The Market Two-Step

It is one of the neoliberal commandments that innovation in markets can always rectify any perceived problems thrown up by markets in the first place. Thus, whenever opponents on the nominal left have sought to ameliorate some perceived political problem through direct regulation or taxation, the Russian doll of the [neoliberal] thought collective quickly roused itself, mobilized to invent and promote some new market device to supposedly achieve the ‘same’ result. But what has often been overlooked is that, once the stipulated market solution becomes established as a live policy option, the very same Russian doll then also rapidly produces a harsh critique of that specific market device, usually along the lines that it insufficiently respects full market efficiency. This seemingly irrational trashing of neoliberal policy device that had earlier been emitted from the bowls of the [neoliberal thought collective] is not evidence of an unfortunate propensity for self-subversion or unfocused rage against government, but instead an amazingly effective tactic for shifting the universe of political possibility further to the right.

Philip Mirowski, Never Let a Serious Crisis Go to Waste

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Richard Cohen, Michael Bloomberg, and the Suspiciousness of Black Men

I haven’t written anything about the acquittal of George Zimmerman for the killing of Trayvon Martin. Anything I’ve wanted to say directly about the case has been said far better by others. But I did want to weigh in on a tangential matter.

There was a great deal of outcry over an awful column by Richard Cohen (who has a long and undistinguished history) justifying Zimmerman’s actions by insisting that Martin’s wearing of a hoodie made him suspicious.  [No link, but here’s Ta-Nehisi Coates]  That the Washington Post continues to feel that valuable column space should be taken up by Cohen tells us something important about the Post. It’s  perfectly understandable for people to be outraged by Cohen. But what has troubled me is the difference between the reaction to Cohen and another figure who’s tried to justify such things, one who in addition is actually overseeing the policy: New York City Michael Bloomberg.

Bloomberg is undeniably an authoritarian. It’s strange that he’s perhaps best known on this score for his law limiting the size of sugary drinks (forcing those who want more to buy two instead of one, not exactly a grave threat to civil liberties to my mind). But getting beyond that, Bloomberg has overseen NYC’s racist stop and frisk policy.

The Definition of the Alternatives is the Supreme Instrument of Power

The definition of the alternatives is the supreme instrument of power; the antagonist can rarely agree on what the issues are because power is involved in the definition. He who determines what politics is runs the country, because the definition of alternatives is the choice of conflicts, and the choice of conflicts allocates power.

E.E.  Schattschnieider, The Semisovereign People: A Realist View of Democracy (emphasis in the original).

The Definition of Insanity: Democrats Working to Undermine Financial Regulation

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.”

Rob Portman, Strategy, and Politics of Character

[Update: via Dan Nexon, check out this post on this issue by David Meyer, Coming Out and Opinion Change.]

This week, conservative Senator Rob Portman announced his support for marriage equality.  Portman reported that his experience with his own son was the catalyst for his change of position.

The moment of the Marriage Equality Act vote at the capitol building in Albany NY June 24, 2011. In the balcony of the chambers. photographed by the Celebration Chapel of Kingston NY.

“I’m announcing today a change of heart on an issue that a lot of people feel strongly about,” Portman said. “It has to do with gay couples’ opportunity to marry. And during my career in the House and also last couple years here in the Senate, you know, I’ve taken a position against gay marriage, rooted in part in my faith and my faith tradition. And had a very personal experience, which is my son came to Jane, my wife, and I, told us that he was gay and that it was not a choice and that, you know he, that’s just part of who he is, and he’d been that way ever since he could remember.”

Portman said his son’s revelation led him to drop his opposition to same-sex marriage. “And that launched an interesting process for me, which was kind of rethinking my position,” he said. “You know, talking to my pastor and other religious leaders and going through a process of, at the end, changing my position on the issue. I now believe people ought to have the right to get married.”

Dirty Hippies, Inequality, and the Minnesota Model

The great Mark Price has a piece in the Guardian today, Wealth inequality will keep growing unless workers demand better, that gets to the heart of the problem with our broken economy’s failure to provide the security, opportunity, and basic needs we all deserve.  Two points are worth mentioning. First, it’s taken as a matter of faith that conservative prescriptions for the economy are easy to understand and more left-leaning approaches are more complex. I think that’s rubbish. Read Mark here. It’s not difficult at all. If people don’t have jobs, they can’t spend, and we all suffer. If there are way more applicants then there are jobs, there’s no way out of this mess.  Inequality is the problem, equality the solution. It’s not that hard.  (I made the same point about Robert Reich before).  He also discards the silly notion that government has been trying to fix this problem, or that the solutions are unclear.

An Inescapable Network of Mutuality

Moreover, I am cognizant of the interrelatedness of all communities and states. I cannot sit idly by in Atlanta and not be concerned about what happens in Birmingham. Injustice anywhere is a threat to justice everywhere. We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly. Never again can we afford to live with the narrow, provincial “outside agitator” idea. Anyone who lives inside the United States can never be considered an outsider anywhere within its bounds.

You deplore the demonstrations taking place in Birmingham. But your statement, I am sorry to say, fails to express a similar concern for the conditions that brought about the demonstrations. I am sure that none of you would want to rest content with the superficial kind of social analysis that deals merely with effects and does not grapple with underlying causes. It is unfortunate that demonstrations are taking place in Birmingham, but it is even more unfortunate that the city’s white power structure left the Negro community with no alternative.

Martin Luther King, Letter from a Birmingham Jail (1963)

What to Do About Jack Lew

By Official White House Photo by Pete Souza [Public domain], via Wikimedia Commons

There is a really interesting discussion going on that started on Twitter, and has since moved to the blogs, sparked by Josh Eidelson’s excellent piece on accusations of union busting against current White House chief of staff and Treasury Secretary nominee Jack Lew.

Lew, the former director of the Office of Management and Budget under President Clinton, joined NYU as chief operating officer and executive vice president in 2004. At the time, NYU was the only private university in the United States whose graduate students had a union contract. By the time Lew left two years later, NYU graduate students had lost their collective bargaining rights. In between, picketers hoisted “Wanted” posters with his face on them.

Reached over email, Andrew Ross, NYU professor of social and cultural analysis, charged that “the administration followed every page of the union-busting playbook, as instructed by the anti-union lawyers retained for that purpose.” Ross, a co-editor of the anthology “The University Against Itself: The NYU Strike and the Future of the Academic Workplace,” wrote that despite broad faculty and community support for the union, “students on the picket line were threatened with expulsion. There was no indication that Lew, as a senior member of the team who executed this policy, disagreed with any of these practices. To all appearances, he was a willing, and loyal, executor of decisions that trampled all over the students’ democratic right to organize.”

[snip]

By the time Jack Lew left his post as NYU COO to become COO of Citigroup Wealth Management, the six-month strike was over, and the union had lost.

When we talked last year – soon after Obama had promoted Lew from his OMB director to his chief of staff — Local 2110 president Maida Rosenstein told me that Lew had acted as “the point person” in “representing management’s position” against GSOC.

Josh’s piece generated some attention, leading Elias Isquith to question whether the Treasury Secretary has anything to do with labor unions. Shawn Gude and Erik Loomis both have responses that I largely agree with. But I wanted to add a couple of thoughts that relate to some of the themes I’ve been talking about here.

How the NRA Shifted the Debate: Or One Way Conservatives are Better at Politics

I’ve harped here on the notion, both popular and academic, that ‘talk’ doesn’t matter – that decisions are the key unit of politics, they are action, driven by some set of fundamental forces, unaffected by interactions among people. This is connected to an idea I’ve called democratic efficiency: that public opinion translates automatically into public policy, like a political market (market here being the imagined one of economic theory rather than anything that exists in the real world). This position renders the vast bulk of political activity nonsensical, but it has the handy consequence of ensuring that any outcome is explainable–some set of actors or policies won out because they were favored (probably by the voters), the proof being that said actors or policies won out. It’s circular, of course, yet somehow deeply satisfying.

I was thinking about this while observing the response to the horrific shooting in Newtown.  Many liberals took the shooting as license to demand gun control, something that has been verboten for quite some time. (There has also been a good deal of discussion of mental health, which on its own is a good thing but somewhat troubling as an anti-violence strategy, but let’s leave that aside).  At the same time, numerous conservatives announced their own support for things like arming teachers.

Drawing Lines on Social Insurance: Turning Tough Talk into Pressure

Many people are taking heart in hard lines being drawn by progressives to oppose benefit cuts to Social Security, Medicare or Medicaid.   As Alex Seitz-Wald notes, Politico is reporting a proposed deal to include $400 billion over 10 years in “entitlement” cuts.  Keith Ellison, chair of the Progressive Caucus, said “Progressives will not support any deal that cuts benefits for families and seniors who rely on Medicare, Medicaid and Social Security to put food on the table or cover their health costs.”  Outside groups were making similar noises.

“If this report in Politico is correct, then some ‘senior Democrats’ are sorely misguided about where their base stands. So let me be crystal clear. Any benefit cuts in Medicare, Medicaid, or Social Security, including raising the retirement or eligibility age, are absolutely unacceptable,” Ilya Sheyman, the campaign director at MoveOn.org told Salon. “More than 80 percent of MoveOn’s 7 million members say they want us to fight a deal that cuts those benefits, even if it also ends all of the Bush tax cuts for the top 2 percent. And that’s a mainstream position everywhere except in the lobbyist-cash-infused D.C. cocktail circuit,” Sheyman continued.

There will be consequences, he warned, for Democrats who support a deal that cuts entitlements. “Bottom line: Any Democrat who votes to cut Medicare, Medicaid or Social Security benefits does so at his or her own peril, and shouldn’t be in the least bit surprised to be held accountable by MoveOn members in the next primary election.”

Unfortunately, such statements don’t mean much. Members of the Progressive Caucus have made threats not to vote for things in the past and then didn’t follow through.  MoveOn and other groups have yet to show they have any ability to punish Democrats for betraying progressive values.  It will be small consolation if Congress seeks benefit cuts which undermine social insurance and progressive groups demonstrate they can punish Democrats for it after the fact.

But there is a bigger problem.  Even if the threat to punish Democrats for voting wrong could be credibly made, it’s not clear why that should work. Members of Congress all can look forward to well-paying lobbying jobs after leaving office.

The truly powerful don’t wait until the vote to flex their power. They go after people for merely suggesting things that deviate from their interests. They seek to pressure the first people to step out of line, long before a vote, to ensure that nothing threatening ever comes up for a vote.  If anyone, whether Keith Ellison, MoveOn, unions, or activists, wants to demonstrate their credibility–in terms of their commitment to hard lines or their willingness  to hold others accountable–they can do it now. They can do it by jumping on anyone who suggests that benefit cuts should be part of the deal, or who conflates benefit cuts with other spending cuts, or who (falsely) claims that Social Security is driving the deficit or that Medicare in inefficient, or otherwise use scare tactics to make cuts seems inevitable, should be viciously attacked.   They could start with Dick Durbin or Chris Van Hollen (“Mr. Van Hollen also said changing Social Security and increasing the Medicare eligibility age above 65 should be part of negotiations.”).  And when people say the right thing, that needs to be something that energizes us to demand that others do the same, not an opportunity to demobilize.