The 2006 Mid-term Elections have turned the American political and policy worlds upside down – or, may be right side up. Earlier this year, two of our friends and extremely bright economists authored two very accessible tracts on making the American economy a bit more just and decent. The chances of their proposals becoming reality are lots higher today. The first that I will discuss is Dean Baker’s The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer.
Designed to document that the rich and affluent are far from opposed to government in its totality, the work builds its case that “rich march on Washington all the time” (to quote the late, independent journalist I. F. Stone). Many of the examples are not surprising – the role of the fed in disciplining uppity workers by almost solely focusing on preventing inflation and accepting higher levels of joblessness for the poor, minorities, and the economically struggling, torts and takings, tax loopholes, inflated CEO pay, et cetera. But every issue is dispatched clearly, professionally, and humorously. The Conservative Nanny State also covers a variety of topics in unique ways. Rather than defending union protectionism, Baker lays out the ways and means that affluent professionals, such as doctors and attorneys, use governmental power to curb foreign overseas competition and immigration. He deals with patent and copyright laws in an illuminating way and outlines policy changes with better trade-offs. The protections that the recently passed bankruptcy law provides the wealthy and not the middle and working classes, the poor and dislocated workers, the unhealthy and the injured gets Baker’s typical lucid, but hard-hitting attention. Lastly, you get your money’s worth, if you only read the introduction, which boasts a clever discussion of government versus markets that if widely used is guaranteed to make some good sound-bites and may be, just may be shift the terms of the debate a tad. (The book is available from the Center for Economic and Policy Research at www.cepr.org as a free download or in bound form for a modest price.)
Jared Bernstein’s All Together Now: Common Sense for A Fair Economy is his Tom Paine-ish call for giving all Americans a fair shake and stake in today’s unruly economy. Bernstein’s primary message is solidarity – WITT (“We’re in this together”) versus YOYO (“You’re on your own.”). The book offers a strong, but reasonable case for government, offers some interesting ideas about why anti-government opinion is so high, and summarizes the literature on the “fortunes” of the average working family. (It’s not pretty.) Bernstein concludes the book with an excellent argument for a renewed commitment to full employment, as well as marshals lots of numbers on behalf of defending a variety of our safety net programs. All Together Now sells for $12 and is published by Berrett-Koehler Publishers at www.bkcurrents.com .