Notes on a Theory…

Thoughts on politics, law, & social science

Archive for April 2013

Forbath on the Distributive Constitution

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Progressives have forgotten how to think about the constitutional dimensions of economic life. Work, livelihood, and opportunity; material security and  insecurity; poverty and dependency; union organizing, collective bargaining, and workplace democracy: for generations of American reformers, the  constitutional importance of these subjects was self-evident. Laissez-faire, unchecked corporate power, and the deprivations and inequalities they bred were  not just bad public policy—they were constitutional infirmities.  Today, with the exception of employment discrimination, such concerns have vanished from progressives’ constitutional landscape.

That has to change.

Today, Matt Dimick called attention Williams Forbath’s piece in Dissent, “Workers’ Rights and the Distributive Constitution” which opens with the above quote. It makes a good follow up to my last post on the role of money in putting deeply unpopular Social Security cuts on the agenda, or more simply, the power of the donor class. Forbath notes that conservatives use constitutional language to advance their agenda, while progressives often respond defensively.  But Forbath calls for progressives to recapture a constitutional tradition that would insist that government has not only the power but the duty to push back against the conservative assault on the New Deal and Great Society.

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Written by David Kaib

April 23, 2013 at 1:39 pm

Chained CPI, Social Insurance and Two Kinds of Politics

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Social Security was enacted in response to mass mobilization. It can only be saved through mass mobilization.

The president’s new budget proposal includes both Chained CPI, a cut in Social Security benefits, and cuts in Medicare benefits.  As Shawn Fremstad  notes, the White House’s assurances that the ‘most vulnerable’ will be protected are not to be taken seriously.

It’s troubling for any number of reasons, including that the defenses offered are nonsense.  Chained CPI is arguably a more accurate measure for working people, but the existing measure clearly underestimates inflation for seniors, who spend far more of their income on health care, where costs are rising faster. Social Security doesn’t contribute to the deficit, which doesn’t matter (at least at the moment), and no one actually cares about it, and Medicare costs could be dealt with through costs controls rather than benefit cuts. Read the rest of this entry »

The Definition of Insanity: Democrats Working to Undermine Financial Regulation

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Capitol-Senate

By Scrumshus (Own work) [Public domain], via Wikimedia Commons

[Updated below]

Erika Eichelberger has a great and depressing story on how some Democrats (and more Republicans), are trying to weaken the major financial regulation legislation Dodd-Frank, passed in response to the financial crisis, before it takes full effect.  This massive legislation requires a great deal of administrative rule making to implement it

A group of 21 House lawmakers—including eight Democrats—is pushing seven separate bills that would dramatically scale back financial reform. The proposed laws, which are scheduled to come before the House financial-services committee for consideration in mid-April, come straight on the heels of a major Senate investigation that revealed that JP Morgan Chase had lost $6 billion dollars by cooking its books and defying regulators—who themselves fell asleep on the job. Why the move to gut Wall Street reform so soon? Financial-reform advocates say Democrats might be supporting deregulation because of a well-intentioned misunderstanding of the laws, which lobbyists promise are consumer-friendly. But, reformers add, it could also have something to do with Wall Street money.

“The default position of many members of Congress is to do what Wall Street wants. They are a main source of funding,” says Bartlett Naylor, a financial-policy expert at the consumer advocacy group Public Citizen. “These are relatively complicated [bills]. It’s easy to come to the misunderstanding that they are benign.”

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Written by David Kaib

April 3, 2013 at 10:58 pm

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