American Political Economy in Global Perspective

Description

This book is a guide to claims about the proper role of government and markets in a global economy. Moving between systematic comparison of 19 rich democracies and debate about what the United States can do to restore a more civilized, egalitarian, and fair society, Harold L. Wilensky tells us how six of these countries got on a low road to economic progress and which components of their labor-crunch strategy are uniquely American. He provides an overview of the impact of major dimensions of globalization, only one of which – the interaction of the internationalization of finance and the rapid increase in the autonomy of central banks – undermines either national sovereignty or job security, labor standards, and the welfare state. Although Wilensky views American policy and politics through the lens of globalization, he concludes that the nation-state remains the center of personal identity, social solidarity, and political action. He concentrates on what national differences mean for the well-being of nations and their people. Drawing on lessons from abroad and from America's own past successes, Wilensky shows how we can reverse our three-decade decline. He argues that, in order to get off the low road, we must overcome the myths of “moderation,” the rise of the “independent voter,” and a rightward shift of the electorate. He specifies a feasible domestic agenda that matches majority sentiments in all rich democracies. American Political Economy in Global Perspective Title Copyright Contents Figures Tables Preface and Introduction Acknowledgments PART I: GLOBALIZATION, PUBLIC POLICY, AND THE WELL-BEING OF PEOPLE 1: The Welfare State as the Center of Public Finance and Political Conflict 2: Energy Policy and Performance: The United States and the World A. ECONOMIC PERFORMANCE AND ENERGY INDEPENDENCE, 1980–2005 1. Denmark: Wind, Biofuels, and the Best Reduction of Greenhouse Gases 2. Sweden: Hydropower, Nuclear Power, and Tops in Reducing CO2 Emissions 3. The Nuclear Option: Comparing Sweden, France, and the United States B. CAP-AND-TRADE OR CARBON TAX? C. WHAT TO DO ABOUT THE GLOBAL LOVE AFFAIR WITH CARS D. CORN-BASED ETHANOL, “CLEAN COAL,” AND OTHER FOLLIES E. CORN-BASED ETHANOL, NO; OTHER BIOFUELS, YES F. SUMMARY AND INTERPRETATION: THE INTERDEPENDENCE OF POLICIES 3: What Trade-Offs Are Good and Bad for the Economy?: Domestic Structures and Policies That Permit Adaptation to Globalization A. CONSENSUAL VS. CONFRONTATIONAL DEMOCRACIES B. WHICH OF THE SOURCES OF GOOD ECONOMIC PERFORMANCE ARE MOST IMPORTANT? 4: Retrenchment of the Welfare State?: The Fate of “Cutback Budgeting” in Italy, France, Germany, the United States, the United Kingdom, and New Zealand A. SIMILARITIES IN MASS SENTIMENTS ABOUT THE PROPER ROLE OF GOVERNMENT B. A REVOLT OF THE “MIDDLE MASS”? 5: Pensions Converge, U.S. Health Care Remains Unique A. WHAT IS THE PROBLEM TO BE SOLVED BY PENSION REFORM? B. U.S. HEALTH CARE AND REAL HEALTH IN COMPARATIVE PERSPECTIVE C. WHY NO NATIONAL HEALTH INSURANCE IN THE UNITED STATES? 1. Historical Legacy as an Explanation 2. Electoral System, Structure, and Operation of Government 6: The Impact of “Globalization”: An Overview A. THE IMPACT OF CAPITAL FLOWS B. CONVERGENCE IN IMMIGRATION, DIFFERENCES IN POLICIES AND POLITICS C. DEREGULATION OF THE LABOR MARKET? D. WHAT JOBS CAN BE OUTSOURCED WITH WHAT EFFECTS? 1. Definition and Numbers 2. Heterogeneity of “Manufacturing” and “Services”: Is Modern Society “Postindustrial”? 3. What Kinds of Jobs Can Be Offshored? 4. Causes of Outsourcing vs. Causes of All Occupational Change 5. Effects of Outsourcing 6. A Postscript on Job Creation and Poverty Reduction from a Green Economy E. THE IMPACT OF MULTINATIONAL CORPORATIONS F. THE REAL CULPRIT: THE INTERNATIONALIZATION OF FINANCE AND THE POWER OF STRONG CENTRAL BANKS 1. Central Bank Autonomy and Ideology 2. Financial Deregulation and the Crisis of 2007–2010 in Comparative Perspective: Origins, Sequence, Policies, and Effects Recessions vs. Depressions Causes and Sequence of Global Financial Crises “Sure to Fail” The Power of the Financial Lobby G. SUMMARY AND INTERPRETATION PART II: MOVING THE UNITED STATES OFF THE LOW ROAD: Lessons from Abroad 7: Low Road vs. High Road: American Exceptionalism? A. THIRTEEN POTHOLES ON THE LOW ROAD 1. Decreasing Power of Labor Unions 2. Relatively High Man-Days Lost in Strikes; Generally Confrontational Labor Relations at the Workplace and Beyond 3. Low and Stagnant Wages in the Bottom Half to Two-Thirds of the Income Distribution, High Rates of Poverty, Greater Concentration of Wealth, and Inequality in Household Income 4. Intensive Use of Low-Skilled Workers and the Least Educated Workers in Large, Rapidly Growing Sectors (e.g., Retail Trades) 5. Long Hours of Work 6. A Widening Spread between High-Wage, High-Skilled Workers and the Least Educated 7. Decreasing Job Security for Most of the Labor Force 8. Meager Investment in the Infrastructure Low and Unstable Investment in Physical Capital Low and Unstable Investment in Human Capital 9. A Welfare State That Is Below Average in Spending (GNP Share) and, with the Exception of Public Pensions and Medicare, Is Inefficient and Ineffective No National Health Insurance Deteriorating Private Pensions and Individual Savings Accounts Passive Labor-Market Policy vs. Active Labor-Market Policy Family Breakup without Family Policies to Cushion the Shock 10. Violent Crime and the Highest Incarceration Rate among 19 Rich Democracies (High Murder Rates and Correlated Violent Crime) 11. Very High Military Spending, Which Subverts Both Social Spending and Civilian R&D The Economic Explanation Erosion of the U.S. Lead in Science and R&D 12. Intrusive Regulation or Weak Regulation: Cycles of Deregulation and Reregulation 13. Good Job Creation until the Decade of 2000–2009 B. FINAL MESSAGE 8: Policy Implications for the United States: How to Get Off the Low Road A. RECAPITULATION: WHERE WE HAVE BEEN 1. Restoring Deliberative and Representative vs. the Plebiscitary Aspects of Democracy 2. Direct Democracy, Election Frequency, Voter Fatigue, and Voter Turnout B. CAN THE TWO MAJOR PARTIES BE REVITALIZED FOR GOVERNING? C. POLICY AND POLITICS 1. The Idea of Policy Paralysis 2. The Myth of Moderation, the Independent Voter, and the Rightward Shift: Why Old Issues Are Good Issues D. THE SOCIAL COMPOSITION OF A WINNING CENTER-LEFT COALITION, PAST AND PRESENT E. POLICY IMPLICATIONS: A CENTER-LEFT AGENDA 1. The Need for White House Leadership 2. The U.S. Senate: Can the Broken Branch Be Restored? 3. National Health Insurance 4. Labor Law Reform 5. What Should Be Done about Money and the Media in Politics? F. A MORE FEASIBLE PART OF THE AGENDA 1. Family Policy and Social Security 2. An Active Labor-Market Policy 3. Reversing the Erosion of the U.S. Lead in Education: The Question of “Education vs. Training” First, Upgrade K–12 Changing Teachers’ Education and Certification Postsecondary Education California: Killing the Goose that Laid the Golden Egg Education vs. Vocational Training? Community Colleges: Overloaded and Underfunded For-Profit “Virtual Education”: The Latest Threat to Quality California: The Canary in the Coal Mine? 4. Summary: What Is Wrong with Education and What to Do about It 5. A Large-Scale Voluntary Program of National Civic and Military Service 6. Reducing Poverty and Inequality 7. Immigration Policy 8. Energy Policy, Politics, and the Environment 9. Financial Reregulation 10. A Note on Tort Reform 11. Government Spending vs. Tax Breaks G. HOW TO PAY FOR IT ALL: THE NEED FOR TAX BALANCE H. COALITION POLITICS TO RESTORE THE PURSUIT OF A CENTER-LEFT AGENDA Appendix: Concepts and Measures Consensual Democracies vs. Confrontational Democracies Cumulative Party Power Types of Political Economy Electoral Systems Exports as Percentage of GDP (Table 6) Projections of the Ratio of Workers to Retirees by Age in Figure 3 and Other Shaky Forecasts “Bank” Bailout Accounting 2009–2010 Sources, Definitions, and Statistical Significance for Table 11. Differences in Economic, Social, and Political Performance under Democratic and Republican Presidents, 1946–2009 Notes Bibliography Index