Current Affairs ... Politics ... Public Policy ...
Like millions of other Americans, I lost a lot of money in the stock market this past week (actually we’ve been losing $$$ over the past 12 months). Luckily, I don’t need the money right now; all of my stock investments are for retirement, and I don’t plan on drawing any of it for at least 10 years. But it still gives me the creeps seeing so many of my nesteggs getting scrambled.
Oh well, let’s try to see the bright side of it all. The American economy was dancing on thin ice for too long. Too many people were getting rich by believing in too many stupid things (e.g., that cheap and plentiful credit and rising real estate prices were here to stay). Finally it all gave way. America will come back from this crash, and will hopefully learn some lessons from it. Hopefully by the time I start my retirement — assuming that I actually get to have a retirement (gotta think positively) — the American economy will be on firm ground, operating with proper capitalization ratios, making reasonable assumptions, being aware of risk in all its implications. Hopefully our economy will become more of a Warren Buffet economy, a “back to fundamentals” economy.
And another good thing — even though I’m worth many, many thousand dollars less right now than I was last week at this time — at least the week closed on a good note. I usually do my food shopping on Friday nights (yea, that’s how exciting my life is these days), and I received a $3 coupon last week for buying some vitamins. Well, even though I don’t have a store discount card (because I don’t like the idea of letting a corporation track my food purchasing habits; I consider that a very private matter), the lady at the register tonight punched in the “store courtesy card” for me, and my coupon was doubled. So I got $6 off my supermarket bill. Jackpot!!!
But seriously, the world certainly is changing; America will soon have a president with some African blood in him. Furthermore both the President and both houses of Congress will be strongly aligned with the Democratic Party; it’s been awhile since we’ve had that. Also, we will soon be in a significant economic recession, and a lot of Americans will be hurting. All but the rich are going to feel it in some way; actually, if Obama keeps his word, they’re going to soon be pinched with more taxes. Government regulation will make a comeback, and labor unions will probably have it a bit easier (although with raging international competition, they will never get back to their glory days of the mid-1960s). In a nutshell, the “Reagan Revolution” is finally coming to an end. The days of fast economic growth with benefits going disproportionately to the rich, and the poor slipping further and further behind, are numbered.
Maybe. The Reagan Revolution went on for over two decades (covering most of my adult life) because a lot of people, including the middle class and the better-off portions of the working class, actually liked it. People enjoy buying things, and that’s what the past generation was all about. Our choices of products and stores and ways to buy things grew and grew (who could have even imagined blackberries and Amazon.com on the night in 1980 when Reagan was elected). Marx was obviously wrong; shopping is the opiate of the masses.
And in the future, if some handsome, well-spoken Republican comes along promising a return to the days of home equity loans and big cars, a whole lot of people will get misty eyed remembering the 90’s and 00’s. The Obama Revolution might well have less time than most of the other “new eras”. Let’s hope that soon-to-be-President Obama uses his time to full advantage, administering as much healing to America as possible before the political circle takes its inevitable turn. A lot of historical responsibility will fall on the shoulders of a young man with such limited political experience (bright though Obama is). I wish him much success in repairing America’s broken economic foundations, in revitalizing America’s education system, in revamping America’s physical infrastructure, in correcting the glaring defects in the medical insurance and Social Security systems, in putting American science back on the cutting edge, in repairing America’s traditional international alliances and building new ones . . . and on and on. So much to do, and most likely, so little time.
And let me offer a brief elegy for Senator John McCain. McCain has much to answer for because of his role in dragging the 2008 Presidential campaign into the muddiest of political mud. And Sarah Palin, oh my. But at bottom, I still think that McCain is a good and honorable man. And before he passes from the headlines and disappears into the deep recesses of university library shelves where men like Wendel Willkie and Adali Stevenson and William Jennings Bryan and Horace Greeley reside, let me remind you that McCain did make an important point, however clumsily. (Had he only found a way to make this point more effectively, I can’t help but wonder if he might have had a chance, despite the terrible legacy his party is now burdened with).
The better political writings of ancient Greece and Rome assert that a government can only work if it has the “buy in” of the people that it governs. And that “buy in” involves elements of sacrifice and self-denial. You can’t have a virtuous government without a virtuous populace. Take one small area of government, one that I have some professional familiarity with — i.e., the criminal justice system. Even the best of police and prosecutors and judges and jails cannot maintain law and order if the populace does not respect and “internalize” the criminal codes in its day-to-day behavior. Law enforcement relies upon 95% voluntary compliance by the public in order to be effective (admittedly, 95 percent is not an exact figure determined by rigorous scientific study; but you get my drift). So does most every other aspect of government, including — and especially — the determination and collection of taxes.
McCain seemed to be saying, however clumsily, that America’s big problem right now is that public virtue isn’t doing very well, and that it somehow needs to be restored. To his credit, he hardly claims this to be a Republican versus Democrat issue. Certainly, years of Republican exhortation that personal greed is good and that all bureaucracy and taxes are bad has chipped away at the sense of “civitas” in our society, just as much as Democratic cynicism about the military did during the Vietnam war days (and also the Democratic willingness to look the other way from badly performing government institutions like welfare).
McCain seemed to be saying that being an American comes with just as many obligations as it does rights and opportunities and pleasures. Everyone needs to give up something, be it money, time, talent, comfort, and even some personal liberty, in order to support the “body public”. And maybe that collective “something” has to be a lot more than it currently is (perhaps one reason why so many foreigners struggle to get into America from Mexico and everywhere else is because the relative COST of being an American is currently very small relative to the ECONOMIC BENEFIT).
But McCain would also say that the government ultimately cannot FORCE virtue by trying to enforce virtuous behavior (and thus his rationale for cutting or at least not raising taxes; and by the same token, Democratic resistance against a military draft, or even a universal national service requirement for young adults). Although some taxes and some force are needed (e.g., in the criminal justice system), ultimately it’s a matter of people’s hearts. It’s a matter of truly buying-into your nation and being willing to give up some things for it.
Barack Obama is going to expand the realm of government over the next four years, and I agree that such action is necessary. But for this to really work, Senator McCain’s point about voluntary citizen virtue and unforced patriotism is also essential. I hope that Obama is willing to pick up the torch that has fallen with McCain (partly because McCain did such a poor job of carrying it — although carry it he did). Obama has become a public sensation; his day in the sun will be short, but I hope that he will use it to remind the public of the need for civic responsibility (and yes, that does include future leaders of investment firms not taking obscene salaries and perks for running their companies and the overall financial system into the ground). Without it, the big government that Obama will help to restore will eventually succumb to some future “revolutionaries”.