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Economic Fears of Working-Class and Middle-Class Americans? a Symposium

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Economic Fears of Working-Class and Middle-Class Americans? a Symposium How Can Conservatism Better Allay the Economic Fears of Working-Class and Middle-Class Americans? A Symposium John S. Adams, Paul D. Allick, William A. Blazar, Barry Casselman, Chuck Chalberg, Larry Colson, Roger Conant, Kevin Donnelly, Devin Foley, Arvonne Fraser, Paul Gessing, John C. Goodman, Jake Haulk, Mike Jungbauer, Phyllis Kahn, Greg Kaza, Tom Kelly, Eric L. Lipman, Jefferson Morley, Peter J. Nelson, Grover G. Norquist, Bruce Peterson, Todd Peterson, Bill Pulkrabek, Larry Purdy, Don Racheter, Kristin J. Robbins, Lyall Schwarzkopf, Brett Singer, Grace-Marie Turner and Amy Menefee, Lou Wangberg, Cheri Pierson Yecke, Stephen B. Young Introduction by Mitch Pearlstein Center of the American Experiment is a nonpartisan, tax-exempt, public policy and educational institution that brings conservative and free market ideas to bear on the hardest problems facing Minnesota and the nation. How Can Conservatism Better Allay the Economic Fears of Working-Class and Middle-Class Americans? A Symposium John S. Adams, Paul D. Allick, William A. Blazar, Barry Casselman, Chuck Chalberg, Larry Colson, Roger Conant, Kevin Donnelly, Devin Foley, Arvonne Fraser, Paul Gessing, John C. Goodman, Jake Haulk, Mike Jungbauer, Phyllis Kahn, Greg Kaza, Tom Kelly, Eric L. Lipman, Jefferson Morley, Peter J. Nelson, Grover G. Norquist, Bruce Peterson, Todd Peterson, Bill Pulkrabek, Larry Purdy, Don Racheter, Kristin J. Robbins, Lyall Schwarzkopf, Brett Singer, Grace-Marie Turner and Amy Menefee, Lou Wangberg, Cheri Pierson Yecke, Stephen B. Young Introduction by Mitch Pearlstein MARCH 2009 MARCH 2009 How Can Conservatism Better Allay the Economic Fears of Working-Class and Middle-Class Americans? A Symposium Introduction my friend Heather Mac Donald recently wrote in City Journal in a different context: “The public Mitch Pearlstein, Founder & President good is best served by giving maximum freedom to How Can Conservatism Better Allay the Economic the creative spirit.” Fears of Working-Class and Middle-Class Americans? is the third in a current series of American Actually, conservatism may revive with Experiment symposia aimed at vitalizing unexpected, double-jet speed if Washington conservatism in Minnesota and the nation. The continues passing trillion-dollar bills without anti-collectivist troika kicked off with 40 brief reading them first. But even if this comes about, essays in What Does It Mean to be an Urban serious self-study and policy imagination will Conservative? shortly after conservatives got remain advisable. whomped in November 2006. It accelerated in the months leading up to the Republican National How do our 34 participants (one piece is coauthored) Convention in St. Paul last summer with 29 propose to lessen economic anxieties? Here’s a pointed pieces in Learning from Lincoln: Principle sampling of responses that can be grouped in several and Pragmatism: Getting the Balance Right. And it’s rough categories, starting with often exasperated now punctuated, in the aftermath of a second admonitions for conservatism and its proclaimed whomping on Election Night 2008, along with leaders to return to small-government basics. associated economic troubles and agonies, by the 33 columns featured here. “I begin,” Larry Purdy writes, “with this simple and, one would think, unobjectionable premise: In all, the three collections contain more than 100 Practicing conservatism is the best deterrent to critiques of often widely divergent mind about economic difficulties.” conservatism’s current and potential states – but that’s exactly the eclectically purposeful point. But that begs the question of whether in and of itself American conservatism will rise again; of this conservatism’s message – there’s no doubt. But in order to assure that it has without a demonstrable devotion to intellectually substantial and compelling things to conservative principles – can effectively offer when it does return, full-throated, virtually all allay the fears associated with looming, or ideas and approaches must be openly examined. No existing, economic hardships. The “my ideological way or the highway” allowed. Or as question is particularly pertinent in a CENTER OF THE AMERICAN EXPERIMENT 1 society whose citizens increasingly abjure income Americans is to “enact federal and state conservative principles. The problem is policies that create strong, rapid, and continuous not conservatism per se. The problem is in economic growth.” These would include reducing understanding why so many contemporary taxes on capital gains “downward towards zero;” Americans seem ignorant of its teachings. eliminating the “death tax;” and “expensing all new investment,” as it would “reduce the cost of Larry Colson argues similarly when he writes of the capital and simplify the tax code.” “dismal understanding of basic market economics among the voting public and, perhaps more A number of participants energetically emphasize importantly, among our elected officials. Even health care. normally conservative-leaning folks have come to accept things like government ownership of private The United States, write Grace-Marie Turner and businesses.” Amy Menefee, Bill Pulkrabek is direct: “Too many conservatives is alone among industrialized nations in talk a good game on the campaign trail but, once in providing health insurance through the office, digress to a ‘don’t rock the boat’ mentality.” workplace. This is a relic of the Postwar If conservatism is to become credible again, he Era, when the foundations for today’s writes, activists “need to keep a vigilant eye on system were established: Workers get a political endorsements of future candidates” so as generous but invisible tax break for health to ensure that winners actually “do something insurance, as long as they get coverage bold” rather than “just talk about it.” through their jobs. This policy is simply not working for tens of millions of Americans who What specific, market-based policies do don’t get health insurance at work and tens of symposiasts urge? Bill Blazer contends that “people millions more who would prefer insurance vote their pocketbooks” and conservatives have to they could own and take with them from job show Americans how conservative prescriptions to job. mean “more dollars in their pocket in both the short and long run.” He recommends, for instance, Turner and Menefee cite specific remedies, as broadening the Social Security tax base and then does John Goodman, who focuses particularly on cutting the rate. More precisely, the current 6.2 Baby Boomers, men and women born between percent rate for individuals “could be dropped to 1946 and 1964. “We’re looking,” he says, “at a about 5 percent, yielding a tax cut for most huge gap – a yawning chasm – between what this Americans and roughly $30 billion per year more generation is expecting during its retirement for the Social Security Trust Fund.” years and what has been set aside to make those expectations a reality.” So what can be done? He Blazar also urges a ceasing of encouragement of continues: “debt-fueled retail consumption.” Clear distinctions ought to be made, he writes, between [T]here are many good ideas consistent with loans that pay for a home or education on the one small government and individual hand, and buying a boat, on the other. “The former empowerment. Why not let employers help are investments. That latter [are] almost always their early retirees obtain individually owned, not. Working- and middle-class Americans personal, portable health insurance at group understand the difference.” rates? Why not let employers pay whatever portion of the premium they deem affordable According to Grover Norquist, the best and only with pretax dollars (just as they do for their effective way of allaying economic fears of middle- active employees)? Why not let the retirees 2 HOW CAN CONSERVATISM BETTER ALLAY THE ECONOMIC FEARS OF WORKING-CLASS AND MIDDLE-CLASS AMERICANS? pay their portion of the premium with pretax international economic competition and key dollars? Why not let both employers and elements of the social conservative agenda, all in employees save pretax dollars in anticipation the name of creating hope and allaying fear.” of these costs? There: I just produced four Clearly, “there is a libertarian, even elite appeal to ideas that would have a great impact on Baby being socially liberal and economically Boomers’ lives without emptying the Treasury. conservative, but it ought to be resisted in the name of a more hopeful future. After all, if America The same issue of City Journal (Winter 2009) with is to have such a future, it will be in no small Heather Mac Donald’s quotation has an insightful measure because the causes that are important to article by Laura Vanderkam about how health care is social conservatives have prevailed.” causing anxieties and complicating the lives of many self-employed people in particular. Health care is a Similarly, Singer argues that the Republican party’s profoundly important issue for a variety of acutely challenge will be to “become an amalgam of social recognized reasons, but here’s another one: Unless we conservatism of old, and of economics that address get it right, many small business owners and the danger and adversity that working-class voters independent contractors – natural conservative face today, without becoming an unreconstructed constituencies – will drift to governmental programs of Rockefeller party.” the Left in search of what might look like lower costs. In matters of culture more broadly, Cheri
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