Tag Archives: politics

The Austerity Agenda and Public Employment

While some austerity advocates really fear (although incorrectly) the consequences of deficit spending, the strongest proponents are actually only concerned with slashing government programs or the use of public employees to provide them.  In other words their aim is to weaken public programs and/or convert them into opportunities for private profit. One measure of their success has been the steady decline in public employment.  Floyd Norris, writing in the New York Times notes:

For jobs, the past four years have been a wash.

The December jobs figures out today indicate that there were 725,000 more jobs in the private sector than at the end of 2008 — and 697,000 fewer government jobs. That works into a private-sector gain of 0.6 percent, and a government sector decline of 3.1 percent.

In total, the number of people with jobs is up by 28,000, or 0.02 percent.

How does that compare? It is by far the largest four-year decline in government employment since the 1944-48 term. That decline was caused by the end of World War II; this one was caused largely by budget limitations.

The chart below, taken from the same post, also reveals just how weak private sector job creation has been over the past 12 years (compare the top three rows — the presidencies of Obama and Bush — w job changes This graphic from the New York Times highlights just how significant the decline in public employment has been in this business cycle compared with past ones.  Each line shows the percentage change in public sector employment for specified months after the start of a recession.  Our recent recession began December 2007 and ended June 2009.   As you can see, what is happening now is far from usual.

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It is also worth noting that despite claims that most Americans want to see cuts in major federal government programs, the survey data show the opposite.  For example, see the following graphic from Catherine Rampell’s blog post. economix-22pewwhattocut-blog480 As Rampell explains:

In every category except for “aid to world’s needy,” more than half of the respondents wanted either to keep spending levels the same or to increase them. In the “aid to world’s needy” category, less than half wanted to cut spending.

Not surprisingly, this assault on government spending and employment will have real consequences for the economy and job creation. All of this takes us back to the starting point — we are talking policy here.  Whose interests are served by these trends?

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Health Care Costs, Greed, and “Socialism”

Cross-posted at Montclair SocioBlog.

The Washington Post has provided some data on medical costs across a selection of countries (Argentina, Canada, Chile, and India in grey; France, Germany, Switzerland, and Spain in blue; and the U.S. in red). The data reveal that American health care is very expensive compared to other countries.

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No wonder the US spends twice as much as France on health care.  In 2009, the U.S. average was $8000 per person; in France, $4000.  (Canada came in at $4800).  Why do we spend so much?  Ezra Klein quotes the title of a 2003 paper by four health-care economists:  “it’s the prices, stupid.”

And why are US prices higher?  Prices in the other OECD countries are lower partly because of what U.S. conservatives would call socialism – the active participation of the government.  In the U.K. and Canada, the government sets prices.  In other countries, the government uses its Wal-Mart-like power as a huge buyer to negotiate lower prices from providers.  (If it’s a good thing for Wal-Mart to bring lower prices for people who need to buy clothes, why is it a bad thing for the government to bring lower prices to people who need to buy, say, an appendectomy? I could never figure that out.)

There may also be cultural differences between the U.S. and other wealthy countries, differences about whether greed, for lack of a better word, is good.  How much greed is good, and in what realms is it good?  Klein quotes a man who served in the Thatcher government:

Health is a business in the United States in quite a different way than it is elsewhere.  It’s very much something people make money out of. There isn’t too much embarrassment about that compared to Europe and elsewhere.

So we Americans roll along, paying several times what others pay for medical procedures, doctor visits, and drugs.

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.

Politicians Overestimate their Constituents’ Conservatism

Dylan Matthews, blogging in the Washington Post, discusses a very interesting paper that provides evidence showing that politicians seriously underestimate the progressivity of their constituents.

David Broockman and Christopher Skovron, the authors of the paper, “surveyed every candidate for state legislative office in the United States in 2012 [shortly before the November election] and probed candidates’ own positions and their perceptions of their constituents’ positions on universal health care, same-sex marriage, and federal welfare programs, three of the most publicly salient issues in both national-level and state-level American politics during the past several years.”  They then matched the results with estimates of the actual district- and issue-specific opinions of those residing in the candidates’ districts using a data set of almost 100,000 Americans.

Here is what they found:

Politicians consistently and substantially overestimate support for conservative positions among their constituents on these issues. The differences we discover in this regard are exceptionally large among conservative politicians: across both issues we examine, conservative politicians appear to overestimate support for conservative policy views among their constituents by over 20 percentage points on average… Comparable figures for liberal politicians also show a slight conservative bias: in fact, about 70% of liberal office holders typically underestimate support for liberal positions on these issues among their constituents.

The following two charts illustrate this bias when it comes to universal health care and same sex marriage.

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As Matthews explain:

The X axis is the district’s actual views, and the Y axis their legislators’ estimates of their views. The thin black line is perfect accuracy, the response you’d get from a legislator totally in tune with his constituents. Lines above it would signify the politicians think the district more liberal than it actually is; if they’re below it, that means the legislators are overestimating their constituents’ conservatism. Liberal legislators consistently overestimate opposition to same-sex marriage and universal health care, but only mildly. Conservative politicians are not even in the right ballpark.

The authors found a similar bias regarding support for welfare programs.  Perhaps even more unsettling, the authors found no correlation between the amount of time candidates spent meeting and talking to people in their districts while campaigning for office and the accuracy of their perceptions of the political positions of those living in their districts.

One consequence of this disconnect is that office holders, even those with progressive views, are reluctant to take progressive positions.  More generally, these results speak to a real breakdown in “the ability of constituencies to control the laws that their representatives make on their behalf.”

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Politics and the Rape Metaphor

Re-posted to add to the discussion about sexual assault in the aftermath of the Steubenville rape trial, the Senate hearing on rape and harassment in the military, and the controversy at Occidental College.

Nizam A. sent in a rather stunning two-minute, 15-second clip put together by Media Matters.  It is a montage of the use of rape as a metaphor by right wing pundits (trigger warning).  To be fair, I don’t know if a similar video could be made using left wing pundits, so it may be best in comments to stick to a conversation about the metaphor itself.

Why it this such a popular way of talking about the world?

How does it work?  Does the metaphor, given that we think of rape as a crime that men do to women, feminize and masculinize?   Or is it about a gendering of the very notion of violation and vulnerability?  So are these pundits trying to transfer listener’s beliefs about protecting women and girls to other categories (e.g., the rich and the people of New York)?

Does using it as a metaphor give more power to, or trivialize and make invisible, actual rape?

Is there not some irony in how frequently we use it to describe something horribly violating, given the high rates of rape in the U.S., the frequency of non-reporting, our dismal treatment of victims, and the wildly low incidence of trials and convictions?

See also our post on violent metaphors, including rape.

Lisa Wade is a professor of sociology at Occidental College. You can follow her on Twitter and Facebook.

Beyond Growth: To Help the Majority, We Must Restructure the Economy

Cross-posted at Reports from the Economic Front.

While newspapers give a lot of ink to arguments about whether reducing the budget deficit will boost or reduce growth, they seem to have little interest in the related issue of whether economic growth really benefits the great majority.

David Cay Johnston, the Pulitzer Prize winning financial journalist, recently addressed this issue drawing on the work of economists Emmanuel Saez and Thomas Piketty:

In 2011 entry into the top 10 percent… required an adjusted gross income of at least $110,651. The top 1 percent started at $366,623.

The top 1 percent enjoyed 81 percent of all the increased income since 2009. Just over half of the gains went to the top one-tenth of 1 percent, and 39 percent of the gains went to the top 1 percent of the top 1 percent.

Ponder that last fact for a moment — the top 1 percent of the top 1 percent, those making at least $7.97 million in 2011, enjoyed 39 percent of all the income gains in America.

So, 81 percent of all the new income generated from 2009 to 2011 was captured by the top 1 percent income earners, where income is defined as adjusted gross income, which refers to income minus deductions or taxable income.  In other words, growth, even accelerated growth, is not going to do the majority much good if the economic structure remains the same.

Johnston highlights the problem with our existing economic model with perhaps an even more shocking example.  He compares the average income growth of the bottom 90 percent with the average income growth of the top 10 percent, 1 percent, and top 1 percent of the top 1 percent over the period 1966 to 2011.

It turns out that the average income of the bottom 90 percent rose by a miniscule $59 over the period (as measured in 2011 dollars).  By comparison, the average income of the top 10 percent rose by $116,071, the average income of the top 1 percent rose by $628,817, and the average income of the top 1 percent of the top 1 percent increased by a whopping $18,362,740.  In short, growth alone means little if the great majority of people are structurally excluded from the benefits.

In an effort to highlight this extreme disparity in adjusted income growth rates, Johnston suggests plotting the numbers on a chart, with $59, the amount gained by the bottom 90 percent, represented by a bar one inch high.  As the chart below shows, the bar representing average gains for the top 10 percent would be 163 feet high, that for the top 1 percent would be 884 feet high, and that for the top 1 percent of the top 1 percent would be 4.9 miles high.

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In sum, the real challenge facing the great majority of Americans is not figuring out how to make the economy growth faster.  Rather, it is figuring out how to create space for a real debate about how to transform our economy so that growth will actually satisfy majority needs.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Demographics and the Future of the GOP

Cross-posted at Montclair SocioBlog.

Jeb Bush told CPAC that the Republican party had an image problem.

Way too many people believe that Republicans are anti-immigrant, anti-woman, anti-science, anti-gay, anti-worker.

People have good reason to believe those things.  But the “way too many” suggests that the GOP’s problem is not image or brand, it’s demography.  For five years or longer, the Republican faithful have been complaining that “their” country was being taken away from them, and they were going to take it back (e.g., see my “Repo Men” post).

They were right.  Their country, a country dominated by older white men, is fading in the demographic tide.  The groups whose numbers in the electorate are on the rise don’t look like them.  Andrew Gelman (here) recently published these graphs as an update to his 2009 Red State, Blue State.  They reveal the tendency for different groups to vote more Democratic (blue) and Republican (red):

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(The exit poll the data are based on sampled only in the 30 most competitive state. Texas and Georgia are large, and they have significant non-White populations. But demographic changes there are unlikely to have much effect on which party gets their electoral votes.)

Unfortunately for the GOP, the non-White proportion of the electorate will continue to grow. The female proportion may also increase, especially as education levels of women rise (more educated people are more likely to vote than are the less educated).

The key factor is party loyalty.  And, at least in presidential elections, people do remain loyal. I think I once read, “If you can get them for two consecutive elections, you’ve got them for life.”  Or words to that effect.  If that’s true, the age patterns of the last two elections should be what the Republicans are worrying about.

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Trying to make themselves more attractive to younger people will not be easy.  Oldsmobile tried it not so long ago (a post on that campaign is here).  “This is not your father’s GOP” might have similar lack of success.  But insisting that this is still your father’s GOP (or more accurately, some white dude’s father’s GOP) seems like a formula for failure.

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.

Purity and Danger: Partisan Politics and Persuasion

Cross-posted at Montclair SocioBlog.

You’re not going to persuade a conservative by appealing to liberal moral principles.  Tell a Tea Party type that industrial waste harms the environment and should be regulated, you won’t get very far.  But if you appeal to conservative moral principles, the story goes, you might have more luck.

I’ve been skeptical about Jonathan Haidt’s conservative moral principles — group loyalty, purity, and authority — mostly because they are used to justify practices I find wrong or immoral.  Things like anti-gay legislation, torture, assassination, terrorism, etc.

But a recent experimental study by UC Berkeley’s Robb Willer shows that the right kind of persuasion can make conservatives a bit more leftist on the environment.  In his study, participants read a pro-environmental message that was based either on “Harm/Care” (liberal logic) or on “Purity/Sanctity”(conservative logic) along with photos that matched the appeal.

  • Harm/Care: A destroyed forest of tree stumps, a barren coral reef, and cracked land suffering from drought.
  • Purity/Sanctity: A cloud of pollution looming over a city, a person drinking contaminated water, and a forest covered in garbage.

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There was also a Neutral condition: “an apolitical message on the history of neckties.” (Willer has a fine sense of humor.)

Participants were then asked questions to determine their support for pro-environmental legislation.

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For people who identified themselves as liberal, the type of material they saw — Harm, Purity, or Necktie — made no difference in their environmental position.  Conservatives, as expected, were generally cooler to environmental legislation, but only in the Neutral and Harm conditions.  Once they were shown the Purity materials, conservatives were as pro-environment as the liberals.

Other aspects of the conservative mind-set seem to go along with this emphasis on purity:  simplicity rather than complexity and a lower tolerance of ambiguity.  It’s a view that sees the need for clearly marked and rigidly enforced boundaries — the boundaries of the nation, the boundaries of the individual, the boundaries of cognitive categories.

Ultimately, the findings suggest that common ground between liberals and conservatives may not be as impossible to find as it may seem.

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.

Politics, Discourse, and the Real Tax Rate on the Rich and Poor

The current political discourse is so focused on a single form of government revenue, that the word taxes has become essentially synonymous with just one tax in particular; the federal income tax.  In fact, unless there is a foreign policy crisis, the federal income tax usually dominates most political discussion given how the federal budget (or increasingly the federal debt) relates to almost anything and everything the federal government does (or does not do in more and more instances).

For example, during the closing months of 2012 we watched how a fight over a sunset of the Bush Tax Cuts almost shoved the United States over a fiscal cliff.  Just prior to this near crisis, the most discussed difference between 2012 presidential candidates was their disagreement about a 4 point increase in the highest federal income bracket.  Also, Mitt Romney will likely be remembered mostly for his disparagement and disregard of “The 47% of United States Citizens who pay no federal income tax.”

However, limiting discussion about government funding and spending to just the federal income tax and ignoring the other types of payments we make to the treasury is not without consequence, especially given how the federal income tax is actually a very unique kind of tax.  Unlike excise taxes, payroll deductions, sales taxes and most property taxes that are regressive or require the poor to pay a larger proportion of their resources than the wealthy; the federal income tax is one of the few progressive taxes in the United States because at least on paper (I say that because these marginal rates often do not equate the larger effective rates given that the wealthy are afforded more loopholes, deductions, and lower rates on investment income), the rich pay larger marginal rates than the middle-class and poor.   Thus, with our political discussion largely limited to the federal income tax, it should come as no surprise conservatives are so easily able to frame “The State,” especially the federal government, as a perverse Robin Hood who steals from the rich (the makers as they are being called now) to give to the poor (the takers).

The non-profit, non-partisan Institution on Taxation and Economic Policy recently released its research on the taxes families in the United States paid in 2010.  These findings reveal when the focus is taken off the federal income tax and the entire tax system is examined, cumulative household taxes in nearly every state are regressive because the less money a family makes, the larger proportion they pay to the different levels of government.  As the graph below shows, the cumulative tax system is regressive because sales, excise and property taxes offset progressive income taxes at both the state, and federal levels.

The tax system as a whole is largely regressive because the higher one’s class standing, the lower the proportion of total taxes they pay.  While the report provides great details in the variations across each state, the graph below shows that on average, the lowest 20% of earners pays an overall tax rate that is more than twice of what the top 1% of earners pay.

While many citizens perceive the U.S. tax code as inherently unfair because the wealthy have higher marginal rates on their federal income tax (the only one anyone ever seems to talk about); an examination of the entire system reveals the opposite as cumulatively, the poor pay a larger proportion of their income to local, state, and the federal governments.

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Jason Eastman is an Assistant Professor of Sociology at Coastal Carolina University who researches how culture and identity influence social inequalities.