Constitutional Crisis?

The following was a provocative essay published in the NYTimes. Since it touches on the nexus of economics and politics, I deemed it an appropriate topic for this blog.

Our Constitution was not built for a country with so much wealth concentrated at the very top nor for the threats that invariably accompany it: oligarchs and populist demagogues.

No. It wasn’t.

But we can never seem to anchor our attention on the true determinants of economic power. The distribution of wealth is tilted toward those who control society’s primary productive resources. In feudal and agrarian societies it is land; in industrial and post industrial societies it is energy and finance capital; in the information society it is information data and finance capital.

The imperative for a liberal democracy is to democratize land, to democratize finance, and, especially in the 21st century, to democratize big data. There are trade-offs implied (especially the necessary democratization of investment risk), but the objective must be liberty and justice, not national wealth, because sustainable wealth is only derived from liberty and justice.

Aside from economic inequality there is a related but different plague upon the body politic these days. That is the anti-democratic ideology of identity politics and multiculturalism. These ideologies probably arose as a response to the frustration of economic inequality and power that demanded a division into victims and victimizers. The victimizers, of course, were corporate, white, and male, while the victims were all other identity groups not so defined: ethnic and racial minorities, women, LBGTs, etc.

But a constitution based on compromise through participation cannot possibly manage identity groups based on biology and genetics.  There is no compromising our biological identity, there are only zero-sum battles with winners and losers. Thus, the rule of the victimizers must be torn down, though it cannot end there. Coalitions of identity groups do not hold together after the common enemy has been vanquished, so they turn on each other until we see the complete Balkanization of democratic polities.

We will need to solve both these problems – economic inequality and identity Balkanization – in order for our democracy to restore itself and guarantee liberty and justice for all. Unfortunately this professor, and most of our political leaders in the oligarchy, don’t really have any promising ideas about how to go about that.

There are other things the Constitution wasn’t written for, of course. The founders didn’t foresee America becoming a global superpower. They didn’t plan for the internet or nuclear weapons. And they certainly couldn’t have imagined a former reality television star president. Commentators wring their hands over all of these transformations — though these days, they tend to focus on whether this country’s founding document can survive the current president.

But there is a different, and far more stubborn, risk that our country faces — and which, arguably, led to the TV star turned president in the first place. Our Constitution was not built for a country with so much wealth concentrated at the very top nor for the threats that invariably accompany it: oligarchs and populist demagogues.

From the ancient Greeks to the American founders, statesmen and political philosophers were obsessed with the problem of economic inequality. Unequal societies were subject to constant strife — even revolution. The rich would tyrannize the poor, and the poor would revolt against the rich.

The solution was to build economic class right into the structure of government. In England, for example, the structure of government balanced lords and commoners. In ancient Rome, there was the patrician Senate for the wealthy, and the Tribune of the Plebeians for everyone else. We can think of these as class-warfare constitutions: Each class has a share in governing, and a check on the other. Those checks prevent oligarchy on the one hand and a tyranny founded on populist demagogy on the other.

What is surprising about the design of our Constitution is that it isn’t a class warfare constitution. Our Constitution doesn’t mandate that only the wealthy can become senators, and we don’t have a tribune of the plebs. Our founding charter doesn’t have structural checks and balances between economic classes: not between rich and poor, and certainly not between corporate interests and ordinary workers. This was a radical change in the history of constitutional government.

And it wasn’t an oversight. The founding generation knew how to write class-warfare constitutions — they even debated such proposals during the summer of 1787. But they ultimately chose a framework for government that didn’t pit class against class. Part of the reason was practical. James Madison’s notes from the secret debates at the Philadelphia Convention show that the delegates had a hard time agreeing on how they would design such a class-based system. But part of the reason was political: They knew the American people wouldn’t agree to that kind of government.

At the time, many Americans believed the new nation would not be afflicted by the problems that accompanied economic inequality because there simply wasn’t much inequality within the political community of white men. Today we tend to emphasize how undemocratic the founding era was when judged by our values — its exclusion of women, enslavement of African-Americans, violence against Native Americans. But in doing so, we risk missing something important: Many in the founding generation believed America was exceptional because of the extraordinary degree of economic equality within the political community as they defined it.

Unlike Europe, America wasn’t bogged down by the legacy of feudalism, nor did it have a hereditary aristocracy. Noah Webster, best known for his dictionary, commented that there were “small inequalities of property,” a fact that distinguished America from Europe and the rest of the world. Equality of property, he believed, was crucial for sustaining a republic. During the Constitutional Convention, South Carolinan Charles Pinckney said America had “a greater equality than is to be found among the people of any other country.” As long as the new nation could expand west, he thought, it would be possible to have a citizenry of independent yeoman farmers. In a community with economic equality, there was simply no need for constitutional structures to manage the clash between the wealthy and everyone else.

The problem, of course, is that economic inequality has been on the rise for at least the last generation. In 1976 the richest 1 percent of Americans took home about 8.5 percent of our national income. Today they take home more than 20 percent. In major sectors of the economy — banking, airlines, agriculture, pharmaceuticals, telecommunications — economic power is increasingly concentrated in a small number of companies. [Don’t we need to discuss why before we embark on solutions?]

While much of the debate has been on the moral or economic consequences of economic inequality, the more fundamental problem is that our constitutional system might not survive in an unequal economy. Campaign contributions, lobbying, the revolving door of industry insiders working in government, interest group influence over regulators and even think tanks — all of these features of our current political system skew policy making to favor the wealthy and entrenched economic interests. “The rich will strive to establish their dominion and enslave the rest,” Gouverneur Morris observed in 1787. “They always did. They always will.” An oligarchy — not a republic — is the inevitable result.

As a republic descends into an oligarchy, the people revolt. Populist revolts are rarely anarchic; they require leadership. [See Trump AND Sanders.] Morris predicted that the rich would take advantage of the people’s “passions” and “make these the instruments for oppressing them.” The future Broadway sensation Alexander Hamilton put it more clearly: “Of those men who have overturned the liberties of republics, the greatest number have begun their career by paying an obsequious court to the people: commencing demagogues, and ending tyrants.”

Starting more than a century ago, amid the first Gilded Age, Americans confronted rising inequality, rapid industrial change, a communications and transportation revolution and the emergence of monopolies. Populists and progressives responded by pushing for reforms that would tame the great concentrations of wealth and power that were corrupting government.

On the economic side, they invented antitrust laws and public utilities regulation, established an income tax, and fought for minimum wages. On the political side, they passed campaign finance regulations and amended the Constitution so the people would get to elect senators directly. They did these things because they knew that our republican form of government could not survive in an economically unequal society. As Theodore Roosevelt wrote, “There can be no real political democracy unless there is something approaching an economic democracy.”

For all its resilience and longevity, our Constitution doesn’t have structural checks built into it to prevent oligarchy or populist demagogues. It was written on the assumption that America would remain relatively equal economically. Even the father of the Constitution understood this. Toward the end of his life, Madison worried that the number of Americans who had only the “bare necessities of life” would one day increase. When it did, he concluded, the institutions and laws of the country would need to be adapted, and that task would require “all the wisdom of the wisest patriots.”

With economic inequality rising and the middle class collapsing, the deep question we must ask today is whether our generation has wise patriots who, like the progressives a century ago, will adapt the institutions and laws of our country — and save our republic.

Ganesh Sitaraman, a professor at Vanderbilt Law School, is the author of “The Crisis of the Middle-Class Constitution: Why Economic Inequality Threatens Our Republic.”

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G–gle Culture

DO NO EVIL

 

These excerpts are from a recent online interview by Stefan Molyneux of the fired Google employee James Damore explaining himself:

Generally, I just really like understanding things,” he said about his reasons for compiling his argument. “And recently, through interactions with people, I have noticed how different political ideologies divide us in many ways. I wanted to understand what was behind all that.”

“I read a lot into Jonathan Haidt’s work, a lot about what exactly is the philosophy behind all of these things. And that led me to the beginning of the document,” he explained. 

He described his crystallizing moment as: “I could see that all of us are really blind to the other side, so in these environments where everyone is in these echo chambers just talking to themselves, they are totally blind to so many things.We really need both sides to be talk to each other about these things and trying to understand each other.” 

He critiques both the left and right for not working together: “The easiest way of understanding the left is: It is very open, it is looking for changes. While the right is more closed, and wants more stability. There are definitely advantages to both of those. Sometimes there are things that need to change, but you actually need a vision for what you want. There is value in tradition, but not all traditions should be how they are.”

“We create biases for ourselves. This is particularly interesting, when we talk about how it relates to reality,” he said.

“Both sides are biased in a way, they have motivated reasoning to see what they want out of a lot of things,” he continued. 

This happens a lot in social science, where it is 95% leaning to the left. And so they only study what they want, and they only see the types of things that they want, and they really aren’t as critical of their own research as much as they should. The popular conception is that the right doesn’t understand science at all, that the right is anti-science. It is true that they often deny evolution and climate science, climate change, but the left also has its own things that it denies. Biological differences between people — in this case, sex differences,” he explained. 

He described the experience of diversity training at Google, which inspired him to write: “I heard things I definitely disagreed with in some of the programs. I had some discussions with people there, but there was a lot of just shaming. ‘No you can’t say that, that’s sexist, you can’t do this.’ There is so much hypocrisy in a lot things they are saying. I decided to just create the document just to clarify my thoughts.

I have often recommended Jon Haidt’s research presented in his book, The Righteous Mind. It’s worth a read because much of what is happening in social and political discourse these days reflects a psychological pathology that should be completely unnecessary. But getting out of our own way in politics is a difficult challenge.

I find nothing particularly mendacious about Mr. Damore’s document or his intentions to clarify what is basically an empirical puzzle concerning gender differences. Of course, this was all blown way out of proportion because it challenges some unscientific political agenda.

As a scientist, I assume that all empirical phenomena should be open to skepticism and challenges. I’m not sure how we progress intellectually any other way. The attack on Mr. Damore is an attack on science and for me can only reveal an indefensible political agenda. This is sad, if not dangerous, to say the least.

My own approach in this blog has been to suggest analytical frameworks to help understand how human behavior aggregates up into social behavior that defines our civilization; past, present and future (see Common Cent$). The universe is constantly changing, and survival depends on successful adaptation. Unsuccessful adaptation leads to extinction. Thus, the problem for all species is how to successfully adapt.

It seems to me our knowledge-base in the biological and social sciences, and in the arts and humanities can help us humans out here and I can’t understand why anyone who wants to survive would ignore or discount anything we can learn from that wealth of knowledge. Yet, some would choose to ignore anything that might challenge their world-view, even when they know it is false. G–gle seems to have succumbed to that pressure. That’s a shame, but not a path any of us have to accept.

What’s G–gle’s motto again?

 

 

 

 

Culture Wars or Something Else?

Well, not really. See comments below. From London’s The Economist:

Bagehot

The culture wars arrive in Britain

The election reveals astonishing changes in the political landscape

Jun 9th 2017

BREXIT was supposed to let Britain be Britain. Disentangled from the European Union, its island race would rediscover its native genius and embrace a unique mixture of nationalism and globalism. In fact this election suggests that something different is happening: divided and stunned by Brexit, Britain is turning into America.

Over the past 30 years American politics has been transformed from the politics of class into the politics of values. [No. Not really, that’s the media and party narrative.] In the 1970s the Republicans were broadly the party of the rich and rising and the Democrats were the party of blue-collar workers. Thereafter, values edged out class. Ronald Reagan brought blue-collar Democrats into the Republican Party by emphasising traditional values. George H.W. Bush used the “three Gs”—God, guns and gays—to strengthen his hold on blue-collar voters. Under George W. Bush America descended into a full-scale culture war: the Republicans put together a coalition of Evangelicals, working-class conservatives and business people and the Democrats responded with a coalition of knowledge workers, ethnic minorities and social liberals. [Blogger’s Note: No, the Democrats put together their Great Society rainbow coalition after the 1968 Convention in Chicago and in 1972 chose George McGovern as their candidate. Nixon responded with his Southern strategy.]

The cultural division has fed into a generational division: younger voters, particularly unmarried women, have gravitated to the Democrats. It has also fed into a regional division. The Republican Party thrived in the provinces (the suburbs, exurbs and rural America) while the Democratic Party thrived in the cities. There was also a growing division between the Democratic coasts and the Republican heartland and between the Republican South and the more Democratic north-east.

This election suggests that Britain is moving rapidly in the same direction. Look at the electoral map through the prism of class and the picture looks confused. The Tory party has held onto its wealthy heartlands in the rural shires. It has lost other rich areas in the cities, such as Battersea in London. It has also increased its vote share in some working-class areas, and taken some traditional Labour seats such as Derbyshire North-East and Stoke-on-Trent South. The Labour Party has made striking advances in some wealthy places: London and several other cities, particularly university towns. It has had a more mixed performance in working-class areas.

Look at it through the prism of values and the election makes sense. The Tories have been the party of old-fashioned British values: patriotism, self-determination and suspicion of foreigners—especially when they are trying to tell them what to do. These values have united middle-class people in the shires with older working-class people in the post-industrial north. Labour, meanwhile, has been the party of cosmopolitan values: multiculturalism, compassion, dislike of Brexit. These values have united people who might otherwise have little in common: devout Muslims in Perry Barr, Birmingham; struggling students in Newcastle; millionaire human-rights lawyers in Islington; train drivers in Dagenham.

The value division is also a regional division. The Labour Party has thrived in big cities. Jeremy Corbyn’s Labour Party is above all the party of London: Mr Corbyn represents Islington North, Emily Thornberry, his shadow foreign secretary, represents the next-door seat. At the same time the Conservatives have retreated: Justine Greening, the education secretary, saw her majority in Putney slashed from 10,000 to 1,000 and Jane Ellison, the financial secretary to the treasury, lost her Battersea seat. But even as they retreated in the metropolis, the Conservatives have taken some unexpected seats in post-industrial Britain.

The rise of values politics is rife with paradoxes. The Tory party calculated that this new type of politics would favour the right—Theresa May deliberately stirred the pot by telling the 2016 Conservative Party conference that “If you believe you’re a citizen of the world, you’re a citizen of nowhere. You don’t understand what the very word ‘citizenship’ means”. Nicholas Timothy, her co-chief-of-staff and policy guru, believed that the Tories could win over working-class voters by talking about traditional values and patriotism. But the Party failed to recognise that talking about “citizens of nowhere” might do more to repel middle-class voters than to attract working-class ones. The Labour Party is led by two Marxists: Mr Corbyn and John McDonnell, his shadow chancellor, who believe in the materialist interpretation of history. Yet they now preside over a coalition of voters defined overwhelmingly by their shared values.

The value of nothing
The fact that this was a values election is underlined by one of the many oddities of the contest: the absence of any role for business. Business has traditionally been one of the Conservative Party’s most loyal constituencies. The Tory party touts itself as the party of business, boasting of its record of low taxes, job creation and light-touch regulation, and the business community responds by strongly backing it. Not this time. The Tories borrowed most of Ed Miliband’s “business-bashing” ideas from Labour’s 2015 manifesto, including putting caps on energy prices, workers on boards and a ceiling on executive pay. Mrs May’s stinging dismissal of “citizens of nowhere” was directed as much at the Davos crowd as anybody. Business remained more or less silent—partly, no doubt, because nobody likes being bashed by their former allies but, more importantly, because British business is profoundly worried about Brexit. Mrs May’s insistence that immigration can be reduced to the tens of thousands and that no deal is better than a bad deal threatens to drive a wedge between the Tory party and its most loyal constituency.

The politics of values can be exciting. Values stir up emotions in ways that technocratic issues never do. But it can also be dangerous. The example of American politics over the past few decades is depressing. The culture wars have divided the country into tribes that won’t speak to each other. It has made it much more difficult—and sometimes impossible—to address pressing issues such as the Budget. And it has led to a decline in the quality of political life: the Republican Party’s enthusiasm for using cultural issues to recruit downscale voters has led inexorably to Donald Trump, a president who thrives on dividing the country and indulging in cheap demagoguery. Britain is taking its first steps down a dangerous path. [Blogger’s Note: No, these trends are the inevitable result of identity politics practiced by both parties but at the heart of the Left/Liberal parties.There is no compromise at the end of the road of identity politics and that is the tragedy for democracy we are witnessing today.]

 ——————–
My comment:

First, the American “culture war” is a bit of a sideshow that started back in the 1960s, politically with the Great Society programs and the anti-war McGovernites redirecting the Democrat party of JFK. The thrust of this movement was to define the Democrats as a coalition of diverse identity groups: by race, ethnicity, gender, and sexual preference. Nixon’s targeting of the traditional South came after Johnson targeted urban minorities, promising that if they were going to vote, he wanted to be sure they voted Democrat despite the party’s “apartheid” history.

Second, what we see today is not really the inevitable extension of this “culture war,” but a bifurcation of democracy based on policy preferences associated with geography and household formation. This bifurcation is actually dividing us over the disparate effects of globalization, migration, and technology that is loosely associated with where one lives and how one fits into the digital information economy. Most obviously the division is between urban vs. rural/suburban communities and one can see this in the national voting patterns from 2000 onward.

Third, to perceive this accurately one must analyze voting at the county and congressional district level and compare it to demographic variables. What one finds is that 2/3s of the results can be explained by population density and household formation (married vs. not married). But classifying these differences as cultural often becomes a self-fulfilling prophecy and the urban media and political parties have promoted this divide-and-conquer narrative to gain eyeballs and win elections.

Finally, average citizens are starting to see through this charade and are voting against “politics as usual,” by registering their protests with the likes of Bernie Sanders, Donald Trump, Marine Le Pen, and James Corbyn. These candidates are not a cause, but a symptom of the deeper fissures mentioned above, which result from the malicious application of identity politics to a changing world. There is no compromise at the end of the road of identity politics and that is the tragedy for democracy we are witnessing today.

The Presumptuousness of Urban Blue America

I had to post this article because it is just too much on the money. There is an historical equilibrium between rural, suburban, and urban life-style preferences in this country – there is no long-term trend in either direction. Our politics mostly reflect that – not the red-blue, sub-cultural civil war nonsense propagated by most of the media.

But for me the truly amusing irony of the self-righteousness of urban blue liberalism is that it turns traditional Marxism on its head. Urban sophisticates who empathize with Bernie/Warren-style socialism now claim that the rural periphery is exploiting the good will of the urban core. “We create all the wealth! We attract all the educated elites! We work and subsidize the ignorant bumpkins!”

This is the exact opposite of how Marx and the neo-Marxists claimed that the capitalist core was exploiting the workers and consumers who lived on the periphery of the capitalist market economy. Today’s neo-Marxist liberal urban sophisticates now claim the opposite to justify their deserved political dominance. Certainly one can see that their presumptuousness is akin to blaming the European colonies for the burdens of their European colonists! Workers of the World, Unite! Well, they have and voted for Trump. Rich.
Now what?

Of course, Marx and the new unwitting anti-Marxists are both half right and half wrong. Periphery and core are co-dependent in a free market economy: imagine Silicon Valley without its Internet users across the 50 states. What is necessary is that the market be free, open, and competitive so that coercive power does NOT determine distributive outcomes. Because humans are power-hungry, that, admittedly, is a persistent challenge.

Outside the Bubble

The Arrogance of Blue America

If you want to see the worst impacts of blue policies, go to those red regions—like upstate New York or inland California—in states they control.

Joel Kotkin

04.29.17 10:00 PM ET

In the wake of the Trumpocalypse, many in the deepest blue cores have turned on those parts of America that supported the president’s election, developing oikophobia—an irrational fear of their fellow citizens.

The rage against red America is so strong that The New York Time’s predictably progressive Nick Kristoff says his calls to understand red voters were “my most unpopular idea.” The essential logic—as laid out in a particularly acerbic piece in The New Republic—is that Trump’s America is not only socially deplorable, but economically moronic as well. The kind-hearted blue staters have sent their industries to the abodes of the unwashed, and taken in their poor, only to see them end up “more bitter, white, and alt-right than ever.”

The red states, by electing Trump, seem to have lost any claim on usually wide-ranging progressive empathy. Frank Rich, theater critic turned pundit, turns up his nose at what he calls “hillbilly chic.” Another leftist author suggests that working-class support for Brexit and Trump means it is time “to dissolve” the “more than 150-year-old alliance between the industrial working class and what one might call the intellectual-cultural Left.”

The fondest hope among the blue bourgeoise lies with the demographic eclipse of their red-state foes. Some clearly hope that the less-educated “dying white America,“ already suffering shorter lifespans, in part due to alcoholism and opioid abuse, is destined to fade from the scene. Then the blue lords can take over a country with which they can identify without embarrassment.

Marie Antoinette Economics

In seeking to tame their political inferiors, the blue bourgeoisie are closer to the Marie Antoinette school of political economy than any traditional notion of progressivism. They might seek to give the unwashed red masses “cake” in the form of free health care and welfare, but they don’t offer more than a future status as serfs of the cognitive aristocracy. The blue bourgeoisie, notes urban analyst Aaron Renn, are primary beneficiaries of “the decoupling of success in America.” In blue America, he notes, the top tiers “no longer need the overall prosperity of the country to personally do well. They can become enriched as a small, albeit sizable, minority.”

Some on the left recognize the hypocrisy of progressives’ abandoning the toiling masses. “Blue state secession is no better an idea than Confederate secession was,” observes one progressive journalist. “The Confederates wanted to draw themselves into a cocoon so they could enslave and exploit people. The blue state secessionists want to draw themselves into a cocoon so they can ignore the exploited people of America.”

Ironically, many of the most exploited people reside in blue states and cities. Both segregation and impoverishment has worsened during the decades-long urban “comeback,” as even longtime urban enthusiast Richard Florida now notes. Chicago, with its soaring crime rates and middle class out-migration, amidst a wave of elite corporate relocations, epitomizes the increasingly unequal tenor of blue societies.

In contrast the most egalitarian places, like Utah, tend to be largely Trump-friendly. Among the 10 states (and D.C.) with the most income inequality, seven supported Clinton in 2016, while seven of the 10 most equal states supported Trump.

If you want to see worst impacts of blue policies, go to those red regions—like upstate New York—controlled by the blue bourgeoise. Backwaters like these tend to be treated at best as a recreational colony that otherwise can depopulate, deindustrialize, and in general fall apart. In California, much of the poorer interior is being left to rot by policies imposed by a Bay Area regime hostile to suburban development, industrial growth, and large scale agriculture. Policies that boost energy prices 50 percent above neighboring states are more deeply felt in regions that compete with Texas or Arizona and are also far more dependent on air conditioning than affluent, temperate San Francisco or Malibu. Six of the 10 highest unemployment rates among the country’s metropolitan areas are in the state’s interior.

Basic Errors in Geography

The blue bourgeoisie’s self-celebration rests on multiple misunderstandings of geography, demography, and economics. To be sure, the deep blue cites are vitally important but it’s increasingly red states, and regions, that provide critical opportunities for upward mobility for middle- and working-class families.

The dominant blue narrative rests on the idea that the 10 largest metropolitan economies represents over one-third of the national GDP. Yet this hardly proves the superiority of Manhattan-like density; the other nine largest metropolitan economies are, notes demographer Wendell Cox, slightly more suburban than the national major metropolitan area average, with 86 percent of their residents inhabiting suburban and exurban areas.

In some of our most dynamic urban regions, such as Phoenix, virtually no part of the region can be made to fit into a Manhattan-, Brooklyn-, or even San Francisco-style definition of urbanity. Since 2010 more than 80 percent of all new jobs in our 53 leading metropolitan regions have been in suburban locations. The San Jose area, the epicenter of the “new economy,” may be congested but it is not traditionally urban—most people there live in single-family houses, and barely 5 percent of commuters take transit. Want to find dense urbanity in San Jose? You’ll miss it if you drive for more than 10 minutes.

Urban Innovation

The argument made by the blue bourgeoisie is simple: Dense core cities, and what goes on there, is infinitely more important, and consequential, than the activities centered in the dumber suburbs and small towns. Yet even in the ultra-blue Bay Area, the suburban Valley’s tech and STEM worker population per capita is twice that of San Francisco. In southern California, suburban Orange County has over 30 percent more STEM workers per capita than far more urban Los Angeles.

And it’s not just California. Seattle’s suburban Bellevue and Redmond are home to substantial IT operations, including the large Microsoft headquarters facility. Much of Portland’s Silicon Forest is located in suburban Washington County. Indeed a recent Forbes study found that the fastest-growing areas for technology jobs outside the Bay Area are all cities without much of an urban core: Charlotte, Raleigh Durham, Dallas-Fort Worth, Phoenix, and Detroit. In contrast most traditionally urban cities such as New York and Chicago have middling tech scenes, with far fewer STEM and tech workers per capita than the national average.

The blue bourgeois tend to see the activities that take place largely in the red states—for example manufacturing and energy—as backward sectors. Yet manufacturers employ most of the nation’s scientists and engineers. Regions in Trump states associated with manufacturing as well as fossil fuels—Houston, Dallas-Fort Worth, Detroit, Salt Lake—enjoy among the heaviest concentrations of STEM workers and engineers in the country, far above New York, Chicago, or Los Angeles.

Besides supplying the bulk of the food, energy, and manufactured goods consumed in blue America, these industries are among the country’s most productive, and still offer better paying options for blue-collar workers. Unlike a monopoly like Microsoft or Google, which can mint money by commanding market share, these sectors face strong domestic and foreign competition. From 1997-2012, labor productivity growth in manufacturing—3.3 percent per year—was a third higher than productivity growth in the private economy overall.

For its part, the innovative American energy sector has essentially changed the balance of power globally, overcoming decades of dependence on such countries as Saudi Arabia, Russia, and Venezuela. Agriculture—almost all food, including in California, is grown in red-oriented areas—continues to outperform competitors around the world.

Exports? In 2015, the U.S. exported $2.23 trillion worth of goods and services combined. Of the total, only $716.4 billion, or about a third, consisted of services. In contrast, manufactured goods accounted for 50 percent of all exports. Intellectual property payments, like royalties to Silicon Valley tech companies and entrepreneurs, amounted to $126.5 billion—just 18 percent of service exports and less than 6 percent of total exports of goods and services combined, barely even with agriculture.

Migration and the American Future

The blue bourgeoisie love to say “everyone” is moving back to the city; a meme amplified by the concentration of media in fewer places and the related collapse of local journalism. Yet in reality, except for a brief period right after the 2008 housing crash, people have continued to move away from dense areas.

Indeed the most recent estimates suggest that last year was the best for suburban areas since the Great Recession. In 2012, the suburbs attracted barely 150,000 more people than core cities but in 2016 the suburban advantage was 556,000. Just 10 of the nation’s 53 largest metropolitan regions (including San Francisco, Boston, and Washington) saw their core counties gain more people than their suburbs and exurbs.

Overall, people are definitively not moving to the most preferred places for cosmopolitan scribblers. Last year, all 10 of the top gainers in domestic migration were Sun Belt cities. The list was topped by Austin, a blue dot in its core county, surrounded by a rapidly growing, largely red Texas sea, followed by Tampa-St. Petersburg, Orlando, and Jacksonville in Florida, Charlotte and Raleigh in North Carolina, Las Vegas, Phoenix, and San Antonio.

Overall, domestic migration trends affirm Trump-friendly locales. In 2016, states that supported Trump gained a net of 400,000 domestic migrants from states that supported Clinton. This includes a somewhat unnoticed resurgence of migration to smaller cities, areas often friendly to Trump and the GOP. Domestic migration has accelerated to cities between with populations between half a million and a million people, while it’s been negative among those with populations over a million. The biggest out-migration now takes place in Los Angeles, Chicago, and New York.

Of course, for the blue cognoscenti, there’s only one explanation for such moves: Those people are losers and idiots. This is part of the new blue snobbery: Bad people, including the poor, are moving out to benighted places like Texas but the talented are flocking in. Yet, like so many comfortable assertions, this one does not stand scrutiny. It’s the middle class, particularly in their childbearing years, who, according to IRS data, are moving out of states like California and into ones like Texas. Since 2000, the Golden State has seen a net outflow of $36 billion dollars from migrants.

Millennials are widely hailed as the generation that will never abandon the deep blue city, but as they reach their thirties, they appear to be following their parents to the suburbs and exurbs, smaller cities, and the Sun Belt. This assures us that the next generation of Americans are far more likely to be raised in Salt Lake City, Atlanta, the four large Texas metropolitan areas, or in suburbs, than in the bluest metropolitan areas like New York, Seattle, or San Francisco—where the number of school-age children trends well below the national average.

This shift is being driven in large part by unsustainable housing costs. In the Bay Area, techies are increasingly looking for jobs outside the tech hub and some companies are even offering cash bonuses to those willing to leave. A recent poll indicated that 46 percent of millennials in the San Francisco Bay Area want to leave. The numbers of the “best and brightest” have been growing mostly in lower-cost regions such as Austin, Orlando, Houston, Nashville, and Charlotte.

Quality of Life: The Eye of the Beholder

Ultimately, in life as well as politics, people make choices of where to live based on economic realities. This may not apply entirely to the blue bourgeoisie, living at the top of the economic food chain or by dint of being the spawn of the wealthy. But for most Americans aspiring to a decent standard of living—most critically, the acquisition of decent living space—the expensive blue city simply is not practicable.

Indeed, when the cost of living is taken into consideration, most blue areas, except for San Jose/Silicon Valley, where high salaries track the prohibitive cost of living, provide a lower standard of living. People in Houston, Dallas, Austin, Atlanta, and Detroit actually made more on their paychecks than those in New York, San Francisco, or Boston. Deep-blue Los Angeles ranked near the bottom among the largest metropolitan areas.

These mundanities suggest that the battlegrounds for the future will not be of the blue bourgeoisie’s choosing but in suburbs, particularly around the booming periphery of major cities in red states. Many are politically contestable, often the last big “purple” areas in an increasingly polarized country. In few of these kinds of areas do you see 80 to 90 percent progressive or conservative electorates; many split their votes and a respectable number went for Trump and the GOP. If the blue bourgeoisie want to wage war in these places, they need to not attack the suburban lifestyles clearly preferred by the clear majority.

Blue America can certainly win the day if this administration continues to falter, proving all the relentless aspersions of its omnipresent critics. But even if Trump fails to bring home the bacon to his supporters, the progressives cannot succeed until they recognize that most Americans cannot, and often do not want to, live the blue bourgeoisie’s preferred lifestyle.

It’s time for progressives to leave their bastions and bubbles, and understand the country that they are determined to rule.

Ten Things We Now Know About American Politics

Ahem. We seem to have been graced by the Chinese proverb, “May you live in interesting times.” The surprising upset by Donald Trump over Hillary Clinton has left many people flabbergasted. Since I live in Los Angeles, it seems a lot of those people live around me.

But there were many hints of this possible outcome going back months if not almost a year. The results seem to have confirmed some new “realities” to replace former “speculations.”

  1. The polling surveys proved to be less than accurate-to say the least-but this had been going on since the early primaries. Remember, Trump was never supposed to get past the first couple of primaries. The Hollywood adage that “Nobody knows anything,” held true to the end.
  2. The Republican party has been split between its party regulars or leaders and their voters. The voters won handily, now the party will need to respond with some supplication. Trump is a symptom, not a cause. Despite being counted out, the Republicans managed to retain the Senate and the House, awarding President-elect Trump a golden opportunity to enact his agenda, whatever that is.
  3. The Democratic party establishment apparently sold their voters a pig in a poke. It was not hard to see a year ago that Hillary Clinton was probably the weakest candidate the party could have selected given the political climate. She represented the status quo, promising Obama’s third-term, after two midterm elections that repudiated his policy agenda. Moreover, she came in carrying a 25 year load of baggage that caused voters to question her authenticity and candor, to put it politely. Her tenure as Senator and SOS did little to promote her candidacy. It seems that the fact that she was the wife of Bill was her most valuable asset, but even that was tarnished as voters were reminded of Bill’s former scandals and tawdry reputation. The voters had little choice and Sanders appeal should have been the first clue that things were going very wrong, again, for Clinton. The flip of the Rust Belt is another warning signal that the party has gone astray.
  4. The mainstream media pundits once again have egg on their faces. The politicization of coverage backfired and the more they pushed, the worse it got for their favored biases. They failed miserably at their efforts to shape political opinion instead of informing objectively. Now some of the more prominent talking heads should probably seek a new profession since the public has turned them off. But no, stupid will likely double down, until they discover nobody who matters is really listening.
  5. The Bush-Clinton-Bush-Obama/Clinton era is over, as each administration’s overreaching came back to bite them with a vengeance. Obama and his policy legacy is a casualty of this collapse of a 28 year party era. As painful as it might seem to some, Obama’s presidency helped to bring about the collapse of his party and the rise of an outsider like Trump. He now owns it, just like Bush wears the Iraq albatross.
  6. We have divided ourselves into a 50-50 nation, polarized by population density: urban vs. rural and suburban.* This means the popular vote will be less of an indication of true, broad support and may often diverge from the Electoral College vote. Thus, the EC is crucial to securing a clear electoral and governing mandate. It appears Clinton eked out a popular vote victory, but more importantly, Trump won the decisive margin in the EC. The swing state problem is that we don’t have enough swing voters at the center of our divide.
  7. We should probably be thankful that media and political transparency is being forced on us by technology. It is too ironic that we are getting our political insights from hackers and Wikileaks.
  8. “Politics as usual” was a big loser. The people took control of this election, for better or worse, so elites had better pay attention while the rest of us figure out how to move people power toward the broader good, rather than the narrow. When failure occurs, we need to see it clearly and own it. I’m wondering how many can do that after this election. Too many will probably respond angrily, but that’s self-defeating.
  9. The wise among us will try to figure out why our popular narrative for understanding American politics has been so wrong and what needs to change. The demonization of voters seems to be highly counterproductive in an open media environment.
  10. Lastly, political correctness and identity politics have suffered a severe backlash. Perhaps it’s time to put aside these punitive speech codes and divisive political strategies. We can only hope.

BTW, I voted for Gary Johnson, just for the 2%. He outperformed and got 3%!

*This urban-rural split is a historical divide that has defined much of our nation’s politics for the past 200 years.  We’ve managed it thus far and we can continue to do so if we can see it clearly. It’s NOT about biological identity – it’s about class interests, lifestyle choices, and political priorities. We can find compromise on all these issues.