We, the Plutocrats vs. We, the People - Saving the Soul of Democracy
Sixty-six years ago this summer, on my 16th birthday, I went to work for the daily newspaper in the small East Texas town of Marshall where I grew up. It was a good place to be a cub reporter -- small enough to navigate but big enough to keep me busy and learning something every day. I soon had a stroke of luck. Some of the paper's old hands were on vacation or out sick and I was assigned to help cover what came to be known across the country as "the housewives' rebellion."
Fifteen women in my hometown decided not to pay the Social Security withholding tax for their domestic workers. Those housewives were white, their housekeepers black. Almost half of all employed black women in the country then were in domestic service. Because they tended to earn lower wages, accumulate less savings and be stuck in those jobs all their lives, social security was their only insurance against poverty in old age. Yet their plight did not move their employers.
The housewives argued that Social Security was unconstitutional and imposing it was taxation without representation. They even equated it with slavery. They also claimed that “requiring us to collect [the tax] is no different from requiring us to collect the garbage.” So they hired a high-powered lawyer — a notorious former congressman from Texas who had once chaired the House Un-American Activities Committee — and took their case to court. They lost, and eventually wound up holding their noses and paying the tax, but not before their rebellion had become national news.
The stories I helped report for the local paper were picked up and carried across the country by the Associated Press. One day, the managing editor called me over and pointed to the AP Teletype machine beside his desk. Moving across the wire was a notice citing our paper and its reporters for our coverage of the housewives’ rebellion.
I was hooked, and in one way or another I’ve continued to engage the issues of money and power, equality and democracy over a lifetime spent at the intersection between politics and journalism. It took me awhile to put the housewives’ rebellion into perspective. Race played a role, of course. Marshall was a segregated, antebellum town of 20,000, half of whom were white, the other half black. White ruled, but more than race was at work. Those 15 housewives were respectable townsfolk, good neighbors, regulars at church (some of them at my church). Their children were my friends; many of them were active in community affairs; and their husbands were pillars of the town’s business and professional class.
So what brought on that spasm of rebellion? They simply couldn’t see beyond their own prerogatives. Fiercely loyal to their families, their clubs, their charities and their congregations — fiercely loyal, that is, to their own kind — they narrowly defined membership in democracy to include only people like themselves. They expected to be comfortable and secure in their old age, but the women who washed and ironed their laundry, wiped their children’s bottoms, made their husbands’ beds and cooked their family’s meals would also grow old and frail, sick and decrepit, lose their husbands and face the ravages of time alone, with nothing to show from their years of labor but the crease in their brow and the knots on their knuckles.
In one way or another, this is the oldest story in our country’s history: the struggle to determine whether “we, the people” is a metaphysical reality — one nation, indivisible — or merely a charade masquerading as piety and manipulated by the powerful and privileged to sustain their own way of life at the expense of others.
"I Contain Multitudes"
There is a vast difference between a society whose arrangements roughly serve all its citizens and one whose institutions have been converted into a stupendous fraud, a democracy in name only. I have no doubt about what the United States of America was meant to be. It’s spelled out right there in the 52 most revolutionary words in our founding documents, the preamble to our Constitution, proclaiming the sovereignty of the people as the moral base of government:
No, I'm not a romantic about our history and I harbor no idealized notions of politics and democracy.
Nor do I romanticize “the people.” When I began reporting on the state legislature while a student at the University of Texas, a wily old state senator offered to acquaint me with how the place worked. We stood at the back of the Senate floor as he pointed to his colleagues spread out around the chamber — playing cards, napping, nipping, winking at pretty young visitors in the gallery — and he said to me, “If you think these guys are bad, you should see the people who sent them there.”
And yet, despite the flaws and contradictions of human nature — or perhaps because of them — something took hold here. The American people forged a civilization: that thin veneer of civility stretched across the passions of the human heart. Because it can snap at any moment, or slowly weaken from abuse and neglect until it fades away, civilization requires a commitment to the notion (contrary to what those Marshall housewives believed) that we are all in this together.
American democracy grew a soul, as it were — given voice by one of our greatest poets, Walt Whitman, with his all-inclusive embrace in Song of Myself:
President Franklin Delano Roosevelt understood the soul of democracy too. He expressed it politically, although his words often ring like poetry. Paradoxically, to this scion of the American aristocracy, the soul of democracy meant political equality. “Inside the polling booth,” he said, “every American man and woman stands as the equal of every other American man and woman. There they have no superiors. There they have no masters save their own minds and consciences.”
God knows it took us a long time to get there. Every claim of political equality in our history has been met by fierce resistance from those who relished for themselves what they would deny others. After President Abraham Lincoln signed the Emancipation Proclamation it took a century before Lyndon Johnson signed the Voting Rights Act of 1965 — a hundred years of Jim Crow law and Jim Crow lynchings, of forced labor and coerced segregation, of beatings and bombings, of public humiliation and degradation, of courageous but costly protests and demonstrations. Think of it: another hundred years before the freedom won on the bloody battlefields of the Civil War was finally secured in the law of the land.
And here’s something else to think about: Only one of the women present at the first women’s rights convention in Seneca Falls in 1848 — only one, Charlotte Woodward — lived long enough to see women actually get to vote.
"We Pick That Rabbit Out of the Hat"
Even though everyone took a hit during the recession that followed, the top 10 percent now hold more than three-quarters of the country’s total family wealth.
I know, I know: statistics have a way of causing eyes to glaze over, but these statistics highlight an ugly truth about America: inequality matters. It slows economic growth, undermines health, erodes social cohesion and solidarity, and starves education. In their study The Spirit Level: Why Greater Equality Makes Societies Stronger, epidemiologists Richard Wilkinson and Kate Pickett found that the most consistent predictor of mental illness, infant mortality, low educational achievement, teenage births, homicides and incarceration was economic inequality.
So bear with me as I keep the statistics flowing. The Pew Research Center recently released a new study indicating that, between 2000 and 2014, the middle class shrank in virtually all parts of the country. Nine out of 10 metropolitan areas showed a decline in middle-class neighborhoods. And remember, we aren’t even talking about over 45 million people who are living in poverty. Meanwhile, between 2009 and 2013, that top 1 percent captured 85 percent percent of all income growth. Even after the economy improved in 2015, they still took in more than half of the income growth and by 2013 held nearly half of all the stock and mutual fund assets Americans owned.
Now, concentrations of wealth would be far less of an issue if the rest of society were benefitting proportionally. But that isn’t the case.
Once upon a time, according to Isabel Sawhill and Sara McClanahan in their 2006 reportOpportunity in America, the American ideal was one in which all children had “a roughly equal chance of success regardless of the economic status of the family into which they were born.”
Almost 10 years ago, economist Jeffrey Madrick wrote that, as recently as the 1980s, economists thought that “in the land of Horatio Alger only 20 percent of one’s future income was determined by one’s father’s income.” He then cited research showing that, by 2007, “60 percent of a son’s income [was] determined by the level of income of the father. For women, it [was] roughly the same.” It may be even higher today, but clearly a child’s chance of success in life is greatly improved if he’s born on third base and his father has been tipping the umpire.
In May, President Obama and I both spoke at the Rutgers University commencement ceremony. He was at his inspirational best as 50,000 people leaned into every word. He lifted the hearts of those young men and women heading out into our troubled world, but I cringed when he said, “Contrary to what we hear sometimes from both the left as well as the right, the system isn’t as rigged as you think…”
Wrong, Mr. President, just plain wrong. The people are way ahead of you on this. In a recent poll, 71 percent of Americans across lines of ethnicity, class, age and gender said they believe the US economy is rigged. People reported that they are working harder for financial security. One-quarter of the respondents had not taken a vacation in more than five years. Seventy-one percent said that they are afraid of unexpected medical bills; 53 percent feared not being able to make a mortgage payment; and, among renters, 60 percent worried that they might not make the monthly rent.
Millions of Americans, in other words, are living on the edge. Yet the country has not confronted the question of how we will continue to prosper without a workforce that can pay for its goods and services.
You didn’t have to read Das Kapital to see this coming or to realize that the United States was being transformed into one of the harshest, most unforgiving societies among the industrial democracies. You could instead have read The Economist, arguably the most influential business-friendly magazine in the English-speaking world. I keep in my files a warning published in that magazine a dozen years ago, on the eve of George W. Bush’s second term. The editors concluded back then that, with income inequality in the US reaching levels not seen since the first Gilded Age and social mobility diminishing, “the United States risks calcifying into a European-style class-based society.”
And mind you, that was before the financial meltdown of 2007—08, before the bailout of Wall Street, before the recession that only widened the gap between the super-rich and everyone else. Ever since then, the great sucking sound we’ve been hearing is wealth heading upward. The United States now has a level of income inequality unprecedented in our history and so dramatic it’s almost impossible to wrap one’s mind around.
Contrary to what the president said at Rutgers, this is not the way the world works; it’s the way the world is made to work by those with the money and power. The movers and shakers — the big winners — keep repeating the mantra that this inequality was inevitable, the result of the globalization of finance and advances in technology in an increasingly complex world. Those are part of the story, but only part. As G.K. Chesterton wrote a century ago, “In every serious doctrine of the destiny of men, there is some trace of the doctrine of the equality of men. But the capitalist really depends on some religion of inequality.”
Exactly. In our case, a religion of invention, not revelation, politically engineered over the last 40 years. Yes, politically engineered. On this development, you can’t do better than readWinner Take All Politics: How Washington Made the Rich Richer and Turned Its Back on the Middle Class by Jacob Hacker and Paul Pierson, the Sherlock Holmes and Dr. Watson of political science.
They were mystified by what had happened to the post-World War II notion of “shared prosperity”; puzzled by the ways in which ever more wealth has gone to the rich and super-rich; vexed that hedge-fund managers pull in billions of dollars, yet pay taxes at lower rates than their secretaries; curious about why politicians kept slashing taxes on the very rich and handing huge tax breaks and subsidies to corporations that are downsizing their work forces; troubled that the heart of the American Dream — upward mobility — seemed to have stopped beating; and dumbfounded that all of this could happen in a democracy whose politicians were supposed to serve the greatest good for the greatest number. So Hacker and Pierson set out to find out “how our economy stopped working to provide prosperity and security for the broad middle class.”
To help cover up this heist of the economy, an appealing intellectual gloss was needed. So public intellectuals were recruited and subsidized to turn “globalization,” “neo-liberalism” and “the Washington Consensus” into a theological belief system. The “dismal science of economics” became a miracle of faith. Wall Street glistened as the new Promised Land, while few noticed that those angels dancing on the head of a pin were really witchdoctors with MBAs brewing voodoo magic. The greed of the Gordon Gekkos — once considered a vice — was transformed into a virtue. One of the high priests of this faith, Lloyd Blankfein, CEO of Goldman Sachs, looking in wonder on all that his company had wrought, pronounced it“God’s work.”
A prominent neoconservative religious philosopher even articulated a “theology of the corporation.” I kid you not. And its devotees lifted their voices in hymns of praise to wealth creation as participation in the Kingdom of Heaven here on Earth. Self-interest became the Gospel of the Gilded Age.
No one today articulates this winner-take-all philosophy more candidly than Ray Dalio. Think of him as the King Midas of hedge funds, with a personal worth estimated at almost $16 billion and a company, Bridgewater Associates, reportedly worth as much as $154 billion.
And by the way, there’s a footnote to the Dalio story. Early this year, the founder of the world’s largest hedge fund, and by many accounts the richest man in Connecticut, where it is headquartered, threatened to take his firm elsewhere if he didn’t get concessions from the state. You might have thought that the governor, a Democrat, would have thrown him out of his office for the implicit threat involved. But no, he buckled and Dalio got the $22 million in aid — a $5 million grant and a $17 million loan — that he was demanding to expand his operations. It’s a loan that may be forgiven if he keeps jobs in Connecticut and creates new ones. No doubt he left the governor’s office grinning like a hyena, his shoes tracking wildebeest blood across the carpet.
Our founders warned against the power of privileged factions to capture the machinery of democracies. James Madison, who studied history through a tragic lens, saw that the life cycle of previous republics had degenerated into anarchy, monarchy, or oligarchy. Like many of his colleagues, he was well aware that the republic they were creating could go the same way. Distrusting, even detesting concentrated private power, the founders attempted to erect safeguards to prevent private interests from subverting the moral and political compact that begins, "We, the people." For a while, they succeeded.
When the brilliant young French aristocrat Alexis de Tocqueville toured America in the 1830s, he was excited by the democratic fervor he witnessed. Perhaps that excitement caused him to exaggerate the equality he celebrated. Close readers of de Tocqueville will notice, however, that he did warn of the staying power of the aristocracy, even in this new country. He feared what he called, in the second volume of his masterwork, Democracy in America, an “aristocracy created by business.” He described it as already among “the harshest that ever existed in the world” and suggested that, “if ever a permanent inequality of conditions and aristocracy again penetrate the world, it may be predicted that this is the gate by which they will enter.”
And so it did. Half a century later, the Gilded Age arrived with a new aristocratic hierarchy of industrialists, robber barons and Wall Street tycoons in the vanguard. They had their own apologist in the person of William Graham Sumner, an Episcopal minister turned professor of political economy at Yale University. He famously explained that “competition… is a law of nature” and that nature “grants her rewards to the fittest, therefore, without regard to other considerations of any kind.”
From Sumner’s essays to the ravenous excesses of Wall Street in the 1920s to the ravings of Rush Limbaugh, Glenn Beck and Fox News, to the business press’s wide-eyed awe of hyena-like CEOs; from the Republican war on government to the Democratic Party’s shameless obeisance to big corporations and contributors, this “law of nature” has served to legitimate the yawning inequality of income and wealth, even as it has protected networks of privilege and monopolies in major industries like the media, the tech sector and the airlines.
A plethora of studies conclude that America’s political system has already been transformed from a democracy into an oligarchy (the rule of a wealthy elite). Martin Gilens and Benjamin Page, for instance,studied data from 1,800 different policy initiatives launched between 1981 and 2002. They found that “economic elites and organized groups representing business interests have substantial independent impacts on US government policy while mass-based interest groups and average citizens have little or no independent influence.” Whether Republican or Democratic, they concluded, the government more often follows the preferences of major lobbying or business groups than it does those of ordinary citizens.
We can only be amazed that a privileged faction in a fervent culture of politically protected greed brought us to the brink of a second Great Depression, then blamed government and a “dependent” 47 percent of the population for our problems, and ended up richer and more powerful than ever.
The Truth of Your Life
Which brings us back to those Marshall housewives — to all those who simply can’t see beyond their own prerogatives and so narrowly define membership in democracy to include only people like themselves.
How would I help them recoup their sanity, come home to democracy and help build the sort of moral compact embodied in the preamble to the Constitution, that declaration of America’s intent and identity?
First, I’d do my best to remind them that societies can die of too much inequality.
Second, I’d give them copies of anthropologist Jared Diamond’s book Collapse: How Societies Choose to Fail or Succeed to remind them that we are not immune. Diamond won the Pulitzer Prize for describing how the damage humans have inflicted on their environment has historically led to the decline of civilizations. In the process, he vividly depicts how elites repeatedly isolate and delude themselves until it’s too late. How, extracting wealth from commoners, they remain well fed while everyone else is slowly starving until, in the end, even they (or their offspring) become casualties of their own privilege. Any society, it turns out, contains a built-in blueprint for failure if elites insulate themselves endlessly from the consequences of their decisions.
Third, I’d discuss the real meaning of “sacrifice and bliss” with them. That was the title of the fourth episode of my PBS series Joseph Campbell and the Power of Myth.In that episode, Campbell and I discussed the influence on him of the German philosopher Arthur Schopenhauer, who believed that the will to live is the fundamental reality of human nature. So he puzzled about why some people override it and give up their lives for others.
“Can this happen?” Campbell asked. “That what we normally think of as the first law of nature, namely self-preservation, is suddenly dissolved. What creates that breakthrough when we put another’s well-being ahead of our own?” He then told me of an incident that took place near his home in Hawaii, up in the heights where the trade winds from the north come rushing through a great ridge of mountains. People go there to experience the force of nature, to let their hair be blown in the winds — and sometimes to commit suicide.
One day, two policemen were driving up that road when, just beyond the railing, they saw a young man about to jump. One of the policemen bolted from the car and grabbed the fellow just as he was stepping off the ledge. His momentum threatened to carry both of them over the cliff, but the policeman refused to let go. Somehow he held on long enough for his partner to arrive and pull the two of them to safety. When a newspaper reporter asked, “Why didn’t you let go? You would have been killed,” he answered: “I couldn’t… I couldn’t let go. If I had, I couldn’t have lived another day of my life.”
Campbell then added: “Do you realize what had suddenly happened to that policeman? He had given himself over to death to save a stranger. Everything else in his life dropped off. His duty to his family, his duty to his job, his duty to his own career, all of his wishes and hopes for life, just disappeared.” What mattered was saving that young man, even at the cost of his own life.
How can this be, Campbell asked? Schopenhauer’s answer, he said, was that a psychological crisis represents the breakthrough of a metaphysical reality, which is that you and the other are two aspects of one life, and your apparent separateness is but an effect of the way we experience forms under the conditions of space and time. Our true reality is our identity and unity with all life.
Sometimes, however instinctively or consciously, our actions affirm that reality through some unselfish gesture or personal sacrifice. It happens in marriage, in parenting, in our relations with the people immediately around us, and in our participation in building a society based on reciprocity.
The truth of our country isn’t actually so complicated. It’s in the moral compact implicit in the preamble to our Constitution: We’re all in this together. We are all one another’s first responders. As the writer Alberto Rios once put it, “I am in your family tree and you are in mine.”
I realize that the command to love our neighbor is one of the hardest of all religious concepts, but I also recognize that our connection to others goes to the core of life’s mystery and to the survival of democracy. When we claim this as the truth of our lives — when we live as if it’s so — we are threading ourselves into the long train of history and the fabric of civilization; we are becoming “we, the people.”
The religion of inequality — of money and power — has failed us; its gods are false gods. There is something more essential — more profound — in the American experience than the hyena’s appetite. Once we recognize and nurture this, once we honor it, we can reboot democracy and get on with the work of liberating the country we carry in our hearts.
[Bill Moyers has been an organizer of the Peace Corps, a top White House aide, a publisher, and a prolific broadcast journalist whose work earned 37 Emmy Awards and nine Peabody Awards. He is president of the Schumann Media Center, which supports independent journalism. This essay is adapted from remarks he prepared for delivery this past summer at the Chautauqua Institution's week-long focus on money and power. He is grateful to his colleagues Karen Kimball and Gail Ablow for their research and fact checking.]