Trickle-Down Economics, Marginal Tax Rates, and the Rise in Income Inequality: Part 2 of Democratic Perspective’s interview with Professor Lane Kenworthy. What we really need to do if we want to successfully address the economic crisis brought about by the near-collapse of our banking system, and restore the American worker’s chance at a better life.
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As Democratic Perspective continued our conversation with Lane Kenworthy, Professor of Sociology and Political Science at the University of Arizona on Labor Day, we began by posing that question to him. Professor Kenworthy responded by saying, “To an extent. Nobody favors a perfectly equal distribution of income, but if you have a society like ours where a very small slice has been getting a whole lot of the economic growth, is it good for the middle class? Or is it bad? The best we can tell is that it’s not a healthy development.”
When asked how to address the growing income inequality, Kenworthy replied, “Some people favor pay limits on CEOs, but I don’t. For one thing, how do you then address the huge salaries for athletes and entertainers? It’s much simpler to raise taxes. There’s no indication that increasing the tax rate on the rich would create any harm.”
As to concerns that raising taxes on the wealthy will curtail job growth, Kenworthy said, “There’s nothing to indicate that it would. In fact, if the rich have to pay more of their income to taxes, it may cause them to work harder and actually create more jobs.”
As for the popular idea that running the federal government should be like managing a family budget – it should live within its means – Kenworthy stated, “This analogy gets back to the public’s frustration with the economy. People are looking for someone, or something, to blame. But the analogy is wrong on two accounts. It’s simply not true that families live within our means. We tend to be net debtors. We take out mortgages for our houses and borrow to get past problems such as car repair, medical emergencies, etc.”
“The same is true for government,” he continued. “There are needs that require borrowing and it’s best to borrow in times like now when the interest rates are low. Also, it’s good to run a surplus in good times. Our government was running a surplus in the 90s, but they forgot that principle in the early 2000s when they passed the tax cuts.”
Finally, we asked Professor Kenworthy what one thing we could do to fix the economy. He began his answer by saying, “First you have to separate the short term needs from the long term. The priority is to get back to economic growth and to improve employment. Then, for the longer run, we need to look for new sources of investment and boost wages for low-end service jobs. This is important because these jobs are now such a large part of our economy, and probably will be for the foreseeable future.”
What Is Government For? Lane Kenworthy, Professor of Sociology and Political Science at the University of Arizona, and author of Progress for the Poor, Jobs with Equality, Egalitarian Capitalism and In Search of National Economic Success, talks with Democratic Perspective about American attitudes toward government, and how the rise of economic inequality since the 1970s has affected them.
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Democratic Perspective posed the question to Lane Kenworthy, Professor of Sociology and Political Science at the University of Arizona and author of Progress for the Poor, Jobs with Equality, Egalitarian Capitalism and In Search of National Economic Success.
We began the discussion with a couple of quotes on the subject, one by Abraham Lincoln, “The legitimate object of government is to do for a community of people whatever they need to have done, but can not do at all, or can not so well do, for themselves – in their separate, and individual capacities.”
The second is by Jared Bernstein, “If too many Americans don’t believe in or understand what government does to help them, to offset recessions, to protect their security in retirement and in hard times, to maintain the infrastructure, to provide educational opportunities and health care decent enough to offset the disadvantages so many are born with…if those functions are unknown, underfunded, and/or carried out poorly, why should they care about how much this deal or the next one cuts?”
Then we turned to Kenworthy for his perspective.
“People take for granted all of the things that government can do,” he responded. “Protecting our physical safety with the police and military, money, clean air and water, liberty, sewage and water, disaster protection, to name a few. The insurance portion of government is also important, such as Social Security, Medicare, Medicaid and an array of smaller programs.”
“That’s not to say that government works perfectly,” he continued. “It doesn’t. But it is necessary.”
When asked to explain the anti-government sentiment in today’s politics, Kenworthy replied, “We have a long history of public opinion surveys. A lot will say that government should be smaller. But when you mention individual programs, the same people think we should be spending more. 20 percent of Americans believe deeply in smaller government,” he continued. “A big part of the reason is the economic crisis. When the economy is bad, a bigger share say they don’t have any confidence in government, or even the private sector. They want to blame someone for their problems.”
Finally, we asked Kenworthy to elaborate on one of his previous statements, “Although themes of opportunity and prosperity dominate American culture, more than one in ten Americans is poor according to the official government measure, inequality has increased markedly over the past generation, and the United States is more unequal than any other affluent country.”
“Things began to change in the 1970s,” he said. “During the period following WWII, we saw living standards and real income double in a generation. Since the 70s, progress has not changed. The economy grew, but wage growth slowed. And now the poverty rated is even higher after the crash.”
To read more from Lane Kenworthy, visit his blog at Consider the Evidence.
Scapegoating Immigrants: Is There a Better Way To Deal With the Issue of Immigration? Part 2 of Democratic Perspective’s interview with Aviva Chomsky. If you have a situation like the one we have in the U.S., in which the economic conditions in a neighboring country are terrible, there is an economic need to fill jobs here which no citizen will take at the wages likely to be offered, and there is no legal path to immigration for more than a few thousand people a year from that neighboring country, is simply declaring immigrants illegal and deporting them all really a solution to our mutual problem? Why comprehensive immigration reform is both necessary and inevitable.
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As Democratic Perspective continued its interview with the author of They Take Our Jobs! and 20 other myths about immigration, we began by asking if the immigration problem is just too big to solve. She responded by saying, “It depends on how you define the problem; whether you’re talking about human rights or economics.”
“In reality, the problem is mostly for the immigrants themselves,” she continued. “They have been pushed out of their homes by the international economy and denied human rights. To solve the problem, you have to start with human rights. Legislation such as the Dream Act could help. So would allowing them to get driver’s licenses and rejecting the Obama administration’s Secure Communities program.”
Speaking specifically about the Dream Act, Chomsky admitted she couldn’t understand why it hasn’t passed. “It would allow a path for citizenship only for those brought here before age 12,” said Chomsky. “It would require them to attend college or serve in our military for two years.”
“The real problem is that most people believe that there is a path to citizenship,” she continued. “You hear them say immigrants should ‘do it the right way.’ But there is no path to citizenship now. Many of those arrested are those who are re-entering the country. They went back to Mexico for some reason then try to get back to their families and homes here.”
When asked about public opinion and anti-immigrant laws such as Arizona’s SB1070, Chomsky replied, “Public opinion is very malleable. It depends on the information they’re given. Immigration reform almost passed under Bush. But the Tea Party won’t consider it. The debate on immigration is a way of creating a scapegoat for very real problems, like the economy, even the environment. They talk about going back to some mythical moment,” she said. “I ask them, ‘When, exactly?’ There has always been immigration and inequality in the US. And the human race has benefited from multi-culturalism since it began.”
That’s the title of a book by Avi Chomsky who was interviewed by Democratic Perspective. As a historian, teacher, and coordinator of the Latin American studies at Salem State College, she has become a strong voice for fairness in our economic system.
When asked about the title of her book, Ms. Chomsky replied, “When people say that immigrants take our jobs, underlying the statement are some flawed ideas of how our economy works. They don’t understand that the world economy is extremely integrated.”
“In the US, there is a dual labor market,” she continued. “One category consists of good jobs that offer security, benefits, decent pay and safe working conditions. The second category consists of jobs that are dangerous and unpleasant with no security and low wages. The jobs in the second category have always been done by those who are politically excluded, such as undocumented workers. By politically excluding workers, employers are able to exploit them. And others in our society rely on people doing these jobs.”
Of course, the question most often heard in a “debate” on immigration is “What part of illegal don’t you understand?” Although it’s intended to be a conversation stopper, Chomsky said she usually responds by saying, “What part of illegal do you understand?” She said, “The status of illegal immigrant has been created for a reason. It’s a status that gives workers no rights.”
“Compared to the jobs shipped overseas by our corporations, the jobs taken by illegals are a very small percentage,” she continued. “Every job has global connections. In reality, immigrants who come to the US create jobs because they are also consumers. They purchase food and automobiles, and they rent or buy homes. They also pay taxes in the form of sales taxes, property taxes, income taxes, even Social Security. In 2010, it’s estimated that illegals paid $12 billion into Social Security. But they are not eligible for any of the government services provided by those taxes.”
Are They REALLY Taking Our Jobs? Myths About Undocumented Immigrants. Aviva Chomsky is an American historian, author, and activist who has written extensively on immigration issues. She teaches at Salem State College in Massachusetts, where she is also the coordinator of the Latin American studies program. On this Monday’s Democratic Perspective, she discusses how the principle of political exclusion operates in our economy to guarantee a supply of labor for nasty, difficult jobs at wages that employers can justify to their investors. If slavery is no longer an option, doesn’t declaring a class of laborers illegal serve almost as well in its stead? Why animosity toward immigrants has a more destructive effect on our state economy than most Arizonans are currently willing to admit.
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The End of Extreme Politics in Arizona? Andrei Cherny, Chair of the Arizona Democratic Party, reflects on the partisan divisions in Arizona politics. He tells Democratic Perspective that the only real way to improve the governance in our state is to pay more attention to the political mainstream. He points to the increase in Independent voter registrations, and the efforts being made during the current redistricting process to increase the number of competitive districts in the state as grounds for hope that Republicans and Democrats will finally be forced to stop pointing fingers at one another and start dealing reasonably with Arizona’s problems.
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Democratic Perspective had an opportunity to visit with Andrei Cherny, former Arizona assistant attorney general, White House aide, business consultant and current Chair of the Arizona Democratic Party.
We began by asking him about the political environment in Arizona. He responded by saying, “My goal is to push politics in a better direction. Arizona is crying out for leadership. We have so many problems – the budget, turning around our schools and making our streets safer.” But Cherny says the Democratic Party has been unable to focus attention on those problems. “Democrats have a great group of people in the legislature, but they’re a super minority so they can’t have much of an impact,” he said.
“We need to push politics to the mainstream and away from extremes,” Cherny continued. “People are sick and tired of partisan politics.” He pointed to the growing number of independents in the state. “Republicans currently have a registration advantage, but voter registration is virtually one-third Republican, one-third Democrat and one-third Independent. Soon the number of independents will be bigger than either Republicans or Democrats. In the long run that will be good for state politics.”
In speaking about the current redistricting effort that will redraw the lines for legistlative districts and give Arizona another Congressional Representative, Cherny called it “The most important development in 20 years. Right now, only 3 of the 30 legislative districts are competitive. That has pushed politics to extremes because the candidates didn’t have to compete. The goal of the Independent Redistricting Commission is to seek 8, 9 or 10 competitive districts. Republicans see that as a threat. They want to continue their extreme stances. In fact, Speaker of the House, Andy Tobin has threatened to remove the independent Chair of the Commission. But fortunately, Arizona is one of only 13 states that have taken gerrymandering power away from the legislature. “
“Why aren’t we talking about jobs?” he asked. “The answer is extreme politics. When the 2012 session starts, we’ll have had five years of the worst economy Arizona has seen and the legislature has done nothing about it.”
