#^d 2015-11-15 #^h Weekend Roundup

It's been a good week for warmongering anti-Islamist bigots, what with the Kurdish "liberation" of ISIS-held Sinjar, the ISIS-blamed bombing of a Russian airliner, the drone-murder of reality TV star "Jihadi John," and ISIS-linked murderous assault in Paris on the innocent fans of a band called Eagles of Death Metal. Ann Coulter was so thrilled she tweeted that America just elected Donald Trump as its next president. Shell-shocked post-Benghazi! Democrats were quick to denounce it all as terrorism, using the precise words of the Republican thought police. Someone even proposed changing the Freedom Fries to "French Fries" in solidarity. French president François Hollande declared that the Paris attacks meant war, momentarily forgetting that he had already started the same war when France joined the anti-ISIS bombing party in Syria. He and other decried this "attack on western civilization." Gandhi could not be reached, but he's probably sticking to his line that western civilization would be a good idea.

I'll return to this subject below, but the main point to make up here is that this is above all a time to keep your cool. In fact, take a couple steps back and try to recover some of the cool we've lost ever since demonizing ISIS became so ubiquitous nobody gives it a second thought. I have no wish to defend them, but I will point out that what they're accused of is stuff that virtually all armies have done throughout history. Also that they exist because governments in Damascus and Baghdad became so violently oppressive that millions of people (who in normal times want peace and prosperity as much as everyone else does) became so desperate as to see them as the lesser evil. No doubt ISIS can be brutal to those under their thumb, but ISIS could not exist without some substantial measure of public support, and that means two things: one is that to kill off ISIS you'd have to kill an awful lot of people, revealing yourself to be an even more brutal monster; the other is that you can't end this by simply restoring the old Damascus and Baghdad powers, because they will inevitably revert to type. Yet who on the US political spectrum has a plan to do anything different?


Before this flare up I had something more important I wanted to write about: inequality. Admittedly, war is more urgent: it has a way of immediately crowding out all other problems. But the solution is also much simpler: just don't do it. All you need to know about war has been said many times, notably by people like A.J. Muste and David Dellinger. It might be argued that inequality is the root of war, or conversely that equitable societies would never have any reason to wage war. The ancient justification for war was always loot. And while we've managed to think of higher, more abstract and idealized concepts for justifying war, there's still an awful lot of looting going on. In America, we call that business.

The piece I've been thinking about is a Bloomberg editorial that appeared in the Wichita Eagle: Ramesh Ponnuru: Is income inequality a big deal? He starts:

We conservatives tend to get less worked up about economic inequality than liberals do, and I think we're right about that.

We should want most people, and especially poor people, to be able to get ahead in absolute terms. We should want to live in a society with a reasonable degree of mobility rather than one where people are born into relative economic positions they can never leave.

But so long as those conditions are met, the ratio of the incomes of the top 1 percent to the median worker should be fairly low on our list of concerns; and if those conditions aren't met, we should worry about our failure to meet them rather than their effects on inequality.

If you take "worked up" in the sense of bothered, sure, but if you mean concerned, his disclaimer is less true. The bare fact is that virtually every principle and proposal conservatives hold dear is designed to increase inequality. Cutting taxes allows the rich to keep more income and concentrate wealth, lifting them up further. Cutting food stamps and other "entitlements" pushes the poor down, also increasing inequality. Maybe desperation will nudge some people off welfare into low wage jobs, further depressing the labor market and allowing savvy businessmen to reap more profits. Of course, making it harder for workers to join unions works both ways -- lower wages, higher profits -- and conservatives are in the forefront there. They're also in favor of deregulating business -- never deny the private sector an opportunity to reap greater profits from little things like pollution or fraud. They back "free trade" agreements, designed mostly to protect patent (property) owners and let businesses expand into more profitable markets overseas, at the minor cost of outsourcing American jobs -- actually a double plus as that outsourcing depresses the labor market, meaning lower wages and higher profits. Sandbagging public education advantages those who can afford private schools. Saddling working class upstarts with college debt helps keep the children of the rich ahead. And the list goes on and on. Maybe you can come up with some conservative hot list items that don't drop straight to the bottom line (abortion? guns? drug prohibition? gambling? war? -- one could argue that all of those hurt the working class more than the rich, but I doubt that's really the point). Still, you won't find any conservative proposals to counter inequality.

From time immemorial the very purpose of conservatism has been to defend the rulers against the masses. From time to time that's required some adjustments to conservative thinking: in America at least, cons no longer defend the prerogatives of kings and titled aristocracy (not that they have any problems with the Saudis or Hashemites, or nearly any tin-pot dictator who lets their companies profit); and they've given up on slavery (and the most overt expressions of racism), but still can't stand the idea of unions, and they never have trusted democracy. For a while they liked the idea that America offered a chance for equal opportunity (without guaranteeing equal results), an idea Ponnuru is still fond of, not that he'd actually cross any of his betters by suggesting we do something about it. For one thing they'd probably point out that equal opportunity is how we wound up with Bill Clinton and Barack Obama, whereas the worst you'd have to put up with in a closed oligarchy is someone like Jeb Bush (or, pick your poison, Donald Trump).

Ponnuru refers to an article by George Packer: The Republican Class War, probably because the article starts off a "reformocon" conference organized by Ponnuru's wife April (high among the Republican Party's "family values" is nepotism). The reformocons have a book full of policy proposals that allegedly help the middle if not the lower class, but none of the things Packer mentions looks promising. Ponnuru cites a study on opportunity mentioned by Packer then dismisses it with another study on something else. He continues:

When he moved to macroeconomics, Packer was on even shakier ground: "Inequality saps the economy by draining the buying power of Americans whose incomes have stagnated, forcing them to rely on debt to fund education, housing, and health care. At the top, it creates deep pools of wealth that have nowhere productive to go, leading to asset bubbles in capital markets bearing little or no relation to the health of the overall economy. (Critics call this the "financialization" of the economy.) These fallouts from inequality were among the causes of the Great Recession."

Saying that "inequality" has caused income stagnation is question-begging. If most Americans are experiencing stagnant incomes, that would cause difficulties regardless of how the top 1 percent is doing. In the 1980s and 1990s, though, income growth for most people coincided with rising inequality. And the theory that inequality leads to financial crises has a weak evidentiary basis.

Uh, 1907? 1929? 2008? That's a pretty strong series. Maybe some lesser recessions don't correlate so well: 1979-81 was induced by the Fed's anti-inflation hysteria, so the recovery was unusual as well. Income stagnation also started with the early 1980s recession, as did the first major tax cuts for the rich, although even larger sources of inequality that decade were trade deficits (resulting in a major sell-off of assets to foreign investors) and real estate fraud (bankrupting the S&L industry, resulting in a recession). In the 1990s the main sources of inequality were the massive bid-up of the stock market and a loosening of bank regulations, and they too led to a recession in 2001. The labor market did tigheten up enough in the late 1990s for real wages to rise a bit, but that was wiped out in the following recession, and the "Bush recovery" was the worst to date at generating new jobs, as it was fueled almost exclusively by debt and fraud.

Packer finally splits from the reformocons, and Ponnuru's reaction is basically a hand wave.

"The reformocons, for all their creativity and eloquence, don't grasp the nature of the world in which their cherished middle-class Americans actually live," Packer said. "They can't face its heartlessness."

I don't mean to sound heartless myself when I say that no sensible policy agenda is going to protect all towns and industries from the effects of global competition and technological change. But most members of the vast American middle class aren't looking for work in the steel mills or wishing they could be.

Ponnuru may not relish it, but being heartless is part of what it takes to be a conservative these days. So is being a devious little prevaricator. Let me close this section with a couple paragraphs from Packer (starting with the one on macro that Ponnuru thinks he disproved, because it's so very succinctly stated):

Inequality saps the economy by draining the buying power of Americans whose incomes have stagnated, forcing them to rely on debt to fund education, housing, and health care. At the top, it creates deep pools of wealth that have nowhere productive to go, leading to asset bubbles in capital markets bearing little or no relation to the health of the over-all economy. (Critics call this the "financialization" of the economy.) These fallouts from inequality were among the causes of the Great Recession.Inequality is also warping America's political system. Greatly concentrated wealth leads to outsized political power in the hands of the few -- even in a democracy with free and fair elections -- which pushes government to create rules that favor the rich. It's no accident that we're in the era of Citizens United. Such rulings give ordinary Americans the strong suspicion that the game is rigged. Democratic institutions no longer feel legitimate when they continue to produce blatantly unfair outcomes; it's one of those insights that only an élite could miss. And it's backed up by evidence as well as by common sense. Last year, two political scientists found that, in recent times, policy ideas have rarely been adopted by the U.S. government unless they're favored by corporations and the wealthy -- even when those ideas are supported by most Americans. The persistence of the highly unpopular carried-interest loophole for hedge-fund managers is simply the most unseemly example.


Some scattered links this week:


If I stayed up a few more hours I could collect many more ISIS links, but this will have to be enough for now. I doubt that my main points will change any. And I don't mind the occasional pieces that show you how maniacal ISIS can be. None prove that the US military is the answer.