The Moochers of Middle America

The Democrats aren’t radical, but Republicans are.

Last week’s debates clearly weakened Joe Biden and increased the odds that a more definitively progressive candidate — probably Kamala Harris or Elizabeth Warren — will win the nomination. And you can hear the wailing from much of the Beltway, the claims that Democrats are moving too far left.

So it’s worth parsing those claims. In what sense are the Dems moving too far left? What I’m seeing are three fairly distinct claims.

  1. First, that the party is endangering its electoral prospects.
  2. Second, that the party is being fiscally or economically irresponsible.
  3. Third, that Democrats are unfairly proposing to redistribute income from those who create wealth to those who don’t.

So you should know that the first claim is probably wrong, the second is definitely wrong, and the third ignores the extent to which we already do a lot of redistribution in this country — with Republican voters some of the biggest beneficiaries.

On the politics: Politicians and pundits alike tend to have a lot more contact with the wealthy than with ordinary voters, and often seem to imagine that the priorities of the 1 percent — keeping top tax rates low, cutting “entitlements” — actually resonate with the general public. But polling overwhelmingly shows the opposite: Voters want to raise taxes on the rich and expand government social programs.

In moving to the left on taxes and spending, then, Democrats are actually moving toward voters’ preferences, not away from them. Yes, Republicans will try to demonize their proposals, but they would do that in any case. Remember, they called Barack Obama, with his incrementalist policies and willingness to consider Medicare cuts, a socialist, too.

In fact, the best argument against “Medicare for All” skeptics like me, who worry how voters will react to proposals to eliminate private insurance, is that Republicans will scream about a government takeover of health care — and Fox News viewers will believe them — whatever you do.

On fiscal and economic responsibility: Nobody who endorsed the 2017 tax cut has any right to criticize Democratic proposals to spend more on things like child care. That tax cut, after all, appears likely to add around $2 trillion to federal debt — with around a third of that going to foreigners. Meanwhile, the promised surge in business investment is nowhere to be seen.

At the same time, there’s a very good case for arguing that Democratic proposals would have economic as well as humanitarian benefits.

Support for child care, for example, would free more women to enter the paid work force — where they would pay taxes that would offset some of the cost. And the children benefiting from that support would eventually become healthier, more productive adults.

In other words, while progressive Democrats are mainly arguing for greater social justice, they can also make a much better case than conservatives ever could that their proposals would help the economy and at least partly pay for themselves.

Last but not least, if your view is that the progressive agenda is morally wrong, that people shouldn’t receive more in government benefits than they pay in taxes, you should be aware how many Americans are already “takers,” “moochers,” whatever. In fact, we’re talking about a vast swath of the heartland that includes just about every state that voted for Donald Trump.

I’ve been reading a recent Rockefeller Institute report on states’ federal “balance of payments” — the difference for each state between what the federal government spends in that state and what it gets back in revenue.

The pattern is familiar: Richer states subsidize poorer states. And the reasons are clear: Rich states pay much more per person in federal taxes, while actually getting a bit less in federal spending, because Medicaid and other “means-tested” programs go disproportionately to those with low incomes. But the magnitudes are startling.

Take the case of Kentucky. In 2017, the state received $40 billion more from the federal government than it paid in taxes. That’s about one-fifth of the state’s G.D.P.; if Kentucky were a country, we’d say that it was receiving foreign aid on an almost inconceivable scale.

This aid, in turn, supports a lot of jobs. It’s fair to say that far more Kentuckians work

  • in hospitals kept afloat by Medicare and Medicaid,
  • in retail establishments kept going by Social Security and food stamps,
  • than in all traditional occupations like mining and even agriculture combined.

So if you really believe that Americans with higher incomes shouldn’t pay for benefits provided to those with lower incomes, you should be calling on “donor” states like New Jersey and New York to cut off places like Kentucky and let their economies collapse. And if that’s what you mean, you should let Mitch McConnell’s constituents know about it.

The point is that while you can criticize particular Democratic proposals, you can only portray progressives as radical or irresponsible, especially as compared with the modern G.O.P., by ignoring or suppressing a lot of facts. I guess facts really do have a liberal bias.

America’s Child Care Crisis Is an Economic Crisis

Elizabeth Warren, Bernie Sanders, Kamala Harris and other candidates finally take notice.

Child care is not something nice to have. It is a pressing crisis holding back the entire economy. Growth depends on more people working and working more productively. When parents who want to work can’t fully participate, America hurts only itself. Fortunately, many of the people running for president appear to have gotten the memo, making child care likely to be a topic during the Democratic debates.

Up until the 2000s, American women steadily marched into paid employment, mainly women with children. Our economy would be 11 percent smaller if they hadn’t. But since then they’ve started to fall away. A main culprit: the high cost of care. Labor force participation is today 19 percent lower for women with children than for comparable women who do not have children.

Child care is particularly expensive in this country. In the United States, it easily reaches tens of thousands of dollars a year, often taking up more of a family’s budget than food or even housing. It consumes a larger share of a couple’s income in the United States than in all but two developed countries, New Zealand and Britain. The rising cost of child care since the 1990s has dampened women’s employment in the United States by 5 percent overall and by 13 percent for those with kids under five. Almost two million parents report quitting a job, not taking a job or significantly changing one because of problems with care.

What’s the solution? According to many of the Democratic candidates, it’s universal relief. Under Elizabeth Warren’s plan, the federal government would offer money to states and local communities to expand child care. It would be free for many lower-income families and capped at 7 percent of income for all others. Three other candidates — Kamala Harris, Beto O’Rourke and Eric Swalwell — also support universal child care, according to Vox, although through congressional Democrats’ more complicated bill to bolster the availability and affordability of child care and preschool. Bernie Sanders has long called for universal child care but hasn’t put forward a plan for it since 2011.

Investing in universal care can pay off. Quebec instituted low-cost, universal child care in 1996. Since then, the share of working women aged 26 to 44 in the province has come close to 85 percent, the highest in the world. It increased 16 percent for mothers of children 5 or younger, compared with just 4 percent in the rest of the country.

We also have experience here at home. During World War II, when the government ran a nationwide network of day care centers so that women could work in factories, those who used them were more likely to work and to work longer. In a smaller-scale experiment, Washington, D.C., began offering parents free, universal preschool in 2009; the program increased the share of women in the city’s labor force by 10 percentage points.

Other candidates back more incremental ways to address child care. Kirsten Gillibrand, Pete Buttigieg, Michael Bennet and Seth Moulton want to increase tax credits to help ease the cost. Julián Castro, Bill de Blasio, Andrew Yang and Cory Booker are fans of universal preschool, which helps solve the problem for parents of older children.

Child care has even caught Republicans’ attention. In his most recent budget proposal, President Trump included a $1 billion one-time investment that would require states to compete against one another for the money by pledging to reduce regulations on child care. But too much regulation is not the cause of our problem. In 2013, no states got a top grade for their health and safety standards. Few states regulate whether care is enriching or developmentally appropriate, and many allow staff-to-toddler ratios of 1:10 or higher.

Regulation and safety are just one part of the picture. Child care is a three-legged stool: A functioning system that would support parents and providers requires investing in affordability, accessibility and high quality. Just over half of American families live in places where there are either three times as many children as available child care spots or no spots at all. For those who can find one, it means little if they can’t afford it or if the care is so shoddy that they can’t trust it.

If a child care proposal focuses only on bolstering one leg, the others will grow weaker under the pressure. More child care spots won’t necessarily mean parents can afford them. More money for parents won’t help address quality or access. Even Ms. Warren’s plan, the most comprehensive offered so far, doesn’t fix all of these pieces. While her staff says states and cities would get incentives to expand slots, there is no guarantee that enough child care spaces would be created to meet the country’s need.

Those who want to lead the country have finally realized child care is something they must address. Only a bold, comprehensive solution will end this economic crisis once and for all.

The Best Era for Working Women Was 20 Years Ago

Things seem to have changed around the 2001 recession. Until then, women tended to keep their onward march into employment steady even when the economy faltered. If their employment dipped, it quickly recovered. But this was the first time that the share of working women dropped without bouncing back.

.. Husbands’ wages grew faster than wives’ in the 1990s, which may have eventually discouraged married women from staying at work.

.. For lower-wage women, work itself has also gotten worse. Research by Robert Moffitt, a Johns Hopkins economist, has found that the decline in women’s labor force participation, especially among lower-educated women, mirrors that of their male peers.

.. The low-wage jobs these laid-off workers found are more likely to come with variable schedules that make it difficult to arrange child care. Work hours have also stretched later and later, which hurts women more.
..  the United States has done almost nothing to help make it easier for parents to work and raise a family at the same time. Unlike all other developed countries, the United States doesn’t guarantee parents any paid time off when they have children.
.. If the United States were to spend more on helping parents get child care, ensure they can take paid time off work and protect those who want or need to work flexible schedules, it would almost certainly tap into this pool of women who have stepped away from work.
.. the economy would have been 11 percent smaller if women’s labor force participation had remained at the levels of the late 1970s.
.. President Trump has said he wants to reach 3 percent G.D.P. growth. He would do well to focus on increasing how many women work.
.. This is a man who said in the 1990s — that same decade when working women reached their zenith — that “putting a wife to work is a very dangerous thing.”

He’ll find out how dangerous it is for the economy when the government doesn’t help put all women, married or not, to work.

This Isn’t Tax Policy; It’s a Trump-Led Heist

This isn’t about “jobs,” as the White House claims. If it were, it might cut employment taxes, which genuinely do discourage hiring. Rather, it’s about huge payouts to the wealthiest Americans — and deficits be damned!

.. If Republicans embrace this “plan” after all their hand-wringing about deficits and debt, we should build a Grand Monument to Hypocrisy in their honor.

Trump’s tax “plan” is a betrayal of his voters. He talks of helping ordinary Americans even as he enriches tycoons like himself.

.. fewer than 10 percent of low-income households with children would get anything at all

.. families earning between $10,000 and $30,000 a year would receive an average child care benefit of just $10.

.. In fairness, Trump’s proposal does include some sensible elements. Raising the standard deduction is smart and would simplify everything, reducing cheating and the need for record-keeping because millions of filers would no longer itemize deductions.