Meditations on

Friday, May 20, 2016

Why Reagan's conservatism is dead

Across Europe we're seeing a major increase in the number of nationalist parties who are fighting for their nations to remain ethnically homogenous, outside of the EU, and free to govern themselves based on their own people's preferences.

Some of these groups are fairly liberal in how they'd like their elected leaders to govern the state, others are somewhat "conservative" in the American/Reaganite sense, all of them are nationalistic.

Normally US politics are about a decade or so behind the rest of Europe and American conservatism has basically been a gradual retreat on the various progressive issues of the West. The US govt has become increasingly expansive in scope with only occasional, half-hearted checks such as Chief Justice affirming Obamacare while setting limitations on the interpretation of the Commerce Clause.

That kind of, "okay we'll let this one slide, but please don't do something like this again," move has defined GOP conservatism for years and years now.

Intermixed in this fighting withdrawal has been the rise of "neo-conservatism" in which the Republican party abandoned their classical, "just war doctrine", defensive views on foreign policy in favor of aggressive interventionism across the globe and the establishment of a "Pax Americana" in which the US led the way in establishing order in the world...or trying to, at least.

Along with these global interests came a policy that's been described as "invade the world, invite the world" as the US turned the spigot on immigration in the 1960s and have allowed the nation to be flooded with immigrants from all over the planet.

Since that time, the US has seen about 60 million legal immigrants enter the nation along with an untold number of illegal immigrants perhaps as great as 10-20 million.

The US was seriously impacted by the introduction of millions of Irish and northern-European immigrants in the 1800's but the impact has been nothing like the introduction of people from all across the world over the last 50 years.

There have been two results from these policies that have killed Reaganite conservatism in America.

Result 1: "Pax Americana" has been expensive and not particularly effective

Thanks to the rise of Islamic terrorism and the tremendous failures of either US foreign or domestic policy to curtail it, Americans don't currently feel terribly safe. Regime changes in Afghanistan, Iraq, Libya, and Syria have destabilized the Middle East and turned once reasonably stable states into cesspools where increasingly radical groups such as ISIS have been able to flourish.

Meanwhile the plan at home has been to continue to allow immigration from these unstable regions while increasing surveillance. This has led to less freedom (and convenience) for Americans yet has totally failed to eliminate the possibilities of domestic terrorism.

The cost of these policies has been astronomical. Currently the US has a military budget of $596 billion dollars, which is more than the next seven countries combined. I'd say that's an expensive bill for the taxpayer but since the US is approaching $20 trillion it's really the future taxpayer that's on the hook.

Reagan ultimately succeeded in helping Americans feel safer from the threat of Soviet nuclear weapons, but that's not been the case in the battle against Islamic radicalism. Nor is there any coherent strategic proposal on the table that would achieve that result.

Result 2: Raising Western children is becoming increasingly expensive

This is really the biggest problem facing all of Western Civilization and the number one reason that the rise of nationalism was inevitable.

Currently 1/3 of millennials say they don't even intend to have children, typically citing the high cost and responsibility of doing so. The US birth rate is at around 2.0, or replacement level (two parents need to combine to create two children or else the population will decrease), but reaching the replacement level has only been achieved thanks to higher birth rates from immigrant populations. Particularly the more family-oriented Mexicans who are due to become the majority in multiple US States within our lifetimes.

Now here's the element of this issue that people don't like to talk about.

Replacing middle-class Americans with European ancestry with poorer Mexican immigrants really changes the nation in a major way. What's more, it actually decreases the likelihood of white Americans having more children.

One of the effects of mass immigration has been the creation of multiple neighborhoods across the country that are segregated by ethnicity as "white flight" leads whites to establish new neighborhoods where they can be less concerned with violent crime or under-performing schools.

That's not a popular thing to say but it's transparently obvious in every part of the US. White Americans move into as lily-white a neighborhood as they can afford. The stated reasoning is generally a concern about crime or schools, yet the ethnic segregation that results is particularly stark.

As the populations of latinos rises, the costs of that segregation become more expensive and housing prices in the desirable areas goes up. So raising a family in a "crime-free area with good schools" becomes increasingly expensive.

At the same time, the increase in immigration has a profound impact on the supply and demand curve for the price of labor. If you have a greater supply of labor, the price goes down, and the increase of available labor in the US has seen real wages drop or stagnate.

It's hard to get the top paying jobs in the US anymore without a college degree, or often even a post-grad degree. The US govt has sought to make these increasingly available by offering debt to anyone and everyone who wants to pursue college without any kind of discrimination (except understandably against those who can afford college without debt).

The result is that we've seen a massive increase in the number of schools operating AND and a tremendous increase in the cost of education (if you artificially increase the demand for education, the price goes up), both paired with stagnating or decreasing wages for average Americans.

So if you want to be a part of the American middle-class, living in the choice neighborhoods, you have to potentially be ready to take on tens of thousands in debt for your education followed by taking on hundreds of thousands in debt to buy the necessary real estate. Very expensive.

I'll point out now that Trump (and Sanders) have been dominating at the polls amongst the white Americans who are either on the outside looking in that can't afford all these increasing costs or who have children who are on the outside looking in that can't afford all these increasing costs.

Trump blames out of control immigration, Sanders blames selfish billionaires who make policy to benefit themselves, both are actually correct.

That's the real reason why there's all this "anti-establishment" anger right now. Ceding ground in the culture wars is bad enough for everyday GOP voters but when they can see the promise of the American dream slipping away while you do nothing? Now you're really in trouble. Same story for young white liberals who want to live the good life in progressive paradises like San Francisco but can't afford the costs, Clinton ain't earning their trust.

The new conservatism

The rallying cry of the #NeverTrump movement has been that Trump isn't a true conservative and he can't be trusted to protect Reagan's movement. This is totally true in the sense that Trump isn't a conservative in the Reaganite sense and he absolutely cannot be trusted to protect the conservative movement's agenda as it has existed since the 70s and 80s.
The problem for conservative pundits and establishment figures is that most Americans don't care about that.

Cutting taxes for the wealthy, resisting massive government expansion, and continuing to wage expensive wars abroad don't do anything whatsoever to deal with the issues preventing most Americans from realizing the lives they want.

You can see this evidenced in online images like this one:
The main problem facing Western civilization is the increased cost of raising Western children, and raising children is the God-given, natural impulse of most all humans.

The solution from both parties, Republican and Democrat, has been essentially to replace Western peoples with immigrants (who, incidentally will work for lower wages and enrich their donors) and then rely on education to teach them to become productive citizens in a Western society.

The dubious effectiveness of America's public schools effectively imparting over a thousand years' worth of values and genetics aside, the result has been increased costs and anxiety for traditional Western Americans.

To further exasperate this issue, Democrats have taken to playing identity politics and rallying various minority groups to their banner by painting white males as this evil, hoarding group that is looking to prevent the minorities from grabbing their own fair share of the American pie.

Liberal Democrats have never been too great at foreseeing the consequences of their policies and now we are seeing the inevitable result. The rise of nationalism.

Trump's "doomsday" electoral strategy is to rally white Americans who feel that the policies of both liberals and conservatives are now actively working against their interests. New conservatism won't be about limited government vs expansive government, but about conserving the interests of traditional Westerners and non-Westerners who got in on the America project early and are now losing just as much.

You take a look at Trump's propositions (or some of Bernie Sanders') and you see that play out:

1. A more defensive foreign policy focused on protecting Americans and saving money.

2. Much tighter controls on immigration.

3. Protectionist trade policy intended to boost the kinds of American businesses that produce middle-class jobs.

4. Increase in the minimum wage.

5. Increased taxes on the wealthiest Americans.

There are several more policies that will likely grow in popularity and get greater mention in the future but new conservatism is going to Trump Reagan conservatism (sorry for the pun).

One of those movements has failed for years to protect the most innate interests of Westerners and the other is promising to put America first. It's a no contest struggle. The days of limited government, or nominal resistance to the expansion of government, are done. Over. The GOP isn't going to be able to trot out a Reaganite-conservative in 2020 and win diddly squat in an election. Ain't gonna happen.

My personal hope is that all of this can go down without a further increase in ethnic tension that leads to violence. In a coming column I'll talk about how America's large evangelical population can try to work to mitigate the risks of this national transition.

7 comments:

  1. The problem is that no matter what else happens, if entitlements are fundamentally changed (i.e. plans in place to get rid of or perpetually fund them) this all the clatter about elections will be meaningless. The government's finances will fall apart which means the nation's finances will fall apart (due to too much entanglement between the two) and citizen's will have to pick up the pieces quickly and locally to keep the situation from being worse than the Great Depression. The problem is that #3 and #4 on your list actually will make any collapse happen sooner and more painful, although #1 and #2 could have the opposite affect. #5 will have no observable affect due to it rich people not having enough assets to cover for even one full year of the current Federal budget.

    I agree with the theme of the article though, there is a nationalist movement in the Western world aimed at reversing some of the socio-economic-political trends we have seen over the last 30-40 years. I don't see that as good or bad but both depending on the specifics of what actual decisions are made by the country. It really is an interesting time in history which isn't a happy statement.

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    1. "The problem is that #3 and #4 on your list actually will make any collapse happen sooner and more painful, although #1 and #2 could have the opposite affect. #5 will have no observable affect due to it rich people not having enough assets to cover for even one full year of the current Federal budget."

      I'm not so sure #3 and #4 would be as destructive as you're suggesting. I think #3 would lead to a ton of self-deportation and #4 has been the hallmark of the creation of many a middle class in history.

      #5 may be a drop in the bucket but inequality is a real problem that should be tackled in a variety of different ways.

      "I don't see that as good or bad but both depending on the specifics of what actual decisions are made by the country. It really is an interesting time in history which isn't a happy statement."

      Right, it'll probably include a ton of both good and bad. Like you, I just have to observe and note that it's happening either way.

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  2. #2 I think will lead to self-deportation and could have some positive effect (increasing) on labor wages for low/no skill jobs. It also reduces the money drain on welfare services and health care.

    #3 Protectionist trade policy historically has been shown to be a net big negative on the US economy. One of the biggest factors leading to the Great Depression was a tariff enacted by Hoover's administration. One of the only things FDR did to actually help the economy was to sign the bill to repeal the tariff. The big problem is that other companies quit buying US products as a response and raise tariffs of their own.

    The thing that most people don't know is that the US manufactures more products today than at any time in history and the total value of those products is also at an all time high. The number of jobs in the manufacturing sector have been decreasing as low value product manufacturing continues to move to the lowest cost labor countries. It is a net positive to the whole world to allow these developing countries to start the process of industrialization which will eventually build their middle class.

    Here is another thing to think about. As other countries build a middle class and more wealth those countries will then be able to buy more of the high value items that we produce in the US. That increases jobs and the export imbalance is reduced.

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  3. #4 The true minimum wage is $0. Continuing to increase minimum wages in the US removes opportunity for young people, part timers, and those ambitious enough to work their way up without having many skills at first. Minimum wage laws in the US were at first used in the North and during the Jim Crow era to keep blacks out of the work force. They typically had less education and skills so the employers couldn't justify paying the artificial minimum wage. I bring this up because you see the unintended effect of today was actually the intended effect in the past. So we can be confident of what will happen to the work force.

    Plus once you increase minimum wage, you in effect inflate your currency. It is a good way to increase the cost of food and basic goods which then means the "living wage" no longer is a living wage. It is a vicious cycle of the dog chasing his tail.

    #5 Inequality I don't think is that big of an issue.

    First, there are still good amounts of upward mobility observed in the data. Those in the 99% percentile this year won't be next year of the year after. And there is also a lot of movement of individuals out of the bottom 10% into higher brackets. Are the poor of today still poor in 10, 20 years? The information we can look at says in many cases (most? I don't know), no.

    Second, part of the "inequality" in the US is due to the greater % of the population moving up in income brackets. For example, the proportion of people in the 2nd and 3rd quintile have decreased over the last generation due to many people moving up in to a higher bracket. So inequality goes up because large amounts of people are making enough money to be in a higher economic class. At the same time, the actual income amounts in the lowest quintile are increasing. Despite the rhetoric about wage stagnation, wages at the low end of the spectrum are better today.

    Third, the whole idea of growing income inequality is problematic. The floor of income is $0 and the ceiling is infinite. As the country or world becomes more wealthy you would necessarily expect incomes amounts between income brackets to be less and less equal. The only way to truly make incomes more equal is to squelch wealth creation. I think that would be way worse.

    Fourth, from a global perspective poverty has been decreasing over the last 40-50 years. The poorest of the poor are experiencing real improvements in buying power. Industrialization of the developing world is a big reason for that. Political stability in general and the opening of small scale entrepreneurship are others.

    I prefer to focus on scaling back government manipulation and interference which should improve the opportunities for the poor and middle class. More government manipulation to reduce income equality I think overall will accomplish that goal by impoverishing people.

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  4. "#3 Protectionist trade policy historically has been shown to be a net big negative on the US economy. One of the biggest factors leading to the Great Depression was a tariff enacted by Hoover's administration. One of the only things FDR did to actually help the economy was to sign the bill to repeal the tariff. The big problem is that other companies quit buying US products as a response and raise tariffs of their own."

    I've understood in the past that debt bubbles were the big problem causing the great depression. Your arguments about the value of boosting foreign middle classes is interesting though.

    "Plus once you increase minimum wage, you in effect inflate your currency. It is a good way to increase the cost of food and basic goods which then means the "living wage" no longer is a living wage. It is a vicious cycle of the dog chasing his tail."

    We can't inflate the currency, we're desperately trying to inflate it and we can't. Debt-deflation.

    As for inequality, it's a massive problem. Major inequality leads to wildly unequal societies, and when one group of people has a major power advantage over the other, exploitation follows.

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  5. Here is an article that mentions one thing I was claiming. I don't think income inequality is that big of a problem anyway, and this shows it isn't really rising in the US.

    https://www.washingtonpost.com/opinions/have-wages-stagnated-probably-not/2016/05/25/71bad1a4-228a-11e6-8690-f14ca9de2972_story.html

    I would be much more concerned for the 3rd world in terms of inequality. Who is in more peril? Middle class America? Or dirt poor Guatemalans?

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    1. That's all fine and well but if the American state doesn't keep the American people happy it will lose legitimacy and fall apart. Then what?

      A major center of order for the whole world ceases to be so and many suffer. But even if the world is fine post-America the concern of the American government should be the interests of Americans.

      Anyways, that guy is wrong. Millennials have crappy real wages and real wages are down overall. Average Americans can't break into the middle class without two-income families, which has a domino effect on a million other social factors.

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