Free Markets, Free People
When is the GOP (and the public) going to learn?
How many times have we heard that the only thing standing in the way of a grand bargain to reduce our growing national debt is Republican intransigence on taxes? If Republicans would only agree to dump Grover Norquist, Democrats will agree to cut spending and reform entitlements. Then, we can all join hands and sing Kumbaya as we usher in a new era of compromise and fiscal responsibility.
Except that now that Republicans have agreed to raise taxes, er, revenue, as part of an agreement to avoid the looming fiscal cliff, liberals appear to have decided that there really isn’t a need to cut spending after all.
Yup, in fact they’ve taken entitlement reform “off the table”.
Senate Democratic leaders signaled Tuesday they would not agree to any entitlement reforms before the end of the year that cut spending on Medicare and Medicaid beneficiaries.
They also said that any year-end deal to avoid the expiration of tax cuts and implementation of spending cuts — known as the fiscal cliff — must include a provision to raise the debt ceiling, which would otherwise have to be addressed early next year.
The White House and Reid have indicated they will not consider cuts to Social Security, a notable change from 2011, when President Obama said “everything is on the table,” including entitlement programs dear to his party’s base.
In other words, we’re back to “tax the rich”, raise the debt ceiling and spend, spend spend. Meanwhile, it is left up to the GOP to “compromise” by breaking the tax pledge (led by the Judas goats, Saxby Chambliss and Lindsey Graham) or be forever branded as the intransigent “bad guys” in this.
Meanwhile, low information Americans who, by over 60% approve of taxing the rich, will buy the spin by the press painting the GOP as the cause/reason for the calamity while Democrats “lament” the problem (“but, hey, that’s now the law thanks to Republicans”) and gleefully rub their hands in delight at all the new revenue they’ll have to “redistribute”.
Some things never change, do they?
California, of course:
“The California Republican Party is functionally dead. And how is California doing, now that liberals have successfully terminated the state’s remaining conservatives?” #1 in debt, #1 in welfare, #1 in taxing the rich. And hoping for a federal bailout, I suspect. As is Illinois, which is in similar straits for similar reasons. “One-third of all the nation’s welfare recipients live in the state, despite the fact that California has only one-eighth of the country’s population. That’s four times as many as the next-highest welfare population, which is New York. Meanwhile, California eighth-graders finished ahead of only Mississippi and District of Columbia students on reading and math test scores in 2011.”
You can warn people till you’re blue in the face (no pun intended) how the blue state model is going to end up, but sometimes it is instructive to just let it happen. Of course that assumes that those observing the train wreck try to understand how it happened and work to avoid it elsewhere. I’m not so sure that’s the case in this nation. But fair warning, given the fiscal road we’re on California is as much in our future as Greece:
“For a century or so, guided by brilliant private sector leadership, California was a beacon to the world, a land of opportunity such as never had existed in human history. Unimaginable wealth was created. Yet it required only 40 years of liberal governance to bring the whole thing crashing down. Today, California is the most spectacular failure of our time. Its government is broke. Productive citizens have been fleeing for some years now, selling their homes at inflated prices (until recently) and moving to Colorado, Arizona, Texas and even Minnesota, like one of my neighbors. The results of California’s improvident liberalism have been tragically easy to predict: absurd public sector wage and benefit packages, a declining tax base, surging welfare enrollment, falling economic production, ever-increasing deficits. Soon, California politicians will be looking to less glamorous states for bailout money. Things have now devolved to the point where California leads the nation in poverty.”
California is a state which has modeled blue government for decades, despite warning of where it’s continuance would lead.
And, shockingly to the left, it has ended up right where it was predicted it would end up. Yet, they blindly and willfully continue to march along as though the reality will change and economic laws will disprove themselves if they just persist in their actions.
California is our future. Our near future. See, it’s pretty much as simple as this:
If a country runs a deficit (as a percentage of GDP) that is equal to its growth rate, the debt level will remain constant. This year U.S. GDP will be a little less than $16 trillion, and its historical growth rate is 3.25%. That works out to what we might call a “safe” deficit of $520 billion, or even $600 billion if you allow for a little inflation. Last year, however, the U.S. deficit was $1.1 trillion — or roughly $500 billion too much.
That gap could be closed by ending all tax cuts, tax breaks and stimulus payments for everyone, according to the Tax Policy Center. But two-thirds of the burden would fall on the middle class — something both political parties want to avoid. All the proposed tax increases on the wealthy, however, even combined with the end of the payroll-tax cut, would raise only $295 billion. So unless there were spending cuts twice as big as the ones currently scheduled, the deficit would still be too large.
Those sorts of cuts aren’t even being discussed. Imagine, if you would, radical cuts in the size and scope of our current federal government. Imagine subsidies of all sorts being eliminated. Imagine backing government out of many of the areas it has no business. Imagine simplifying the tax code and giving business a warm fuzzy feeling about the business atmosphere by freezing regulation and in some instances rolling them back. Imagine all of that, because none of it is going to be done.
Instead, the solution is to “tax the rich”.
So let ‘em have it (only if they repeal the Hollywood tax cut). Tax the rich. And when it doesn’t work, and it won’t (in fact, I’m not sure what “work” means in this particular case since the amount to be collected is a mere drop in a 1.6 trillion dollar ocean of debt that’s planned each year for the foreseeable future), they’re left with a lot fewer excuses, huh?
Not that they won’t try to point fingers when their grand plan crashes.
Yup, in the end it all looks like we’re headed to California. Apparently we’re going to have to recreate that debacle on a national level before the blinders come off of the public and the realization that you can’t spend more than you have forever finally sinks in.
Whether or not it will too late to salvage the country at that point, remains to be seen.
If you’re at all concerned about the economy, the answer is likely “not very well”:
U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.
Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.
Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.
At the same time, exports are slowing or falling to such critical markets as China and the euro zone as the global economy downshifts, creating another drag on firms’ expansion plans.
Why are we seeing this happen? As it stands, most corporate spenders see no possibility of the hostility toward corporate America easing and also view whatever is to come in January concerning taxes and tax policy to likely be a lose-lose for them however it goes:
Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.
Companies fear that failure to resolve the fiscal cliff will tip the economy back into recession by sapping consumer spending, damaging investor confidence and eating into corporate profits. A deal to avert the cliff could include tax-code changes, such as revamping tax breaks or rates, that hurt specific sectors.
Or, as before the election, an unstable business climate persists which does not provide any incentive to expand, spend or hire. In fact, as indicated above, it is providing precisely the opposite incentives. It’s one reason the GDP forecast for the country has been downgraded again to 1.5% (Mexico, for heaven sake, has GDP growth of 3.2%).
But when you vote for the status quo, well, you get what you vote for — enjoy.
Such that it was. 4 things.
One: There were no ‘hard questions’. If you look at the transcript you’ll note that the President called on reporters by name. You know why, don’t you?
Two: The Susan Rice thing. Let’s do a Candy Crowley and go to the transcript:
But for them to go after the U.N. ambassador, who had nothing to do with Benghazi and was simply making a presentation based on intelligence that she had received and to besmirch her reputation is outrageous.
What’s outrageous is he just admitted that he didn’t say that Benghazi was a terrorist act as he asserted in a debate, or, one assumes, Ms. Rice wouldn’t have been spouting the video line. If Obama knew on day two in the Rose Garden that it was a terrorist attack (and the only way he’d know was through intel reports), why didn’t Rice?
What I’m concerned about is not finding ourselves in a situation where the wealthy aren’t paying more or aren’t paying as much they should; middle-class families, one way or another, are making up the difference. That’s the kind of status quo that has been going on here too long, and that’s exactly what I argued against during this campaign. And if there’s — one thing that I’m pretty confident about is the American people understood what they were getting when they gave me this incredible privilege of being in office for another four years. They want compromise. They wanted action. But they also want to make sure that middle-class folks aren’t bearing the entire burden and sacrifice when it comes to some of these big challenges. They expect that folks at the top are doing their fair share as well, and that’s going to be my guiding principle during these negotiations but, more importantly, during the next four years of my administration.
I’m not sure how many times we have to publish the percentage of taxes the top 5%, 2% or 1% pay in comparison with the rest of the population, but in reality, they pay much more than their “fair share”. This isn’t about “fair share’s”. It’s about perpetuating a myth that taxing them more will ease the debt/deficit problem (as Dale has pointed out, it will yield about $42 billion) and give Obama someone to blame if “negotiations” fail. This tax the rich scheme is the reddest of red herrings.
Four: Perputuating the “Big Lie”:
You know, as you know, Mark, we can’t attribute any particular weather event to climate change. What we do know is the temperature around the globe is increasing faster than was predicted even 10 years ago. We do know that the Arctic ice cap is melting faster than was predicted even five years ago. We do know that there have been extraordinarily — there have been an extraordinarily large number of severe weather events here in North America, but also around the globe.
There has been no warming for the past 10 years, Arctic ice is fine, thank you very much, and there have not been an “extraordinarily large number of severe weather events” here. In fact, we’re in a “hurricane drought” per the experts.
The good news, if you believe him, is that climate change will take a back seat to jobs and the economy. How do we measure whether this is more Obama hot air (i.e. saying one thing, doing another) or he means it?
Watch the EPA.
Charlie Cook, who is very astute politically, made this observation about the election that I think is pretty spot on, and it reinforces what we’ve been talking about here for the last few days:
Watching politics for 40 years now, I have seen the two major parties tend to leapfrog each other in terms of political sophistication. This state of the political art, when one party is firing on all eight (or, these days, six or even four) cylinders, seems to happen when the other party is in desperate need of a tune-up.
Democrats had a lousy economy, made some rather dubious policy choices in the past four years, and had an incumbent who chose to skip the first debate. But when it came to just about everything else, they handled things expertly, or developments went their way. Republicans had a bright candidate, but one who lacked the dexterity to handle a very challenging set of circumstances, and a party that was well out of touch with the demographic, generational, and ideological changes quietly transforming the electorate.
The emphasized lines make the bottom line point, in my opinion. “Tune it up” or continue to push the same tired line to an electorate that is transforming and you’ll see similar results the next time too. Deny it all you wish, “them’s the facts”.
What was it that Einstein said we should call trying the same thing over and over again while expecting different results?
The cultural corruption of entitlements should, by now, be well known. But it also is just as well known that our current system incentivizes the “Santa Claus” form of government vs. that of the night watchman. The end state is inevitable. It isn’t a matter of “if” but “when”.
“The more government takes in taxes, the less incentive people have to work. What coal miner or assembly-line worker jumps at the offer of overtime when he knows Uncle Sam is going to take sixty percent or more of his extra pay? Any system that penalizes success and accomplishment is wrong. Any system that discourages work, discourages productivity, discourages economic progress, is wrong.” – Ronald Reagan
You’d think that would be self-evident. Apparently it’s not. And if you doubt that, watch what happens next year as our “leaders” try to figure out how to get us to pay their way out of the mess they’ve made (and for which we’ve never, ever held them accountable).
Perhaps it comes as a surprise to some of our readers, but we are not a Republican or Conservative blog. We are a libertarian, or more precisely a Neo-libertarian blog. As it happens, this puts us far closer to the conservative end of the spectrum than the liberal end in most things, so I can see, what with our constant nagging about President Obama’s policy foolishness over the last four years, why many readers would think of us as conservatives. But we aren’t really.
Maybe that’s why Bryan’s suggestions seemed so off-putting to the conservatives who regular read us here. Oh, and the fact that Bryan, while he’s had posting privileges here for, well, a long time, doesn’t post all that much anymore. I wish he posted more, but apparently, he has a life. But he’s still got his name on the masthead. See? It’s over there on the sidebar, on the left.
It’s gonna stay there.
The thing is, if you’re a conservative—especially a social conservative, you just need to accept that pretty much all of us support gay marriage, are at least squishy on abortion law, etc., etc., so you’re not going to find this a congenial place, for the most part, on social issues.
So much for old business.
Now onto the the posts Bryan contributed over the last few days. As It happens, I have some thoughts on his ideas myself.
Immigration is a sticky issue. I think that Milton Friedman was right in that you cannot have both unrestricted immigration and a welfare state. If you try to have both, you will inevitably bankrupt the system completely. Which, now that I think about it, is at least a self-solving problem.
But that solution itself would cause…difficulty, so it’s best to avoid it.
In a perfect world, we wouldn’t have a very expansive welfare state and what of we did have would be off-limits to immigrants. That isn’t the situation we have, however, which makes unrestricted immigration difficult to deal with.
It’s even more troubling when you realize that we have a set of challenges that make any immigration difficult to deal with at the present time.
There has been a distinct cultural shift in the way we deal with immigrants, in terms of our willingness to assimilate them into the American culture. For instance, when I was a child, immigrant children were expected to learn English, and conform to mainstream American culture. Essentially, immigrants were told—often in no uncertain terms—that we didn’t care how they did things in Kaplokistan, they were in America and they would do things our way. The message, from every level of society, was that if their original country was such a great place, they’d still be there. The result was that the children of immigrants were quite keen to assimilate, and mostly did so.
But we don’t do that any more. We’re now ever so sensitive to their cultural concerns, that we don’t try to assimilate them at all. We fear offending their delicate cultural sensitivities. As a result, the assimilation takes place at a much slower rate.
For example, here in southern California, we provide official voting ballots in somewhere around 100 different languages. Let me just state something that should be obvious: If you cannot vote in the English language, you shouldn’t be voting. Or, dare I say it, even be a citizen. If you can’t even be troubled to learn the dominant language of our popular culture, how in the world can you grasp the essentials of our political culture and principles?
This is compounded by the fact that today’s immigrants come from a vastly different political culture than those of a century ago. Today’s immigrants come from countries with an explicitly socialist political culture, which is decidedly not the case of immigrants who came to the US prior to the 1920s. Prior to that time, most immigrants came from monarchies with an intensely class-based structure, no middle class to speak of, and no possibility for social mobility. They come from countries where their social status was determined by the class they were born in, and they came here to escape both grinding poverty, and a class structure that made escaping that poverty extraordinarily difficult.
Today’s immigrants, thanks to the USSR’s pervasive influence in the 3rd world in the 50s-70s, have grown up with a socialist political world-view. They will naturally be prone to gravitate to the Democratic Party. Certainly, some portion will come here to escape socialism, but most probably don’t think too deeply about politics, and simply accept the socialist view of activist government they’ve been taught all their lives. When they get here, they find a political party that also accepts that political world-view, so naturally they gravitate towards it. Prior to the 1920′s, they would not have.
So I don’t think you can point to unrestricted immigration in the 19th century and draw too many parallels to how such a policy might work today. Both the original political culture of the immigrant, and the American political culture they find on arrival here, are completely different than they were a century ago.
And, of course, I also think about how California has fared with the massive immigration, a great portion of it illegal, of the last 30 years. The Central Valley has deteriorated almost to 3rd World status, with a permanent underclass of Mexican laborers who have essentially become modern-day helots, rampant property crime, deteriorating public services, and terrible poverty.
What lessons do we learn from all that?
I honestly don’t know how to approach entitlement reform. Maybe Bryan’s suggestion has merit, but I simply don’t know. We’ve told every person in the country that they have a defined-benefits pension, and, though people my age and younger don’t really believe Social Security will be there for us, We’ve spent all our working lives paying into it. We certainly feel we’re owed something for it. We had a Deal. You can’t just break the Deal.
And here is the real, non-obvious reason why you can’t break that Deal: We don’t have a stable currency. As a result, we simply cannot safely save for retirement.
Let me explain.
When the US was on the gold standard, you could simply stuff money into your mattress. In fact, a lot of people did. And the reason they could was that their money retained its purchasing power. Every dollar bill was a receipt for your real money. Every banknote said, "The US Treasury will pay the bearer X dollars." If you took a dollar bill into the Federal Reserve Bank of New York, slapped it on the counter, and said give me my money, a servitor would take your dollar, nip back to the vault, and return with a little bag containing 1/35oz of gold, or 1/16oz of silver. Today, your dollar bill is a receipt for nothing. It’s worth whatever the US government says it’s worth at any given time.
And, especially since 1973, it’s been worth less and less every year. Since 1970, the price of housing has risen 1050%. A savings account at a bank doesn’t pay an interest rate that keeps up with inflation. So, with a fiat currency that is constantly debased, that leaves very few savings options.
Essentially, to make a return greater than inflation, the county has been forced into the stock market for investment. But what happens if the market crashes? You lose a large portion of your saved investment. If you have several years to make it up, well, good. But what if it happens when you’re close to retirement? Well, you say, of course, you have to find safer investments like tax-free munies or something. And you should allocate your portfolio wisely, etc., etc.
But most people don’t want to do that. And they don’t want to learn all sorts of investment arcana. They want to save, do so safely, and not have inflation eat away all of their savings. Social Security does that, from their point of view, and it doesn’t make them live in fear that some unforeseen market event will eat up their hard-won savings.
That’s why so many people are opposed to Social Security privatization. They’re afraid of market investment, and are especially so seeing the roller-coaster rise the market’s been on since 2000.
But they have no safe option for saving that keeps pace with inflation.
Not having a stable currency forces people into riskier and harder-to-understand investments, and people don’t want to mortgage their future to investments that are risky and hard to understand.
Social Security was easy to understand, and it at least gave the illusion of security, no matter what the reality was.
A reliable, stable currency would make entitlement reform a lot easier, because it would vastly reduce the fear of inflation eating away at their retirement.
Social issues are the hot button with a significant portion of the GOP. I’m not entirely sure that if the GOP abandons social issues they’d be able to attract enough people from the Democrats to make up a viable political party, by which I mean one that has a shot at winning nationally. I don’t think that the Democrats have enough of a fiscally conservative, socially liberal electoral base to attract to the new, socially agnostic GOP.
The reality is, though, that when it comes to politics, the culture is determinative on the outcomes of social issues.
It doesn’t get much play, but, as it happens, according to polls—which as we know from the last election are pretty accurate—a slight majority of the electorate is actually pro-life. You wouldn’t know it from watching the news, but somehow, over the last decade, pro-choice has become the minority opinion in the country. Presumably, if that trend continues—and there’s no guarantee it will—Roe v. Wade will be overturned. Maybe. I mean, just because people are generally pro-life, it doesn’t mean that women don’t want to have abortion as an option. Just in case. Maybe it doesn’t get overturned at all, but abortion becomes culturally objectionable and we’ll get a lot less of it.
If Roe is overturned, then, abortion will become a state issue. Or, perhaps we’ll keep Roe, and just tighten down on abortions: limit them to the 1st trimester, and give exceptions for rape, incest, and the life of the mother, implement stricter parental controls, and that sort of thing. If it is overturned, states like California and New York will make it unambiguously legal. Some states will restrict it. Some will ban it completely.
Maybe that’s the answer for social issues. Leave them to the states, and people will gravitate to the states where the social milieu is more congenial to them. But that will be difficult to do now that we’ve cast all social issues in terms of rights.
I think that was a mistake, but here we are.
The gay marriage people say they have a right to marry. OK. Then why don’t polygamists have a right to do so as well? Once you’ve cast an argument in terms of rights, you’ve started wielding a hammer, not a scalpel, to solve your social problems. If gays have a right to marry, then why doesn’t another group of consenting adults have that right? How do you draw that line in terms of rights?
We forced the Mormon religion to de-legitimize polygamy in order for Utah to become a state. If adults have the right to order their relationships as they choose, then how was that legitimate? How is it legitimate, in terms of rights, to forbid close relatives to marry?
Rights are a pretty blunt instrument.
But how does letting gays get married somehow damage marriage as an institution? I guess I don’t understand that. I get that marriage is important, and I get why it’s important. But, it’s not so important, I guess, that we want to make divorce difficult. Which is, after all, why more than half of marriages end in it. Oh, and by the way, aren’t something like half of the kids born today, born out of wedlock?
Something’s going on with marriage today, and it’s mainly not good, but it doesn’t seem to have much to do with gay people.
Here’s a couple of realities to think about, though:
- We’re about 30 or 40 years behind Europe in turning into a post-Christian culture. You wanna know the culture your grandkids will grow up in? Look at the Netherlands or Britain.
- With Obama’s re-election, there’s an excellent chance that 1 or two conservative justices will be replaced by Obama. That means Roe v. Wade will probably be around for another 20 years, and who knows what the culture will think about it then?
Ultimately, the place to fight social issues doesn’t seem to be in politics, though. If you want to win on social issues, you have to to win the culture. If you can’t get a cultural consensus, you will never get a political one.
That seems to me to imply that conservatives should be battling not in Washington, DC, but in Hollywood, and in the Media, and in their local schools and colleges. The Left has made a largely successful march through the country’s cultural institutions, taken them over, and are shaping it to their liking. Conservatives have spent the last 4 decades unsuccessfully trying to take over the Supreme Court. Meanwhile, the Left has turned education into a 16-year commie indoctrination course, topped off by Continuing Education in socialism from TV, news media, and movies.
Maybe conservatives should be thinking about how to win the culture. If they do that, the politics will ineluctably follow. The reverse, however, is simply not true.
I already mentioned that marriage, kids, and a mortgage are very strong indicators of conservatism. Here’s a straightforward causal explanation: when you’re invested in something, you don’t want it to be taken from you, and you’re skeptical of starry-eyed meddlers doing anything that might threaten it. Probably the best thing done for the cause against gun control was teaching others how to use and maintain a firearm: once people own one, it sharpens the mind to cut through any argument for taking it away.
But a gun is a small investment compared to a committed and intimate relationship, custody of children, and homeownership. A dollar taxed is one that you can’t spend on your family when they want something, a dollar borrowed is one that your kids will pay back, and that meddler on TV is rolling the dice with a major part of your life.
In the case of immigration, Hispanics are already primed to be conservative because they’re already invested. With gay marriage, you have a group trying awfully hard to get more invested.
The conservative argument for embracing gay marriage is that marriage seems to be a fine institution that benefits even people who can’t have children together, and that it may strengthen the institution and the country to expand the institution so that a nontrivial minority of the population is on the inside trying to protect it rather than on the outside where their exclusion leads to thorny political issues of respect and tribalism.
Another conservative argument is that if gay marriage is politically inevitable, conservatives should proactively move through legislation to ensure that it goes smoothly without infringing on other freedoms (like those of association and contract), rather than allow this to play out entirely in the courts or in a referendum. If conservatives keep trying to board the windows, more stuff is going to end up broken than if they just opened the door.
As with immigration and Hispanics, marriage may not be gays’ top priority, but it matters, and the way Republicans approach and discuss the issue can signal that “you’re not one of us,” which is poison for coalition-building.
The flip side of that coin doesn’t have to be pandering; given the consciousness of gay communities about targeted violence and bullying, it’d be awesome if conservatives taught more gays how to use and maintain firearms.
After the election, Righty circles are naturally engaging in some soul-searching, finger-pointing, and bickering. Some of this is unproductive venting, but it’s also the start of the process of working out how to move on and improve, and there’s no time to waste.
My conversations with fellow Righty operatives and bloggers have spurred me to suggest several ways Republicans could simultaneously make the party more attractive (or less repulsive) to voters and achieve more conservative results. This post is about immigration and reversing the trend of Hispanics rapidly abandoning the GOP; the next is about gay marriage; and the final post is about entitlement reform.
First, let’s dispense with the notion agreed upon by many on the Right: seal the border first, so that whatever follows is more controlled and orderly. This is an expensive fantasy. Conservatives need to apply their skepticism of huge, complex, market-distorting government plans to every issue surrounding immigration, starting with any plan to spend tens of billions of dollars on thousands of miles of fence, surveillance, unionized government employees, and a verification system forced on every employer in the country.
It’s a joke that the Republican Party, which is practically defined by marriage, babies, and mortgages, holds at arm’s length a whole demographic (Hispanics, especially foreign-born) that tends to be more religious, marry younger and longer, and have larger families than the average American voter.
Mass immigration could work for the GOP if the GOP went with the tide instead of trying to stop it.
- If Republicans want school choice, they should have natural allies among those who are religious, have large families, and see their children suffer under the worst public schools. When you hear complaints that Hispanic immigrants don’t speak English, suggest vouchers and education savings accounts for private-school English language instruction.
- If Republicans want to revive farms and stop the population drain from rural areas, make legitimate cheap labor more available: open up a bunch of farm worker visas.
- If Republicans want to cut the cost of new housing so that young people can form households and families, make legitimate cheap labor available for that too. Heck, why not try to break various trade unions by inviting enough skilled immigrants to swamp or bypass their system?
- So the entitlement system is a problem? Yeah, Milton Friedman famously said you can’t simultaneously have free immigration and a welfare state. Shouldn’t the Republican response be “Bring on free immigration“? If math dooms Medicaid and the subsidized industrial-age hospital model, why not make the math even harder?
- Conservatives have longed to shift taxes away from production and toward consumption. Nobody wants to remove labor tax wedges (AHEM: the payroll tax) as much as someone in a labor-intensive business, the kind that tends to thrive when there’s a lot of cheap labor available. That goes for both employers and the employees whose compensation is tilted toward wages rather than benefits; we know it suppresses the Hispanic savings rate. And the payroll tax, of course, helps to maintain the accounting fiction that SocSec and Medicare are like savings.
Now, about the security problem: is it easier to pick out a genuine security threat in the crowd if everyone just has to pass a security check, or if hundreds of thousands of people are trying to cross the border undetected because the only legal route is a seven-year byzantine process?
Heather Mac Donald at NRO offers a potential counter-argument: Hispanics are more suspicious of Republicans for supporting class warfare than for opposing immigration according to a poll (from March 2011), and a majority favor gay marriage, so they’re not such a conservative bunch. But:
- Immigration may not be most Hispanics’ top concern, but it isn’t trivial either. And because politics is so tribal, there are many ways to alienate a group without actually disagreeing on policy – many of which Republicans blunder into when discussing immigration.
- Republicans shouldn’t cede the class warfare argument either: it wouldn’t hurt if the party focused more on the poor, as Mac Donald’s colleague Kevin D. Williamson exhorts the GOP to do. If you’re a small-government type who reads the previous sentence as a plea to compromise on principle, that reaction is part of the problem.
- Finally: social issues. Mac Donald points out that a majority of Hispanics favor gay marriage. I’ll argue in my next post that conservatives should proactively embrace gay marriage, which should resolve this issue nicely.