I’m gratified that the regular commenters here at The Glittering Eye have deduced where I have been going with several of my posts over the last week or so. I’ll try to knit the various threads together in this post. I won’t include supporting links for what I’m about to say; you can seek them out for yourself.
Over the period of the last 30 years educational policy is what has passed for an industrial policy in the United States. Over that period we have trebled our real spending on education without a great deal to show for it. That has been true under Democratic administrations in Washington as well as Republican.
There is clearly a consensus in Washington to the effect that the economy of the future depends on workers with high levels of cognitive skills. Those are the workers that can benefit from a college education—people with about the top third in skills and habits of work and mind.
The sad fact is that not everybody will be an accountant, engineer, software developer, lawyer, or physician. Some don’t have the interest. Some don’t have the cognitive ability. Many have other personal, work, or social skills people who are accountants, engineers, software developers, lawyers, or physicians probably won’t develop. How many is that? The best guess is that something between 60 and 85% of the population. That being the case there is obviously a grave mismatch between the economy that’s evolving and the population we have. The options for dealing with that are limited.
What we have been doing is trying to change our population to suit our economy—in my opinion perverse in the extreme as well as futile since regardless of how many highly skilled workers we bring into the United States, the old population remains, their wages pressured from the top by the newly-arrived skilled immigrants and from below by illegal immigrants, refugees, and the unskilled sponsorees of the skilled immigrants.
What to do? There are several alternatives: replace the old population with a new one which is pretty monstrous, try to make life better for the large proportion of the population who aren’t going to be accountants, engineers, etc., or change the economy.
Many of the proposals that have been emerging from the progressive end of the Democratic Party have been targeted towards that second goal. A universal basic income is unworkable. For one thing it’s too darned expensive especially since the proposals being put forward don’t “carve out” existing programs but “pile on” top of them. And then there is Franklin Delano Roosevelt’s advice from his State of the Union Address in 1935:
The lessons of history, confirmed by the evidence immediately before me, show conclusively that continued dependence upon relief induces a spiritual and moral disintegration fundamentally destructive to the national fibre. To dole out relief in this way is to administer a narcotic, a subtle destroyer of the human spirit. It is inimical to the dictates of sound policy. It is in violation of the traditions of America. Work must be found for able-bodied but destitute workers. The Federal Government must and shall quit this business of relief.
It is not merely a question of what it is called. People have a social and psychological need for a job and no UBI check will ever fill.
Other proposals include guaranteed jobs programs and wage subsidies. I can’t prove it but I suspect they will all run afoul of the functioning of the market which operates even in the most command economy.
I think we need to change our economy. I think we need more farming, more primary production, and more manufacturing not less. I think we would have more if the web of subsidies and regulations, not just ours but those of our international trading partners, were not so dense.