• Home
  • About the book
  • About the author

MADE IN AMERICA

Notes on American life from American history.

Feeds:
Posts
Comments
« Opening Day 2012 – Worldwide
Sunday Pleasures, Private Faith »

Between Dole and Market

April 9, 2012 by Claude Fischer

Much of the recent debate over the proper role of government in the lives of the economically unfortunate poses a choice between letting Americans make as much of their opportunities as they can in the free market versus providing people with a stronger safety net, effectively a “dole” that some claim would undermine Americans’ work ethic. Newt Gingrich has, for instance, contrasted a food stamp system that claims to be compassionate to a work system that insists on work and thereby really is compassionate.

R. Lee LC-USF33-012380-M5

Even liberals have accepted this framing of the debate by emphasizing how much families in distress need help such as unemployment insurance, free school lunches, health assistance, and mortgage relief. Some of the Occupy movement’s rhetoric (e.g., “eat the rich,” “millionaires’ tax”) also seems to accept that the choice we face is either an uncontrolled market or monetary redistribution.

But there is a middle position here. America has often acted in ways that neither put people on the dole nor let them sink-or-swim in the market, ways that help the unfortunate and the fortunate at the same time.

Jobs

American governments have historically provided jobs rather than doles – the New Deal most famously. To be sure, many criticize some of those jobs as “featherbedding” and some certainly are. Others complain that government employment undercuts private market employers. (As I mentioned in an earlier post, southern landowners, in particular, complained about the competition New Deal jobs created for farm tenant labor. Georgia governor Eugene Talmadge wrote to President Roosevelt: “I wouldn’t plow nobody’s mule for fifty cents a day when I could get $1.30 for pretending to work on a DITCH.”) But the bulk of New Deal employment was hard work that produced lasting good, whether it was irrigation ditches, dams, bridges, roads, park trails, or wall murals.

Even before the New Deal, urban political machines emphasized major (and, to be sure, well-padded) construction projects. Most of the hod-carriers and bricklayers did what they were paid for and we can see it all around us: Between about 1880 and 1960, government-paid workers built much of the basic  infrastructure upon which we still depend, such as subways, water and sewer systems, sidewalks, highways, and school buildings.

Public Goods

Government also provides a set of shared “public goods” that everyone uses even though the unfortunate need them more – policing, local parks, sanitation, education, for example. The better these public provisions, the better off are less affluent Americans; they don’t need to use their sparse funds to buy those goods in the market.

The big debate these days about health care is about extending what is now provided as a public good only for a minority of Americans (the elderly, veterans, the destitute) to all Americans. This is the only economically advanced nation in which ill or injured people who do not fall into these categories (and are not rich) need to worry not only about getting healthy, but also about whether they can afford to get healthy.

WPA Crew_LC-USF34-056467-D

Regulation

Less affluent people are more vulnerable than the well-off to getting cheated in the marketplace. Lacking money and credit, they must go to bottom-feeding sellers and providers (as in those risky mortgages that blew up); they cannot afford legal advice; they typically lack the tools and time to pursue either better deals or better justice. Similarly, less affluent people suffer more from the “externalities” of the market – the toxic wastes from factories, the economic collapse of communities left by employers decamping to greener fields, the roller-coaster cycle of house values, and so on. Governments regulate markets to minimize such costs.

All governments regulate the relationship between employers and employees. (No nation, modern or old, comes even close to the libertarian fantasy of an unregulated market.) There are rules, for example, about hours, working conditions, age limits, pensions, discrimination, and minimum wages. There are rules about “corporate governance” – how corporations must run in order to protect investors. And there are rules about union formation and power. Such regulation can be formulated to assist the less fortunate.

The United States, however, generally has weak – and often getting weaker – regulations. For example, since about the 1980s our rules about corporate governance have increasingly insisted that the shareholders’ immediate financial interests are the essentially the only interests that management can legally consider – not those of the workers, the local community, nor even the taxpayers who have often subsidized the firm. In this sphere, as in all the others, there are many options that nations can use to re-balance people’s fortunes at least a bit — and that are not simply income redistribution.

Objections

These government actions — jobs, public goods, regulation — do not pick the pocket of a rich guy and hand his wallet over to a lazy bum. Of course, some programs can redistribute money indirectly. Stronger unions, for example, would return to labor the roughly equal share it used to get, before the 1970s, from increased economic productivity; college grants and loans go to the neediest students; tax-supported libraries are more critical to those wh cannot afford to buy books; and so on. Still, these  indirect transfers are not “doles.” The largest transfer program (after programs for the elderly and Medicaid) is probably the Earned Income Tax Credit which supplements the incomes of low-earners. But precisely because it gives money to people who do work, it has gotten support from left and right (it was expanded by Ronald Reagan). Moreover, good arguments can be made that these other, non-transfer programs, by stimulating the economy and enabling more Americans to fully participate, actually increase the wealth of all. These are third way approaches between the dole and the safety-net-less market.

One further critique against doing more along these lines – more government jobs, public goods, and regulation – is that we cannot afford to do more in the tough world marketplace. This objection is hard to credit given that other western nations – most of which, because they are so much smaller than the U.S., are much more vulnerable to global market forces – in fact do more along these lines than we do. And their people live well. Where there is a will, there is a third way.

Share

Share this:

  • Share
  • Email
  • Facebook
  • Twitter
  • Reddit
  • Tumblr
  • LinkedIn

Like this:

Like Loading...

Related

Posted in Uncategorized | Tagged equality, government, needy |

  • Made in America: Now available in Paperback, on Kindle, and via Google eBook

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 448 other subscribers
  • Comment Back to:

    madeinamericathebook @ gmail.com
  • * 2010 winner, PROSE Award for U.S. History, American Association of Publishers.
    * "A shrewd, generous, convincing interpretation of American life" -- Publishers Weekly
    * "Masterful and rewarding . . . exactly the sort of grand and controversial narrative, exactly the bold test of old assumptions, that is needed to keep the study of American history alive and honest" -- Molly Worthen, New Republic Online
    * "... brave and ambitious new book ...." "Made in America sheds abundant light on the American past and helps us to understand how we arrived at our own historical moment, and who we are today." -- David M. Kennedy, Boston Review
    * "... this book ... already belongs to the prestigious line of works which decipher the singular character of America. It is in itself a mine of definitive information for all those who are interested in American society and its fate in modernity" [trans. from the French] -- Nicolas Duvoux, Sociologie

  • Pages

    • About the book
      • Corrections & Updates
    • About the author
  • Previous Posts

    • How Red v. Blue Became Me v. You: Polarization, Part I
    • The Covid Experience Reveals How Weird America Is
    • Americans Continue to Associate. For What Cause?
    • Slavery, Capitalism, and Reparations
    • Opening Day, 2022: Still Unresolved
    • No Peace, No Justice
    • The Right’s Reaction to Americans’ Leftward Shift: A Supreme Example
    • The Culture Has Moved Left… So the Right has Mobilized
    • Overcoming Distance and Embracing Place: Personal Ties in the Age of Persistent and Pervasive Communication
    • The Death Surge Before Covid-19: Who, What, and Why.
    • Women Rising: Life Stories from the Last Century
    • Whither Big Tech, or When Novelties Become (Regulated) Necessities
    • Opening Day, 2021: Baseball’s Crises
    • First Takes on the Election #2: What About the Polls?
    • The Political Census
    • First Takes on the Election: #1, What Happened?
    • Now for Something Different: Is Sex Wilting?
    • Explaining Trump: The Next-to-Last Time (I Hope)
    • Covid-19: Exceptionalism with a Vengeance
    • Is Left Cancel Culture Cancelling Left Culture?
    • BLM Protests: Surprisingly Successful… So Far. Why?
    • White Liberals’ Political Correctness Could Help Trump Get Re-Elected
    • Asteroidal Change or Glacial Change? Peering Over the Covid-19 Horizon
    • Opening Day Under Covid-19: Do Fans Matter?
    • COVID-19: Balancing Short-Term Solutions and Long-Term Effects. Are There Lessons from 1918?
    • Bernie: The Left is Still Waiting for the Proletariat Vote
    • AG Barr says attacks on religion are loosening the hounds of hell. Are they?
    • One Year Down, One to Go: Still Explaining Trump
    • Lead, Brains, and Behavior: Sociology Meets Biology
    • The Year’s Racial Flare-Ups: Signs of the Future or Signs of a Last Gasp?
    • [Bracket] Political Commentary [End Bracket]
    • Parental Love, Opportunity Markets, and Inequality
    • Brain Twisting, or How We Evolved
    • Opening Day, 2019: Data-Crunching, Inequality, and Baseball
    • Fixing Inequality: More Opportunity is Not the Answer
    • A Christian America? The Talk and the Walk
    • Shareholder Value: Law, Inequality, and the Doubting Justice
    • After the Election: More Polarization or Less?
    • Searching for the Authentic Self (… and Finding Trump)
    • The Politics-Religion Vortex Spins
    • Loneliness Epidemic: An End to the Story?
    • Get by with a Little Help from…
    • Feel-Good or Do-Good Politics
    • Do Americans Tolerate Zero Tolerance?
    • How Can Size of Community Still Matter?
    • Sending a Message by Pollster
    • Loneliness Scare Again… and Again… and…
    • Where Have You Gone, “Alienation”?
    • Opening Day, 2018: Politics, Race, and Baseball
    • Local Cultures
    • Chain Migration
    • Explaining Trump Some More
    • “Okie from Muskogee” a Half-Century On
    • Reversing American Voluntarism
    • National Character? A Reply to Stearns
    • Do We (Still) Value Family?
    • Is Marriage Over? For Whom?
    • Bannon, Brown, and the Identity Debate
    • The Great “American” (or is it New York?) Songbook
    • Is Health Care a Right?
    • Church Social
    • Inequality is about Security and Opportunity
    • Democracy in America, France, and “Hamilton”
    • Opening Day, 2017: Inequality on the Field, in the Stands
    • Voting for the Five Percent
    • More (on) Polarization
    • Americans and the Unassimilables
    • Explaining Trump
    • ***** Hiatus *****
    • The Great Settling Down
    • Election Reflection
    • Is the U.S. No Longer Religiously Exceptional?
    • Technology and Housework: Other Tasks for Mother?
    • Can Sociability Blunt Political Polarization?
    • The End of Good Work?
    • RFD, Media, and Democracy
    • Long Tails, Big Cities, Critical Masses
    • A Woman President?
    • Magazines: 19th Century Internet
    • Friends and “FB Friends”
    • Reversal of Fortune: American Cities
    • Does Education Work?
    • A Tony by Any Other Name…
    • Bernie, Hillary, and Historical Memory
    • Driving Cattle, Driving Exceptionalism
    • Build Bigger Wall? Get More Undocumented.
    • Opening Day 2016
    • Great Again
    • A Celebrity Strong Man
    • Survey Says . . .
    • Veterans and Suicides?
    • Odd Man In
    • The Pace, the Pace
    • A Street Divided
    • A History of Health and Health Inequalities
    • Why Diversity
    • Family Wages
    • What Happened When They Came?
    • The Grandma (and pa) Effect
    • Turkle, Times, Technology, Trauma–Yet Again
    • Just Deserts
    • Cell Phone Etiquette
    • Changing Hearts, Changing Matters, 2011-2015
    • American Self-Creation
    • The Immigrant-Crime Connection
    • Black by Choice?
    • The Marriage Contract
    • Attaining Adulthood
    • Left Out: Working-Class Kids
    • Life is a Stage, or Several
    • Family Farms vs. Americanism
    • Censor This, Political Correctness
    • Opening Day 2015
    • Science vs. Religion… or Science and Religion?
    • Building the Natural Market
    • Dressing Down
    • Untangling the Race Gap
    • Finding Public Relief
    • Surveying Change
    • Snap Decisions and Race
    • Holy-Day Exceptionalism
    • Where Does the “Don’t Shoot” Movement Go?
    • Reporting from America’s “Slums”
    • Racism as Mental Illness?
    • Which University?
    • The “Shared” Economy
    • Of Places Past
    • Long Story of the “Long Tail”
    • The Blameless Only
    • When Epidemic Hysteria Made Sense
    • Latest News on “No Religion”
    • Vocabulary Retrogression
    • American Way-Differentism: More a Club than a Family
    • Do Ideas Matter?
    • Alternative to Empathy
    • Women Dining
    • Too Much Social Science?
    • Ferguson and Social Media
    • Blame Who or What
    • “Libertarianism is Strange” Revisited
    • All Tech Is Social
    • How Ideas Make Themselves Matter
    • Women in Politics 1780-2014
    • Government Works
    • Telling Stories vs. Telling Data
    • Persistence of Race, 2014
    • Selfishness or Self-Awareness?
    • Virtuous Debt
    • Work Hours and the Pay Gap
    • Life in Public, Then and Now
    • Mourning 9/11 Victorian Style
    • A “Friends” Gripe
    • Bible Readings
    • Old Days, Fast Times
    • De-Democratizing?
    • Eco-Puritanism
    • Bring Me Your….
    • Thinking Inequality
    • Which Radical Ideas Come True?
    • Pastime – Opening Day 2014
    • Where Did “Hispanics” Come From?
    • Kitty Genovese: The Emblematic Story
    • Public Health
    • Exceptionalism Ending?
    • Risk-Sharing
    • Folktales of the Policy Elites
    • Male (Job) Insecurity
    • Libertarianism is Very Strange
    • Art and the Machined World
    • The Public Housing Experiment
    • The S-Curve of Cultural Change
    • Artful History
    • Inventing the Social Network
    • American Dream, Twisting
    • Deservingness
    • Place Matters More
    • Squirrely History
    • Atheist Evangelism: “Nothing New Under the Sun”
    • The Giving Season… and Era
    • Cell Phone Science
    • Boo! Americans and the Occult
    • You Call That a Shutdown?
    • More Inequality Updates
    • Political Responses to the Crash
    • Child Labors
    • Word Counts and What Counts
    • Loss of Economic Exceptionalism
    • Learning Sympathy
    • Respecting the Science
    • Economic Equality, 1774 and Beyond
    • Declaring You’re a “None”
    • Extremely Local
    • Robert Bellah
    • Inequality Hits Home
    • The Supreme Court Ducks Immutability
    • Postcard from Paris
    • America’s Religious Market
    • American-Made Ethnic-Americans
    • New Media and Old Manifestations
    • Novel Data: Promise and Perils
    • Immigrants and Historical Amnesia
    • Inequality Update
    • Psychologically Damaged
    • Race in the Eye of the Beholder
    • Getting Smarter
    • Suicide Boom?
    • Tweedledee-Tweedledum Nostalgia
    • Sexual License, Sexual Limits
    • Markets, Prices, and Justice
    • Immigration and Political Clout
    • Is the Gender Revolution Over?
    • Writerly Baseball – Opening Day 2013
    • Back Home
    • Catholic Schism
    • How Material Are We?
    • Unholy Alliance: Laissez Faire and the Church
    • The ’60s Turn 50
    • The Left’s Religion Problem
    • Paying Attention to the Kids
    • We’re # Last!
    • Risk Taking
    • The Elderly and Their Children
    • Guns
    • A Modern “Antebellum Puzzle”?
    • Makes One Anxious
    • Psychological Labeling … and Enabling?
    • The Giving Nation? Philanthropy’s Problems
    • Religion, Politics, and the Sunday Mail
    • The Happiness Boom
    • What Americans Have Been Thinking
    • The Verdict on Class and Voting
    • Panderocracy
    • 9/11 Reaction and Resilience
    • A Cost of Inequality: Growth
    • Obama’s Racial Penalty
    • Choose Your Choice
    • To the Poorhouse
    • The Polarizing Political Paradox Redux
    • The 47% Charge in U.S. History
    • The Survey Crisis
    • Competitive Intelligence
    • Execution Songs
    • Spiritual and/or Religious
    • “Who Built That?”: Chance and History
    • Meeting, Mating, and the Web
    • Live Long and Prosper — and Plan
    • Voting Violence
    • Sex and the American Car
    • The Assets Gap
    • Differences Under the Differences
    • Why Americans Don’t Vacation
    • Virtuous Voting
    • Clothes Make the Common Man
    • Driving Blind
    • Geography of Inequality
    • Slavery’s Heavy Hand
    • Gay Vows
    • Explaining Poverty (Again)
    • Out- and Insourcing
    • Still Under God
    • The Loneliness Scare is Back
    • Sunday Pleasures, Private Faith
    • Between Dole and Market
    • Opening Day 2012 – Worldwide
    • Tolerating Americans
    • What’s the Common in the Common Good?
    • End Times and Presidents
    • The Abortion Puzzle
    • The Army of Black Liberation
    • The South Has Risen
    • Can’t Believe It
    • Marrying — Up, Down, Sideways
    • Occupy 2012: Another 1968?
    • Over-Impacted
    • How Bad is “European”?
    • Unique, Sovereign, American
    • The Working Class’s Party
    • Reconstructing Memory
    • Make-Your-Own Religion
    • Consume This
    • Self-Absorbed: Emerson & Thoreau
    • What Works? Votes.
    • Stumbling in the Dark
    • More on Occupy
    • Occupy! Now What?
    • Lost Children
    • Cheerful Yanks?
    • Tolerating Ambiguity
    • New News, Old News
    • Unequal Denial
    • Timing is (Not?) Everything
    • Breastfeeding History
    • What’s a Life Worth?
    • Homesick Blues
    • Summer Break
    • Spinsters No More
    • Missing Tramps
    • City Crime; Country Crime
    • Living Togetherness
    • Naturally Clean
    • Women Graduating
    • Home Owning Dreams
    • Technology and Fundamentals
    • Protected Class
    • Faith Endures
    • American Exceptionalism
    • Buying a Head Start
    • A. Lincoln, Socialist?
    • Opening Day 2011
    • Shaken but Secure
    • Jobs Go and Come
    • Heavy Hand
    • The Big Change
    • American Ties (III)
    • Money and Character
    • Going Out–or Home?
    • Degree Inequality
    • American Ties (II)
    • Ugly or Needy
    • 18th-Century Twitterfeed
    • American Ties (I)
    • Grammar Rules
    • Christmas Struggle
    • Ancestor Worship
    • Was Slavery, Is Slavery
    • Hanukkah or Vanish?
    • Pilgrims, Puritans, Americans?
    • Return on Investment
    • Solidarity, Soldiers, and Baseball
    • Win Stay, Lose Change
    • Why Vote?
    • We’re All Geniuses
    • Caring More or Less
    • Life Begins
    • Equal Visions
    • No Dinner Invitations?
    • Depressing Comparisons
    • Labor’s Laboring Efforts
    • Multiculturalism Lite and Right
    • Who Has Your Back
    • A Natural Romance
    • Alone or Lonely?
    • Sentimental Journey
    • LeBron & the 10th
    • We’re #1 !
    • A Fragmenting America? – Pt. 2
    • A Fragmenting America? – Pt. 1
    • Fighting for the 4th
    • Gentrified Memories
    • Juneteenth: Race? Slavery?
    • Boomer Blues
    • No Longer the Tall American
    • A Crime Puzzle
    • Memorial-izing Day
    • Angry Old White Men
    • Sisters Take the Streets
    • Brooks, Policy, and History
    • Tongue-Tied to America
    • Happiness Happy
    • Inventing Friendship
    • American Individualism – Really?
    • Tax Day: The Government-Enterprise System
    • Opening Day 2010
    • Did “Consumerism” Blow Up the Economy?
    • A Christian America? What History Shows
    • The Myth that Never Moves
    • Good Health, Long Life, and Big Government
    • Announcing the “Made in America” Site

Blog at WordPress.com.

WPThemes.


  • Follow Following
    • MADE IN AMERICA
    • Join 448 other followers
    • Already have a WordPress.com account? Log in now.
    • MADE IN AMERICA
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...
 

    %d bloggers like this: