John and Johnson . . .

    "the people who take a shower before they go to work get bailed out, those who need to take a shower after work get thrown out"

-Leo Gerard

President, United Steelworkers

  Once, many years ago, my good friend Leslie remarked on my style with women, she said "you are like a wolf in sheep's clothing but your costume isn't very good you have fangs and claws hanging out". She was offering equal parts jest and friendly advice, but I offer that as a premise to this post in response to a comment on my previous offering, and events since then. My last post was a dance, being on two practical sides of similar ideological issues. I tried to appear rationale as opposed to a hypocritical. 

   Thanks to courage I oddly found watching Rachel Maddow's show last night, I will now own my hypocrisy.  In a segment comparing the hand-wringing over the "Big 3 bailout" to the weekend, cover of night cash injection to citigroup of roughly the same amount, she highlighted a concept that I have flirted with, and am now prepared to marry. The inherent societal inequity between the ease of white collar assistance and the aversion to blue collar aid.

  Quietly, while many were watching football, or finishing their shift at their second or third part time job to make ends meet, the Citigroup was offered 20 billion new dollars so that perhaps they would not have to layoff 52,000 employees. In our current climate I have no problem with spending money to keep people employed. 

  However, citigroup just got 25 billion to buy other failing banks, in which they failed, they also proceeded to spend 400 million for naming rights to the new home of the New York Mets. (I'm a diehard Met's fan, which I realize removes my last shreds of credibility and judgement). Saving 52 thousand jobs is laudable, the money citigroup received comes out of the previously dedicated T.A.R.P. funds, and to their credit citigroup did present a plan that is "workable" in the view of outside objective experts. But with that in mind how can our federal government swoop in to salvage 52 thousand white collar jobs without controversy yet stall at the prospect of saving millions of direct and ancillary jobs with the same price tag? If citigroup like the big 3 is in it's predicament because of mismanagement then clearly management is not the decision making standard. If 52 thousand medium to high paying jobs trump an untold amount of lower wage jobs then clearly maximizing employment salvage is not the trigger.

  For myriad reasons people of all walks of life have mused that this is a dangerous time in terms of the direction of the American Republic. To pile on to the paranoia I will submit my greatest fear. I offer that we are taking steps towards feudalism. We are on this path not due to malice but rather by the temptations of good intentions. Here is my case;

  1. People are born into an economic class, there is nothing to do about the accident of birth, but what happens thereafter is important. Generally speaking, those born into an economic class, are born into a community that shares that status. They attend schools with their peers, and absent external forces generally stay within their class, as they are only shown opportunities consistent with maintaining their status. In short, with rare exception the wealthy stay wealthy, and the not-wealthy stay that way. 

2. Those who do not have wealth make attempts through labor to gain it, those who do have wealth make attempts through policy to protect it.

3. Eventually the cultural cloistering of the have's and have not's creates a gap so large that one class has no means to empathize with what the life and needs of the other class truly are.

 That is the societal stage in which this drama unfolded;

1. Congress, as a result of their disconnect with their constituents fails to realize that borrowing 150 billion dollars to put $600 or less into the pockets of taxpayers does not meet the cost benefit analysis test. (Anyone in the mood for cake yet?)

2. A few months later Congress sees fit to spend billions of dollars to bolster individual investment firms, banking institutions and insurance companies.

3. A month later Congress finds the will to authorize the mortgage of our future to the tune of 810 billion dollars in loans, bailouts and pet projects, a double down on the voodoo philosophy of trickle down economics.

 While programs take time to work and doing nothing was clearly not a viable option, the actions of our leaders is consistent with the steady march towards feudalism. Wise or foolish, the economic recovery act of 2008 was born of good intentions, however with a population of roughly 300 million people, had we borrowed the combined 960 billion dollars and distributed those funds equally for every man woman and child in our nation, that would have equated to about $3,000 per individual, $6,000 per couple, $12,000 for a family of four. That unlike $600 or less, would have had a real impact on people's monthly overhead, for many that is several months of salary. This alongside aggressive debt restructuring (like we're doing now) would perhaps have returned liquidity to the financial markets using trickle up economics. If people spent the money recklessly it would have stimulated the economy through the demand side. If people used the money to become current on debts that would have stabilized the housing markets and avoided an untold amount of foreclosures while fortifying the balance sheets of lending institutions. Even if they only saved the money, banks would have had enough cash reserves to continue issuing both personal and commercial paper. And at the very least if all else failed, the lowest end of the economic spectrum would have had savings to ride out some unemployment (a lot of which would not have happened anyway).

 

   Our current situation has many causes, not limited to supply side, trickle down economic theory, and lack of financial education for our citizens. We attempted to correct this course by slowing down with half measures like the stimulus package instead of full throttle reverse by at least taking a shot at demand side, rising tides economic policy, and aggressive financial education efforts. I guess "for every action and equal but opposite reaction" never occurred to an administration so opposed to science.

  My feudalism fear is about as warranted as the socialism fear which is to say, not at all. As unfortunate and rife with human costs our situation is, it is simply a correction that was inevitable and all we can really do is not panic, not make too many mistakes and see this for what it is, a once in a generation opportunity to address issues of generational poverty, education inequity and climate change through public works projects while it will be politically popular.

   That said, now that the election is over it is safe to say I was originally a strong John Edwards supporter. I hope that his current personal foibles don't keep him out of public life for too long as he was absolutely right about "The two Americas". Lyndon Johnson spoke of this in his term as President and our war on poverty is one of the few places in American society where we have made significant negative progress. Lyndon Johnson, at heart a populist, warned of the costs of the rift between the poor and everybody else. John Edwards in his campaign rightly pointed out that now, the rift is between the Very Wealthy and everybody else. It is important to note that I think having wealthy people is a good thing, in fact I aspire to be wealthy myself at some point. I also do not believe that taking from the rich to give to the poor is a good idea. But it is vital to the continuance of the principles on which our nation was founded to have the tools in place where personal responsibility is rewarded with enduring self reliance. 

  Our founding documents provide for the right to the pursuit of prosperity, but not a guarantee. However if we do not address the issues of generational poverty and education inequity, we find ourselves in violation of our core constitutional obligations. Worse if we continue to pursue the above policies forged in ideological disconnect, and do not bridge the cultural divide between those who lead and those who are led, we will only ensure that the wealthy will gather more wealth at the expense of others instead of in concert with them. If we do not, if only temporarily redirect our focus the most benevolent actions of people of means will only result in long term dependency on the  wealthy by the poor.  Whether the relationship is based on employment or housing,  our current path without caution and re-prioritization will only cause those with means to consolidate tremendous wealth and further bifurcate our society. 

  Finally to speak to the criticism of my post "The Prius Problem", I'd first say, thanks for the comment and keep them coming! I am a product of conservatory training. My educational background is of the classical training where improvements come from criticism and deconstruction by the instructor. For me this blog is equal parts sharing my views and an educational exercise. You the reader are my instructor, without your comments I cannot know if my thoughts are being conveyed with clarity so I respect and encourage your comments on both the content and the style. In the classical training model it is the obligation of the student to also be self critical and defend their actions. 

 I will begin with self criticism. My greatest weakness is brevity. I attempt to make connections between opposing arguments, because I am a "big picture" thinker. I realize however that I am not alway efficient with language.  A lengthy thought process is no excuse for verbosity. Further, from my experiencing teaching I don't assume prior knowledge. Speaking to prerequisite information can clarify an argument, the liability however is that it can at best be redundant, and at worst appear smug. With the context that I intended to speak to a broad audience on complex issues, by all means offer critical analysis as to where I have added more than is necessary or  simply have stated something to prove that I know it.

     I strive to present the wisdom of the argument, not the author. 

  With acknowledgment of my deficiency in brevity, I defend my rhetorical style. I use "big" words. And I will continue to do so. I make bold statements and will continue to do so. I make bold statements because it is not my intention that the reader necessarily agree with me but rather to provoke thought and discussion. Without provoking argument how will I know when I am wrong?  My use of vocabulary is not in spite of my modest upbringing but rather in honor of it. My mother, my teachers, and my friends who have been sources of intellectual and personal nurture did not make financial and personal investments in me for me to sound uneducated. I may have come from a humble beginning, but my world view has been shaped by my formative years in the playground of a housing project as much as my  language was synthesized in the hallowed halls of our nations finest private institutions of higher learning. I have strong ties to, and my desire to work in public service is a result of, my relationship with working people. I do not believe that even the most common are incapable of understanding my words, and I further disagree that the case of the struggling can be made without the most eloquent of language. Common vernacular is too weak for uncommon challenges.

  And finally ahead of this Thanksgiving holiday I would like to share how thankful I am for the great people in my life, and diversity of experiences that have made me whole. I am eternally grateful for the opportunities that have been presented to me, particularly this year, but over the course of my life that have given me a rare understanding of our nation, our society and myself. With the challenges ahead both personal and public, I close this year with a profound sense of good will, a renewed sense of providence, and a reaffirmed belief that we do, for our challenges, live in a time that has the greatest level of opportunity afforded to people in the history of mankind. May you have a joyous holiday season.