Showing posts with label capitalism. Show all posts
Showing posts with label capitalism. Show all posts

Friday, November 6, 2015

The Socialist Who Saved Liberalism


“I pondered all these things, and how men fight and lose the battle, and the thing that they fought for comes about in spite of their defeat, and when it comes it turns out not to be what they meant, and other men have to fight for what they meant under another name.”  – William Morris


Bernie Sanders says he’s a socialist, but he’s not.  It’s true that the misapplication of political labels is a venerable tradition in American politics – consider the Puritan Social Darwinists who call themselves conservatives, the multiculturalist particularists who call themselves liberals, the Old Rightist Neo-Confederates who call themselves libertarians.  But let’s not add to that confusion.  Sanders’ program advocates using activist government to rebuild infrastructure; raise the minimum wage; make college free; increase regulations on Wall Street; institute single payer healthcare; make taxes more progressive; empower unions and worker co-ops.  He rails against “the casino capitalist process by which so few have so much and so many have so little”, and hopes for “a society where all people do well, not just a handful of billionaires” and a “government that represents all of us, not just the wealthiest people in the country.”  That is, present-day capitalism has come off the leash; it isn’t working for most working people and the excess concentration of wealth corrupts democracy.  His analysis is spot-on and his program is full of good practical ideas, but is this socialism?

The essential doctrine of socialism is that capitalism is irredeemably exploitive in that it forces workers to sell their labor to produce goods whose value is stolen by the investors who control that production.  Individualist liberal theory – like that of John Locke and Adam Smith – is used to justify capitalism, but it’s just an alibi excusing the concentration of economic and political power (which is really just economic power) in capitalist hands.  This view reached its most sophisticated and influential theoretical exposition, of course, in the work of 19th century political philosopher Karl Marx.

Classical Marxism holds that the essential contradiction of capitalism – that production is broadly socialized, but profit goes to a small ruling class – would inevitably lead to its downfall, once workers realized their objective condition and their true class interests.  Most early socialists organized workers in the hopes of increasing their economic power, either through explicitly pro-labor electoral politics, or trade unions, or both.  But the ultimate goal was a society where communal control of production – via unions or worker cooperatives or the state – spelled the end of capitalism and its system of forced, alienated and exploited labor.

But then, in early 20th century Russia the young intellectual firebrand, Vladimir Lenin, created a new version of socialism.  According to Lenin and his followers, the working class would never achieve true class-consciousness on its own; only a small vanguard party of intellectuals in possession of true theory could work the magic needed to replace capitalist hell with socialist heaven.  The workers would be herded and directed and controlled, all in their own true interests.  Once in power, of course, Marxism-Leninism became horribly totalitarian: the leaders controlled the party, which controlled the state, which controlled everything and everyone else.  This is classic Communism, as espoused and practiced by Stalin, Trotsky, Mao, Ho, Che, Castro, Kim Il-Sung, etc.  Hardly workers paradise.

As the original Democratic Socialism was confronted on its left by Communism, a new ideology, Social Democracy, arose on its immediate right.  Social Democracy is still socialist in analysis – it considers capitalism fundamentally exploitive – but it has a much more moderate and pragmatic program.  Informed by both the failure of capitalism to self-destruct – despite war, depression and decades of socialist agitation – and the failure of socialism to become established other than in its nightmarish Leninist form, social democrats accepted capitalism as a social reality, but tried to bring about socialist ends within the capitalist system.  After coming to power in northern Europe, they heavily regulated capitalism, redistributed its bounty, and provided a safety net for its downtrodden.  That is, they established the welfare state.  But since this is socialism that has made its peace with capitalism (even if only programmatically) it’s no longer really socialism.  Real socialists – Communists and Democratic Socialists – consider capitalism organically incapable of justice, and so view Social Democracy as a sellout and a sham.  To Social Democrats, socialism is a nice idea that has proven historically impossible.

These are the three main groupings of socialist-inspired thought (there’s also Anarchism, which is socialist ends through thoroughly libertarian means).  Clearly Bernie Sanders is neither a Communist nor a Democratic Socialist, since there’s nothing in his rhetoric or his program indicating he yearns to end capitalism, merely regulate it and redistribute its riches a little more equitably.  So is he a social democrat?  Should we label anyone who supports a welfare state (as opposed to the actual socialist destruction of capitalism) as a social democrat?

Lyndon Johnson, also not a socialist.
No.  Consider American liberals and the welfare state they created.  Franklin Roosevelt and the New Dealers used the federal government to promote labor unions; regulate banking and finance and labor markets; provide economic relief to the poor, the elderly, farmers, and workers.  In his 1944 State of the Union address, FDR proposed his “Economic Bill of Rights”, which would have (if not blocked by a conservative Congress) guaranteed to every American a good job, a decent home, healthcare, old-age security, a good education, etc.  Harry Truman pushed for increased unemployment and Social Security benefits, full employment, increased worker safety protections, universal healthcare, public housing, public works, aid to veterans.  Lyndon Johnson ended racial segregation and provided medical care for seniors and the very poor.  And in the first real expansion of the welfare state since LBJ, Obama finally instituted (near) universal healthcare.  This all sounds a lot like social democracy.

But it’s not; it’s modern liberalism.  Both social democracy and modern liberalism support a robust welfare state, but for very different reasons.  Classical liberalism, as defined and expressed by thinkers like Locke, Smith and John Stuart Mill, held that individuals and their rights are logically and morally prior to society.  So no one has any natural claim of authority over anyone else and political power is legitimate only when individuals consent to it.  Classical liberal theory arose during the 17th, 18th and 19th centuries, as the creaking feudal structure was replaced by the free market, nationalism, individual rights and representative democracy; all of these being instituted to allow individuals greater control over their own lives.  By the end of the 19th and early 20th centuries full-spectrum classical liberalism had become the established way of life in most advanced Western countries.

But once dominant its downsides became apparent.  Specifically, capitalism was generating enormous wealth, but that wealth was mostly going to the capitalists, not the workers, who were forced to work in terrible conditions for meager pay.  Also, capitalist economy went through dramatic boom-and-bust cycles, causing widespread hardship and social instability.  Socialism arose to explain these symptoms as manifestations of capitalism’s fundamental irrationality.  But liberalism’s critique of capitalism is based upon support for individual freedom and democracy and the desire for social stability.  That is, the completely free market leaves most workers with very little bargaining power, it constricts their options and their lives, it concentrates too much power in the hands of the rich, it corrupts the democratic process, and it opens the door to dangerous radical change.

Thus liberals tried to rescue workers from economic bondage, and save capitalism – their invention! – from its own excesses.  Hence, the liberal welfare state (which is generally a little milder than the social democratic version).  This new liberalism – using the state for the prudential amelioration of capitalism in order to increase individual freedom – was quite different from classical liberalism; it’s been called welfare state liberalism, welfarism, progressivism, social liberalism, modern liberalism.  That is, through a sort of convergent evolution, some socialists moved right and some liberals moved left and they met in the welfare state middle.  Their programs became very similar, but their respective ideological motivations remained unchanged, and therefore quite divergent.  Social democrats still considered capitalism exploitive at its heart; modern liberals still supported it in theory while wishing only to mitigate its most pernicious assaults on freedom and democracy.  But both gave up their utopian dreams – of pure socialist justice, and pure capitalist freedom, respectively – and accepted the good and bad in capitalism, once tamed by the welfare state.  To social democrats welfare-state capitalism is the least bad economic system that’s practically possible; to modern liberals it’s an improved version of an imperfect but essentially beneficial system.  A social democrat is a socialist who knows socialism is impossible; a modern liberal is liberal who knows that capitalism must be made better.

This is why it’s not fair to call Sanders a socialist; he’s clearly a fairly typical welfare state liberal, in the historically popular mold of the great 20th century New Deal liberals.  So why does he call himself a socialist?  Because liberalism has changed so much since Lyndon Johnson.  The success of modern conservatism and its electoral dominance, particularly since the rise of Ronald Reagan, subdued liberals.  Many, such as Bill Clinton and Al Gore, became New Democrats, largely giving up the liberal critique of capitalism and promoting privatization and deregulation.  In technical terms they became neo-liberals, trying to achieve welfare-state ends through private means.  They partnered with conservatives to expand free trade, end the federal guarantee of social assistance to poor families, and deregulate banking and investment.  Old-fashioned welfare state liberalism lost its political leaders to conservative polices, its white working class constituency to racially charged right-wing populism, and its intellectual and cultural elite to libertine, cosmopolitan multiculturalism.

That is, post 60’s liberalism became much less focused on economic struggles and much more focused on issues of cultural emancipation: social equality for racial minorities, women, gays, etc.  This was partly the influence of countercultural movements like the hippies, feminists, black nationalists, etc., and also the influence of the New Left, that baby boomer, student movement against conformity, white supremacy and militarism.  New Leftists started the 60’s as reformist liberals hoping to cure then-dominant technocratic liberalism of its bureaucratic and paternalistic excesses, and create a racially healed, individually fulfilling and humane liberalism.  As liberalism was the conscience of capitalism, they aimed to be the conscience of liberalism.  But as that fateful decade proceeded and they felt the stinging disappointment of liberalism’s failure to end racial injustice and Cold War extremism, they came to see liberalism as the enemy of its putative humanitarian goals.  They became convinced that America was fundamentally compromised by racism, militarism and capitalism.  Most of them became social democrats; but many moved farther left, in fits and starts; some slid all the way to Communism; a small number even embraced Communism’s farther extremes, idealizing horrible tyrants like Mao, Kim and Hoxha.  Thus modern welfare-state liberalism lost its intellectual support to both its right and its left, though it still commanded a large, orphaned constituency among actual working people.

When he was a socialist, sort of.
Bernie Sanders is a child of the New Left.  Born in 1941, he’s a little bit older than the typical baby-boom New Leftist, but he was very much part of the counterculture, the sexual revolution, the anti-war movement, and the ideological opposition to capitalism.  That is, he once was an actual socialist, albeit something of a libertarian hippie one.  But as he became involved in electoral politics – mayor of the very liberal city of Burlington, Vermont, then independent Congressman from Vermont, and now Senator – his natural personal pragmatism moved him on both economic and cultural issues further to the right, that is, toward the old welfare-state liberal center.  As the rise of Reaganism moved welfare-state liberals over to neo-liberalism, it moved Bernie from vague socialism over to welfare-state liberalism. He was a New Leftist who came to understand the necessity of defending the welfare state against the conservative and neo-liberal onslaught of the last 40 years.  Now he’s a liberal who calls himself a socialist, but mostly because respectable establishment liberals as a whole abandoned real liberalism decades ago.  And that nicely explains why the primary defender of real liberalism is such an eccentric.

It has fallen to a New Leftist to rescue liberalism.  That someone came out of that starkly anti-liberal tradition to save liberalism is an irony too exquisite, but the justice is poetic, and the lesson is clear.  Just as socialism was an overreaction to the flaws of capitalism, New Leftist abandonment of the traditional welfare state was an overreaction to the compromises and half-broken promises of 20th century liberalism.  Socialism was never a real possibility in America – thank God! – and it still isn’t – thank God!  Even if Sanders were elected and somehow managed to institute his entire program, and even if the entire world came to call it socialism, it would still really just be modern liberalism, the most popular, successful, broadly prosperous, and humanitarian ideology since feudalism went sloughing off to its happy demise.  Bernie, welcome home.

Thursday, February 20, 2014

Freedom, Work, Drudgery and Danger

American coal miners


If you won the lottery, would you still work?  No, you’d have the freedom to indulge yourself in worldly pleasures: travelling, socializing, thrill-seeking, etc.  But eventually you would probably find a life of indolence and hedonism unsatisfying, and would long for activity that both engaged your talents and benefitted society.  Without your millions, of course, you would be compelled to work, and the extent that a job gratified your talents would become secondary to the extent that it gratified your need for food and housing.  That is, most people work to survive and only a lucky few find work that’s deeply satisfying.  Does a garbage man find as much satisfaction in his work as an architect?  How about a cafeteria worker or a data entry clerk or a coal miner?  No, most of the work that most people do is drudgery, and most people would happily give it up if not compelled to it by economic necessity.  It’s true that all honest work imparts dignity and there is some satisfaction in simply doing your job well.  And in a society of equal opportunity – something to which our society provides at best a rough approximation – anyone with sufficient talent and determination can become a successful architect or neurosurgeon or musician.  But the great majority of people work not for the satisfaction or the dignity.  They work because survival obligates them to a life of unsatisfying and unforgiving drudgery.  For most people, work is coercion.

But imagine if some of that coercion could be lifted.  Imagine a person working an unsatisfying job only for the health insurance provided by her employer (that’s how most Americans get health insurance).  Maybe she or someone in her family requires expensive medical treatment, or maybe independent medical insurance is prohibitively expensive.  But now imagine a change in the system allows her to get cheap but good health insurance somewhere else.  Now she can afford to quit her job and give up the modest pay.  Maybe she wants to quit so she can stay home with her young children or her aging parent.  Maybe she wants to go back to college or start her own business.  Maybe she wants to retire a few years early.  Or maybe she wants to keep her job and simply work fewer hours and spend more time with her family.  Maybe she’s just happy knowing that her expanded health care options give her more choices and more opportunities, more control over her own life.  Isn’t it a tiny bit like winning the lottery?  That is, aren’t we imagining she has more freedom?

Well, you don’t have to imagine.  According to a report by the non-partisan and broadly respected Congressional Budget Office (CBO) there are millions of people who will work less or not at all because they can now obtain cheap and dependable health insurance through Obamacare.  As Josh Barro explains, “Broadly, one key goal of health policy should be to let people make work decisions without worrying about how those decisions affect their health insurance.”  That wasn’t the central intent of the health care law, but it sure seems like a positive development.  Well, there are many conservatives who adamantly don’t think so.  Welcome to the latest battle in the Obamacare wars.

At first many conservatives, blinded by Obamacare-hatred into abandoning either understanding or scruples, proclaimed that the CBO is reporting that Obamacare will destroy millions of jobs.  Some Republican politicians eagerly misrepresented the issue for electoral gain.  Even the supposedly liberal mainstream press thoughtlessly parroted stories about “lost” jobs.  There are no lost jobs, of course, only defecting workers, as clarified in this exchange between conservative Republican vice-presidential nominee Paul Ryan and CBO director Douglas Elmendorf as the latter appeared before the House Budget Committee:

"Just to understand, it is not that employers are laying people off," Ryan said.
"That is right," Elmendorf said.

There is a huge difference between being fired and quitting, as anyone who has actually held a job knows.  As Elmendorf testified:

The reason we don’t use the term “lost jobs” is there is a critical difference between people who like to work and can’t find a job — or have a job that’s lost for reasons beyond their control — and people who choose not to work. If someone comes up to you and says, “The boss says I’m being laid off because we don’t have enough business to pay,” [then] any other person feels bad about that and we sympathize for them having lost their job. If someone says, “I decided to retire or stay home and spend more time with my family and spend more time doing my hobby,” they don’t feel bad about it — they feel good about it. And we don’t sympathize. We say congratulations.

Exactly!  But some conservatives are so sure that no Obamacare news is good news they simply pretend that the “lost jobs” tale hasn’t been thoroughly debunked and persist in their misrepresentations.  Consider the semantically-challenged David Harsanyi:

“Obamacare is inducing labor demand to shrink!” doesn’t have the quite the same punch as “Obamacare is costing us jobs!” though both are accurate.

No, normal English usage compels us to call the first sentence accurate, the second one inaccurate, and Harsanyi’s point ridiculous.

Some conservatives deny that even though Obamacare will let some people quit their jobs, that won’t constitute an increase in their freedom.  Charles C. W. Cooke writes in the National Review Online that whatever else one can say about taxing one person to subsidize another:

one cannot claim that it makes either man “free” — at least not without twisting the word and the concept that it represents beyond all meaningful recognition.

That’s because the need to scramble for survival does not constitute coercion in any sense:

Does the Obama administration really plan to make the case that negative liberty is but a mirage and that, the state of nature’s “forcing” one to work being akin to actual compulsion, the state must step in everywhere to liberate the citizenry from reality’s harsh claims? One suspects not.

Let’s overlook Cooke’s rather slapdash treatment of the theoretical concepts of negative liberty and the state of nature, and rephrase his position in everyday terms: He seems to be saying that the brutish struggle for existence is an unavoidable reality of even a thoroughly free life; alleviating that brutishness does not increase one’s freedom, only one’s comfort.  Every person, every creature, in every situation, must struggle for sustenance and shelter.  This feels intuitively plausible: it seems a little odd to think of the demands of one’s own biology as coercions.  But this argument overlooks two important points.  First, there’s no reason an increase in comfort can’t yield an increase in freedom.  To the extent that it’s actually possible to moderate the struggle for survival such that one’s biological needs don’t consume one’s resources to the same degree, those needs can be coherently thought of as coercive.  If survival didn’t compel one to spend so much time hunting down wooly mammoths or waiting on tables then one would have more options, more control over one’s life, more freedom.  Second, in modern society both the freedoms and constrictions of economic life are not just natural, but social as well; they manifest the rules we’ve agreed to live by.  There is a difference between the hinter-gatherer chasing down prey on the savannah and the worker who through lack of independent means is forced to sell his labor on the open market.  In the modern world economic survival can be made less or more harsh by (among other things) actions of society or the state.  Marginally liberating individuals by subsidizing their health insurance is not like trying to counteract all of “reality’s harsh claims”; it’s not like trying to repeal old age or gravity; it’s more like a hunter-gatherer discovering a grove of abundantly productive fruit trees.  It’s more like winning a lesser lottery ticket.

But, though Cooke’s logic does not convince, it does illuminate.  Misapprehending capitalism, a social institution, as a purely natural phenomenon – like the struggle for survival – is a widespread conservative fallacy.  Perceiving all political and social issues as amenable to black-and-white moralistic solutions is another.  Put the two together and you have conservative economics.  To Cooke, when the state tries to revise the natural workings of the market it commits both arrogance and immorality.  His conservative colleague, writer Michael Goodwin, likewise considers it a sin, and the abetting of sin: Choosing to work less hours because the government subsidizes your health insurance is shameful, if not downright un-American!

In [the old, pre-liberal] America, work, any work, was honorable while being on the dole was cause for shame. Still is.

That is, liberals are blind to the moral nobility of self-sufficiency; that’s probably why they’re always plotting to ensnare people into government bondage:

This anti-job, pro-dependency tilt is the crux of the nation’s polarization. In essence, it pits those who believe in the sanctity of work against those who believe in penalizing wealth and redistributing its fruits.

Sanctity!  Goodwin beats even Cooke in the competition for most abstractly moralistic understanding of labor in the modern world.  Cooke may believe it’s natural but Goodwin actually believes it’s holy!  Goodwin attempts to describe the essence of our national polarization, but instead he embodies it.  Conservatives issue furious sermons about the naturalness and sanctity of the free market while ignoring its actual results.  Liberals actually perceive capitalism’s “harsh realities” – its coercion, its amorality, its inability to deliver universal healthcare – and hope to moderate them in limited and prudential ways that increase individual comfort and freedom.  Moralistic, dogmatic platitudes vs. pragmatic, prudential solutions.  That’s the real crux of our polarization.  Here it pits the absolutist, pre-ordained certainty that the state can’t possibly make anyone freer against the practical reality that sometimes it does just that.

And there’s all the usual handwringing about the evils of redistribution.  As Repair_Man_Jack of redstate.com puts it:

The freedom to sit on your butt and do nothing at another citizen’s expense is expressly parasitic and malignant.

Well, at least he concedes it’s freedom!  But all social insurance requires redistribution, from Social Security to unemployment insurance to student loans to Medicare and Medicaid.  Every government activity, even the provision of education and highways and the military, includes those who pay who will not benefit and those who benefit who have not paid.  You can’t have anything like universal healthcare without some redistribution; the young, healthy and affluent have to help pay for the old, sick and poor.  And once you subsidize the old, sick and poor they may find less need to hold a job or work so many hours.  To pay for Obamacare you do have to marginally increase someone’s taxes and that does marginally decrease that someone’s freedom.  That is, you’re redistributing not only money, but freedom.  You’re marginally increasing the coercion on the taxed worker so that the Obamacare recipient can work less.  But much of the revenue for Obamacare comes from taxes on the upper economic strata (and much of the rest from hospitals and insurance companies), that is, on those who already have the most freedom.  Even the extravagantly hated individual mandate to buy health insurance is really only a tax on not buying it, and a minor tax at that.  And everyone may someday need government-subsidized healthcare; indeed, every American who lives to 65 qualifies for Medicare, a program even Tea Partiers seem to love.  Why is Obamacare is any less defensible?  If you believe they’re all indefensible and the entire welfare state should be repealed, you’d better be prepared for the quite harsh economic and social conditions that prevailed before its creation.  Would that represent an increase in freedom? The person who worked 14 hours a day in deadly conditions his entire life without hope of retirement might have found some appreciation in the purely abstract freedom of his condition, but it’s doubtful that offset the all-too-real crushing coercions he actually lived under.

But from the perspective of the highly moralized conservative point of view, redistribution is robbing Peter to pay Paul, and it not only cheats Peter, it diminishes Paul.  As Jonathan Chait explains, Obamacare recipients have become the new welfare queens.  To John Podhoretz such recipients risk the loss of self-sufficiency:

This is the classic problem of a government handout: It can become more alluring to those who receive it than the prospect of a life lived without it.

Charles Krauthammer puts it rather less kindly:

In [Obama’s] new opportunity society, you are given the opportunity for idleness while living parasitically off everyone else.

Repair Man Jack gets downright visceral:

So behind all the benevolent language about being free to quit is a call to greater personal dependence instead of responsibility. Why isn’t this relief from responsibility good? It is antipodal to good because it takes a free-minded, productive and independent citizens and turns them into the human equivalent of intestinal parasites. These parasites then degrade and eat out the sustenance of others.

Jack’s fascination with intestine-eating aside, a person who works less or quits their job because of government subsidies is not a parasite.  What have we come to that American workers actually need to be defended against such vile slander?  These are people who have been working or looking for work, not looking for a handout.  Health insurance subsidies do not “turn them into” anything other than healthier, more secure, more autonomous Americans. Are people who retire on Social Security parasites?  What about capable and healthy retirees?  Should Social Security be repealed so they’re forced to get off their lazy butts and go hustle for jobs?  Or consider the G.I. Bill, which provided government-sponsored mortgages, business loans and college tuition for servicemen and women returning from World War II – did it turn them into parasites?  And just because Obamacare allows a person to quit her job doesn’t mean she has stopped working (especially if she is merely working fewer hours).  A person who stays home to take care of her children or her parents or her home is still working and still contributing to society.

But, though government assistance need not transform one into a parasite, you need not be a raving hysteric to appreciate that it might weaken one’s self-sufficiency, it might weaken one’s work ethic; indeed, it might weaken everyone’s.  Andrew Sullivan almost agrees with Goodwin about the crux of our polarization:

It’s struck me that there is an underlying anxiety to several of our current debates on economic and social issues. That anxiety is that the American work ethic – unparalleled in the developed world – is under threat. That’s the real critique of Obamacare

Though it’s not clear he’s on Goodwin’s side of that polarization:

The Protestant work ethic we have, for example, is the imperative for industrious striving, self-advancement and material gain. It is emphatically not about being happy. And at some point, if those two values are not easily compatible, something will give.

The Puritan work ethic has, to a great extent, served us well, though it does have the downsides that Sullivan touches upon.  But that work ethic doesn’t seem dead just yet.  There is an ongoing tension in American public life between the pragmatic need to ameliorate the excesses of capitalism and a political folk culture that worships self-sufficiency, and that tension is not about to ease any time soon.  And even if the liberal view of capitalism came to dominate it would not necessarily mean the death of the work ethic.  One of liberalism’s fondest dreams is that working people be fairly rewarded for their labor.  Second-guessing capitalist outcomes looks like an attack on the work ethic only if you believe the harshness of the market is a necessary corrective to the enervating human desire for sponsored comfort.  To conservatives, the unforgiving necessity for hard work is positively beneficial in that it polices a naturally weak and unambitious populace.  But American workers want just what liberals want for them: to work hard and to reap the benefits, one of which might be working fewer hours because of a health insurance subsidy.  Should we really fear that when the workers in question leave their jobs they will so casually fall into inactivity, despondency and sloth?  At base, the fierce conservative attack on the welfare state is about the Puritanical dread of corrupting, lazy irresponsibility.  They’re convinced the freed man won’t feel the need for work, the urge to create and produce and contribute we ascribed to the lottery winner; instead he’ll embrace indolence, hedonism and immorality.  So the workforce must be kept hungry; not because hungry workers will work for less (though the investor class does not object), but because hunger keeps them busy, it keeps them honest.

We see the political forces arrayed against freedom for the American worker:  There is an ideological worldview that sees exemption from wage labor as unnatural and morally debilitating, a culture that equates moral value with economic value and freedom with self-sufficiency.  There is the warped version of the work ethic that’s convinced that inside each worker is a welfare cheat just aching to jump out.  And there is the ferocity of a partisan movement in the grip of these mythologies, righteous in its insistence that moralistic absolutes override the bread-and-butter concerns of people’s actual lives.  And, most fundamentally there are the ideological blinders that prevent the clear apprehension of the coercion that plays such a large part in the lives of working people.  Cooke finds:

a great deal of truth in The Economist’s observation that “a job is an economic transaction between a seller and a buyer of labour, and can be ‘destroyed’ if either seller or buyer walks away.”

It may seem here that Cooke is toying with the pretense of some of his less scrupulous conservative colleagues that the CBO report proves Obamacare is destroying jobs.  But it’s not mendacity that tempts him to support the Economist’s laughable “observation”, it’s the constrictions of his own ideology.  In real life, no job is destroyed when a worker walks away; there is always a line of people eagerly waiting to take his place (especially during a weak recovery).  A job is a thing an employer dispenses; it cannot be destroyed by a seller of labor.  Labor is a buyer’s market; in the real lives of most people, the employer holds the power.  CBO Director Elmendorf reminds us how we pity the man who’s been fired, but congratulate the man who quits.  That’s because the quitting man has acquired the economic power to meet the boss as an equal, as one who is free of the boss’s power.  Such a man has shed one of life’s coercions.

But there is no room in conservative ideology to address that coercion; that’s why conservatives have been so exercised by a provocative tweet from the Huffington Post’s Congressional reporter, Michael McAuliff:

There's an irony in the GOP complaining that ACA lets people quit jobs. I mean, what's wrong with freedom?

Conservatives can’t imagine a subsidy recipient has been freed from a compulsion whose existence they can’t even perceive!  In their worldview it’s not only acceptable, but essential that families mold individuals, schools indoctrinate them, religion restrain them, mores chasten them, and the market allocate them.  But interference from the federal government is the darkest tyranny!  What’s actually wrong with freedom – actual individual freedom – in the conservative mind is that it dis-empowers families, schools, religion, mores and the market.  The freedom that conservatives genuinely value is the unconstrained power of those institutions to exert their traditional moral authority over their charges, to manage them.

To be fair, there is another side to such freedom that conservatives value at least as much: the individual self-sufficiency those institutions are charged with instilling and enforcing.  To a conservative, individual freedom without individual responsibility is no freedom at all.  Overlooking the semantic confusion, liberals value their version of freedom because it allows individuals to pursue their own goals and develop their individual talents and personalities.  Conservatives value their version of freedom because it produces righteous and responsible providers and protectors (yes, it still includes a profoundly male tone).  But it’s a strange sort of freedom that requires ongoing and overpowering direction and enforcement from social institutions like the church and the market.  Once again, it’s not clear how much conservatives trust truly free individuals to make their own choices.  To a liberal, if a subsidy allows an individual to develop herself more, then she simply is more free, regardless of the financial source for the subsidy.  To a conservative she has forgone her freedom, her autonomy, for a gilded cage.

Comprehensive freedom from work is, of course, both impossible and undesirable, while comprehensive freedom from drudgery is merely impossible.  The struggle for existence and the capitalist need for wage labor are, obviously, the most important and most inescapable enemies of freedom from drudgery.  But if we can allow workers to work marginally less and in such a way that it barely affects either the economy or the social fabric, then what is so wrong with that?  At bottom, conservatives reject the notion that such workers are more free because they’ve confused freedom with responsibility.  Freedom seems to be merely their word for the arrangement of interlocking, constraining institutions that punish irresponsibility and thereby enforce morality.  The conservative sensibility, with its overwrought Puritan anxieties, can’t seem to escape the fear that real freedom – freedom to say “No” to the boss or the patriarch or the minister – is dangerous.  That’s because real freedom means the redistribution of power – the power to quit without starving, power over your own time and energy – and that threatens traditional authority and the view of moral order it represents.  That’s what’s wrong with freedom, as far as conservatives are concerned.  But given the overwhelming necessity of work and the coercion it entails, respect for the labor of our fellow Americans should prevent us from begrudging them the small slivers of power and freedom we might provide.  Their respite from drudgery represents a small victory for everyone who labors.  Let’s trust them to enjoy it and cultivate it and profit from it as they will.

Friday, November 15, 2013

Toward a Smarter Welfare State

“Should any political party attempt to abolish social security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again in our political history.” – President Eisenhower

The recent government shutdown and debt ceiling standoff have deepened and illuminated the most important division within conservatism, that between the pragmatists and the radicals.  The latter were only too happy to use any means necessary – even the threat of economic conflagration – to slay the monsters of Obamacare and debt, while the pragmatists understood that political battles are won with more than the simple iron resolve that moral certainty bestows.  That is, the radicals have jettisoned pragmatic considerations almost entirely, as if process and outcome were dirty words, corruptions that only inhibit the full manly functioning of righteous moral strength.  How can you compromise when your enemy is the socialist vanguard pointing like a dagger at the heart of Americanism?  But alas, the real world – a Democratic Senate and president, an anxious business community, an unconvinced public – turned out to be less than tractable to idealistic holy war.  As the pragmatists perceived all along, bravado has its limitations.

But the differences between the pragmatists and radicals are more than merely tactical or stylistic, they are substantive as well.  In the past few weeks a few thinkers on the right have explicitly endorsed the welfare state as created by liberals in the 20th century.  Here’s Arthur Brooks, president of the conservative American Enterprise Institute:

One of the things, in my view, that we get wrong in the free enterprise movement is this war against the social safety net, which is just insane. The government social safety net for the truly indigent is one of the greatest achievements of our society. And we somehow want to zero out food stamps or something, it’s nuts to want to be doing something like that. We have to declare peace on the safety net.

And James Pethokoukis, Brooks’ colleague at the AEI, acknowledges that without federal welfare programs our recent economic troubles would have impoverished many Americans:

The pain from the Great Recession, as bad it was, would have been far worse for middle- and low-income Americans if we were still in a sort of 1920s, Coolidgean world that many on the right these days seem to long for.

Even hard conservative columnist Charles Krauthammer agrees:

There’s no question of accepting the great achievements of liberalism — the achievements of the New Deal, of Social Security, Medicaid, Medicare.  The idea that you rescue the elderly and don’t allow the elderly to enter into destitution is a consensual idea [accepted by] conservatives, at least the mainstream of conservatives.

When such important conservatives urge a declaration of peace on the social safety net, it’s news!  Until now this has been the position that dare not speak its name, at least not sincerely.  Conservatives constantly issue protestations of support for programs like Social Security and Medicare, but haven’t we known all along they didn’t really mean it?  Liberals, at least, have long suspected as much.  If Brooks, Krauthammer, et al. are urging conservatives to accommodate the New Deal doesn’t that mean that until now they’ve been waging war against it?  Haven’t they been trying to roll it back since, well, since it was created? Certainly Red State writer Erick Erickson understands that the founders of modern American conservatism hoped to roll it back:

The present editors of National Review, over the last several years, have made it clearer and clearer that they now speak mostly for the well-fed [i.e. accommodationist] right and not for conservatives hungering for a fight against the leviathan. They have made their peace with the New Deal, moving beyond Buckley. For that matter, Mike Lee, Ted Cruz, and most of the defunders have largely made their peace with the New Deal. And still National Review is too timid to join the merry band of defunders themselves too timid to approach the parameters under which William F. Buckley started his charge.

To Erickson even the rabid radical insurgent Senators throwing their own bodies into the gears of the welfare state – pledging their sacred honor and risking almost certain presidential candidacy – have too easily resigned themselves to the slow suffocation of liberty that is the welfare state.  Has extremism for its own sake become Erickson’s pre-eminent value?

If the radicals consider Cruz and Lee to be too accommodating then they naturally perceive the welfare state concessions of Brooks, Krauthammer et al. as nothing more than abject surrender to the statist enemy.  To Andrew C. McCarthy of National Review, it’s obvious that all real conservatives oppose the safety net; to accept it is to “deviate significantly from . . . the tradition of Buckley, Goldwater, and Reagan.”  No real conservative could accept “redistributionist schemes that fleece some citizens for the benefit of others.”  McCarthy’s definition of conservatism precludes support for any program based upon progressive taxation, i.e. everything on Krauthammer’s list.  The entire liberal welfare state project is just a huge scam:

The New Deal and its Great Society successor programs, by contrast, are frauds designed to create permanent dependency on government (and fealty to the party of government).

The welfare state is a devious instrument designed to enslave the population.  The well-off are tied down by taxes and regulation and their lessers are urged to discard their self-sufficiency and lounge lazily in the gilded cage of government largesse.  And liberal politicians sit at the top, laughing malevolently as they corrupt the moral principles Americans once held dear:

There is no disciplining or escaping Leviathan. And if, as is inevitable, federal officials expand their outlandish schemes and promise favored constituencies more than they can deliver, they just borrow or print ever more money: Government borrows from its tapped-out self, monetizing its debts, degrading our currency to reward sloth and punish thrift even as it steals from future generations.

Even a onetime moderate like Mitt Romney seemed to actually believe such foolishness, or pretended so to raise money.  But does this McCarthyite nonsense represent the mainstream of conservatism?

Reihan Salam – a genuinely thoughtful conservative, one always worth reading – puts all this in perspective:

Recently, a friend of mine observed that conservatives can be divided into roughly three camps with regards to the idea of a federally-financed social safety net: (1) there are those who oppose it on normative grounds and who believe that political efforts should be geared towards rolling it back; (2) there are those who oppose it on normative grounds yet who recognize that its political entrenchment can’t be wished away, and so they believe that political efforts should be geared towards containing its size, restraining its worst excesses, improving it at the margins, and rolling it back when the opportunity presents itself; and (3) there are those who affirmatively believe that the federal government ought to play a role in financing the safety net, yet who are keen to make it as fiscally sustainable, work-friendly, and pro-growth as possible.

Both the first and second groups – call them purists and pragmatists, respectively – wish to cleanse America of the corruption that is the liberal welfare state; but the pragmatists, daunted by its deep popular support, wish to fight it with prudence and stealth.  The third group – call them technocrats – wants to remake it in conservative fashion.  The purists and the pragmatists differ only in means; the technocrats differ from the other two in ends.  Most of the Tea Party clearly falls into the first group, while most of the GOP establishment falls into groups two and three (or is it only group two?).  Indeed, the goal of the Tea Party is to make the Republicans exclusively purist!  And the purists seem to have trouble distinguishing the pragmatists from the technocrats.  McCarthy, for instance, seems to think the establishment is entirely made of technocrats:

It is not an exaggeration to say the GOP establishment is more sympathetic to Obama’s case for the centralized welfare state than to the Tea Party’s case for limited government and individual liberty.

No, it is quite an exaggeration, as any liberal can attest.  Salam’s categories are quite illuminating. Consider that while many conservatives denounced Romney’s 47% remarks, many supported them.

But the purists are indulging themselves in one great denial fantasy.  Simply put: the welfare state is here to stay.  Conservatives typically make a great show of accepting the sad inevitabilities of human existence – notably social inequality – while decrying the liberal urge to improve society as foolish utopianism.  But isn’t the welfare state, even with its systemic downsides, part of the fabric of society, and a beneficial part, at that?  Doesn’t it make capitalism more humane?  Doesn’t the public – even the Tea Party with their “Keep Government out of my Medicare” signs – demand its continuance? Aren’t purist conservatives – wide-eyed idolaters of virtuous, anarchic capitalism – the true utopians?  The group we’re calling conservative pragmatists are only pragmatic about methods; there is nothing pragmatic about hoping to repeal the New Deal.  Not because the American people would loudly object; but because modern capitalism unfettered by a strong, countervailing welfare state would cause intolerable economic and social suffering.  Indeed, it was the concession to pragmatism – a classic conservative principle from Aristotle to Burke – that brought liberals from their classical free market idealism to the modern welfare state meliorism they now advance, if sometimes in excess.

Ah yes, liberal excess.  Wouldn’t conservatives better serve their country by making themselves the skeptical interrogators of liberal schemes rather than romantic, bomb-throwing revolutionaries determined to blow them up?  Do they wish to destroy America in order to save it, or do they wish to really make it better?  Conservatives are painfully aware that the real world, with its overwhelming complications and obstinate unpredictability can confound the noblest and best researched reform plans.  Humans have a way of undermining the most incisive sociology.  Which isn’t to say that no program can be well designed or positively beneficial; many are.  It’s to say that of all the contributions that conservatives might be disposed to make to our arguments over the structure and scope of our national welfare state, the most helpful is keeping liberals humble.  Constructive conservatism can keep liberal feet on the ground.  And it could force liberal awareness of the genuine moral dangers – dependency, rent-seeking, alienation – lurking behind all welfare programs; not in order to sabotage those programs, but to strengthen them.  Together, hopeful liberalism and cautious conservatism could forge a smarter welfare state.

And liberals must learn not to confuse constructive, technocratic conservatives with the pragmatic or purist ones.  Not all conservative welfare proposals are demolition plans in disguise.  Though, sad to say, many are.  Does anyone really believe that George W. Bush proposed the partial privatization of Social Security in 2005 in order to save Social Security rather than starve it of funds?  And no reasonable person can mistake Paul Ryan’s plan to turn Medicare into a system of ever-less-valuable vouchers for a plan to save that program, despite protestations to the contrary.  Even if ideologues like McCarthy find Ryan’s proposal much too welfare-friendly, the numbers simply prove otherwise.  And all the recent supposed panic over the size of the national debt is primarily a technocratic excuse for the purist desire to reduce spending; if the debt was their real concern conservatives would be only too happy to raise taxes as well. Liberals can be forgiven for not trusting technocrats when the principal intent of the pragmatists is to trick people into thinking they’re technocrats!  The best recent example of liberals reaching out to conservative technocracy is the Obamacare saga.  President Obama, the Conciliator in Chief, crafted a market-friendly health insurance program originally proposed by seemingly genuine technocrats in reputably conservative think tanks, successfully launched in Massachusetts by its genuinely technocratic Republican governor, and supported by a whole host of (quite transparently) pragmatic conservative heavyweights.  What did liberals get for their attempted compromise?  Purist stonewalling, mendacious propaganda and McCarthyite paranoia.  At any stage in the legislative process conservatives could have joined in and helped improve Obamacare; even now they stubbornly refuse to do so.

How can liberals hope to deal in good faith with a party so dominated by purists and pragmatists?  A party in which the purists think their own pragmatists are traitors to the essence of America?  A party whose pragmatists deliberately conceal their true purist intentions?  Genuine conservative technocracy seems as elusive a mirage as the purist dream of a dismantled welfare state.  We seem to be stuck for the foreseeable future with a Republican Party and a conservative movement in thrall to populist Tea Party purism.  And we see now that the real conservative divide is not, as is normally understood, that with purists on one side and pragmatists and technocrats on the other.  Rather it’s between those who would – with whatever tactics – undermine the welfare state and those who would improve it, between conservatism as a small-government crusade and conservatism as accommodation to the real world.  But this is quite an uneven division; adult conservatism seems to exist only among a very few thoughtful writers, like Reihan Salam, Conor Friedersdorf, Daniel Larison, Russ Douthat, David Brooks.

If there is hope it resides with what some have called Sam's Club Republicans; that is, working class whites with generally conservative instincts who nevertheless wish the federal government would do more to ameliorate their tough economic conditions.  Such a group might make a respectable constituency for a genuinely technocratic Republican Party.  For the moment they seem to lack the populist passion displayed by their upscale, better-educated Tea Party overlords; but a smart politician might appeal to them with a technocratic program that satisfies both their instincts and their interests.  There are perfectly workable and sustainable conservative technocratic proposals, as Obamacare itself is beginning to show (alarmism to the contrary). Widespread support for a moderated welfare state would go a long way toward marginalizing Tea Party purism and easing the unbearable polarization that causes us so much grief.   The welfare state – fought for by working people, desperately needed by the poor, embraced by a middle class frightened of capitalist cruelty, wrangled from hard struggle against concentrated wealth and privilege – is too precious, too necessary to be lost.  The good news is that it won’t be.  The bad news is that one of our two major parties is dominated by those who don’t think that’s good news.  At least – and at last! – Arthur Brooks, Charles Krauthammer, Andrew McCarthy and Reihan Salam have made all that quite clear.

Monday, March 4, 2013

The Value Theory of Labor

What is the value of a person's labor?  This is the question at the heart of the debate over the minimum wage, a debate re-ignited by President Obama’s call to raise the minimum wage from $7.25 to $9 an hour.  Such a question may sound like an economic question, but it is in fact a political question.  Common sense says wages should be determined by the market; that is, the employer and the employee in question should negotiate a mutually agreeable wage based upon their particular interests.  But it is society as whole that determines what is common sense in such matters.  Economic decisions cannot be so cleanly removed from the moral and social assumptions that condition them.  And liberals and conservatives, of course, bring with them quite different assumptions, based upon quite different understandings of the nature of capitalist economic activity.  Both sides reference studies, pro and con, on the economic effects of raising the minimum wage, but that argument misses the deeper issues.  When we argue over the minimum wage we are really arguing over which moral understanding of capitalism should inform government policy.  That’s why liberals and conservatives cherry-pick the economic studies that buttress their respective positions.  We don’t practice economics, we choose economics, and for that we are all responsible.

Liberals believe that, ideally, economic activity should satisfy three considerations: economics, justice, and social stability.  First, it should pay economic actors (workers, employers, investors) their market value.  Second, it should benefit them enough to live decently; it should keep them out of poverty.  Work is itself a moral good, not merely an economic one.  Steady work makes a person more responsible and orderly and productive, and justice demands that its rewards should reflect that moral worth.  Every honest job imparts dignity, but meager wages insult that dignity.  Third, work which satisfies the second consideration will make society stronger.  A just economy makes a stable society.  A well-cared-for worker contributes socially; he plans for the future and raises his children to also be responsible and productive.  That is, a well-paid worker is a happy worker and a happy worker is a good citizen.  Obviously, though, in the real world it happens all too frequently that the second and third considerations are not satisfied.  It is a stark injustice for a person to be paid only $290 for 40 long hours of flipping burgers or mopping floors.  And if there were no minimum wage at all, he might make much less.  Honest work deserves more.  It earns more.

Of course, conservatives care just as deeply as liberals about economics, justice and social stability.  But we can clearly see the major difference between liberal and conservative views: To a conservative, a just wage is the market wage, there can be no discrepancy.  That is, there are no moral or social considerations that demand a worker be paid more than the market pays him.  The unfettered market delivers justice all by itself; it rewards virtue and punishes sin.  If a stock broker makes $300,000 a year and a cashier makes only $15,000 it’s because the stock broker is determined, hard-working and self-disciplined and the cashier is lax, lazy and self-indulgent.  Their wages represent their respective moral worth.  Any independent moral judgments or attempts to interfere in capitalism – such as mandating a minimum wage – only undermine the wonderful moral enforcement mechanism that is the free market.  Indeed, to even question the results of the free market is to undermine that moral enforcement.  This explains conservative temper in the face of liberal criticism of economic outcomes.  If you tell that cashier that his labor deserves more than $15,000 then you’ve removed his incentive to become as determined, hard-working and self-disciplined as the stock broker.  You’ve weakened him morally.  You’ve filled him with resentment and envy.  He’s now less of citizen, less self-reliant, more likely to become a ward of the state.  This is the crucial point: to a conservative, labor loses its social value if its moral value is not explicitly equated with its economic value.

Now, this conservative identification of economic and moral value is sometimes mistaken for amorality.  It may look as if conservatives applaud capitalism’s ruthless pursuit of profit, as if they’re refusing to make moral judgments about its materialism, destructiveness and chaos.  And that would be uncharacteristic, given the stern, black-and-white judgments conservatives typically make on other matters, such as drugs, crime, and sex and procreation (especially on sex and procreation!).  Indeed such moralism seems essential to conservatism.  But conservatives have not freed capitalism of moral judgments; instead they perceive capitalist outcomes in and of themselves as proper moral judgments.  Their Puritan moralism doesn’t overlook capitalism, it pervades it, it absorbs it.  Moralism is the way they understand capitalism; it’s the way they incorporate it into conservative ideology; it’s the way they profess capitalism while remaining conservatives.  But the result is that the workings of capitalism become sanctified, they come to define morality rather than the other way around.  Moralism becomes the servant of capitalism, God the servant of Mammon.  And, as we saw, capitalism becomes immune to criticism.  When was the last time you heard a conservative decry labor exploitation or growth in inequality?  Liberals are able to see capitalism as sometimes ruthless, destructive and chaotic; their ideology allows them to make such independent moral and social judgments.  They understand that capitalism is as imperfect as any human institution, that it takes as well as gives, that along with its enormous benefits comes the occasional loss.  On this issue, the conservative position is a caricature of the liberal one.

But conservatives also fear the instrument that liberals propose for making economics more just: the state.  But it’s not that they fear the loss of freedom that accompanies state intervention in the economy; more precisely, it’s not only that (fears of tyranny figure heavy in conservative lore).  What they really fear is losing the moral enforcement that only a free market can provide.  Reliance upon help from the state breeds dependence and dependence breeds irresponsibility.  Conservatives would oppose the minimum wage even if they were utterly convinced it reduced poverty, because poverty reduced by government rather than by individual effort has lost its moral force.  Poverty becomes merely an economic condition, rather than a moral one, and there would have to be unhappy consequences.  Here we see a central premise of conservative thought: policies based on false moral foundations cannot possibly have good practical results.  The moral structure of the universe has practical implications; good intentions and well-researched technocracy cannot override that structure.  Liberals, on the other hand, are more pragmatic.  Most liberals, if honestly convinced that the minimum wage harmed working people more than it helped, would abandon it and go searching for economic justice by other means.  Quite probably, some liberals would still want to keep it to send the message that society frowns upon unjust wages, but that’s not simply the left-wing version of conservative anti-pragmatism.  Conservatives don’t oppose the minimum wage because it sends the wrong message; they oppose it because morally faulty policy simply cannot work (thank God!).  To a conservative, moralism is the highest pragmatism.

But it’s ironic that the highly moralized conservative defense of capitalism fatally compromises that very morality.  When one’s morals cannot allow genuine criticism of economic reality then those morals have lost their independence, they’ve been co-opted.  Morals so subordinated to a human institution can make no credible claim to objectivity.  By defending all capitalist activity as an expression of God’s will, modern conservatism has made morality into the public relations firm for capitalist amorality, for its materialism and consumerism and thoughtless acquisition.  This is morality in the service of relativism.  It’s almost as if conservatives had become libertarians.  Conservatives and libertarians, of course, both support the free market and are thought to differ only in their views of social issues (e.g. the legality of marijuana use).  But the libertarian view of capitalism is essentially amoral; the highest good is freedom from forcible coercion and what people do with that freedom is not a libertarian concern.  This means that, unlike liberals and conservatives, libertarians want wages to represent only economic value, nothing more.  Non-economic considerations like justice and social stability simply don’t apply.  Conservatives defend the free market because it is just, libertarians defend it because it is free.

Modern liberals, on the other hand, perceive that all too often it is neither. They evaluate capitalism based upon independent moral ends; those ends to be achieved through pragmatic and prudential means.  Modern liberal pragmatism arises from that most conservative insight, that human frailty precludes perfect and definitive solutions. And the sources of modern liberal moralism are found in the animating principles of classical liberalism: humanitarianism, freedom from arbitrary power, individual control over one’s labor and one’s life.  Libertarianism springs from the same classical liberal ground, but its amoral embrace of the free market is just as corrupting as conservatism’s hyper-moral embrace.  Libertarian support of capitalism, based upon an explicit moral theory of laissez-faire, is less hypocritical and confused than conservative support, based as it is upon the conflation of objective morality with the workings of an all-too-worldly institution.  But neither ideology is capable of addressing the moral and social downsides of modern capitalist life.  It has fallen to liberalism to be the conscience of capitalism.  In the spirit rather than the letter of classical liberalism, modern liberals endeavor to protect the individual from the coercion of any institution which seeks to exploit him.  And in the spirit rather than the letter of classical conservatism, they’re willing to use the state – tamed by democratic accountability – to effect that protection.  Independent and humanitarian morality made effective through tentative and pragmatic policy, the prudent in the service of the good, surely that combination represents the best way to protect economics, justice and social stability.