Capitalism is always creating winners and losers. I had no idea growing up that I needed to work in the global economy, but I am glad that I did. Although I just met a retired fire chief who has a more secure retirement than I do and he certainly did not work in the global economy.
But I digress.
Within the U.S., the people enjoying economic advantage now generally work in either the global economy or technology. The people whose jobs have moved overseas or been eliminated by technology have lost hope. Those who have little, perform poorly in schools (there are many reasons for that centered on domestic home situations), perceive that they are the target of police, have little hope. Within the inner city there is the allure of drug cash flow and the attractive (to the young within the inner city) life style that it brings. There is little focus on the violence it promotes and the risks that come with it.
But the commonality between the Tea Party and the rioting youth everywhere is the lack of hope that the economy will deliver something good for them. Trickle down economics doesn't work any more because capital is in the global economy and flows overseas where the demand for capital is higher and offering higher risk and returns. There is inadequate demand within most of the G10 and ample supply so marginal capital has little reason to stay in the U.S. promoting jobs.
I believe most intelligent members of the GOP understand this but pander the party line to insure that the rich keep giving them campaign contributions with the goal of reducing the tax burden on the rich. But this doesn't help the Tea Party or inner city youth who lack hope.
This is where think tanks should be useful. I should be reading thought pieces in The New Republic about how we can encourage manufacturing to relocated back to the U.S. now that labor rates are moving closer together, but I don't. I know education is important but there is no question that schools in rural or inner cities are not as good as they are in suburbia or smaller cities. And I am not sure that spending more money on those schools is the answer. Attending college is important, but in addition to being inadequately prepared for college, These lower income youth face the specter of too much debt upon graduation and uncertainly on ability to repay said debt.
I don't have an answer for this lack of hope. I just wish I was reading some thoughtful ideas that I could consider as policies I could support.
A couple of thoughts... there is nothing - not one thing - that prevents an inner city youth from breaking out of the cycle of poverty and violence if he or she is willing to work for it. Decades of spending billions and billions of dollars on anti-poverty programs is NOT the answer. It hasn't worked. Why would more spending work? Finally, manufacturing jobs were driven overseas by the greedy demands of union bosses. That is irrefutable.
ReplyDeleteIf greedy union bosses were the source of all globalization trends in the U.S., why is it that manufacturing in right to work states has been in free fall also?
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