Tuesday, October 2, 2012

The Joy of Redistribution

The debate over reallocating our collective resources is at the heart of the Obama-Romney race

Robert Herold

Having insulted and written off 47 percent of the population as deadbeats, running out of time and desperate to find some angle — some wedge issue that might improve the dismal news coming from all the polls — Mitt Romney has denounced President Obama for favoring “redistribution.” We all know that’s a Republican code word for “class warfare,” a bridge to “socialism” and a doff of the ideological hat to “losing the America we love.”

Romney knows that he faces an uphill fight. He is way down among young people, women, blacks and Hispanics and is burdened further by having to defend Paul Ryan’s budget, even as he attempts to distance himself from it. Nor has he gained any traction with his outrageous charge that Obama should be blamed for the death of our Libyan ambassador. Frankly, it makes no more sense to blame Obama for the terrorist attack on the consulate than to have blamed Ronald Reagan for the 1983 terrorist attack on the barracks that killed 241 Marines.

And now we learn of widespread Republican voter suppression efforts. The RNC has fired Strategic Alliance, the party’s long-time campaign consulting firm that is in the middle of the foul play.

So now comes Mitt’s issue du jour: “Redistribution.” Won’t fly. To quote the conservative columnist, George Will: “Is Romney kidding?” Indeed.

Consider just a few of the ways that the United States, just since the passage of the 16th Amendment in 1913, has promoted “redistribution.” What else is progressive taxation but redistribution? Some pay higher rates, some pay less.

Public education is “redistributive” — childless folks pay taxes so that kids of others can go to school. And then there are all those subsidies. The Columbia Basin, for example, is one giant political bag of redistribution in the form of subsidies: farm subsidies, barge industry subsidies, energy subsidies, water subsidies.

How about business “tax breaks” — they’re all redistributive. Medicaid is both a subsidy and redistributive. The deduction of interest on home loans is redistributive.

Oh, and about those home interest deductions? How about class warfare in reverse? Consider that we make no distinction between starter homes and what Dolores Hayden in her book, A Field Guide to Sprawl, terms “Starter Castles.” She points out that not only do owners of these “starter castles,” engaged in what Thorstein Veblen famously termed “conspicuous consumption,” get to deduct massive interest payments, they also get to deduct local property taxes.

But it isn’t just the wealthy who benefit from redistribution. Given that Medicare isn’t paying its freight at this time, the elderly can consider themselves beneficiaries of redistributive policies.

Perhaps the most lopsided redistribution of all: I give you the affluent states vs. the poor states, which I’ve written about before. When California gets back about 78 cents on every tax dollar it sends to Washington, D.C., and Mississippi gets back well over $2 for every tax dollar it pays (and we see this pattern throughout the country) — if that isn’t redistribution, what is?

The truth of the matter is that redistribution is as American as apple pie.

In his acceptance speech, President Obama spoke indirectly to the “redistribution” question by reframing it: “But we also believe in something called citizenship — a word at the very heart of our founding, at the very essence of our democracy; the idea that this country only works when we accept certain obligations to one another, and to future generations.”

Citizenship went out of style back in 1981 when Reagan told the American public that government was the problem. With the attack on government came a broader attack on the idea of “the public,” from which we derive the terms of citizenship. Private was in, public was out. Citizenship, after all, implies life in the polis — in the public realm, the community.

And community is what we might call the “sense of place” from which we experience social ties that bind and define the public realm. Community is not an enemy of individuality.

We must distinguish between individuality and individualism. Individuality refers to a state of being, about self-expression of mind and spirit. Individualism refers to ideology, the turning of egoism into a virtue. Individualism should be expelled.

James Q. Wilson in his book, The Human Condition, writes: “In its worst forms, radical individualism is mere self-indulgence; in its best forms (which I take to be expressions of individuality) it is a life governed by conscience and cosmopolitan awareness.” About community, Wilson writes: “In its worst forms, extreme communalism (think Puritan New England, or McCarthyism) is parochial prejudice; in its best it is a life governed by honor and intimate commitments.”

Through individuality within the context of community, we discover those mutual obligations and responsibilities, a sense of “the public” and the terms of citizenship. Redistribution is necessary, a means to these ends.

And that is what President Obama was getting at. 

Also in Commentary

The English Way

Justice Scalia finds his rationale for an expansive Second Amendment in Common Law — so why does Great Britain have such strict gun control?

Robert Herold |
Wednesday, May 15,2013

What We Pay For

Publisher's Note

Ted S. McGregor Jr. |
Wednesday, May 15,2013

Keeping America

Announcing a new local effort to inspire today’s students to learn where their country came from

George Nethercutt |
Tuesday, May 7,2013

Cougar by the Tail

Publisher's Note

Ted S. McGregor Jr. |
Tuesday, May 7,2013

Power to the People

Will Spokane step up and grab its own future?

Thomas Alan Linzey |
Tuesday, May 7,2013

Also By {author_name}

{items2}


Although I wouldn´t share their philosophy, I could respect a progressive who lived out his ideals every day regardless of whether those ideals were incorporated into governmental policies. There´s nothing preventing progressives from giving some or even all of their time and material wealth to any cause or person they deem deserving. But the notion that progressives have the right to impose their dogma on their fellow citizens is arrogant, offensive and antithetical to the founding principles of individual rights--life, liberty, and the pursuit of happiness, to name but a few. If you´re a progressive, be an example rather than a scold and a fascist, and you might find that you´re more persuasive. Oct 04, 2012 | Reply to this comment

 

I think the point of living in an interdependent community is that, in a sense, everyone has the right to impose. We need each other. I think the bigger question is who thinks they have the right to excuse themselves. Oct 09, 2012

 

If somebody declares that i live in an interdependent community, and that entitles the rest of the "community" to my property, do I have the right to say "no, thank you?" if I don´t have right to say no, isn´t the community a gulag? If I have no right to object, isn´t "redistribution" the same thing as confiscation? If I am coerced into "giving" my property to the state, how is that not fascism, or some other form of totalitarianism? When it comes to drugs, just say no. When it comes to progressivism, just say nein. Oct 09, 2012 | Reply to this comment

 

@muddydog

Unfortunately....you understand the issue and make sense, therefore obliterating any chance the left will comprehend your rationale.
I consider the liberal left an enemy of the state, because their proposed policies would, sooner than later, dilute and destroy any resemblance to the nation we once were....and are barely clinging to now.
Bob Herold is an intelligent man....but I´ve never understood his thinking on government. There are times I think he has been so brainwashed that objectivity and logic have become as foreign to him as a free Republic.
This piece is just another in a long list of democratic rhetoric designed for the sole purpose of deluding the voter into a false path of support for an eventual goal of becoming a socialist country. And why? Where is the list of nations that have succeeded in their socialist structure? Where has the redistribution of wealth been a solution that works?
Frankly....though I understand the explanation by the left......I don´t understand how they can reach such a wrong conclusion regarding the results of their efforts. It reminds me of 7th grade algebra, with students working with a formula, and never getting the right answer, because they don´t understand the dynamics of algebra....... Oct 09, 2012 | Reply to this comment

 

It never ceases to amaze me that progressives continue to believe and promote ideas and policies that are failing before their very eyes in countries like Greece, Spain, Portugal, Ireland and France. And in states like California and Illinois. Oct 11, 2012

 

Reobert Herold is entirely correct. No reasonable person who has examined the matter would deny that modern politics is intensely influenced by money. By the same token, those who have the money have used it to tilt the playing field to their advantage — through government created monopolies, subsidies, and substantial tax breaks. Evidence does not support the view that the increasing concentration of wealth at the top is largely the outcome of innovation and free market, capitalist competition. That redistribution has taken place is beyond argument — and it makes a mockery of any "my property" notion. As typified by the tax system here in the state of Washington, where those who have the least shoulder the largest burden, structural advantages that flow from government policy have moved wealth from the middle and bottom to the top. For starters, here in Washington, one only need examine the Washington State Department of Revenue’s regular publication of those who receive tax breaks — http://dor.wa.gov/docs/reports/2012/Exemption_study_2012/2012%20Exemption%20Study%20-%20Entire%20Report.pdf Oct 10, 2012 | Reply to this comment

 

The argument about "concentration of wealth" is a fallacy. The argument assumes that economics is a "zero sum" game in which any dollar I earn is taken from your or somebody else. That is incorrect, and anybody who's taken an Econ 101 course could (or should) know better. Steve Jobs and Apple are examples. They came up with really innovative products that nearly everybody wants--Ipods, Ipads, and Iphones. Apple has made billions selling these products to customers who really want them. Apple's earnings weren't "taken" from anybody, and Apple's products were innovations from the genius of Jobs and/or his employees. In other words, the products didn't exist until Jobs and/or Apple dreamed them up, and they weren't taken from anybody. Without the chance to make billions, Jobs and Apple wouldn't have created them, either. Oct 11, 2012

 

What Muddy would have the reader believe is that the well documented, increasing concentration of wealth is merely the result of natural market forces — that a capitalist system can´t be rigged. We could examine the revealing tale of how Apple has done so well (which would take us into the strategies of patent law use as well as the advantages of outsourcing); but why not stay right here at home — where the state system of taxation, necessary for the state to perform essential functions, like education (for a job at Apple) places the heaviest burden on those with the least. With the most wealthy paying only about 15% in federal income tax (with no Social Security tax) and, since they are likely to itemize, taking a federal deduction for state sales taxes (if they are not already exempt), it come as no surprise that those who can´t take advantage of these options pay more — often a larger percentage in income tax as well as full load in sales taxes. Clearly, the game theory notion of "zero sum" has nothing at all to do with this picture — except when it addresses games that are rigged. Of course, it is silly beyond words to compare Steve Jobs to, say, the CEO of Avista, or any other similar executive, that enjoys a runaway income totally unrelated to having created a better mousetrap or iPhone. As for Jobs being motivated by the opportunity to make billions, were that actually the case we might suspect that he would have dressed better. Oct 17, 2012 | Reply to this comment

 

You do understand the difference between tax rates and the amount of taxes paid, don't you? A guy who pays 15% of 5 million dollars pays $750,000,and a guy who pays 20% of a hundred thousand dollars pays $20,000.nn Oct 17, 2012

 

Muddy's notion is interesting: he wants to focus on amounts and not rates. Soooo, if we do that, how would one determine what amounts are fair and reasonable (lobbying and the influence of money aside)? If the person taxed on 100K is paying 20%, why not the one paying on 5 million pay the same — or more? Or, alternatively, why not let the 100K person pay 15% (with attendant exemptions) and the other pay 20%? Or, for that matter, why not exempt the 5 million person altogether and have the 100K person pay 50%? Clearly, a principle of fairness is necessary to make a decision. Historically, we have used the idea of "burden" — those who have more should pay a higher rate so as to insure that the needs of society can be met, those with less can still live a decent existence, and the capitalist system can produce with an expectation that there will be consumers to buy. In Muddy's example, the 5 million person who pays 15% ends up with $4,250,000, while the other has $80,000 (to pay for a home, transportation, food, kids, and more). Who's carrying the heaviest burden? Oct 18, 2012

 

 
 
Close
Close
Close