Elbow Grease Economics
We all know that for decades Republican economic policy consists of what is known as Voodoo Economics — a mixture of supply-side tax cuts for the rich and deregulation which leads to rampant abuse and a crashing economy. We have seen this fail over and over again, and yet, it has never left their orthodoxy. It failed when Regan tried in the 80s, it failed when Bush’s policies led to the recession in 2008, and it failed this year in Kansas.
In the past several years, a center-left version of this economic failure has emerged, touted by what our beloved Bernie bros call neo-liberals, consisting of globalization and technological innovation in the private sector which has ignored workers and communities, enabling income inequality to run as rampant as under the trickle-down system.
This is what I like to call Social Media Economics. For a prime example, you can see Thomas Friedman’s op-ed in the Times called Self-Driving People. He writes an ode to the gig economy, presenting a glowing image in high-resolution rendering of the benefits of Airbnb’s new Experiences platform. This article is the instagram of economic theory — the perfect shot of brunch, shared before the bill comes.
The bill has come, however, and we now see that the gig economy does not provide the social mobility nor independence of labor that it promised. Airbnb rentals conitnue to push out long-term residents and challenge industries that provide stable employment for low and middle class people in favor of temporary, piece-meal monetary gains for the already affluent. Uber is an unsuccessful business model floating billion dollar losses on venture capital funds while exploiting their drivers and abusing their employees. Only someone completely isolated from reality would find promise in the gig economy, just as one would hope in the coal industry.
Earlier this week the Democratic party launched its own set of economic policies, which they are calling, for whatever reason, “A Better Deal.” I would rather call this Elbow Grease Economics. Their policies are common sense, on the ground fixes for identifiable problems. Wages are stagnating, so they propose raising the minimum wage. Giant mergers are raising prices for consumers and limiting workers’ bargaining ability, so they propose cracking down on regulatory enforcement and rewriting the rules for mergers. Public infrastructure and education is crumbling, isolating millions of people, so they propose investing in rebuilding infrastructure and increasing internet access.
These policies are not visionary, nor are they regressive. They don’t have a bold message, attractive narrative, and the enticement of a quick fix and comfortable prosperity. They are unglamorous workhorses. They will take time to implement and even longer to see the benefits, but they will actually fix problems and start to piece back together the fabric of our society.
Discrete policies don’t always fit into a clear narrative or catchy slogan. It’s hard to see how all of these proposals constitute a better deal, but as that phrase is nearly meaningless, I guess they might as well. For me, the narrative is about rolling up our sleeves and getting to work. It’s fixing problems, not speculating on a reality we would like to see. One day, I hope liberals can implement a more sweeping, utopian vision of the world with universal health care, benefits for all workers, and quality public education. In order to get there, we need to apply some elbow grease.
