Living in the 70s* (repost from CT)

John Quiggin114 Comments

A bunch of standard measures of US economic wellbeing (median household income, real wages for workers with high school education, educational attainment by age 25 and so on) show strong improvement from 1945 to the early 1970s, followed by stagnation or very slow growth thereafter. A variety of arguments, have been put forward to suggest that the standard statistical measures understate improvements in wages, incomes and so on since the 1970s. Some of these arguments are valid (for example household size has fallen), some not (for example, the fact that we now have more of goods that have become relatively cheaper). Regardless of validity, the main reason people believe these arguments is that, for anyone who was around at the time, it seems implausible that our parents’ living standards in the 1970s were comparable to our own today (assuming roughly similar class positions)

This reasoning is invalid for a reason that should be familiar to those on the conservative side of debates over inequality. The measures mentioned above compare snapshots of incomes at different times. But (as conservatives regularly point out) standards of living are determined mainly by lifetime incomes, not by income in any particular year. Given the pattern described above, lifetime income for someone who worked, say, from 1940 to 1985 was well below that for someone in a similar class position who started work in 1970, just when the long increase in real wages was slowing for most and stopping for some. For every year of their working life, the 1970 starter gets a wage (adjusted for age, education and so on) that’s as high as the maximum attained by the 1940 starter after 30 years of steady growth. Unsurprisingly, that translates into a bigger house, and more of most items that require savings, whether or not their price has risen relative to the CPI.

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The Oz as a (dysfunctional) group blog

John Quiggin108 Comments

The latest round of controversy between Robert Manne and The Australian has followed a pattern that is now familiar. Manne presents the evidence that The Australian routinely distorts the news to fit its political agenda, and equally routinely denies that it has any such agenda. The Oz responds with a stream of opinion pieces, snarky items in Cut and Paste, objectionable cartoons and so on.

If we try to understand this in old media terms, it’s a bit hard to follow. Not only does the Oz violate basic rules like separation between news and opinions, but its reactions seem absurdly oversensitive. As I and others have demonstrated many times now, a single piece of criticism from a relatively obscure academic can drive the country’s only national newspaper (not counting the Fin with its special focus) into absurd paroxysms of rage.

On the other hand, if you think of the Australian as a rightwing group blog (readers can fill in their own examples), everything makes sense.

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Socialised health care as feasible utopia (crosspost from CT)

John Quiggin69 Comments

As I’ve mentioned a few times, I got a lot out of Erik Olin Wright’s Envisioning Real Utopias, and am still hoping our long-promised book event comes to fruition. The general idea of the book was in line with my thinking that technocratic rationality, of the kind offered by, say Obama or Blair, is not a sufficient answer to the irrationalist tribalism of the right – the left needs a transformative vision to offer hope of a better life, both for the increasing proportion of the population in rich countries who are losing ground as a result of growing inequality and for the great majority of the world’s population who are still poor by OECD standards[2]. So, Utopia matters.

But it’s just as important that utopia be feasible. Utopia as a dream may be comforting, but is unlikely to inspire effective political action. And attempts to implement a utopia that isn’t feasible are bound to end in failure, quite possibly disastrous failure, as the experience of communism showed us.

So, my idea was to think about what kind of transformative vision might be both feasible, and capable of inspiring effective action. I had a first go at this here and here, in relation to education.

Turning to health care, we could start with a utopian ideal where everyone got all the health care that could benefit them. But that would be utopian in the pejorative sense – the scope for expanding health services is effectively infinite, and the resources available to society are not.

Thinking about feasible utopia, on the other hand, it seems to me that the system of socialised health care in modern social democracies is not a bad model. That is, if all of society worked like the health care system at its best, we could regard the political project of social democracy as a success.
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Out of the Crooked Timber of Humanity, no Straight Thing was ever Formed

John Quiggin18 Comments

That’s the tagline of Crooked Timber, the group blog of which I’ve been a member for quite a few years. I knew that it was quoted by Isaiah Berlin as a translation of something written by Kant, but I’ve never, until yesterday, seen it in a more complete context. That’s when I finally stumbled across Berlin’s, The Crooked Timber of Humanity, Chapter 1 of which ‘The Decline of Utopian Ideas in the West’ ends as follows

a liberal sermon which recommends machinery designed to prevent people from doing each other too much harm, giving each human group sufficient room to realise its own idiosyncratic, unique, particular ends without too much interference with the ends of others, is not a passionate battle-cry to inspire men to sacrifice and martyrdom and heroic feats. Yet if it were adopted,it might yet prevent mutual destruction, and, in the end, preserve the world. Immanuel Kant[1], a man very remote from irrationalism, once observed that ‘Out of the crooked timber of humanity no straight thing was ever made.’ And for that reason, no perfect solution is, not merely in practice, but in principle, possible in human affairs, and any determined attempt to produce it is likely to lead to suffering, disillusionment and failure.

Broadly speaking, I’m sympathetic to what Berlin is saying here. Revolutionary utopianism has been a disaster, particularly for the left. But, we still need a feasible version of utopia to oppose to the appeal of irrationalist tribalism and the naked self-interest of the top 1 per cent. And, whatever Berlin may have intended by it, “prevent people from doing each other too much harm” should not mean leaving the rich to enjoy the fruits of a system constructed in their own interests, and letting the devil take the hindmost.

A social democratic and feasible utopia should giving all human beings (individually and as a member of various groups) sufficient room and resources to pursue their own idiosyncratic, unique, particular ends with a reasonably equal capability of achieving ends that are feasible given the resources available to society as a whole.

It’s hard to spell out what that means, but I think easy enough to see that developed societies were moving in that direction, broadly speaking, until the 1970s, and are mostly moving away from it today (with some exceptions in areas like gay rights). The failure of the market liberal model to deliver on its promises, evident in the global financial crisis, along with the current struggle over austerity provides an opportunity to recover some of the ground lost in the last thirty years while, hopefully preserving the gains.

fn1. As in many such cases, our blog’s name and tagline owe at least as much to Berlin’s translation as to Kant’s original.

After Gillard

John Quiggin186 Comments

I’m not always in tune with the political zeitgeist, but my decision to run a post advocating a dignified resignation for Julia Gillard was made just ahead of the rush. Of course, the option of voluntarily stepping aside has now been foreclosed. When Gillard goes (I don’t think there’s a remaining question of “if”) it will be as a result the usual messy and unpleasant process of assembling a sufficient number of votes (not necessarily a majority) to render her position untenable.

Both because I don’t want to see any last-minute stuffups, I hope the carbon tax and mining tax legislation is passed before she goes. Certainly, whether or not she supported these measures, she did the hard yards to get them through.

On the question of her replacement, I had previously dismissed Rudd, on the basis that his abrasive personality and micro-management tendencies (not apparent in his public persona, but well-attested) would make him unacceptable to his colleagues. However, the High Court decision on asylum seekers changes all that. Rudd has more credibility on this issue than anyone else in the party. Labor has no choice but to revert to a more humane position and stress the point that the Court decision undermines Abbott as well as Gillard. It now seems highly unlikely that a policy based on long-term detention of people who have already been assessed as refugees can stand up, wherever they are held.

Stephen Smith seems like the natural choice for deputy, and it would be sensible to find a ministerial spot for Gillard, all of which would permit a reshuffle.

No one can tell for sure, but I think the return of Rudd would put the spotlight on Abbott’s total fraudulence, maybe even paving the way for the Rudd vs Turnbull election we should have had last time.

Scandal

John Quiggin72 Comments

I’ve never been a big fan of scandals, but occasionally you can’t ignore them. That’s true of the scandals currently afflicting the Labor government. As regards the Thomson accusations, if he is guilty he should resign his seat and will in any case be forced to do so if convicted. That will probably end the government if it happens, but there’s not much I can add in the way of political analysis.

The accusations against Julia Gillard published, and quickly retracted, by The Australian under Glenn Milne’s byline are a different matter. Not only has the content of the retracted article become public knowledge, but News Limited appears to be walking back from what at first appeared to be an unreserved apology, notably in comments by Hartigan and in Andrew Bolt’s column on the topic.

In these circumstances, Gillard has no alternative but to disprove the allegation that she derived a financial benefit, even unknowingly, from the fraud committed by her former boyfriend. That seems like a pretty clear-cut question of fact, which should admit a resolution even nearly 20 years after the event.

On the other hand, if the falsehood of the allegation can be proved, the case that News Limited in Australia is playing the same dirty tricks as its UK and US operations becomes all that much stronger, as does the case for treating the entire organisation as a political propaganda/lobbying operation rather than a newspaper publisher in the traditional sense. And, of course, Gillard would have a very strong case for defamation.

All of this pretty much kills my suggestion for a graceful exit by Gillard after the passage of the carbon tax. Until she can put this one to rest, a resignation would look like an admission of guilt.

Light blogging ahead

John Quiggin11 Comments

Because of writing and travel commitments, I’ll be blogging less frequently for the next few months. I’ll try to put up some open threads – please keep discussion on these threads civil and friendly, so that I don’t have to intervene in their management.