Direct Ways to Combat Economic Inequality

Social democrats are spurned by hard-core leftists because the former do not espouse the complete overthrow of the market.  Rather, the social democrat accepts that market economies have various things to recommend them, including efficient production of goods and provision of economic well-being to large numbers.  That economic well-being is also a crucial source of countervailing power against the potential tyranny of the state.

The point is decidedly not some claim that the market is perfect.  Far from it.  Like all sublunary things, it is very imperfect (hence its efficiencies are far from ideal, but are still a real thing given that we do not live in a frictionless world).  But non-market processes and institutions are far from perfect as well.  The idea is 1) to have checks and balances so that the worst tendencies of any and all human arrangements (from the family to the market to the state) are prevented, and 2) to use what powers we have to move from the negative goal of preventing harm to the positive goal of promoting well-being (or “flourishing” to use the term Martha Nussbaum has appropriated from Aristotle).

Central to this debate on the left is a kind of fatalism adopted by the non-social-democratic left, a fatalism that echoes the fatalism of the market fundamentalists on the right.  Right-wing fatalists, famously in Margaret Thatcher’s words, tell us that there is no alternative.  We are doomed to the market—and the market just means one thing.  Any tampering with that market, any regulation or interference, sets us on the road to serfdom.  Everything—from the EPA to state ownership of the steel factories—gets tarred with the same brush.  In Hayek’s bracing, macho, vision, there isn’t even much pretense that the market enables good lives.  It gives us freedom—and Hayekian freedom is about as conducive to happiness as Sartrean freedom.  It’s a grim world and you should just take your medicine like a man.

On the left, this becomes the doctrine that any form of capitalism is disastrous—with no distinction of any merit to be made between 1850 Manchester and 1950 Pittsburgh.  Both are equally evil, equally soul and body destroying, equally to be consigned to the dustbins of history. No remedial action is worth a damn; it all must be torn down.

Under current conditions, this view underwrites the assumption that capitalism inevitably leads to extreme inequalities in income and wealth.  Yet, as Dean Baker argues in this superb piece, such a claim flies in the face of historical and contemporary evidence.  The extreme inequalities of the Anglo-Saxon world are both only recent (ramping up since 1970) and are not found in non-Anglo-Saxon capitalist economies.

Which means that are various things the state can do in order to follow Robert Kuttner’s injunction (discussed in the last post) to use politics to tame the market.  Yes, left to itself, capitalist markets tend toward inequality (that is the major point of Piketty’s Capital in the Twenty-First Century).  But markets needn’t be left to themselves.  In fact, Baker’s point (and one that Karl Polanyi always insisted on) is that markets are never left to themselves.  There is no such thing as “the free market.”  The market is always structured, always a political and legal creation.  The issue is whether it will be structured such as to benefit the wealthy or to benefit the many.

Baker, then, admirably lists a series of ways to counteract the current movement toward increasing inequality.  He advocates for a Financial Transaction Tax; for a revamping of the current patent and copyright laws; for direct intervention in the ways that doctors, lawyers, and dentists are compensated; and a number of other measures.  And these are separate from more aggressively progressive tax rates and the kind of wealth tax that Piketty advocates.

Hardt and Negri declare themselves sympathetic to such proposals, but are also pretty clear that they consider them only half-measures, not likely to cure what ails us.  My own position is to be suspicious of any search for cures.  The struggle between rich and poor for control over resources and wealth is not going to be ended by an entrance into the utopia of the perfect social arrangements.  I think the left needs to abandon its dream that some permanent solution to social and economic conflict is on offer.  I think the left’s addiction to theory stems from this idea that we can think our way to justice.  I don’t think we lack the right ideas, the right formula.  We have just been getting beat.  The other side has out-organized, out-spent, and out-flanked us.  And what is true now has been what is always true.  They have the money and the power, we have the numbers.  Our organizational challenge is much greater than theirs—but so should be our passion because we are the ones being trashed.

Thinking about that passion issue will be the next post.

Democracy and Capitalism

Lots of backlog of things to write about.  But let’s start with Robert Kuttner’s superb article on Karl Polanyi in the most recent New York Review of Books. (Behind a paywall.)

Here’s Kuttner’s first paragraph:

“What a splendid era this was going to be, with one remaining superpower spreading capitalism and liberal democracy around the world.  Instead, democracy and capitalism seem increasingly incompatible.  Global capitalism has escaped the bounds of the postwar mixed economy that had reconciled dynamism with security through the regulation of finance, the empowerment of labor, a welfare state, and elements of public ownership.  Wealth has crowded out citizenship, producing greater concentrations of extreme inequality and instability, organized less for the many than for the few.”

All to true.  As various commentators have said, at least Stalin and Hitler claimed to have an ideology that justified their murderous ways.  For Trump, it’s just power.  Take that you underlings—and like it!  It’s just power.  Who, after all, is going to stop them?

And here’s Kuttner’s last paragraph:

“Democracy cannot survive an excessively free market; and containing the market is the task of politics.  To ignore that is to court fascism.  Polanyi wrote that fascism solved the problem of the rampant market by destroying democracy.  But unlike the fascists of the inter-war period, today’s far-right leaders are not even bothering to contain market turbulence or to provide decent jobs through public works.  Brexit, a spasm of anger by the dispossessed, will do nothing for the British working class; and Donald Trump’s program is a mash-up of nationalist rhetoric and even deeper government alliance with predatory capitalism.  Assuming democracy holds, there could be a counter-mobilization more in the spirit of Polanyi’s feasible socialism.  The pessimistic Polanyi would say that capitalism has won and democracy has lost.  The optimist in him would look to resurgent popular politics.”

The first point is that Hitler was a Keynesian.  Economic growth and stability insured by massive government spending.  Profits to the manufacturers, sure.  But jobs for the masses as well.

The second point is that Kuttner is a social democrat of my stripe.  Market and state must be balanced, each one working to tame the potential abuse of power by the other.  The time is out of wack because that balance has been destroyed.

This doesn’t mean a blind commitment to current political institutions—or to the state as currently configured.  But it does mean seeing politics, as Kuttner puts it, as fundamentally required to tame the market.  (My next post will feature some wonderful suggestions from Dean Baker about how to do jus that.)

Against this social democratic vision can stand the work of various leftists who say social democracy is a dead letter, a form that no longer fits the reality of our times.  Such is the position of Hardt and Negri.  I am working through their most recent book, Assembly, right now and it will be the subject of subsequent posts.

So Little Time

In an early David Lodge novel (I can’t recall its title), the narrator asserts that the difference between characters in novels and people in real life is that the characters have way more sex and less children.

I am hardly going to deny that contemporary novels usually feature more and better sex than most of us get to enjoy.  But the more striking wish fulfillment embedded in the novels I read is the abundance of time.

In A Little Life, the main character Jude is an accomplished pianist, an astounding cook (especially of pastries), takes long walks around New York City (at least until he loses his legs), works long days and most weekends at his law firm, maintains a variety of friendships, goes to art openings, the movies and plays, and oversees the renovation of at least two apartments and one house.  Not to mention the frequent trips to Europe, especially London and Paris.  If only . . .

There was brief period to time in my life when I was lonely and had time on my hands, basically the first few years of graduate school.  I did, in some ways, get more done in that time than I can, in memory, credit as possible.  The amounts I read and wrote are staggering to recall at this late date.  But even at that time I always felt pressed for time, always felt I was giving things a lick and a polish on the idea that I would return to them and give them their proper due, my full attention, at some later date.

That time in my life came to an end with the formation of some close friendships—and then my first marriage and my first job.  From that day until this, I have been deeply entangled in a network of obligations and commitments that leave little time to breathe.  Not that I am complaining.  I wanted desperately in my “out” years to move to the center of my time (a phrase from Thomas Hardy that has always been a touchstone for me).  But this busyness is always haunted by the sense of things not done, of interests left unexplored, or of tasks done in a half-assed way because of time constraints.  And it is that sense of constant hurry, or a total lack of leisure, that novels fail to portray.

Like the dyer’s hand, my nature is subdued.  I don’t think, at this point, that I am capable of doing something slowly, with pain-staking care.  I have become habituated to doing things quickly, to an ingrained sense of what is “good enough,” thus leaving time to move on to the next thing.  Just as I know that moving to the country in order to secure peace and quiet would be crazy for someone of my temperament, so the notion that I could settle into one or two activities pursued at length is most likely delusionary.  My attention span might be longer than that of our perennially maligned millennials, but I don’t want to disconnect any more than they do, even if my connections are not as often virtual.  I crave the constant input, the pace that is a little too fast for comfort, but frantic in ways that make me feel energized and alive.  Better manic than depressed any day.

Effortless Wealth

I have recently read two long novels, A Little Life by Hanya Yanagihara and The Resurrection of Joan Ashby by Cherise Wolas.  That I got through both of them is testament to their ability to grab a reader since, in my cranky old age, I now abandon novels sixty, eight, even a hundred twenty pages in, if I lose interest.

One striking thing in both novels is that the characters become wealthy way past ordinary dreams.  A thirteen year old son in the Wolas novel starts a software company that makes him a billionaire by the age of twenty-two, while his mother, the Joan Ashby of the title, just has to have her fiction submitted anonymously to a literary agent to secure million dollar advances and two million dollar movie deals.  In A Little Life the climb to fame and fortune takes a little bit longer (one of the novel’s strengths is its portrayal of young artists on the make in New York City), but the four friends at the core of the novel each succeed in ways denied to 99% of humanity, becoming a famous movie star, an acclaimed painter, a highly successful architect, and a top corporate lawyer respectively.  And they have the multiple houses and fabulous vacations to show for their virtue-gotten wealth.

Yanagihara is shrewd about the moment of the “turn,” the moment when her protagonists realize that they have “made it,” that they have stepped across the line into success.  But the shrewdness doesn’t extend to a realization that the “turn” happens to very few.  Most people slug along, with successes here and there, but without ever crossing that line, without even securing permanent fame or security.  They have “good enough” careers that are always a struggle, always retain the possibility of collapsing, don’t ever “make it” once and for all.  Just like very few people attain the levels of wealth that allow all money worries to disappear entirely.  Both novels do suggest that for people under forty these days, especially if your life is centered in New York City, it is obvious that being a millionaire doesn’t cut it.  Only hundreds of millions reaching toward a billion register in today’s economy—or today’s dreamscape.

Does this matter?  In one way, no.  If an author wants to take money and career anxieties off the table in order to focus on other things, that’s OK.  But in another way it does raise the question of the “realistic” novel.  Both of these novels tell stories about people presented as our contemporaries.  Both aspire to psychological depth and complexity.  They do aspire to be reports to readers about our current physical, mental, and spiritual condition.  So I can’t help but think that their wet dream visions of fame and wealth are telling in and of themselves.  It seems to suggest that what the two authors truly want is fame and fortune. Even if they, F. Scott Fitzgerald fashion, must rely on sheer magic to get to that promised land.  The rest be damned.

Wolas’s novel comes very, very close to making that point its main theme.  Her heroine, Joan Ashby, deeply regrets having sacrificed her art to family life.  Her “resurrection” comes with abandoning that family and, especially, her responsibilities as a mother.  Of course, she is rewarded by writing a best-selling novel and meeting a dreamy new lover.  Naturally, the new man is not just a hunk, but also a world-famous photographer. When we occupy such a blatant script of wish fulfillment, it’s hard to know how to credit the “truths” the novel clearly aspires to convey to us.

Even more confusing is the fact that the central event of the novel makes no sense at all.  Joan Ashby’s son (the other one, not the computer genius) steals an unpublished novel of hers and has it published under a pseudonym.  Somehow this is meant to assuage his horror at being the untalented one of the family.  But how?  Since the book is published under a pseudonym and he must refuse all in-person interviews or book signings in order to keep his nefarious deed a secret, what exactly did he expect to get out of this?

His mother, upon finding out, doesn’t confront him and ask why he has done this, but flees instead to India in hopes of meeting the Dalai Lama, who will bring her enlightenment.  But she also nurses a sense of deep grievance.  Her son has stolen her soul by stealing her novel, committing a sin that is irreparable.  But the remedy lies directly to hand.  Just announce to the world that the book was published under a pseudonym, but is actually the work of Joan Ashby.  There are plenty of hints, although never a direct statement, that Joan craves the attention and acclaim that comes with successful authorship.  It is that which the son has stolen from her since, after all, she has all the rest: the satisfaction of having written a well-received novel, the knowledge of having gained many readers, and all the money the book has earned.  Yet—and this is the kicker—the novel clearly expects us to sympathize entirely with Joan, to feel as outraged as her with what has transpired, and to see her flight (and refusal to deal with either her son or her husband) as not only understandable, but as heroic and noble.  The lack of any dissenting perspectives on Joan robs the book of the very depth to which it aspires.  Chasing fame and fortune trumps all else—and it is just assumed that, of course, readers will agree.  We will root for Joan and be thrilled when, in the end, she gets to have it all.

The Yanagihara novel is more complex.  It is, as its many readers and reviewers have noted, a melodrama.  Characters come in only two shades: black and white.  The one exception is the painter J.B., who drops out of the novel about half-way through.  But what the reviews I have read did not mention is how class-bound the melodrama is.  There is a wild America out there, the America of what we now think of as Trumpland.  It is a violent place, made up of sexual perverts and violent sadists.  It has no redeeming qualities and can only treat an innocent like Jude (the novel’s victim) with endless abuse.  But if you can sail from that hell into a liberal arts college and get taken up by the members and scions of the professional upper middle class, all will be well.  These people are so well-behaved, so well-meaning, so nice.  Except for one bad encounter with a violent lover, Jude is only surrounded by supportive, loving, non-violent people once he gets to college at age sixteen.  Niceness can’t overcome the traumas of Jude’s horrible childhood—which is why the New Yorker review found the novel so bracing.  Here was a writer brave enough to forego redemption or recovery for its victimized protagonist. But that’s not really how it happens.  Jude is saved by Willhelm’s love.  The author has to kill Willhelm off in a car accident to get Jude to the desired end: his suicide.  Daniel Medelsohn in the New York Review of Books thus proclaims the author the true sadist of this tale—and wonders why readers have loved a book that tortures its main character over hundreds of pages.

The lesson in Wolas’s novel seems pretty clear: money and a love of art will get you through.  Neither alone is enough, but if you have both, then you can survive this rough world.  There is more than that to Yanagihara’s tale.  What makes A Little Life such a moving novel (it is a very, very powerful melodrama, with the full Dickensian ability to make you cry) is its insistence that the real key—even though money and satisfying, well received work are essential—is friendship.  Neither novel believes (if that is the right word) in romantic love.  For Wolas, such love is a trap.  For Yanagihara, such love is only valuable the more it resembles, shades into, friendship.  Companionship is at the heart of A Little Life and the source of its emotional richness.  A disdain of companionship as weakness is what finally marks the airlessness of The Resurrection of Joan Ashby.