Monday, February 26, 2007
Fear-monger, thy name is neopopulist.
Several 2008 Democratic candidates, campaigning vigorously at this absurdly early hour, have made a point of late of vilifying the growing wealth and earnings gap in this country. They shake their fists in conversations with Iowa farmers, heads shaking with affected empathy, lamenting the supposed decline of the American middle class and excoriating the Exxon executives whose high pay packages are allegedly responsible for the farmers’ woes.
Senator John Edwards, taking a break from basking in the glow of his own healthy bank account, is chief among these offenders. He of the coruscating smile and genteel accent travels the back roads of early primary states, telling middle class workers that the elites are to blame for their problems. The rich are getting richer, the storyline goes, while most of America gets left behind.
The candidates sound the alarms of protectionism and regulation, peal the bells of alarmism and fear, in an effort to convince the rural voter that a renewed class struggle is the only option.
But the myths of neopopulism are largely limited in scope, and are mostly designed to ignite voters’ passions in primary season. The median income of American households headed by people in their key working years is over $60,000, and rises to $72,000 for married couples in such households. Middle class Americans are living incredibly wealthy, healthy, and safe lives by the standards of history and current global society. Television and telephone penetration are near 100 percent, and household assets are rising faster than debts. But somehow, we are expected to believe that a cut in a CEO’s paycheck will lead to great windfalls for America’s middle class.
Neopopulism is not just poor policy — it is also bad electoral strategy. Candidates can spend months painting a picture of an egalitarian lotusland, a place where wealth inequality is a distant memory, but voters will always take a self-interested view of the future. We are consistently reluctant to impose penalties on the rich because we like to think that somehow, someday, we will join those ranks, and candidates must adjust to this solipsistic reality.
America has wealth equality problems. The exponential growth rate of executive pay compared to average worker pay is worrisome, and should be addressed in the future. But throwing up protectionist trade barriers and imposing windfall taxes and income regulation is not the answer. Voters should remember that the real solutions are found in broader education, modern job training, and expanded opportunities for all.
— McKay Stangler for the editorial board.
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