I was surfing the net tonight and happened upon C-SPAN’s coverage of Minority Leader Nanci Pelosi (Dem. CA) at Harvard’s Kennedy School of Government. In response to a question from one of Harvard’s best and brightest women students about using market solutions to address social problem, Pelosi gave a non-answer answer to the question by pandering to her ‘good works’ and then suggesting they talk later.
The young woman is clearly a well-meaning person who has come to believe the market place can be used to solve social problems. This is a myth perpetuated by both Rs and Ds. If poverty, racism, sexism, ageism et al. were amenable to market solutions – such problems wouldn’t exist today. After all we’ve had conservatives in power in this nation since LBJ left the West Wing in ‘68.
Richard Nixon was a conservative who’s Bush II like agenda was derailed by the Vietnam War and then Watergate. But let’s be honest, he wasn’t alone. For all their rhetoric about compassion and decency – Gerry Ford (our national nightmare is over), Jimmy Carter (the malaise president), George Bush (a thousand points of light) and Bill Clinton (who ended welfare), each governed as an economic conservative.
Their political rhetoric may have sounded different, but their governance was reasonably similar. After all – why do you think Alan Greenspan could last so long at the FED? As African-American used to say about Jimmy Carter, be careful of candidates who sing your hymns. One can practice conservative or liberal politics on the symbolic level, but deliver the goodies to the same old corporate crowd in Gucci Gulch.
Now what’s the record of moderate conservatism under Nixon, Ford, Carter, Bush I and Clinton and radical conservatism under Reagan and Bush? The middle class has been eviscerated. Those lunch bucket Ds who voted for Reagan in ’80 have seen their lives and lifestyles downsized, especially in the rust belt states of the upper Midwest. The 30,000 GM employees are just the latest casualties in the war against the working class.
As the once economically secure middle class becomes increasingly impoverished by losing their health benefits, their pensions, their job security – they are joining the ranks of the working poor or those we euphemistically say are facing housing, food and health care insecurity. They are becoming what Karl Marx termed the lumpen proletariat or what today we’d term the Wal-Martized working poor.
The fact is that 35 years of conservative governance has made Wall Street fat off the fruits of globalization but Main Street a ghost town of boutique and antique stores. It’s like the scenes from the movie “Back to the Future”. Small towns have lost their businesses to strip malls and the inner city to the big malls in the burbs. The arrival of the big box stores puts another nail in the coffin of small and big cities, suburbs and exurbs, rural and urban USA.
The fact is that the market place has no capacity to provide health care to the working poor, decent housing to those who’s incomes are below 50% of MFI, quality schools to inner city youth or rural poor, or family wage jobs in an economy dominated more and more by service sector jobs. And the dot.com bust of the ‘90s shows that nobody is safe from being downsized no matter what their skill set, education or experience!
The only reason areas like the Portland metro area are attractive and growing is because of the public infrastructure that has been built at federal taxpayer expense over the last 40 years. Examples include the transit mall, light rail, urban renewal (Civic Center, PSU’s campus, the Schnitzer, the Pearl and now South Waterfront). Minus huge public subsidies by the federal and state government – none of this would be happening! The lesson here is that the market requires public investments to make it work. It always has!
But at the end of the day, such public/private partnerships don’t benefit all residents of Portland or Oregon equally. Ask folks in Coos Bay, Astoria, Redmond, Roseburg. The “other” Oregon proves that without governmental incentives – subsidies, tax breaks (credits, deductions etc.) – Oregon as a natural resource rich state is simply another colony in the lower 48. Without the deep pockets of federal and state tax dollars – public goods waste away.
We can build affordable housing in Oregon on a 1 to 13 match of state money to other money. But the ‘other’ money is a blend of federal tax dollars and private capital underwritten by tax credits and deductions. Only by a heavy public subsidy will private money come into the picture, one way or the other. And then it’s not enough! At the current rate it will be forty years before we can meet the current need! So much for the market.
But thanks to the work of a generation of Oregon leaders from Tom McCall to Mark Hatfield, from Les AuCoin to Neil Goldschmidt, from Vic Atiyeh to Barbara Roberts Oregon has been able “to fly with her own wings”, sort of. But this all came crashing down in Oregon with the passage of Measure 5, 46 and 50 in the ‘90s and continues to spiral out of control under the politics of lowered expectations.
Current leaders on both sides of the political fence in Salem have answered the call to dealing with Oregon’s economic doldrums by passing a permanent ‘kicker’ law, relying more and more on gambling as a source of revenue and fawning over corporate giants like Intel and Nike by giving them huge tax breaks. And when a local mayor dares to challenge Phil Knight’s ‘rule’ – the establishment rallies to the bullies’ side. So much for the courage to be!
As long a Democrats like Nanci Pelosi and Ted Kulongoski pimp for corporate America and Oregon – we will see our economy increasingly become one where “all are equal, but some are more equal than others.” In that they are no different than Dubya and Newt. Their mood music on issues like gay rights, affirmative action, choice may sound different from their neo-con counterparts, but they govern of, by and for the corporate elites who after all bankroll their campaigns!
We need to end the fraudulent claims by neo-cons of the right, left and center that the market is the greatest force for social amelioration and justice. The market in the USA has never been a neutral force, it’s always benefited those with access and big bucks while using the public’s money to subsidize their private dreams under the aura of the public good. Isn’t that the lesson of the scandal du jour in DC these days out of Tom Delay’s stable of former staff and allies? Remember Tea Pot Dome?
If there were a market solution to health care, to affordable housing, to quality schools, to protecting the environment – the ‘80s should have taken us to the Promised Land. Instead, it has taken us to the brink of two societies – one rich and one poor, one white and one Black, one empowered and one alienated.
Katrina showed us the soft underbelly of the neo-con lie become a nightmare, that we can have something for nothing. PT Barnum was right, in America there is a sucker born every minute. We’ve got to quit being suckered by the rhetoric of so-called realism be it from Newt Gingrich or Nanci Pelosi. Otherwise the lesser among us will continue to suffer the consequences of that soft bigotry of lowered expectations. And those of us in the middle class will become increasingly marginalized.
RAD’s answer – lets use the power of the market which generates huge revenue streams, at the state and federal level, so we can tax a significant portion of that base to do the public good. I’ll let the economists argue where we draw the line in the sand on levels and types of taxation. But let’s put the public good at the head of the bus, not at the back of the bus.
Lincoln was correct, government exists to do those things, which we alone can’t do for ourselves. That includes funding good public schools, K-12 and great public universities; a good transportation system (from ports, to airports, to interstate highways to river systems) along with providing for the general welfare and the common defense.
But there is NO FREE LUNCH. Taxes are the coin of the realm, they are the price of civilization. The market did not explore the West – government did thanks to the vision of Thomas Jefferson, the largess of the Congress’s purse strings and the spirit of Lewis & Clark. Those of us living in Oregon are their sons and daughters. Let’s remember it was the public treasury which bank rolled westward progress – be it by explorers, wagon trains or railroads.
We confiscated Indian lands and gave them away cheap to settlers; we granted railroads free land to build their ribbons of rail. And while this was being done - the US Cavalry and federal marshalls established law and order in the Old West.