Robert Reich: "Xenophobia and isolationism are spreading in America; legitimize us-vs.-them thinking

[pampango]

Xenophobia and isolationism are spreading in America. When Democrats jump onto China bashing, they miss the real causes of the recession, and worse, legitimize us-vs.-them thinking.

http://www.csmonitor.com/Business/Robert-Reich-s-Blog/2010/1011/Xenophobia-and-the-economy

Deep economic crises are fodder for demagogues who channel economic fear into a politics of resentment against “them.” In the 1930s it was foreign traders (mainly Europeans), immigrants, and Jews. Now it’s foreign traders (mainly the Chinese), immigrants, and Muslims. How do you explain the surging animosity toward foreign trade, particularly toward China? Candidates for midterm elections are running tens of millions of dollars of ads attacking their opponents for being too sympathetic to China.

Republicans have a long history of turning fears into resentments that animate voters. (Remember Willy Horton? Senator Joe McCarthy?) For years, Fox News, yell radio, and other outlets of the Republican right have built followings on hatefulness. Yet Democrats are entering the same terrain when they blame China. If Democrats (or Republicans, for that matter) want to blame something, blame America’s record level of inequality – an almost unprecedented concentration of income and wealth at the top, and a smaller proportion for the vast middle.

The evidence is all around us. It’s no mere coincidence that 1928 and 2007 marked historical high-water points for shares of national income going to the top 1 percent. Today’s median wage is now 5 percent lower than it was at the start of the decade, taking inflation into account, while top earners are doing better than ever. The core assets of most Americans are their homes, whose values are now 20 to 40 percent below what they were three years ago, while the key assets of America’s wealthy are shares of stocks and bonds, whose values have declined far less. The official rate of unemployment is 4.4 percent for college graduates but 10 percent for those with only high school degrees and almost 15 percent for high school dropouts.

Are the Democrats so dependent on the campaign contributions from the wealthy they dare not speak of this? Or worried about being labeled “class warriors?” China bashing doesn’t educate the public about what’s truly at stake and what must be done in the years ahead. Worse: It reinforces the politics of resentment, and further legitimizes other forms of isolationism and xenophobia.

[leftstreet]

1. K&R

[EFerrari]

2. I just heard a conversation about this today

and how it seems to be not a global movement but it is all over Europe and the US.

It's an epidemic. :(

[RKP5637]

3. The next step will be greater warfare over limited global resources. n/t

[EFerrari]

5. And it will be easier to sell to the people because they are being trained

to think badly. And I don't mean that in some kind of abstract way, either.

[RKP5637]

6. Yep, the foundation of a trained irrational hatred, a visceral reaction to anything a bit

different. The RW is working to create something out of the past that was very very unpleasant. And they have a bunch of loosely wrapped followers IMO.

[EFerrari]

8. They've been developing this intellectual disaster for what,

more than thirty years now.

[RKP5637]

9. Yep, I remember the feeling when it started in the 80's, it was IMO subtle at first, but then it

grew and grew. To me, AM hate radio certainly propelled it forwarded along with hate religion, the key R figures and the whole lineage... And this endless blasting by Fox.

These fools are taking this country into some very unpleasant times reminiscent of what I thought we left after WWII. And what I thought was settled after the Great Depression. I've never seen such ignorance and hatred in this country, although the 60's certainly had its share of violence, hatred and ignorance. I guess these types never go away. They just love hatred and ignorance.

I also think the sociopath count is up in this country.

[DJ13]

4. blame America’s record level of inequality –

Which can be argued is the result of free trade, feeding into the isolationist feelings of so many people.

Theres no easy answer, but we need to understand the trade we have with other countries has had a disastrous effect on the ability of average Americans to improve their incomes.

[RKP5637]

7. Yep, for sale to the highest bidder with the lowest wage earner. A very very

dangerous recipe. We are selling out this country and its future for several generations at least. NAFTA/CAFTA IMO were poorly planed and implemented.

[FreakinDJ]

10. Nope - they were Brilliantly planed to benefit the Wealthy only

[RKP5637]

11. That, is an excellent point!!! Thanks!!! n/t

[Donnachaidh]

12. thank you -- I've been saying that all along

And we can also thank those in OUR party for helping with the forging of the chains of serfdom the middle class is being pushed into. When I see people acting all stupid over Bill Clinton -- I'm reminded he aided this with a smile and a wink. Special place in hell for all the traitors. :grr:

[pampango]

13. How do you figure that income inequality is caused by "free trade", when the countries with the most

equitable income distributions have more "free trade" than the US has?

What is true is that any country with a regressive tax system, weak/no unions, and an ineffective social safety net will have a very bad distribution of income.

China and Sweden both have high levels of trade. (Sweden's level of "free trade" is much higher than China's as a part of GNP.) China has a terrible distribution of income (worse than the US), while Sweden is in the top three in terms of most equitable distribution of income in the world, because they have high/progressive taxes that fund a strong safety net and strong unions.

Russia trades relatively little (doesn't belong to the WTO), but has a terrible distribution of income (similar to ours), while Cuba trades little and has an income distribution that resembles that of many European countries.

"(W)e need to understand the trade we have with other countries has had a disastrous effect on the ability of average Americans to improve their incomes."

The only link one can see between trade and income inequality is that the countries that trade the most have the most equitable distributions of income. The high levels of trade in these countries many not cause favorable income distributions, but it certainly doesn't prove the reverse - that trade causes inequality. The link that is obvious is that countries with low/regressive taxation, weak social safety nets and no/weak unions all have very inequitable distributions of income.

Reagan slashed taxes on the rich (leading to a low/regressive tax system), slashed the safety net, and weakened American unions; all the ingredients that are proven to produce inequality around the world. He was much more the cause of our current inequitable distribution of income, even though he had nothing to do with NAFTA (or any of our other FTA's) or China entering the WTO.

All of the prosperous countries (European countries, Canada, Australia, Japan, South Korea) have more "free trade" than the US, but have more equitable distributions of income due to how they tax themselves and support their own people in terms of safety nets, education and unionization. Why has trade with other countries had such a disastrous effect on Americans, while every prosperous progressive country in the world trades more than we do?

[southmost]

16. +1

[jmondine]

14. It's not spreading. It's just coming to the surface.

In a way, this period is a grueling, painful healing process. It's hard to confront and solve the underlying bigotry in our society when you can't even see it.

[The2ndWheel]

15. Isn't top/bottom an us vs. them scenario?

As long as diversity exists, it'll be us vs them in some way.