Social democracy and equal opportunity

John Quiggin43 Comments

 

My critique of Tyler Cowen’s post arguing the unimportance of social mobility has started off, or maybe merged into, of those old-fashioned blog firestorms we used to have back in the day, now also reticulated through Twitter – a few links here, here and here. But rather than criticise Cowen further, I thought I would try to work through the bigger issues involved from a social democratic perspective[1].  In particular, as discussed in comments here, should social democrats favor policies to enhance social mobility, or does mobility between generations make inequality even worse, for example by justifying what appears as meritocracy?

 

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How (not) to defend entrenched inequality

John Quiggin46 Comments

The endless EU vs US debate rolls on, but now with an odd twist. Although the objective facts about economic inequality, immobility and so on are far worse in the US than the EU, the political situation seems more promising. (I’m not talking primarily about electoral politics but about the nature of public debate.)

In the EU, the right has succeeded in taking a crisis caused primarily by banks (including the central bank, and bank regulators) and blaming it on government profligacy, which is then being used to push through yet more of the neoliberal policies that caused the crisis. And, as we’ve just seen, formerly social democratic parties like New Labour in the UK, are pushing the same line.

By contrast the success of Occupy Wall Street have changed the US debate, in ways that I think will be hard to reverse. Once the Overton window shifted enough to allow inequality and social immobility to be mentioned, the weight of evidence has been overwhelming.

This post by Tyler Cowen is an indication of how far things have moved. Cowen feels the need, not merely to dispute some aspects of the data on inequality and social mobility in the US, but to make the case that a unequal society with a static social structure isn’t so bad after all.
Update Cowen offers a non-response response here. Apparently, disliking arguments for inherited inequality, such as his point 3 (because of habit formation, social mobility reduces welfare) is a “Turing test” for reflexive leftism.

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Not with a bang, but a whimper

John Quiggin55 Comments

Gillard’s abandonment of pokies reform means, as far as I can see, that she has reached the end of the set of reforms she promised as the price of independent support after the 2010 election. Most of the agenda she inherited from Rudd has similarly been either implement, or put on the road to implementation, (typically in a watered-down form) or else abandoned. A visit to the ALP website seems to me to confirm this impression. There are plenty of glossy pictures, but the ideas seem mostly to be taken from Rudd, though drastically watered down in most cases, for example, “School Reform” in place of “Education Revolution”. The only thing that sounds more like Gillard than Rudd is “Trade Cadetships” which reads like a rebadging of Howard’s “New Apprenticeships”.

Can anyone point to any genuinely new initiatives taken by this government (that is, not forced on it, or inherited)? It would be nice to think that there is something more on offer than “Not Abbott”.

Not enough votes = broken promise? (Update: as it turns out, yes)

John Quiggin52 Comments

Update With brilliant timing, I wrote this post the day before Gillard announced that she was in fact breaking her promise, and would not bring the legislation to a vote. Presumably she had already signalled this to the media, which was why the accusations of a broken promise were being made, accurately if a little prematurely. Yet again, Gillard has lived down to my lowest expectations, while Abbott has (of course) been even worse End Update

Regular readers will know that I’m no fan of our current PM and a strong supporter of legislation to limit the damage caused by pokies and other forms of gambling that rely primarily on problem gamblers for their viability. And, having been overseas for much of last year, there may be some political nuances I’m missing.[1]

Still, I can’t see how Gillard can be accused of breaking a promise to Andrew Wilkie on pokies on the basis that she has failed to get the numbers for it. On that basis, for example, Rudd broke his promise on an ETS, not when he dropped the idea under pressure from Gillard and the NSW right, but when the Senate rejected the legislation. And every government in recent history has made election promises then had their proposals rejected in the Senate (the silly idea of a mandate, supposed to require the Senate to acquiesce in government legislation, never had any effect on this). Occasionally, such rejections lead to the PM being criticised for lacking negotiation skills. But I’ve never before seen such a case treated as a broken promise.

fn1. Most obviously, it might be that the government is secretly encouraging other independents to oppose the law. I haven’t seen any suggestion to this effect, but it’s about the only thing that would make sense of the “broken promise” claim.

The Internet is like a million-page a second photocopier (or is that a series of tubes)

John Quiggin8 Comments

Not long ago, I read Daniel Ellsberg’s[1] autobiography, Secrets, and also watched the film, The Most Dangerous Man in America. A striking feature of the book was that Ellsberg’s biggest problem in leaking the Pentagon Papers was the logistical difficulty of making 20 or so copies of a 7000 page cache of documents. It took him and a couple of helpers several months, IIRC. 

Now of course, such a task is easy, as demonstrated by Ellsberg’s successor (allegedly Bradley Manning) who supplied vast quantities of classified documents to Wikileaks. On the other hand, if Ellsberg had been 20 or so years earlier, he wouldn’t even have been able to make a single copy. [2]

The blackout yesterday as a protest against SOPA and PIPA reflects a simple fact about the Internet – it is, in essence a way of making and distributing vast numbers of copies of documents of all kinds.

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Cars

John Quiggin59 Comments

Last week I got an urgent request from the Fin for a quick-turnaround piece on the latest plan to save the car industry. I got it done within a few hours, and planned to post it here. Alas, I was as slow in doing this as I had been fast in writing the original piece (over the fold)

In the meantime, Sinclair Davidson at Catallaxy took exception to my observation that the mining industry’s nearly-free access to minerals under both private and public land was a bigger subsidy than anything the motor vehicle industry got. In support of the miners, he quoted Mitch Hooke of the Mining Council as saying

He said the proposed new tax would hit the mining industry with such a sledgehammer that it would destroy value, deter investment, reduce growth, and affect every mum and dad who has shares of equity or provides goods.

Of course, if you deleted “tax” and put in “tariff cut”, that’s exactly the same as what the representative of every industry demanding continued tariffs or subsidies has said.

What’s striking about this is the tribalism involved. As I demonstrate in the article, as far as economic efficiency is concerned, the effects of current levels of assistance to the car industry are third-order. Yet the political/cultural right denounces the car industry, while defending rent-seekers like Hooke.

This is part of a more general phenomenon on the right that I will post more on later. It’s taken for granted on the cultural right that some technologies and industries (nuclear power, oil, finance) are good and others (wind energy, electric cars, Hollywood) are evil – essentially a mirror image of what they think we on the left think. For people who are supposed to believe in the free market, this is a big problem.

Argument stuck in second gear

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