POLITICS DECEMBER 21, 2009
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Does the Republican Party have any ideas? The query may have a familiar ring. Five years ago, the question of substance was demanded incessantly of the Democrats. Indeed, in one of those intellectual fads that periodically sweep through Washington, the political class became obsessed with the notion that conservatives had unambiguously won what everybody was calling “the war of ideas.”
The notion was everywhere. The right gloated. (“Conservative thought,” boasted right-wing foundation maven James Piereson, “has seized the initiative in the world of ideas.”) Republicans scolded the opposition. (President Bush chastised Democrats in Congress: “[I]f they have no ideas or policies except obstruction, they should step aside and let others lead.”) And Democrats internalized the accusation. (“It makes me realize,” observed labor leader Andrew Stern in 2005, “how vibrant the Republicans are in creating twenty-first-century ideas, and how sad it is that we’re defending sixty-year-old ideas.”)
We don’t need the benefit of hindsight to grasp how silly it was to claim that the Bush-era Republican Party had risen to power on the crest of policy ideas whose time had come, or that the Democratic Party lacked an agenda of its own. The taunts about Democrats’ lacking ideas was less a serious analysis than an attempt to bully the party into cooperating with Bush’s plan to gradually privatize Social Security. (Click here to read about the history of conservatives opposing insane progressive ideas, such as women's suffrage and child labor laws.)
In reality, both parties have plenty of ideas that they would like to implement if given the political power to do so. Republicans’ policy ideas primarily involve cutting marginal tax rates and regulations. The question isn’t whether the Republican Party has any ideas. The question is whether the party has any relevant ideas.
In the days following the 2008 election, some Republicans predicted that the party would retool itself in response to reality--not just political reality but the actuality of policy challenges. “Republicans,” wrote conservative Ramesh Ponnuru in Time, “will have to devise an agenda that speaks to a country where more people feel the bite of payroll taxes than income taxes, where health-care costs eat up raises even in good times, where the length of the daily commute is a bigger irritant than are earmarks.” Nothing like that rethinking has happened or will happen.
Whatever the merits of President Obama’s agenda, it is clearly a response to objectively large problems facing the country. The administration has selected three main issues as the focus of its domestic agenda: the economic crisis, climate change, and health care reform. The issues themselves offer a stark contrast with Bush’s 2005 crusade to reshape Social Security. While sold as a response to the program’s long-term deficit, the privatization campaign was actually motivated by ideological opposition to Social Security’s redistributive role. (Bush refused Democratic offers to negotiate a fix to the program’s solvency without altering its social-insurance character.) By contrast, it is impossible to dismiss the problems Obama has chosen to address. In all three areas, the Republican Party has adopted a stance of total opposition, not merely because it disagrees with aspects of Obama’s solutions, but because it cannot come to grips with the very nature of the problems of modern American politics.
Begin with the economic crisis. The root cause of the collapse, as we all know by now, is that financial firms have grown so large and interconnected that the risks they incur can bring down the rest of the economy, forcing the government to intervene. After some initial support, the Republican response has been to denounce the financial bailout, without making any case that failing to save the financial system would have prevented a far deeper disaster.
To some extent, Republicans are simply exploiting populist anger. But the deeper problem lies in the rigidity of conservative ideology. In the most simple and pure market model, a business must be allowed to fail in order for capitalism to function. Once the government begins propping up failed firms, we have embarked upon the road to serfdom and there is no turning back.
As a general principle, this is eminently sensible. Yet it cannot accommodate the reality of a financial industry that, left to its own devices, can bring the rest of the economy down with it. David Frum, the former Bush speechwriter turned conservative apostate, recently recounted his attempt to persuade a group of young conservatives that they had to bend their principles in the face of economic calamity. As Frum recalls it, one of the conservative interlocutors replied, “Maybe it was a good thing we weren’t in power then--because our principles don’t allow us to respond to a crisis like this.”
To deal with the fallout from the financial collapse, Obama helped shepherd a stimulus package consisting of temporary spending and tax cuts. There is some debate among economists as to the effectiveness of fiscal stimulus, though economic forecasting firms have arrived at a consensus that the stimulus helped cushion the blow of the recession. But the rhetoric within the GOP is utterly disconnected from this academic and professional economic analysis. In the Republican view, the stimulus has either done nothing whatsoever to help the economy, or it has deepened the recession.
House Minority Whip Eric Cantor, appearing at a recent public forum, complained that the media were ignoring his party’s economic ideas. OK, replied a reporter, what are those ideas? Cantor could only pivot to his political calculation. “The big idea is to get, to get, to produce an environment where we can have job creation again,” he replied. “And see, that’s where the Obama administration’s agenda so clearly disadvantages the Democrats in this upcoming election in eleven months and advantages us.” So the “idea” is to exploit public discontent over the economy.
Republicans do have an alternative--albeit one they understandably prefer not to discuss in any detail. Senator Jim DeMint introduced a GOP stimulus plan, authored by the Heritage Foundation, that consists of making the Bush tax cuts permanent and adding onto them a series of permanent tax breaks heavily tilted toward corporations and high-income earners. It would cost more than $3 trillion--more than triple the cost of Obama’s stimulus--over the next decade, after which point its costs would continue to accrue (whereas the stimulus will end after a few years). This is some sort of ideological brain-stem reflex, not the product of any analysis of the state of the U.S. economy.
One observer dismissed DeMint’s plan thusly: “It is not innovative or particularly clever. In fact, it’s only eleven pages.” Oddly enough, this observer was DeMint himself, talking up his proposal in a speech at the Heritage Foundation. On the contemporary right, it is a mark of intellectual integrity that even a massive economic cataclysm would not prompt any revising of one’s economic prescription. And, while DeMint speaks from the fringe of the party, his beliefs are by no means confined to it: 90 percent of the current Senate GOP caucus voted for his plan.
On climate change, the Republican response has been equally instructive. The largest and most strident bloc of Republican opinion remains deeply skeptical of mainstream climate science. (I don’t have the space here to defend the legitimacy of the overwhelming majority opinion among climate scientists. Suffice it to say that if you believe most scientists have fabricated evidence that carbon emissions contribute to rising global temperatures, you won’t find these five paragraphs persuasive.) Those Republican legislators who have supported any action on climate change have rallied around a plan to construct nuclear reactors, which, in addition to costing $600 billion and taking a decade to have any effect, would reduce carbon emissions by a mere 12 percent. The one Republican senator who has urged a comprehensive solution, Lindsey Graham, has found himself under severe attack from home-state Republicans and threatened by a primary challenger.
Granted, some of the GOP’s reticence stems from its alliance with energy interests--a failing that numerous Democrats share. Yet the Republican opposition to limiting carbon-dioxide emissions also closely reflects currents of right-wing thought.
A decade ago, nearly all conservatives rejected the connection between carbon emissions and climate change. Though many still do, a growing minority of right-wingers now accepts the mainstream scientific position. However, rather than proceed from that premise to some program of reduced emissions, they have feverishly devised a series of rationales for unlimited carbon use. Some have embraced fantastical geoengineering schemes--massive machines, for example, that would suck carbon out of the sky--with the rabid certainty of a science-fiction nut. Others insist that limiting U.S. emissions will do nothing to help force developing nations to do the same. Still other conservatives argue that the future world will be richer and thus able to cope with whatever calamities a hotter planet will bring.
The telling thing here is not that these arguments are provably wrong, though they are highly speculative. It’s that those conservatives who have accepted climate-change science immediately jumped to some other reason to oppose government action. These reasons are, in theory, separate logical propositions: The feasibility of creating giant machines to suck carbon out of the sky has nothing to do with the diplomatic question of whether U.S. climate action could influence China to follow suit.
Yet virtually no conservative intellectuals seem to settle, even temporarily, on the view that climate change is real and that government regulation is therefore appropriate. They cling to climate-science skepticism like a life preserver, and then, when they can’t hold on any more, they grasp immediately for a different rationale. If government intervention appears to be the answer, they must change the question.
Finally, there is health care. As on climate change, Republicans long denied that this issue constituted a problem at all. The party line held that the United States has the best health care in the world. (In reality, despite spending vastly more money per person than any other country, the United States ranks highest among 19 advanced countries in deaths by diseases amenable to medical treatment, not to mention the ongoing disaster of the uninsured.) Today, public dissatisfaction with the health care system has forced the GOP to concede, at least rhetorically, that the system is broken. The GOP response? A lot of Republican and conservative reform plans that mostly reflect the right’s embrace of the failed market system that created the health care disaster.
For numerous well-documented reasons, the market for health care does not work like the market for normal goods. The single largest problem is that tens of millions of people need more health care than they can afford, either because they’re too poor, or because they’re unhealthy and require inordinately expensive care, or both. The only way to solve this problem is to somehow make the richer and healthier people help pay for the care of the poorer and sicker.
The simplest, and arguably best, solution would be for the government to assume the role of paying for everybody’s health insurance. Since such a plan couldn’t pass Congress, Democrats have settled on a plan to subsidize health insurance for the poor and sick and to protect them from discrimination in the insurance marketplace. To make sure that the system functions effectively, they would also require everybody to get health insurance; that way, healthy people would pay into the system and subsidize the sick.
The Republican plans reject these approaches. Either they lack meaningful regulations on discriminating against the sick, or they lack a mandate to bring the healthy into the system; and none provides anything like the necessary funds to make their plans work. Far worse, the Republican plans tear away at the protections that do exist for people with high medical costs. Currently, most people get insurance through their jobs, an arrangement that pools high risks with low risks: Your 25-year-old clerk who plays shortstop for the office softball team pays the same premiums as the asthmatic 57-year-old accountant. The GOP plans usually give people individual tax credits that encourage them to drop out of employer health care and buy it on their own. That’s great for the 25-year-old, but the accountant will suddenly be in trouble.
The Republicans’ favorite reform is to let people buy insurance from any state they want. Currently, states require insurance plans to offer certain basic services--psychiatric benefits, maternity care, and so on. That creates another subsidy from the healthy to the sick--healthy people have to buy insurance that pays for all kinds of care they probably won’t need, keeping down the cost for people who do need it. If you let people buy out-of-state insurance, states will lure insurance companies by offering lax requirements, and the healthy will follow. That would allow all the healthy, inexpensive customers to have cheap plans with other inexpensive, healthy people, while sick, expensive customers would get stuck in expensive insurance plans with other sick, expensive customers.
Almost nobody takes these plans seriously as legislative proposals. They are a response to the cross-pressures of the general public’s demand that the party appear to have a positive vision on health care and the base’s demand of fealty to the ideals of the free market. So the House Republican plan would require states to establish plans to cover people with preexisting conditions, but it makes no suggestion for where the funding for such plans would come from. Likewise, the “Health Care Freedom Act,” sponsored by DeMint, is funded by repealing the financial bailout and demanding a prompt repayment. If you’re wondering what the consequences of immediately repealing the bailout might be, or where this plan would find its financing after the bailout funds ran out, you’re missing the point of the exercise. The main role of these plans is to serve as a prop for the disingenuous party talking point that Congress should defeat Obama’s plan and “start over” with “real reform.”
The quintessential moment in the health care debate came when Senator Lamar Alexander objected to Democratic attempts to weed out Medicare waste: “If you’re going to find some savings in waste, fraud, and abuse in Grandma’s Medicare,” he proclaimed, “spend it on Grandma.” Consider this as an ethical proposition: Alexander is saying that every dollar of Medicare is sacrosanct, that even those dollars he concedes provide zero public benefit must stay in the program. We live in a country where the occasional appearance of a roving charitable medical clinic will prompt thousands of desperate people to line up in parking lots for hours on end, to help mitigate their suffering. And yet, Republicans will not countenance the shift of even indisputably wasted resources to help them.
Partisan self-interest--an accurate belief that Obama’s legislative failure offers Republicans the most likely road back to power--surely accounts for some of the party’s obstinacy. But at least as powerful is the deepening hold on the GOP of anti-government ideology.
Several years ago, I wrote in these pages that the fundamental difference between economic conservatism and economic liberalism is that the former is driven by abstract philosophical beliefs in a way that the latter is not. Conservatives believe that small-government policies maximize human welfare. But they also believe that they increase human freedom. Liberals, by contrast, believe in government intervention only to the extent that it increases human welfare.
If liberals could be persuaded that tax cuts would actually increase living standards for all Americans, they would embrace them. (This is why nearly all liberals believe that some level of tax rate, be it 50 or 70 or 90 percent, becomes counterproductive.) If conservatives came to believe that tax cuts failed to increase economic growth, most would still support them anyway, because they enhance freedom. As Milton Friedman once put it, “[E]conomic freedom is an end in itself.”
For this reason, liberals tend to do a better job at devising policies that maximize human welfare. They do not do a perfect job, nor is there always a singular definition of “human welfare”--some of the thorniest dilemmas of public policy involve trade-offs over whose welfare to maximize. Still, you’re going to fare better at maximizing human welfare if that is your sole goal, rather than one of two oft-competing goals.
Conservatism can succeed at maximizing human welfare when faced with government failure or some other circumstance that naturally lends itself to ideologically congenial tools, like inflation in the 1970s. But conservatism is plagued by blindness in the face of even textbook cases of market failure.
In the graphic below, some of The New Republic’s staff have compiled a brief history of conservative opposition to social reform over the last century. It puts on display conservatism’s miserable record of predicting the outcome of various liberal reforms, in the social and political as well as economic spheres.
One of those items is a diatribe against the passage of Medicare delivered by Ronald Reagan in 1961. Earlier this year, National Review Online editor-at-large Jonah Goldberg called Reagan’s address “still fresh today.” This is a strange description for even as committed a right-winger as Goldberg. In his speech, Reagan predicted that Medicare would lead to the government dictating how doctors might practice and where they’d live, and that, if it came into law, “[Y]ou and I are going to spend our sunset years telling our children and our children’s children what it once was like in America when men were free.”
Almost certainly, Goldberg did not mean to praise this as a prescient warning of how Medicare would unfold. The title he chose, “The Gipper on Socialized Medicine,” suggests that he viewed the speech as a prescient warning about the next step in health care reform. But this is how conservatism tends to operate: In the right-wing mind, the world we live in at any given moment can be described as the free market, the American way of life, perhaps not a perfect world but a cherished and fundamentally free one. The next advance of liberalism will always bring socialism, tyranny, a crushing burden on industry, and other horrors. The previous liberal advances that they or their predecessors greeted with such hysteria are eventually incorporated into the landscape of the free American way of life.
Everything that the 1960s right said about Medicare, the contemporary right no longer believes, while fervently believing it will all hold true of health care reform. Similarly, the hysteria of the 1970s right about clean-air regulation no longer plagues the contemporary right, but it grips conservatives when it comes to greenhouse-gas regulation. (Charles Krauthammer: Cap-and-trade “will destroy what’s left of the industrial Midwest.”) And so it goes.
Rush Limbaugh, speaking at this year’s Conservative Political Action Conference, boasted, “Conservatism is what it is and it is forever. It’s not something you can bend and shape and flake and form.” This is true of the general principles, but utterly false of the particulars. The specifics of the reform they oppose have been in constant flux for a century--from child-labor laws to integration to health care reform. The tone of apocalyptic hysteria at the prospect of reform remains constant.
Jonathan Chait is a senior editor of The New Republic.
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26 comments
As nearly as I can tell from my conservative friends, there are three commandments in the conservative creed: 1. Thou shalt not commit government. All government is bad, and deserves to be killed, regardless of whether it accomplishes a goal desired by the electorate, or not. As a corollary, nearly all change to existing government arrangements is bad, since changing them requires one to commit additional government. 2. The market is your God, and you shall put no other value before the market. If that means children starve, God gave us free will precisely so we can follow the market and watch children starve. 3. Get what you want by force, when operating outside the national borders. As a corollary, anything related to spending money on the military, and using force in the name of national interest is an exception to commandments 1 and 2. What is utterly astonishing to me, is that even amongst people whom I know by their work to be thoughtful and capable intellectuals, those who label themselves conservatives hew to these commandments extremely faithfully. The first two in particular, have a death grip on their minds that would make the most reactionary Mullah jealous that he is unable to achieve such orthodoxy.
- sdemuth
December 21, 2009 at 9:41am
The only mistake here is to characterize this as the "rise" of conservative nihilism. The Republicans have been engaged in much the same thing since the end of Reconstruction. Through the Depression and WWII, their principal goals were not to revive the economy and win the war, but to defeat Roosevelt. To that end, they were just as obstructionist then as they are now. Despite their bombastic and self-declared patriotism, these people care nothing for this country or its people. They are singularly devoted to their own greed and to social conformity that prevents the public from understanding their grip on economic and social life. This is not purely incidental or accidental. Conservatism always represents the interests of a wealthy elite. They are, by definition, far too few to constitute a majority in a democracy or some form of government meant to appear to be a democracy. Tto protect their interests, they must therefore gather around them a cadre of brown-shirts, people of moderate means who will, seemingly in derogation of their own interests, align themselves with malefactors of great wealth. To accomplish this political trick, they employ the time-honored tactics of demagoguery, tactics that go back at least to the Roman Republic. A hefty dose of lies is used to smear opponents as morally and religiously impure, threatening the public with similar impurity and the imminent loss of freedom that the public does not truly possess. This is why conservative predictions of doom always come to naught and they manage to accommodate themselves to measures that advance the public welfare once they are enacted and become popular. Their predictions are always wrong because they were nothing but deliberate lies when they were uttered. They accommodate to popular measures because to do otherwise would jeopardize their ability to mobilize brown-shirts. Thus, having fought Medicare, they now claim to be protecting it from health-care reform. A change of heart? No, just the cynicism and nihilism that always lie at the heart of political conservatism. The conservative movement has spent 70 years trying to undo the New Deal and, in many respects, has succeeded. Their greatest fear is another FDR, a popular and populist president who will be able to roll over their opposition. It is particularly to that end that they will continue to do whatever they can to oppose, undermine, and frustrate Obama and his agenda, regardless of the cost to the nation and regardless of the preposterous lies they have to tell to do it, lest he succeed and their game be up for another generation.
- roidubouloi
December 21, 2009 at 10:50am
Thanks sd. I was gonna ask - what ideas? This is the party of the Laughing, er, Laffer Curve. This is the party with the ideology that its greatest practitioner, Greenspan, could only say "oops" about, but once the ideology was demonstrated to be bankrupt beyond a reasonable doubt (the rest of us could have told him so).
- icarusr
December 21, 2009 at 10:52am
Catch a clue liberal parasites:) FACT: the private sector pays for the public sector (ie. the Gov.) The public sector was created to serve the needs of the private sector. You know the whole people thing. Republicans don't hate Gov., they just want the Gov. to provide some value for the taxes and debt payments. Obama (and likely many of the folks here) has never created a single $ of economic value in their life. They are parasites -- feeding off the host of the private sector and helping their parasite friends feed. At some point, the parasites cause great harm to the host. Given that economic value is central to everyone's well-being, and Gov. mostly destroys economic value, how can anyone be in favor of greater economic involvment by Gov.? ...unless you are a parasite
- mr_rationale
December 21, 2009 at 2:12pm
(ir)rational: I'd take a bit of care throwing around the parasite label too dogmatically on this, if I were you. To give but a single example: government pays most of the cost of education in this country. The Federal Government payed for most of my higher education, through forgivable loans and grants, years ago. The payoff to society was to get an educated, productive engineer, rather than an uneducated manual laborer. That Federal "parasitism" has yielded many times in taxes what the investment cost, but still, most of the wealth my engineering has created, has accrued neither to me, or the government, but rather to the corporations for whom I've worked, and thus ultimately, to capital holders. So, in this chain whereby the government pays for my education (giving, not taking), I create value, and most of that value is sucked up by capital owners, who is the parasite? Let's have another example: the government creates and regulates intellectual property rights - and make no mistake, unlike real property rights, these cannot exist without government regulation - thereby giving various individuals and corporate entities monopolies on ideas. Those corporations in turn manipulate those rights to their great advantage. stifling derivative creativity, and prolonging their ability to extract dollars from consumers. Again, the parasite in this scenario is which party? As to: "Republicans don't hate Government, they just want the Government to provide some value for taxes and debt payments:" I beg to differ. Ronald Reagan famously said "Government is the Problem" and Chait's analysis of the long term fallout of that attitude is right on. The people I know who call themselves conservatives, and clearly most of the Republicans in the Senate right now, disdain government without regard to its effectiveness, or the value it renders. They would rather, to give another example, massively subsidize banks for making student loans, rather than use that money to make additional student loans through an efficiently run system. They would rather prop up insurance carriers, than improve the efficiency of our medical delivery and payment systems - and if this last is not true, then show me the evidence that the Republican party has brought a single constructive idea to the health care debate. I'm no socialist, by a long shot, but this crap about government being inherently a parasite, and business being a virtuous creator of value is but a corrupt offspring of the sanctity of the market commandment. Both regulation and opportunity for profit are required for our system to work efficiently, but the conservative movement has demonized one side of the equation and apotheosized the other, until neither of their images are recognizable.
- sdemuth
December 21, 2009 at 4:50pm
sdemuth, what pisses me off about what you wrote is that it isn't even hyperbole anymore, look at the one exceptionally tired response by one said Mr. Rationale, who seems to know nothing about history. He doesn't even seem to understand the meaning of the word Government. He calls it a parasite, but it is the starting point of civilization. The most effective nations had strong, effective central governments. I suppose Mr. Rationale believes that in the absence of Rome some local businessman would have paid for and built the aquaducts and Apian way. Parasites!? Astounding that anyone could believe labelling it as such is rebuttal. OK Mr. Irrational, move to Somalia, they have no government, create your own Capitalist paradise, print your own currency, build your own roads. Conservatives have the bizarre notion that the term We, the people does not refer to people who work in Public service. It is loathsome to refer to ones fellow citizens, who put in an honest day of work for just wages, as parasites, not even human. An honest argument takes for granted the absolute essentiality of government in society, and then, through the consent of its citizenry, determine how much a role it plays. Anything less is just rank idiocy.
- blackton
December 21, 2009 at 5:57pm
Republicans and their "conservative" majority know that they will all be dead or gone by the time any of the real climate disasters kick in, so why should they give a damn? This is the same reason they are against the "public" option in health care - they're not around, so it isn't something they will individually suffer or profit from. To be a Republican means to start from yourself, and develop policy around that core set of needs, values, and leave anything out that you can't see or is beyond your time horizon. Anything with the word "public" in it is anathema to these (mostly) guys, such as public education (See: vouchers). I vote to rename the party to something more fitting to their "me first" knee-jerk politics: Reprivatians. The only reason the Senate doesn't work any more is that there is no centrists. Lindsay Graham (a centrist!??) is vilified for having thought evil thoughts about climate change legislation. So can we say that they are totally irrelevant? If we wait one more generation, on their present path, there will not be even 30 in the Senate.
- peterkussell
December 21, 2009 at 6:14pm
sdemuth -- Just curious: Why aren't you a socialist, "by a long shot." What's wrong with being a socialist? What *is* a socialist? Also, you need government regulation for "real property rights" to exist too! It's called property law. I think this is an important point that human impersonators like mr_rationale miss. Government is everywhere, as surely as law is everywhere. Change the rules a little bit -- say, not permit the formation of limited liability companies -- and we live in a totally different world.
- jhildner1
December 21, 2009 at 6:15pm
jhildner -- My understanding of socialism is that socialists advocate direct public ownership of all or nearly all means of production. That may be a viable way to organize an economy and government, but I am personally inclined to think that (strongly) regulated capitalism probably promotes the common welfare more efficiently. That said, I'd certainly prefer socialist-leaning policies to what we have now, and outright socialism to outright lassaiz fare economics. You're right, of course, about real property rights. What I had in mind was that in an ungoverned society, warlords and their less brethren manage to maintain personal real property.
- sdemuth
December 21, 2009 at 6:47pm
blackton: Unfortunately (as you note) my comments weren't intended as hyperbole. They really do think that way.
- sdemuth
December 21, 2009 at 6:53pm
sdemuth, exactly, twelve years ago I would have rolled my eyes at that, but the Republicans did work with Clinton (when it suited them). Now outside of the military (and even then they tried to filibuster defense) they will simply be the party of no. Where is their respect for the will of the majority, or even of their own minority? As Chait observed they could easily have limited the health care bill to one far closer to their liking and by doing so upheld their duty to govern. From here on out I hope the Democrats get some cahones and block every single piece of pork in every Republican house district, make the Republicans go home to their districts not having been able to stop Obama nor bringing home any value. It will never happen of course, the essential piggishness of all of congress outweighs party loyalty.
- blackton
December 21, 2009 at 10:35pm
I think there are further and deeper reasons that conservatism is continually making wrong predictions; see http://conservativesarealwayswrong.googlepages.com for more on this. Also, while I broadly agree with Jonathan Chait's argument here, I think it risks getting things backwards to see the right as "driven" by free-market ideology. What you actually have are a bunch of interest-group positions and claims for which there isn't any one good label, so rightist ideologues and Republican politicians choose to call them "free-market" because it works as propaganda. Similarly for "federalism" and even "conservatism" itself. When the interest groups in question -- particularly big corporations -- don't benefit from policies accurately described by those terms, they'll demand that the government operate in ways that do benefit them, and will simply stick the labels "free market" and "conservative" on those policies instead. If that wasn't already clear before people came along screaming "Obama's a socialist" and "hands off Medicare!" in the same breath, it certainly should be now.
- Jeff_Smith
December 21, 2009 at 11:11pm
Okay sdemuth, yes, I agree entirely. If socialism means *real* socialism, then it's probably not going to be efficient. But, of course, Obama is not plausibly advocating the general state takeover of capital -- even a tiny bit, relative to private ownership -- so the charge of *real* socialism is as stupid as the Nazism or Communism charge. But, in broad outline, he does fit the social democratic stance in Europe -- selective economic intervention and state ownership for the common good -- though not to the same extent as in Europe, and if socialism includes something like Europe's version or Bernie Sanders's version, count me in.
- jhildner1
December 22, 2009 at 12:16pm
The GOP can no longer be taken seriously. "Budget proposals" with no numbers, denial of climate change, a party of know-nothingness that ridicules excellence and expertise in the public sphere. I loved the phrase "brain-stem reaction" - tax cuts solve all ills. The GOP acts as if the world were created on Jan 20, 2009 - or at least deny the years 2001 - 2009. "Who is this 'George Bush' of whom you speak?" We have just come off an eight year tax cut binge. So where are the benefits, where is the healthy economy, the rapid economic growth, the balanced budgets, that these tax cuts were to make possilbe? Then Mr. Irrational and his anti-government screed. Yes, if government is the parasite, do move to Somalia. Create value??? Who creates more value, The Centers for Disease Control or the Home Shopping Network? Department of Defense or the Mall Cop? Environmental Protection Agency or Tom Delay, who would have accepted the extinction of the bald eagle so he could continue spraying DDT all over Texas? Government, in your view, may be a parasite, but it is the Red States that suckle (can you do that to a parasite?) disproportionately at the teat of Government.
- dubyadoubte
December 22, 2009 at 12:57pm
jhildner: I think we agree almost entirely.
- sdemuth
December 22, 2009 at 1:02pm
sdemuth, blackton, dubyadoubte, roid, et al.... What infuriates me so thoroughly about the so-called conservative free marketeers is their complete denial of reality even in the face of overwhelming, objective evidence to the contrary. We do not have anything even remotely resembling a free market economy nor do we want one based on their definition. What we have is a Political Corporatocracy that has held our economy and the welfare of the average citizen hostage to its avarice and lust for power since St. Ronnie RayGun first started spreading his religio/political propaganda. I would add one other point to sdemuth's list. Actually, it's more of a corollary to the urban myths of #1 and 2......."Any and all taxes are theft" from the righteous and, therefore an illegitimate confiscation. This Canon of Blind Faith can also be stated in reverse as "Tax cuts are the Holy Grail". It is perhaps this Canon of Blind Faith to the tax cut that has such an addictive power over the working class. Deep down inside they know the addiction is bad for them but the allure is just too strong. They can't think down the road a few miles to the inevitable. A buck in my pocket today trumps all other considerations for the future like education, quality infrastructure, not having to worry about bankruptcy due to medical bills or being ripped off by the local bank or land developer.
- desertdog
December 22, 2009 at 1:46pm
sdemoth: your examples prove my point. 1. If Gov pays for education, then who pays for Gov? PRIVATE SECTOR. 2. Another myth -- government creates and regulates intellectual property rights - and make no mistake, unlike real property rights, these cannot exist without government regulation. This is wrong on two levels: a) you don't need gov to create and regulate -- merely a trusted third party that has ability to enforce. An IP eBay with a few tweaks for licensing would do nicely. b) Private sector pays the Gov. to act as the third party, and as a result our patent process is an abomination. Again the Private Sector pays for all of this. If Gov. actually created economic value then they wouldn't need private sector for funding... right. I wish that were so. Republicans happy to pay for the part of the Gov. that helps facilitate creation of economic value by private sector, e.g., property rights, contracts. And the part of Gov that protects,defends. But not the other 80% inhabited by parasites. Given that Gov. is paid for by Private Sector to provide services, ridiculous to argue that the provision of those 'paid for services' elevates value of Gov. beyond below-average service provider.
- mr_rationale
December 22, 2009 at 6:06pm
desertdog: Free markets are an ideal. Not sure why that would be objectionable, unless you are a public sector parasite (PSP) And only a PSP would believe that tax cuts are bad. The reason that working class like them is simple, they are part of the private sector that actually has to create value to survive.
- mr_rationale
December 22, 2009 at 6:14pm
To all: Parasite merely captures the economic relationship between public sector and private sector. Nothing more. ideally a symbiote would capture the relationship better, but alas it does not
- mr_rationale
December 22, 2009 at 6:20pm
rationale: I'd like to thank you for coming back to illustrate Chait's, and the other writer's analysis so well. You're a poster child for the clueless right, and I do appreciate your willingness to serve. I'll limit my response to two points: First, saying the private sector pays [for everything] is beside the point. The movement of money per se is the wrong issue: the question is where value is created. My example of education was merely to point out that government policies can create value, albeit generally in different ways than private enterprise. If you wish to argue this is not the case, fine, but you need more than a trite "private sector always pays" to have an argument. Meanwhile, I'll point to the recent financialization of the US economy - in response to less regulation, and more government deference to the market - leading to the current woes of working citizens as but a single example of how private sector can move tons of money around, and create not just zero, but demonstrably negative, value. Second, yes, the notion of "free market" being auto-correcting and working for the common good is an ideal. So is the notion that humans are inherently peace-loving, rule-respecting creatures. Both assert without proof that something simple and profound is true (which makes them ideals); both are, however, demonstrably false. Again, if you think otherwise with respect to the free market, feel free to produce the analysis that show that it inherently works - but calling something an ideal, and those who question it parasites, isn't any argument. It's another trite sound bite devoid of content. But first I suggest a short dip into the history of free-market societies to provide a long list indeed of of panics, depressions, bubbles, busts and other economic catastrophes, along with a veritable rogue's gallery of charlatans who have parasitized unregulated markets, and thugs who have used their unregulated economic power to impoverish, exploit, and from time to time outright murder, workers, farmers, and small business owners.
- sdemuth
December 22, 2009 at 7:13pm
The distinction made by Mr Rationale between the public and private sectors is both a fiction and inane. First, it assumes that, absent government, the distribution of income would resemble what might loosely be called present gross personal income -- the starting place for computation of your income taxes. That is not even remotely the case. As sdemuth points out in but one example, the income stream garnered by intellectual property rights would fall to zero absent government, and a great deal of the income stream in a modern economy consists of rents to intellectual property in one form or another. Second, as pointed out by Adam Smith, erroneously thought to be the godfather of the "pure" free market, the rules of the market are constantly being manipulated by the owners of capital in their own favor. Taxes are a response to several problems: First, mitigating a distribution of wealth that, at one extreme, leads to insurrection. Second, a moderating impact (at least pre-Reagan) on the market power of capital. Third, the externality problem: there are many "public goods," such as public education, that undeniably create value but do so without regard to the ability of the recipient to pay, which is the sine qua non of market exchange. Finally, there is the free-rider problem: certain public goods are enjoyed by everyone and cannot be practicably limited to those who can pay -- such as national security, the road system, public sanitation. In all of these cases, there is no practicable and efficient means of achieving the desired outcome via the market. Hence, we rely on government. In each and every case, invocation of the free market as if it necessarily produced the best outcome is feckless. Sometimes it does; sometimes it doesn't. As a society, we need constantly to be looking at the question of which tasks should be left to the market and which to the government. The refusal to look at outcomes and the fantasy that those outcomes achieved by the market are necessarily the best available are what render inane Mr. Rationale's and the right-wing's uncritical acceptance for the pseudo-free-market. Indeed, the hypocrisy or the right is apparent that no one can imagine that it really wants a true free market -- the right-wing intervenes in the market relentlessly for the preferment of the interests of capital. Its "principles" are always for sale. Contra Mr. Rationale, the "private sector" pays for nothing. People working pays for everything, whether the expenditure is made by individuals or collectively. The government does not "take" from private production; the government produces goods and services no less than does the private sector, sometimes more efficiently, sometimes less efficiently. The purchasing power surrendered by individuals to the government in the form of taxes reduces private expenditure and therefore reduces the size of private production, substituting public production. It does not "take" or consume any output from the private sector. This is a complete misunderstanding of the macro-economy. Typical right-wing self-imposed ignorance. They are flat-earthers, one and all.
- roidubouloi
December 22, 2009 at 11:34pm
roi: nicely said.
- sdemuth
December 23, 2009 at 10:31am
Thanks.
- roidubouloi
December 23, 2009 at 11:41am
At this point I recall the stirring words of our founding fathers in the Declaration of Independence: "That to secure these rights, for-profit business enterprises are instituted among Men, deriving their just powers from the consent of the owner or shareholder . . ."
- ironyroad
December 25, 2009 at 2:41pm
Irony: best joke of the year. And Roi, excellent post as always. Glad to see you around.
- luispc
December 26, 2009 at 3:24am
luis -- thanks
- ironyroad
December 26, 2009 at 10:31am