Category Archives: syndication

About that Democratic Primary …

By James Kwak

Today is the day of the New Hampshire primary, and, perhaps more importantly, lots of people in California are getting their ballots around now. Before you cast your vote in the Democratic presidential primary, I wish you would read Take Back Our Party, either online (for free) or in print. But I know most of you won’t, so this is what I want to say.

As a preamble, if you are a moderate Democrat—if you think welfare reform and financial deregulation were good ideas; if you think, along with Barack Obama, that more oil production is a good thing; if you think that America’s health care problems can be solved by private health insurance companies—what I am going to say is not for you. Go ahead and vote for Joe Biden, or Pete Buttigieg, or Amy Klobuchar.

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Take Back Our Party, Print Edition

By James Kwak

I’ve never wanted to write a book as much as I wanted to write Take Back Our Party. And I’ve never wanted people to read one of my books as much as this one—in particular, before the 2020 Democratic primary season ends. For that reason, I bypassed the usual publication route. (As my editor at Pantheon liked to say, the period for turning a manuscript into a book is, for unknown reasons, the same as the gestation period of a human. In his defense, he did get both 13 Bankers and White House Burning out in around 5–6 months.)

cover imageInstead, David Dayen, executive editor of The American Prospect, agreed to publish the book online, and it went live here in December. In addition, I wanted there to be a print edition for people (like me) who, well, prefer reading things on paper—and for mailing to people who should read it. Ryan Grim at Strong Arm Press gamely agreed to publish it, knowing that it was already available on the Internet. Jordan Jones did the interior design and Soohee Cho did the cover. The print edition has a small number of corrections, it has real footnotes with accurate page citations (something you can’t do with Internet-style hyperlinking), and it has a descriptive index so you can look up your favorite neoliberal from the past three decades.

You can order a print or ebook copy via the Strong Arm website (or, of course, from your least-favorite monopolist). They should start shipping on Tuesday, and I believe the ebook is available right now. The online version at the Prospect will still be available for the foreseeable future.

I’m pretty sure I’m going to lose money on this, taking the book design costs into account, but that was never the point. The point was for people to read it. So do that now.

Economism on Marketplace

By James Kwak

David Brancaccio of Marketplace has started a new radio project called Econ Extra Credit: reading a first-year economics textbook, one chapter per week, along with his listeners. Luckily, he chose one of the textbooks produced by the CORE project, a group of economists who set out to rewrite the economics curriculum in the wake of the financial crisis and Great Recession.

David invited me to talk with him about “Economics 101” and the one-sided impression of the world that people often take away from the class—especially those for whom it is their only economics class. This, of course, was the subject of my 2017 book Economism: Bad Economics and the Rise of Inequality.

You can hear the whole interview here. Enjoy!

False Choice

By James Kwak

The scene: Two well-dressed, fully employed people sitting at a table in the chic café at their workplace.

Martha: Do you like your health plan?

George: I love it.

Martha: How much do you pay for your plan?

George: About $550 per month.*

Martha: Do you have a deductible?

George: I have a $1,000 deductible for my whole family.

Martha: What about co-payments?

George: I have to pay 20% of the cost for hospital stays and outpatient surgery.

Martha: What if you just want to see the doctor?

George: I pay $25 to see my primary care physician, and $40 to see a specialist.

Martha: Can you see anyone you want?

George: I pay more if I see people out of network, but the insurer still pays something.

Martha: I’m thinking about switching to the new plan they’re offering. Have you heard about it?

George: No. What is it?

Martha: Well, it covers everything, including vision and dental. And you can see anyone you want.

George: How much does it cost?

Martha: Nothing. There are no premiums and no deductibles or co-payments. Well, you may have co-payments for prescription drugs, but there’s an annual maximum of $200.

George thinks.

George: I think I’ll keep my health plan. I just like it.

End scene.

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Take Back Our Party, Chapter 4: Our Democratic Party

By James Kwak

Ever since I finished Economism (and the 2016 elections, which happened about the same time), there has only been one thing I have wanted to write. I tried in “The Importance of Fairness: A New Economic Vision for the Democratic Party,” and in “A New Economic Vision, in 27 Words,” and again in “Hey Democrats, the Problem Isn’t Jobs and Growth.”

I wanted to write this thing because it has become clear to me not only that our economic world is screwed up in all sorts of obvious ways, but also that the only viable path to fixing it runs through the Democratic Party. The Republican Party is what it is; even if it weren’t currently in the grip of a madman, it would at best be the party of Mitt Romney, Paul Ryan, Lindsay Graham, Marco Rubio, Ted Cruz, … you get the point. The 1% will always have their party. The problem is that the 99% don’t have theirs. The result has been the rightward drift of our entire political system, in which Republicans use their turns in power to advance their extremist agenda, and we Democrats use our at-bats to hold the line and nominate reasonable people to the Supreme Court.

So the important question is how the Democratic Party can be rallied behind a new economic vision that can both stem the rising tide of inequality and wrest control of the political landscape back from the conservatives. And that, of course, means we have to replace the economic vision of Clinton, Obama, Clinton, and most of the primary candidates today: the fantasy that private sector growth, aided by clever government nudges to make markets work better, can solve all problems for all people.

The working title of Take Back Our Party—the one I carried around in my head but was too embarrassed to tell people—was Manifesto of Our Democratic Party. (David Dayen eventually agreed with me that it was too presumptuous.) But they idea was very simple: They—the party establishment—have their Democratic Party; but we have a vision of a different Democratic Party. And ours is better. Hence the titles of Chapters 1 and 4.

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Take Back Our Party, Chapter 3: Bad Politics

By James Kwak

Chapter 2 of Take Back Our Party made the case that the market-centric policies of the Democratic establishment have failed to do anything about—and in many cases have exacerbated—the rise of inequality. Chapter 3 continues the indictment, arguing that the “growth and opportunity” doctrine of Clinton and Obama has also failed as politics.

The New Democrats chose to identify themselves as the party of jobs and growth because they did not want to be seen as the party of redistribution and welfare. But in copying the Republican message of market-driven growth, they also lost the ability to differentiate themselves from those same Republicans. While conservatives promised that slashing regulations and cutting taxes would unleash the ingenuity of the private sector, the Democratic message was roundabout and equivocal: yes, markets are the source of prosperity, but sometimes they suffer from market failures, so cleverly designed government policies are required to make them work properly, etc. We may be right about the economics, but as politics it fails to establish a compelling choice.

But the bigger problem is that by not doing anything about inequality for so many years, the Democratic leadership frittered away the brand equity that the party had built up since the days of Franklin Roosevelt and the New Deal. Once upon a time, lower-income voters assumed that, at least on economic issues, the Democratic Party stood for them. As Bill Clinton and then Barack Obama did little that was recognizably, specifically for workers, they stopped believing that the party cared about them. Which brought us to 2016, when Donald Trump vastly outperformed Mitt Romney among low-income voters.

For more, the entire chapter is up at The American Prospect, as usual.

The Crisis of the Democratic Establishment

By James Kwak

The Democratic Party is at a crossroads. On a host of issues, it is clear what we stand for and how we differ from the Republicans: minority rights, abortion, immigration, gun control, climate change, the importance of facts, and, of course, whether or not the president is above the law. On economic issues, however, the picture is not so clear. Elizabeth Warren’s speech at St. Anselm’s College on Thursday is an attempt to fix that problem—and also a shot across the bow of the Democratic elite. 

With each passing year, the widening gulf between the very rich and everyone else becomes more and more apparent. Even after ten years of economic expansion and with unemployment at historic lows, working-age adults in the bottom half of the income distribution make less than they did a full two generations ago, while the very rich now count their wealth with twelve digits instead of eleven. Yet the Democratic establishment insists that we must stay the course, and shared prosperity will be just around the corner. 

Elizabeth_Warren_Manchester_NH_October_2016

Elizabeth Warren campaigning for the Democratic establishment back in 2016 when everyone got along. Photo: Tim Pierce (CC BY-SA 4.0)

Ever since the rise of the New Democrats in the 1980s and the election of Bill Clinton in 1992, the party’s power brokers have preached the gospel of “growth and opportunity.” (This is the story I tell in the first chapter of my new book, Take Back Our Party, available for free at The American Prospect.)  All good things come from the private sector; government’s role is to help markets function efficiently, create the conditions for private sector growth, and help people participate in those markets. Hence welfare reform, financial deregulation, and Obamacare, among other things. Hence also the intense, coordinated assaults on Bernie Sanders in 2016 and both Sanders and Warren today.

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