The End Game

With the election of Joe Biden, the environmental movement has now established suzerainty over global economics. Gone not only is the troublesome Donald Trump but also the Canadian skeptic Steven Harper. Outside of those dismissed as far right, there is virtually no serious debate about how to address climate change in the U.S. or Western Europe outside the parameters suggested by mainstream green groups.

In reality, though, few electorates anywhere are ready for extreme policies such as the Green New Deal, which, as its widely acknowledged architect, Saikat Chakrabarti, has acknowledged, is really a redder, more openly anti-capitalist version of the Great Depression-era original.

Yet getting hysterical about the likes of Alexandria Ocasio-Cortez is a waste of emotional energy. The real power of the environmental movement derives from those who occupy “the commanding heights” of our society – at the corporate, media, and academic realms. Though arguably not holding views as economically ludicrous as AOC’s, mainstream corporate greens are far more likely to successfully impose their version of environmental justice on the rest of us.

A finer shade of green

The modern environmental movement was launched from the top of the economic food chain. The Rockefeller Brothers, for example, funded some of the earliest environmental work, notably on population control. Today, these depositories of old money built on fossil fuels, including not just the Rockefellers but also the Fords, have become leading advocates of radical climate policies.

In 1972, the influential book Limits to Growth was published with backing from major corporate interests, led by Aurelio Peccei of Fiat. The book’s authors suggested that the earth was running out of natural resources at a rapid pace and called for establishing “global equilibrium” through restrictions on growth and “a carefully controlled balance” of population and capital. These conclusions, mostly accepted in top media, academic, and political circles, turned out to be almost comically off target, as production of food, energy, and raw materials accompanied not the predicted mass starvation but arguably the greatest rise of global living standards in history.

Yet despite this record, a growing and powerful faction of the corporate aristocracy still embraces the ideals of the Club of Rome, seeking to cut human consumption and limit economic progress. Like religious prelates in the Middle Ages, today’s environmentalists – who The Nation’s Alexander Cockburn has aptly named “greenhouse fearmongers” – see no contradiction between imposing austerity on the masses and excusing the excesses of their ultra-rich supporters. Like sinful aristocrats and merchant princes in medieval times, our “green rich” can even buy a modern version of indulgences through carbon credits and other virtue-signaling devices. This allows them to save the planet in style. In 2019, an estimated 1,500 GHG-spewing private jets were flown to Davos carrying attendees to a conference to discuss the environmental crisis. Few high-profile climate activists, including celebrities, seem willing to give up their multiple houses, yachts, or plethora of cars.

Read the rest of this piece at Real Clear Energy.

Joel Kotkin is the author of the recently released book The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute — formerly the Center for Opportunity Urbanism. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin

Photo credit: Coordenação-Geral de Observação da Terra/INPE via Flickr under CC 2.0 License.

Dissecting Biden vs. Trump from a Former RNC Staffer

In this episode of the Feudal Future podcast, hosts Joel Kotkin and Marshall Toplansky talk wth Kevin Shuvalov about the 2020 election, demographic trends in the electorate, and the impact of media on future elections.

The Grand New Party

Given the likely defeat of President Donald Trump, a functionally headless Republican Party is destined for a period of reflection. Trump himself, for all his rudeness and often unnecessary, divisive rhetoric, has transformed the Republican Party from being a bastion of the establishment to a voice for America’s working and middle class.

Read more

The Real Winners

Progressive ideologues often like to evoke the idea that they speak “truth to power,” but this year it’s their leaders who are consolidating their clout. Although Democrats did far worse on the whole than expected, control of the White House assures greater influence for those already occupying what Lenin referred to as “the commanding heights” of both society and economy. Read more

California and Its Contradictions: Rumblings of Realignment Beneath a Solid-Blue Surface

California remains deep blue, but the good news from this week’s elections is that it has not yet achieved complete ballot-box unanimity. California voters appear to have turned two or three house seats red, and statewide voters rejected some of the most extreme progressive proposals governing contract workers, affirmative action, expansion of rent control, and raising property taxes on commercial properties. Read more

The Limits of Rhetoric

Deep-blue cities and states are eager to declare their social-justice credentials. New York mayor Bill de Blasio has set up a commission designed to uproot the city’s “institutional” racism, while California governor Gavin Newsom brags that his state is “the envy of the world” and will not abandon its poor. “Unlike the Washington plutocracy,” he proclaims, “California isn’t satisfied serving a powerful few on one side of the velvet rope. The California Dream is for all.”

Yet California, though well known for its wealth, also has the nation’s highest poverty rate, adjusted for housing cost. If rhetoric were magic, metropolitan areas like New York, San Francisco, Los Angeles, and Chicago would be ideal places for aspirational minority residents. But according to statistics compiled by demographer Wendell Cox in a newly released report, these cities are far worse for nonwhites in terms of income, housing affordability, and education. New York and California also exhibit some of the highest levels of inequality in the United States, with poor outcomes for blacks and Hispanics, who, population-growth patterns suggest, are increasingly moving away from deep-blue metros to less stridently progressive ones.

The current focus on “systemic racism”—often devolving into symbolic actions like mandatory minority representation on corporate boards, hiring quotas, and an educational focus on racial redress and resentment—is not likely to improve conditions for most minorities. “If a man doesn’t have a job or an income, he has neither life nor liberty nor the possibility for the pursuit of happiness,” Martin Luther King said. “He merely exists.” That remains true. Our lodestar should be upward mobility: improving how well people live, across the board. When it comes to that criterion, blue states and cities are falling short.

The Covid-19 pandemic has inflicted disproportionate harm to the health of Latinos and African-Americans, who, according to the CDC, have suffered rates of infections and deaths higher than the overall population, which makes a focus on upward mobility even more important. To measure progress, we have developed an Upward Mobility Index, with “opportunity ratings” for the nation’s 107 largest metropolitan areas—those with populations of 500,000 or more in 2018—by race and ethnicity. We examined the factors that underpin upward mobility and entry into the middle class. Then, we created a ranking by metro that combined these factors for the three largest ethnic and racial minorities: African-Americans, Latinos, and Asians.

The results confound assertions that nominally progressive policies—affirmative action, programs for racial redress, strict labor and environmental laws—help nonwhites. It turns out that places with low housing costs, friendly business conditions, and reasonable tax rates do much better than cities proclaiming their woke credentials.

African-Americans do best by these measurements in southern metros such as Atlanta, the traditional capital of black America; McAllen, El Paso, and Austin, Texas; and Raleigh, Virginia Beach/ Norfolk, and Richmond, Virginia. The Washington, D.C. metro area, well known for its large, middle-class African-American suburbs, also compares well. Oklahoma City, Phoenix, Lancaster, Pennsylvania, and (perhaps surprisingly) Provo, Utah rank high for black success.

At the bottom of the list, California dominates, with four of the worst ten locations, including Los Angeles, which a half-century ago was widely seen as a mecca of sorts for blacks. Two of the state’s most prominent political leaders of the late twentieth century—four-term Los Angeles mayor Tom Bradley and long-time assembly speaker and San Francisco mayor Willie Brown—came from poor Texas families, not Golden State metros. Other cities traditionally attractive to African-Americans no longer serve as leading places for black ambition, including Miami and New York.

Similar, though somewhat varied, results can be seen for Latinos, now the nation’s largest minority, and Asians, the fastest-growing. Latinos seem to be doing best outside the Northeast Corridor and the West. Fayetteville (Arkansas/Missouri), for example, ranks number 7; it’s an evolving economic hub paced by Walmart, JB Hunt, and Tyson Foods. Latinos have found opportunities in metros tied to basic goods as well as technological production (St. Louis); logistics and agribusiness (Kansas City, Des Moines, and Omaha); energy (Pittsburgh and Oklahoma City); and manufacturing (Grand Rapids and Akron).

In contrast, California, with the nation’s largest Hispanic population, now includes eight of the bottom 15 metros on the Hispanic Upward Mobility Index. The nation’s largest Hispanic conurbation, Los Angeles, ranked 105th out of the 107 largest U.S. metros. The remaining six worst performers, apart from Honolulu, are on the much-deindustrialized east coast, including New York, Bridgeport-Stamford, and Worcester.

Read the rest of this piece at City Journal.

Charles Blain (@cjblain10) is the president of Urban Reform and Urban Reform Institute. A native of New Jersey, he is based in Houston and writes on municipal finance and other urban issues. Joel Kotkin (@joelkotkin) is a contributing editor of City Journal, the Presidential Fellow in Urban Futures at Chapman University, and executive director of the Urban Reform Institute. His latest book is The Coming of Neo-Feudalism: A Warning to the Global Middle Class.

Elite Democrats Could Destroy the Middle Class if Biden Wins in 2020

It’s been a long time since the Democrats were considered “the party of the people” and the GOP the party of the fat cats. This year Joe Biden and even more so his running mate, Kamala Harris, are raising record sums from the corporate elite, notably the tech giants and their Wall Street allies. These wealthy donors dominate the party, own much of the media, and can manipulate the social-media platforms where a growing proportion of Americans get their news.

Meanwhile, the Republicans find themselves largely castigated in the press and overwhelmed by a torrent of oligarchic wealth at the Senate and local levels. This wealthy oligarchy is not just liberal; many members also support a thorough remaking of our country. Some, like former Twitter CEO Dick Costolo, are so committed to progressivism that, as he said recently, those who don’t get with the program should “face a firing squad.” Currently led by CEO Jack Dorsey, Twitter has gone so far as to block The New York Post’s account after it reported on the unsavory foreign business dealings of Biden’s son Hunter.

If these Democrats win both houses of Congress as well as the White House, things could get far worse for the already beleaguered middle class, which has been rocked by the pandemic, with an estimated 100,000 small firms going out of business. Particularly hard-hit by the recent urban unrest are inner city and minority businesses.

The other big winners have been the professional managerial class, including top levels of the federal bureaucracy, academia, and the mainstream media. These are, for the most part, people who can work from home, or, in some cases, the safety of their country houses. Meanwhile, they have achieved power at a level never before exercised outside of wartime and are as likely to surrender this control as the oligarchs are to give up their money.

If the Democrats win on Election Day, the future for the middle class could be bleak. As a lifelong Democrat, this is not easy to write, but most of the party’s initiatives — such as the Green New Deal — are directly harmful to those in the middle and working classes, who’d be forced to face increased housing and energy prices and fewer upwardly mobile jobs in industries like manufacturing.

A Democratic landslide could prove particularly devastating to owners of small businesses, particularly those in the energy, agriculture and manufacturing sectors, who were all critical to electing Donald Trump and seem likely to follow him again this year, despite the recession caused by the pandemic.

Read the rest of this piece at NYPost.


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Homepage photo credit: ptufts via Flickr under CC 2.0 License.

Democratic Prospects & The Plural Generation with Morley Winograd

In this episode of the Feudal Future podcast, Morley Winograd joins hosts Joel and Marshall on Feudal Future Podcast to talk about the 2020 election, and the prospects for a democratic administration should they win.

Democrats’ Energy Dilemma

The biggest challenge facing a putative first-term Joe Biden administration and the Democratic Party may lie with energy policy, where gentry and green wishful thinking confront the daily realities of millions of middle- and working-class Americans.

Democrats could choose a climate policy that allows for gradual change – for example, transitioning from coal to natural gas – and consider the feasibility of smaller and safer nuclear plants, while keeping the productive economy afloat. But Biden, despite some wriggling about fracking on private land, just last week committed himself to the gradual eradication of the fossil fuel industry. His running mate, Senator Kamala Harris, is beloved by California’s extremist greens.

Already, in anticipation of a Democratic sweep, utilities are putting some natural gas projects on hold – threatening a powerful growth engine in places like Pennsylvania and Ohio. If Biden continues to embrace the basic thrust of the Green New Deal, if not its full-bore socialist program, the impact could be devastating for manufacturing areas that compete with China, which depend largely on natural gas, coal, and nuclear power to keep costs down. These state economies cannot fantasize, as some do in California, that the resulting social costs will be paid for by the wealthy digerati; lacking sufficient numbers of the rich and famous, these states will be hit hard, and fast.

If, as seems likely, victorious Democrats enact legislation broadly derived from the Green New Deal, major blowback – and economic disruption – seems inevitable. Biden and Harris have been almost comically inconsistent in their statements about fracking, but they’re certainly hostile to it: if they win the White House and pursue a ban, it would likely drive higher prices for energy, reduce national energy self-sufficiency, and cause massive job loss among a large number of Americans, particularly in key states like Ohio and Pennsylvania.

Read the rest of this piece at Real Clear Energy.

Joel Kotkin is the author of the just-released book The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute — formerly the Center for Opportunity Urbanism. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin

Trump Finally Slaps Google with an Anti-Trust Suit, and Protects Democracy

Sometimes Donald Trump does the right thing, even if it may be for the wrong reasons. His Justice Department’s late-term assault on Google for its monopolistic tyranny over search and digital advertising is precisely what is needed. Some may paint this as the last desperate act of a fading tyrant, but in reality it may be the most important move to protect democracy in recent years.

The anti-trust suit, filed just weeks before the election, is the latest example of the growing gap between the tech oligarchy and Trump on issues including the H1-B visas big tech depends on to keep labor costs down, web censorship, and, of course, Trump’s trade war with Silicon Valley’s close allies in China.

With the prospect of a Biden presidency looming, Google and the other tech monopolies may simply be willing to wait to try and regain control of the national agenda and recover at least some of the vast political sway they enjoyed under Barack Obama. It’s likely that Trump was acting not to protect free markets and democracy but to punish his perceived foes who in his view have unfairly supported his opponent not only with their contributions and their expertise but also with their policies and algorithms.

Yet if Trump’s motivations are questionable, his action is the right one. The giants of the tech world—Amazon, Apple, Facebook, Google, and Microsoft—have become so powerful and so wealthy that they constitute a compelling danger to the economy, upward mobility, freedom of expression, and prospects for a functional democracy.

All five companies started with enormous innovation, part of an entrepreneurial ecosystem of garage startups envied all over the world. But in more recent times, these companies have become part of a system of conglomerate control more akin to the Japanese keiretsu or Korean chaebol, essentially interlocking directorates who parcel out control of critical parts of the economy. With competition down, innovation has slowed as most smaller firms are either acquired or relegated to being tools to be exploited and then discarded. One online publisher uses a Star Trek analogy to describe his firm’s status with Google: “It’s a bit like being assimilated by the Borg. You get cool new powers. But having been assimilated, if your implants were ever removed, you’d certainly die. That basically captures our relationship to Google.”

The steady erosion in anti-trust enforcement over decades and under both political parties has left firms like Facebook and Google with almost unlimited power to acquire or crush competitors. Unfettered by government, consolidation has allowed oligarchs to gain dominant shares of key markets from search (Google) to social media (Facebook) to cloud computing and book sales (Amazon); Google and Apple together provide over 95 percent of operating software for mobile devices while Microsoft still accounts for over 80 percent of the software that runs personal computers around the world.

The pandemic has strengthened their positions further, and the tech giants now account for nearly 40 percent of the value of the Standard and Poor index, a level of concentration unprecedented in modern history. Today seven of the ten richest Americans come from the tech sector. From March to June 2020, Amazon founder Jeff Bezos saw his wealth rise by an estimated $48 billion to $183 billion, making him the world’s richest man.

This remarkable concentration of wealth necessitates precisely the kind of tough action endorsed by Trump and now acted on by his Justice Department. As progressives recognized in the gilded age—and some, like Elizabeth Warren, still do today—the extreme wealth and power in few hands represents a fundamental threat to democracy. “We can have a democratic society,” noted progressive Supreme Court Justice Louis Brandeis, “or we can have the concentration of great wealth in the hands of a few. We cannot have both.”

Read the rest of this piece at Daily Beast


Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Photo credit: Gage Skidmore via Unsplash under CC0 2.0 License.