Archive for the 'Class, poverty, labor, & related issues' Category

On Cato, Libertarians, Freedom, And Social Democracy

Thursday, March 8th, 2012 by Barry Deutsch

So the libertarian Cato Institute may or may not be subject to an unwanted takeover by the Koch family. It’s widely expected that if the Koches take Cato over, they’ll turn Cato into a GOP cheerleader.

(If that happens, it would be a shame. Although of course I often disagree with Cato, they do valuable work in areas such as prescription painkillers, and immigration.)

In anticipation of losing his freedom to write what he wants to if Koch takes over, libertarian Julian Sanchez has “presigned” from his Cato job (and he made it extra badass illustrating it with a photo of The Prisoner):

As I said, I’m in no great hurry to leave a job I enjoy a lot — so I’m glad this will probably take a while to play out either way. But since I’m relatively young, and unencumbered by responsibility for a mortgage or kids, I figure I may as well say up front that if the Kochs win this one, I will.

Corey Robin finds this telling:

But clearly there is coercion in the workplace; Sanchez readily admits it. And clearly its reach—whether it touches the individual worker or not—is related to, indeed depends upon, that worker’s ability to act, in this case to quit. Again, Sanchez admits as much.

So if liberty is the absence of coercion, as many libertarians claim, and if the capacity to act—say, by enjoying material conditions that would free one of the costs that quitting might entail—limits the reach of that coercion, is it not the case that freedom is augmented when people’s ability to act is enhanced?

More to the point: is one’s individual freedom not increased by measures such as unemployment compensation, guaranteed health insurance, public pensions, higher wages, strong unions, state-funded or provided childcare—the whole panoply of social democracy that most libertarians see as not only irrelevant to but an infringement upon individual freedom?

Bleeding heart libertarian Jessica Flanigan responds:

While I don’t agree with Robin’s argument, I do think that something like this criticism does land against a certain kind of extreme libertarianism, the people who deny easy rescue ( e.g. Randians.) Certainly there are elements to libertarianism that do deny any positive duties and discourage any assistance.

But to say that libertarianism is intrinsically committed to this view is just as uncharitable as a libertarian’s caricature of the left as a bunch of state-worshiping freedom-hating neo-Stalinists.

This seems like a strawman argument. Robin didn’t argue that the commitment against “unemployment compensation, guaranteed health insurance,” etc, was or was not “intrinsic” to libertarianism. But these views seem commonplace among most libertarians right now, whether or not they’re intrinsic, and that makes them fair game for criticism.

Flanigan seems to have entirely missed Robin’s point, which was about coercion (a word her post doesn’t even mention, except when quoting Robin). I’m glad that Julian Sanchez, who I respect greatly, has enough options — and few enough responsibilities — so that he can’t be coerced by new management. He can just quit. But, as Robin points out, Sanchez is implicitly admitting that a worker without those advantages could be coerced by their employer.

Modern libertarianism has a lot to say about the threat to freedom caused by government coercion, and rightly so. But the question is, what does libertarianism have to offer workers who aren’t as lucky as Sanchez — workers who are coerced into accepting unreasonable, unacceptable or unsafe working conditions, for instance?

Robin writes:

That, it seems to me, is the great divide between right and left: not that the former stands for freedom, while the latter stands for equality (or statism or whatever), but that the former stands for freedom for the few, while the latter stands for freedom for the many.

This seems a little broad-brushed to me (for one thing, is the Democratic party part of the “left”? Cause they sure don’t consistently stand for freedom.) But I think it is fair to say that modern libertarianism stands mainly for freedom from state coercion. Progressives, in contrast, think people need freedom not only from state coercion, but also freedom from economic and corporate coercion.

That’s why Julian Sanchez’s presignation was ironic. Not because I believe that Sanchez worships rich people — but because he recognizes the ways employers can coerce workers, yet libertarianism seems to have virtually no concern about that sort of coercion, nor anything substantial to offer those workers. If anything, common libertarian policies — the elimination of social security, for instance — would leave workers even more vulnerable to employer coercion.

(By the way, I do want to acknowledge that Flanigan favors a basic income policy, which actually would reduce employers power over workers. But if this is a policy that most libertarians today favor, they’ve kept awfully quiet about it.)

Top Ten Ways Teachers’ Unions Caused The Economic Crisis (Political Cartoon)

Friday, October 28th, 2011 by Barry Deutsch

Script for this comic SelectShow

Happy Labor Day

Monday, September 5th, 2011 by Barry Deutsch

Via Unequally Yoked.

(Why yes, that is Batman.)

Political cartoon: How Democracy Works

Tuesday, August 23rd, 2011 by Barry Deutsch

Script for this comic SelectShow

Quoting a paper by Martin Gilens (pdf link):

Using an original data set of almost 2,000 survey questions on proposed policy changes between 1981 and 2002, I find a moderately strong relationship between what the public wants and what the government does, albeit with a strong bias toward the status quo. But I also find that when Americans with different income levels differ in their policy preferences, actual policy outcomes strongly reflect the preferences of the most affluent but bear little relationship to the preferences of poor or middle income Americans.

In the table above, the dark line represents the opinions of the highest-earning 10% of Americans. The further to the right the dark line goes, the more that top 10% wants a policy change to happen. And the further towards the top the dark line goes, the more likely it is that politicians will make the desired policy change happen. As you can see, the more the top 10% want a change, the more likely it is to happen.

The gray line represents the opinions of the lowest-earning 10% of Americans. As you can see, it’s completely irrelevant what they (er, we?) think. Politicians couldn’t care less. Gilens also has a similar graph showing that politicians barely listen any more to middle-class Americans than they do to poor Americans.

(See also, this essay by political scientist Larry Bartels.)

A Messed-Up Libertarianism

Sunday, May 1st, 2011 by Barry Deutsch

A quote from libertarian Jim Henley, via LOOG:

Most libertarians would agree that it’s a messed-up state that:

* Creates a massive crime problem in poor minority neighborhoods with a futile, vicious and every more far-reaching attempt to prevent commerce in popular, highly portable intoxicants that leaves absurd numbers of young men with felony records, making them marginally employable.

* Fails to provide adequate policing for such neighborhoods.

* Fails to provide effective education in such neighborhoods after installing itself as the educator of first resort.

* Uses regulatory power to sharply curtail entry into lines of business from hair-care to ride provision, further limiting the employment options of people in such neighborhoods.

* Has in the past actively fostered the oppression of said minority, up to and including spending state money and time in keeping its members in bondage.

* To make up for all of the above, provides a nominal amount of tax-financed welfare for the afflicted.

But it’s a messed-up libertarianism that looks at that situation and says, “Man, first thing we gotta do is get rid of that welfare!”

Are public workers overpaid?

Wednesday, March 2nd, 2011 by Barry Deutsch

On another thread, Robert writes:

People who are paid a market wage are (naturally) somewhat resentful of people who can deploy political power to extract an above-market wage, at the expense of the people being paid market wages.

If that’s so, isn’t it odd that the only income group that favors Walker’s plan to eliminate public unions’ bargaining rights are the rich? Why are the rich, in particular, so resentful? According to Gallop:

* Among those who make less than $24,000 annually, 74 percent oppose the proposal, versus only 14 percent who favor it.

* Among those who make $24,000 to $59,000, 63 percent oppose the proposal, versus only 33 percent who favor it.

* Among those who make $60,000 to $89,000, 53 percent oppose the proposal, versus only 41 percent who favor it.

* Among those who make $90,000 and up, 50 percent favor the proposal, versus 47 percent who oppose it.

Another major predictor of support for Walker’s anti-union plan is political party; Republicans favor it, Democrats and Independents oppose it. So why are Republicans, in particular, so resentful?

I don’t think the actual pattern of resentment — in which working-class people are the least likely to agree with Walker’s anti-union plan, and anti-union sentiment seems pretty partisan1 — is a good match for Robert’s theory of what’s going on.

Plus, Robert assumes — without any links or facts to justify this — that public sector workers are overpaid. But using a bog-standard2 method of measurement, public employees are actually underpaid compared to private sector workers (see here, here, and here, for example).

Unsuprisingly, conservatives have responded to the evidence by bringing in new and innovative measurements, different from how economists have measured these things for decades, and — what a coincidence! — these new measurements just happen to show that public sector workers are overpaid.

For example, conservatives now hype unadjusted wage averages (apparently if a government lawyer gets paid more than a private sector ticket-taker, that’s an injustice?), or suggest we shouldn’t bother looking at how otherwise similar workers are paid, and instead only consider quit rates.

But none of these alternative measures are convincing. You can’t just compare raw average wages, for example, unless you think it’s unjust for a private sector ticket-taker to be paid less than an Attorney General. For quit rates to be an accurate measure, we’d need to separate the wage effect on quit rates from selection effects (public sector jobs may attract people who are less money-driven, more risk-adverse, etc) and from different career path effects (different kinds of promotion ladders, pensions vs 401ks, etc). Quit paths are advertised as a way of avoiding the apple/orange problem, but really they just bring up different apple/orange problems.

I think the evidence is stronger on the “they’re underpaid” side, especially for government workers with higher degrees. Comparing similar workers isn’t a perfect method, but it’s the best method economists have yet come up with.

That said, the best measure we have still has some uncertainty. Because no economic measure can 100% avoid the apples-to-oranges problem. So if conservatives want to argue that we don’t know for sure that public sector workers are underpaid, I’d have to agree with them.

But of course, that’s not what conservatives are doing. For the most part, conservatives are doing what Robert did — assuming that government workers are overpaid, without stating any evidence. Color me unconvinced.

  1. I’m not denying that there are individual exceptions, of course
  2. Where does the expression come from? Are all bogs very standardized?

Krugman on Inequality of Opportunity

Monday, January 10th, 2011 by Barry Deutsch

Krugman:

The first thing one should say is that our system does reward hard work, up to a point. Other things equal, those who put more in will earn more.

But a lot of other things are, in fact, not remotely equal. These days, America is the advanced nation with the least social mobility (pdf), except possibly for Britain. Access to good schools, good health care, and job opportunities depends on lot on choosing the right parents.

So when you hear conservatives talk about how our goal should be equality of opportunity, not equality of outcomes, your first response should be that if they really believe in equality of opportunity, they must be in favor of radical changes in American society. For our society does not, in fact, produce anything like equal opportunity (in part because it produces such unequal outcomes). Tell me how you’re going to produce a huge improvement in the quality of public schools, how you’re going to provide universal health care (for parents as well as children, because parents in bad health affect childrens’ prospects), and then come back to me about the equal chances at the starting line thing.

The report Krugman links to includes this graph:

Note that they’re measuring inter-generational mobility by comparing fathers to sons. They have a legitimate reason for doing that — good data about lifetime earnings is available for fathers and sons, but not for other measures, and without good matching datasets you can’t do international comparisons well — but it’s still annoying.

So what does that difference mean, in practice? Basically, in the USA and Britain, it generally takes about six generations for the advantages of being born in a wealthy family to fade out; in countries like Canada and Denmark, that advantage fades after just three generations.

More importantly, the economic floor in the US is just much stickier than it is in other countries:

Starting at the bottom of the earnings ladder is more of a handicap in the United States than it is in other countries. What is new and striking about these findings, however, is a particularly high amount of stickiness at the bottom for American males.

Specifically, men born into the poorest fifth of families in the United States in 1958 had a higher likelihood of ending up in the bottom fifth of the earnings distribution than did males similarly positioned in five Northern European countries—42 percent in the United States, compared to 25 to 30 percent in the other countries (see top half of Table 1).

Furthermore, in the United States, only 8 percent make the “rags to riches” climb from bottom to top rung in one generation, while 11 to 14 percent do so in other countries.

However , when making this comparison, it is important to note that the Americans who climb from bottom to top in one generation are climbing further in absolute dollars than their counterparts in Europe, given the broad income dispersion in the United States. Still, according to this measure, rising on one’s own bootstraps is harder in the United States than it is in several northern European countries.

So in the US, we essentially have accepted more people being stuck in poverty, in exchange for the chance for the few who work their way out of poverty being richer.

Or have we accepted that? Maybe we haven’t — because accepting that exchange would mean being aware that it exists, and Americans lack awareness. One of the most striking things in the report Krugman links to is that, although Americans have less opportunity than most people who live in wealthy countries, we believe we have more opportunity. Americans, more than anyone else, believe that hard work matters and the family you were born into doesn’t. In contrast, countries that actually provide more opportunity, also believe that family wealth matters more to outcomes. It’s all very ironic and annoying, if you ask me.