Rants and ruminations by a classical liberal with radical Chicano tendencies
A friend and I were discussing the urge to privatize just about everything in Chicago–schools, health care, parking meters, etc. My friend said that free market thinking is evil, but I responded that the sort of privatization we are seeing is not anything close to a free market since the government is intertwined with these deals and competition is pretty much eliminated (especially in Chicago where cronies are privileged). I am no economist, but this privatization buzz does not seem to follow anything I’ve read by Hayek or Friedman. In fact, it feels like a perversion of both free market thinking and socialist/social democratic thinking.
Thanks to the folks at Crooked Timber for putting this argument more clearly and forcefully:
As neoliberals have been unable to convince the public that government should simply stop providing key collective goods, and instead leave them to the market, they have instead opted for intermediate arrangements, such as privatization (but with regulators) and the contracting out of government work…This argument leads directly into a damning (and to me entirely convincing) indictment of the UK government’s privatization and ‘marketization’ of public services from Margaret Thatcher on. These have not created true markets. Instead, they have resulted in a kind of horrid chimera of government and private actor, with no obvious lines of accountability. The UK government turns to the private sector for project financing – but the private sector firm which leases the relevant facility back to the government has control for 20 or 30 years, under a fixed contract. “Long PFI contracts bring in private firms while limiting the role of the market, again demonstrating how the neoliberal policy shift is more about firms than about markets.” Lengthy chains of contracting and subcontracting relations mean that no-one is really accountable. The businesses who win these contracts win because they have a comparative advantage – in winning government contracts.
Note that not only is this hybrid creature just plain strange, the CT folks point out what I think was really bothering me all along, the lack of accountability. No accountability on the government end. No accountability through the market.
So the next time one of your colleagues or opponents is going on and on about “market-based approaches” and “privatization,” politely remind them that these arrangements are neither and call the approach by its proper name: ABOMINATION.
Thanks to the Monkey Cage for posting this fantastic paper by Jacopo Ponticelli and Hans Joachim Voth titled AUSTERITY AND ANARCHY: BUDGET CUTS AND SOCIAL UNREST IN EUROPE, 1919-2009.
The main conclusion is that indebted governments in Europe that implemented recovery measures that appeared to be heavy on austerity, were paid back with civil unrest and riots. While this makes perfect sense, what I found strange is that the actual officials who proposed such measures were NOT punished at the polls. The paper also argues that the media’s fixation on the rioting and looting (sound familiar) didn’t facilitate the rise of protest movements.
Thinking about the folks back in London who are probably more like us than they are like their neighbors on the continent, I wonder if riots and chaos will make it across the pond. Perhaps our media organizations and our politicians are too good at confusing the public about how the ridiculous policies we have been adopting (e.g. the debt ceiling non-deal) will affect them.
Interestingly, the London Riots appear to have been exacerbated by the killing by police of a black man, Mark Duggan, at Tottenham Station (see this funny clip of Darcus Howe telling the BBC that the riots were obviously going to happen in racist, classist Ole England ). Jack Goldstone makes the point here that the riots look creepily like the LA Riots of 1992 when a black man, Rodney King, was beaten by police and riots ensued after the cops went on to be acquitted of any wrongdoing.
Americans are not generally the type to rise up in the Greek fashion, but with London now in flames and our own politicians insisting on balancing the budget on the backs of poor people while enabling the super rich to continue to live tax-free, the tension is palpable.
NewPopulationBomb’s Jack A. Goldstone argues here that the United States is starting to look like France on the eve of its revolution. There will be metaphorical blood on the streets, he says, if the rich don’ t become reasonable about taxes and shared burden.
And what of the consequences of the elites ‘no new taxes’ mantra? The US is about to move into 2012 with four factors coming into view – an unemployment rate over 9%, a trillion-dollar increase in taxes over ten years on ordinary workers when Obama’s social security tax cuts expire (see my previous post), the expiration of long-term unemployment insurance for those out of work for two years, and the continuation of a $42 billion per year tax cuts for the rich if the Bush tax cuts are not allowed to lapse. Just as the French elites could not see that their actions would fuel an extreme populist backlash, so today’s Republicans don’t seem to realize that this combination will likely bring a populist backlash against the rich that will make any prior talk of ‘class warfare’ seem like a weak metaphor.
While I think Goldstone is correct in channeling Alexis de Tocqueville‘s assessment that the French elites “spoke as if ordinary people were deaf and blind to what they were saying,” I think he underestimates the modern rich. As the Koch Brothers and Rupert Murdoch have demonstrated, one can make pro-rich policies look populist by funding groups like the Tea Party and slanting the news media to one’s cause. As for what the future holds, I am starting to think that Orwell–not Tocqueville–had the best insights.
In: African-Americans|crime|economics|education|latinos|Law|Public policy
4 Aug 2011Wow, I bet you never thought you’d hear this spiel from a career prosecutor:
I know that our criminal justice system is broken and that people of color are disproportionately represented as both victims and perpetrators.Nearly half of all homicide victims in the United States are African American; the numbers for Latino victims are just as bleak. And therefore, African Americans and Latinos have an equal stake in what I describe as a smart on crime approach to fixing the system. We need to move beyond the false choice of asking: Are we tough on crime or are we soft on crime? We need to start asking: Are we smart on crime? When we’re smart on crime, we take steps to prevent crime from happening — like keeping our kids in school. When we’re smart on crime, we look beyond the one-size-fits-all solution to crime and punishment. We do more correcting and less collecting of prisoners.
That statement is from California Attorney General, Kamala D. Harris. Well, kudos to her for saying what other attorneys general and state’s attorneys (that means you Anita Alvarez) are usually to afraid to say. Her piece is basically a defense of public investment and redemption rather than a “lets coddle the criminals” rant. Thank goodness that it wasn’t. I’m tired of the false extremes in the criminal justice debate–well, actually, I’m tired of them in pretty much every debate in America these days.
Read the full article here.
In: African-Americans|Asians|economics|housing|immigrants|latinos|Public policy|racism
3 Aug 2011So it turns out that most Blacks, Latinos, and Asians–even the affluent–tend to live in poorer neighborhoods with few Whites. Here are some highlights from US 2010 Study by Brown University:
• As black-white segregation has slowly declined since 1990, blacks have become less isolated from Hispanics and Asians, but their exposure to whites has hardly changed. Affluent blacks have only marginally higher contact with whites than do poor blacks. • Asians and especially Hispanics have become more isolated from whites as their numbers have grown, and they both have markedly lower exposure to whites now than they did in 1990. Income is moderately associated with these patterns for Hispanics (that is, affluent Hispanics experience lower isolation and higher contact with whites). Asians’ level of concentration in Asian neighborhoods, however, is unrelated to income, and exposure to whites is only modestly greater for higher-income Asians. • With only one exception (the most affluent Asians), minorities at every income level live in poorer neighborhoods than do whites with comparable incomes. Disparities are greatest for the lowest income minorities, and they are much sharper for blacks and Hispanics than for Asians. Affluent blacks and Hispanics live in poorer neighborhoods than whites with working class incomes. There is considerable variation in these patterns across metropolitan regions. But in the 50 metros with the largest black populations, there is none where average black exposure to neighborhood poverty is less than 20 percent higher than that of whites, and only two metros where affluent blacks live in neighborhoods that are less poor than those of the average white.
The study goes on to conclude that segregation lowers the quality of life even for affluent minorities:
Residential segregation is not benign. It does not mean only that blacks and Hispanics, Asians and whites live in different neighborhoods with little contact between them. It means that whatever their personal circumstances, black and Hispanic families on average live at a disadvantage and raise their children in communities with fewer resources
I think there is a cultural pressure for many of us to not “sell-out” and leave the neighborhood. For the well-educated, fear of adding to the brain-drain on the community you come from is sometimes reason enough to stay. But, I have never really been one to get angry at someone who made the choice to live in a safer neighborhood with better schools. It’s a personal choice. If you make it, and if the neighborhood you are eyeing doesn’t prevent you from moving there through informal, racist screening processes, then that’s really none of my business. In any case, this report shows that most of us aren’t allowed choosing to live in more affluent, white neighborhoods anyway. Thus, there is no point in lamenting the one Latino or Black family that does.
Read the full report here.
In: angry white men|Chicano|culture|latinos|Orange County|politics|racism
29 Jul 2011The Orange County Register published and debunked a list of top, current conspiracy theories yesterday. Among them was the idea that Mexicans are taking back the American Southwest in order to reclaim it for Aztlán:
LATINOS ‘RECLAIMING’ AZTLAN. Some Latinos in the U.S. embrace a mythical “Aztlan,” roughly defined as the U.S. southwest that was once part of Mexico. Some Chicano activists say they have a right to the land, and conspiracy theorists believe the effort is well underway.
Evidence: The increasing numbers of Latinos in government, new laws that specifically benefit Latinos in the country legally and otherwise. Increasing acceptance of Spanish language and spread of Latino studies classes.
Rebuttal: Aztlan is primarily a symbolic designation, the increase in Latino officials reflects demographic changes, and legal changes are designed to benefit society at large.
Now, I do know a handful of guys who have said they would be up for doing such a thing, but as they are activists from the 1960s, I think they might have a hard time waging war with their bad knees, backs, and other ailments. It might also be hard to get the weed out of their hands. Is America “browning?” Of course, it is–that could be viewed as a reconquista (if you’re FOX news, you see reconquista everywhere!). But I definitely don’t see an independent Aztlán on the horizon.
In: Afro-America|economics|Europe|immigrants|Labor|Latin America|Native America|technology
28 Jul 2011
Matt Yglesias linked a fantastic paper that attempts to shed light on the Great Divergence, that is, when North-North America (the U.S. p’arriba) spiraled into economic progress while Latin-America stagnated.
The paper itself quickly and efficiently dismisses all the usual theoretical suspects. Lazy Latins vs Industrious Anglos? No way, Latin-America grew a lot and stayed pretty stable for a long time. Bad political institutions? Nope, Latin-America was remarkably good about retiring institutions like slavery (Indian and African) and encomiendas. Catholicism? Nope, well, there’s nothing serious in the economic literature at least that rises above prejudice (sorry Weberians and other Protestant work ethic people).
According to the authors of the paper, the real reason for the divergence was that at the beginning of the colonial period, wages in England were already 4 times the WBPL (World Bank Poverty Line) while wages in the Iberian Peninsula were only two times the WBPL. In a nutshell, the USA and Canada (Australia too, BTW) mirrored English wages because in order to attract settlers they had to pay as much or more. Spanish and Portuguese colonies had a much lower bar. That coupled with other unique assets (e.g. proximity of English colonies to the Mother country which allowed for cheaper trans-atlantic trade), the U.S. started off on much better footing with higher wages that allowed colonists to educate their children (human capital accumulation really) which increased innovation and labor saving machinery which led to increased productivity which resulted in even higher wages…Ok, obviously, the progress and prosperity “spiraled” for the North-North Americans.
While it’s a huge leap from colonial economies to today’s economy, I think that one thing is clear: you need good wages–not just any wages–to make a population better off over the long run. This is the argument I have with people in the hood (even activists) who are often ready to settle for any wages because people are desperate. Sure, some job is better than no job in terms of eating dinner, but if we constantly accept crap wages (e.g. Wal-Mart wages), then we will never be at a point where we can develop our human capital like the more prosperous colonists did. We end up settling for the modern world’s version of encomienda and that is positively non-progessive.
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While some people look at cockroaches as disgusting pests, I view them as resilient organisms that predate humans and will likely outlive us as well. People of color, the poor, the downtrodden, and the oppressed, much like cockroaches, are often despised, feared and in some cases have been the objects of extermination.
I started this blog as an attempt to understand the complicated world we live in. Things have changed since the old days of conquest, colonization, and slavery. Anonymous living, consumerism, and mass media have made it difficult to identify the forces that make modern-day oppression possible. Thus, posts here tend to focus on corruption, media, bureaucracy, ethics, economics, law, human rights, etc...in short, I try to take a second-order inquiry into assumptions and systems that some of us take for granted. I also take time to challenge stereotypes that function to place us in a box. Occasionally, I just rant.
Thank your for reading!