Category Archive 'Redistribution'

25 Jan 2013

The Democrat Elite and the Post-Industrial American Future

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Walter Russell Mead describes the democrat elite’s vision of the future: a massive system of redistributionism devoted to trickling down condescending alms to a nation of losers from a tiny meritocratic New Class elite which rules over all.

A conventional, widely shared view informs the way that blue America looks at that future. This view holds that the death of industrial society means the death of the mass middle class. When millions of people can’t make a living “making stuff” in factories anymore, wages for the unskilled will fall. America will be increasingly polarized between a small group of high skilled creative professionals and a larger group scavenging a living by serving them: mowing their lawns, catering their parties and so on.

Those who think that the blue model needs to be preserved and extended into the future (including, I think, our current president and most of his top allies and advisors), tend to think that under those conditions we will both need and be able to afford an ever-more active redistributive state. The tycoons and the very successful minority will be so rich, thanks to their continuing gains from globalization and technological change, that they can pay progressively higher taxes to fund basic services and middle class jobs for enough of the rest of the country that something like a middle class society can be preserved. From this perspective, a government-funded health care system is more than a method of delivering health care: it is a way of providing protected, blue-model type jobs when the factories have mostly disappeared.

Read the whole thing.

24 Oct 2011

How Do You Like the Revolution Now, Comrade?

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The New York Post reports that some of the demonstrators Occupy’ing Wall Street are experiencing the joys of socialist redistribution by government firsthand. I guess this Smith guy never read “Dr. Zhivago” or “Atlas Shrugged.”

Even in Zuccotti Park, greed is good.

Occupy Wall Street’s Finance Committee has nearly $500,000 in the bank, and donations continue to pour in — but its reluctance to share the wealth with other protesters is fraying tempers.

Some drummers — incensed they got no money to replace or safeguard their drums after a midnight vandal destroyed their instruments Wednesday — are threatening to splinter off.

“F–k Finance. I hope Mayor Bloomberg gets an injunction and demands to see the movement’s books. We need to know how much money we really have and where it’s going,” said a frustrated Bryan Smith, 45, who joined OWS in Lower Manhattan nearly three weeks ago from Los Angeles, where he works in TV production.

Smith is a member of the Comfort Working Group — one of about 30 small collectives that have sprung up within OWS. The Comfort group is charged with finding out what basic necessities campers need, like thermal underwear, and then raising money by soliciting donations on the street.

“The other day, I took in $2,000. I kept $650 for my group, and gave the rest to Finance. Then I went to them with a request — so many people need things, and they should not be going without basic comfort items — and I was told to fill out paperwork. Paperwork! Are they the government now?” Smith fumed, even as he cajoled the passing crowd for more cash.

The Finance Committee dives on whatever dollars are raised by all the OWS working groups, said Smith, and doesn’t give it back.

The Comfort group has an allowance of $150 a day, while larger working groups, like the Kitchen group, get up to $2,000.

“What can I do with $150?” said Smith. “We have three tons of wet laundry here from the rainstorm — how do I get that done? We need winter gear, shoes, socks. I could spend $10,000 alone for backpacks people need. We raise all this money. Where is it?”

Read the whole thing. It’s a hoot.

23 Sep 2011

Dropping the Mask

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Charles Krauthammer explains the president’s recent tax proposal. This is politics, but it’s not only politics, this is the real Barack Obama.

A most revealing window into our president’s political core: To impose a tax that actually impoverishes our communal bank account (the U.S. Treasury) is ridiculous. It is nothing but punitive. It benefits no one — not the rich, not the poor, not the government. For Obama, however, it brings fairness, which is priceless. …

Obama has actually gone and done it. He’s just proposed a $1.5 trillion tsunami of tax hikes featuring a “Buffett rule” that, although as yet deliberately still fuzzy, clearly includes raising capital gains taxes.

He also insists again upon raising marginal rates on “millionaire” couples making $250,000 or more. But roughly half the income of small businesses (i.e., those filing individual returns) would be hit by this tax increase. Therefore, if we are to believe Obama’s own logic that his proposed business tax credits would increase hiring, then surely this tax hike will reduce small-business hiring.

But what are jobs when fairness is at stake? Fairness trumps growth. Fairness trumps revenue. Fairness trumps economic logic.

Obama himself has said that “you don’t raise taxes in a recession.” Why then would he risk economic damage when facing reelection? Because these proposals have no chance of being enacted, many of them having been rejected by the Democratic-controlled Congress of Obama’s first two years in office.

Moreover, this is not an economic, or jobs, or debt-reduction plan in the first place. This is a campaign manifesto. This is anti-millionaire populism as premise for his reelection. And as such, it is already working.

Obama’s Democratic base is electrified. On the left, the new message is playing to rave reviews. It has rekindled the enthusiasm of his core constituency — the MoveOn, Hollywood liberal, Upper West Side precincts best described years ago by John Updike: “Like most of the neighborhood, she was a fighting liberal, fighting to have her money taken from her.”

Added Updike: “For all her exertions, it never was.” But now with Obama — it will be! Turns out, Obama really was the one they had been waiting for.

That is: the new Obama, today’s soak-the-rich, veto-threatening, self-proclaimed class warrior. Except that the new Obama is really the old Obama — the one who, upon entering office in the middle of a deep economic crisis, and determined not to allow “a serious crisis to go to waste” (to quote his then-chief of staff), exploited the (presumed) malleability of a demoralized and therefore passive citizenry to enact the largest Keynesian stimulus in recorded history, followed by the quasi-nationalization of one-sixth of the economy that is health care.

Considering the political cost — a massive electoral rebuke by an infuriated 2010 electorate — these are the works of a conviction politician, one deeply committed to his own social-democratic vision.

That politician now returns. Obama’s new populism surely is a calculation that his halfhearted feints to the center after the midterm “shellacking” were not only unconvincing but would do him no good anyway with a stagnant economy, 9 percent unemployment and a staggering $4 trillion of new debt.

But this is more than a political calculation. It is more than just a pander to his base. It is a pander to himself: Obama is a member of his base. He believes this stuff. It is an easy and comfortable political shift for him, because it’s a shift from a phony centrism back to his social-democratic core, from positioning to authenticity.

The authentic Obama is a leveler, a committed social democrat, a staunch believer in the redistributionist state, a tribune, above all, of “fairness” — understood as government-imposed and government-enforced equality.

That’s why “soak the rich” is not just a campaign slogan to rally the base. It’s a mission, a vocation. It’s why, for all its gratuitous cynicism and demagoguery, Obama’s populist Rose Garden lecture on Monday was delivered with such obvious — and unusual — conviction.

He’s returned to the authenticity of his radical April 2009 “New Foundation” address (at Georgetown University) that openly proclaimed his intent to fundamentally transform America.


In a 2001 NPR, State Senator Barack Obama complains of constitutional constraints on redistributive change.


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