White House Chronicle

News Analysis With a Sense of Humor

The Age of Dichotomy Is Tearing Up America

by Leave a Comment

We live in an age of dichotomy.

The rich are getting richer and the poor are getting poorer.

We have more means of communication, but there is a pandemic of loneliness.

We have unprecedented access to information, but we seem to know less, from civics to the history of the country.

We are beginning to see artificial intelligence displacing white-collar workers in many sectors, but there is a crying shortage of skilled workers, including welders, electricians, pipe fitters and ironworkers.

If your skill involves your hands, you are safe for now.

New data centers, hotels and mixed-use structures, factories and power plants are being delayed because of worker shortages. But the government is expelling undocumented immigrants, hundreds of thousands who have skills.

Thoughts about dichotomy came to me when Adam Clayton Powell III and I were interviewing Hedrick Smith, a journalist in full: a Pulitzer Prize-winning reporter and editor, an Emmy Award-winning producer/correspondent and a bestselling author.

We were talking with Smith on “White House Chronicle,” the weekly news and public affairs program on PBS for which I serve as executive producer and co-host.

The two dichotomies that struck me were Smith’s explanation of the decline of the middle class as the richest few rise, and the way Congress has drifted into operating more like the British Parliament with party-line votes than the body envisaged by the founders.

Echoing Benjamin Disraeli, the great British prime minister who said in 1845 that Britain had become “two nations,” rich and poor, Smith said: “Since 1980, a wedge has been driven. We have become two Americas economically.”

On the chronic dysfunction in Congress, Smith said: “When I came to Washington in 1962, to work for The New York Times, budgets got passed routinely. Congress passed 13 appropriations bills for different parts of the government. It happened every year.”

This routine congressional action happened because there were compromises, he said, noting, “There were 70 Republicans who voted for Medicare along with 170 Democrats. (There was) compromise on the national highway system, sending a man to the moon in competition with the Russians. Compromise on a whole slew of things was absolutely common.”

Smith remembered those days in Washington of order, bipartisanship and division over policy, not party. There were Southern Democrats and Northern Republicans, and Congress divided that way, but not routinely by party line.

He said, “There were gypsy moth Republicans who voted with Democratic presidents and boll weevil Democrats who voted with Republican presidents.”

In fact, Smith said, there wasn’t a single party-line vote on any major issue in Congress from 1945 to 1993.

“The Founding Fathers would never have imagined that we would have what the British call ‘party government.’ Our system is constructed to require compromise, while we now have a political system that is gelled in bipartisanship.”

On the dichotomy between the rich and the poor, Smith said that in the period from World War II up until 1980, the American middle class was experiencing a rise in its standard of living roughly keeping up with what was happening to the rich.

But since 1980, he said, “The upper 1%, and even the top 10%, have been soaring and the rest of the country has fallen off the cliff.”

This dichotomy, according to Smith, has had huge political consequences.

In 2016, he said, Donald Trump ran for president as an advocate of the working class against the establishment Republicans: “He had 15 Republican (contenders) who were pro-business; they were pro-suburban Republicans who were well-educated, well-off. Trump had run on the other side, trying to grab the people who were aggrieved and left out by globalization. But we forget that,” he said.

Smith went on to say that Bernie Sanders, the Democratic presidential candidate in 2016, did the same thing: “He was a 70-year-old, white-haired socialist who came from Vermont, with its three electoral votes, but he ran against the establishment candidate, Hillary Clinton … and he damn near took the nomination away from her.”

Smith said that result showed “there was rebellion against the establishment.”

That rebellion, in my mind, has resulted in a worsening separation between and within the parties. They aren’t making compromises which, as in times past, would offer a way forward.

A final dichotomy: The United States is the richest country the world has ever seen, and the national debt has just reached $38 trillion dollars.

The Great Middle Class Awakening and Its Torchbearer

by Leave a Comment

By Llewellyn King

The middle class has been taking a shellacking for years. It began in the 1970s, when the business and political elites separated from the people and it has been accelerating ever since, according to Hedrick Smith, a former Pulitzer Prize-winning New York Times reporter and editor, an Emmy award-winning PBS producer and correspondent, and a bestselling author. In short, an establishment figure.

Add to Smith’s establishment credentials schooling at Choate, the private boarding school, a stint at Oxford, and you have the picture of someone with the credentials to join the elite of his choosing. Instead Smith is a one-man think tank, a persuasive voice against the manipulation of the public institutions, like Congress, for money and power.

But Smith is not a polemicist. He uses the reporter’s tools, honed over decades in Moscow and Washington and on big stories, like the civil rights movement and the fall of the Soviet Union, to make his points against the assault on the middle class.

It all began with Smith’s looking into what was happening to American manufacturing, which led to his explosive 2012 book, “Who Stole the American Dream?” Encouraged by the book’s success, he created a Web site, reclaimtheamericandream.org, which now has a substantial following. In the past three years, he has lectured at over 50 universities and other platforms on his big issue: the abandonment of the middle class by corporate America and its corrupted political allies.

Smith documents the end of the implicit contract with workers, where they shared in corporate growth and stability. He outlines how money has vanquished the political voice of the middle class.

Instead, according to Smith, corporations have knelt before the false god of “shareholder value.” This has resulted in the flight of corporate headquarters to tax-friendlier climes, jobs to cheap labor, and a managerial elite indifferent to those who built the companies they manage.

In Smith’s well-researched world it is not only the corporations that have abandoned the workers, but the political establishment is also guilty, bowing to lobbyists and fixing elections through redistricting. Two villains here: money in politics and gerrymandering electoral districts.

The result is a democracy in name only that serves the powerful and perpetuates the power of those who have stolen the system from the voters.

Smith cites the dismal situation in North Carolina, where districts have been drawn ostensibly to ensure black representation in Congress, but also to ensure Republican domination of all the surrounding districts. The two districts that illustrate the mischief are called “the Octopus” and “the Serpent” because of the way they are drawn to identify the voter preference of the inhabitants.

The rise of Bernie Sanders and Donald Trump are testament to the broken system, says Smith. They are symbolic of the rising up of the middle class against the predations of the elites.

But Smith is hopeful because, he says, the states have taken up arms against the Washington and Wall Street elites. People should “look at the maps,” he says, “They will be surprised to find out that 25 states are engaged in a battle against partisan gerrymandering, or that 700 cities and communities plus 16 states are on record in favor of rolling back ‘Citizens United’ and restoring the power of Congress to regulate campaign funding.”

Smith sees the middle class reclaiming America: a great social revolution that again unites the government with governed, the creators of wealth with the managers of the wealth. Smith is no Man of La Mancha, tilting at windmills, but a torchbearer for a revolution that is underway and overdue.

“My thought is that more people would be emboldened to engage in grassroots civic action if they could just see what other people have already achieved,” he told me.

Smith’s Web site has drawn 82,000 visitors in the past year, and Facebook posts have reached 2.45 million, he says.

Smith cautioned me to write about the Web site and cause and not the man. But the man is unavoidable, and unique. He has as much energy as he had when I first met him in passing in a corridor at the National Press Club in Washington decades ago. At 82, Smith still plays tennis, skis, hikes, swims and dances with his wife, Susan, whom he describes as a “gorgeous dancer.”

At 6 feet 2 1/2 inches, Smith is an imposing figure at the lectern, but his delivery is gentle and collegiate: a reporter astounded and pleased with what he has found in the course of his investigation of the American body politic. — For InsideSources

 

 

Requiem for the American Dream

by Leave a Comment

There is such a chorus from the punditocracy declaring the American Dream dead that one is scared to lay one's head down at night. A quick Google search reveals that there are at least a dozen books declaring the end to what is the American ethos: a dream in which everyone could graduate to the middle class with a lifetime of dignified employment with a pension, and good educations for their children.
 
Like all declines, there are many threads to the change that is wracking the country. Some of them:
 
  • There has been a dislocation between the growth in productivity and the growth in wages. Hedrick Smith points this out in his excellent and detailed book, “The American Dream and Who Stole It.”
 
  • The years of great national prosperity lasted from the end of World War II until it began to erode savagely toward the end of the last century. Smith dates the rot all the way back to the Carter administration, but most of us were not aware of it until much later.
 
  • If the workers are not sharing in the growth in productivity, we have severely reversed upward social mobility and the enduring belief of an immigrant people that their children would have a better life.
 
The failure of institutions to mobilize against what was patently happening is extraordinary and, in its way, peculiarly American. Our sense of exceptionalism leads us to avoid collective action.
 
Unionism, which has always been a force for incorporating productivity gains into wage packets, has been muted and itself has failed to grasp what is happening. While the world was changing, the unions were lost in old labor-management struggles of an irrelevant past. Management learned they no longer had to sit and take it: They could move to union-free locations like the South, and ultimately Asia. Collectively we watched our own decline in silence.
 
The monied class learned how to buy Congress and turn the watchdog into the enabler of the looter. A powerful new breed of lobbyist — often men and women who had served either in Congress or as congressional aides — threw themselves into the business of making sure that the money people (the corporations and super-rich individuals) got whatever the wanted; subsidies, light regulation, tax breaks and exemptions and, finally, light taxes.
 
As running for office — never easy in the House with its two-year election cycle — became more expensive, elected officials became more vulnerable to campaign contributions. Now it is a giant system of bribery in which neither the bribers nor the bribed feel shame; there are willing buyers and sellers of the U.S. government as farmers buy and sell cattle. This trading money for favors is well documented in Mark Leibovich's book, “This Town.”
 
Everyone who works on Capitol Hill and its lobbies knows what is going on. Money is changing hands for influence, and legislation is being passed favoring big business and big money. You can buy permission to pollute, buy a change in securities laws and buy favorable tax treatment. And you can secure the minimum wage at below poverty levels.
 
It used to be, as one long-term lobbyist explained to me, that if you wanted favors on Capitol Hill you had to assemble a large and transparent coalition of people who would benefit from the change in law that your client wanted. You had to get many interests on board and persuade some newspaper commentators of your high purpose. Now, this veteran said, you just do it with money — in the dark, he might have added.
 
The Chinese did not send an armada of junks to take out jobs; we exported them for short-term gain. We embraced the myth that cheaper goods were better for our people. They are – if we have money to pay for them.
 
The middle class, to use the vernacular of the moment, has been thrown under the bus.
 
The tea party, briefly the hope for middle-class salvation, drank from the horn of myths spread by the monied class. Now, in their folly, they are supporting a destructive shutdown of the government, which will further damage the middle class.
 
Of course it is not just venality that has brought us to our dreamless state: rapid technological change, and the decline in the need for whole classes of work present a serious challenge. But who is taking up the challenge? Not Congress, whose members are mostly millionaires; not the tea party; not the unions.
 
Fancy a double espresso before bed? — For the Hearst-New York Times Syndicate