Thursday, January 10, 2013

Embracing a bolder vision for our economy

David Frum, who worked for George W. Bush and authored Why Romney Lost, tweeted that the “’real fiscal cliff story” is “how the entire American political class convinced itself that unemployment is no longer worth thinking about.”

Indeed. Although unemployment remains stuck at 7.8% (a far larger percentage is underemployed), and most economists agree that unemployment and lack of purchasing power are the biggest threats to healthy economic growth, there appears to be no stomach for bold visions to put people to work. While the nation’s bridges, roads, sewer systems, gas lines, and power grids are decaying or suffering from severe overload, millions of people are unable to find work. 

Many who do have jobs struggle to support their families on paychecks that have not kept pace with living costs; and workers who are earning good wages now could lose ground as a result of increasing attacks on unions in several states. Since 2009, the federal minimum wage has stood at $7.25. The recent congressional deal reinstated the payroll tax which will take a bite out of even this meager wage.

According to a report last year by the National Low Income Housing Coalition, a full-time worker must earn $18.25 per hour in order to afford rent and utilities on a modest two-bedroom unit without spending more than 30% of income on housing costs. By contrast, the American renter earns, on average, just $14.15 per hour.

Congress has redefined the middle class as individuals earning up to $400,000 – a laughable assumption for the vast majority of Americans. Median household income is $46,000. But we should not be surprised that elected officials are so out of touch with everyday life since 47 percent of House and Senate members are millionaires (67 percent of the Senate).

Although the U.S. prides itself as a classless society, we are becoming stratified according to wealth and are increasingly less mobile than other developed nations. About 62 percent of Americans raised in the top fifth of incomes stay in the top two-fifths, according to research by the Economic Mobility Project of the Pew Charitable Trusts; and 65 percent born in the bottom fifth stay in the bottom two-fifths.

In September 2010, former Labor Secretary Robert Reich offered some insights into the challenge of recovering from the recession. The real problem, he wrote, has to do with the structure of the economy, not the business cycle. The crisis began decades ago when technology made it cheaper for American employers to use low-wage labor abroad or labor-replacing software here at home than to continue paying the typical worker a middle-class wage. The economy kept growing but hourly wages flattened and the median male worker earns less today, adjusted for inflation, than he did 30 years ago.
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Reich continued, “American families kept spending as if their incomes were keeping pace with overall economic growth. And their spending fueled continued growth. How did families manage this trick? First, women streamed into the paid work force. By the late 1990s, more than 60 percent of mothers with young children worked outside the home (in 1966, only 24 percent did).
 

“Second, everyone put in more hours. What families didn’t receive in wage increases they made up for in work increases. By the mid-2000s, the typical male worker was putting in roughly 100 hours more each year than two decades before, and the typical female worker about 200 hours more.
 

“When American families couldn’t squeeze any more income out of these two coping mechanisms, they embarked on a third: going ever deeper into debt. This seemed painless — as long as home prices were soaring. From 2002 to 2007, American households extracted $2.3 trillion from their homes.
 

“Eventually, of course, the debt bubble burst — and with it, the last coping mechanism. Now we’re left to deal with the underlying problem that we’ve avoided for decades.”
 

Some observers say that Obama’s Affordable Health Care plan is important, not only because it gives access to health care to millions who are currently uninsured, but because it is may help to reduce the wealth gap. Eduardo Porter wrote in the New York Times on September 25 that the plan, “which levies new taxes on the wealthy to expand access to health care for the near poor, seems on track to become the biggest increase in government redistribution since the Johnson administration.” The Tax Foundation finds that Obamacare will raise taxes by $52,000 on average for families among the top 1 percent of earners in order to finance $250 to $2,000 worth of health benefits for the poorest half of American families by 2016.
 

But the U.S. must embrace a fundamental restructuring of our economy. Continuing the current race to the bottom in wages is a recipe for becoming a third-rate society. Our political and business leaders as well as every other American must invest in a vision of a high skills, high wage economy. This will mean heavy investment in education at all levels, a vast rebuilding of infrastructure, and a commitment to a fair day’s pay for a fair day’s work.

This will require bold, far-sighted leadership but it should not be a partisan issue. The best of conservative and liberal values are needed. Such a vision would do much to restore trust in America’s social contract. 

Monday, December 17, 2012

Building peace at the kitchen table

When Hillary Clinton visited Northern Ireland recently she told her hosts: “You are the ones who reminded the world that while a peace deal may be signed at a negotiating table, peace itself takes life at the kitchen table. It must be nurtured in the hearts of people, in the way they live their daily lives and treat their fellow citizens, in the lessons they teach their children.”

My father-in-law, the playwright Alan Thornhill, chose to begin each scene of his industrial drama, The Forgotten Factor, at the breakfast table. A bitter management-labor dispute is resolved as honest conversation takes place within and between the families.

Most of the violence today is perpetrated by young men. Women, who often hold families together, are in a key position either to reinforce grievances, fears, or stereotypes by the stories they tell their children or to instill values of compassion, selflessness, and forgiveness in the next generation. That is why projects like the Creators of Peace movement, which is catching on in many parts of the world, are so important. 

When our three sons were growing up, my wife insisted on a home cooked meal every night and everyone was expected to sit at the table. I can’t say that we always had profound discussions but perhaps the daily ritual had some civilizing influence. At any rate, Susan is gratified that all three sons have become keenly interested in cooking!

It’s no accident that the kitchen is often the gathering point in a home, the place where people feel most comfortable talking. And sharing a meal is often the first step to a new relationship. Our early race relations work in Richmond involved pot-luck dinners as people opened their homes to people of different races.

For many people who visit the Initiatives of Change conference center in Caux, Switzerland, the most memorable moments are not the speeches on the platform but the conversations in the kitchen where delegates prepare meals for 300 or more with people they have never met before. Alan Thornhill, an Englishman, found himself chopping vegetables with an Argentinean at a time when their two countries were at war in the Falklands. They had no common language but a friendship was formed. 

I vividly remember sitting at dinner in Caux with Les Denison, a former communist, and the exiled King and Queen of Romania. We were served coffee by Archie Mackenzie, a former British ambassador, and Cardinal Köning of Vienna. Les laughed and said, “If I told my friends about this they would never believe me!”

Peace conferences, diplomacy and conflict resolution play important roles. But real peace is born and nurtured in our homes, around the kitchen table.   

Tuesday, December 4, 2012

The need to be acknowledged, accepted, and respected

Steven Spielberg’s masterful film, Lincoln, comes at a timely moment for America. Daniel Day Lewis’ powerful and nuanced portrayal of the president’s combination of courage, compassion, realism, humor and faith is a challenge to Washington today.

The narrative focuses on the struggle to pass the 13th amendment that ended slavery. Spielberg skillfully avoids stereotyping. He respects and challenges his audience by avoiding simplistic or stereotypical narrative and tells history in all its complexity and ambiguity.

From the opening scene of an “honest dialogue” between the president and two black soldiers, the film affirms the agency of African Americans in fighting for their liberty and their rightful place as full citizens. We also are reminded that racist thinking was deeply ingrained throughout the country. Many Democrats in northern states voted against the amendment.  

A fascinating aspect of the story was the arm twisting and patronage needed to assure passage of the amendment. Lincoln was not above getting his hands dirty for a great cause.

I found it impossible not to think about the deep divisions in America’s political life today. In the aftermath of Obama’s electoral victory, much has been made of the overwhelming dominance of Republicans in former Confederate states. But as many white males in Ohio, Indiana, and Pennsylvania voted for Romney as did in the South.

Contrary to common media assumptions, the South includes large numbers of liberals as well as conservatives. Not all conservative Republicans are racist and not all liberal Democrats are as enlightened as they like to think.

While some state governments may pursue regressive policies, the day-to-day reality at the community level is often quite different. Many observers have noted that race relations have progressed further in southern states than in the rest of the country. A recent story in the New York Times about three small towns in the Mississippi Delta provides a good illustration.

The three communities in question lie at the heart of a region known for racist brutality and civil rights struggles. Yet, “…beneath the easy assumptions about racial animosity in the South, a different ethos prevails. The races interact daily in these small towns. Despite the oppressive Jim Crow system of the past, people know one another intimately. Trust, it turns out, trumps race. That doesn’t mean racial tension doesn’t exist. But there’s a capacity to look beyond it, born of lifelong intimate contact, that’s rarely found in larger cities.”

Lincoln understood the basic need in every human being to be acknowledged, accepted and respected. When these needs are met, other things may become possible – whether in Mississippi or in Washington, DC. As the writer notes, “personal relationships can supersede race in a highly partisan time, when black and white too often become proxies for left and right.”

Sunday, November 11, 2012

Needed: a few courageous men and women

We were sitting over dinner in our home with Rajmohan Gandhi (visiting Richmond to keynote our annual Metropolitan Richmond Day forum), two African American neighbors of thirty years, and several young IofC staffers. The conversation naturally turned to the presidential election. 

Some years ago our black neighbors chose to join a nearly all-white mainline church. They reasoned that since race is a human construct, “you can’t talk about a black church or a white church.” They both became respected elders and served on the presbytery. They encouraged the church’s outreach to the poorer sections of Richmond and supported the church’s music minister in launching the city’s first multiracial chorus.  


Yet, the church is solidly conservative and many members are Republicans. In the run-up to the elections, conversation became difficult, even with those to whom they had become personally very close.   

“How can you vote for a party that disrespects me?” our neighbor asked a white friend. The response was awkward: “We love you but …..”  

The widespread disconnect between personal faith and public policy became a topic of discussion around our dinner table. I was reminded of an observation by a local business leader with a passion for early childhood education that Americans send millions of dollars to help survivors of tsunamis, “but we have a social tsunami right here.”

White evangelicals were genuinely shocked to discover that their strident opposition to abortion and gay marriage did not result in support among the vast majority of minorities, young voters and women. Many saw the GOP platform as being extreme and a threat on a wide range of issues from immigration to climate change and economic fairness. They felt insulted by many of the public statements during the campaign.  

Not one leading Republican had the guts to stand up against the outrageous and racially charged allegations that the president was not US born. It is inconceivable that such allegations would have been leveled at a white candidate. 

Not one leading evangelical went out of his or her way to correct the astonishing belief among a majority of Republicans that Obama was either a Muslim or at least not a real Christian.

It was tragic to see Billy Graham lend his prestige to the dubious claims that God favored one side in the election. It was far cry from the Graham of 1993 who wrote in Christianity Today that “racial and ethnic hostility is the foremost social problem facing our world today.” (William Parnell wrote in the same issue that “a first step is the sincere repentance by white evangelicals.”)   

Sadly, the Republican candidate did not express outrage that a party with a proud history of ending slavery and supporting civil rights legislation would blatantly attempt to suppress black and Latino votes.

I am a registered Democrat but this is not a partisan blog. I believe strongly in the need for a healthy two-party, or multi-party democracy. I also respect the deeply held convictions of many conservatives on difficult social questions as well as on a range of economic issues. Few can doubt that without a renewed commitment to fundamental values of integrity and responsibility and stronger family units no amount of government intervention will lift communities out of poverty. Nor should liberals make the mistake of assuming that all conservatives or white evangelicals are monolithic in their views. Many are deeply committed to social justice.


Speaking to a diverse Richmond audience the day after the dinner conversation, Gandhi quoted Martin Luther King in his "Letter from a Birmingham Jail" in which he spoke of the Black quest for civil rights in these terms.


[W]hen these disinherited children of God sat down at lunch counters they were in reality standing up for what is best in the American dream, and for the most sacred values in our Judeo-Christian heritage.

“Standing up for dignity and equality is at the core of the American Dream, King was saying. And the lunch counters he was speaking of have a direct meaning today when poverty is a sharp reality for a large number of Americans.”

Who are the Republicans who will call out the best in the party’s tradition to meet the challenge of a new America?

Our dinner group noted the attempt by the militant left to control the British trade union movement in the 1960s, 70s and 80s. It led to massive industrial disputes in key industries and deeply wounded the economy. 

An important factor in turning the tide was a new willingness by moderate union leaders to take responsibility and stand up for their convictions in the face of intimidation. This in turn helped to change the direction of the Labor Party, making the leadership of a Tony Blair possible.

Throughout those decades, Initiative of Change was engaged in a sustained effort to support new thinking and courageous leadership in the labor movement. 
 

Some similar action by Republican moderates is needed now in the U.S. for a party that has been hijacked by extreme and irrational forces and a Tea Party movement which major moneyed interests are cynically supporting and manipulating for their own benefit.

The Richmond Times-Dispatch (hardly a bastion of liberal thought) editorialized, “The future belongs to the party best able to cross the ethnic and gender lines. It does not rest with a movement personified by the snarling visage of Rush Limbaugh.” But as New York Times columnist Ross Douthat writes, “the temptation of the party’s elite will be to fasten on the demographic explanation because playing identity politics seems less painful that overhauling the Republican economic message.”

The country awaits a few good men and women with the courage to stand up, reclaim their party and return it to its true values.  
  

Tuesday, November 6, 2012

Notes to the occupant of the White House

By the time most of you read this the United States will have chosen the occupant of the White House for the next four years. Half the country will be pleased; the other half deeply disappointed. But everyone will be glad not to see another political ad for a long time!

Whether Democrat or Republican, the president will be confronted with daunting and unavoidable challenges and choices. And he will have to find a way to bridge partisan divides to address any of them. 

Hurricane Sandy brutally exposed the vulnerability of a city that is the commercial heart of this country. Other coastal cities are also at risk. The president will have to face up to the implications of increasingly extreme weather patterns, whatever their cause. Doing nothing and hoping for the best is not an option.

Much of our infrastructure from bridges to power grids to gas lines is decaying or unable to meet the needs of the future. With interest rates at record lows, now is the time to act. The longer we wait the more costly the rebuilding will be.

The economy will probably continue to improve and millions of jobs will be created whoever is in the White House. But the underlying structural problem is lack of workforce readiness for the global economy. And millions of people who are working simply do not earn enough to make ends meet. We need to develop a high skill, high wage economy. That means major investment in education on a level we have not seen in decades.

We have an aging population. Ten thousand people reach retirement every day. Immigration is helping to mitigate the problem. But our president will need to have the courage to tell older Americans the truth about changes that are needed in Social Security and Medicare if we are to maintain a viable program for the next generation and not bankrupt the country.

Overseas, our president can stand firm for our values while also affirming that it is a mark of a nation’s strength, not weakness, to admit mistakes. Donald Shriver’s Honest Patriots: Loving a Country Enough to Remember its Misdeeds should be studied by every American political leader.

On the eve of this election, I re-read A Call to Community that was launched at the National Press Club in 1996 by Initiatives of Change and its partners with the support of Democrat and Republican leaders. Its concluding lines are just as relevant today: 
 

To build this new American community, we must empower individuals to take charge of their lives and take care of their communities…This approach calls us to a new concept of partnership and responsibility. It means:
  • Listening carefully and respectfully to each other and to the whole community
  • Bringing people together, not in confrontation but in trust, to tackle urgent needs
  • Searching for solutions, focusing on what is right rather than who is right
  • Building lasting relationships outside our comfort zone
  • Honoring each person, appealing to the best qualities in everyone, and refusing to stereotype
  • Holding ourselves, communities and institutions accountable where change is needed
  • Recognizing that the energy for fundamental change requires a moral and spiritual transformation in the human spirit
Together, we will share our lives and the resources God has given us to make America a community of hope, security and opportunity for all.