In the Prospect, David Dayen explains how deficit-witch-hunting and hubris paved the way for Brexit. particularly David Cameron and the Tories’ “general belief in expansionary austerity, that you could cut your way to prosperity. For those that don’t recall, this led to the brink of a triple-dip recession, and terrible growth numbers for years and years…What Leave offers, a toxic stew of isolation and racism, isn’t any good either. But when elites spend this long doing nothing for large swathes of the population, they’re willing to listen to anyone with a different idea.”
Since the UK’s faceplant last week, there’s been some talk (and. for some, wishful thinking) that Brexit is the prelude to Trump, fact-free appeals and all, and lord knows we spent far too much time of late playing the austerity game also. But I’ll stand by my “nope, not gonna happen” prediction here: The UK electorate is 90% white, America’s is one-third non-white — That’s a big difference, and the same sorts of nativist appeals just aren’t going to play here anymore — which I am very thankful for.
Still, Brexit is another sterling example of how, when people are justifiably angry about being screwed over, many of them may not vote in their best interests. And it’s emblematic of one of the more insightful comments I’ve heard recently about 2016 (and unfortunately I can’t figure out where I first saw it): When you have Latin American levels of inequality, you’ll end up with Latin American politics.
As making the rounds of late, a devastating graph of rising income inequality in America, “post-trickle-down”. “This isn’t a totally new story. But it is a vivid and visceral illustration of what we’ve basically known to be true for a while.”
Along the same lines, Mother Jones is posting a new chart on income inequality every day this week. “In the past few years, we’ve heard a lot about overtaxed ‘job creators’ and freeloading ‘takers.’ But consider this: As the income rates for the wealthiest have plunged, their incomes have shot up.”
If it’s any consolation, presumptive 45th president Hillary Clinton has recently “talked to friends and donors in business about how to tackle income inequality without alienating businesses or castigating the wealthy.” Er…sorry, that’s not going to get it done.
Wonkblog’s Matt O’Brien briefly surveys the downward pressure on our sinking middle class. “[I]t’s still a heckuva lot better than households in the bottom 25 percent, whose wealth never grew during the good times, and then plunged 60 percent during the bad ones. That’s because, for both the middle and working classes, real wages have been stagnant the past 30 years, and housing equity has taken a nosedive.”
In his recent major encyclical, Evangelii Gaudium, Pope Francis calls out the obvious shenanigans that is trickle-down economics, and has some choice words for the financial sector:
“How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points?” “This imbalance is the result of ideologies which defend the absolute autonomy of the marketplace and financial speculation…To all this we can add widespread corruption and self-serving tax evasion, which have taken on worldwide dimensions. The thirst for power and possessions knows no limits. In this system, which tends to devour everything which stands in the way of increased profits, whatever is fragile, like the environment, is defenseless before the interests of a deified market, which become the only rule.”
I already sung the praises of this Pope a few months ago, but it can’t be said enough: this Holy Father is such a breath of fresh air. His recent courage in this regard even encouraged our President to make his own quite-good speech about income inequality last week: “So let me repeat: The combined trends of increased inequality and decreasing mobility pose a fundamental threat to the American Dream, our way of life, and what we stand for around the globe.”
Unfortunately — like Obama’s Osowatomie speech in 2011 and his election night speech in 2012 — this seems to be just another example of Obama’s rhetorical tourism on the progressive front. He’s talked a good game — on the occasions when he’s not hippie-punching or parroting Third Way — for close to five years now. But where’s the action to back this rhetoric up? After years of his touting grand bargains and deficit hysteria and allowing sequestration, and looking at the emerging budget deal, I’m not holding my breath. Whatever happens the next three years, it’s already past clear that the tremendous, once-in-a-generation opportunity granted to Obama in 2008 to effect real and positive change has, unfortunately, been wasted.
“[W]ages and salaries now make up the lowest share of the nation’s gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960’s.” An examination of the economy by the NYT reveals the bitter fruit of Dubyanomics for 90% of the nation: “At the very top of the income spectrum, many workers have continued to receive raises that outpace inflation, and the gains have been large enough to keep average income and consumer spending rising…[but e]ven for workers at the 90th percentile of earners — making about $80,000 a year — inflation has outpaced their pay increases over the last three years, according to the Labor Department.“