Tag Archive for: politics

How America Turned Into the EU

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For many liberal Americans, the European Union is the perfect elite model: a non-elected, highly credentialed bureaucracy that embraces and seeks to enforce the environmental, social and cultural zeitgeist of the urban upper classes. It is, as the establishment Council on Foreign Relations puts it, a “model for regional integration”.

Now that “progressives” have returned to the White House, aping the EU has become a national policy. Taking his cue from his party’s Left, President Joe Biden has already sought to federalise many functions — from zoning to labour laws to education — that historically have been under local control.

But while Biden’s administration has been embraced by the Eurocrats, Americans would do well to consider the EU’s remarkable record of turning Europe into the developed world’s economic and technological laggard. Overall, nearly a third of Europeans consider Brussels an utter failure; half admit the EU’s pandemic response was inadequate. Indeed, while the American media was busy denouncing the US response to Covid under Trump as the “worst” in the world, the EU was showing them how it was done: of the 15 countries suffering the highest fatality rates, 13 are European, of which nine are in the EU — all worse than the US.

The US may always have had a “Federal Government”, but the notion of dispersed power gained approval from many on the Left only after President Trump’s election, as many Democrats looked to local government as a means of fighting back. Cheerleaders for Barack Obama’s imperial presidency, such as The New Yorker, started to embrace states’ rights with an almost Confederate enthusiasm.

But once the Democrats won back the House in 2018, the appeal of total central power became irresistible, with leading Democrats competing for who could most expand DC’s remit. Kamala Harris, now Vice President, demanded Washington give teachers across the country a federally funded five-figure pay rise, while Beto O’Rourke and Julian Castro sought to hand over local planning and zoning powers to the DC bureaucrats.

President Trump, for what it’s worth, had little interest in such issues — though even he made a point of trying to overturn states’ laws when it suited his agenda, particularly with the border wall and his attempts to crack down on radical education policies. In many ways, Trump’s authoritarian brand of Republicanism was always going to express an interest in an expanded federal role.

Yet in looking to expand federal power, Biden is picking up the mantle of President Obama, regarded by Republicans as one of the most prolific authors of executive power in US history. During its first six years, the Obama administration put forward more than twice as many major rules as George W. Bush’s government during the same period, focusing largely on issues such as climate change and immigration.

Of course, the notion of decentralised control — and the benefits associated with it — predates America. Ancient Roman cities enjoyed particular autonomy from central control, while the great Italian and Dutch cities of the early modern period developed extensive forms of self-government and, in some cases, functioned as independent states. Indeed, born out of Enlightenment ideals about limited government, the US Constitution lays out a system of dispersed power, creating in localities “the habits of self-government”.

In some cases, however, federal action was necessary; for example, to end the abomination of slavery and keep the Republic safe from European encroachments. And of course, some local governments continued to pass detestable laws, such as Jim Crow segregation in the South — though states also innovated in a more positive direction, providing models for other jurisdictions. For example, western states less tied to parochial ways of thinking — such as Wyoming, Utah, Idaho, Washington and California — introduced female suffrage well before the federal government. New York built the earliest welfare state, while my adopted home of California invested heavily in roads, schools, universities and technical training, leading to its remarkable boom in the late 20th Century.

States, as progressive Supreme Court Judge Louis Brandeis noted, were “laboratories of democracy”, places that experimented with policies that, when they were successful, would be adopted by others, and sometimes the federal government. In contrast, Europe’s bureaucratic meddling has served to keep wealth concentrated, as it has been for centuries, in places like Germany, the Netherlands and Scandinavia, while the south and east lag perpetually behind.

Read the rest of this piece at UnHerd.

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: European Parliament via Flickr, under CC 2.0 License.

Is Congress Ready to Invest in Regional Economies?

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By: Alan Greenblatt
In: Governing

A few parts of the country have made out like bandits in recent years. In the decade between the Great Recession and the pandemic plunge, 90 percent of the job growth in technology and innovation sectors occurred in just five major metropolitan areas. In any given year, roughly 80 percent of the nation’s venture capital funding flows to just three states: California, Massachusetts and New York. The pandemic didn’t change that.

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America’s First Infantada

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We are here to guide public opinion, not to discuss it.
Emperor Napoleon Bonaparte, 1804

By the calendar, the American republic is mature, but it’s becoming rapidly ever more infantilized. In everything from schooling to Covid-19 to race and global warming, we seem to be looking for simple, easy answers that a toddler might appreciate but healthy adults know are too pat to be true. Read more

The Looming Democrat Civil War

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The Democratic Party has always been a loose confederation of outsiders — poor farmers, union members, populists, European immigrants and southern segregationists. As the actor Will Rogers said in 1924: “I am not a member of any organised political party. I am a Democrat.” Yet despite being unwieldy, it was often effective, and usually beat the more homogeneous country-club-led Republicans.

Today, the Democratic Party seems more united, still glowing in the aftermath of the defeat of Trump. But that is just an illusion: Joe Biden’s first hundred days in office are almost up — and the internal conflicts of his party are bound to surface soon.

These divisions are not petty, or merely personal, but based on demands from a number of incompatible constituencies and ideologies. Take the Democrats’s newest supporters: America’s tech oligarchs, Wall Street financiers and urban real estate speculators. They may act “woke” on issues surrounding gender, race and the environment. But such “virtue signalling” is no substitute for the drastic policies pushed by the party’s Left: the confiscation of vast wealth, the break-up of monopolies and the introduction of ever-higher taxes. Big business, after all, is the clear winner in the status quo that the Left, with good reason, despises.

But the impending Democratic civil war is more than, as some conservatives see it, a two-dimensional conflict between “the establishment and the radicals”. Largely ignored in this narrative is the most unappreciated, least articulate yet arguably the largest Democrat-voting bloc: middle and working-class moderates who make up roughly 50% of the party. These voters may often favour populist economics, but remain threatened by the cultural, economic and environmental policies pushed by the other two factions.

All of which leaves Biden in an unenviable position: if he seeks to placate both the corporate woke and the activist Left, the Democrats could sever their last connections with the vast majority of the country, and allow the GOP, even in the wake of the Trump disaster, to recover political momentum.

For what it’s worth, Biden has often been associated with this largely neglected group of what might be called FDR Democrats. His reputation as a moderate “reasonable guy” helped secure the votes of older Democrats, Independents and African-Americans in the recent election. In the primaries, it gave him an edge over both the radical Sanders, whose program frightened many older voters, and the candidates of the corporate elite, notably the well-financed former Mayor of New York, Michael Bloomberg. These voters may be fading in the numbers, but still constitute up to 44% of the total electorate, easily the largest identifiable class constituency.

Certainly, parts of Biden’s program — expanding health coverage as well as investments in basic infrastructure and manufacturing — could appeal to these voters, who are now generally supportive of an activist government. But Biden has also backed measures on cultural and environmental issues that are unlikely to win over the traditional working and middle classes. For example, fracking bans, already endorsed by Vice President Harris, could, according to the US Chamber of Commerce, cost 14 million jobs, far more than the eight million lost in the Great Recession.

Belying his regular guy image, Biden has also expressed support for programmes that would force suburban areas to densify. It is likely few suburbanites, the majority of all Americans, would welcome federal overseers deciding how their communities should be changed. Meanwhile, attempts to force residents out of their cars and into transit, something they were abandoning well before Covid, seems quixotic as well as politically stupid. The President’s Transportation Secretary has even suggested a tax on “vehicle miles” travelled, a measure almost calculated to alienate middle and working-class families outside a few dense urban cores.

Read the rest of this piece at Unherd.

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: Official White House Photo by Adam Schultz via Flickr under U.S. Government Work.

Who Will Control the 21st Century? Whoever Controls Space

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It’s impossible to predict the future. But one thing you can be sure of: few things will be more important to the lives of our children than who wins the emerging, epoch-defining struggle for control of space.

This is a battle just beginning over who will control the communication satellites so central to our economy, as well as the vast resources of other planets. But ultimately, the new space battle represents a war over opportunities for colonization, for an increasingly resource-stretched and crowded earth.

This may sound like apocalyptic sci-fi. But space is already becoming big business, and it’s certain to get much bigger. Boosted by a huge surge of investment, space-industry global revenues are up more than twofold since the early 2000s, from $175 billion in 2005 to almost $424 billion in 2019. By 2040, Morgan Stanley projects annual global space-industry revenues to reach $1.2 trillion.

Today the big money—$271 billion of it—is in communications satellites and launch services. Soon enough, there may be a market for things like space tourism, manufacturing in space and even, eventually, the old dream of colonization.

But in the long run, the key struggle will be over military applications, and, perhaps even more critical, control of valuable resources. The monetary potential in mining key resources like lithium, cobalt and gold has been estimated to be as high as 27 quintillion dollars.

But the space war is not just about money. It’s also about power. And America faces a challenge on the galactic front from China, Russia, the European Union, Japan, and even Israel. And as Brandon Weichert notes in his book Winning Space: How America Remains a Superpower, America’s claim to being the world’s superpower rests to a large degree on winning the space front.

Right now, military advantage clearly remains a prime motivator. Control of satellites is crucial to any future conflict, as militaries depend on satellite communications for both surveillance and battlefield operations. The winner of future “star wars” will be those who can control access to space.

Unfortunately for the U.S., China is very aware of this. Ye Penjiang, the head of its moon program, views space from an imperial perspective, comparing it to the islands China is occupying or creating in the South Seas. Penjiang has gone so far as to suggest that China’s “descendants” would never forgive them for giving up this new realm.

So it’s not surprising that Chinese young people now dream of being astronauts, like Americans in the 1960s, while most of our young people seem more interested in becoming social media influencers, more like Justin Bieber than Buzz Aldrin as Weichert archly put it.

Read the rest of this piece at Newsweek.

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.

Marshall Toplansky is a clinical assistant professor of management science at the Argyros School of Business and Economics at Chapman University. He is a research fellow at the university’s Hoag Center for Real Estate and Finance and at the Center for Demographics and Policy.

Homepage photo credit: SpaceX, via Flickr used under CC 2.0 License.

Hope and Fear: Can We Avoid a Racial Apocalypse?

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Jamil Ford still recalls the disorders of late May. ‘It was like Baghdad’, he recalls, even as jurors listen to the arguments during the trial of Derek Chauvin, the police officer accused of killing George Floyd. ‘I constantly think about it. The past history does not go away’, the African-American architect recalls, noting with trepidation possible National Guard deployments. ‘The mental part is still there.’

I know how he feels. In 1992 we went through this same process in Los Angeles when the police were exonerated in the beating of Rodney King. This unleashed a three-day explosion of often violent protests, resulting in $1 billion in damages and over 50 fatalities. In the end, the disorder led to some necessary shifts in police procedures but ultimately left the area relatively poorer and considerably less black than before.

Will things be different this time around? No politician in American history owes more to African-American leadership and voters than Joe Biden. His flailing campaign was rescued from the respirator by South Carolina’s heavily black Democratic electorate. African Americans sustained his path through states such as Texas. Since taking office, Biden’s commitment to battling the ‘sting of systemic racism’ and encroaching ‘white supremacy’ has accompanied his early actions and seems to have shaped many of his appointments.

The left’s and the media’s embrace of racial apocalypse, both in the US and in Britain, remains sadly selective. The recent Atlanta murders, given exhaustive coverage, appear to be the product not of Trumpista brownshirts but a singular, screwed-up madman. Meanwhile, attacks on Asians historically have come in large measure from minorities, largely African Americans. The most recent attack on Capitol Hill came not from Trumpistas but a follower of the ultimate anti-white, Louis Farrakhan.

The same media that hypes anti-Asian violence by whites usually ignores that by other ‘people of colour’. When the perpetrator is a Muslim jihadi, as was the case in Colorado, coverage has been less, even if the body count was twice as high. The ‘people of colour’ solidarity that bleeds over the pages of mainstream media has little room for nuance. It tends to ignore the fact that many Asians, and many Hispanics, oppose such things as quotas to selective high schools and colleges.

Similarly, most minorities seem not to share common ground with posturing politicians, and progressive intellectuals, who have excused looting as a form of racial redress. Minority business people generally don’t regard random violence as justice; the impact on business enterprises is felt particularly keenly in Minneapolis. A focus on police abuse is clearly needed, but the vast majority of Americans – including millennials and minorities – do not favour defunding law enforcement. They may be more concerned with the resurgence of violent and other crime in our core cities, even though it is often downplayed in the media.

The impending threat of violence in Minneapolis and elsewhere, offers manna from heaven for some but disaster for most. The racial-protest industry, perfected by the openly neo-Marxist Black Lives Matter, has raised a reported $90million, much of it from corporate largesse. What civil-rights activist Bob Woodson calls ‘race-grievance predators’ – like Ibrahim Kendi – are being bankrolled by oligarchs, like Twitter’s Jack Dorsey.

Read the rest of this piece at Spiked.

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: Ted Eytan via Flickr under CC0 2.0 License.

What Happened to Social Democracy?

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In a world that seems to be divided between neoliberal orthodoxy and identitarian dogmas, it is possible to miss the waning presence of traditional social democracy. Born of the radical Left in Marx’s own time, social democrats worked, sometimes with remarkable success, to improve the living standards of working people by accommodating the virtues of capitalism. Today, that kind of social democracy—learned at home from my immigrant grandparents and from the late Michael Harrington, one time head of the American Socialist Party—is all but dead. This tradition was, in retrospect, perhaps too optimistic about the efficacy of government. Nevertheless, it sincerely sought to improve popular conditions and respected the wisdom of ordinary people.

In its place, we now find a kind of progressivism that focuses on gender, sexual preference, race, and climate change. Abandoned by traditional Left parties, some voters have drifted into nativist—and sometimes openly racist—opposition while more have simply become alienated from major institutions and pessimistic about the future.

The revolution in class relations

Social democracy was a product of the inequities of the industrial era and the consequent solidarity that flourished among working people. This often resulted in greater justice for racial minorities. The German Social Democrat Eduard Bernstein developed an “evolutionary” ideology based on gradualism, practical results, and a commitment to democratic norms. Observing late-19th century Britain, where unions were accepted even in business circles, Bernstein noticed that working conditions, contrary to Marxist dogma, were steadily improving. He believed that the proletariat was evolving from an oppressed underclass into a more upwardly mobile group, whose goal was to find “an appropriate status in industrial society.” For their efforts, Social Democrats were denounced as “social fascists” by Stalin, and Antifa’s predecessors—the German Antifaschistische Aktion—spent at least as much time fighting them as fighting the Nazis. A fatal error.

After the Second World War, however, social democrats enjoyed considerable success while the remarkable productivity of the private sector helped transform the once-forlorn proletariat into something more bourgeois in aspiration. A study covering the United Kingdom, the Netherlands, and the United States shows that all three saw a rapid decline in the concentration of wealth until the 1970s. Their program focused on physical needs such as boosting access to electricity and improving public health and education.

Never before had so much prosperity and relative economic security been so widely enjoyed. By the 1960s, the American labor movement could boast of “developing a whole new middle class,” said Walter Reuther, president of the United Auto Workers. Industrial laborers could afford to buy homes, send their kids to college, and live the kind of life only the affluent had previously enjoyed. Western Europe benefited from the same process—economic growth helped finance a welfare state that provided greater security and improved the prospects of most families; the rapid growth of export industries, in particular, was an integral part of the original Swedish social model of increasing wages without inflation.

Starting in the 1970s, such things as foreign competition, mass immigration from developing countries, automation, and the growing financialization of economic power undermined this progress. In the United States, data from the Census Bureau show that the share of national income going to the middle 60 percent of households has fallen to a record low since the 1970s. Wealth gains in recent decades have gone overwhelmingly to the top one percent of households, and especially to the top 0.5 percent. Social mobility has declined in over two-thirds of European Union countries, including Sweden. Across the 36 wealthier countries of the Organization for Economic Cooperation and Development, the richest citizens have taken an ever-greater share of national GDP while the middle class has shrunk. Much of the global middle class is heavily in debt—mainly because of high housing costs—and “looks increasingly like a boat in rocky waters,” suggests the OECD.

Parties repositioning

One might assume that this concentration of wealth would energize traditional working class parties—Labour in Britain and Australia, the Liberals in Canada, the Democrats in the US—but they shifted their focus away from blue-collar and lower-middle-class workers. Instead, leftwing parties are increasingly peopled by, and cultivated support from, the well-educated professional class—now an estimated 15 percent of the US work force—along with the corporate elites and academic clerisy. These classes have done well over the past few decades, while the traditional lower-middle and working classes have languished.

Read the rest of this piece at Quillette.

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: Nicolas Nieves-Quiroz via Unsplash under CC0 1.0 License.

Trust the Science: The Blue State Surge is Real

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For months the conventional wisdom among Democrats, amplified by their obliging claque in the media, was that lockdowns played an essential role in containing COVID-19. The great heroes, in addition to Anthony Fauci, were hardline governors like Michigan’s Gretchen Whitmer, California’s Gavin Newsom and, most of all, New York’s Andrew Cuomo.

Yet now, more than a year later, the lockdown states—starting with New York and New Jersey—are again leading the nation in coronavirus infections and deaths per capita.

By contrast, some of the states with Republican governors who were routinely castigated for unlocking things and supposedly killing their residents, most notably Florida, Georgia and Texas, did indeed suffer an increase in fatalities last summer. But since then, even after opening their economies, these states continue to suffer fatality rates per capita well below those of the locked-down Northeastern states and about equal to California, which has maintained one of the nation’s strictest lockdowns.

What emerge from these trends are some clear issues with transmission that transcend lockdowns, mask mandates and other punitive measures. However justified, such actions have not addressed the fundamental reasons why some geographies and populations have suffered so much more than others. That’s to say that while the blue state governors aren’t necessarily to blame for the surges their states are experiencing, it’s clear that the economically and personally disruptive measures did not have the expected impact.

What did make a big difference, it turns out, is not so much the severity of lockdowns but pre-existing conditions. The likely cause here can be best identified as “exposure density” brought on by crowded housing, transit, and office environments.

That helps explain why, after New York City’s suburbs were hit hard in the first wave, the current surge has hit the outer boroughs, where a much higher share of workers have had little choice but to continue taking the subway or other transit.

Nationwide, urban exposure to the pandemic also reflects their greater inequality. Higher rates of poverty and overcrowded housing accentuate the worst effects of the pandemic, which tore through impoverished parts of New York, Houston, Los Angeles County, Chicago’s poor south side, and similar areas. The Bronx, for example, has suffered an 80 percent worse death rate than denser yet wealthier Manhattan, while Brooklyn’s rate is 50 percent worse than Manhattan’s.

This can be seen also in the Los Angeles metropolitan area, whose sunshine-blessed and auto-dominated society suffered a fatality rate 60 percent below that of transit-oriented metro New York. Yet while fatality rates have been very low in affluent areas with fewer crowded households, such as west Los Angeles and Irvine, they have been much higher in areas like east and south Los Angeles. In Orange County, the fatality rate in affluent, single family dominated Irvine is 22 per 100,000 compared with 195 in neighboring Santa Ana, which is heavily Hispanic, poor and suffers crowded housing conditions.

This is an international phenomenon seen across the world’s great urban areas. During the first lockdown, almost 20 percent of the Parisian population fled to the countryside, accelerating an escapist trend that had been underway for years: the core city of Paris has lost 700,000 residents (nearly 25 percent of its population) since 1954, while millions of new inhabitants have swelled the suburban population. Meanwhile, the densely packed Department of Seine-Saint-Denis, a place synonymous there with inner ring suburban poverty, had a staggering 130 percent excess mortality rate when the virus first hit last year.

Read the rest of this piece at The 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.

Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Photo credit: Matryx via Pixabay under CC0 1.0 License.

The California Economy vs. Sacramento

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Over the past few years California’s plight has taken on mythic proportions — a cautionary tale of progressive woe among conservatives, but a beacon for a future enlightened capitalism among its woke supporters. The current battle over the potential recall of the preening governor, Gavin Newsom, likely will enhance these extreme interpretations on both sides, but likely will not be sufficient to make the changes needed to restore the state’s legendary promise.

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Why More Americans Should Leave Home and Move to Other States

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America has been lazily divided by pundits into red and blue states, as if there weren’t constant movement of people between them. Fortunately, reality is a lot more purple — and hopeful — as immigrants, people of color and millennials reshape parts of America by voting with their feet and moving.

These demographic groups are migrating from the big coastal cities to the suburbs, the interior cities, the South and even parts of the Midwest. And in the process, these newcomers change both their new homes and are also changed by them.

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