Is America ready for a new Progressive era?
Jeffrey Sachs, author and director of the Earth Institute at Columbia University, recently wrote an article for the Times arguing why he believes Americans are on the precipice of a new progressive. I outline his arguments and offer my thoughts below:
Sachs sees the Occupy movements around the country as evidence that we are finally leaving the “Regan Era” and entering some kind of new progressive era. According to him (the data back him up on these points) the “Regan era” has culminated in soaring income for the top 1 percent and crushing unemployment or income stagnation for much of the rest. He believes that the new progressive era will be characterized by meeting the most important challenge for future generations: restoring prosperity and power for the 99 percent.
For those not familiar with Reagan, he was an extremely charismatic and likeable man. Politically, he was arguably the second most influential 20th century president behind F.D.R. I suppose the fact that there is such a thing as the “Reagan era” is a testament to that. Reagan famously said: “Government is not the solution to our problem. Government is the problem.” Though this was a common attitude for conservatives prior to Reagan, it has become almost an obsession with contemporary Republicans. For that, Reagan is credited.
Unfortunately, Reagan misdiagnosed the problem facing America. He argued it was the government. In his article, Jeffrey Sachs argues that it was (and still is) the rise of global competition in the information age. The government was merely a “bogeyman”.
Since Reagan has left office, Americans have had essentially three terms of both a Democrat and Republican president. The effects of Reagan still live with us today, however. According to Sachs both political parties have joined in devaluing the government in response to the demands of their wealthy campaign contributors, who above all else insist on keeping relatively low tax rates on capital gains, top incomes, estates and corporate profits. Corporate taxes as a share of national income are at the lowest levels in recent history. Rich households take home the greatest share of income since the Great Depression.
So what’s the historical precedence for this kind of wealth inequality? Twice before in American history, powerful corporate interests dominated Washington and brought America to a state of unacceptable inequality, instability and corruption. Both times a social and political movement arose to restore democracy and shared prosperity.
The first age of significant inequality was the Gilded age at the end of the 19th century. The two major political parties tended to pay lip service to the middle and lower economic classes, while ultimately serving the interests of the corporate upper class. Soon after the financial crisis of 1893 a progressive movement arose (sound familiar?). Teddy Roosevelt and Woodrow Wilson were elected in the following years and ushered in an impressive era of reform. This included fair labor standards, direct election of senators, women’s suffrage, the federal income tax and trust busting.
The second was the “Roaring Twenties”. The pro-business administrations of Harding, Coolidge and Hoover once again opened up the floodgates of corruption and financial excess. According to Sachs, this culminated in the Great Depression. Not surprisingly, F.D.R. quickly began to push society in the other direction. . F.D.R.’s New Deal marked the start of several decades of reduced income inequality, strong trade unions, high tax rates for the wealthiest Americans and strict financial regulation. After he was elected, Reagan began to dismantle many of the components of the New Deal.
Sachs goes on to argue that now a third progressive era is likely to be ushered in. He believes that it should aim for three things:
1. 1. A revival of crucial public services like education, training, public investment and environmental protection.
2. 2. An end of a climate of impunity that encouraged nearly every Wall Street firm to commit financial fraud.
3. 3. To re-establish the supremacy of “people votes” over “dollar votes” in Washington.
Sachs realizes that this kind of reform will not be easy. He readily admits that and argues for both hard work and patience: “The New Deal struggled for a decade to overcome the Great Depression, and the expansion of economic justice lasted through the 1960s. The new wave of reform is but a few months old.”
I agree with much of what Jeffrey Sachs writes in this article. For my country’s sake, I hope that reforms are created that will help revitalize it. I’m curious what the Occupy movement will look like at the first of the year. Will it last? I suppose the numbers of people who are willing to stand outside might dwindle in the cold, but the feeling shared among millions of Americans won’t. Sachs believes that Occupy movement already has a basic policy platform: tax the rich, end the wars and restore honest and effective government for all.
That sounds wonderful, but I disagree that restoring honest and effective government for all is a public policy position. What “effective” government look like? I suppose having Congress actually pass a bill one of these days would count… If we want that to happen, we should limit the number of filibusters that can happen within a certain congressional season. That’s a specific and tangible reform. Taxing the rich will not solve all of Americans’ problems (thought it could help), but reforming the tax code so that loopholes are eliminated would be a monumental victory for any Congress and the American people. And with bi-partisan support, this would be a serious policy achievement for both parties. These are the sorts of specific policy changes that should be enacted immediately.
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The Takeaway: Those wanting Progressive reforms should be both diligent and patient. If they look at U.S. history they might even be optimistic...