fighting for fairness

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ThinkProgress notes that Gingrich's desire to trash the New Deal is still strong, as seen in his Heritage comments that "this is the third great effort to break out of the Franklin Delano Roosevelt model." ThinkProgress continues:

Yet the thrust of the speech was that Trump has opened the door to a transformative moment where nearly a century's worth of liberal victories can be reversed. Gingrich twice brought up the possibility of rolling back Roosevelt's model of governance, at one point telling the conservative audience that, if Trump is succeeded by another Republican, that would establish "firmly that we have replaced the FDR model and that we are now in a period of very different government."

So what is this "FDR model" that Gingrich finds so odious? Roosevelt took office amidst a catastrophic depression, but he also assumed power at a time when a conservative majority on the Supreme Court choked off progressive legislation, especially laws intended to protect workers. These rigid limits on governance, FDR proclaimed a month before he accepted his party's nomination to be president, would hobble the nation's ability to extract itself from the Great Depression.

FDR's successes were, of course, legion:

Roosevelt's experiments also provided workers with a minimum wage and a right to unionize. And he signed the Social Security Act, which didn't just provide a safety net to the aged and the unemployed, but which also laid the foundation for health legislation such as Medicare and Medicaid.

Roosevelt's experiments brought modern liberalism into being in the United States, and they helped liberals prove that their model works.

Dissent's look at the triumph of the 1% illuminates other facets of the problem:

The election of Donald Trump, and the daily infliction of another huckster, ideologue, paranoid, or unrepentant one-percenter cabinet appointment, has upended the politics of inequality. The defining issue of our time, not an insignificant source of Trump's victory, is disappearing from the national political radar. [...]

By all indications, the incoming administration is not just indifferent to the root causes--growing wage inequality, financialization, the collapse of progressive taxation--but eager to double down on all of them.

The new analysis ["Distributional National Accounts: Methods and Estimates for the United States" (PDF)] explains, yet again, where all the surplus goes:

Well, a large chunk of it is captured by the top 1 percent, whose share of national income almost doubled between 1970 and 2014--from 11 percent to 20.2 percent.

"What this means, in general terms," the analysis continues, "is the growth of inequality over decades is due to the ability of the 1 percent to capture a large portion of the growing surplus:"

But there has also been a change in the nature of that inequality in recent years--which is not due to escalating wages at the top, but to a boom in income from the ownership of stocks and bonds. The high incomes of the "working rich," it seems, have increasingly been used to purchase financial assets.

It looks then as if the working rich are either turning into or being replaced by rentiers--thus mirroring, after a short interruption, the structure of inequality last seen during the first Gilded Age.

update (13:54):
Thomas Piketty explains at The Wire that "on both the Right and the Left, everyone seems to agree on the existence of a minimum income around this level in France, as is the case in other European countries"--but not the US, of course. "If we wish to live in a fair and just society," he writes, "we have to formulate more ambitious objectives which cover the distribution of income and wealth in its entirety and, consequently, the distribution of access to power and opportunities:"

To move towards fair pay, we must stop denigrating the role of trade unions, the minimum wage and salary scales. We should reconsider the role assigned to the employees' representatives. In countries where they play an active role on the executive boards - between one third and half of the votes in Sweden and Germany - we find a narrower range of salary scales, greater investment of the employees in the firms' strategy and, as a consequence, higher productivity. In addition, there is nothing to prevent us from imagining original forms of power-sharing, with the board members being elected by a combination of employees and shareholders (to go beyond the interaction between paid administrators and shareholders with the latter automatically holding the majority).

Democracy is even more dangerous to authoritarians when employed at work than it is at the ballot box.

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This page contains a single entry by cognitivedissident published on December 15, 2016 7:55 AM.

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