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Showing posts with label democratic socialism. Show all posts
Showing posts with label democratic socialism. Show all posts
Saturday, March 7, 2020
Trump and Biden vs. Bernie Sanders vs. Joe Kopsick on the Issues
Sunday, December 9, 2018
Self-Interview on Venezuela and Socialism
1Q:
What is the definition of socialism? Is it a political system, or an
economic system? Does socialism always lead to communism?
1A: Socialism is social
ownership, or worker control, of the means of production. The means
of production include factories, farms, and workplaces. Some
socialists may also want to socialize land, and/or railroads, energy,
or other utilities. Marx, Lenin, and Khrushchev wanted socialism to
lead to communism, but some socialists are more reformist and
gradualist, and don't expect communism to come to America. Socialists
oppose the personal and private ownership of things that make more
sense to own collectively, namely, things that are occupied
and used collectively, like housing, workplaces, public utilities,
common lands, etc..
2Q.
People say that Cuba, China, Vietnam, Laos, and North Korea are the
best examples of communist countries. Do you think that is
true?
2A: Cuba, China, Vietnam, and Laos all have markets, so they are not communist (by most accepted definitions of communism). They may have the appearance of communist countries
because they are governed by communist parties, or because they have
autocracy or one-party rule. But autocracy is not a mandatory feature
of communism. Also, if true communism is anarchistic (as anarcho-communists believe), then one-party rule, and political nations in the first place, would logically have nothing to do with communism.
Most of those countries I would describe as some of the best recent examples of authoritarian communism (a little less so Cuba). China certainly doesn't represent the free communism that Karl Marx envisioned (much less the idea that it would be worldwide, and empower the individual).
Most of those countries I would describe as some of the best recent examples of authoritarian communism (a little less so Cuba). China certainly doesn't represent the free communism that Karl Marx envisioned (much less the idea that it would be worldwide, and empower the individual).
3Q. Are there any countries left in the world that are still socialist? And are there any examples of successful socialist societies, either now or in the past? Are any European countries fully socialist?
3A: The “Eurosocialist”
countries in Europe are really closer to neoliberalism and democratic
socialism than they are to full socialism. Countries like Norway,
Sweden, Denmark, and the Netherlands are a lot like the United
States: they're countries with regulated markets and a robust social
safety net. Calling those countries socialist is like calling F.D.R.
a socialist, it's an exaggeration.
Socialist societies have existed,
and do exist now, but they are usually short-lived. Sometimes they're
destroyed by outside forces, sometimes they became tyrannical and had
to be overthrown. Examples include Catalonia, Aragon, and the
Mondragon cooperative in 1930s Spain, anarchist Ukraine in the 1930s,
and the Paris Communes of 1848 and 1871. The Mondragon cooperative
still exists today, and so does Rojava in Kurdistan.
By the way, I would call
Iceland one of the freest countries that exists, and I would
also describe it as one of the best examples of both a
free socialist and
libertarian society.
4Q.
Critics of socialism often say that socialists just want to be lazy,
not work, accept handouts, and “steal other people's money” by
redistributing the wealth. Do you think that is an accurate
description of socialism?
4A: I think this is a description
of the Democratic Party platform, intended to criticize it, and also
used as a criticism of socialism, which has some similarities but is
not exactly the same thing. The idea that socialists want to steal
people's money is not true; it is wealth
and opportunity that
they want to redistribute, not money.
Most
socialists, communists, and anarchists don't even like the idea of
money or currency in the first place, and want to get rid of it. Most
socialists would agree that whether our children live or die from an
illness should not depend on how much we work for government-printed
pieces of paper, stamped with arbitrary values, covered in toxic
processing chemicals.
Socialists
and Democrats do both want social welfare, and government assistance,
but only the socialists realize in full that the problem is deeper
than satisfying our temporary needs, and handouts like Food Stamps
are just a temporary solution. What needs to happen is that ordinary
people need more opportunities to acquire skills and education, and
artificial privilege erected by law with the help of taxpayer dollars
needs to be eliminated if we're going to claim that we have a free
market and a free, meritocratic society.
The people in Venezuela are not poor because they lack money; in fact, they have so much money that they don't know what to do with it, because of hyperinflation. They're poor because they lack resources; food, medications, adequate shelter, and other things we need to survive. Socialists understand that if you put too many obstacles - like hard work, and requirements to use money and currency, and pay onerous taxes, and follow overly stringent regulations - between people who are trying to support their families, and the things they need to do in order to do that, then the streets eventually fill up with starving people, sick people, and corpses.
A society that considers bodies of sick people piling up in the streets "not a problem" or "not my problem" cannot rightfully be called a society.
A society that considers bodies of sick people piling up in the streets "not a problem" or "not my problem" cannot rightfully be called a society.
5Q. Is the Democratic Party socialist? If not, is anyone in the Democratic Party a socialist? Who are the most socialist-leaning people in American public office today?
5A:
Hillary Clinton is not “far-left”, and neither is Nancy Pelosi.
They've both affirmed their commitment to capitalism over socialism.
They're two of the most pro- Wall Street Democrats, and they've been
used to making deals with Republicans, and corporate lobbyists who
pay both sides, for a long long time.
I
think Maxine Waters wants people to think she is a socialist, but I doubt she really is one. Bernie
Sanders, Sherrod Brown of Ohio, and Alexandria Ocasio-Cortez, I
think, are the best examples of socialist-leaning politicians in
office today.
6Q. What is the Congressional Progressive Caucus, and why do some people think it is socialist?
6A:
The Congressional Progressive Caucus is what's called an ideological
congressional member organization (C.M.O.). Basically it's a faction
of the Democratic Party. Other factions of the Democrats include the
New Democrats, the Blue Dogs, and the Populists, just like the
Republicans have the Tea Party Caucus, and several other groups.
The Congressional Progressive Caucus has for a long time been cited
by people on the far right as one of the top groups infiltrating
American politics to promote socialism and communism. I understand
why they would think that, since the Progressives are the
farthest-left faction in the Democratic Party, but Progressive
Democrats are not likely to cut off their association with neoliberal
Democrats like Clinton and Pelosi until the membership of the
Republican Party plummets significantly.
Progressives
would choose a free communist society if they could, and if it were
easy, but they are gradualists and reformists, unlike social
anarchists and anarcho-communists, so they insist on reform through
elections, and that's why they compromise with pro- Wall Street
Democrats so much, and, in the eyes of some, sell out their base
(working families and the urban poor).
7Q. What is the difference between a Democrat, a socialist, and a “democratic socialist”? Has America ever had a socialist leader? Were F.D.R., or Teddy Roosevelt, or any other presidents, socialist, or inspired by socialism?
7A:
An American Democratic partisan is not quite a full “one man, one
vote” small-”D” democrat. On one hand, American Democrats are
steeped in the tradition of American liberal-conservatism, and
democratic republicanism. But on the other hand, modern Democrats
stray away from the tradition of a liberal society and a limited
government, which was the party's platform in the two decades after
Reconstruction ended.
The
question surrounding democracy in American government is,
fundamentally, “Whose property are we democratically voting on?”
Also, “Did people give to the public pot voluntarily, and did they
earn that money fairly in the first place?” Socialists know that a
business is not competing fairly if it is subsidized and bailed out.
But Democrats can't seem to decide how much of the economy should be
up to be distributed according to a majority vote.
The
idea that the liberties in the Bill of Rights would ever be put up
for a public vote frightens conservatives, libertarians, and even
some progressives and nationalists. That is why, in my opinion, it is
unlikely that real socialism could take root in America (or, at
least, without a revolution), and that's why a lot of people are
afraid of it. It would mean a dramatic change in how politics, the
economy, and society are run.
“Democratic
socialist” is the term we use to describe people like F.D.R., and
Norman Thomas (who inspired him), people who wanted American
democracy with socialist influences. The term “democratic
socialist” is distinct from “social democrat”, which was a term
used to describe German communists in parliament in the early 20th
century. Personally, I think it would make more sense if the terms
were flipped.
8Q. Is Venezuela currently socialist? Did they achieve socialism under Chavez? Was the current crisis in Venezuela caused by socialism, or by something else?
8A: Venezuela is not
quite socialist, because it still has billionaires and private
ownership. But it's almost socialist. They were closer to socialism,
and more prosperous, under Hugo Chavez.
Critics of the
Venezuelan system arguing that nationalizing oil reserves is
automatically socialist, but it's only socialist if the profits are
reinvested to benefit the people. And that's what Chavez did – tied
oil profits to a citizens' fund - until late in his presidency the
value of oil went down, and thus the Venezuelan economy tanked. Tying
oil profits to a citizens' dividend, or sovereign wealth fund or
permanent fund, is something that's also been tried by Alaska,
Norway, and Libya.
It's true that the
country did spend a lot on social welfare when they thought the
oil-based economy would continue to succeed. But it did not help that
the country was burdened with some 7 million Colombian refugees due
to the civil war several decades prior. It also didn't help that, in 2002, the U.S. orchestrated a coup wherein Chavez was kidnapped,
and then released and restored to power after two days, after a right-wing opposition backed and funded from Washington, D.C. briefly took control.
State spending directed towards attempts to fight poverty, which could be described as "socialist", is not the only economic system that's to blame for Venezuela's problems. The profit motive of international capitalist sellers of food, toilet paper, and other necessities, is also partially to blame.
Some who analyze the situation in Venezuela believe that the country's middle and upper classes' demand for a wider variety of products in stores, has been used to portray the food shortages as worse than they actually are (not that they aren't extremely problematic), and that ensuring a wide variety of foods is not as important as delivering large amounts of staples in order to keep people sufficiently well fed. Big business and media in the country, naturally, benefit from broadcasting demands for their own products, so that explanation seems to hold up to scrutiny, especially considering how problematic intellectual property can be in facilitating free, open, and low-cost international trade.
Additionally, many Latin American countries, Honduras included, have been plagued with drugs, and the C.I.A. has not only undermined regimes all over Latin America, it has traded drugs for weapons in the course of arming all kinds of rebel groups in order to achieve those ends. Also, the U.S. imposed sanctions on Venezuela in 2014 and 2018, after U.S.-Venezuelan relations soured (following Chavez's apparent embrace of Fidel Castro and Saddam Hussein over George W. Bush, and Venezuela's failure to cooperate enough to fight terrorism in the eyes of the United States).
State spending directed towards attempts to fight poverty, which could be described as "socialist", is not the only economic system that's to blame for Venezuela's problems. The profit motive of international capitalist sellers of food, toilet paper, and other necessities, is also partially to blame.
Some who analyze the situation in Venezuela believe that the country's middle and upper classes' demand for a wider variety of products in stores, has been used to portray the food shortages as worse than they actually are (not that they aren't extremely problematic), and that ensuring a wide variety of foods is not as important as delivering large amounts of staples in order to keep people sufficiently well fed. Big business and media in the country, naturally, benefit from broadcasting demands for their own products, so that explanation seems to hold up to scrutiny, especially considering how problematic intellectual property can be in facilitating free, open, and low-cost international trade.
Additionally, many Latin American countries, Honduras included, have been plagued with drugs, and the C.I.A. has not only undermined regimes all over Latin America, it has traded drugs for weapons in the course of arming all kinds of rebel groups in order to achieve those ends. Also, the U.S. imposed sanctions on Venezuela in 2014 and 2018, after U.S.-Venezuelan relations soured (following Chavez's apparent embrace of Fidel Castro and Saddam Hussein over George W. Bush, and Venezuela's failure to cooperate enough to fight terrorism in the eyes of the United States).
So nationalization of
oil, civil war, U.S. military interference and economic sanctions, refusal of police to
fight violent drug gangs, price controls on food that foreign
food sellers have refused to accommodate, and poor prioritization of food needs - as well as poor maintenance of the means of oil extraction - have all been significant
causes of Venezuela's problems.
American "economic imperialism", with the goal of slowing the development of the "resource-cursed" Venezuela (with its huge reserves of oil in the North, the price of which collapsed 70% in 2014, the year after Chavez died) - and a sense of legal entitlement to future profits from sales of consumer goods and everyday needs - are much more responsible for Venezuela's current problems than "socialism" (which, again, means worker control, ownership, or management of the means of production; workplaces, factories, large machines, farms, and maybe other things). There will not be full socialism in Venezuela until no workplace or energy company is owned by a private owner.
If Venezuela pursues more disciplined, motivated worker control over energy utilities, becomes successful at ensuring fair health and safety standards at oil extraction facilities, and expands oil refining in its own country, then it will be on the road to energy independence - and with it, economic and political independence - and it will also prove to the world that a socialist economy can be responsible, clean, and self-sufficient. Unfortunately, that will only piss America off (until it finds itself reasonable leadership who don't want to subjugate Venezuela's interests to their own).
It could be argued that Venezuela's unrestrained social welfare spending in the face of massive temporary profits reflects a socialist desire to spend more in the short-term and overlook long-term problems. But it can also be argued that capitalism is more concerned about short-term gains than socialism, because capitalism has the reputation of prioritizing short-term profits over human lives. To any person with a conscience, the needs of Venezuela to move its most vulnerable citizens out of dire poverty and into acceptable housing, ought to outweigh the needs of Western commodities traders to acquire secondary homes for themselves.
American "economic imperialism", with the goal of slowing the development of the "resource-cursed" Venezuela (with its huge reserves of oil in the North, the price of which collapsed 70% in 2014, the year after Chavez died) - and a sense of legal entitlement to future profits from sales of consumer goods and everyday needs - are much more responsible for Venezuela's current problems than "socialism" (which, again, means worker control, ownership, or management of the means of production; workplaces, factories, large machines, farms, and maybe other things). There will not be full socialism in Venezuela until no workplace or energy company is owned by a private owner.
If Venezuela pursues more disciplined, motivated worker control over energy utilities, becomes successful at ensuring fair health and safety standards at oil extraction facilities, and expands oil refining in its own country, then it will be on the road to energy independence - and with it, economic and political independence - and it will also prove to the world that a socialist economy can be responsible, clean, and self-sufficient. Unfortunately, that will only piss America off (until it finds itself reasonable leadership who don't want to subjugate Venezuela's interests to their own).
It could be argued that Venezuela's unrestrained social welfare spending in the face of massive temporary profits reflects a socialist desire to spend more in the short-term and overlook long-term problems. But it can also be argued that capitalism is more concerned about short-term gains than socialism, because capitalism has the reputation of prioritizing short-term profits over human lives. To any person with a conscience, the needs of Venezuela to move its most vulnerable citizens out of dire poverty and into acceptable housing, ought to outweigh the needs of Western commodities traders to acquire secondary homes for themselves.
9Q. What is the difference between libertarian socialism and authoritarian socialism, and what are some examples of how their economic systems differ from each other? Is Venezuela libertarian-socialist or authoritarian-socialist? Would you describe Hugo Chavez or Nicolas Maduro as autocrats or dictators, or as men of the people?
9A:
Maduro is certainly having a hard time convincing his people that he
is one of them, and worthy of Chavez's legacy. Some believe that Maduro displays more autocratic, authoritarian-socialist tendencies than Chavez, whom is viewed as more dedicated to
freedom and equality. Or maybe it just appears that way, because the
economy was so much more successful under Chavez.
Maduro has also made attempts to replace the national legislature, and fill the supreme court with people who support him. But in Maduro's defense, he did that in response to the United Socialist Party's December 2015 electoral loss to an opposition made up of many of the same elements as the coup that ousted his predecessor Chavez in 2002 (with the help of the C.I.A.). Carmona, the president installed for two days during that coup, made the same moves that Maduro made some 14 years later: replace the national legislature with a new one, and pack the supreme court.
Maduro has also made attempts to replace the national legislature, and fill the supreme court with people who support him. But in Maduro's defense, he did that in response to the United Socialist Party's December 2015 electoral loss to an opposition made up of many of the same elements as the coup that ousted his predecessor Chavez in 2002 (with the help of the C.I.A.). Carmona, the president installed for two days during that coup, made the same moves that Maduro made some 14 years later: replace the national legislature with a new one, and pack the supreme court.
Authoritarian
socialists use autocracy, centralization of decision-making power,
single party rule, price controls, rationing, and quota systems;
while libertarian socialists use mutual aid, direct action, voluntary
exchange. They also use radical reclamation of stolen property; also called
appropriation, or re-appropriation. Re-appropriation is distinct from expropriation, the term Chavez used to justify nationalizing resources in the name of socialism and populism.
Most libertarian socialists want to avoid expropriation, and are instead focused on achieving both freedom and equality through action that evades the state and tries to make it unnecessary. Authoritarian socialists, on the other hand, believe that freedom is often a threat to equality, and that, therefore, order is necessary to ensure equality. I would recommend that direct food aid continue in Venezuelan society, with or without the government's assistance.
Most libertarian socialists want to avoid expropriation, and are instead focused on achieving both freedom and equality through action that evades the state and tries to make it unnecessary. Authoritarian socialists, on the other hand, believe that freedom is often a threat to equality, and that, therefore, order is necessary to ensure equality. I would recommend that direct food aid continue in Venezuelan society, with or without the government's assistance.
10Q.
Do you think America could ever become socialist? If so, what would
it look like? Is there any risk that if America tried socialism, it
would end up poor like Venezuela? Why or why not?
10A:
I think the most likely way America could become socialist, at this
point, is if Bernie Sanders got elected president, and appointed a
cabinet with some more establishment-type Democrats but at least half
“democratic socialists” who think more like him.
But
I don't see America approaching real socialism until at least the
second term of the presidency of a socialist-leaning politician like
Sanders, Ocasio-Cortez, or Sherrod Brown, and at that, only after
significant changes are made to labor law (such as the repeal of most
or all of the Taft-Hartley Act, which severely limits the ability to
engage in meaningful, coordinated strikes and boycotts).
There's
an outside chance that socialist and communist parties in the U.S. -
like Community Party U.S.A., Socialist Equality Party, Socialist
Workers' Party, and the Party of Socialism and Liberation - may
become more popular, and caucus with the Democrats, and grow the
Democrats' coalition to the point where it is unstoppable and stays
in the majority, and becomes virtually a single-party-rule system.
I
don't think there's any real risk that America would become anywhere
near as poor as Venezuela is right now if it tried socialism. Marx
made it clear that the countries where it would be easiest and most
practical to achieve socialism are in the more
industrialized nations, and the wealthier ones (like America), not
the poorer, less industrialized ones (like Venezuela).
America
overproduces all sorts of things: cars, junk food, toys, consumer
goods. So why should it be so difficult to afford to buy anything
in this country? I think it's because of brand names, bad patent
laws, trade subsidies, and protection of “private” property by
public police.
Socialists understand that violence, and the legal enforcement of the
right to profit more and more each year off of one's private
property, are the most important thing backing the value of those
products, and also the value of our currency.
There
is more than enough to go around in this country, it's just not being
distributed right. Take food for example; the U.S. throws away
between a third and half of the food it produces every year. Food
pantries are full of bread and other things they can't get rid of.
The show Extreme Couponing
shows
us that using coupons
right can reduce the price of food by 99%.
But even when free food is available, in abundance, people don't
always have easy access to it, and the law may require it to be
thrown away before it goes bad. Which causes prices to
increase.
We
can't afford it, so it goes bad, so they throw it away, so we can't
afford it more. Maybe
if you send it to us for free, it'll get to us before it spoils! How
is mass-produced junk food so expensive, when you couldn't pay
me to eat most of it!? You don't
need to be a socialist to admit that something's not right here. The
problem is that we're valuing obeying the law, and protecting the
property and brand of the food producers, over our families' needs to
eat.
11Q. Some people believe that socialism, and free markets or capitalism on the other hand, are incompatible. Do you agree, and why or why not?
11A:
Socialists and communists would like a marketless society if they
could have it, because most of them believe that markets, trade,
currency, and money are not, and should not be, necessary in a just
world.
But it
is not necessary to abolish markets in order to achieve socialism or
communism; in fact, there is a proposed economic system called market
socialism, in which markets still exist, but what's being bought and
sold on the markets would mostly be cooperatively or socially owned,
rather than privately owned. Mutualism is a similar system.
“Market
communism” exists too; this is a term that's been applied to the
economic system used by Deng Xiaoping in China from the late 70s to
the mid-1980s. China opened its markets to foreign investors, and as
a result, the largely state-owned, socialized economy, became more
balanced against other types of property ownership (private and
personal).
Unfortunately,
Deng's regime ended with the Tiananmen Square Massacre, because
Deng's regime was not prepared to face the consequences of more
economic openness and cultural openness to the West. The people
started to demand much more freedom than Deng's regime was willing to
accommodate, and China started drifting back towards authoritarian
communism, away from a vision of socialism geared towards
freedom.
12Q. Critics of “socialized medicine” warn of
rationing and long lines in places like Canada and the U.K.. Do you
believe that adopting a socialized, non-profit, or universal health
care system in America would improve the state of health in the U.S.?
Why or why not?
12A:
That all depends on what "socialized medicine" really means, and whether “universal health care” means universal
care or universal insurance. I think the importance of insurance is
being overstated, and the importance of health care, and
access to health technologies and medications, is overshadowed.
It
would help to get the profit motive out of health insurance, but this
issue should not be discussed without also addressing the questions:
“Why did we ever repeal the law that prohibited health insurance
companies from operating on a for-profit basis in the first place?”,
and “Why would a health insurance company agree to cover for a
disease that a person already has, when they know they're going to
lose that bet?”
As a
member of the Libertarian Socialist Caucus of the Libertarian Party,
I'm inspired by both socialist and free-market libertarian ideas.
People who study both fields, understand that it's not only the
socialization of risks that private owners take that's the problem,
it's also a problem that people are not allowed the freedom or
opportunity to compete against established producers, and provide
better products for better prices and/or better qualities (without
being accused of trying to corner the market, or push others out of
competition).
New
technologies in pharmaceuticals, and new developments in the way
issuers structure health insurance policies, mean that the health
industry is, by no means, exempt from those economic lessons. I
oppose the individual insurance mandate, and I would support a public
option, but I wouldn't ban for-profit health insurance. But people
shouldn't assume that banning for-profit health insurance is the best
way to achieve positive change in health policy; the main problem
isn't that for-profit insurance isn't banned, it's that
not-for-profit health insurance is discouraged by the
government because the government can't find a way to justify taxing
it.
I would
expect that a truly socialist health care system would be managed by
a board comprised of doctors, nurses, other health care employees,
and medical scientists, in order to fit the “worker control and
management” model traditionally associated with socialism. I would
want to make sure that patients - the consumers of medications
– are also represented, even though they are not hospital workers.
Including patients on a board of managers would make a hospital into
a consumer-cooperative, instead of a cooperative enterprise.
13Q. Why did you decide to call your second collection of essays “Soft Communism for 90's Kids”?
13A:
Because I am a 90's kid; I was born in 1987. I was four when the
Soviet Union collapsed, so as a result, I didn't grow up being taught
to be afraid of the Russians or of communism.
I
was 14 when 9/11 happened, and 20 when the financial crisis of 2007
hit. I've seen a police state steadily growing in my country, and I
know we have troops in 4 out of 5 countries around the globe. I
honestly have more critical things to say about my own country
than I do about our rivals in Moscow. In Virginia, you can get a
longer sentence for protesting the government on the wrong section of
a public sidewalk, than you can for committing murder. In my opinion,
the American police state makes the U.S.S.R. look like they weren't
even trying.
I
called my book “Soft Communism for 90's Kids” because people in
my age group are not afraid of socialism, the left wing, progressive
politics, or anarchism. I wrote the book to inform people about
changes to labor law in Wisconsin, my criticism of federal labor laws
like the Wagner Act and Taft-Hartley, and to introduce the economic
systems of Georgism and Mutualism in order to show that there is a
bridge between American libertarianism and the radical left after
all.
14Q. What are the names of some of the articles you've written about socialism and labor law?
14A:
Articles I've written about socialism and labor law include “What
Liberals and Conservatives Both Get Wrong About Socialism”, “Janus
Decision Reveals Two-Faced Nature of Collective Bargaining Law”,
“Majority Unionism, Compulsory Unionism, and Compulsory Voting Hurt
Workers”, and “Wisconsin and Collective Bargaining: My Journey on
Labor Policy”.
You
can read them on my blog, the Aquarian Agrarian, at
www.aquarianagrarian.blogspot.com.
http://aquarianagrarian.blogspot.com/2018/09/what-liberals-and-conservatives-both.html
http://aquarianagrarian.blogspot.com/2018/07/janus-decision-reveals-two-faced-nature.html
http://aquarianagrarian.blogspot.com/2014/11/compulsory-and-majority-unionism-hurt.html
http://aquarianagrarian.blogspot.com/2013/12/wisconsin-and-collective-bargaining-my.html
Questions Written on December 8th, 2018
Answers Written on December 9th, 2018
Published on December 9th, 2018
Edited and Expanded on December 10th, 11th, and 13th, 2018
Edited and Expanded on December 10th, 11th, and 13th, 2018
Monday, August 6, 2018
Alexandria Ocasio-Cortez is Part-Right on Unemployment
Table of Contents
1. Introduction
2. Multiple Job Holders
2. Multiple Job Holders
3. “The” Unemployment Rate
4. Working Overtime
5. Additional Factors in Employment
Content
1. Introduction
On
July 13th,
2018, U.S. House Democratic primary winner Alexandria Ocasio-Cortez
(NY-14) appeared on PBS's program Firing
Line,
to discuss her campaign with host Margaret Hoover.
Ocasio-Cortez,
a former Bernie Sanders campaign staffer who has been described as a
democratic socialist, was criticized for her response to Hoover's
question about unemployment. The following is a transcript of that
exchange:
Margaret
Hoover:
In
your campaign. It was always about working-class Americans. You talk
about the top versus the bottom, not the left versus the right.
Alexandria Ocasio-Cortez:
Right.
MH:
Now, the economy is going pretty strong, right? There's roughly four percent unemployment, 3.9% unemployment... um... Do you think that capitalism has failed to deliver for working-class Americans, or is [it] no longer the best vehicle for working-class Americans?
MH:
Now, the economy is going pretty strong, right? There's roughly four percent unemployment, 3.9% unemployment... um... Do you think that capitalism has failed to deliver for working-class Americans, or is [it] no longer the best vehicle for working-class Americans?
AOC:
Well, I- I think the numbers that you just talked about is part of the problem, right? Because we look at these figures, and we say, “Oh, unemployment is low, everything is fine”, right? Well, unemployment is low because everyone has two jobs. Unemployment is low because people are working sixty, seventy, eighty hours a week, and can barely feed their kids. And so, I do think that we have this no-holds-barred, Wild West hyper-capitalism. What that means is profit at any cost. Capitalism has not always existed in the world, and it will not always exist in the world. When this country started, we were not a capitalist- we did not operate on a capitalist economy.
Ocasio-Cortez's comments were quickly criticized by numerous figures in conservative media, including Tomi Lahren and Dan Bongino on Fox. On July 17th, former Republican congressman turned conservative radio host Joe Walsh tweeted “@Ocasio2018 is proof that just because you have a degree in Economics doesn't mean you actually understand economics.”
Alexandria
Ocasio-Cortez graduated from the College of Arts and Sciences of
Boston University in 2011, with a bachelor's degree in economics and
international relations. Her critics have also pointed out their
reasons for suspecting she is as unqualified to speak about
international relations as they feel she is about economics,
specifically her position on what she called “the occupation of
Palestine”.
Although
many news outlets and fact-checking sites were determined to prove
her wrong, she did have a point. While her comments on unemployment
were not technically correct in the strictest and most literal sense,
the way she articulated her position on why unemployment is low is,
at the very least, understandable and on the right track.
That's
because, as Harvard economics professor Gabriel Chodorow-Reich
says – as quoted in “Ocasio-Cortez Wrong on Cause of Low
Unemployment”, written by Corey Berman and Robert Farley, published
on FactCheck.org on July 18th,
2018 - “if she meant 'The unemployment rate is low[,] but that
doesn't mean the economy is at its potential[,] because many people
don't have a solid job and instead are forced to work two jobs to
make ends meet', you could find economists willing to agree or
disagree with the statement.”
I
suspect that that's exactly what
she meant.
2. Multiple
Job Holders
Ocasio-Cortez's
critics say that one reason she is wrong about unemployment, is that
the percent of workers who have multiple jobs is near an all-time
low.
That
is true; however, that low was achieved in 2013, in the middle of the
Obama presidency, and thus, could arguably be attributed to
Democratic policies. But on the other hand, that rate increased from
2013 to 2016, and decreased from 2016 to 2017. This rate has ranged
between 4.8% to 5% since 2010, and ranged between 5-6% during the
previous 25 years before that.
Ocasio-Cortez
never claimed that the number of people working two jobs was at an
all-time high. Although it was hyperbole for her to use the word
“everyone” to describe who has two jobs, it would be incorrect to
say that she claimed that the multiple job holders rate is higher
than it has ever been. While she arguably may have appeared
to imply that,
she did not directly say it.
Despite
the fact that that figure is actually near its all-time low, many
people, nevertheless, still do have two or three jobs. George W. Bush
said this is possible “only in America”, but it's also
only necessary in
America.
One
job ought to be enough for people to make ends meet. But a
minimum-wage job is not enough to support a small family in a
two-bedroom apartment in any state
in the nation. And that statistic is not made-up; it's the people who
say the minimum wage doesn't support a one-bedroom who
are wrong.
The
reason Ocasio-Cortez was not technically correct
about the cause of low unemployment rates, is that employed people
getting second and third jobs, does not, by itself, increase, nor in
any way affect, the unemployment rate.
But
that's because the figure we're talking about is the “proportion of
employed persons with more than one job”; that is, the number of
total workers, divided by the number of workers with multiple jobs.
That statistic is not based
on the relationship between the number of multiple job holders and
the number of unemployed people.
That's
why the unemployment rate does not change when a job goes to a person
who is already employed, instead of someone who is non-employed, who
arguably needs the work more badly than the already employed person.
Focusing
on the multiple job rate instead of unemployment, blinds us to the
fact that unemployment can stay about the same, even while the number
of jobs rises, which is largely attributable to people getting a
second job, and having both jobs' hours fall to 25 to 30 hours a week
each.
The
last thing I want to do is to pit unemployed people against employed
people who are struggling to balance two jobs. But the truth is that
people who take-on a second job are “taking jobs” from unemployed
people who actually need those jobs.
This
is a struggle related to the ease of obtaining employment, yet
changes in the number of people with two or more jobs does not affect
the unemployment rate the way it is currently measured. Alexandria
Ocasio-Cortez rightfully drew attention to that fact, when she said “
I think the numbers that you just talked about is part of the
problem”. The way we measure unemployment does not in
any way give us a clear picture of the general woes the people are
experiencing as it pertains to obtaining employment opportunities.
3. “The”
Unemployment Rate
As
Margaret Hoover noted that the unemployment has been hovering between
3.8% and 4.1% lately, Ocasio-Cortez's detractors have noted that as
well. Some conservative commentators have described this as an
all-time low, and some have even credited President Trump for this
supposed achievement.
The
idea that the U.S. is currently experiencing all-time low
unemployment rates is false. Around the year 1970, the unemployment
rate hovered around 3.5%, which is lower than it is now. Since the
unemployment rate's history began in 1948, the lowest unemployment
rate ever measured was 2.5%, in 1953.
Additionally,
the decline in unemployment numbers began long
before Trump
took office, near the beginning of the Obama administration.
Alexandria
Ocasio-Cortez was correct when she implied that the decline in the
unemployment rate has to do with the way they're measuring it.
You
see, when people say "the unemployment rate", that's a
misnomer, because there really is no single way that the U.S.
government measures unemployment. But what is almost always meant by
"the unemployment rate" is the so-called
"official unemployment
rate"; a measurement called "U3". According to
the Bureau of Labor Statistics, the "Current U3 Unemployment
Rate" is defined as the total number of unemployed people, as a
percent of the civilian labor force.
The
Bureau of Labor Statistics measures unemployment in a variety of
ways; known as U1, U2, U3, U4, U5, and U6. There have been conflicts
between presidents, the Congressional Budget Office, and the Bureau
of Labor Statistics, about how to measure unemployment, and these
different ways of measuring unemployment reflect some of those
differences of opinion.
The
Bureau of Labor Statistics defines U6 as “Total unemployed, plus
all persons marginally attached to the labor force, plus total
employed part time for economic reasons, as a percent of the civilian
labor force plus all persons marginally attached to the labor force”.
Using
U3 instead of U6 is basically a way to “fudge the numbers” on
unemployment, resulting in a lower “official” unemployment rate
than the “real unemployment" rate (U6). And U6, itself,
represents a number of workers that's about half as much as the total
number of people who are out of the work force and could potentially
be employed (we might call this the "real real unemployment
rate").
The
U3 unemployment rate excludes a lot of people who aren't technically
“unemployed” in the sense that they have filed for, and collect,
unemployment benefits from the government, and are currently
searching for work, and have not yet become discouraged enough to
stop looking. Such people are “non-employed”,
but they are not “unemployed”.
People who are between jobs, and think they'll find a job soon, and
never file for unemployment, fall in this class, and so do college
students who do not work due to having support from their parents.
The
U3 excludes not only non-employed people, but 1) underemployed
people; 2) structurally unemployed people (whose industries or
professions are uncertain or struggling due to long-term changes in
the economy); 3) seasonally unemployed people; and 4) “non-attached
workers” who work on-and-off, and also couch surfers who lack a
permanent residence, some of whom might work in the gig economy; as
well as homeless people who cannot file for unemployment benefits
because they have no permanent residence.
The
U6 unemployment rate is about 90% higher than the U3 unemployment
rate. If you factor-in everyone I
mentioned in the last two paragraphs, then the real unemployment
rate might be four
times higher than
the stated unemployment rate of 3.8% - that is, 15-16% - if not more
than that. In fact, to prove that Donald Trump is wrong that
unemployment is low, I'm going to cite one of his harshest critics,
Donald Trump. In an August 2015 interview for Time
Magazine,
Trump told Pete Schroeder that he doubted the official unemployment
rate, saying “our real unemployment rate is 42 percent” because
“ninety-three million” people “aren't working”.
In
summary, we're measuring unemployment the wrong way, and the official
unemployment rate (U3) is not the best way to measure the general
economic woes of the country as it pertains to obtaining quality
employment. Again, that's because U3 includes neither the
non-employed, the structurally unemployed, the seasonally unemployed,
non-attached workers, the underemployed, nor the homeless.
4. Working
Overtime
Ocasio-Cortez's
critics also took issue with her claims that “people are working
sixty, seventy, eighty hours a week”. Again, at no point did she
claim that the number of people who work long hours is at or near an
all-time high. Whether her critics have alleged she said that or not,
her critics are not wrong to point out that the
average number of hours worked per week is near its all-time low.
That
is correct; however, the Obama presidency saw an overall rise in
the average number of weekly hours worked. Under Obama, that number
did not quite rise to the numbers seen under Bill Clinton and George
W. Bush. For the past twenty years, the average number of hours
worked, has ranged between 34.25 and 34.5 hours, with a brief but
significant dip to 34 hours in 2009.
Average
weekly hours worked is near its all-time low, but nevertheless, it is
true that many people still do work sixty hours per week or more. I
work as a private security guard, and I do know people who work such
long hours like that. The fact that historically
few people
work long hours, should not distract from the fact that there
are many
individual human beings who
are working long hours; just like the fact that historically few
people work multiple jobs, should not distract from the fact that
there are many individuals who are working multiple jobs.
It
is certainly a good thing that many people work less than forty hours
a week, and the facts show that a 34-hour week is not only possible
but the norm. Weekly hours worked could be much lower, especially if
we utilize technology to its full potential and allow automation to
flourish. Nearly 250 years ago, Benjamin Franklin predicted that a
20-hour work week would soon be possible, and Franklin D. Roosevelt
declined to sign a bill that would have established a 30-hour work
week about 85 years ago.
Another
thing to consider is that low average
weekly hours worked, might not even be desirable, especially if it is
caused by policies that incentivize people to work fewer hours than
they want to. Examples of these policies include: 1) laws limiting
the number of consecutive days which may be worked (which can
negatively impact farm laborers); and 2) Obamacare's exemption of
“part-time workers” (defined as people who work less than 30
hours a week), a policy which arguably gave employers an incentive to
cut employees' hours in order to avoid being legally required to
provide them with health insurance.
5. Additional
Factors in Employment
Here
are some additional factors which indicate the general prospects of
the American people as it pertains to obtaining employment, which do
not directly relate to unemployment, but which affect non-employment
nevertheless.
First,
fewer people on unemployment benefits might simply mean that people
have stopped looking for work, and have declined to file for
unemployment benefits.
Second,
lower unemployment numbers could also mean
that more people have given up trying to become self-employed, given
up trying to start their own businesses, and given up trying to make
money through investments. In general, that they given up looking for
other ways to get by without selling their labor to an employer
(which arguably indicates desperation to
find a job; desperation to
prostitute themselves to potential employers by giving up rights to
organize on the job, rights to full pay, etc.).
Third,
even if it were true
that the economy is fine, and that the low unemployment rate reflects
that, then more people having jobs is
still not
necessarily a good thing. Remember, a lot of the jobs people are
getting, are jobs in industries that were given multi-trillion dollar
bailouts just a decade ago. The jobs might be in industries which are
being favored and privileged and bailed-out by the Trump
Administration.
The
jobs might be in industries which are destroying our environment for
profit. Maybe some of those jobs aren't all they're cracked up to be.
The employees at the job in question might be overworked. The
employees might be working multiple jobs, or might hope for full
hours or raises, so that they can avoid taking on a second job. The
workplaces might have safety and health hazards. Not every job is
respectable; not every job saves lives; and not every job and
industry should be subsidized, protected, and bailed-out by
taxpayers.
Alexandria
Ocasio-Cortez is not “mad because people have jobs”, nor mad
because low unemployment numbers are accurate and prove her wrong.
She is “mad” (read: heartbroken) because when someone who already
has a job takes a job that somebody else needs, it doesn't change the
unemployment rate. Similarly, when someone who needs Food Stamps
loses them because the government throws them off, it's counted as a
success, as though they stopped needing Food Stamps and got off the
S.N.A.P. program voluntarily. And that affects people's ability
to feed themselves and their children.
There
are many
people,
who struggle to feed their families, whether they are working or not,
and whether they are on government assistance or not. Some people are
on government assistance even
though they have jobs;
not always because they're lazy and greedy, but often because their
job doesn't pay them what they need to subsist. Alexandria
Ocasio-Cortez is in the spotlight now because the electorate is ready
to hear from a candidate who considers these issues to be serious
problems, even if these problems are not as bad as they have ever
been.
President Donald J. Trump,
explaining why unemployment and the economy are doing just fine
Sources
http://www.slate.com/blogs/moneybox/2015/08/20/donald_trump_says_the_real_unemployment_rate_is_42_it_s_not.html
http://ritholtz.com/2012/10/u3-versus-u6/
http://ritholtz.com/2012/10/u3-versus-u6/
Visit the Following Links to Read My Previous Articles on Unemployment
http://aquarianagrarian.blogspot.com/2018/02/reflection-upon-use-of-forced-labor.html
Written
on July 4th,
20th,
26th,
and 27th,
and August 1st through
4th,
and 6th,
2018
Originally
Published on August 6th, 2018
Table of Contents and Aquarian Agrarian Links Added on August 8th, 2018
Table of Contents and Aquarian Agrarian Links Added on August 8th, 2018
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