Thursday, July 16, 2009

Our Selective Ideological Memories

I’m sure most people recognize this scenario:

New president, following an increasingly unpopular regime, is elected in a major electoral referendum as the populous wants a directional change for the country. Quickly, the new administration moves to reverse the course of the past several years and completely change the federal government’s focus. A massive stimulus package is passed within the first 100 days. The government steps in to dismantle and remake a sector of the transportation industry, to the hue and cry of a segment of the population, and it brings claims of government overreach. The President goes on the offensive to reclaim America’s prestige in the world and undoing the damage done by the previous administration, revamping relationships with both allies and enemies, and reclaiming the mantle of world leadership. The President has strong weapons: he is charismatic, a world-class orator with an easy smile and a disarming personality. Even his detractors can’t help but find him likeable, though they strongly disagree with his policies.

But…after a year and alarmingly mounting debts, the popular tide begins to turn. Congress, formerly seeming to be just a pawn doing the administration’s bidding, now has its eye on the midterm elections, and with the mood of the country casting doubt begins to buck the administration. Reforms that the President deems vital to finishing the job that he started are thwarted by Congress, usually with the excuse that the country’s deficits are already too big, and both the House and Senate routinely block further changes to any existing programs. Unemployment runs over 10% for 9 months, and that’s only among those who haven’t given up looking for work. Predictably, the midterm elections are a bloodbath for the President’s party, rolling back all of the gains made on his coattails in his election year.

Surprisingly to some, this scenario isn’t a hypothetical about Obama, but is a recounting of Reagan’s first two years in office.

If you’re like most Americans, and especially most Republicans, the details of the days from January 1981 to December 1982 are largely forgotten; only the ultimate result of the Reagan years are in most people’s memory banks.

What Reagan did isn’t really that different from what Obama is doing. Reagan’s version of the Recovery Act was to cut the crushing income taxes the country was under across the board (the top tax rate was initially cut from 70% to 50%, while the middle class also received huge tax relief), but the net result was the same: money went to the economic stimulus at the expense of the federal government’s coffers, meaning that the government had a huge budget shortfall. Reagan fired the PATCO workers in what was deemed an unprecedented federal intervention and abuse of power (and arguably putting the air transportation industry’s safety in jeopardy for a time period). Even with the decreased federal coffers, Reagan felt it essential to ratchet up the country’s spending on defense in an attempt to outspend the Soviet Union and ultimately end the Cold War, but at a price that was astronomical (and with no guarantee of success at the time).

The point is this: remember what actually transpired during the Reagan years, and if you don’t remember, do a little research. This isn’t just about the ideological debate of larger government vs. smaller government, but about economic reality and what is best for the needs of the country. What ailed the country in 1980 was overregulation of business and high federal taxes. That can hardly be argued to be the case now, yet we’re in just as severe of an economic crisis. What Obama proposes is essentially the same formula: deliver a huge injection of money into the economy, which drives up the nation’s debt; make a sweeping investment in parts of the economy seen as necessary for long-term survival, which drives the deficit up further still, all in the expectation that the changes will be cheaper in the long run than doing nothing and will ultimately bring new economic growth.

I’m not going to take up space belaboring the obvious differences; I find the similarities more striking. It’s simply ironic that many of the same people who loved Reagan’s solution decry Obama’s now, even though the consequences of Reagan’s policies are exactly what they claim to fear today. The only difference is a belief that what methodology worked then is the same methodology that should be applied now, even though the details and problems have changed.

A little ideological agnosticism and a bit more pragmatism might do a large part of the country a great deal of good.

Wednesday, March 04, 2009

Centrist Dude Manifesto

Because I’ve heard from both sides about how wacky I’ve been in the past few months (note my blurb that resides right above this posting) I think it’s time for me to state for everyone what I do and do not believe. I am neither a socialist nor a monarchist, neither a fascist or a communist, and certainly neither a Democrat or a Republican. So it’s time for a personal manifesto of my political beliefs --

One of my fiercest fights has always been for personal liberty, and the biggest concern being laws that destroy it, because once taken away personal liberty never returns. Gay marriage laws, seat belt laws, helmet laws…these might please special interests but they are bad laws. The government is supposed to protect me from others, not from myself.

The second soapbox I’ve been on all of my adult life and much of my teenage years is the use of energy and our ostrich-like approach. We saw that OPEC could bring us to our knees in the early 70s. What have we learned? Apparently zero. Driving a big-ass SUV that gets 12mpg in the city is wasteful, destructive, irresponsible, and quite frankly feeds the machine abroad. And don’t tell me “that’s all I can fit in comfortably” or “but I can haul so much.” Sit in my Matrix and tell my 6’3” frame that you don’t have room. Watch me bring home a tree. I get 30mpg. We had a station wagon that got 20-25mpg. We brought 3 trees home in it once.

The main point is that we have had ample time to wean ourselves off of foreign oil and we’ve neither had the will nor the foresight to do it. This doesn’t even mention the damage to the planet. Which leads me to:

Global warming/climate change, whatever you want to call it, it’s a reality. Most people that rail against the concept are invested in maintaing the status quo, or they simply don’t want to take any personal responsibility to change their habits. Note that all of the major scientific communities in the world are alarmed by climate change and are in general agreement with the causes and changes that are happening. Advocacy scientists don’t count, folks; if Exxon paid for the research and it contradicts an independent study who do you think is likely to be telling the truth? We're hearing from people who have invested their lives in the pursuit of scientific truth and have a hell of a lot of schooling. Think of the scientists you know; they're an odd bunch but motivated by the search for truth on an almost religious level. I think they know what they’re talking about, and we should listen to them.

I am all for fiscal responsibility. Way for it. And one of the things I always expected the Republicans to do would be to watch my nation’s pocketbook, maybe even too much. ("So you’ve been out of work and you can’t feed your family? Too bad, maggot!") Yet, the Neocons believed only in tax cuts; they never met a spending bill they didn’t like, domestic or foreign. Unless it was against their religious beliefs, of course. And you know what? The party faithful bought it. So long as “their guy” was spending the money, deficits didn’t matter (remember Dick Cheney saying that exact quote?) and it all went to things the faithful liked…like faith-based initiatives, a two-front war, and “No Child Left Behind.” Ok, NCLB became an unfunded mandate that bankrupted the education budget of several states, but you get the point.

Conversely, the typical 70s Democrat who stereotypically couldn’t accept personal responsibility for any group….not my people, either.

To further this, I believe in the Ayn Rand concept of “personal greed is good” but only to a point. There are unscrupulous people in the world who aren’t in it for their own gain by the rules, but rather will lie, cheat, steal and seriously damage others. Pure capitalism is fine if we all are on the same page, but to not recognize that oversight is required (like referees in sporting events) is just silly. Yes, we’ve had too much regulation in the past. Usually it’s regulation about the wrong things for the wrong reasons. But we’ve seen basic regulations removed to the point to where it’s almost every person for themselves and Caveat Emptor seems like a quaint little poem.

Regulation is not a dirty word. It is often the only protection between you and Bernard Madoff, the difference between your portfolio thriving and an abnormally large investment in Enron, between your insurance company deciding to operate as a hedge fund or arbitrarily denying your life-saving surgery. It doesn’t take a genius to know when regulation is silly (all fire extinguishers must be between 3’8” and 4’2” from the floor or you get fined) and when the regulations are common sense. Right now, common sense has been zoned out. We’re way past the pendulum point.

The federal government is too large, too bloated, and too bureaucratic, but that doesn’t mean that it has no role. It’s the sledgehammer in the tool arsenal. You pull it out sparingly, but when you do pull it out don’t be afraid to whack away, and understand that there’s a lot of residual damage and the edges aren’t nice and neat. That’s because it’s a sledgehammer, not a chisel. And I do believe that now is the time to use the sledgehammer, because the time it will take to recover and the damage that will happen if we don’t re-open the faucet is greater than the damage we’ll wreak by banging open the wall to unstop the leak & get the water flowing again.

The Supreme Court is there for a reason, and it’s not to passively sit by. They are to render judgements when there is no clear direction by the law. That’s why the issue has come through the appellate courts in the first place. This does mean that sometimes they will, in effect, create law by creating precedent rulings. This whole “activist judges argument” quite frankly is pushed by people who do not apparently understand what the role of the judiciary is at its most basic level.

Both parties find a messiah every so often, then don’t really understand his (and someday her) message in the context of the time. So Democrats worship FDR and take his emergency save-the-country programs and turn them into public policy for 30 years. Republicans worship Reagan and take his lower taxes and keep-government-out-of-your-lives message past the point of relevancy. This is wrong, but this will happen again. That doesn’t mean that FDR or Reagan were wrong. They were right for their time, and it's not their fault that they eventually begat LBJ and GWB. (Maybe the problem is Texas presidents. But that’s not my point.)

Our system is flawed, like all systems and people. That doesn’t mean it’s the wrong system nor that the world is coming to an end. However, blind following of ideologies is cute but childish. No ideology covers every contingency, and sometimes you have to take drastic measures to re-right the train. We all agree that murder is wrong, but we can all come up with a scenario that justifies killing someone. So why can’t we do the same with our governmental system? Why can neither side see that there really are evil people in the world across the spectrum? To the left I say: that person might not be a misunderstood pauper, they might just be a terrorist. To the right I say: that investment banker was actually exploiting and circumventing the system with no regard for anyone else and that makes him a criminal. It’s all the same in that they’re still evil. Neither Ayn Rand nor Ghandi have THE answer. Nor does anyone else. Ideology as a guide with a strong dose of pragmatism as a rudder is a much more effective way to enter into any situation.

I’ve held roughly these same beliefs for the last 30 years or so. If I'm guilty of anything it's not having a singular ideology and someone else to preach it to me. Maybe you can understand how I have come to the same conclusions as President Obama. We need to infuse capital into the system, but not in handouts. Rather, they should be investments in our future. This means investing in our educational system like we did in the 50s, rebuilding our infrastructure to give the country a competitive advantage (like that wacky liberal Eisenhower), overhauling our energy economy to give us independence over our own lives again AND to build a brand-new economy….just like that ideologue FDR electrifying the rural Midwest and crazy Kennedy with his silly space program. Last time I looked, all of those paid major dividends.

And for the record, much of this crisis was caused by arrogant white-collar executives who, now that they’ve seriously screwed up, STILL don’t want to give up power.

Other things that have nothing to do with “manifesto”, but are instructive as to where I lie on the political spectrum:

Best President in my lifetime? Ronald Reagan. He was the right man for the time. No, his administration didn’t cut spending, which was a cornerstone of his entire smaller government argument, and would have solidified him as maybe the 2nd best President behind Lincoln or 3rd behind FDR. Unfortunately, that gave Democrats fodder for years to poke holes in his administration, and on the other side led Dick Cheney to famously and regrettably utter the phrase “Deficits don’t really matter.”

Worst President in my lifetime? Well, GWB has come remarkably close, but it’s probably still Jimmy Carter. He neither inspired confidence nor had good policy. He was simply a reaction to Nixon, which turned out to be horrific. Reflection over the next few years may make me change that, because Bush has sent us on a path that might prove to be more disastrous than we know. For the record, both are admirable human beings. That doesn’t make them good Presidents. And no, regardless of how quickly we pull out of the economic crisis, history will not be kind to W.

2nd best? Eek. My choices are LBJ, Nixon, Ford, GHB, Clinton. Sadly, I have to say that it’s a toss-up between Clinton & Nixon, with both having serious flaws. You might see a glimpse of why I have a bit more faith in Obama.

If you are only listening to pundits and news sources that believe as you do, and you’re only soliciting opinions from people in your socioeconomic strata, regardless of where that strata lies, then you’re part of the problem of divisiveness in this country. You’re not educating yourself, and you’re not helping make things better. All you’ve done is join a club.

Nancy Pelosi and John Boehner deserve each other. Sadly, we deserve neither of them. West Chester OH and San Francisco should both be ashamed and vote these two divisive, petty, vindictive losers out. But given the polarized and ideologically blind demographics of both communities, that probably won’t happen. And that, too, is sad.

My summation is this: I believe in capitalism and democracy. I also recognize that there are times that both have failings. That doesn’t mean that we abandon either, but we do need to recognize that both need tweaking from time to time, and maybe more importantly, sometimes things get so out of control that you need to temporarily throw the book out.

We must make America stronger by being more independent (e.g., controlling our own energy resources) but by also understanding that we cannot be an island. The world is looking to us for leadership, and if we create a void someone WILL come to fill it, and it might not be a someone we want to see. With leadership comes great responsibility, so any actions we take had best be considered carefully, and not just shot from the hip. Unless, of course, the situation dictates that we don’t have time to deliberate.

In other words, give me the smartest guy in the room who’s got a definite direction. I don’t give a flying you-know-what which side of the aisle he comes from.