The Costs of Economic Inequality

The title of this blog could imply a cause and effect relation between economic inequality and national prosperity. But that implication would be inaccurate. For the current American economy is quite prosperous, dominating globally in every category—national wealth, stable banking, the most successful international corporations, a highly productive workforce, world renowned universities, and a society secured by the strongest military in the world. But there is a price for economic inequality that overshadows national prosperity. Wage stagnation and wealth concentration at the top of the economic pyramid has, in the first instance, indebted and crippled the growth of the middle class and, in the second instance, greatly empowered and disproportionately enriched the so-called one percent. Many decry the effects of this income and wealth inequality on the middle and lower classes of our society. Certainly, to the extent that inequality limits opportunity in a free society, it presents a malignant tumor in the social body of a democracy at every level. Amongst the social effects of this inequality are civic unrests and mass protests in the public realm and despair and financial hardship in the private lives of individuals. These effects are obvious to any observer of the current American scene. But there is another effect that should raise even greater concern for it rests at the very heart of the American experience. Economic inequality has slowly and persistently given rise over the last several decades to an existential threat to America. That threat is political inequality: democracy becomes a sham when only the privileged have a voice in governance.

What evidence is there for this alleged political inequality? Well, we just elected a billionaire to the office of President. He has filled his cabinet with more billionaires. Meanwhile, a Congressional seat has already become the prize of many millionaires or the steppingstone to a lucrative post-term career. In truth, wealth does not necessarily disqualify someone from representing or serving Americans. This country has a long history of philanthropists and of wealthy office holders who have served them well. Many Presidents have come from wealth—the Roosevelts, the Bushes, and Kennedy, to name a few examples. But none of these men have conducted a campaign of dubious voter fraud investigation or voter suppression and of institutional disintegration affecting the public services that deliver education, affordable housing, healthcare, opportunity, and a safe environment to all Americans. Moreover, it is difficult to identify a Congress less representative of the public welfare than the present model. While Congress mulls over legislation that would make healthcare unaffordable for millions and that would modify the tax code for the benefit of the wealthiest among us, the President offers a national budget that would enhance corporate profits, defund education, cripple environmental protection of our water, air, and natural resources, and eliminate programs that offer hope to the urban poor and rural communities already devastated by job displacements and the absence of job training or re-education services. And now, in the face of millions of climate change refugees, he takes his war against the less fortunate to the world stage by discrediting and withdrawing support for the Paris climate change accord. Most Americans—and practically all scientific analyses—support a global response to ameliorate the effects of climate change. Likewise, most Americans do not support a rollback of government services that support our children, the elderly, the sick or the less privileged among us. In a democratic republic, it should not be possible for a government to be this unrepresentative of its electorate. Consider that neither the President nor the current Congress won the popular vote. So how did America become an illiberal democracy? Or how did we create a government that no longer represents most Americans?

Perhaps we can find the answer to that question in the last Presidential election. May I ask you, my fellow Americans, why you voted for President Trump and the Republican ticket? Perhaps you felt like your choices no longer have relevance. If so, you may have been willing to take a chance on any politician who promised better healthcare at a fraction of the costs, the restoration of jobs in a dying coal industry, the removal of easy scapegoats such as Washington public service elitists, immigrant workers, Muslim terrorists and the repression of critical or “fake” news media. When the present government seemed unresponsive—frozen in political gridlock and answerable only to lobbyists for well-healed campaign donors—then you might naturally be inclined to believe the promises of a self-declared outsider that he would clean house or “drain the swamp.” In other words, you did indeed vote to be represented, to have your interests served, and to have your voice heard. But your vote gave power to those who serve their own interests, not yours.

Donald Trump’s words and actions clearly demonstrated where his interests lay. His bestselling book, “The Art of the Deal,” is all about making money, specifically, about using “other people’s money” to make money and build his brand. As the sole owner of the business gifted him by his father, he has received millions of investment dollars from Russian oligarchs and banks. He also has real estate investments in the Middle East, including Saudi Arabia where he just closed a more than a 100-billion-dollar arms deal. His company owes money to a Chinese state bank and his family businesses are currently seeking patents and permission to operate profitable enterprises in China. It is far too likely that his business interests carry more weight than your interests. Why do you think he has steadfastly refused to make his tax statements public? Considering this refusal, do you have any voter remorse?

When I wrote “American Revolution 2016,” I was thinking of you. Unfortunately, few took my proposed pledge, “to vote for candidates who promise to support voting rights legislation consisting of universal voter registration, Federal fair election guidelines, and populist regulations governing Federal campaign funding and candidate debates.” Part of the problem is that no candidate took on the challenge my pledge entailed (although one seemed to understand its premise). The rest of us seemed either bored or amused by the unfolding circus of mindless debates and personal incriminations. The election cycle was too long, unfocused on real issues, and heavily influenced by paid advertising, social media blitzkrieg, and fake scandals or alleged conspiracies. It should be no surprise that many chose not to vote. Frankly, even if “Citizens United” did not rule and campaign funding was regulated, as I proposed, the power of the vote would still have been diminished for lack of an informed and committed electorate. For when we choose not to become informed or even to vote, then we lose control over our national destiny. The only scapegoat then is ourselves. Russia may have influenced the last Presidential election, but only we Americans voted . . . or did not. Yes, there are consequences.

We can attempt to blame Donald Trump for doing what he promised to do during the campaign. But, at some point, we must question why many of us believed Obamacare was a “job killer” and in a “death spiral”; why climate change was a hoax perpetrated on us by the scientific community; why the restoration of coal mining jobs was proposed as a solution for joblessness in the rust belt; why EPA clean air and water regulations were somehow destroying the nation’s whole economy by controlling harmful pollution in the hydrocarbon energy sector; why the United Nations and NATO serve no American interests in promoting diplomatic and global solutions for world crises or the preservation of a united and secure Europe, respectively; why the creation of multiple bilateral trade agreements over an extended time period would somehow outperform a completed Asian multi-country free trade agreement drafted mainly on American terms; why would a 20% cut in the corporate tax rate boosts GDP to 3, 4, or 5% without delineation of what deductions would be eliminated to “level the playing field”; and why would the promise of tax cuts for all be good for the middle class when married to cuts in deductions and elimination of the healthcare tax on the wealthy. Cutting taxes AND deductions for the middle class could be tax neutral and therefore not a tax cut at all. But the loss of the healthcare tax would make healthcare unaffordable for millions of low- and middle-income wage earners. What evidence justified any of these Trumpian positions?

Ironically, the President is now doing what he can to make his dark view of the world a reality. His actions in office are in fact designed to kill Obamacare, global climate change mitigation, EPA’s efforts to eliminate pollution of our air, water and land, the United Nations’ charter, the NATO alliance, America’s strategic influence in Asia, and any possible tax reform that might reverse income and wealth inequality in America. In addition, the President’s stated concern for coal miners has not resulted in any concrete plan to address their job losses in a dying industry. His actions and non-actions may truly reflect his bizarre world view, but they do not serve the interests of the American people. And they take advantage of our unwillingness or inability to be informed and vote our conscience. As a result, we become complicit in destroying our own democracy.

If we truly want to save American democracy, we must restore the power of the vote by expanding the plebiscite, limiting the influence of money on campaigns, and reforming campaigns to assure focus on realistic solutions to public issues rather than on empty promises and demagoguery. AND each of us must assume the role of an informed citizen and (yes!) vote.

Campaign finance reform is possible, if we elect representatives who support such reform. Campaign rhetoric can be parsed and interpreted fairly, if we weigh it against common sense values and documented facts. Political commentators can and should debate all sides of an issue, but only if they are diligent about learning the truth and discrediting “alternative” facts and disputed evidence. The media can and should focus on the relevance of policy proposals to the broader contexts of the lived experience of individuals and communities, rather than the size of a politician’s hands or the type of jeans worn. And somehow all of us must cross the word barriers of “elitists” and “hillbillies” or the divide between the urban and rural experience to find the common values we should all share—that is, the principles and system of government outlined in our Constitution.

What has happened to our Constitutional literacy? Why do we have such difficulty understanding that freedom of religion assures that no American can be forced to have OR not to have an abortion? When did we decide that healthcare or fair treatment in our courts should be disproportionately available to the wealthy and the privileged? Are these not included in Jefferson’s declaration of our “unalienable rights?” Does the second Amendment of our Constitution allow a private citizen to own a bazooka or 50 ml. machine gun because of “a well-regulated Militia being necessary to the security of a free State?” And how are we to understand the relation of the President’s tax statements, his Russian connections (that is, possible collusion), and his firing of the FBI Director to Article 2, Section 4, of the Constitution regarding impeachment and removal from office “for treason, bribery or other high crimes and misdemeanors?” Does the Constitution’s Article 1, Section 9, the infamous emoluments clause, call into question the President’s financial involvements with Russian oligarchs, Saudi princes, or Turkish government officials? What responsibilities does the Constitution’s Article 1, Section 8, place on Congress “to pay the Debts and provide for the common Defence (sic) and general Welfare of the United States,” “to establish an (sic) uniform Rule of Naturalization,” and “to promote the Progress of Science and useful Arts?” The answers to these questions are surely debatable, but they are not irrelevant to the issues facing Americans. Those issues will never be resolved if defined in terms of partisan “talking points,” divisive xenophobia, fear mongering, and cynically derived concocted facts. The starting point for reasoned debates in a democracy must be a set of common principles. Our Constitution is that starting point. Its underlying values define us as Americans. Otherwise, how can we maintain democracy in America?

If American elections are solely based on financial interests (“it’s the economy, stupid”), then the rich and the powerful will always hold sway. If, instead, traditional American values hold sway, then the general welfare of ALL Americans will dominate and include equal opportunity for all. The costs of economic inequality are simply too high for a free and democratic nation. They are, in fact, its existential threat.

Your comments are always welcome - I value your opinions!

This site uses Akismet to reduce spam. Learn how your comment data is processed.