Saturday, February 4, 2023

Are the Wealthy Trying to Save America by Killing Democracy?

 I find much that interests in Daily Kos' Is the Reason Some Wealthy People Oppose Democracy Deeper Than We Think?, but most importantly I think it answers a question I have every day at work: working class distrust, even resentment, of unions.

The middle class was out of control by the late 1960s, they believed, and something had to be done. There was too much democracy, and it was tearing America apart.

Looking back at the “solutions” England used around the time of the American Revolution (and for 1000 years before) and advocated by Edmund Burke and other conservative thinkers throughout history, Republicans saw a remedy to the crisis. As a bonus, it had the side effect of helping their biggest donors and thus boosting their political war-chests.

If working people, women, minorities, and students were a bit more desperate about their economic situations, these conservative thinkers asserted, then they’d be less likely to organize, protest, strike, or even vote. The unevenness, the instability, the turbulence of democracy in the 1960s would be calmed.

— To accomplish this, Reagan massively cut taxes on rich people and raised taxes on working-class people 11 times.

— He put a tax on Social Security income and unemployment benefits and put in a mechanism to track and tax tips income, all of which had previously been tax-free but were exclusively needed and used by working-class people.

— He ended the deductibility of credit-card, car-loan and student-debt interest, overwhelmingly claimed by working-class people. At the same time, he cut the top tax bracket for millionaires and multimillionaires from 74% to 27%. (There were no billionaires in America then, in large part because of FDR’s previous tax policies; the modern explosion of billionaires followed Reagan’s massive tax cuts for the rich.)

— He declared war on labor unions, crushed PATCO in less than a week, and over the next decade the result of his war on labor was that union membership went from about a third of the American non-government workforce when he came into office to around 10% today.

— He brought a young lawyer named John Roberts into the White House to work out ways to overturn the 1973 Roe v Wade Supreme Court decision. His VP brought in his son, George W., to build bridges between the GOP and the most fanatical branches of evangelical Christianity, who opposed both women’s rights and the Civil Rights movement.

— He and Bush also husbanded the moribund 1947 General Agreement on Tariffs and Trades (GATT, which let Clinton help create the WTO) and NAFTA, which opened a floodgate for American companies to move manufacturing overseas, leaving American workers underemployed while cutting corporate donor’s labor costs and union membership.

Stability sounds like stagnation to me.

sch 1/19

 

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