Tag Archives: United States

How Trump’s Economic Chickens Are Finally Coming Home To Roost

By Steve Denning – Assisted by the least qualified White House staff in history, Trump has continued to breach conventional wisdom and practice. Yet Liberal analysts have watched with dismay as polls have showed stable support from Trump’s base, no matter how outrageous the behavior. Surely, they said, the economic reality of what Trump is up to must eventually kick in.

Now a trifecta of bad economic news for his base raises the question whether that time has finally arrived:

The comfort offered by Trump’s fictions is too seductive to be undermined by facts. To Trump’s base, the beautiful myth of “the Wall” is, and remains, more attractive than the real world.

In this way, “the Wall” has become a code-name for the racist, anti-immigrant isolationist policies of Trump’s presidency and a symbol of multiple toxic policies,

There’s a catch with the use of fictions in politics. “The chief disability of propaganda,” wrote Hannah Arendt in her classic book, The Origins of Totalitarianism, “is that it cannot fulfill the longing of the masses for a completely consistent, comprehensible, and predictable world without seriously conflicting with common sense.”

For a time, common sense can be held at bay and prevented from intruding into the cocoon of reassuring fiction. Yet the deliberate distortion of reality is also the cause of propaganda’s inevitable downfall. It is the inexorable collision with reality that eventually ruins the cocoon. It’s not a matter of whether. It’s only a question of when. more>

A New Americanism

Why a Nation Needs a National Story
By Jill Lepore – Carl Degler issued a warning: “If we historians fail to provide a nationally defined history, others less critical and less informed will take over the job for us.”

The nation-state was in decline, said the wise men of the time. The world had grown global. Why bother to study the nation?

Francis Fukuyama is a political scientist, not a historian. But his 1989 essay “The End of History?” illustrated Degler’s point. Fascism and communism were dead, Fukuyama announced at the end of the Cold War.

Fukuyama was hardly alone in pronouncing nationalism all but dead. A lot of other people had, too. That’s what worried Degler.

Nation-states, when they form, imagine a past. That, at least in part, accounts for why modern historical writing arose with the nation-state.

But in the 1970s, studying the nation fell out of favor in the American historical profession. Most historians started looking at either smaller or bigger things, investigating the experiences and cultures of social groups or taking the broad vantage promised by global history.

But meanwhile, who was doing the work of providing a legible past and a plausible future—a nation—to the people who lived in the United States? Charlatans, stooges, and tyrants.

The endurance of nationalism proves that there’s never any shortage of blackguards willing to prop up people’s sense of themselves and their destiny with a tissue of myths and prophecies, prejudices and hatreds, or to empty out old rubbish bags full of festering resentments and calls to violence.

When historians abandon the study of the nation, when scholars stop trying to write a common history for a people, nationalism doesn’t die. Instead, it eats liberalism.

Maybe it’s too late to restore a common history, too late for historians to make a difference. But is there any option other than to try to craft a new American history—one that could foster a new Americanism? more>

Is America’s future capitalist or socialist?

By Ezra Klein – In American politics, and particularly in the Democratic Party, the primacy of capitalism is, for the first time in ages, an open question.

Sanders is expected to run again in 2020, and to run with the support of a grassroots movement that thrills to his break with capitalist convention. He’ll face, among others, Massachusetts Sen. Elizabeth Warren, who says one key difference between her and Sanders is that she’s “a capitalist to my bones.”

But what are the actual differences between liberal reformers of capitalism, like Warren and Pearlstein, and democratic socialists, like Sanders? I invited Pearlstein to discuss his book, and the broader capitalism vs. socialism divide, with Bhaskar Sunkara, editor of the journal Jacobin, and author of the forthcoming book, The Socialist Manifesto. Their debate follows, lightly edited for style and length.

A CEO like Charles Wilson could say “what was good for the country was good for General Motors and vice versa,” but he was responding to the same exact market pressures as CEOs today. The only difference is that he was constrained by unions and a liberal political coalition.

Social democracy was always predicated on economic expansion. Expansion gave succor to both the working class and capital. When growth slowed and the demands of workers made deeper inroads into firm profits, business owners rebelled against the class compromise. And they were in the structural position to force their own solutions, even in countries like Sweden where there were experiments with wage-earner funds and other left-solutions to the crisis. more>

Updates from Chicago Booth

No, America is not more divided than ever before
By Howard R. Gold – It may seem sometimes like the United States is coming apart. “While rural America watches Duck Dynasty and goes fishing and hunting, urban America watches Modern Family and does yoga in the park,” write Chicago Booth’s Marianne Bertrand and Emir Kamenica.

“The economically better-off travel the world and seek out ethnic restaurants in their neighborhoods, while the less well-off don’t own a passport and eat at McDonald’s.” Conservatives, they write, favor masculine names for boys while liberals prefer more-feminine names, and men play video games while women browse Pinterest.

These kinds of cultural splits can have economic, social, and political consequences in that they may ultimately reduce social cohesion within a country. But according to Bertrand and Kamenica, who measured cultural divisions over time, the cultural gap in the US is largely stable—not widening.

The data reveal that divisions definitely exist. Watching certain movies or television shows, reading certain magazines, or buying particular consumer products are predictable markers of traits such as how much money people make or how far they got in school. more>

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How lottery money helped build the United States

By Jonathan D. Cohen – Lotteries present an obvious win for states, as gamblers voluntarily provide millions of dollars to help fund popular programs.

The use of lotteries to raise revenue is as old as the nation itself. In the 1700s and 1800s, lotteries were foundational to the operation of government in the United States and to the European settlement of North America. Like today’s gamblers, colonial Americans turned to lotteries in the hopes that the government could provide services without leveling taxes.

The urge to play lotteries goes back centuries as well. Critics often condemn lottery players as subverting the work ethic, that the pursuit of gambling defies a longstanding American tradition of getting ahead through work, not luck.

But gambling has been an American pastime since before the foundation of the republic, as generations have bet on the odds of changing their lives through fortune. more>

The World Order Is Starting to Crack

By Stewart Patrick – When Donald Trump was first elected U.S. president, foreign observers hoped that he would moderate his more outrageous campaign positions as the practicalities of governing socialized him to adopt more conventional stances. Failing that, they hoped to contain the damage until the U.S. electorate returned to its senses. Trump’s scythe has sliced through these thin reeds.

For a onetime chaos candidate, Trump has been remarkably methodical in his efforts to destroy the liberal international order.

Stunned U.S. allies are now adapting to their new normal by taking steps previously unimaginable. They are hedging their bets in dawning recognition that the America of old may never return, regardless of who succeeds Trump. They are pursuing strategic autonomy, seeking to decouple from an unpredictable United States. And they are considering how to restore some semblance of international cooperation in a world left rudderless in the wake of the U.S. abdication of global leadership.

Collectively, Trump’s actions have sent U.S. allies reeling, shaking their long-standing faith in the West as a community of shared values, interests, and institutions. In response, they are working with China to safeguard globalization, expanding their own strategic autonomy vis-à-vis Washington, and grasping to defend what remains of the open world from the depredations of its erstwhile creator.

Trump’s trade protectionism has done the seemingly unimaginable. It has allowed mercantilist China—which flagrantly steals intellectual property, restricts foreign investment, and protects entire sectors from foreign competition—to portray itself as a bastion of multilateral trade. more>

America’s Worsening Geographic Inequality

By Richard Florida – It’s not just economic inequality—the gap between the rich and the poor—that is growing ever wider. Geographic inequality, the divide between rich and poor places, is too.

America’s growing geographic or spatial inequality is documented in great detail in recent studies from the Economic Innovation Group (EIG) and The Hamilton Project of Brookings Institution.

Their analysis confirms the decline of America’s once-sturdy middle-class neighborhoods, and the splitting of the nation into areas of concentrated advantage, juxtaposed with areas of concentrated disadvantage.

Fewer than 40 percent of Americans, 120 million or so, live in middle-class neighborhoods which the study’s authors classify as “comfortable” and “mid-tier.” Another third, 106 million people, live in “at-risk” or “distressed” communities. An advantaged quarter or so of Americans, 86 million, live in affluent, “prosperous” neighborhoods. Furthermore, the gap between advantaged and disadvantaged neighborhoods has increased in the past decade or so. more>

Updates from Adobe

BUST Magazine at 25: You’ve Come a Long Way, Baby
By Jenni Miller – 25 years ago, BUST Magazine began life as a cut-and-paste zine that the founders quietly photocopied while at their then-day jobs.

BUST was a beloved side hustle for co-founders Debbie Stoller and Marcelle Karp, who were eager to spread messages about feminism and pop culture. Art director and now co-publisher Laurie Henzel, who previously worked at Rolling Stone doing mechanical graphic design with an X-ACTO blade and physical type, found a cheap printer in Queens and taught herself what was then called desktop-publishing software.

In the early days, the BUST aesthetic was low-fi and DIY, like the underground zines of that age—but sexier. more>

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Updates from Chicago Booth

The danger of making policy based on assumption
By George J. Stigler – The denunciation of American complacency, however, is not my purpose, at least not my explicit purpose. I admire the humane and generous sympathies of our society—sympathies that extend to the uneducated and the uncultured and the unenterprising and even the immoral as well as to the educated and the cultured and the enterprising and the moral.

We are a people remarkably agreed on our basic goals, and they are goals which are thoroughly admirable even to one, like myself, who thinks one or two less fashionable goals deserve equal popularity.

Fortunately, our agreement on basic goals does not preclude disagreement on the way best to approach these goals. If the right economic policies were so obvious as to defy responsible criticism, this would be an intolerably dull world. In fact, I believe that each generation has an inescapable obligation to leave difficult problems for the next generation to solve—not only to spare that next generation boredom but also to give it an opportunity for greatness. The legacy of unsolved problems which my generation is bequeathing to the next generation, I may say, seems adequate and even sumptuous.

It is not wholly correct to say that we are agreed upon what we want but are not agreed upon how to achieve it. When we get to specific goals, we shall find that our agreement does not always extend to orders of importance. For example, some people are willing to preserve personal freedom of choice for consumers even if the choice is exercised very unwisely in some cases, and others will be more concerned with (say) the health of consumers which these unwise choices may impair. Nevertheless, it is roughly true that we know where to go.

We do not know how to get there. This is my fundamental thesis: we do not know how to achieve a given end. more>

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How The Handling Of The Financial After-Crisis Fuels Populism

By Guillaume Duval – Ten years after the collapse of Lehman Brothers people are frequently asking themselves why the crisis has done so much to strengthen populism and nationalism everywhere you go. However, economically and socially, the process that lies behind this development is, unfortunately, all too easy to describe.

During the aftermath of the 2008 crisis, central banks’ rescue of finance continued on an unprecedented scale for ten years with what is called Quantitative easing (QE). The striking effect of this was to send prices of financial assets sky-high and thereby substantially enrich the bankers, speculators and the already rich holders of these assets at levels that are much higher than before the crisis.

At the same time, ordinary people found themselves lastingly out of work on a huge scale. Governments whose own finances deteriorated steeply – not least because of their aid to the financial sector – rushed to cut back on their spending, especially on welfare. Everywhere, classic right-wing governments but also social-liberal left ones as in France adopted deflationary policies to cut the cost of labor and loosen up the labor market rules, thus making ordinary people’s working and living conditions far worse. While cutting again the taxes on the super-rich and corporate earnings to preserve the country’s “attractiveness.”

These public policies – that have put all European countries permanently on the edge of recession and deflation – are also the main reason for the pursuit of the above-mentioned monetary policy that has so significantly increased inequalities. more>