This Makes Me Happy

There's an economic success story that neither the Democrats nor the Republicans want to acknowledge: low wage workers have doubled their wages in the last five years.

Democrats can't talk about this as progress because they are loath to admit that anything good can happen during the Trump presidency. That's silly, because the President doesn't have that much power and influence over the economy to begin with. Trump has hindered the economy with his trade wars and the general insanity and uncertainty around his policy. Markets like stability. That's enough to condemn Trump. 

Republicans can't talk about the success of low wage earners because their wage increase is mainly due to regulated minimum wage increases. This is anathema to dyed-in-wool conservatives. State and federal mandated minimum wage increases-- according to supply-side conservatives-- will destroy the labor market, make people lose jobs, ensure that there will be less jobs in total, destroy small businesses, and redistribute income until we are a socialist commune. Conservative logic dictates that the job market should not be so tight, because of this enforced wage increases. 

But it is. So the Republicans won't bask in the glory of low wage increases because it contradicts their favorite economic theory.

Instead, we get stories of wage stagnation, despite the tight job market. That's because middle class wages are stagnant, and middle class people are the people who matter. They are the voters. And the people who matter haven't seen wage increases, despite the tight job market. 

But income is getting redistributed, and poor people are less poor, and that means they can take part more in the economy. That's a good thing for a lot of people, not just low wage earners. But nobody in politics is going to admit it.

Progress.

Good for everyone except the media and the politicians.

 

Sentence of Dave: Two Paragraph Edition

Franklin Foer begins his essay collection of selections from the New Republic (Insurrections of the Mind: 100 Years of Politics and Culture in America) with a piece from 1914-- World War I had just begun-- by Rebecca West (who wrote the massive Black Lamb and Grey Falcon, a travelogue and history of the Balkans) and while she's ostensibly speaking about literary criticism, there's a lot more going on and I certainly agree that "the mind must lead a more athletic life than it has ever done before" to grapple with what's happening in our country and our planet . . . I feel like I have been stumbling across bad news everywhere I turn-- I don't really follow the news day-to-day, but when I catch up, it's all bad-- I hadn't heard about Trump's stubborn refusal to lower the flag to half mast for John McCain until after it happened and it just mad me embarrassed and sad, and then I listened to "The Measure of a Tragedy" about Venezuela's economic implosion-- inflation has been so rampant that working a day at minimum wage (which is the median salary for the country) can buy you 900 calories (in the US, working a day at minimum wage can buy you over 100,000 calories) and so Venezuelans have lost, on average, 24 pounds and there is a mass migration of Syrian proportions out of the country, and then I listened to the new episode of The Weeds, about how we've lowered all our immigration numbers-- despite what's happening (and I'm still angry and sad about what happened to my cleaning lady and her husband, who are being sent back to Nicaragua despite the fact that they've had work-permits since 2006 and have kids in the school system and parents and sisters who are citizens-- they are a hard-working couple and a boon to the economy, but the government is over a decade behind on dealing with citizenship applications) and then there's all the environmental stuff-- permanent ice in Greenland is gone, Trump is pushing coal despite carbon emissions and particulate matter pollution, we could have curbed global warming back when George H.W. Bush was president-- he was a proponent and wanted the world to cooperate-- but then things got political and the lobbyists won out (listen to this episode of The Daily to learn about this lost moment in time) and --like with smoking-- we plunged into a corporate fueled era of darkness and denial . . . but like with smoking, there is hope that the science will eventually prevail, just not any time soon . . . anyway, here are the first two paragraphs of "The Duty of Harsh Criticism," her words are far more powerful than mine:

Today in England we think as little of art as though we had been caught up from earth and set in some windy side street of the universe among the stars. Disgust at the daily deathbed which is Europe has made us hunger and thirst for the kindly ways of righteousness, and we want to save our souls. And the immediate result of this desire will probably be a devastating reaction towards conservatism of thought and intellectual stagnation. Not unnaturally we shall scuttle for safety towards militarism and orthodoxy. Life will be lived as it might be in some white village among English elms; while the boys are drilling on the green we shall look up at the church spire and take it as proven that it is pointing to God with final accuracy.

And so we might go on very placidly, just as we were doing three months ago, until the undrained marshes of human thought stirred again and emitted some other monstrous beast, ugly with primal slime and belligerent with obscene greeds. Decidedly we shall not be safe if we forget the things of the mind. Indeed, if we want to save our souls, the mind must lead a more athletic life than it has ever done before, and must more passionately than ever practise and rejoice in art. For only through art can we cultivate annoyance with inessentials, powerful and exasperated reactions against ugliness, a ravenous appetite for beauty; and these are the true guardians of the soul.

Why Do We Walk So Far For Ice Cream?

The Median Voter Theorem-- an idea based on Harold Hoteling's theory of spatial competition, which Anthony Downs linked to the U.S. two party political system-- makes perfect logical sense; both ice cream trucks (or political parties) should move toward the middle of the block to capture the median voter (while still being the closest and most appetizing option for the extreme voters as well) and thus the two parties should move closer and closer together (while still remaining discernible) but for various reasons that Tyler Cowen outlines in his new book, reasons such as lobbyists, stasis, financiers, entrenched budgets, complacent participation in democracy and elections, the lack of meaning behind most policy, entrenched budgets and discretionary spending, and a bunch of other shit, this rational model doesn't apply any longer . . . and this is really really strange and means that the polarized political world that we now live in is much weirder than you might imagine . . . so watch the video, and then come up with your own theory on why we're completely insane and willing to walk a really long way for ice cream, and if you really want to be depressed (and intrigued) by stasis and stagnation, and the possibility of an apocalyptic reset that will not only drain the swamp, weed the garden, and possibly set fire to the wicked, read Tyler Cowen's fantastic, precise and intelligent book The Complacent Class: The Self-Defeating Quest for the American Dream, and if you're looking for something more metaphorical, literary, and Southern Gothic, then check out the podcast S-Town . . . but be careful about digesting them in combination, as you'll be in for an ugly ride.

Favelas and Futebol at the Copa

Juliana Barbassa's book Dancing With the Devil in the City of God: Rio de Janeiro on the Brink is a frustrating and fascinating tour of Brazil's most celebrated city . . . you journey from the beautiful but polluted beaches to the lucrative but labyrinthine real-estate system to the seediest of brothels-- "at a place called Vanessa's Bar, the prices were posted on the wall, starting at $15 dollars for 15 minutes of straight-up oral or vaginal sex with protection"-- Barbassa details the history of the favelas (made famous in the awesome film City of God) and the slow improvements, including the firefights between police and gangs -- especially the Red Command-- and the UPP, police units stationed inside the shanty towns . . . and the current dilemma: the ongoing battle between the residents of the favelas and the city, which is preparing for the 2016 Olympics and attempting to raze many of the shantytowns; the Olympic Park is moving out into the far western suburbs of the city and there are caimans on the golf course and terrible sanitation and sewage problems, but Brazil managed to get it together for the World Cup, and Barbassa has faith that they will figure this one out as well; her chapter on living on Brazil during the cup is fantastic, especially her description of the awful 7-1 semi-final loss to Germany; she sat with her relatives and cousins and watched "dumbfounded" as the players came forward; team captain David Luiz spoke for all of them when he said, "I'm sorry everyone, I just wanted to give my people something to be happy about," and that is the theme of the book: the Brazilians are an emotional society that wants to live in the moment and be happy, partying on the beach, drinking beer in the street, dancing in costume to the samba during Carnival, but they are also realizing that to take a major place on the world stage takes planning and foresight, and they are slowly, with lots of bumps and hiccups, learning to do that as well; the book is excellent and really makes you appreciate living in America, which may not be the most efficient, most environmentally pristine country, but it sure beats the byzantine corruption, pollution, and class stagnation that Brazil is trying to overcome . . . the book ends on a hopeful note, and I think all the world is rooting for Rio to get cleaned up and do a fantastic job hosting the Olympics (except, perhaps, for the Uruguayans, who still relish their upset victory over Brazil in the 1950 World Cup in Rio and are angry that no one ever considers them for hosting major world events).

A Tough Fruit to Digest

I highly recommend Tyler Cowen's e-pamphlet The Great Stagnation: How America Ate All the Low-Hanging Fruit of Modern History, Got Sick, and Will (Eventually) Feel Better . . . it is a quick read with a powerful thesis: we are not as rich as we think we are . . . and the stuff that made us feel rich in the first place, the low hanging fruit we grabbed and ate, is pretty much a thing of the past -- there is no more free and cheap land, the major strides in public education happened last century (at the beginning of the 20th century, very few people went to school or university -- intelligent or not --and Cowen argues that we have reached an age of diminishing returns in education . . . now everybody goes to school) and there haven't been many life changing scientific breakthroughs recently -- aside from the internet, which is a special case, because though it eases the shock of the stagnation, it is mainly free, and wonderful for those folks who are "intellectually curious, those who wish to manage large networks of loose acquaintances, and those who wish to absorb lots of information at phenomenally fast rates," and so though we still have our Constitution and relatively cheap fossil fuels, they are only two of the five . . . and in areas of great gain, such as financial innovation, these innovations do NOT translate into gains for the American people (and might translate into losses) as "recent and current innovation is more geared toward private goods rather than public goods," unlike the innovations of the 20th century: refrigeration, transportation, sanitation, mass communication, electricity . . . I agree with this, though the internet is super-neat, it pales in comparison to an indoor toilet, and I will still pay my plumber more to fix my pipes than I will pay for an internet connection.