In the real world, there are competing chains and claims of obligation over literally every transaction and event.
September 11, 2007 11:08 AM | Reply | Permalink
I think that “promote” can mean simply getting out of the way in more than just a few perverse cases. Is promotion of trade protectionism demanded by the constitution if it will have an adverse affect on the “general welfare”? Of course some one will have to define general welfare and then decide if trade protectionism promotes that definition.
Bottom line it is exceedingly unproductive to turn to the “promote the general welfare” clause to justify ones ideological preferences for economic policy.
September 11, 2007 11:09 AM | Reply | Permalink
That's what I would have thought before too but now Im not convinced. They havent exactly lived up to expectations along those lines lately have they? Remember that little thing with Bush before the August recess? Throw out civil liberties so they don't miss their vacation? Now just assume they'll do right when they control everything? I think most of them are out of practice when it comes to doing the right thing.
September 11, 2007 11:17 AM | Reply | Permalink
As I said, I can be philosophical about the ownership of natural resources.
If the society in which he lives has decided that wood is too valuable to be used for furniture, my furniture maker will have to find some other way to occupy his talents or enter the black market for wood furniture. If he enters the black market, does his furniture represent value? That depends upon whether the societal prohibition on wood use accurately represents the value of that wood. Did those who produced alcohol on the black market during prohibition produce wealth? I think so.
September 11, 2007 11:32 AM | Reply | Permalink
You're right. And the Democrats handled it badly. I remember when it was the hot topic, and was frequently discussed on panel shows. Had I been running the DNC, the first thing out of every Democratic spokesperson's mouth would have been - the estate tax only hits after $3m per couple (or however you want to word it). If your estate is worth less than that, your heirs will not pay any inheritance tax.
I never heard it said once and it should have been the mantra on everyone's lips. My mom died in 99 and left an estate worth less than $50k and I spent several days fretting about how to handle the taxes. After all the discussions I'd seen on tv, I didn't know that basic fact. My son, who was then in college, was the one who finally clued me in.
Lots of people don't know because you don't find out until your parents die. And most parents don't leave behind an estate worth all that much, so people have no awareness of what the upper limit is.
The Dems handled the debate as badly as it could be handled.
September 11, 2007 11:40 AM | Reply | Permalink
Read Sandra Day O'Connor's autobiography. On one hand she deplores government handouts. On the other hand, she talks about a flood that nearly wiped her family's ranching operations out of business but for the financial assistance of the United States government.
What these people train their children to reject is assistance to others. Assistance to one's self is acceptable because one is morally pure enough to be entitled - those other people though, huh uh, can't have that.
I have a friend who claims that the rich breed for maximum sociopathy. He may be right.
September 11, 2007 12:00 PM | Reply | Permalink
This is interesting. So theft can produce wealth?
Are you stating that theft together with work produces wealth? Or is theft alone sufficient to produce wealth?
Is the act of stealing something a justified economic value that should be credited to the thief?
September 11, 2007 12:05 PM | Reply | Permalink
Oy, I strongly agree with your point, it's a crucial distinction.
If anything, it's the opposite, centuries of Catholic theology and actual practice of the hierarchy could much more easily be overgeneralized as promoting the barefoot, uneducated and pregnant life. There is little glorification of wealth or success in this life in most of Catholic history towards the flock. Indeed, the hypocrisy of the wealth and worldly power in history of its hierarchy was a known and hated fact that the hierarchy tried to hide from the flock because they knew they were hypocrites.
This is deep in the Catholic church, and manifested itself in all kind of ways (more ways before Vatican II than after, since Vatican II encouraged some Enlightenment values over the faith thing) from not encouraging the faithful to read the Bible themselves but listening to the priest, to much of the art created for churches in order to teach lessons without creating literacy. It is a key to the Reformation reaction. It exists strongly to this day in the third world manifestations of the church.
If the Catholic Church can be said to have been consistent about teaching anything over centuries, it is this, for good or ill: it glorifies being poor and humble. This is why Latin American "liberation theology" is still considered dangerous by the Vatican. It is why American Catholics are considered uppity and troublesome to the Vatican. Also related is the growing loss of flock in Latin America and the third world to Pentacostalism, where the individual worshipper is more empowered to create his/her own belief.
Sidenote for Emma: some of the anti-Catholic attitudes in the history of the U.S. South ("Papists!",) and indeed across the WASP culture of the nation are involved with this. Catholicism was seen as viscerally anti-American in nature, being against meritocracy and individualism, as a suspicious bunch of hocus-pocus to keep them poor, pregnant and reproducing and accepting of low wages without complaint, extending up until the question "can a Catholic win the presidency?"
September 11, 2007 12:13 PM | Reply | Permalink
If the landed aristocracy is hording all the wood for their enjoyment, yes the theft of a few trees for some furniture for the people can produce wealth.
Where are we going with this? Have you been drinking again?
September 11, 2007 12:15 PM | Reply | Permalink
So the act of theft is an economic activity producing wealth in the same manner as building a chair. Interesting.
I'm also interested in your comments on value, and whether a societal prohibition on wood reflects 'value'. How does that value get assessed? What is this source of the concept of 'value' that you use?
For instance, suppose I will not sell my wood under any circumstance.
In classical economics, this means that the value is infinite. You steal the wood. Is my claim against you infinite?
Or are you claiming that there is another 'value' attributed to the wood, a market price, so that your obligation to me is limited to that 'value'?
If so, isn't this a license to steal... or at least to simply forcibly take whatever you want, so long as you pay an arbitrary market price for it?
If a seller has no right to refuse, then what happens to value?
It seems to me that in the end, your concept of value incorporates the right to steal, which means that the only real value to be found anywhere arises from the effort of taking it.
The right to possess anything is subordinate to the right of anyone else to take it.
And no, thank you for asking, I haven't been drinking. Have you been licking your balls again? Ah, but don't mind me, I'm just having a bit of lighthearted fun with you. You can't lick what you don't got, after all.
September 11, 2007 12:27 PM | Reply | Permalink
You have pointed out some of the philosophical issues with determining ownership and value of natural resources, much different than wealth created by labor.
Why do you think you “own” your wood. How did you come into its possession? Why does the Saudi family “own” the oil in Saudi Arabia?
If you are an aristocrat simply hording your wood, does not the taking of your wood for the good of the majority of the people create wealth?
September 11, 2007 1:20 PM | Reply | Permalink
How do you distinguish ownership of natural resources, as opposed to ownership of wealth created by labour?
As I understand you, natural resources are the property of whoever takes it and ownership is immaterial. Thus, property belongs to whoever steals it.
September 11, 2007 1:47 PM | Reply | Permalink
Determining the ownership of wealth created by labor is easy since it is new wealth. The determination of the ownership of of natural resources is more problematic since they are preexisting and finite. Unfortunately the criteria you put forth generally prevail.
September 11, 2007 2:12 PM | Reply | Permalink
However, the criteria of 'pre-existing' and finite is just an arbitrary line isn't it, it can apply to anything. Any antique is by nature pre-existing and finite
Take the artisan's chair. One month later, it is pre-existing and finite, to the thief who comes along.
You take the view that a tree is a natural resource whose ownership is questionable. Is this true of an apple tree that is planted as part of an orchard? What about a tree planted as part of a park?
I'm fascinated by your endorsement of a robbery based society.
Presumably your right to steal other peoples stuff involves a right to use reasonable force to overcome their resistance? Does this include deadly force?
If your right to steal other peoples stuff entitles you to the right to physical violence in pursuit of your 'property right to steal' does it include other rights to violence? Murder, rape, assaults and intimidation?
You are indeed quite the Libertarian.
September 11, 2007 3:54 PM | Reply | Permalink
This would only be true if the only inputs that mattered were "those who have gone before". This is a disingenuous misinterpretation of the real issue here, which is that it is not just previous economic activity, but previous and current social and political structures that lead to current wealth.
The reason why Bill Gates is wealthy (for example) isn't because he's a wonderful programmer or a gifted business leader: it's because he took advantage of a loophole in American copyright and patent law that let others create clones of the IBM PC: clones that he was subsequently able to copyright an operating system for.
Had "reverse engineering" not been legal, his operating system business would have been at the (vanishingly small) mercy of IBM; had copyright not applied to computer code--and most programmers prior to Bill didn't think it really did--he simply couldn't have made a profit on it in the first place.
Social structures, political systems, and all the rest: that's what the state provides that "libertarians" disparage at their own peril and disaster.
And, honestly, I wouldn't talk about "regurgitation" chum. Glass houses and suchlike.
September 11, 2007 4:41 PM | Reply | Permalink
How are these "rules" enforced? What if someone decides not to play by those rules, and take what they want. Why not? there isn't any consequences to him doing so in your scenario.
What happens to the Liberatrian, then? Does he just hand it over? Shoot to kill?
What?
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September 11, 2007 5:32 PM | Reply | Permalink
This touches (very lightly) on part of what I think the problem is with American society, or indeed with the modern world in general: we need something to balance off our material successes, and that something I must call "religion" for lack of a better word-- and I am sure that the strident secularists will now flame me thoroughly. But I am not advising any one particular religion, still less the sort of creepy, preverted corruptions that get called "religion" on the Right, where morality begins and ends in the boudoir. I am talking about the perception, common to all religions (and to the philosophical traditions of the ancients too), that the material world is not all there is and that we should not limit our goals and visions and striving to it. Nearly all the major religious traditions, inclduing ancient paganism, had a strong moral suspicion of great wealth and often enough they cajoled the wealthy to get rid of their hordes. Of course people are people and no society has ever gotten rid of greed or inequality, and often enough the formal clergy have been most notable for their hypocrsy on the issue. Nor do I think we need to go the extremes of Buddhist mendicants, Hindu fakirs, or medieval Christian ascetics. But we could do with a bit more of the attitude that underlies such platitudes as "You can't take it with you". We all need some level of material goods, but wealth can be as big an addiction as any drug, and it's one addiction we celebrate without a second thought.
September 11, 2007 6:48 PM | Reply | Permalink
Of Course! Mostly, you've got to do nothing to get anything done. You've got to be shallow to be really deep. We all know well, how you must be cruel to be kind. Lastly, let's not forget to be greedy if we really care for the welfare of others.
How could it be otherwise!
Kevin Russell Cook
September 11, 2007 9:32 PM | Reply | Permalink
And, quite the materialist too, it seems.
Mister Brown would be quite shocked to know just how much he has in common with ol' Karl Marx. No, touchy feely cultural determinism from these guys. Things have value! They (and all others of common sense) can tell you what that is too (but only to their own satisfaction). Such a shame, materialsts seldom agree on the basis of value when pressed.
Kevin Russell Cook
September 11, 2007 10:00 PM | Reply | Permalink
It's a matter of emphasis. It's always important to emphasize individuality and meritocracy, alongside interdependence and modesty. They depend on each other.
You were emphasizing only the latter, which frankly sounds like some of the worst elements of Marxism and other wholly communal thinking.
It's unfortunate when people on the left talk overly of communal interdependence and humility without mentioning the equal need for individuality and meritocracy.
It's imo important people try to be complete and well rounded in their thinking and arguments. Not simply to argue polemic to counter perceived imbalances. Yes the country has swung too far to the right, but we need a balanced solution, not to send the pendulum swinging hard to the left.
September 11, 2007 11:45 PM | Reply | Permalink
Yes, you are simplifying, to a point of absurdity.
September 11, 2007 11:48 PM | Reply | Permalink
I've often said Libertarians are just the mirror image of communists. Same simplistic ideology, same romantic fairy tales, same ruthlessness.
September 11, 2007 11:55 PM | Reply | Permalink
The Fed in present form is a poison pill. The Fed is only a quasi-governmental organization, the Fed Chairman wields enormous power, and was supposedly supposed to be above partisan politics.
However, now the Fed is essentially beholden to transnational interests. It's a government unto itself in many ways. A plutocratic power base which is often at odds with American democracy.
That sounds harsh, but think about it. The Fed serves Wall Street and trans-nationals.
September 12, 2007 12:11 AM | Reply | Permalink
I'm no expert on libertarian philosophy, but I think they would concede that there needs to some organization with the power to enforce contracts and punish criminals. They think that a lot of the functions now performed by government can be performed by private organizations, unrealistically so in a lot of cases in my opinion.
September 12, 2007 11:51 AM | Reply | Permalink
I guess by preexisting I mean resources that were created naturally without the intervention of humans and are not renewable except over a long period of time. Trees are not all natural resources since the may be grown on farms as in your apple orchard example.
I’m not really advocating a theft based society. I was really just responding to the hypothetical question of whether my furniture maker could create value by making furniture from illegally acquired wood. If the reason the wood is illegal is that society has determined that the living tree is more valuable than furniture, then the answer is no. If the reason that the wood is illegal is an irrational one, then the furniture would add overall value. I guess I am not really arguing that my furniture maker should indeed come over and steal one of your trees.
September 12, 2007 12:09 PM | Reply | Permalink
The existence of social structures and political systems does not detract in the least form my assertion that my furniture maker naturally owns the furniture that he makes. Now he needs to surrender some of his furniture in return for the public goods he enjoys, but that has no bearing on the issue of ownership.
September 12, 2007 12:20 PM | Reply | Permalink
The real problem of your argument is that early on the Supreme Court of the United States held that the preamble of the Constitution (where you find the reference to promoting the General Welfare) is not part of the Constitution. Therefore you cannot make a constitutional argument from it.
I know this because I tried to make that very argument in one of my undergraduate law classes.
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September 12, 2007 9:55 PM | Reply | Permalink
"Some kind of organization?"
Like a... government?
Librtarians, in my experience, are only interested in a government that protects their interests in grabbing everything and anything they can beg, borrow, or steal. Just them, though. Nobody else.
Gee, think the upper 1% in this country are sympathetic to Libertarians?
It's a pretty stupid and shallow philosophy, which isn't surprising, as it was drawn up--for the most part--by a clueless writer of "bodice ripper" fiction.
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September 13, 2007 5:53 AM | Reply | Permalink
Most of Calvin's theology, including predestination, is cribbed from Augustine of Hippo.
Divine Right, supposed evidence of God's favor and will, was a Catholic Doctrine used by kings and the aristocracy to justify their positions. Calvin simply extended the idea to include the bourgeoisie, not in so many words of course. Many of the same scriptures are used to support both divine right and election.
It is doubtful that the Catholic Church still espoused the doctrine by the time Weber was researching.
It has been a while since I read Weber but I don't think pointing out the similarities between Catholic and Protestant predestination doctrines challenges anything he wrote. Catholics used predestination not only to justify divine right but also to keep the serfs calm, in their foreordained places and accepting of their supposed betters. Protestants used predestined election it to signify grace and to explain as well as justify differences in wealth accumulation. It is the same idea, God's will, applied to different social groups at different times.
Weber wrote about the effect of the idea on Protestants who lacked the accepted authority to assure them of their place that Catholics have. I don't see that that conflicts with my premise at all.
September 17, 2007 7:34 AM | Reply | Permalink
But am I one of those WASP's? Why do you presume I am? And why do you interpret the perfectly natural Protestant aversion to Catholicism as especially Southern or even American? After all, Protestantism is by literal definition anti-Catholic.
September 17, 2007 7:46 AM | Reply | Permalink