The Real Owners of this Country don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They want OBEDIENT WORKERS, OBEDIENT WORKERS.
Saagar Enjeti discusses the political fallout from the open vacancy on the Supreme Court following the death of RGB.
Aaron Glantz’s award-winning investigative journalism has sparked over a dozen congressional hearings and criminal probes. His latest book, “Homewreckers,” takes a shocking new look at America’s 2008 housing crisis. It’s a tale of greed and corruption, as Glantz pulls back the curtain on a group of Wall Street magnates who he says took advantage of a rigged system. Moreover, as Glantz tells Hari Sreenivasan, these “homewreckers” include key members of President Trump’s inner circle.
James S. Henry introduces a hot topic: offshore banking. The G8 and G20 are planning meetings to discuss it. Even the Netherlands is a tax haven for certain types of companies. The huge amount of numbers and graphs tells us that we are confronted with nothing less than a global tax haven industry. For example, Apple makes 100 billion dollars a year of tax free profits because of the games private bankers know how to play.
In medieval times people couldn’t hide their wealth when tax collectors came to inventory it. Nowadays they can. It is said that 64 percent of the global profits are parked offshore, for an important part by multinationals from the first world.
The third world is the victim of this practise. An example from the banana industry: exporting a banana from the Cayman Islands costs 13 pence. When it arrives in the UK to be consumed, the costs have grown to 60 pence. All of this money goes to other parties than the Cayman Islands.
Because of the tax havens, countries from the Third World are not able to receive the tax incomes they are entitled to. Henry even concludes that the debt problem of the third world is not a debt problem, but a tax problem. Both amount to almost the same.
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No other industrial country treats its working class so badly. And there’s one big reason for that.
The United States is the only advanced industrial nation that doesn’t have national laws guaranteeing paid maternity leave. It is also the only advanced economy that doesn’t guarantee workers any vacation, paid or unpaid, and the only highly developedcountry (other than South Korea) that doesn’t guarantee paid sick days. In contrast, the European Union’s 28 nations guarantee workers at least four weeks’ paid vacation.
Among the three dozen industrial countries in the Organization for Economic Cooperation and Development, the United States has the lowest minimum wage as a percentage of the median wage — just 34 percent of the typical wage, compared with 62 percent in France and 54 percent in Britain. It also has the second-highest percentage of low-wage workers among that group, exceeded only by Latvia.
All this means the United States suffers from what I call “anti-worker exceptionalism.”
Academics debate why American workers are in many ways worse off than their counterparts elsewhere, but there is overriding agreement on one reason: Labor unions are weaker in the United States than in other industrial nations. Just one in 16 private-sector American workers is in a union, largely because corporations are so adept and aggressive at beating back unionization. In no other industrial nation do corporations fight so hard to keep out unions.
The consequences are enormous, not only for wages and income inequality, but also for our politics and policymaking and for the many Americans who are mistreated at work.
To be sure, unions have their flaws, from corruption to their history of racial and sex discrimination. Still, Jacob S. Hacker and Paul Pierson write of an important, unappreciated feature of unions in “Winner-Take-All Politics”: “While there are many ‘progressive’ groups in the American universe of organized interests, labor is the only major one focused on the broad economic concerns of those with modest incomes.”
As workers’ power has waned, many corporations have adopted practices that were far rarer — if not unheard-of — decades ago:
- hiring hordes of unpaid interns,
- expecting workers to toil 60 or 70 hours a week,
- prohibiting employees from suing and instead forcing them into arbitration (which usually favors employers), and
- hamstringing employees’ mobility by making them sign noncompete clauses.
America’s workers have for decades been losing out:
- year after year of wage stagnation, i
- ncreased insecurity on the job,
- waves of downsizing and offshoring, and
- labor’s share of national income declining to its lowest level in seven decades.
Numerous studies have found that an important cause of America’s soaring income inequality is the decline of labor unions — and the concomitant decline in workers’ ability to extract more of the profit and prosperity from the corporations they work for. The only time during the past century when income inequality narrowed substantially was the 1940s through 1970s, when unions were at their peak of power and prominence.
Many Americans are understandably frustrated. That’s one reason the percentage who say they want to join a union has risen markedly. According to a 2018 M.I.T. study, 46 percent of nonunion workers say they would like to be in a union, up from 32 percent in 1995. Nonetheless, just 10.5 percent of all American workers, and only 6.4 percent of private-sector workers, are in unions.
But this desire to unionize faces some daunting challenges. In many corporations, the mentality is that any supervisor, whether a factory manager or retail manager, who fails to keep out a union is an utter failure. That means managers fight hard to quash unions. One study found that
- 57 percent of employers threatened to close operations when workers sought to unionize, while
- 47 percent threatened to cut wages or benefits and
- 34 percent fired union supporters during unionization drives.
Corporate executives’ frequent failure to listen to workers’ concerns — along with the intimidation of employees — can have deadly results. On April 5, 2010, a coal dust explosion killed 29 miners at Massey Energy’s Upper Big Branch coal mine in West Virginia. A federal investigation found that the mine’s ventilation system was inadequate and that explosive gases were allowed to build up. Workers at the nonunion mine knew about these dangers. “No one felt they could go to management and express their fears,” Stanley Stewart, an Upper Big Branch miner, told a congressional committee. “We knew we’d be marked men and the management would look for ways to fire us.”
The diminished power of unions and workers has skewed American politics, helping give billionaires and corporations inordinate sway over America’s politics and policymaking. In the 2015-16 election cycle, business outspent labor $3.4 billion to $213 million, a ratio of 16 to 1, according to the nonpartisan Center for Responsive Politics. All of the nation’s unions, taken together, spend about $48 million a year for lobbying in Washington, while corporate America spends $3 billion. Little wonder that many lawmakers seem vastly more interested in cutting taxes on corporations than in raising the minimum wage.
There were undoubtedly many reasons for Donald Trump’s 2016 victory, but a key one was that many Americans seemed to view him as a protest candidate, promising to shake up “the system” and “drain the swamp.” Many voters embraced Mr. Trump because they believed his statements that the system is rigged — and in many ways it is. When it comes to workers’ power in the workplace and in politics, the pendulum has swung far toward corporations.
Reversing that won’t be easy, but it is vital we do so. There are myriad proposals to restore some balance, from having workers elect representatives to corporate boards to making it easier for workers to unionize to expanding public financing of political campaigns to prevent wealthy and corporate donors from often dominating.
America’s workers won’t stop thinking the system is rigged until they feel they have an effective voice in the workplace and in policymaking so that they can share in more of the economy’s prosperity to help improve their — and their loved ones’ — lives.
One is solidly Republican and will stay that way; the other leans Democratic. And then there are the in-betweeners.
At Nancy Pelosi’s news conference last week, a reporter asked her about Joe Biden’s comments on his congenial dealings in the senate of the 1970s with the Southern Democrats James O. Eastland and Herman Talmadge, who were both staunch opponents of Civil Rights legislation and racial integration:
There’s been a back‑and‑forth between Vice President Biden and some of the candidates. Do you think that it is helpful to the party to sort of fight that fight over who best represents the party when it comes to sensitivities about race?
“That’s not what this election is about,” Pelosi answered in a severe tone. “This election is about how we connect with the American people, addressing their kitchen table needs.”
Reporters continued to press Pelosi: “What do you think about Vice President Biden’s words, referencing his work with segregationists and talking about his idea of civility?”
She shot back: “I have answered that question, and that’s all I’m going to say.”
The intensity of the exchange shows how determined key Democratic leaders are to keep the party focused on the bread-and-butter issues of jobs, health care and financial stability and to shore up the gains the party made in 2018, especially among whites.
Pelosi’s response illustrates the deep fear among the same leaders that the agenda could shift to issues of race and immigration. These are issues that a cadre of newly elected progressive members of Congress including Alexandria Ocasio-Cortez, Ilhan Omar, Rashida Tlaib and Ayanna Pressley — as well as Democratic presidential candidates like Elizabeth Warren, Kamala Harris and Cory Booker, all with warmly enthusiastic followings — have brought to the fore. Race and immigration are just the issues Donald Trump and his Republican allies want to place front and center in 2020.
Underlying this is the recognition by many Democratic strategists of the continuing political centrality of less highly educated white voters. Marginal shifts in partisan balloting by the white working class have been a crucial determinant in the outcome of elections since 1968.
This non-college white constituency — pollster shorthand for both the white working class and the white middle class without college degrees — makes up a massive bloc of the electorate, with estimates ranging from 48 percent of the entire electorate in 2016, according to an analysis by Catalist, a liberal voter research group, to 54 percent, according to the Cooperative Congressional Election Study.
Pete Brodnitz, founder and president of Expedition Strategies, a Democratic polling firm that has performed studies for the Democratic House Majority PAC, wrote by email that in 2018 he found that the white working class could be divided into five political categories:
- reliably Democratic, 33 percent;
- lean Democratic, 7 percent;
- true independents, 10 percent;
- lean Republican, 7 percent; and
- reliably Republican, 44 percent.
How each of these categories voted in 2016 shows the importance of these distinctions. In a poll of battleground House Districts, Hillary Clinton carried the reliably Democratic base by a solid 67-point margin (78-11) and the lean Democrats by 61 points (64-3). She lost the true independents by 16 percentage points (21-37). Trump won overwhelmingly among the lean Republican whites (73-12, a 61-point margin) and the solid Republicans by 84 points (88-4), according to the data collected by Expedition Strategies working with Normington/Petts, another Democratic polling firm.
“In almost every way, white non-college Democrats and white non-college Republicans are nothing alike,” Michael Podhorzer, the political director of the AFL-CIO, emailed in response to my inquiry.
Polling conducted by GQR, a Democratic firm, for the AFL-CIO, found that among the Republican white working class, 79 percent identify as Christian, two thirds of whom are evangelical or born again. Among the Democratic non-college electorate, 44 percent said they were Christian, and one third of them said they were evangelical or born again.
The Democrats are much younger, according to Podhorzer: 22 percent are Gen Z or Millennial compared with 12 percent of working class white Republicans. The Democratic members of the white working class are 59 percent female and 41 percent male, compared with 51 percent female, 49 percent male among Republican non-college whites.
Perhaps most important, the white non-college Republican and Democratic constituencies differ radically on policy and political beliefs.
Take favorability ratings of
- Black Lives Matter and
- Medicare for all.
Among working class white Democrats, the ratings are uniformly positive, according to AFL-CIO data: 89 percent, 80 percent and 85 percent. Among their white Republican counterparts, the ratings are uniformly dismal: 5 percent, 9 percent and 18 percent.
What this data shows is that Democrats should have little trouble retaining the support of members of the white working class who identify as Democrats, but they will struggle mightily to win over their Republican counterparts.
This divide leaves the small percentage of the white working class whose views put them in the middle ground between left and right up for grabs and likely to determine the outcome in 2020.
The AFL-CIO survey suggests that the roughly 10 percent of non-college whites who do not identify with either party may be reachable for Democratic candidates, but there are big hurdles.
For one thing, these self-described independents do not side with mainstream Democrats on the kinds of incendiary issues that President Trump loves to promote.
The AFL-CIO study examined four categories of voters: all Democrats; non-college white Democrats; independent non-college whites; and Republican non-college whites.
The survey asked, for example, whether voters agree or disagree with the statement “Social and economic problems in this country are largely due to individuals across races and origins refusing to work and expecting handouts.”
All Democrats, including white non-college Democratic respondents, took liberal stands, sharply disagreeing with the statement by 62 points (78-16) and 56 points (76-20). Independent voters in the white working class were in favor by 11 percentage points (52-41), and Republican respondents were solidly in agreement, by 72 points (84-12).
On a similar racially freighted question — “Social and economic problems in this country are largely due to certain groups failing to work hard and play by the rules” — Democrats disagreed by large margins, while independent white non-college voters showed greater conservatism, agreeing 54-36; Republican non-college whites strongly agreed, 79-12.
The accompanying graphic shows the pattern of opinion on three additional questions measuring what sociologists call “anti-black affect.”
AGREE: White people in the U.S. have certain advantages because of the color of their skin.
AGREE: Generations of slavery and discrimination have created conditions that make it difficult for African-Americans to work their way out of the lower class.
DISAGREE: Ethnic groups like the Irish, Italian, Jewish and many other minorities overcame prejudice and worked their way up. Blacks should do the same without any special favors.
The next accompanying graphic illustrates hostility toward immigrants — or acceptance.
DISAGREE: Increase border security by building a fence along part of the U.S. border with Mexico.
DISAGREE: Deport undocumented immigrants to their native countries.
The AFL-CIO survey demonstrate why liberal Democratic leaders like Pelosi are resolved to stand clear of some of the issues that divide their party from independents. At the same time, it shows why Pelosi and others want to focus on so-called kitchen table issues.
On health care and economic matters, there is far more overlap between the views of Democrats as a whole and independent white working class voters.
Support for a tax on wealth in excess of $100 million tops 90 percent among Democrats, while white working class independents support such a proposal 59-25.
A proposal supported by Democrats of all stripes — “Having the government produce generic versions of lifesaving drugs, even if it required revoking patents held by pharmaceutical companies” — has the backing of non-college white independents, 56-25.
By two to one, white independents agreed with two liberal populist statements: that “social and economic problems in this country are largely due to a handful of wealthy and powerful people rigging the rules to their advantage” and that “social and economic problems in this country are largely due to a handful of wealthy and powerful people dividing us against each other so they can take more for themselves.”
Two proposals backed by some of the Democratic presidential candidates — Abolish ICE and Medicare for All — do not sell well among white non-college independents, who opposed the two initiatives by 71-15 and 48-31.
Podhorzer argues that in the 2020 battleground districts and states the contest will be fought over the 13 percent who are swing voters, a group he calls “partisan bystanders.” He described them as “voters who either have a very negative view of both parties or do not have strong feelings about either party. These voters favored Democrats in the 2018 midterms by 11 points after favoring Trump by 6 points in 2016.”
According to Podhorzer, almost half (46 percent) of the partisan bystanders are “white non-college, so this group, especially white non-college women, is going to be a battleground for both campaigns.”
Podhorzer makes a key point: In his view, this 13 percent is receptive to Democratic appeals because they
are looking for answers to the basic economic challenges they face. That issues like health care are much more important to them makes sense given that just about everyone who cares about issues like immigration has already picked sides and won’t be moved.”
In some respects, the AFL-CIO poll provides ammunition to the Third Way, a centrist Democratic advocacy group.
Jonathan Cowan, president and co-founder of Third Way, argued in an email that:
Going forward to 2020, there are lines that Democrats can’t cross if they want to win nationally and hold the House and gain in the Senate. Medicare for All is one of those lines. But there are others like abolishing ICE, a guaranteed federal job, and certain climate proposals that ignore the economic circumstances of the interior of the country.
A Third Way survey of Democratic primary voters, conducted in May by David Binder Research, found that calls to abolish ICE in particular are problematic. In fact, Democratic presidential candidates are backing away from their earlier support of the idea, despite the horror show that is happening on the border right now.
The Third Way poll found that Democratic voters of all stripes prefer a candidate who promises to expand employment opportunity to one who would guarantee everyone a government job; and these voters prefer a candidate who would ensure “that every student who enters college can finish with a degree” to one “who supports free 4-year college for all students.”
In the case of health care, the Third Way survey of Democratic primary voters found that a plurality, 42.9 percent, preferred a candidate “who wants an annual cap that limits the costs people pay while making sure everyone has insurance coverage” while 35.2 percent prefer a candidate “who wants to pass a single-payer, Medicare for All government-run plan.”
Both Democratic and Republican strategists are putting all of these findings under a microscope because in a highly competitive election, seemingly small shifts can determine the outcome.
Take the difference between Hillary Clinton’s performance in 2016 and the performance of House Democratic candidates.
In 2016, all non-college whites went 60-34 for Trump over Clinton, while voting 58-38 in favor of Republican House candidates, according to Brian Schaffner, a political scientist at Tufts and senior researcher at the Cooperative Congressional Election Study.
This may seem insignificant, but if Clinton had been able to match the margin of Democratic House candidates, not only would she have picked up 2.9 million votes nationwide, she would have won Michigan, Pennsylvania and Wisconsin by a combined total of 383,000 votes instead of losing them by a total of 79,646 votes.
One interpretation of Democratic success in taking control of the House in 2018 suggests a strategy of moderation, while using animosity to Trump to boost turnout in hard core Democratic constituencies, including among minorities, young voters and single women. If the 2018 House give hints on the type of voters who offer the best targets for 2020, it is worth recalling that more than three quarters of the newly Democratic seats are in centrist districts.
According to data provided by Third Way, the new Democratic districts are predominately upscale, with higher than average percentages of well-educated, well-off whites and lower than average percentages of less-well-off whites.
However, the demographics of these districts mask the significant gains Democrats made in 2018 among non-college, less affluent whites. This becomes clear in an analysis of the 2018 election by Yair Ghitza, chief scientist at Catalist.
“There has been a lot of attention paid to the Democratic victories in suburban areas, but we find that Democratic gains were actually largest in rural areas,” Ghitza wrote:
These gains weren’t enough to get over 50 percent and win seats in many rural districts, so they have escaped much of the mainstream election analysis to this point. These changes are nonetheless important, particularly because they were large in many of the Midwest battleground states that will no doubt be important in 2020.
Ghitza provided further support for the Democratic strategy of going after white non-college voters by noting that 2018 Democratic gains were “largely driven by voters who voted for Trump in 2016 and voted Democratic in 2018.”
It is no wonder, then, that Pelosi is not the only party leader warning Democrats to be wary of the danger of focusing too much on social and cultural issues in the heat of the primaries. Such counsel also comes from African-American Democrats.
Take Representative Cedric Richmond of Louisiana, who suggested to the Washington Post last week that there should be less attention paid to Biden’s stumble on race: “African-Americans are worried about the safety of their families. They’re worried about jobs. They’re worried about health care, diabetes, cancer, and they’re worried about how to pay for kids’ college.”
Richmond was joined by Representative John Lewis, who said he didn’t think Biden’s remarks were “offensive,” before adding, “During the height of the civil rights movement we worked with people and got to know people that were members of the Klan — people who opposed us, even people who beat us, and arrested us and jailed us.”
The Rev. J.M. Flemming, president of the Greenville NAACP, told the Washington Post:
“I’m not going to let anybody sidetrack folks that I know about who are looking at Biden, when we ought to be looking at the things said by Trump. Nobody is making anybody out to be a perfect person, but what Trump is doing, for me, that’s far worse.”
The concerns of African-Americans, in this view, are substantially the same as the concerns of the millions of white working class voters who remain open to Democratic candidates — or at least they coincide in critically important ways.
The fate of the Democratic Party in 2020 hangs on this premise and on a united resistance to Trump’s malign strategy of divide and conquer.