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Beyond the First 100 Days Toward a Progressive Agenda

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Beyond the First 100 Days Toward a Progressive Agenda PUBLISHED BY THE DEMOCRATIC SOCIALISTS OF AMERICA May /June 1993 Volume XXI Number 3 REMEMBERING IRVING HOWE 1920-1993 BEYOND THE FIRST 100 DAYS TOWARD A PROGRESSIVE AGENDA • FIXING THE ECONOMY • FIGI-ITING RACISM • REVITALIZING LABOR INSIDE DEMOCRATIC LEFT Coming to Grips with Clintonomics DSAction . 14 by Mark Levinson ... 3 Remembering Ben Dobbs by Steve Tarzynski. 15 Race In the Clinton Era by Michael Eric Dyson . 7 We Need Labor Law Reform by Jack Sheinkman ... 16 On the Left by Harry Fleischman. 11 Notes On European Integration by Peter Mandler . 19 Irving Howe, 1920 - 1993 Remembrances by Jo-Ann Mort and Janie Higgins Reports ... 24 cover photos: Irving Howe courtesy of Harcourt Brace Jack Clark . 12 Jovanovich; Biii Clinton by Brian Palmer/Impact Visuals. Correction A photo credit was missing from page 15 of the Mark Your Calendar: March/April issue. The -upper photo on that page should have been credited to Meryl Levin/Impact The 1993 DSA Convention Visuals. November 11 • 14 upcoming screenings of the film Los Angeles, California MANUFACTURING CONSENT: NOAM CHOMSKY AND THE MEDIA Join Barbara Ehrenreich, San Diego Ken Theatre May 20-24 Corvallis Oregon Stau June4 Jose Laluz, and Cornel West Sacramento Crest Tlreatre June 9-10 Seattle Neptune June 10-16 Milwaukee Oriental Tlieater June 11-17 more information soon Denver Mayan Tlreatre June 25 - July 1 Chicago Music Box July 3 and 4 CLASSIFIEDS DEMOCRATIC LEFT DEATH ROW INMATE 15 yrs Managing Editor ENCYCLOPEDIA OF THE needs friends, Ron Spivey, Box Michael Lighty AMERICAN LEFT, now in 3877C4104, Jackson, CA 30233 PAPERBACK, 970 pp., doz­ Production ens of entries on and/or by "A SHORT APPREHENSIVE David Glenn DSAers. $29.95 from Univer­ History of the World." Hu­ Editorial Comm ittu sity oflJlinoisPress. Ask your morous, leftish, outrageous. Joanne Barkan, Dorothee Benz, bookstore to stock it! 192 pp., ill. $10.00 Softcover, Howard Croft, Mitch Horowit:i., $16.00 Hardcover. Postage Sherri Levine, Neil McLaughlin, COMMUNITY JOBS, socially paid. Write to Brainerd Books, Maxine Phillips • responsible job opportunities. Box 25153, Lansing, MI Subscribe to the only nation­ 489()C). Founding Editor wide listing covering organiz­ Michael Harrington (1928-1989) ing, disarmament, labor, en­ Classified ad110tising mks art $2 Dalocnllc Lefl (JS6N 01640310'1) .. publllhed l:unca&hl)' II 15 Dul<h Sl., I 500, NY, NY 10038. Soccnd-dH1 ~g•pmd at Now vironment, and more. $3.50/ per lint, $50 per rolumn inch. Pay­ York. NY (Publication No 0701-9602). Sublaipacno. 5' rtgUIAr. sample. $12/6 issues. Box ment inadvanct. Thertisa 20%dis­ $1SINtsM lonal Pootma.. tr. Se>dadd.-dllngOlto IS DutthSt.. I 500, NY, NY 10038 Domo<ntic t.ft I• publilMd by tho DS1516 P St., NW, Washing­ rount ifad(s) run two or morttimes. OomocntlcSodabstt ol Mwit11, IS DutdlSl.,f.500, NY. N\'10038 Wt rtsaVt tht right ro reject ads. (112) 962-0390.Sipol m O.u:rp.-1i.. .,..._, c{t•...i,_, n4 ton, OC 2<XXlS. !IVll_.:.-1.. .L-anr 2 DEMOCRATIC LEFT Coming to Grips With Cliiitonomics If Clinton wants to lead the U.S. out of the slow-growth wilderness, he'll have to reject the myths of orthodox economics BY MARK LEVINSON ill Clinton won the presidency by large part responsible for the economic grdwth. promising the "most dramatic eco­ The higher-than-expected economic nomic growth program since World growth led some in the Clinton administration BWar II." In contrast to Bush, who of­ to question the need for any economic stimulus. fered no solutions to economic problems (he They feared a stimulus would ignite the kind of barely recognized any), Clinton emphasized the inflation that destroyed the presidency of need to create millions of high-wage jobs, pro­ Jimmy Carter. The higher deficit projections vide tax relief to working families, expand train­ seemed to call into question Clinton's proposals ing and education, and ensure affordable health for job training, investments in public works care for every citizen. and a middle-class tax cut. Clinton inherited a sluggish economy sav­ Clinton's program tried to please everyone. aged by twelve years of Republican mismanage­ A modest economic stimulus (significantly ment. The economy is stuck with high business, smaller than what he proposed during the consumer, and government debt; a glut of campaign) was combined with a much larger empty office buildings; falling defense spending effort to reduce the deficit. Clinton's four year that is especially hurting New England and plan consists of tax increases and spending cuts Southern California; state and local budget totaling $500 billion and new spending of $170 problems; inadequate productive investment; billion. The best part of the plan is that it pro­ stagnant wages and faltering economies in Eu­ vides for such worthy projects as improving the rope and Japan that are holding down demand infrastructure, Head Start, summer jobs for for U.S. exports. youth, and an apprenticeship program for non­ Shortly after the election it was announced college-educated youth, and especially that it is that the economy grew at an annual rate of 4.7 funded by progressive changes in the tax sys­ percent in the last quarter of 1992 and that the tem. The president's plan calls for income taxes deficit was higher than previously thought-­ to rise only for those couples with adjusted close to $300 billion a year through at lest 1996. gross income over $180,000, corporate taxes to Few seemed to realize th~ higher deficit was in be increased, and the new energy taxes to be MAY!fUNE 1993 3 The deficit is not the cause of our fiscal problems, it is the result. A large reduction in gov­ ernment spending will reduce demand without increasing productive investment. Cutting spending too much could cause a slowdown ifnot a recession; it could also reduce revenue and increase public assistance costs. Paradoxically, cutting spend­ ing to reduce the deficit may increase the deficit. There is no reason to make deficit reduction the top pnor­ ity. The deficit last year was equal to 5.4 percent of the $6 & ~ • trillion in new wealth created in ~~:: the United States. This should 1 ' : not be considered excessive for - - a country emerging from a re- .. • ~ ~ · • ' "'' cession characterized by lost :· :-.t . J#: - - • "'· tax revenue and highei public 1 · •.:·~. ·· ~:..; -· assistance and unemployment ?~ .:......,. .. 'J. , compensation costs. At the end I. :; ,.-;.. ~ • -• of the last recession in 198.3 the Will Clinton's modest and offset for low-income taxpayers by deficit hit 6.3 percent of GDP (Gross Domestic economic increases in the earned income tax credit and Product) and it stayed at5 percent or more until plans give other benefits. 1987. these The stimulus fell victim to a Republican Which is not to say the deficit is urumpor­ unemployed filibuster in the Senate. Although polls showed tant; but its importance is more political than day laborers public support for the stimulus, neither Clinton economic. David Stockman once admitted that anything to or anyone else put much pressure on the Senate the purpose of the deficit was to make the Re­ cheer about? Republicans. After the filibuster began Clinton agan revolution irreversible. People ....,ho want offered to "address some of the legitimate ex­ an activist government would have to acqui­ pressed objections" to the plan. Legitimate ob­ esce: "There isn't any money." jections? The Republicans did not speak a legiti­ The fundamental problem facing the U.S. mate word during the entire filibuster. The economy is not the deficit but rather slow stimulus program was a smaJI (was it easier to growth caused by the decline in productive investment (due not to a shortage of funds but to the use of financial resources for speculation), The deficit is not the cause of our falling wages and declining living standards for fiscal problems, it is the result. the majority of Americans, and slow growth in the world economy. With the economy on the brink of recession defeat because it was so small?) down payment (growth in the first quarter of 1993 was an to urban America. After twelve years of disin­ anemic 1.8 percent) and with people needing vestment it was the first positive gesture from goods, services, and jobs, and with productive the federal government to the cities. capacity lying idle, there is no excuse for auster­ Clinton must be held, in part, responsible ity. Even if one were to accept'that deficit reduc­ for the defeat of the jobs package. During the tion is important, the best way to achieve it is to campaign Ointon put economic growth and put people to work. Each decline of one percent jobs before deficit reduction. After the election he in unemployment reduces the deficit by some reversed himself, and therein lies the problem. $50 billion. In order for Clinton to reduce the He made deficit reduction such a priority that deficit in the long run it will be necessary to the stimulus became a tough sell. increase it in the short run by aggressively 4 DEMOCRATIC LEFT implementing his campaign pledge to expand highly likely that a recession will follow. public investment. This means a substantial in­ The administration would respond that crease in public spending on infrastructure, aid there are other ways to stimulate the economy. to state and local governments, child care, pub­ Robert Rubin, chairman of the National Eco­ lic education, housing, and renewable energy. nomk Council, explained the administration's There is a strong relationship between fiscal position: "If there's anything that this program policy and the growth of the economy. The last is directed at, it's interest rates." The hope is that four recessions (1970, 1975, 1981, 1990) were all lower interest rates will encourage enough in­ preceded by contractions in fiscal policy while vestment in housing and other projects to keep the periods of growth in the late 1970s and mid- the economy expanding.
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