Income and Wealth Inequality & The Need for a New National Narrative

That there is serious wealth and income inequality in the U.S. is beyond dispute. Most of the nation’s private wealth is held by a relatively small percent of the population. Super salaries of top executives are hundreds of times greater than the bulk of their employees. Incomes adjusted for inflation have stagnated for the last thirty years, except for the top tier. The middle class has been collapsing since then: some have become richer, but most have fallen behind, or struggle to stay middle class. Opportunities for upward mobility have decreased. The old expectation that one would earn more than one’s parents did at the same age has been reversed. You can look the data up for yourself, and I commend as a reliable summary the Peterson Institute for International Economics report, “How to fix economic inequality.” (piie.com)

Whether these inequities are a problem is disputed. The post war belief that hard work and a little luck is a surefire ticket to the middle class remains firmly embedded in the American psyche. If there’s a problem it’s that too many are unwilling to work hard. They’re lazy, entitled, willing to be dependent on others. A hard core of some at the top believe democracy controlled by oligarchs, with the working masses as machinery producing wealth for them, is the way the nation should work. Many in the lower and middle classes cling to the illusion that things are getting better, lower incomes are finally rising again. (My printed draft had a graph depicting income growth by quartile. Apparently WordPress doesn’t like graphs. If you want to see it, check out The Atlanta Fed Wage Growth Tracker)

They are objections deeply entrenched in nearly half the voting public who have been sold a steady diet of right wing individualism as the only true American Way since the Reagan era. The ideal of individual responsibility isn’t wrong, but it becomes destructive when it denies collective responsibility for the greater good, and undermines its own best interests by ignoring systems intentionally designed to tilt the economic playing field toward the wealthiest.

The Peterson report suggested a set of policy changes to help restore balance to the system, and open more reliable pathways to a large, strong middle class. They would require strong federal leadership, cooperation among the states, more substantial public investment, and revisions in the tax code. Precisely what conservatives fear, yet given the chance, precisely what would strengthen most of the values conservatives hold dear. Among their recommendations, the most important may be these:

1. Universal health care. It’s time. We can no longer let irrational fear of socialized medicine shove Americans toward third world health care status. A nation of people who are not burdened by health care debt is a nation that can be more productive at lower cost.

2. Fully funded public education from preschool through trade school and college. That means quality facilities and well paid teachers for every student no matter who or where. It doesn’t have to be the same for everyone, but a nation of well educated persons is a nation that can compete for success in an increasingly competitive global market place.

3. High marginal tax rates for super salaries and investment income from very high levels of assets. It would raise additional revenue from those most able to pay, reduce incentives to offer super salaries, and likely encourage lower level wage growth. It may be the most powerful way to begin leveling the playing field.

4. Raise and index the federal minimum wage. Howls about decimating job growth have never been true. The current system permits systemized poverty wages that trap too many workers in what can only be called indentured servitude, one small step from slavery.

5. Unions are a pain in the neck for management. How can you run a business if it’s always a battle with the union? On the other hand, where unions are strong, wages, benefits and working conditions are a lot better. There is a place for unions, but current law and practice mitigate against them. Restoring organized labor in more places of production will open more doors to the middle class, and create greater job security for employees. It can be done without returning to the bad old days.

Right wing ideologues will have none of this. For them, it’s not the socialist camel’s nose under the tent, it’s the whole damn camel. It’s predictable, and sad, because these modestly progressive (or liberal if you like) policies would fortify the foundation of some of their most treasured conservative values. Rather than create a nanny state of dependency bereft of individual initiative and responsibility, it would open opportunities to show initiative, assume responsibility for one’s self, take risks to try new things, and have confidence that government and society is working for you, not against you.

The argument should be convincing, but right wing ideologues have one powerful tactic remaining in their hands. These policies require the removal of every barrier and obstacle that has been placed in front of people of color and other so-called minorities. Right wingers will complain that the undeserving would be allowed to go ahead of long suffering white workers who’ve been waiting their place in line. They will refuse to acknowledge that some people have been prevented from ever getting in line, while others have been forced to the back of a line that never moved. They will raise fears of violence, cry reverse discrimination, and parade every stereotype of laziness, inferiority, and immorality they know will play to long held prejudices. It’s worked in the past – they’ll try hard to make it work again.

The argument, convincing as it is, requires a new narrative replacing the Reagan-Gingrich-tea party one that’s dominated the GOP and given us Trump. It’s not an easy task, but Trump’s defeat in the time of COVID may be the right opportunity to have a go at it. It will require consistent, forceful messaging from the new administration. That means overwhelming the media with the new narrative, including thought leaders willing to appear on every right wing media outlet that will have them, ready to stand firm and confront delusion with reality. One more hurdle remains. The entire bureaucracy, from top to bottom, must be reoriented to customer service rather than dehumanizing enforcement. It doesn’t mean easing up. It means dealing cooperatively with clientele to make laws and regulations work for the greater good.