New York Times - Bob Herbert - "Losing Our Way"

Friends,

This gets at the heart of a conversation I had yesterday with a good friend and in response to an article I saw posted by my friend Joe, from Holy Cross.  

ARTICLE

http://www.nytimes.com/2011/03/26/opinion/26herbert.html?_r=2&src=ISMR_HP_LI_LST_FB 

As Bob Hebert, New York Times Op-ed columnist points out, things don't look very good at the rate we're going.  Where will we be in 20-30 years.  I think my friend was right in saying that a lot of people aren't tuned into the magnitude of where we find ourselves currently.  Just as we have unemployment as a lagging economic indicator, people's attention and understanding of the crucial issues of our time, on the table, that each and every one of us face everyday, is also lagging.  This will become a problem unless we can tip the scale.  The broader question is how do you do this, how do people mobilize themselves in a more constructive and educated manner than the tea party did.  The destructive decision making going on in our country is crucially evident and the political money machine that works to keep us in deadlock with the polarization and inefficiency we find throughout state governments today and in the hallowed halls of the US Congress is apparent more than ever before.  As access to information has grown exponentially so has the truth that uncovers both the inequalities that exist within our system - when the largest financial institutions that dragged us into the financial crisis have yet to be effectively brought to justice - while at the same time revealing what our dream of a truer democracy looks like when we join our voices together and come together for common purposes.  In troubled times, we are faced with a bevy of choices, and every choice we weights heavily. 

Too Comfortable
Today, the economic disparities which have developed since Bill Clinton left office loom larger than ever, we are funding multiple wars and we have supreme court decisions placing corporations as equal entities to individuals when it comes to channeling their support to political campaigns.  We have states ending collective bargaining rights.  In our great country, power and influence have always remained in the hands of a few but the signs seem to be getting worse, and disparities larger than ever.  Is it because we have become deaf as a society, as my friend Peter from Sudan taught me in Arizona in 2003, that we have trended toward tuning into our own lives, versus directing concern and attentiveness to the greater world?    Isn't it time we admit that our lives are not our own when people are working harder than ever to make a living, with an average of 2 jobs per person to maintain a middle class semi comfortable lifestyle?  I think there's a little bit of freedom in admitting that, in the midst of malaise, modern day cynicism, and jadedness that we face and that we fall victim to, that simply ends up doing us a disservice in the end and doesn't solve anything.  People seem tired of what they see going on around them, in both private and public spheres.  We always have the choice to be an observer, or a contributor, a bystander or a participant in our democracy.

Big Fiscal Problems 

Politics.  "Politics as usual" needs to end as Andrew Cuomo, our New York State Governor has indeed said many times over and as Governor Patterson echoed on his way out in 2010.  "Away with the special interests."   Andrew Cuomo has vowed to change State government and he's doing it.  He is really setting the stage for how other states rethink the way they do business and budget their wallets.  It would be nice ideally just to return to "pay as you go" for a brief while.  That is the way things ran back in the 1920s and early 30s until we turned to public benefit corporations and authorities.   I would enjoy returning to the "good old days" as my grandfather, a WWII veteran always described them, when people seemed to appreciate each other a little bit more, when we seemed more united and less distracted, when the average family could have one person working, and one person staying at home with the kids.   How we've gotten to where we are is due to a simple methodology of spend more than you make.  No individual in their right mind can govern themselves with such attitudes, so it was foolish to think we could.  Will government truly change it's tune.  Will Andrew Cuomo sing us a new song, but more importantly, will we sing a new song?  Will we really change business as usual?  As Thomas Jefferson pointed out in his Inaugural Address on March 4, 1801 "If we are demanding of those who govern us, should we not be at least equally demanding of ourselves for the conduct of our self -government?" (Our Sacred Honor, p.347, William J. Bennett).  Add: I'm personally not a huge fan of William Bennet, but "Our Sacred Honor" is worth picking up. 

The rich vs. poor dialogue that Bob Herbert alludes to in his Op-ed is true, but I think it's important that we don’t see this as simply a redistribution of wealth, an example of robin hood economics, of "taking from the rich and giving to the poor."  The problem is more complicated.   The mouths of wealthy and intelligent individuals have agreed that they don't pay enough tax based on their income.   Post passage of federal tax legislation for those making 200k or higher via the Obama McConnell deal, Andrew Cuomo chose not to renew the surcharge on people making more than 200k this year in New York State.  Education groups staunchly oppose this because the sector got a huge hit at the same time and education has taken a back seat to other forces that seem to be driving our ship.  Cuts to school aid this year will impact poorer districts vastly more than richer ones.  See here for absurdity: http://www.nytimes.com/2011/03/27/opinion/27sun1.html?scp=1&sq=Rich%20Poor&st=cse


More evidence that we are not bridging the gap and learning from history that we all succeed when the tide lifts all boats versus the tide lifting only the larger ones.  Andrew's father, Mario had a great understanding of this disparity:  


Mario Cuomo, 1984 Democratic Convention Keynote Speaker, San Francisco, CA  
http://www.youtube.com/watch?v=kOdIqKsv624


The rich vs poor gap is not only a result of people choosing to pick themselves up by their boot straps, it's not only due to hard work, or good fortune.  Sometimes these boot straps mysteriously don't exist without proper the proper education.  The rant from the right grows old and I've grown very tired of hearing it.  Gene Sperling, Obama’s now chief economic advisor wrote about that premise in a paper title “Rising Tide Economics” in 2007.   There are many wealthy Americans out there whom I've spoken to, some of them, millionaires, who have houses in Paris and LA and New York, that say they can afford to pay a higher percentage tax than they do now, and say that they would be willing to, due to their ability to write off large chunks of their income.

Lesson #1

Don't drink the kool-aid.

What is echoed by some to be a call for redistributing wealth from the onset, seems to make sense.  But it doesn't ultimately solve anything in the end.  When will we get serious about tax politcy.  If we were to keep the taxes on the rich higher in New York or on the Federal level, it would help win support among some voters and even change the course of election cycles, but after thinking it through it’s not lasting change.  What can we do to bring lasting change to the table.  How can we do a better job to encourage giving and philanthropy by some of our wealthier brethren to contribute, and to give back to get at the root of our nations' problems. 

Warren Buffet one of the world's wealthiest and most successful seems to get what is going on, and has been talking about it for years, about the faultiness of our tax code, but even he and the Bill Gates foundation don't get at the root of the problem.  Their wealth goes to heal a broken world, from AIDS giving to trying to fix the mass starvation and hunger problems the world wrestles with in distant corners of our globe, far away from our fat and happy nation. I don't disagree with their efforts, and they are doing enormous good by trying to improve the quality of life for vast populations of human beings, who have only known suffering in their lifetime and would never understand the concept of “getting ahead.”   The question is, are we also working to change the same system that got us there in the first place?  Are they gathering their billionaire friends to go lobby together to re-write the tax code?   The evidence is overwhelming that most people never vote against their self interest.  Although my dad has taught history and sociology all his life and has never formed a company of his own and been what you’d call an entrepreneur, he’s quietly and consistently voted against that which would put more money in his pocket.  He’s always been in love with our country, with the history that’s shaped America, and has taught me the importance of hard work, to take nothing for granted, and to be compassionate for those that have not been privy to what I’d consider to be the intellectual or material fortunes that I have had access to.  There's something very valuable to gain from being selfless.

Excerpt from Bob Herbert’s “Losing Our Way”:

"Nearly 14 million Americans are jobless and the outlook for many of them is grim. Since there is just one job available for every five individuals looking for work, four of the five are out of luck. Instead of a land of opportunity, the U.S. is increasingly becoming a place of limited expectations. A college professor in Washington told me this week that graduates from his program were finding jobs, but they were not making very much money, certainly not enough to think about raising a family.

There is plenty of economic activity in the U.S., and plenty of wealth. But like greedy children, the folks at the top are seizing virtually all the marbles. Income and wealth inequality in the U.S. have reached stages that would make the third world blush. As the Economic Policy Institute has reported, the richest 10 percent of Americans received an unconscionable 100 percent of the average income growth in the years 2000 to 2007, the most recent extended period of economic expansion."

Jobs

What does this ultimately mean for us?  For America?   It's hard to find a good job right now in America.  My good friend's fiancée found this to be the case even with an advanced degree she had and couldn't find a job for over a year.  I found this to be the case when I returned home in 2009 after perhaps 9 months of searching for a job with the Federal government.  Many people have searched for years for a job, but end up settling for a job not commensurate with their abilities or experience, making 25% less or more than they are worth.  Regardless we do face the times when we need to bare down and bare the storm front coming in.  Nothing in life is smooth sailing.  Each of us is called to earn our keep.  We must find our voice, now or never.

If Americans who possess the ability to speak up collectively and in an organized and educated fashion, don't, now, in a way that brings greater light to these problems, then a truer democracy will not be realized.  We have the means to do so, we have the voices.  Our problems will undoubtedly become too large to tackle in the years to come.

What vision do you have for America om 20-30 years?  How many people out there actually think about that when they are trapped in their daily routines.  I think the general premise here is to realize that 90% of our country doesn't think about these factors.  But if those that were paying attention, some of the few, some odd 30 million strong, choose to take up arms, in the peaceful respect as Gandhi and other transformational figures have called us to do throughout the ages, we have to be willing to believe that we would gain something enormous out of that, and we would.  The banks are here to serve us, the defense contractors too although I ideally imagine a more peaceful world, and so it is the duty of our insurance companies.  Let us look upon those entities that we've come to despise most, and let's make them serve us the way they should be serving us.  Our government and society very much needs good people to come to the table, we need new term limits for our legislators, public financing of elections, companies with fresh ideas that understand the growing inequalities and desire to promote a fairer wage that puts the people that make and shape these organizations, over the bottom line.  We need people who want to invest in America, renewed focus and commitment on what it means to be a public servant and more performance requirements and rewards for private sector ingenuity that promotes a new way of doing business.  Our country has a rich history of giving to the world, but it's time, it's time to turn that light in on ourselves and work to heal America and ourselves in that process.

"The Pen is mightier than the sword"--  Edward Bulwer Lytton 

Main Street America - A Move Closer to Egalitarianism

Every time a society faces crisis management, it is always a convenient time to talk about what's working in society and what's not working, to talk about what's fair, in light of inequities.  In a country where the economic model is not principally based on fairness, but on the principal that rewards come to those that work the hardest and smartest, to obtain the life for themselves, that they desire, the debate over hard work vs. circumstance arises.  It is our privilege, and inalienable right in America to be able to discuss these things freely and openly, and to work towards a truer democracy.

http://www.nytimes.com/interactive/2011/03/06/us/public-private-employees.html?ref=us

The above article gives some good analysis of the private vs. public sector debate that's very hot right now in the media.  Currently this debate has grown dramatically due to the burdens we all collectively share as a society and as state budget offices and politicians come closer to decision making time on what cuts need to be made.  At least most of society is still feeling the crunch, enduring remnants of the 2008 financial meltdown and depressed 401k's, and we may be feeling the effects of other economic, and fiscal woes relating to how good or not so good a job government has done with managing state funds and dealing with addressing it's inefficiencies.  We also face increases and disparities in health care with costs skyrocketing past the growth of real wages, and the same goes for property taxes.  These are really big problems with many answers on the table as to how to tackle them.  But we are addressing them.  People still do want their kids to have a better life than they lead, although the trend points towards pessimism at this very moment.  There are signs out there that people aren't as hopeful about a better tomorrow as they used to be.  We are living in some of the starkest financial times we've faced in our nation's history, and while trends seem to point to our unraveling, and points to many reasons to see the glass as half empty, it always comes down to a choice that we make.

Despite the seemingly overwhelming evidence that society is on the brink, with a middle class that seems to be deteriorating, with those who are at or close to the bottom, sinking to all time lows...all of this occurring as the top 1% in this country seem to be moving up to a 3rd east side (Jefferson's reference).  As Americans, most of us work very hard in life to reach our goals but sometimes a lack the imagination and ingenuity to strike while the iron is hot.  We let things get cold, and then need to start a fire again.  I think it is at monumental times where in the face of very challenging situations where we ask the questions:  What do I value?  What is important to me?  How do we move on or move forward?  Am I on the right path?  Am I doing all I can to support my family?  Am I doing enough to help my community?  I think for many, it is in the darker times in our history where we get closer to our true essence as Americans. It's time for a check up and re-evaluation.

In Defense of the Public Sector

In response to what is going on in Wisconsin, I stand in defense of public sector workers.  To me and in my humble opinion, I feel strongly that teachers with respect to the institution of Education, Doctors with respect to their livelihoods and their mission to save lives, and various occupations within the public sector that work to uphold justice, attempt to wrestle with the questions over what is fair and equitable in society, that take into consideration the importance of compassion and self sufficiency models to heal broken communities, and those that are continuously weighing information to determine economic efficiency, represent some of the most important and magnanimous contributions made to society.  These professional positions are traditionally your public sector jobs and they are traditionally long term commitments, many times becoming part of one's lifestyle.  What is somewhat bothersome, is that I've begun to sense a growing disconnect in popular opinion regarding some these very valued jobs in our society today and public sector workers currently being scapegoated for the current budget crisis. 

My main impetus for writing is in response to the actions being taken by the State government in Wisconsin and my thought process regarding not only the problem over banning collective bargaining rights for unions, but also over societal discrepancies in competitive pay for employees when you look at the major trends including the widening gap between rich and poor, health care costs increasing at several times the rate of real wages, and the fact that average middle income has gone down in the past 10 years, but top earners average pay has gone up.  The intent is not to attack the wealthy, but is to show the societal shift in priorities that's happening around us. 

http://www.guardian.co.uk/commentisfree/cifamerica/2010/aug/05/philanthropy-does-not-pay-taxes 

Moving forward, I think two things need to happen to achieve a more equitable playing field in the job market throughout the country, the main focus for change being on the private sector, where the majority of citizens are employed.  I'm hoping that we not only see an increase in jobs and that the government assist in this effort to strengthen private sector growth, but that the private sector growth indicate and result in an increase in a more fair wage, an increase in wages for all, rather than the game being so fixed.  Too much of the profits trend towards the top 1%-10% of wage earners.  No one seems to want to slice it a little more evenly.  We've seen this trend to be increasingly evident since the bank bailouts, with large insurance, oil, and banks scoring record profits.  At the end of the day, capitalism, which considers an economic system where the means of production are privately owned and operated for profit, does not take into account fairness, decency or egalitarianism per se.  As a result,  you often have government "meddling" in the affairs of business, regulating and making more laws to protect consumers.  Businesses don't seem to want to get their act together on their own accord. 


Even before the wheels of capitalism really started churning in this country, as far back as the late 1700's the Federalist papers, written by John Jay, Alexander Hamilton and James Madison stated (cite Fed Paper 51), that "if all men were created angels, there would be no need for government."  Government, even when it gets too fat, is the foremost, primary and cohesive element in society that upholds justice, freedom, consists of a system of checks and balances, and maintains order.  My intent is not to promote wealth redistribution but to first consider the spirit of what we are, as American citizens, and what we could be, and more importantly, why that matters.  (http://plato.stanford.edu/entries/egalitarianism/)

WISCONSIN

Currently, the public sector has been taking a lot of heat, especially during the past 2 years as states have faced mounting deficits.  I believe two things will arise from this: 

1) Whereas the private sector used to have a higher prevalence of unions, that has not been the trend in recent years.  I have not only thought about the implications of no bargaining rights for unions in Wisconsin and the effects of such legislation, but I believe this will spurn a national debate, perhaps the return of private sector unions, and I believe closer attention will be paid to the private sector.  Most of the jobs in this country are produced there, and I believe that most of our inequity comes from vast fortune 500 companies who would benefit if they reconsidered their pay structures.   

  

2) Existing public sector unions across the country need to be willing to compromise with states and governments and agree on what is fiscally sustainable for society.  

Unions do need to take consideration of our fiscal situation, because every citizen essentially pays for public workers.  Unions will make compromises if they are smart and want to have a lasting impact on the well being of each worker.  It's true that many of our current benefit structures are unsustainable.   


Although what is going on in Wisconsin is spreading a whole different tune.  The Governor has made them the particular focus in the budget battle.  Are the existence of unions the reason why the fiscal crisis happened?  I think we all know the answer is no to that.  Some politicians out there, like Governor Scott Walker are orchestrating conservative power plays to make unions the scapegoats for the existing budget crisis' that states around the country are facing.  There's just more to the puzzle than Scott Walker would like you to believe and he somehow things America is stupid enough to believe him.  There are two articles I liked in the NYT regarding what's going on in Wisconsin in the last 2 weeks.  One is by Op-ed columnist Paul Krugman: http://www.nytimes.com/2011/02/21/opinion/21krugman.html?ref=paulkrugman   

The other important article is about the Koch Brothers and the minds behind Governor Scott Walker and taking away collective bargaining rights. If you don't know much about the battle in Wisconsin, this may help you make more sense of things.  It's not just about unions although Governor Walker has done a good job at making them the focal piece of his arguments: http://www.nytimes.com/2011/02/22/us/22koch.html      

More Fairness in Dividing the Economic Pie and Entitlements?  Wait, Hold the Phone On My Share!

A successful and long lasting model should drive innovation and competition similarly to the way we do and should at least place good value in those keys to success, but I'd be an advocate for one in which there is more equality, in which a greater percentage of people have more access to the economic pie.  And no I'm not talking about the widely perceived "free handouts," increasing government subsidies, welfare checks or unsustainable entitlement programs on current projections.  Let be me clear that I'm not putting negative connotations on these programs either.  There are a myriad of misconceptions in existence for those aforementioned "entitlement programs" I named above and certainly trimming the fat is going on all over our state and our nation.  Service programs are being cut left and right and have been for the past two years.

Most conservatives will spin these programs negatively if you let them and most of the time it is due to either their costs or the fact that they are inherently unnecessary.  But if you consider what is at the heart of these programs you might think differently.  If you were to look at New York's welfare system or if you take a good look at welfare programs that exist here in New York, let alone the new programs proposed in our state's budget this year, many are built on self-sufficiency models.  You've probably even heard the name "Welfare to Work."  The state and our nation continue to work hard to stop and prevent waste.  Remember that you're only going to hear negative stories coming from the media.  Most people, I believe really only understand about 1/3 of the role of government and the rest are assumptions and slander.  Thousands of people in New York are put to work through self-sufficiency programs to avoid more costly public assistance methods that combine education with giving poor citizens proper skills to enter the workforce.  There are a variety of government programs serving to get people off the welfare roles.  

Many people criticize programs such as these a) because they don't know much about them, or b) because they simply believe that they waste taxpayers money; that they are economically unwise because they've heard stories of the poor "milking the system."  Yes, and in fact a "bleeding heart liberal" probably did come up with this idea, to help the poor and vulnerable.  The bleeding heart mantra really gets to me after a while.  I really need to commend that person for their ability to look at the world with compassion.  But at the end of the day, where would we be without compassion?  Does anyone think of that?  Where would we be without the compassion that our mothers showed to us at an early age?  Where would we be without our families?   Do we ever think of what it really would be like to grow up without a family, or with a mother or a father that could only give us 10% of the love we were shown because they were incapable, didn't know how, or didn't possess the skill or education?  Helping families to become self sufficient is one of the most charitable services the state and our nation offers it's citizens, to those people that were not as lucky as perhaps we were.  Not only are state programs like "Welfare to Work charitable, but also economically wise because we have enabled another family to start working, contributing, educating and providing good role models for their kids and communities.  

The state does not only use taxpayer dollars to enhance our own lives, but the lives of all, including the downtrodden, less fortunate, and the vulnerable.  The goal in my mind is to create a rising tide where all boats are lifted up, not just some.  I think it is very easy to think at times of how we see ourselves within the limits of our own choices and actions, within our own spheres of influence. But the spheres of influence over a state and nation go beyond that which we are many times capable of seeing ourselves or fully understanding.  

In life, I have had the privilege of being exposed to and nurtured by some of the Christian traditions and moreover Ignatian traditions, by being congnizant and aware of the needs of others, especially those that are less fortunate. I recognize the value in state programs like the ones I mentioned above that enable families to feel their worth, and to participate in an economy such as ours that is heavily dependent upon participation and contribution.  Through the tax code, the State and Federal Governments assure that we all contribute to the good of society and society's neediest members, that serves a purpose which transcends the natural human tendency to be selfish.  This is at the core of all of our state service programs, and is at the very heart of all our charitable, civic and religious organizations and institutions.  Giving, whether it be through the tax code written into law by the caretakers of the state, or through one's own selfless giving, it is the intent, heart and foresight behind these acts that matter.

ACTUALLY, LOOK UNDER THAT ROCK - THERE'S MORE INEQUITY

I've always been a pretty grateful person.  I attribute this to my upbringing, my Dad's strong values when it comes to hard work, compassion for those that have very little in this world in comparison, and to a general sense of gratitude that comes with each passing day.  We are a very lucky and blessed people, me and you.  Many times I've heard people say "capitalism is the reason why the US has achieved what it has and has grown to become the world's leading superpower."  I'm not going to deny that there's a ring of truth in that.  They might also say that if it was not for those that worked the hardest and had the best ideas, that have carried the rest of society on it's back to get where we are, we wouldn't have gotten to where we are.  I don't deny that this is also partly true, but things eventually lead toward the mantra that supports tax breaks for the wealthiest when there are obvious game changers like the fact that a large number of US companies shelter their income and pay no corporate income tax as we found with one example - General Electric last year, not to mention the stats that show that the wealthy pay less of a percentage of their income in tax than those that make very little.  Now can you imagine if individual citizens decided to jump on the bandwagon to not pay their taxes?  Our tax system has become so complex, with companies taking advantage of so many loopholes, that we should press the restart button and rewrite the tax code.  The Government has been generous with our tax laws, we are currently giving businesses a myriad of write off ability and tax breaks for businesses to stimulate job creation, so do the wealthiest also need additional tax breaks on top of that?  Well, they just got one, despite what world leading economists have said repeatedly, that the Bush Era tax cuts have become essentially misnomers of economic stimulus.

Would you agree that the overall success of a company heavily depends on the merits and the collective brain power of those working beneath and alongside the upper management of a firm?  Take any Bank of America, Con-Edison or United Health Care - their raw success is an extension of the knowledge base accumulated and developed and put forth by the multitude of employees from which contributions are made daily, great and small.  Today companies and organizations have become more complex and the sharing of knowledge is more prevalent than ever before.  There's no right or wrong way to advocate on behalf of middle America where such disparity exists.  Now is also time to create incentives for a fairer pay structure in private industry, a new measuring stick, but where merit and performance remain highly valued.  


Apart from the importance that merit and performance plays, it is my opinion that when a CEO makes $28 Million a year, when the average workers are making $35,000 to $40,000, and when there are some lower on the pay scale that don't even receive health care benefits, are we about to say that the large gaps in pay constitute the difference in performance?  In this instance, the CEO makes 800 times more than the worker that makes $35,000.  To me, this is an example of a company that places the value of their bottom line far and above how they place value with their employees.  Is it because companies would loose their competitive edge if they redistributed profits to employees across the board?  Wouldn't this mean happier workers?  Wouldn't that lead to increasing employee longevity, less turnover, and less time and money allocated to training new employees?  In absentia: common sense, fairness, and real time economics.

CONCLUSION

I've had ample opportunity to think long and hard about how blessed I am, but it should be acknowledged that living in this country has a price.  The price we pay to live and make difficult choices, and the sacrifices we make every day, count big.  In the greatest country on the earth, we earn our opportunities, freedom, ability to access information and carve our path to happiness and I think it is important while we think of these wonderful gifts that hold intrinsic value, that we also recall the importance of accountability.


My hope is that something here might create in you the impetus to step forward and to find the passion where your growing desire might serve to meet the world's need in some way.  Maybe you're already doing that and that's a great thing.  It doesn't have to be anything big and even can be something small.  In the words of Mother Theresa "We cannot all do great things, but we can do small things with great love" Although society and the problems we face collectively can be complex, and can overwhelm us, we can hold simplicity and a sense of optimism in our hearts.  Looking within oneself prompts the generation of ideas, creativity, compassion, and community; they help us to cultivate a sense of our own worth.  It's not everything outside of you, the nice house or the next car, or the next smart device that are worth their weight in gold, it is what we discover when we look within, when we realize how on fire we are for humanity, that truly adds value to the lives we lead.  This is what the world is waiting for.