Nostalgia Economics

Please, please tell me that we’re not going to need to sit through another fifteen months of political candidates giving their visions for the future which, oddly, to me look mired in the past.

The Republicans are pretty clearly stuck in the 1980s. To all appearances they only know one song: tax cuts. IMO the argument for tax cuts at the federal level was much stronger in 1980 than it is today. That there isn’t a national consensus in favor of tax reform is a scandal and an outrage but I’m afraid that whatever shape reform takes and all of the dust has settled there won’t be much in the way of a tax cut. The federal government just has too many obligations, those are going to remain obligations regardless of which party holds the Congress and the White House, and, given the consensus over the kind of budgeting we do, that means that not only a certain amount of revenue but an increasing amount of revenue is required. Protestations to the contrary notwithstanding no Republican president has ever submitted a budget calling for the abolition of any federal department. Although there are differing priorities between the two parties over how to spend money, a dramatic decrease in the size of the federal government just isn’t in the cards.

Democrats should take no solace in their own politicians. You can’t listen to Hillary Clinton’s views on the economy without realizing that she’s hopelessly mired in the 1950s when the Fordist compromise, the grand agreement among Big Government, Big Business, and Big Labor, was at its peak. Big Business is now global and Big Labor is now irrelevant in the private sector.

I do have one question for Sec. Clinton about her recent profit-sharing proposal. If it’s such a good idea, why haven’t the trade unions representing the workers at large, publicly-held companies been clamoring for a greater equity stake in the companies they’re working for? Why don’t they hold significant chunks of their pension funds in the form of the stock in those companies?

The economic conditions of today aren’t those of 1980 or 1950 (or, pace Bernie Sanders, the 1930s). The challenges we face today are those of globalization, disruption, and the vast proportion economy in finance, healthcare, and education, none of which employ enough people to propel either a Fordist or a Reaganite recovery in the economy.

Are the present and future so bleak that they can only stand talking about the past?

8 comments… add one
  • ... Link

    That there isn’t a national consensus in favor of tax reform is a scandal and an outrage but I’m afraid that whatever shape reform takes and all of the dust has settled there won’t be much in the way of a tax cut.

    How can there be a consensus for tax reform when the two parties (and their adjuncts in the media) only speak of raising or lowering taxes? There’s pretty much no oxygen left in the room for a consideration of HOW we tax. (Though it should be admitted that there are occasional candidates on the right these days for whom tax reform IS an issue. But not so oddly, those candidates never gain any traction.)

    Furthermore, the major players in both parties want it this way, because it keeps the focus off the real action.

    Are the present and future so bleak that they can only stand talking about the past?

    The present and future aren’t bleak for those in power. But they either can’t tell the truth because they know they’ll get strung up from the the nearest tree (if they’re lucky), or they really believe the crap they’re saying due to stupidity or cupidity.

  • jan Link

    “(Though it should be admitted that there are occasional candidates on the right these days for whom tax reform IS an issue. But not so oddly, those candidates never gain any traction.)”

    They usually don’t gain traction for a multiplicity of reasons. One is that the MSM is not interested in positively or deeply covering any kind of tax reform that isn’t heavily influenced by Keynesian economics and sound bites of “tax the rich,” or “fair share.” If they do acknowledge more innovative policies, it’s with a certain degree of patronization and derision — the subtle implication being that non-mainstream ideas are crazy and won’t work.

    A second reason is that in an increasingly polarized society — one that has become bitterly divided during the past 7 years — people are separating themselves into tightly woven, oftentimes blind-sighted special interest groups, who increasingly cast their support
    for political parties vowing to satisfy selective needs of constituencies, rather than taking on more arduous, less popular goals of creating policies expanding economic choices and standing for all. It’s how we even racially express ourselves now, where it’s no longer cool to say, “all lives matter” anymore, in lieu of the recently endorsed screed where only “Black lives” seem to politically matter.

  • Guarneri Link

    You go, jan.

    Further, and I admit I’m playing an awful lot of golf these days as opposed to watching politics, I’m not impressed at the one- note Louie (tax) stance Dave cites. Really? As opposed as I am to the effects of taxation, give me a three year freeze as is and I’ll take it.

    It will be the piggish left who will find that unacceptable, as they just want more, more, more……..

  • Andy Link

    IMO it all comes down to the two-party system. Let’s face it, the GoP and Democratic Party goals are winning elections and political power, not effective policy. There simply isn’t political space for ideas outside traditional narrow partisan interest and most partisan policy proposals are designed, in large part, to gore the other party’s sacred cows. So the “debates” inevitably devolve into stupid either-or proposals that are increasingly distant from actual problems.

  • jan Link

    ” Let’s face it, the GoP and Democratic Party goals are winning elections and political power, not effective policy.”

    True. However, they wouldn’t be able to get away with this if the general populace were more knowledgeable and discriminating, giving credence to factual exchanges rather than emotional tirades and vapid feel-good promises. IOW, politicians and the two party system are simply mirroring what it’s customers (the voters) want — simplistic, superficial values and fixes, many of which are structured to gore the ox of someone else.

    IMO, the popularity of Trump super exemplifies this on the right, as he is pushing all the wounded buttons of a constituency who has felt ignored during the age of Obama. Unfortunately, no one is bothering to fact-check Trump against the list of opinions, stances and comments uttered only a few years back — many of which totally are 180 degrees from what he is saying now.

    On the left you have Bernie Sanders who, although seemingly sincere in the policies espoused, is mainly appealing to the ideology of an idealistically-inclined grouping — many whom, while extolling the merits of lets say much higher taxation, will scurry to hide their own wealth in order to avoid paying higher taxes themselves.

    So, IMO. our ongoing duplicitous and unproductive governance, which seem to be “increasingly distant from actual problems” lies more at the feet of those who decide the fate of these political nitwits, voting them into (rather than out of) office time and time. again.

    Drew,

    There are times that I find myself edging closer and closer to the iconic Howard Beale moment of opening a window and shouting, “I’m mad as Hell and can’t take it anymore.!” The kind of PC, pontificating, sniffling society being front-loaded, where triviality, hubris and narcissism trumps substance, integrity and humility is pretty discouraging!

  • ... Link

    Bernie Sanders who, although seemingly sincere in the policies espoused….

    Did you see Sanders coming out against open borders? And saying that he’s always been against open borders? (That was an “interview” with Ezra Klein.) Never mind that he’s pro-amnesty and pro-open borders for the entirety of his voting record. In other words, Bernie is also a lying sack of shit. He’s no more sincere than any of the rest of them.

    And Jan, this has been going on for far longer than seven years.

  • steve Link

    Who are the right wing candidates supporting tax reform? Don’t remember any. I do remember some wanting to do tax cuts and call it reform. Would like to see what they proposed.

    Steve

  • jan Link

    “Who are the right wing candidates supporting tax reform?”

    Next week is the great GOP debate. Tune in and you might get an answer to your question.

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