The Decade Beginning “Winner Take All Politics”

The more I read the Hacker and Pierson Winner Take All book the more impressed I am with it and the depth of their analysis. Following is some further thoughts as I get about half way through their book.

I think they see the 1990’s as the decade of this movement as the Democrats enter the same mentality. For example it is seen in the actions of Joe Lieberman, Diane Feinstein, Robert Rubin, Bill Clinton, and Charles Schumer (author of Positivity American: Winning Back the Middle Class Majority One Family at a Time.) They seem to counter the Phil Gram method by doing the same thing. Remember that Gram-Leach-Billey bill repealed the glass Steagall Act.

Also at this point they note the Bill Clinton said “we’ve become Eisenhower Republicans” which I think is pretty accurate.

The author’s note that the data shows that our economy has typically faired better under Democratic administration than Republican administrations and yet the Republicans with the simple rant of “tax cuts” generally are perceived as the more effective party on economic issues. Their anti-Washington rhetoric is effective thought they are in it.

They also talk about the Republican power shifts in the Senate where there used to be a 20 to 1 difference in representation between population and state it has now grown to a 70 to 1 ratio. The Republicans have been effective in concentrating on these states to gain power. Of course, now it is a 60 member needed for passage of bills vs. the 51 previously.

It is also interesting to follow the work of Max Baucus (Dem, Montana) stands with the pharmaceutical companies over the years. Check him out.

The writers also get specific about who the .01% are: CEO’s, managers, lawyers, medicine and real estate folk. I had rather than of trust babies sitting on the predecessors millions making them billions. But if you look at the outrageous salaries and benefits of these folk it is astounding; mainly since 1980. For a good breakdown of this they cite “Income Inequality inthe U.S. 1913-1998 Quarterly Journal on Economics vol. 118, no. 1 of 2003 andupdate in 2007”. [You have to click to get the Excel spreadsheet.] 

Then they do a twist on Reagan’s statement, “are you better off than you were four years ago?” with “Are you better off than you were a generation ago?” with the obvious answer of “No.” Trickle Down theory didn’t work but Trickle Up does.

The author’s have given me a much clearer insight into the Obama administration, which I have consistently wondered why they don’t go for a more progressive agenda. They believe they have bought into the Winner-Take-All idea of necessity. They point out that unlike Clinton who surrounded himself with out of towners from Arkansas in his cabinet or Bush II; Obama made a good deal of outreach to the GOP congress in a more Lincoln style cabinet of keeping political foes close at hand to work out compromises that congress would be more open to. The problem of that being that the Republican Party had moved so far to the right and were intractable in the stances (such as the no new tax pledge.) They show of the 26 moderate GOP reps of2006 on 10 remain by 2008 with similar movements in the Senate. So at least half of the moderates in congress by gone bye bye and thus more gridlock than ever.

They also show that Bush II’s tax cuts cost about 3.1 trillion over a decade, which is triple the Obama Stimulus Plan. Plus not a single Republican supported the stimulus plan even though they had backed it under Bush. The GOP had become the “NO” party. Also zero GOP representatives support the health act plan.

Even though Democrats get higher ratings than the GOP by the populace they can still block whatever they want.

Another fascinating observation the authors have made is that the ever-stronger lobbyists in Washington now have Red and Blue teams. They are pouring money into whoever they can get the biggest bang for the buck, so they are now giving large amounts to the Democrats always feeding on legislative workers on ex-congress representatives to fill their lobby ranks. All this makes the Winner-Take-All process stronger and stronger.

I guess that is enough for now but stayed tuned.