New Deal 2.0

The deep roots of the war on contraception

The uproar over Obama's decision stems from tensions between Democrats and Catholics that date back to FDR and LBJ

(Credit: Library of Congress/The White House)
This piece originally appeared on New Deal 2.0.

Republicans for Planned Parenthood last week issued a call for nominations for the 2012 Barry Goldwater award, an annual prize awarded to a Republican legislator who has acted to protect women’s health and rights. Past recipients include Maine Senator Olympia Snowe, who this week endorsed President Obama’s solution for insuring full coverage of the cost of contraception without exceptions, even for employees of religiously affiliated institutions. And that may tell us all we need to know about why President Obama has the upper hand in a debate over insurance that congressional Tea Partiers have now widened to include anyone who seeks an exemption.

It’s a long time ago, but it is worth remembering that conservative avatar Goldwater was in his day an outspoken supporter of women’s reproductive freedom — a freethinker who voted his conscience over the protests of Catholic bishops and all others who tried to claim these matters as questions of conscientious liberty and not sensible social policy. With Goldwater on his side, Obama sees a clear opening for skeptics wary of the extremism that has captured Republican hopefuls in thrall to the fundamentalist base that controls the GOP presidential primary today. Holding firm on family planning — even if it means taking on the Catholic hierarchy and other naysayers by offering a technical fix that would have insurers cover costs instead of the churches themselves — is a calculated political strategy by the Obama campaign, not a blunder as it has been characterized by many high powered pundits, including progressives like Mark Shields of PBS and E.J. Dionne of the Washington Post.

Recent public opinion polling on the subject is worth reconsidering. For years, it has been perfectly clear that a substantial majority of Americans see the value of expanding access to contraception and reliable sex education as essential tools to prevent unwanted pregnancy and abortion and to help women balance the competing demands of work and family. But unlike a zealous minority on the other side, these moderates have not necessarily privileged these social concerns over important questions of economics or national security that mattered more to them at election time.

That’s what seems to be changing. With his now-famous “nope, zero” response last spring, President Obama simply shut down Republicans in Congress who wanted to defund family planning as part of a deal to reduce the federal deficit. The action elicited a sudden surge in his popularity, especially in the highly contested demographic of women voters between the ages of 30 and 49 who voted for him in 2008 but wound up frustrated by failed promises and disappointing economic policies. Campaign polling has since uncovered a big opening for Obama with this group because they are furious over Republican social extremism. An astonishing 80 percent of them disapproved of congressional efforts to defund Planned Parenthood last spring. Polling among Catholics in response to last week’s controversy shows identical patterns, with 57 percent overall supporting the Obama “compromise” to ensure full coverage of contraception, according to reporting by Joe Conason in The National Memo, and cross-tabs demonstrating much higher margins of support from Catholic women, Latinos, and independent Catholic voters — all prime Obama election targets.

If the numbers are so persuasive, why then have Republican conservatives strayed so far from the greater tolerance of the Goldwater age? Why have they allowed the family planning issue to tie their candidates up in knots in 2012? The answer is in just how outsized the influence of a minority viewpoint can be on a political party, so long as it represents the base of that party’s support.

A bit of history going all the way back to Franklin Roosevelt’s New Deal is instructive. Back then, birth control was still illegal in this country, still defined as obscene under federal statutes that remained as a legacy of the Victorian era, even though many states had reformed local laws and were allowing physicians to prescribe contraception to married women with broadly defined “medical” reasons to plan and space their childbearing.

The movement’s pioneer, Margaret Sanger, went to Washington during the Great Depression, anticipating that Franklin Roosevelt, whose wife Eleanor was her friend and neighbor in New York, would address the problem and incorporate a public subsidy of contraception for poor women into the safety net the New Deal was constructing. What Sanger failed to anticipate, however, was the force of the opposition this idea would continue to generate from the coalition of religious conservatives, including urban Catholics and rural fundamentalist Protestants who held Roosevelt Democrats captive, much as they have today captured the GOP. It was Catholic priests, and not the still slightly scandalous friend of the First Lady, who wound up having tea at the Roosevelt White House.

The U.S. government would not overcome moral and religious objections until the Supreme Court protected contraceptive use under the privacy doctrine created in 1965 under Griswold v. Connecticut. That freed President Lyndon Johnson to incorporate family planning programs into the country’s international development programs and into anti-poverty efforts at home. As a Democrat still especially dependent on Catholic votes, however, Johnson only agreed to act once he had the strong bipartisan support of his arch rival Barry Goldwater’s endorsement and also the intense loyalty and deft maneuvering of Republican moderates like Robert Packwood of Oregon in the Senate. Packwood, in turn, worked alongside Ohio’s Robert Taft, Jr. in the House and a newcomer from Texas by the name of George H. W. Bush. Bush would remain a staunch advocate of reproductive freedom for women until political considerations during the 1980 presidential elections, when he was on the ticket with Ronald Reagan, accounted for one of the most dramatic and cynical public policy reversals in modern American politics.

Reagan had supported California’s liberal policies on contraception and abortion as governor, and Bush as Richard Nixon’s Ambassador to the United Nations had helped shape the UN’s population programs. But Republican operatives in 1980 saw a potential fissure in the traditional New Deal coalition among Catholics uncomfortable with the new legitimacy given to abortion after Roe v. Wade and white southern Christians being lured away from the Democrats around the issue of affirmative action and other racial preferences. Opposition to abortion instantly became a GOP litmus test, and both presidential hopefuls officially changed stripes.

Fast forward to 1992 and the election of Bill Clinton as America’s first pro-choice president, coupled with the Supreme Court’s crafting of a compromise decision in Planned Parenthood v. Casey that put some limits on access to abortion but essentially preserved the core privacy doctrine of Roe v. Wade. The perceived double threat of these political and judicial developments unleashed a new and even more powerful conservative backlash that took aim not only at abortion, but at contraception and sex education as well.

Exploiting inevitable tensions in the wake of profound social and economic changes occurring across the country as the result of altered gender roles and expectations — changes symbolized and made all the more palpable by Hillary Clinton’s activist role as First Lady — conservatives, with the support of powerful right-wing foundations and think tanks, poured millions of dollars into research and propaganda promoting family values and demonizing reproductive freedom, including emotional television ads that ran for years on major media outlets. A relentless stigmatizing of abortion, along with campaigns of intimidation and outright violence against Planned Parenthood and other providers, had a chilling effect on politicians generally shy of social controversy. And Bill Clinton’s vulnerability to charges of sexual misconduct left his administration and his party all the more defensive.

Since the welfare reform legislation of 1996, aptly labeled a “Personal Responsibility Act,” not only has access to abortion been curtailed, but funds for family planning programs at home and abroad have been capped. Hundreds of millions of dollars have been allocated to the teaching of sexual abstinence, rather than more comprehensive approaches to sex education. Just as tragically, U.S. programs addressing the crisis of HIV/AIDS — admirably expanded during the presidency of George W. Bush — were nonetheless made to counsel abstinence and oppose the use of condoms and other safe sex strategies, leaving women and young people all the more vulnerable to the ravages of the epidemic.

Empirically grounded studies over and over again undermined the efficacy of these approaches, which also flew in the face of mainstream American viewpoints and basic common sense. With Barack Obama’s election they have largely been revoked, enflaming the conservative base that put them in place and has lived off the salaries supported by government funding for faith-based social policy.

Even more disheartening to conservative true believers is the promise that the Affordable Care Act will vastly expand access to contraception by providing insurance coverage for oral contraceptives. This guarantee, endorsed by all mainstream health advocates, also includes emergency contraception, popularly known as the morning-after pill, that holds the promise of further reducing unwanted pregnancy and abortion and was meant to offer common ground in an abortion debate long defined by a clash of absolutes. The strong dose of ordinary hormones in emergency contraception act primarily by preventing fertilization, just like daily contraceptive pills, but in rare instances may also disable a fertilized egg from implanting by weakening the uterine lining that it needs for sustenance, causing opponents to vilify it as an abortifacient.

Supporting the Obama policy changes, on the other hand, is a new generation of progressive activists in reproductive health and rights organizations, energized by the intensity of the assaults against them, and now well-armed to educate and activate their own supporters by using traditional grassroots strategies and more sophisticated social networking. No institution has been more important in this effort than Planned Parenthood, with its vast networks of affiliates and supporters in every state, millions more supporters online, and a powerful national political and advocacy operation based in Washington D.C. that has been put to use to great effect in recent months.

The strength of the Planned Parenthood brand, coupled with the organization’s demonstrated ability to rally hundreds of thousands of supporters when it is attacked, has helped overcome traditional political reticence on reproductive justice issues. The Planned Parenthood Action Fund is already out with a strong new appeal warning politicians that women are watching. “Enough is enough. Back off on birth control,” is the new advocacy mantra.

Mindful of the numbers — and with the added ballast of what now amounts to a daily drumbeat of progressive television talk and comedy that delights in pillorying Republican prudery — Democrats are intensifying their resolve to take on this fight. Two things we can be sure of: Whoever emerges from the bloodbath of the GOP contest will try and backtrack from the birth control extremism of the primary. And Obama supporters, backed up by the advocacy community, will in turn stand ready to pounce on this inevitable flip-flopping.

Both sides may well summon the spirit and words of Barry Goldwater, who cautioned against allowing faith-based extremism to gain control of the Republican Party. “Politics and governing demand compromise,” he told John Dean, who reports on the conversation in his 2006 book, “Conservatives Without Conscience.”But these Christians believe they are acting in the name of God, so they can’t and won’t compromise. I know. I’ve tried to deal with them.”

Ellen Chesler is a Senior Fellow at the Roosevelt Institute and author of "Woman of Valor: Margaret Sanger and the Birth Control Movement in America."

Welcome to the 1 percent recovery

That elite sliver reaped 93 percent of the post-recession income gains. Is extreme inequality America's new normal?

Everett Collection via Shutterstock
This article originally appeared on New Deal 2.0.

There was a brief debate focused on the following question: Would the gains of the economy continue to accrue to the top 1 percent once the recovery started, or would they have a weak post-recession showing in terms of raw income growth as well as income share of the economy? The top 1 percent had a rough Great Recession. They absorbed 50 percent of the income losses, and their share of income dropped from 23.5 percent to 18.1 percent. Was this a new state of affairs, or would the 1 percent bounce back in 2010?

We finally have the estimated data for 2010 by income percentile, and it turns out that the top 1 percent had a fantastic year. The data is in the World Top Income Database, as well as Emmanuel Saez’s updated “Striking it Richer: The Evolution of Top Incomes in the United States” (as well as the excel spreadsheet on his webpage). Timothy Noah has a first set of responses here. The takeaway quote from Saez is, “the top 1 percent captured 93 percent of the income gains in the first year of recovery.”

First off, let’s get some absolute numbers here. Here is income by important percentiles, as well as the change from 2009-2010. I include the change with and without capital gains to make it clear that this is a phenomenon both in and independent of a strong stock market (click through for larger image):

The bottom 90 percent of Americans lost $127, the bottom 99 percent of Americans gained $80, and the top 1 percent gained $105,637. The bottom 99 percent is net positive for the year due to around $125 in average capital gains. They can take comfort in efforts by the right to set the capital gains tax to 0 percent, which would have netted them an additional couple dozen bucks.

(Also, just to show “the top 1 percent captured 93 percent of the income gains in the first year of recovery” isn’t some sort of stats juke, you can take $105,637 and divide it by the the number you get when you add $80 times 99 to $105,637 times 1. That number is 93 percent, which is the share of income gains the 1 percent took home.)

And if this wasn’t obvious, you can see the gains become quite high the farther you walk up the inequality ladder. When we discuss things like the Buffett Rule or taxing capital gains as ordinary income, it is important to see how top-heavy that capital gains distribution actually is.

This should also be put in the historical frame of looking at 2002 onward. I’m going to normalize some percentiles by their average income in 2002 and show how they have moved going into and out of the recession. This takes the income distribution in 2002 as granted — and any movements from there on out reflect changes from that income. I’m going to exclude capital gains for this chart to show it’s a deeper phenomenon than the stock market, though the effects are the same in either case (click through for larger image):

The Great Recession dropped income for the bottom 99 percent by 11.6 percent, completely wiping out the meager gains of the Bush years. And crucially, while 2010 was a year of continued stagnation for the economy as a whole, the 1 percent began to show strong gains even when capital gains are excluded.

As you can imagine, this has increased the percentage of the economic pie that the top 1 percent takes home. As Saez notes, “excluding realized capital gains, the top decile share in 2010 is equal to 46.3 percent, higher than in 2007.”

There are two things worth mentioning. There’s an interesting debate within left-liberal circles about whether or not elite economic interests benefit from a weak recovery, benefit more from a strong recovery, are vaguely indifferent to the United States economy, are impotent during the recession, or are more interested in pursuing other agendas during the instability caused by mass unemployment. These numbers are certainly a point for the argument that the rich are doing just fine, and to whatever extent they’d be doing better with more robust growth and employment, it isn’t putting a damper on their earnings.

It’s also worth mentioning that, pre-recession, inequality hadn’t been that high since the Great Depression, and we are quickly returning to that state. It’s important to remember that a series of choices were made during the New Deal to react to runaway inequality, including changes to progressive taxation, financial regulation, monetary policy, labor unionization, and the provisioning of public goods and guaranteed social insurance. A battle will be fought over the next decade — it’s already been fought for the past three years — on all these fronts. The subsequent resolution will determine how broadly shared prosperity is going forward and whether our economy will continue to be as unstable as it has been.

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Mike Konczal is a Fellow at the Roosevelt Institute.

The hypocrisy of Wall Street “capitalism”

Chase's CEO sneers about the success of banks vs. media groups, but which industry actually practices capitalism?

Jamie Dimon (Credit: AP)
This piece originally appeared on New Deal 2.0.

The phrase “Wall Street” is evocative in American culture. For generations, it has referred to the showcase of American capitalism: our financial services system that ensured the efficient use of funds by channeling capital to its most productive use. Indeed, the governing ethos in America is that Wall Street is the heart and soul of our capitalist economy.

As I have written before, capitalism involves four basic principles: absolute responsibility for anything and everything that happens to your company (i.e. total accountability), equal justice under the law, compensation based on the real value created for society, and competition, which involves failure and what is often called creative destruction.

The CEO of JPMorgan Chase, Jamie Dimon, has repeatedly touted the success of his efforts and disparaged critics. Earlier this week he compared compensation in the banking industry to the struggling media world, suggesting that the banking industry was far more successful. In speaking to journalists, according to Bloomberg, he noted, “Worse than that, you don’t even make any money… [while] we make a lot of money.”

Mr. Dimon is right. He and his colleagues are successful. But the real question is this: What are they successful at? By almost any criteria, the banks operate under rules that are so far from capitalism as to be unrecognizable. Let’s take Mr. Dimon’s comparison of the media industry and the banking industry further.

Both industries have been affected by unforeseen events. The Internet has undermined the viability of innumerable media businesses, leading to bankruptcies, changing business models and intense competition for advertiser and subscriber dollars. In the face of these changes, industry participants have been forced to adapt or die. The forces of creative destruction, which are central to capitalism, have operated with an unforgiving ferocity. Formerly dominant entities have been forced to declare bankruptcy, while new media competitors and business models emerge on a seemingly daily basis.

In contrast, the banks argued that TARP was warranted because the economic tsunami of 2008 was unforeseeable. One of the essential functions of a financial institution is to manage risk. The majority of our large institutions failed entirely in this central responsibility as the economic crisis struck. In effect, many of our leading financial services firms were (and often continue to be) led by such poor businesspeople that if the principles of capitalism were enforced they would be out of business. My friends who are media entrepreneurs in Silicon Valley actually laugh when they hear the “we should not be responsible because this was not foreseeable” claims from the bankers. Every entrepreneur knows that they must make payroll each week or they are bankrupt.

At the same time, no one in Washington seriously believes the too big to fail legislation in Dodd-Frank will ever work. Inevitably, as in the case of AIG, counter-parties will declare that they will suffer irreparable harm if one of our leading banks is allowed to fail. I have come to call this “the Washington wink.” You ask a federal official if too big to fail legislation will work, they dutifully say of course it will. However, the “of course” is inevitably accompanied by a knowing wink.

In another divergence, the government has not subsidized media businesses. The banks may be showing profits, but they are on government life support. These so-called zombie banks can borrow from the Federal Reserve at almost no cost, and a long list of government initiatives have served as additional “stealth” bailoutsof the banks. In the absence of this government support, would the banking industry still be successful? If media companies could borrow funds at almost no costs, I suspect their balance sheets and profits would be dramatically enhanced.

Capitalism is built on the idea that compensation and profits reflect the relative contribution an individual or firm makes to the total wealth of a society. Real societal wealth is anything that can be consumed or experienced. Profits are an accounting proxy meant to measure wealth. As I have written before, this proxy has failed miserably with regard to the banking industry. Given the loss of real societal wealth that accompanied the economic crisis as a result of poor bank management, the employment crisis, and the ongoing support the industry needs from the government, there is only one possible conclusion: at this moment the financial services industry is far more of a destroyer of real wealth than a wealth creator.

Meanwhile, media companies don’t profit by repeatedly breaking the law. The lack of enforcement against Wall Street undermines our democracy and capitalism, and is effectively another form of stealth government support for the industry. As noted here, JP Morgan Chase (like several of the large banks) is in the middle of a host of potential scandals. In a true capitalist economy, the government would enforce the law to prevent repetitive malfeasance. The executives leading a firm that repeatedly violated the law would be held accountable by the firm’s board for failure to exercise this basic responsibility to society.

Since the start of the economic crisis, the financial services industry has grown even more concentrated. It’s hard not to regard our largest financial services institutions as effective monopolies. Yet, to my knowledge, no investigation of antitrust issues related to the industry is underway. This is yet another stealth government subsidy. By contrast, in an earlier article I wrote about the misguided Justice Department investigation of e-book pricing, another area that is already suffering badly.

Yes, Mr. Dimon, you are a success. However, I would suggest that the success you so proudly proclaim reflects the loss of two of our nation’s most important values. The first is the failure of individuals and leaders to simply take responsibility for their actions and the actions of their companies. The second is that Wall Street, which should be the heart of American capitalism, has instead become the heart of a dysfunctional system that is destroying the nation’s wealth.

No, bankers are not capitalists. At every turn, they demonstrate that the last thing they want is the return of real capitalism to America.

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Bruce Judson is Entrepreneur-in-Residence at the Yale Entrepreneurial Institute and a former Senior Faculty Fellow at the Yale School of Management.

The rise of the zombie candidate

Super PACs have made it possible for no-shot hopefuls like Gingrich, Perry and Santorum to run indefinitely

(Credit: AP)
This article originally appeared on New Deal 2.0.

Robert Farmer, a legendary Democratic fundraiser of the 1980s and 1990s, once described how presidential campaigns ended: “People don’t lose campaigns. They run out of money and can’t get their planes in the air. That’s the reality.” Most candidates would run out of money long before they ran out of potential votes or plausible paths to victory. The winner of the nomination would often be the candidate with enough financial reserves to keep going when the others couldn’t afford jet fuel, and Farmer’s skill was in making sure that his candidates — Michael Dukakis in 1988 and Bill Clinton in 1992 — had that advantage.

That was the reality in 1992, but it’s not the reality today, especially on the Republican side. On the day after the New Hampshire primary, we now have a phenomenon in which a number of candidates who really have no possibility of winning their party’s nomination will keep going only because they can — because the money is there, either in their own campaign accounts or in a Super PAC committed to supporting the campaign, such as the pro-Newt Gingrich group into which casino billionaire Sheldon Adelson recently dumped $5 million.

So whereas in the 1990s we had candidates who died prematurely — they ran out of money while they still had a chance — we now have, in effect, zombie candidates. They’re alive and can spend money and attack Mitt Romney even though their actual political lives are over. Rick Perry is not going to be the Republican nominee for president. (He joins a short list of well-financed Texans, including John Connally in 1980 and Phil Gramm in 2000, who spent many millions of dollars to win one or fewer delegates to the Republican convention.) Newt Gingrich is not going to be the Republican nominee. Jon Huntsman, Ron Paul, Buddy Roemer, Rick Santorum — same deal. But they’ve got money and nothing to lose, and it seems they’ve all developed a personal distaste for Romney, so they will throw everything they’ve got at the nominee — including attacks on his “vulture capitalism” at Bain Capital — without regard to the consequences.

In the old system, money really mattered. It made or broke campaigns. Mostly it broke them. But it was the lack of money that really shaped the system. It was an invisible primary in which many candidates were excluded either before it started or soon into it. In the mid-1990s, Gingrich declared in a congressional hearing, “There’s not enough money in politics,” comparing political spending to the much larger marketing budgets for cereal and toilet paper. It was a declaration as shocking to the right-thinking reformers as the Sex Pistols’ version of “God Save the Queen,” but Gingrich was right at the time. The perennial gripe about “too much money in politics,” or its promise to “get money out of politics,” didn’t reflect reality — lack of money shaped politics as much as money itself. This was an era when losing presidential campaigns ran out of juice on $10 million or so, and candidates failed to mount a competitive race for Congress because they couldn’t raise $1 million.

But now the cliché of the past — that there’s too much money in politics — has become a reality. That’s probably going to be true on the Democratic side as well, definitely in the presidential race but probably also in many congressional contests. In a way, money matters less — more candidates will meet the threshold to be competitive. But it’s also moved to a scale where everything changes. Money becomes an end in itself. It shapes the behavior of campaign consultants, who can now become very, very rich. It’s increasingly disconnected from candidates themselves or the incentives that might make sense for them. And it reaches beyond the campaign itself — Gingrich is just one example of a candidate who is essentially in the race for money. His renewed prominence will generate speakers’ fees, and book and video sales, that will continue to fuel his lifestyle. Politics no longer comes at a cost; it’s a fundraising opportunity.

The post-Citizens United world of campaign finance obviously calls for some rethinking of solutions. My own reform preferences, which center on public financing, are best suited for a world in which lack of money matters as much as overwhelming money. And that’s still important. But we also need to confront the challenges of a world in which “too much money in politics” is not just a stale cliché, but the reality. A bunch of zombie candidates attacking Mitt Romney with money to burn might be welcome for Democrats, who can use their research and language in the fall, but it’s no more the ideal democratic process than was the old one, when candidates had to quit because they ran out of money, not votes. We need a campaign finance system that both limits the excesses and gives real candidates a means to be heard.

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Mark Schmitt is a Senior Fellow and Director of the Fellows Program at the Roosevelt Institute.

The moral crisis of modern capitalism

Even conservative idol William F. Buckley took issue with "executive plunder." Can fairness be restored?

(Credit: AP/Wikipedia)
This article originally appeared on New Deal 2.0.

The Occupy Wall Street protesters were not immune to the news of Steve Jobs’ passing. “A ripple of shock went through our crowd,” Thorin Caristo, a leader of the movement’s Web outreach, told the Associated Press. He later called for a moment of silence from the stubborn assembly at Zuccotti Park, and the 99 percent paid tribute to an exceptional member of the other club.

The gesture failed to move some. National Review’s Daniel Foster envisioned “viscera of a thousand heads exploding from the sheer force of cognitive dissonance,” while conservative columnist Michelle Malkin said that the protesters honoring Jobs’ life and work “without a trace of irony” provided the “teachable moment of the week.” The lesson, it seems, is that one cannot critique capitalism without also rejecting every single capitalist, a conclusion that is not only logically flawed but one that was famously rejected by William F. Buckley Jr., the ideological avatar of the modern conservative movement and a founder of the National Review.

In a column written just a few years before his death, Buckley condemned what he called the “institutional embarrassments” of capitalism, CEOs whose enormous compensation packages defy the gravitational pull of poor stock performance. Buckley was no egalitarian, and he drew a contrast between the “executive plunder” reaped by certain CEOs and the allowances that may be made for the likes of a Thomas Edison. Were such a person alive today, he said, “it would be unwise to cavil at any arrangement whatever made by a company seeking his services exclusively.”

Unwise, but more important, unwarranted, for at the heart of Buckley’s argument is an appeal to fairness. It does not seem unreasonable that a Thomas Edison, or a Steve Jobs, be paid a lot more than the rest of us. But when it comes to people who not only fail to create value, but actually supervise its destruction, it seems outrageous that they should make more over a long lunch than most people make in an entire year. Or, as Buckley puts it, “What is going on is phony. It is shoddy, it is contemptible, and it is philosophically blasphemous.”

To be clear, were he still with us today, Bill Buckley would not be occupying Wall Street. His aim was to save capitalism from itself, and he would likely chide the protesters for trying to save us from capitalism. Still, the sense of moral outrage that infuses his column — aptly titled “Capitalism’s Boil” — is not altogether different from that expressed by the weather-weary demonstrators. Doubtless, there are some who want to uproot capitalism altogether and replace it with some other system for distributing scarce goods, but one suspects that most who have turned out are simply looking to air the familiar grievances of the financial crisis (joblessness, soaring poverty, crushing debt) and shame those on Wall Street who cashed in on a crisis they helped create.

The same may be said with even greater confidence for the support the movement is enjoying across the country. It is not the case that a nation of closet communists has finally found a voice; rather, the protesters have come to embody a common sense that something is wrong with American capitalism — that the system simply isn’t working. In this respect, the focus on Wall Street is both apt and overbroad. Overbroad because, if you brush the complex instruments that precipitated the financial crisis, you won’t find the fingerprints of every banker on Wall Street. Apt because the success of the financial sector as a whole not only defies the experience of the last few years, but the story of the American middle class for over three decades.

Paul Krugman has famously called this period the Great Divergence. “We’re no longer a middle-class society, in which the benefits of economic growth are widely shared,” he said in the inaugural post of his New York Times blog. “Between 1979 and 2005 the real income of the median household rose only 13 percent, but the income of the richest 0.1 percent of Americans rose 296 percent.” During the same period, the percentage of the nation’s wealth held by the top 1 percent grew from 20.5 percent in 1979 to 33.8 percent in 2007. These trends have helped to set the U.S. apart from other developed countries in terms of wealth inequality. According to the CIA World Fact book, the U.S. currently ranks 39th in unequal wealth distribution, edging out Cameroon and Iran but just behind Bulgaria and Jamaica. By contrast, the U.K. comes in at 91st place, with Canada 102nd and Germany 126th.

The financial sector doesn’t tell the whole story of growing inequality, but it certainly plays a central role. As Simon Johnson described its meteoric rise in a 2009 essay for the Atlantic:

From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent. Pay rose just as dramatically. From 1948 to 1982, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007.

The inequality within the financial sector is more striking still, with the most successful managing directors taking home enough to buy and sell a brace of lowly associates. Again, the numbers speak for themselves: In 1986, the highest-paid CEO on Wall Street was John Gutfreund of Salomon Brothers, who made $3.1 million. In 2007, the CEO of Goldman Sachs, Lloyd Blankfein, made just short of $68 million.

To be sure, Americans have always had a high tolerance for economic inequality, particularly compared with their European peers. The quintessential American tale is still the rags to riches story, and for Democrats and Republicans alike, “class warfare” is an accusation to be rebutted, not an open call to arms. Indeed, as the unlikely tribute to Steve Jobs attests, even for those who are willing to roundly object to the growing gap between the very rich and the rest of us, the problem is not inequality per se, but giving a satisfactory account for it. As Bill Buckley well understood, economic systems have to give a moral account of who wins, who loses, and why, particularly insofar as those systems are shaped by democratic choices. It is not hard to give a compelling account for why someone like Steve Jobs grows far richer than the rest of us — his success tends to vindicate capitalism, not undermine it — but the same may not be said for the financial sector in general. The problem isn’t that the average banker doesn’t work hard (the hours are grueling) nor that his work isn’t essential to helping maintain a modern, civilized society (it is); the problem is that the same may be said for an E.R. nurse or a sixth grade teacher, and it isn’t immediately clear why one should make 10 times as much as the other.

Buckley said of the CEO pay packages he so despised that “extortions of that size tell us, really, that the market system is not working,” meaning that the free market, left to its own devices, does not allow for such gross distortions. This is certainly the account conservatives prefer when they try to explain Wall Street’s inordinate success. According to them, anti-competitive regulations, cheap money from the Fed, and the cozy relationship between the big banks and Washington have allowed the financial sector to prosper not because of capitalism, but despite it.

To liberals, this sounds ridiculous. After 30 years of lower taxes, freer trade, weaker unions, and a general trend toward deregulation, the idea that growing inequality and Wall Street’s exceptional success somehow defy the natural tendencies of capitalism is an astonishing exercise in wishful thinking. The forces of the free market alone may not explain these trends, but they seem hardly at odds.

Increasingly, the Occupy Wall Street movement has been faulted for not taking explicit sides in this dispute, but like Buckley in his column, the aim of their protests is not policy prescription, but moral persuasion. When your house is on fire, you don’t stand around wondering whether faulty wiring or an arsonist is to blame. You raise a hue and cry until your neighbors fill the street.

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John Paul Rollert is a doctoral student at the Committee on Social Thought at the University of Chicago.

Was Planned Parenthood’s founder racist?

Cain is hardly the first abortion foe to smear Margaret Sanger with such accusations. Here's the real story

(Credit: Wikipedia/AP)
This piece originally appeared on New Deal 2.0.

Birth control pioneer Margaret Sanger is back in the news this week thanks to GOP presidential candidate and abortion rights opponent Herman Cain, who claimed on national television that Planned Parenthood, the visionary global movement she founded nearly a century ago, is really about one thing only: “preventing black babies from being born.” Cain’s outrageous and false accusation is actually an all too familiar canard — a willful repetition of scurrilous claims that have circulated for years despite detailed refutation by scholars who have examined the evidence and unveiled the distortions and misrepresentations on which they are based (for a recent example, see this rebuttal from The Washington Post’s Glenn Kessler).

It’s an old tactic. Even in her own day, Sanger endured deliberate character assassination by opponents who believed they would gain more traction by impugning her character and her motives than by debating the merits of her ideas. But when a presidential candidate from a major U.S. political party is saying such things, a thoughtful response is necessary.

So what is Sanger’s story?

Born Margaret Louisa Higgins in 1879, the middle child of a large Irish Catholic family, Sanger grew into a follower of labor organizers, free thinkers and bohemians. Married to William Sanger, an itinerant architect and painter, she helped support three young children by working as a visiting nurse on New York’s Lower East Side. Following the death of a patient from a then all-too-common illegal abortion, she vowed to abandon palliative work and instead overturn obscenity laws that prevented legal access to safe contraception.

Sanger’s fundamental heresy was in claiming every woman’s right to experience her sexuality freely and bear only the number of children she desires. Following a first generation of educated women who had proudly forgone marriage in order to seek fulfillment outside the home, she offered birth control as a necessary condition to the resolution of a broad range of personal and professional frustrations.

The hardest challenge in introducing Sanger to modern audiences, who take this idea for granted, is to explain how absolutely destabilizing it seemed in her own time. As a result of largely private arrangements and a healthy trade in condoms, douches and various contraptions sold under the subterfuge of feminine hygiene, birth rates had already begun to decline. But contraception remained a clandestine and delicate subject, legally banned under obscenity statutes, and women were still largely denied identities or rights independent of their relationships with men, including the right to vote.

By inventing the term “birth control,” Sanger brought the practice — and by implication, women’s entitlement to sexual pleasure — out into the open and gave them essential currency. She went to jail in 1917 for opening a clinic to distribute primitive diaphragms to immigrant women in Brooklyn, New York, and appeal of her conviction led to a medical exception that licensed doctors to prescribe contraception for reasons of health. Under these constraints she built a network of independent local women’s health centers that eventually came together under the banner of Planned Parenthood. She also lobbied for the repeal of federal obscenity statutes that prevented the legal transport of contraception by physicians across state lines, which were struck down in federal court in 1936.

Sanger sought and won scientific validation for various contraceptive methods, including the birth control pill, whose development she supported and found the money to fund. In so doing, she helped lift the religious shroud that had long encased reproduction and secured the endorsement of contraception by physicians and social scientists. From this singular accomplishment, which some still consider heretical, a continuing controversy has ensued.

Sanger always remained a wildly polarizing figure, which clarifies the logic of her decision after World War I to jettison “birth control” and adopt the more socially resonant term “family planning.” This move was particularly inventive but in no way cynical, especially when the Great Depression brought attention to collective needs and the New Deal created a blueprint for bold public endeavors.

Some have falsely charged that Sanger defined family planning as a right of the privileged but a duty or obligation of the poor. To the contrary, she showed considerable foresight in lobbying to include universal voluntary family planning programs among public investments in social security. Had the New Deal incorporated basic public health and access to contraception, as most European countries were then doing, protracted conflicts over welfare and health care policy in the U.S. might well have been avoided.

Having long enjoyed the friendship and support of Franklin and Eleanor Roosevelt, Sanger also had ample reason to believe the New Dealers would fully legalize and endorse contraception as a necessary first step to her long-term goal of transferring responsibility and accountability for voluntary clinics to the public health sector. What she failed to anticipate was the force of opposition family planning continued to generate from a coalition of religious conservatives, including urban Catholics and rural fundamentalist Protestants, that held Roosevelt Democrats captive much as today’s evangelicals have captured the GOP.

The U.S. government would not overcome cultural and religious objections to public support of family planning through its domestic anti-poverty and international development programs until the late 1960s, after the Supreme Court protected contraceptive use under the privacy doctrine created in Griswold v. Connecticut. At this time, Planned Parenthood clinics became major government contractors, since there were few alternative primary health care centers serving the poor. Today, one in four American women funds her contraception through government programs, many of them still run by Planned Parenthood — a number likely to rise under the Affordable Care Act.

Sanger’s eagerness to mainstream her movement explains her engagement with eugenics, a then widely popular intellectual movement that addressed the manner in which human intelligence and opportunity is determined by biological as well as environmental factors. Hard as it is to believe, eugenics was considered far more respectable than birth control. Like many well-intentioned reformers of this era, Sanger took away from Charles Darwin the essentially optimistic lesson that humanity’s evolution within the animal kingdom makes us all capable of improvement if only we apply the right tools. University presidents, physicians, scientists and public officials all embraced eugenics, in part because it held the promise that merit would replace fate — or birthright and social status — as the standard for mobility in a democratic society.

But eugenics also has some damning and today unfathomable legacies, such as a series of state laws upheld in 1927 by an eight-to-one progressive majority of the U.S. Supreme Court, including Justices Oliver Wendell Holmes and Louis Brandeis. Their landmark decision in Buck v. Bell authorized the compulsory sterilization of a poor young white woman with an illegitimate child on grounds of feeble mindedness that were never clearly established. This decision, incidentally, was endorsed by civil libertarians such as Roger Baldwin of the ACLU and W.E.B. Dubois of the NAACP, both of whom Sanger counted among her supporters and friends.

For Sanger, eugenics was meant to begin with the voluntary use of birth control, which many still opposed on the grounds that the middle class should be encouraged to have more babies. She countered by disdaining what she called a “cradle competition” of class, race, or ethnicity. She publicly opposed immigration restrictions and framed poverty as a matter of differential access to resources like birth control, not as the immutable consequence of low inherent ability or character.

As a nurse, Sanger also understood the adverse impacts of poor nutrition, drugs, and alcohol on fetal development and encouraged government support of maternal and infant health. She argued for broad social safety nets and proudly marshaled clinical data to demonstrate that most women, even among the poorest and least educated populations, eagerly embraced and used birth control successfully when it is was provided.

At the same time, Sanger did on many occasions engage in shrill rhetoric about the growing burden of large families of low intelligence and defective heredity — language with no intended racial or ethnic content. She always argued that all women are better off with fewer children, but unfortunate language about “creating a race of thoroughbreds” and other such phrases have in recent years been lifted out of context and used to sully her reputation. Moreover, in endorsing Buck v. Bell and on several occasions the payment of pensions or bonuses to poor women who agreed to limit their childbearing (many of whom enjoyed no other health care coverage), Sanger quite clearly failed to consider fundamental human rights questions raised by such practices. Living in an era indifferent to the obligation to respect and protect individuals whose behaviors do not always conform to prevailing mores, she did not always fulfill it.

The challenge as Sanger’s biographer has been to reconcile apparent contradictions in her beliefs. She actually held unusually advanced views on race relations for her day and on many occasions condemned discrimination and encouraged reconciliation between blacks and whites. Though most birth control facilities conformed to the segregation mores of the day, she opened an integrated clinic in Harlem in the early 1930s. Later, she facilitated birth control and maternal health programs for rural black women in the South, when local white health officials there denied them access to any New Deal-funded services.

Sanger worked on this last project with the behind-the-scenes support of Eleanor Roosevelt and Mary McLeod Bethune, founder of the National Council for Negro Women and then a Roosevelt administration official. Their progressive views on race were well known, if controversial, but their support for birth control was silenced by Franklin’s political handlers — at least until he was safely ensconced in the White House for a third term, when the government rushed to provide condoms to World War II soldiers.

Sanger’s so-called Negro Project has been a source of controversy first raised by black nationalists and some feminist scholars in the 1970s and later by anti-abortion foes. Respecting the importance of self-determination among users of contraception, she recruited prominent black leaders to endorse the goal, especially ministers who held sway over the faithful. In that context, she wrote an unfortunate sentence in a private letter about needing to clarify the ideals and goals of the birth control movement because “we do not want the word to go out that we want to exterminate the Negro population.” The sentence may have been thoughtlessly composed, but it is perfectly clear that she was not endorsing genocide.

America’s intensely complicated politics of race and gender has long ensnarled Sanger and all others who have sought to discipline reproduction. As many scholars of the subject in recent years have observed, much of the controversy proceeds from the plain fact that reproduction is by its very nature experienced individually and socially at the same time. In claiming women’s fundamental right to control their own bodies, Sanger remained mindful of the dense fabric of cultural, political, and economic relationships in which those rights are exercised.

In most instances the policies Sanger advocated were intended to observe the necessary obligation of social policy to balance individual rights of self-expression with the sometimes contrary desire to promulgate and enforce common mores and laws. She may have failed to get the balance quite right, but there is nothing in the record to poison her reputation or discredit her noble cause. Quite the contrary.

The Reverend Martin Luther King, Jr. may have put it best in 1966, when he accepted Planned Parenthood’s prestigious Margaret Sanger Award and spoke eloquently of the “kinship” between the civil rights and family planning movements. Here is what he said, since it bears repeating:

There is a striking kinship between our movement and Margaret Sanger’s early efforts. She, like we, saw the horrifying conditions of ghetto life. Like we, she knew that all of society is poisoned by cancerous slums. Like we, she was a direct actionist — a nonviolent resister… She launched a movement which is obeying a higher law to preserve human life under humane conditions. Margaret Sanger had to commit what was then called a crime in order to enrich humanity, and today we honor her courage and vision; for without them there would have been no beginning.

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Ellen Chesler is a Senior Fellow at the Roosevelt Institute and author of "Woman of Valor: Margaret Sanger and the Birth Control Movement in America."

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