The Money Gap

Let’s get ideology out of the way first. The mariner doesn’t care if the reader is republican, democrat, libertarian, socialist, Zen Buddhist, tea party, neo-Nazi, racist, or Black Power. It doesn’t matter. Everyone has the same problem: It is the nature of capitalism to accrue profit and wealth. The affect of this objective is that money makes money, meaning that the more money you have, the more money you will make until, theoretically, there is no more money for anyone else. (Used to be called the feudal system)

This characteristic of capitalism is fine when it is managed properly. One cannot fault an individual for pursuing profit. Accruing profit is not the objective of the United States and its citizens. Nowhere in the founding documents is language that says accruing wealth is mandated for every citizen. It allows the freedom to accrue wealth but not every citizen will have that opportunity despite the Iconic phrase “America is a free country.” In fact, 98% of all Americans will not have the opportunity to accrue wealth.

In American politics, it is no longer one man, one vote. It is one dollar, one vote. The wealthy run the country to fit their convenience and enhance the opportunity to make better profit with their money.

It was a sad day in American culture when the President of the Senate offered a bill that will reduce Social Security payments rather than increase taxes on the wealthy. Hundreds of thousands of citizens have only the Social Security check to keep them alive. Something is wrong in the United States.

The mariner still thinks it might be best to start at the State level. Vote for candidates who are committed to the following:

Remove right to work laws. Unions aren’t perfect, and they’ll never be equal to Richard Wolff’s utopia of democratic business. Still, they are a facet of the financial world that at least makes the wealthy give up a little more money for a worker’s retirement plan, 401k, and a COLA raise each year. With only this one change, the middle class will begin to grow.

Make it illegal for a business to move its primary operation across a State boundary. State governments give huge tax relief to bring business to the State. The least the business can do is stay in the State. When voting for Federal candidates, the candidate should be in favor of making it illegal to take a business overseas or have corporate ties that permit business to stop in the U.S. while its partner organization ramps up business. If a profit can’t be made with the current product, make another product.

Raise taxes on the wealthy. This has nothing to do with the size of the Federal Government. It is an attempt to reduce the rapidity by which money makes money.

These suggestions alone will revitalize the middle class of America. Capitalism will never be reined in fully but it must play a role in the health of the economy that makes money for the capitalists.

 

Federalism

The Continental Congress formed a national government to raise funds for wars, manage trade, oversee a national economy, particularly the power to print money, and to referee disputes between States. The rest was left to the States to manage on their own. The Bill of Rights was added to include citizens, not just states.

Over the centuries this Federal-State relationship has become frayed. There are legitimate reasons for the Federal Government to step in and pass national laws that protect some aspect of the Constitution or the Bill of Rights. Today, this “stepping in” has in many ways become a money game for lobbyists and special interests; the inherent values of a State are subject to abuse by investors and entrepreneurs. Genuinely needed support to the States is often ignored, for example, roads, transportation and utility infrastructure.

The recent effort to pass gun registration gave the mariner the thought that perhaps the individual States may be able to promote change more rapidly than the Federal Government. What changes can be made will depend on the cultural attitude of the State’s constituency, where an issue can become a common objective. Taking an intellectually simple issue, legalizing marijuana, each State has approached the issue in a way that is more responsive to the attitude of its constituency rather than following the Federal position. Change is occurring at the State level years before it would pass the Congress and the Attorney General knows better than to go after popular State legislation. Another example is legalization of same sex marriage; individually, a number of States are forcing change by making same sex marriage legal at the State level – even though it is an issue better dealt with at the Federal level (due process, equal protection, etc.).

To a significant degree, State Government is more sensitive to the mood and need of its constituency; State legislators are folks that go home every night to their neighborhoods; political capital is earned by championing very local issues. States, more or less, are modifying education policy because they are forced both by economics and at the same time have to provide an educated work force – something potential businesses ask about frequently. There are dozens of different educational experiments ongoing in States while the Congress has no interest in increasing funding to State education budgets generally and certainly has no interest in educational philosophies.

Perhaps it is easier for a citizen to modify a State legislator’s priorities than those of a Congressman. Perhaps too much attention is paid to Federal progress (or lack thereof) and not enough to State governments that are forced to adjust to the reality of their constituency more so than the Congress.

It is easier to marshal an activist citizenry at the State level than at the Federal level where immense amounts of dollars is a deterrent. What would happen if the constituencies cared more about selectively electing the local mayors, legislators, judges and Governors than they cared about the big, TV covered Federal elections? Could change occur more rapidly? After all, isn’t that what the Constitutional Congress intended?

The thorn in this approach is the diversity of each State constituency. States can collaborate in ways that some types of progress can be made but not other types. Consider the Dixie States: socially conservative, comparatively racist, and have clearly ranked classes of individuals. Consider the rust belt: languishing in the last echoes of the industrial revolution, most of which was sent overseas. A genuine American culture that made this country strong and profitable has all but disappeared. Consider the mountain states: sparse population, firmly independent, and at odds with any agency or Non Profit Organization that infringes on their right to do what they want to do. Consider New England and the Mid-Atlantic States: The site of the founding of the United States, this region has carved a culture of pragmatism rather than ideology – something that must have been necessary to survive the early years.

Each region has different priorities – both cultural and economic.

What changes can/will each region advocate? Will the changes correlate to changes promoted by other regions of the United States? If nothing else, the Congress will have to listen to change from their constituent regions if they want to be reelected. This is a State strategy to divide and conquer the attention of the Federal government. The mariner suspects it will take groups of States to make this work but it may be the fastest way to implement changes to dysfunctional congressional practices.

The Senators who voted down the gun registration bill are feeling the heat at home. With a little practice, State citizens may wield notable influence – maybe even beat the generation cycle. From their perspective, the Tea Party, a loose coalition of grass roots organizations, made significant progress.

State referendum or initiative is a way to make change. It is quick but it is completely populist. Proposition 13 in California, passed in 1978, changed the California Constitution to limit property tax increases to virtually zero; it still shackles the economy of California to the point that what was once the fifth largest economy in the world is deeply in debt because of the tax constraints in Proposition 13. To reader Marc’s point in an earlier post, the individual voter doesn’t do much homework.

Marches on Washington, for example the “Million Man” march by African Americans in 1995 to protest economic oppression of African American men, get large press, allow Congressmen to promote their positions during the event, and then the issue drops from sight. The Million Man March was backed by a number of national African American organizations and notable speakers from every quarter. Grass roots training, education and proselytizing were provided in advance.

The effect of the Million Man March was not one of legislative change or greater opportunity through government or business. Its benefit, unexpectedly, was to raise the consciousness of African American men. Sociological studies since show that family ties were strengthened, a sense of belonging to something of value emerged, even a few successful business ventures can be traced back to the march. The main effect of the march was the establishment of self worth and common cause. Still, no meaningful legislation has come to pass. Nevertheless, can this be called change? What is the next step for the African American? Should other races/classes first bond together in order to have the zeal to make change happen?

All said, the answer is grass root energy and will. Popular attitude alone almost achieved gun registration. It will take organized activism as well as attitude to make change real – especially in election campaigns.

Strapped to the Generation Cycle

Reader Marc makes the point that even elected officials are told what to vote for just as the electorate follows the meaninglessness of campaign rhetoric. When you think about it, part of the decision for everyone is, in fact, mindless. The electorate is trapped in their cultural bias, subsumed in a lifetime of self identification within a cultural class and a financial perspective of reality – but honestly so. The elected officials, too, are trapped in a system that feeds on power, hierarchy, huge sums of money. Unlike the electorate, the officials are not bound by the reality of their constituency but by party leadership, the anxiety to be reelected, and to find coalitions of “friends” that give the official a sense of participation. Our dilemma is that no one can make genuinely moral or rational decisions for the greater good of self, class, nation, or the Earth.

How can society change in this bound environment? Not quickly for sure. How does one see the right decision in a sea of democratic prerogatives? Every decision is fraught with huge consequences: vote to not build a new jet fighter that the military doesn’t really need, and thousands of laborers lose their jobs; vote for better education and one’s taxes rise; vote in behalf of the environment and hundreds lose their jobs in the oil and coal industry. It goes on and on and often focuses on serious moral dilemmas – which are serious to some of us and indifferent to others.

The Tea Party tried. The conservative ideology did not win the fight but it certainly skewed the Congress toward some morally unfair policies in the name of less government. The Tea Party failed to understand the real issue: we are bound in a democratic society that has no one supreme issue. The Tea Party forgot that every stick has two ends that are on opposite sides and will never meet – it’s the stick between the ends that has value.

The gun atrocities garnered enough consciousness in the electorate that those elected officials who voted against gun registration went home to hostile constituencies and may not easily be reelected. But the gun lobby won the battle. The war continues.

One could turn to history to see how change occurred in the past. The mariner doesn’t intend to give a history lesson but think about changes only in the twentieth century: women’s right to vote; child labor laws; the right to vote; the right to form labor unions; the Civil Rights Act outlawing discrimination. Other citizen uprisings had the citizens burning draft cards and bras, overtaking public parks in mass numbers, and more quietly, those twenty and thirty year old folks who have turned their back on Government. Two things are apparent: the initial starts of these changes sometimes take hundreds of years (slavery) and all of them take decades, at least one or two generations.

There’s that word. Generations. A fast forward example is Caruso, Rudy Vallee, Frank Sinatra, Elvis Presley, the Beatles, Michael Jackson, nsync, and Justin Bieber. Don’t worry if your favorite is left out. What the list demonstrates is that every generation has a unique, almost stand-alone impact on society.

The mariner suspects that as each generation comes of age, it carries within it a few small seeds of change from earlier generations that are accepted and not an issue. Each generation has its important issues, and its unique perception of reality but each generation has moved a notch along the measure of cultural change. A good example is the attitude toward lesbians and gays. As legislation only now begins to emerge from Congress, the public, by and large, has already dealt with it.

In the current environment, where the elderly need social security – especially since businesses are bailing out of that responsibility, where profit-taking is at an outrageous high in the health industry, and the global economy is in a quagmire that no one nation can fix, and the Earth becomes a trashier and dirtier place to live, where the young are not educated, where banks and investors reap 90% of the GDP, a generation is not long enough. Not even two generations. Some may be born and die before meaningful change has taken place.

We are in a peck of trouble. But we have to move at the speed of generations. We are strapped to the generation cycle.