Re: A People's History of the United States: 1492-Present
Posted: Thu Oct 17, 2013 4:22 pm
PART 1 OF 2
21. CARTER-REAGAN-BUSH: THE BIPARTISAN CONSENSUS
Halfway through the twentieth century, the historian Richard Hofstadter, in his book The American Political Tradition, examined our important national leaders, from Jefferson and Jackson to Herbert Hoover and the two Roosevelts -- Republicans and Democrats, liberals and conservatives. Hofstadter concluded that "the range of vision embraced by the primary contestants in the major parties has always been bounded by the horizons of property and enterprise.... They have accepted the economic virtues of capitalist culture as necessary qualities of man.... That culture has been intensely nationalistic...."
Coming to the end of the century, observing its last twenty-five years, we have seen exactly that limited vision Hofstadter talked about -- a capitalistic encouragement of enormous fortunes alongside desperate poverty, a nationalistic acceptance of war and preparations for war. Governmental power swung from Republicans to Democrats and back again, but neither party showed itself capable of going beyond that vision.
After the disastrous war in Vietnam came the scandals of Watergate. There was a deepening economic insecurity for much of the population, along with environmental deterioration, and a growing culture of violence and family disarray. Clearly, such fundamental problems could not be solved without bold changes in the social and economic structure. But no major party candidates proposed such changes. The "American political tradition" held fast.
In recognition of this, perhaps only vaguely conscious of this, voters stayed away from the polls in large numbers, or voted without enthusiasm. More and more they declared, if only by nonparticipation, their alienation from the political system. In 1960, 63 percent of those eligible to vote voted in the presidential election. By 1976, this figure had dropped to 53 percent. In a CBS News and New York Times survey, over half of the respondents said that public officials didn't care about people like them. A typical response came from a plumber: "The President of the United States isn't going to solve our problems. The problems are too big."
There was a troubling incongruity in the society. Electoral politics dominated the press and television screens, and the doings of presidents, members of Congress, Supreme Court justices, and other officials were treated as if they constituted the history of the country. Yet there was something artificial in all this, something pumped up, a straining to persuade a skeptical public that this was all, that they must rest their hopes for the future in Washington politicians, none of whom were inspiring because it seemed that behind the bombast, the rhetoric, the promises, their major concern was their own political power.
The distance between politics and the people was reflected clearly in the culture. In what was supposed to be the best of the media, uncontrolled by corporate interest -- that is, in public television, the public was largely invisible. On the leading political forum on public television, the nightly "MacNeil-Lehrer Report," the public was uninvited, except as viewer of an endless parade of Congressmen, Senators, government bureaucrats, experts of various kinds.
On commercial radio, the usual narrow band of consensus, excluding fundamental criticism, was especially apparent. In the mid-1980s, with Ronald Reagan as President, the "fairness doctrine" of the Federal Communications Commission, requiring air time for dissenting views, was eliminated. By the 1990s, "talk radio" had perhaps 20 million listeners, treated to daily tirades from right-wing talk-show "hosts," with leftwing guests uninvited.
A citizenry disillusioned with politics and with what pretended to be intelligent discussions of politics turned its attention (or had its attention turned) to entertainment, to gossip, to ten thousand schemes for self-help. Those at its margins became violent, finding scapegoats within one's group (as with poor-black on poor-black violence), or against other races, immigrants, demonized foreigners, welfare mothers, minor criminals (standing in for untouchable major criminals).
There were other citizens, those who tried to hold on to ideas and ideals still remembered from the sixties and early seventies, not just by recollecting but by acting. Indeed, all across the country there was a part of the public unmentioned in the media, ignored by political leaders -- energetically active in thousands of local groups around the country. These organized groups were campaigning for environmental protection or women's rights or decent health care (including anguished concern about the horrors of AIDS) or housing for the homeless, or against military spending.
This activism was unlike that of the sixties, when the surge of protest against race segregation and war became an overwhelming national force. It struggled uphill, against callous political leaders, trying to reach fellow Americans most of whom saw little hope in either the politics of voting or the politics of protest.
The presidency of Jimmy Carter, covering the years 1977 to 1980, seemed an attempt by one part of the Establishment, that represented in the Democratic party, to recapture a disillusioned citizenry. But Carter, despite a few gestures toward black people and the poor, despite talk of "human rights" abroad, remained within the historic political boundaries of the American system, protecting corporate wealth and power, maintaining a huge military machine that drained the national wealth, allying the United States with right-wing tyrannies abroad.
Carter seemed to be the choice of that international group of powerful influence-wielders -- the Trilateral Commission. Two founding members of the commission, according to the Far Eastern Economic Review -- David Rockefeller and Zbigniew Brzeziuski -- thought Carter was the right person for the presidential election of 1976 given that "the Watergate-plagued Republican Party was a sure loser...."
Carter's job as President, from the point of view of the Establishment, was to halt the rushing disappointment of the American people with the government, with the economic system, with disastrous military ventures abroad. In his campaign, he tried to speak to the disillusioned and angry. His strongest appeal was to blacks, whose rebellion in the late sixties was the most frightening challenge to authority since the labor and unemployed upsurges in the thirties.
His appeal was "populist" -- that is, he appealed to various elements of American society who saw themselves beleaguered by the powerful and wealthy. Although he himself was a millionaire peanut grower, he presented himself as an ordinary American farmer. Although he had been a supporter of the Vietnam war until its end, he presented himself as a sympathizer with those who had been against the war, and he appealed to many of the young rebels of the sixties by his promise to cut the military budget.
In a much-publicized speech to lawyers, Carter spoke out against the use of the law to protect the rich. He appointed a black woman, Patricia Harris, as Secretary of Housing and Urban, Development, and a black civil rights veteran, Andrew Young, as ambassador to the United Nations. He gave the job of heading the domestic youth service corps to a young former antiwar activist, Sam Brown.
His most crucial appointments, however, were in keeping with the Trilateral Commission report of Harvard political scientist Samuel Huntington, which said that, whatever groups voted for a president, once elected "what counts then is his ability to mobilize support from the leaders of key institutions." Brzezinski, a traditional cold war intellectual, became Carter's National Security Adviser. His Secretary of Defense, Harold Brown, had, during the Vietnam war, according to the Pentagon Papers, "envisaged the elimination of virtually all the constraints under which the bombing then operated." His Secretary of Energy, James Schlesinger, as Secretary of Defense under Nixon, was described by a member of the Washington press corps as showing "an almost missionary drive in seeking to reverse a downward trend in the defense budget." Schlesinger was also a strong proponent of nuclear energy.
His other cabinet appointees had strong corporate connections. A financial writer wrote, not long after Carter's election: "So far, Mr. Carter's actions, commentary, and particularly his Cabinet appointments, have been highly reassuring to the business community." Veteran Washington correspondent Tom Wicker wrote: "The available evidence is that Mr. Carter so far is opting for Wall Street's confidence."
Carter did initiate more sophisticated policies toward governments that oppressed their own people. He used United Nations Ambassador Andrew Young to build up good will for the United States among the black African nations, and urged that South Africa liberalize its policies toward blacks. A peaceful settlement in South Africa was necessary for strategic reason; South Africa was used for radar tracking systems. Also, it had important U.S. corporate investments and was a critical source of needed raw materials (diamonds, especially). Therefore, what the United States needed was a stable government in South Africa; the continued oppression of blacks might create civil war.
The same approach was used in other countries -- combining practical strategic needs with the advancement of civil rights. But because the chief motivation was practicality, not humanity, there was a tendency toward token changes -- as in Chile's release of a few political prisoners. When Congressman Herman Badillo introduced in Congress a proposal that required the U.S. representatives to the World Bank and other international financial institutions to vote against loans to countries that systematically violated essential rights, by the use of torture or imprisonment without trial, Carter sent a personal letter to every Congressman urging the defeat of this amendment. It won a voice vote in the House, but lost in the Senate.
Under Carter, the United States continued to support, all over the world, regimes that engaged in imprisonment of dissenters, torture, and mass murder: in the Philippines, in Iran, in Nicaragua, and in Indonesia, where the inhabitants of East Timor were being annihilated in a campaign bordering on genocide.
The New Republic magazine, presumably on the liberal side of the Establishment, commented approvingly on the Carter policies: "... American foreign policy in the next four years will essentially extend the philosophies developed ... in the Nixon-Ford years. This is not at all a negative prospect.... There should be continuity. It is part of history...."
Carter had presented himself as a friend of the movement against the war, but when Nixon mined Haiphong harbor and resumed bombing of North Vietnam in the spring of 1973, Carter urged that "we give President Nixon our backing and support -- whether or not we agree with specific decisions." Once elected, Carter declined to give aid to Vietnam for reconstruction, despite the fact that the land had been devastated by American bombing. Asked about this at a press conference, Carter replied that there was no special obligation on the United States to do this because "the destruction was mutual."
Considering that the United States had crossed half the globe with an enormous fleet of bombers and 2 million soldiers, and after eight years left a tiny nation with over a million dead and its land in ruins, this was an astounding statement.
One Establishment intention, perhaps, was that future generations see the war not as it appeared in the Defense Department's own Pentagon Papers -- as a ruthless attack on civilian populations for strategic military and economic interests -- but as an unfortunate error. Noam Chomsky, one of the leading antiwar intellectuals during the Vietnam period, looked in mid-1978 at how the history of the war was being presented in the major media and wrote that they were "destroying the historical record and supplanting it with a more comfortable story ... reducing 'lessons' of the war to the socially neutral categories of error, ignorance, and cost."
The Carter administration clearly was trying to end the disillusionment of the American people after the Vietnam war by following foreign policies more palatable, less obviously aggressive. Hence, the emphasis on "human rights," the pressure on South Africa and Chile to liberalize their policies. But on close examination, these more liberal policies were designed to leave intact the power and influence of the American military and American business in the world.
The renegotiation of the Panama Canal treaty with the tiny Central American republic of Panama was an example. The canal saved American companies $1.5 billion a year in delivery costs, and the United States collected $150 million a year in tolls, out of which it paid the Panama government $2.3 million dollars, while maintaining fourteen military bases in the area.
Back in 1903 the United States had engineered a revolution against Colombia, set up the new tiny republic of Panama in Central America, and dictated a treaty giving the United States military bases, control of the Panama Canal, and sovereignty "in perpetuity." The Carter administration in 1977, responding to anti-American protests in Panama, decided to renegotiate the treaty. The New York Times was candid about the Canal: "We stole it, and removed the incriminating evidence from our history books."
By 1977 the canal had lost military importance. It could not accommodate large tankers or aircraft carriers. That, plus the anti-American riots in Panama, led the Carter administration, over conservative opposition, to negotiate a new treaty which called for a gradual removal of U.S. bases (which could easily be relocated elsewhere in the area). The canal's legal ownership would be turned over to Panama after a period. The treaty also contained vague language which could be the basis for American military intervention under certain conditions.
Whatever Carter's sophistication in foreign policy, certain fundamentals operated in the late sixties and the seventies. American corporations were active all over the world on a scale never seen before. There were, by the early seventies, about three hundred U.S. corporations, including the seven largest banks, which earned 40 percent of their net profits outside the United States. They were called "multinationals," but actually 98 percent of their top executives were Americans. As a group, they now constituted the third-largest economy in the world, next to the United States and the Soviet Union.
The relationship of these global corporations with the poorer countries had long been an exploiting one, it was clear from U.S. Department of Commerce figures. Whereas U.S. corporations in Europe between 1950 and 1965 invested $8.1 billion and made $5.5 billion in profits, in Latin America they invested $3.8 billion and made $11.2 billion in profits, and in Africa they invested $5.2 billion and made $14.3 billion in profits.
It was the classical imperial situation, where the places with natural wealth became victims of more powerful nations whose power came from that seized wealth. American corporations depended on the poorer countries for 100 percent of their diamonds, coffee, platinum, mercury, natural rubber, and cobalt. They got 98 percent of their manganese from abroad, 90 percent of their chrome and aluminum. And 20 to 40 percent of certain imports (platinum, mercury, cobalt, chrome, manganese) came from Africa.
Another fundamental of foreign policy, whether Democrats or Republicans were in the White House, was the training of foreign military officers. The Army had a "School of the Americas" in the Canal Zone, from which thousands of military leaders in Latin America had graduated. Six of the graduates, for instance, were in the Chilean military junta that overthrew the democratically elected Allende government in 1973. The American commandant of the school told a reporter: "We keep in touch with our graduates and they keep in touch with us."
And yet the United States cultivated a reputation for being generous with its riches. Indeed, it had frequently given aid to disaster victims. This aid, however, often depended on political loyalty. In one six-year drought in West Africa, 100,000 Africans died of starvation. A report by the Carnegie Endowment said the Agency for International Development (AID) of the United States had been inefficient and neglectful in giving aid to nomads in the Sahel area of West Africa, an area covering six countries. The response of AID was that those countries had "no close historical, economic, or political ties to the United States."
In early 1975 the press carried a dispatch from Washington: "Secretary of State Henry A. Kissinger has formally initiated a policy of selecting for cutbacks in American aid those nations that have sided against the U.S. in votes in the United Nations. In some cases the cutbacks involve food and humanitarian relief."
Most aid was openly military, and by 1975, the United States exported $9.5 billion in arms. The Carter administration promised to end the sale of arms to repressive regimes, but when it took office the bulk of the sales continued.
And the military continued to take a huge share of the national budget. When Carter was running for election, he told the Democratic Platform Committee: "Without endangering the defense of our nation or commitments to our allies, we can reduce present defense expenditures by about 5 to 7 billion dollars annually." But his first budget proposed not a decrease but an increase of $10 billion for the military. Indeed, he proposed that the U.S. spend a thousand billion dollars (a trillion dollars) in the next five years on its military forces. And the administration had just announced that the Department of Agriculture would save $25 million a year by no longer giving free second helpings of milk to 1.4 million needy schoolchildren who got free meals in school.
If Carter's job was to restore faith in the system, here was his greatest failure -- solving the economic problems of the people. The price of food and the necessities of life continued to rise faster than wages were rising. Unemployment remained officially at 6 or 8 percent; unofficially, the rates were higher. For certain key groups in the population -- young people, and especially young black people -- the unemployment rate was 20 or 30 percent.
It soon became clear that blacks in the United States, the group most in support of Carter for President, were bitterly disappointed with his policies. He opposed federal aid to poor people who needed abortions, and when it was pointed out to him that this was unfair, because rich women could get abortions with ease, he replied: "Well, as you know, there are many things in life that are not fair, that wealthy people can afford and poor people cannot."
Carter's "populism" was not visible in his administration's relationship to the oil and gas interests. It was part of Carter's "energy plan" to end price regulation of natural gas for the consumer. The largest producer of natural gas was Exxon Corporation, and the largest blocs of private stock in Exxon were owned by the Rockefeller family.
Early in Carter's administration, the Federal Energy Administration found that Gulf Oil Corporation had overstated by $79.1 million its costs for crude oil obtained from foreign affiliates. It then passed on these false costs to consumers. In the summer of 1978 the administration announced that "a compromise" had been made with Gulf Oil in which Gulf agreed to pay back $42.2 million. Gulf informed its stockholders that "the payments will not affect earnings since adequate provision was made in prior years."
The lawyer for the Energy Department who worked out the compromise with Gulf said it had been done to avoid a lengthy and costly lawsuit. Would the lawsuit have cost the $36.9 million dropped in the compromise? Would the government have considered letting off a bank robber without a jail term in return for half the loot? The settlement was a perfect example of what Carter had told a meeting of lawyers during his presidential campaign -- that the law was on the side of the rich.
The fundamental facts of maldistribution of wealth in America were clearly not going to be affected by Carter's policies, any more than by previous administrations, whether conservative or liberal. According to Andrew Zimbalist, an American economist writing in Le Monde Diplomatique in 1977, the top 10 percent of the American population had an income thirty times that of the bottom tenth; the top 1 percent of the nation owned 33 percent of the wealth. The richest 5 percent owned 83 percent of the personally owned corporate stock. The one hundred largest corporations (despite the graduated income tax that misled people into thinking the very rich paid at least 50 percent in taxes) paid an average of 26.9 percent in taxes, and the leading oil companies paid 5.8 percent in taxes (Internal Revenue Service figures for 1974). Indeed, 244 individuals who earned over $200,000 paid no taxes.
In 1979, as Carter weakly proposed benefits for the poor, and Congress strongly turned them down, a black woman, Marian Wright Edelman, director of the Children's Defense Fund in Washington, pointed to some facts. One of every seven American children (10 million altogether) had no known regular source of primary health care. One of every three children under seventeen (18 million altogether) had never seen a dentist. In an article on the New York Times op-ed page, she wrote:
Carter approved tax "reforms" which benefited mainly the corporations. Economist Robert Lekachman, writing in The Nation, noted the sharp increase in corporate profits (44 percent) in the last quarter of 1978 over the previous year's last quarter. He wrote: "Perhaps the President's most outrageous act occurred last November when he signed into law an $18 billion tax reduction, the bulk of whose benefits accrue to affluent individuals and corporations."
In 1979, while the poor were taking cuts, the salary of the chairman of Exxon Oil was being raised to $830,000 a year and that of the chairman of Mobil Oil to over a million dollars a year. That year, while Exxon's net income rose 56 percent to more than $4 billion, three thousand small independent gasoline stations went out of business.
Carter made some efforts to hold onto social programs, but this was undermined by his very large military budgets. Presumably, this was to guard against the Soviet Union, but when the Soviet Union invaded Afghanistan in 1979, Carter could take only symbolic actions, like reinstituting the draft, or calling for a boycott of the 1980 Moscow Olympics.
On the other hand, American weaponry was used to support dictatorial regimes battling left-wing rebels abroad. A report by the Carter administration to Congress in 1977 was blunt, saying that "a number of countries with deplorable records of human rights observance are also countries where we have important security and foreign policy interests."
Thus, Carter asked Congress in the spring of 1980 for $5.7 million in credits for the military junta fighting off a peasant rebellion in El Salvador. In the Philippines, after the 1978 National Assembly elections, President Ferdinand Marcos imprisoned ten of the twenty-one losing opposition candidates; many prisoners were tortured, many civilians were killed. Still, Carter urged Congress to give Marcos $300 million in military aid for the next five years.
In Nicaragua, the United States had helped maintain the Somoza dictatorship for decades. Misreading the basic weakness of that regime, and the popularity of the revolution against it, the Carter administration continued its support for Somoza until close to the regime's fall in 1979.
In Iran, toward the end of 1978, the long years of resentment against the Shah's dictatorship culminated in mass demonstrations. On September 8, 1978, hundreds of demonstrators were massacred by the Shah's troops. The next day, according to a UPI dispatch from Teheran, Carter affirmed his support for the Shah:
On December 13, 1978, Nicholas Gage reported for the New York Times:
In early 1979, as the crisis in Iran was intensifying, the former chief analyst on Iran for the CIA told New York Times reporter Seymour Hersh that "he and his colleagues knew of the tortures of Iranian dissenters by Savak, the Iranian secret police set up during the late 1950s by the Shah with help from the CIA." Furthermore, he told Hersh that a senior CIA official was involved in instructing officials in Savak on torture techniques.
It was a popular, massive revolution, and the Shah fled. The Carter administration later accepted him into the country, presumably for medical treatment, and the anti-American feelings of the revolutionaries reached a high point. On November 4, 1979, the U.S. embassy in Teheran was taken over by student militants who, demanding that the Shah be returned to Iran for punishment, held fifty-two embassy employees hostage.
For the next fourteen months, with the hostages still held in the embassy compound, that issue took the forefront of foreign news in the United States and aroused powerful nationalist feelings. When Carter ordered the Immigration and Naturalization Service to start deportation proceedings against Iranian students who lacked valid visas, the New York Times gave cautious but clear approval. Politicians and the press played into a general hysteria. An Iranian-American girl who was slated to give a high school commencement address was removed from the program. The bumper sticker "Bomb Iran" appeared on autos all over the country.
It was a rare journalist bold enough to point out, as Alan Richman of the Boston Globe did when the fifty-two hostages were released alive and apparently well, that there was a certain lack of proportion in American reactions to this and other violations of human rights: "There were 52 of them, a number easy to comprehend. It wasn't like 15,000 innocent people permanently disappearing in Argentina.... They [the American hostages] spoke our language. There were 3000 people summarily shot in Guatemala last year who did not."
The hostages were still in captivity when Jimmy Carter faced Ronald Reagan in the election of 1980. That fact, and the economic distress felt by many, were largely responsible for Carter's defeat.
Reagan's victory, followed eight years later by the election of George Bush, meant that another part of the Establishment, lacking even the faint liberalism of the Carter presidency, would be in charge. The policies would be more crass -- cutting benefits to poor people, lowering taxes for the wealthy, increasing the military budget, filling the federal court system with conservative judges, actively working to destroy revolutionary movements in the Caribbean.
The dozen years of the Reagan-Bush presidency transformed the federal judiciary, never more than moderately liberal, into a predominantly conservative institution. By the fall of 1991, Reagan and Bush had filled more than half of the 837 federal judgeships, and appointed enough right-wing justices to transform the Supreme Court.
In the seventies, with liberal justices William Brennan and Thurgood Marshall in the lead, the Court had declared death penalties unconstitutional, had supported (in Roe v. Wade) the right of women to choose abortions, and had interpreted the civil rights law as permitting special attention to blacks and women to make up for past discrimination (affirmative action).
William Rehnquist, first named to the Supreme Court by Richard Nixon, was made Chief Justice by Ronald Reagan. In the Reagan-Bush years, the Rehnquist Court made a series of decisions that weakened Roe v. Wade, brought back the death penalty, reduced the rights of detainees against police powers, prevented doctors in federally supported family planning clinics from giving women information on abortions, and said that poor people could be forced to pay for public education (education was not "a fundamental right").
Justices William Brennan and Thurgood Marshall were the last of the Court's liberals. Old and ill, though reluctant to give up the fight, they retired. The final act to create a conservative Supreme Court was President Bush's nomination to replace Marshall. He chose a black conservative, Clarence Thomas. Despite dramatic testimony from a former colleague, a young black law professor named Anita Hill, that Thomas had sexually harassed her, Thomas was approved by the Senate and now the Supreme Court moved even more decisively to the right.
With conservative federal judges, with pro-business appointments to the National Labor Relations Board, judicial decisions and board findings weakened a labor movement already troubled by a decline in manufacturing. Workers who went out on strike found themselves with no legal protection. One of the first acts of the Reagan administration was to dismiss from their jobs, en masse, striking air traffic controllers. It was a warning to future strikers, and a sign of the weakness of a labor movement which in the thirties and forties had been a powerful force.
Corporate America became the greatest beneficiary of the Reagan-Bush years. In the sixties and seventies an important environmental movement had grown in the nation, horrified at the poisoning of the air, the seas and rivers, and the deaths of thousands each year as a result of work conditions. After a mine explosion in West Virginia killed seventy-eight miners in November 1968 there had been angry protest in the mine district, and Congress passed the Coal Mine Health and Safety Act of 1969. Nixon's Secretary of Labor spoke of "a new national passion, passion for environmental improvement."
The following year, yielding to strong demands from the labor movement and consumer groups, but also seeing it as an opportunity to win the support of working-class voters, President Nixon had signed the Occupational Safety and Health Act of 1970. This was an important piece of legislation, establishing a universal right to a safe and healthy workplace, and creating an enforcement machinery. Reflecting on this years later, Herbert Stein, who had been the chairman of Nixon's Council of Economic Advisers, lamented that "the juggernaut of environmental regulation proved not to be controllable by the Nixon administration."
While President Jimmy Carter came into office praising the OSHA program, he was also eager to please the business community. The woman he appointed to head OSHA, Eula Bingham, fought for strong enforcement of the act, and was occasionally successful. But as the American economy showed signs of trouble, with oil prices, inflation, and unemployment rising, Carter seemed more and more concerned about the difficulties the act created for business. He became an advocate of removing regulations on corporations and giving them more leeway, even if this was hurtful to labor and to consumers. Environmental regulation became more and more a victim of "cost-benefit" analysis, in which regulations protecting the health and safety of the public became secondary to how costly this would be for business.
Under Reagan and Bush this concern for "the economy," which was a short-hand term for corporate profit, dominated any concern for workers or consumers. President Reagan proposed to replace tough enforcement of environmental laws by a "voluntary" approach, leaving it to businesses to decide for themselves what they would do. He appointed as head of OSHA a businessman who was hostile to OSHA's aims. One of his first acts was to order the destruction of 100,000 government booklets pointing out the dangers of cotton dust to textile workers.
Political scientist William Grover (The President as Prisoner), evaluating environmental policy under Carter and Reagan as part of his penetrating "structural critique" of both presidents, concluded:
George Bush presented himself as the "environmental president," and pointed with pride to his signing of the Clean Air Act of 1990. But two years after that act was passed, it was seriously weakened by a new rule of the Environmental Protection Agency that allowed manufacturers to increase by 245 tons a year hazardous pollutants in the atmosphere.
Furthermore, little money was allocated for enforcement. Contaminated drinking water had caused over 100,000 illnesses between 1971 and 1985, according to an EPA report. But in Bush's first year in office, while the EPA received 80,000 complaints of contaminated drinking water, only one in a hundred was investigated. And in 1991 and 1992, according to a private environmental group, the Natural Resources Defense Council, there were some 250,000 violations of the Safe Water Drinking Act (which had been passed during the Nixon administration).
Shortly after Bush took office, a government scientist prepared testimony for a Congressional committee on the dangerous effects of industrial uses of coal and other fossil fuels in contributing to "global warming," a depletion of the earth's protective ozone layer. The White House changed the testimony, over the scientist's objections, to minimize the danger (Boston Globe, October 29, 1990). Again, business worries about regulation seemed to override the safety of the public.
The ecological crisis in the world had become so obviously serious that Pope John Paul II felt the need to rebuke the wealthy classes of the industrialized nations for creating that crisis: "Today, the dramatic threat of ecological breakdown is teaching us the extent to which greed and selfishness, both individual and collective, are contrary to the order of creation."
At international conferences to deal with the perils of global warming, the European Community and Japan proposed specific levels and timetables for carbon dioxide emissions, in which the United States was the leading culprit. But, as the New York Times reported in the summer of 1991, "the Bush Administration fears that ... it would hurt the nation's economy in the short term for no demonstrable long-term climatic benefit." Scientific opinion was quite clear on the long-term benefit, but this was not as important as "the economy" -- that is, the needs of corporations.
Evidence became stronger by the late eighties that renewable energy sources (water, wind, sunlight) could produce more usable energy than nuclear plants, which were dangerous and expensive, and produced radioactive wastes that could not be safely disposed of. Yet the Reagan and Bush administrations made deep cuts (under Reagan, a 90 percent cut) in research into renewable energy possibilities.
In June 1992 more than a hundred countries participated in the Earth Summit environmental conference in Brazil. Statistics showed that the armed forces of the world were responsible for two-thirds of the gases that depleted the ozone layer. But when it was suggested that the Earth Summit consider the effects of the military on environmental degradation, the United States delegation objected and the suggestion was defeated.
Indeed, the preservation of a huge military establishment and the retention of profit levels of oil corporations appeared to be twin objectives of the Reagan-Bush administrations. Shortly after Ronald Reagan took office, twenty-three oil industry executives contributed $270,000 to redecorate the White House living quarters. According to the Associated Press:
While he built up the military (allocations of over a trillion dollars in his first four years in office), Reagan tried to pay for this with cuts in benefits for the poor. There would be $140 billion of cuts in social programs through 1984 and an increase of $181 billion for "defense" in the same period. He also proposed tax cuts of $190 billion (most of this going to the wealthy).
Despite the tax cuts and the military appropriations, Reagan insisted he would still balance the budget because the tax cuts would so stimulate the economy as to generate new revenue. Nobel Prize-winning economist Wassily Leontief remarked dryly: "This is not likely to happen. In fact, I personally guarantee that it will not happen."
Indeed, Department of Commerce figures showed that periods of lowered corporate taxes (1973-1975, 1979-1982) did not at all show higher capital investment, but a steep drop. The sharpest rise of capital investment (1975-1979) took place when corporate taxes were slightly higher than they had been the preceding five years.
The human consequences of Reagan's budget cuts went deep. For instance, Social Security disability benefits were terminated for 350,000 people. A man injured in an oil field accident was forced to go back to work, the federal government overruling both the company doctor and a state supervisor who testified that he was too disabled to work. The man died, and federal officials said, "We have a P.R. problem." A war hero of Vietnam, Roy Benavidez, who had been presented with the Congressional Medal of Honor by Reagan, was told by Social Security officials that the shrapnel pieces in his heart, arms, and leg did not prevent him from working. Appearing before a Congressional committee, he denounced Reagan.
Unemployment grew in the Reagan years. In the year 1982, 30 million people were unemployed all or part of the year. One result was that over 16 million Americans lost medical insurance, which was often tied to holding a job. In Michigan, where the unemployment rate was the highest in the country, the infant death rate began to rise in 1981.
New requirements eliminated free school lunches for more than one million poor children, who depended on the meal for as much as half of their daily nutrition. Millions of children entered the ranks of the officially declared "poor" and soon a quarter of the nation's children -- twelve million -- were living in poverty. In parts of Detroit, one-third of the children were dying before their first birthday, and the New York Times commented: "Given what's happening to the hungry in America, this Administration has cause only for shame."
Welfare became an object of attack: aid to single mothers with children through the AFDC (Aid to Families with Dependent Children) program, food stamps, health care for the poor through Medicaid. For most people on welfare (the benefits differed from state to state) this meant $500 to $700 a month in aid, leaving them well below the poverty level of about $900 a month. Black children were four times as likely as white children to grow up on welfare.
Early in the Reagan administration, responding to the argument that government aid was not needed, that private enterprise would take care of poverty, a mother wrote to her local newspaper:
Democrats often joined Republicans in denouncing welfare programs. Presumably, this was done to gain political support from a middle-class public that believed they were paying taxes to support teenage mothers and people they thought too lazy to work. Much of the public did not know, and were not informed by either political leaders or the media, that welfare took a tiny part of the taxes, and military spending took a huge chunk of it. Yet, the public's attitude on welfare was different from that of the two major parties. It seemed that the constant attacks on welfare by politicians, reported endlessly in the press and on television, did not succeed in eradicating a fundamental generosity felt by most Americans.
A New York Times/CBS News poll conducted in early 1992 showed that public opinion on welfare changed depending on how the question was worded. If the word "welfare" was used, 44 percent of those questioned said too much was being spent on welfare (while 50 percent said either that the right amount was being spent, or that too little was being spent. But when the question was about "assistance to the poor," only 13 percent thought too much was being spent, and 64 percent thought too little was being spent.
This suggested that both parties were trying to manufacture an antihuman-needs mood by constant derogatory use of the word "welfare," and then to claim they were acting in response to public opinion. The Democrats as well as the Republicans had strong connections to wealthy corporations. Kevin Phillips, a Republican analyst of national politics, wrote in 1990 that the Democratic Party was "history's second-most enthusiastic capitalist party."
Phillips pointed out that the greatest beneficiaries of government policy during the Republican presidencies of Ronald Reagan and George Bush were the superrich: "It was the truly wealthy, more than anyone else, who flourished under Reagan.... The 1980s were the triumph of upper America ... the political ascendancy of the rich, and a glorification of capitalism, free markets, and finance."
When government policy enriched the already rich, it was not called welfare. This was not as obvious as the monthly checks to the poor; it most often took the form of generous changes in the tax system.
In America: Who Really Pays The Taxes?, two investigative reporters with the Philadelphia Inquirer, Donald Barlett and James Steele, traced the path by which tax rates for the very rich got lower and lower. It was not the Republicans but the Democrats -- the Kennedy-Johnson administrations -- who, under the guise of "tax reform," first lowered the World War II-era rate of 91 percent on incomes over $400,000 a year to 70 percent. During the Carter Administration (though over his objections) Democrats and Republicans in Congress joined to give even more tax breaks to the rich.
The Reagan administration, with the help of Democrats in Congress, lowered the tax rate on the very rich to 50 percent and in 1986 a coalition of Republicans and Democrats sponsored another "tax reform" bill that lowered the top rate to 28 percent. Barlett and Steele noted that a schoolteacher, a factory worker, and a billionaire could all pay 28 percent. The idea of a "progressive" income in which the rich paid at higher rates than everyone else was now almost dead.
As a result of all the tax bills from 1978 to 1990, the net worth of the "Forbes 400," chosen as the richest in the country by Forbes Magazine (advertising itself as "capitalist tool"), was tripled. About $70 billion a year was lost in government revenue, so that in those thirteen years the wealthiest 1 percent of the country gained, a trillion dollars.
As William Greider pointed out, in his remarkable book Who Will Tell The People? The Betrayal of American Democracy:
Not only did the income tax become less progressive during the last decades of the century, but the Social Security tax became more regressive. That is, more and more was deducted from the salary checks of the poor and middle classes, but when salaries reached $42,000 no more was deducted. By the early 1990s, a middle-income family earning $37,800 a year paid 7.65 percent of its income in Social Security taxes. A family earning ten times as much, $378,000 paid 1.46 percent of its income in Social Security taxes.
The result of these higher payroll taxes was that three-fourths of all wage earners paid more each year through the Social Security tax than through the income tax. Embarrassingly for the Democratic party, which was supposed to be the party of the working class, those higher payroll taxes had been put in motion under the administration of Jimmy Carter.
In a two-party system, if both parties ignore public opinion, there is no place voters can turn. And in the matter of taxation, it has been clear that American citizens have wanted taxes that are truly progressive. William Greider informs us that shortly after World War II, when rates on the very rich were up to 90 percent, a Gallup poll showed that 85 percent of the public thought the federal tax code was "fair." But by 1984, when all those tax "reforms" had been put into effect by Democrats and Republicans, a public opinion survey by the Internal Revenue Service found that 80 percent of those polled agreed with the statement: "The present tax system benefits the rich and is unfair to the ordinary working man and woman."
By the end of the Reagan years, the gap between rich and poor in the United States had grown dramatically. Where in 1980, the chief executive officers (CEOs) of corporations made forty times as much in salary as the average factory worker, by 1989 they were making ninety-three times as much. In the dozen years from 1977 to 1989, the before-tax income of the richest 1 percent rose 77 percent; meanwhile, for the poorest two-fifths of the population, there was no gain at all, indeed a small decline.
And because of favorable changes for the rich in the tax structure, the richest 1 percent, in the decade ending in 1990, saw their after-tax income increase 87 percent. In the same period, the after-tax income of the lower four-fifths of the population either went down 5 percent (at the poorest level) or went up no more than 8.6 percent.
While everybody at the lower levels was doing worse, there were especially heavy losses for blacks, Hispanics, women, and the young. The general impoverishment of the lowest-income groups that took place in the Reagan-Bush years hit black families hardest, with their lack of resources to start with and with racial discrimination facing them in jobs. The victories of the civil rights movement had opened up spaces for some African-Americans, but left others far behind.
At the end of the eighties, at least a third of African-American families fell below the official poverty level, and black unemployment seemed fixed at two and a half times that of whites, with young blacks out of work at the rate of 30 to 40 percent. The life expectancy of blacks remained at least ten years lower than that of whites. In Detroit, Washington, and Baltimore, the mortality rate for black babies was higher than in Jamaica or Costa Rica.
Along with poverty came broken homes, family violence, street crime, drugs. In Washington, D.C., with a concentrated population of black poor within walking distance of the marbled buildings of the national government, 42 percent of young black men between the ages of eighteen and thirty-five were either in jail, or out on probation or parole. The crime rate among blacks, instead of being seen as a crying demand for the elimination of poverty, was used by politicians to call for the building of more prisons.
The 1954 Supreme Court decision in Brown v. Board of Education had begun the process of desegregating schools. But poverty kept black children in ghettos and many schools around the country remained segregated by race and class. Supreme Court decisions in the seventies determined that there need be no equalization of funds for poor school districts and rich school districts (San Antonio Independent School District v. Rodriguez) and that the busing of children need not take place between wealthy suburbs and inner cities (Milliken v. Bradley).
To admirers of free enterprise and laissez-faire, those people were poor who did not work and produce, and so had themselves to blame for their poverty. They ignored the fact that women taking care of children on their own were working very hard indeed. They did not ask why babies who were not old enough to show their work skills should be penalized -- to the point of death -- for growing up in a poor family.
Ironically, it was Republican Kevin Phillips who, analyzing the Reagan years, wrote: "Less and less wealth was going to people who produced something ... disproportionate rewards to society's economic, legal and cultural manipulators -- from lawyers to financial advisers."
21. CARTER-REAGAN-BUSH: THE BIPARTISAN CONSENSUS
Halfway through the twentieth century, the historian Richard Hofstadter, in his book The American Political Tradition, examined our important national leaders, from Jefferson and Jackson to Herbert Hoover and the two Roosevelts -- Republicans and Democrats, liberals and conservatives. Hofstadter concluded that "the range of vision embraced by the primary contestants in the major parties has always been bounded by the horizons of property and enterprise.... They have accepted the economic virtues of capitalist culture as necessary qualities of man.... That culture has been intensely nationalistic...."
Coming to the end of the century, observing its last twenty-five years, we have seen exactly that limited vision Hofstadter talked about -- a capitalistic encouragement of enormous fortunes alongside desperate poverty, a nationalistic acceptance of war and preparations for war. Governmental power swung from Republicans to Democrats and back again, but neither party showed itself capable of going beyond that vision.
After the disastrous war in Vietnam came the scandals of Watergate. There was a deepening economic insecurity for much of the population, along with environmental deterioration, and a growing culture of violence and family disarray. Clearly, such fundamental problems could not be solved without bold changes in the social and economic structure. But no major party candidates proposed such changes. The "American political tradition" held fast.
In recognition of this, perhaps only vaguely conscious of this, voters stayed away from the polls in large numbers, or voted without enthusiasm. More and more they declared, if only by nonparticipation, their alienation from the political system. In 1960, 63 percent of those eligible to vote voted in the presidential election. By 1976, this figure had dropped to 53 percent. In a CBS News and New York Times survey, over half of the respondents said that public officials didn't care about people like them. A typical response came from a plumber: "The President of the United States isn't going to solve our problems. The problems are too big."
There was a troubling incongruity in the society. Electoral politics dominated the press and television screens, and the doings of presidents, members of Congress, Supreme Court justices, and other officials were treated as if they constituted the history of the country. Yet there was something artificial in all this, something pumped up, a straining to persuade a skeptical public that this was all, that they must rest their hopes for the future in Washington politicians, none of whom were inspiring because it seemed that behind the bombast, the rhetoric, the promises, their major concern was their own political power.
The distance between politics and the people was reflected clearly in the culture. In what was supposed to be the best of the media, uncontrolled by corporate interest -- that is, in public television, the public was largely invisible. On the leading political forum on public television, the nightly "MacNeil-Lehrer Report," the public was uninvited, except as viewer of an endless parade of Congressmen, Senators, government bureaucrats, experts of various kinds.
On commercial radio, the usual narrow band of consensus, excluding fundamental criticism, was especially apparent. In the mid-1980s, with Ronald Reagan as President, the "fairness doctrine" of the Federal Communications Commission, requiring air time for dissenting views, was eliminated. By the 1990s, "talk radio" had perhaps 20 million listeners, treated to daily tirades from right-wing talk-show "hosts," with leftwing guests uninvited.
A citizenry disillusioned with politics and with what pretended to be intelligent discussions of politics turned its attention (or had its attention turned) to entertainment, to gossip, to ten thousand schemes for self-help. Those at its margins became violent, finding scapegoats within one's group (as with poor-black on poor-black violence), or against other races, immigrants, demonized foreigners, welfare mothers, minor criminals (standing in for untouchable major criminals).
There were other citizens, those who tried to hold on to ideas and ideals still remembered from the sixties and early seventies, not just by recollecting but by acting. Indeed, all across the country there was a part of the public unmentioned in the media, ignored by political leaders -- energetically active in thousands of local groups around the country. These organized groups were campaigning for environmental protection or women's rights or decent health care (including anguished concern about the horrors of AIDS) or housing for the homeless, or against military spending.
This activism was unlike that of the sixties, when the surge of protest against race segregation and war became an overwhelming national force. It struggled uphill, against callous political leaders, trying to reach fellow Americans most of whom saw little hope in either the politics of voting or the politics of protest.
The presidency of Jimmy Carter, covering the years 1977 to 1980, seemed an attempt by one part of the Establishment, that represented in the Democratic party, to recapture a disillusioned citizenry. But Carter, despite a few gestures toward black people and the poor, despite talk of "human rights" abroad, remained within the historic political boundaries of the American system, protecting corporate wealth and power, maintaining a huge military machine that drained the national wealth, allying the United States with right-wing tyrannies abroad.
Carter seemed to be the choice of that international group of powerful influence-wielders -- the Trilateral Commission. Two founding members of the commission, according to the Far Eastern Economic Review -- David Rockefeller and Zbigniew Brzeziuski -- thought Carter was the right person for the presidential election of 1976 given that "the Watergate-plagued Republican Party was a sure loser...."
Carter's job as President, from the point of view of the Establishment, was to halt the rushing disappointment of the American people with the government, with the economic system, with disastrous military ventures abroad. In his campaign, he tried to speak to the disillusioned and angry. His strongest appeal was to blacks, whose rebellion in the late sixties was the most frightening challenge to authority since the labor and unemployed upsurges in the thirties.
His appeal was "populist" -- that is, he appealed to various elements of American society who saw themselves beleaguered by the powerful and wealthy. Although he himself was a millionaire peanut grower, he presented himself as an ordinary American farmer. Although he had been a supporter of the Vietnam war until its end, he presented himself as a sympathizer with those who had been against the war, and he appealed to many of the young rebels of the sixties by his promise to cut the military budget.
In a much-publicized speech to lawyers, Carter spoke out against the use of the law to protect the rich. He appointed a black woman, Patricia Harris, as Secretary of Housing and Urban, Development, and a black civil rights veteran, Andrew Young, as ambassador to the United Nations. He gave the job of heading the domestic youth service corps to a young former antiwar activist, Sam Brown.
His most crucial appointments, however, were in keeping with the Trilateral Commission report of Harvard political scientist Samuel Huntington, which said that, whatever groups voted for a president, once elected "what counts then is his ability to mobilize support from the leaders of key institutions." Brzezinski, a traditional cold war intellectual, became Carter's National Security Adviser. His Secretary of Defense, Harold Brown, had, during the Vietnam war, according to the Pentagon Papers, "envisaged the elimination of virtually all the constraints under which the bombing then operated." His Secretary of Energy, James Schlesinger, as Secretary of Defense under Nixon, was described by a member of the Washington press corps as showing "an almost missionary drive in seeking to reverse a downward trend in the defense budget." Schlesinger was also a strong proponent of nuclear energy.
His other cabinet appointees had strong corporate connections. A financial writer wrote, not long after Carter's election: "So far, Mr. Carter's actions, commentary, and particularly his Cabinet appointments, have been highly reassuring to the business community." Veteran Washington correspondent Tom Wicker wrote: "The available evidence is that Mr. Carter so far is opting for Wall Street's confidence."
Carter did initiate more sophisticated policies toward governments that oppressed their own people. He used United Nations Ambassador Andrew Young to build up good will for the United States among the black African nations, and urged that South Africa liberalize its policies toward blacks. A peaceful settlement in South Africa was necessary for strategic reason; South Africa was used for radar tracking systems. Also, it had important U.S. corporate investments and was a critical source of needed raw materials (diamonds, especially). Therefore, what the United States needed was a stable government in South Africa; the continued oppression of blacks might create civil war.
The same approach was used in other countries -- combining practical strategic needs with the advancement of civil rights. But because the chief motivation was practicality, not humanity, there was a tendency toward token changes -- as in Chile's release of a few political prisoners. When Congressman Herman Badillo introduced in Congress a proposal that required the U.S. representatives to the World Bank and other international financial institutions to vote against loans to countries that systematically violated essential rights, by the use of torture or imprisonment without trial, Carter sent a personal letter to every Congressman urging the defeat of this amendment. It won a voice vote in the House, but lost in the Senate.
Under Carter, the United States continued to support, all over the world, regimes that engaged in imprisonment of dissenters, torture, and mass murder: in the Philippines, in Iran, in Nicaragua, and in Indonesia, where the inhabitants of East Timor were being annihilated in a campaign bordering on genocide.
The New Republic magazine, presumably on the liberal side of the Establishment, commented approvingly on the Carter policies: "... American foreign policy in the next four years will essentially extend the philosophies developed ... in the Nixon-Ford years. This is not at all a negative prospect.... There should be continuity. It is part of history...."
Carter had presented himself as a friend of the movement against the war, but when Nixon mined Haiphong harbor and resumed bombing of North Vietnam in the spring of 1973, Carter urged that "we give President Nixon our backing and support -- whether or not we agree with specific decisions." Once elected, Carter declined to give aid to Vietnam for reconstruction, despite the fact that the land had been devastated by American bombing. Asked about this at a press conference, Carter replied that there was no special obligation on the United States to do this because "the destruction was mutual."
Considering that the United States had crossed half the globe with an enormous fleet of bombers and 2 million soldiers, and after eight years left a tiny nation with over a million dead and its land in ruins, this was an astounding statement.
One Establishment intention, perhaps, was that future generations see the war not as it appeared in the Defense Department's own Pentagon Papers -- as a ruthless attack on civilian populations for strategic military and economic interests -- but as an unfortunate error. Noam Chomsky, one of the leading antiwar intellectuals during the Vietnam period, looked in mid-1978 at how the history of the war was being presented in the major media and wrote that they were "destroying the historical record and supplanting it with a more comfortable story ... reducing 'lessons' of the war to the socially neutral categories of error, ignorance, and cost."
The Carter administration clearly was trying to end the disillusionment of the American people after the Vietnam war by following foreign policies more palatable, less obviously aggressive. Hence, the emphasis on "human rights," the pressure on South Africa and Chile to liberalize their policies. But on close examination, these more liberal policies were designed to leave intact the power and influence of the American military and American business in the world.
The renegotiation of the Panama Canal treaty with the tiny Central American republic of Panama was an example. The canal saved American companies $1.5 billion a year in delivery costs, and the United States collected $150 million a year in tolls, out of which it paid the Panama government $2.3 million dollars, while maintaining fourteen military bases in the area.
Back in 1903 the United States had engineered a revolution against Colombia, set up the new tiny republic of Panama in Central America, and dictated a treaty giving the United States military bases, control of the Panama Canal, and sovereignty "in perpetuity." The Carter administration in 1977, responding to anti-American protests in Panama, decided to renegotiate the treaty. The New York Times was candid about the Canal: "We stole it, and removed the incriminating evidence from our history books."
By 1977 the canal had lost military importance. It could not accommodate large tankers or aircraft carriers. That, plus the anti-American riots in Panama, led the Carter administration, over conservative opposition, to negotiate a new treaty which called for a gradual removal of U.S. bases (which could easily be relocated elsewhere in the area). The canal's legal ownership would be turned over to Panama after a period. The treaty also contained vague language which could be the basis for American military intervention under certain conditions.
Whatever Carter's sophistication in foreign policy, certain fundamentals operated in the late sixties and the seventies. American corporations were active all over the world on a scale never seen before. There were, by the early seventies, about three hundred U.S. corporations, including the seven largest banks, which earned 40 percent of their net profits outside the United States. They were called "multinationals," but actually 98 percent of their top executives were Americans. As a group, they now constituted the third-largest economy in the world, next to the United States and the Soviet Union.
The relationship of these global corporations with the poorer countries had long been an exploiting one, it was clear from U.S. Department of Commerce figures. Whereas U.S. corporations in Europe between 1950 and 1965 invested $8.1 billion and made $5.5 billion in profits, in Latin America they invested $3.8 billion and made $11.2 billion in profits, and in Africa they invested $5.2 billion and made $14.3 billion in profits.
It was the classical imperial situation, where the places with natural wealth became victims of more powerful nations whose power came from that seized wealth. American corporations depended on the poorer countries for 100 percent of their diamonds, coffee, platinum, mercury, natural rubber, and cobalt. They got 98 percent of their manganese from abroad, 90 percent of their chrome and aluminum. And 20 to 40 percent of certain imports (platinum, mercury, cobalt, chrome, manganese) came from Africa.
Another fundamental of foreign policy, whether Democrats or Republicans were in the White House, was the training of foreign military officers. The Army had a "School of the Americas" in the Canal Zone, from which thousands of military leaders in Latin America had graduated. Six of the graduates, for instance, were in the Chilean military junta that overthrew the democratically elected Allende government in 1973. The American commandant of the school told a reporter: "We keep in touch with our graduates and they keep in touch with us."
And yet the United States cultivated a reputation for being generous with its riches. Indeed, it had frequently given aid to disaster victims. This aid, however, often depended on political loyalty. In one six-year drought in West Africa, 100,000 Africans died of starvation. A report by the Carnegie Endowment said the Agency for International Development (AID) of the United States had been inefficient and neglectful in giving aid to nomads in the Sahel area of West Africa, an area covering six countries. The response of AID was that those countries had "no close historical, economic, or political ties to the United States."
In early 1975 the press carried a dispatch from Washington: "Secretary of State Henry A. Kissinger has formally initiated a policy of selecting for cutbacks in American aid those nations that have sided against the U.S. in votes in the United Nations. In some cases the cutbacks involve food and humanitarian relief."
Most aid was openly military, and by 1975, the United States exported $9.5 billion in arms. The Carter administration promised to end the sale of arms to repressive regimes, but when it took office the bulk of the sales continued.
And the military continued to take a huge share of the national budget. When Carter was running for election, he told the Democratic Platform Committee: "Without endangering the defense of our nation or commitments to our allies, we can reduce present defense expenditures by about 5 to 7 billion dollars annually." But his first budget proposed not a decrease but an increase of $10 billion for the military. Indeed, he proposed that the U.S. spend a thousand billion dollars (a trillion dollars) in the next five years on its military forces. And the administration had just announced that the Department of Agriculture would save $25 million a year by no longer giving free second helpings of milk to 1.4 million needy schoolchildren who got free meals in school.
If Carter's job was to restore faith in the system, here was his greatest failure -- solving the economic problems of the people. The price of food and the necessities of life continued to rise faster than wages were rising. Unemployment remained officially at 6 or 8 percent; unofficially, the rates were higher. For certain key groups in the population -- young people, and especially young black people -- the unemployment rate was 20 or 30 percent.
It soon became clear that blacks in the United States, the group most in support of Carter for President, were bitterly disappointed with his policies. He opposed federal aid to poor people who needed abortions, and when it was pointed out to him that this was unfair, because rich women could get abortions with ease, he replied: "Well, as you know, there are many things in life that are not fair, that wealthy people can afford and poor people cannot."
Carter's "populism" was not visible in his administration's relationship to the oil and gas interests. It was part of Carter's "energy plan" to end price regulation of natural gas for the consumer. The largest producer of natural gas was Exxon Corporation, and the largest blocs of private stock in Exxon were owned by the Rockefeller family.
Early in Carter's administration, the Federal Energy Administration found that Gulf Oil Corporation had overstated by $79.1 million its costs for crude oil obtained from foreign affiliates. It then passed on these false costs to consumers. In the summer of 1978 the administration announced that "a compromise" had been made with Gulf Oil in which Gulf agreed to pay back $42.2 million. Gulf informed its stockholders that "the payments will not affect earnings since adequate provision was made in prior years."
The lawyer for the Energy Department who worked out the compromise with Gulf said it had been done to avoid a lengthy and costly lawsuit. Would the lawsuit have cost the $36.9 million dropped in the compromise? Would the government have considered letting off a bank robber without a jail term in return for half the loot? The settlement was a perfect example of what Carter had told a meeting of lawyers during his presidential campaign -- that the law was on the side of the rich.
The fundamental facts of maldistribution of wealth in America were clearly not going to be affected by Carter's policies, any more than by previous administrations, whether conservative or liberal. According to Andrew Zimbalist, an American economist writing in Le Monde Diplomatique in 1977, the top 10 percent of the American population had an income thirty times that of the bottom tenth; the top 1 percent of the nation owned 33 percent of the wealth. The richest 5 percent owned 83 percent of the personally owned corporate stock. The one hundred largest corporations (despite the graduated income tax that misled people into thinking the very rich paid at least 50 percent in taxes) paid an average of 26.9 percent in taxes, and the leading oil companies paid 5.8 percent in taxes (Internal Revenue Service figures for 1974). Indeed, 244 individuals who earned over $200,000 paid no taxes.
In 1979, as Carter weakly proposed benefits for the poor, and Congress strongly turned them down, a black woman, Marian Wright Edelman, director of the Children's Defense Fund in Washington, pointed to some facts. One of every seven American children (10 million altogether) had no known regular source of primary health care. One of every three children under seventeen (18 million altogether) had never seen a dentist. In an article on the New York Times op-ed page, she wrote:
The Senate Budget Committee recently ... knocked off $88 million from a modest $288 million Administration request to improve the program that screens and treats children's health problems. At the same time the Senate found $725 million to bail out Litton Industries and to hand to the Navy at least two destroyers ordered by the Shah of Iran.
Carter approved tax "reforms" which benefited mainly the corporations. Economist Robert Lekachman, writing in The Nation, noted the sharp increase in corporate profits (44 percent) in the last quarter of 1978 over the previous year's last quarter. He wrote: "Perhaps the President's most outrageous act occurred last November when he signed into law an $18 billion tax reduction, the bulk of whose benefits accrue to affluent individuals and corporations."
In 1979, while the poor were taking cuts, the salary of the chairman of Exxon Oil was being raised to $830,000 a year and that of the chairman of Mobil Oil to over a million dollars a year. That year, while Exxon's net income rose 56 percent to more than $4 billion, three thousand small independent gasoline stations went out of business.
Carter made some efforts to hold onto social programs, but this was undermined by his very large military budgets. Presumably, this was to guard against the Soviet Union, but when the Soviet Union invaded Afghanistan in 1979, Carter could take only symbolic actions, like reinstituting the draft, or calling for a boycott of the 1980 Moscow Olympics.
On the other hand, American weaponry was used to support dictatorial regimes battling left-wing rebels abroad. A report by the Carter administration to Congress in 1977 was blunt, saying that "a number of countries with deplorable records of human rights observance are also countries where we have important security and foreign policy interests."
Thus, Carter asked Congress in the spring of 1980 for $5.7 million in credits for the military junta fighting off a peasant rebellion in El Salvador. In the Philippines, after the 1978 National Assembly elections, President Ferdinand Marcos imprisoned ten of the twenty-one losing opposition candidates; many prisoners were tortured, many civilians were killed. Still, Carter urged Congress to give Marcos $300 million in military aid for the next five years.
In Nicaragua, the United States had helped maintain the Somoza dictatorship for decades. Misreading the basic weakness of that regime, and the popularity of the revolution against it, the Carter administration continued its support for Somoza until close to the regime's fall in 1979.
In Iran, toward the end of 1978, the long years of resentment against the Shah's dictatorship culminated in mass demonstrations. On September 8, 1978, hundreds of demonstrators were massacred by the Shah's troops. The next day, according to a UPI dispatch from Teheran, Carter affirmed his support for the Shah:
Troops opened fire on demonstrators against the Shah for the third straight day yesterday and President Jimmy Carter telephoned the royal palace to express support for Shah Mohammad Reza Pahlevi, who faced the worst crisis of his 37-year reign. Nine members of parliament walked out on a speech by Iran's new premier, shouting that his hands were "stained with blood" in the crackdown on conservative Moslems and other protesters.
On December 13, 1978, Nicholas Gage reported for the New York Times:
The staff of the United States Embassy here has been bolstered by dozens of specialists flown in to back an effort to help the Shah against a growing challenge to his rule according to embassy sources.... The new arrivals, according to the embassy sources, include a number of Central Intelligence Agency specialists on Iran, in addition to diplomats and military personnel.
In early 1979, as the crisis in Iran was intensifying, the former chief analyst on Iran for the CIA told New York Times reporter Seymour Hersh that "he and his colleagues knew of the tortures of Iranian dissenters by Savak, the Iranian secret police set up during the late 1950s by the Shah with help from the CIA." Furthermore, he told Hersh that a senior CIA official was involved in instructing officials in Savak on torture techniques.
It was a popular, massive revolution, and the Shah fled. The Carter administration later accepted him into the country, presumably for medical treatment, and the anti-American feelings of the revolutionaries reached a high point. On November 4, 1979, the U.S. embassy in Teheran was taken over by student militants who, demanding that the Shah be returned to Iran for punishment, held fifty-two embassy employees hostage.
For the next fourteen months, with the hostages still held in the embassy compound, that issue took the forefront of foreign news in the United States and aroused powerful nationalist feelings. When Carter ordered the Immigration and Naturalization Service to start deportation proceedings against Iranian students who lacked valid visas, the New York Times gave cautious but clear approval. Politicians and the press played into a general hysteria. An Iranian-American girl who was slated to give a high school commencement address was removed from the program. The bumper sticker "Bomb Iran" appeared on autos all over the country.
It was a rare journalist bold enough to point out, as Alan Richman of the Boston Globe did when the fifty-two hostages were released alive and apparently well, that there was a certain lack of proportion in American reactions to this and other violations of human rights: "There were 52 of them, a number easy to comprehend. It wasn't like 15,000 innocent people permanently disappearing in Argentina.... They [the American hostages] spoke our language. There were 3000 people summarily shot in Guatemala last year who did not."
The hostages were still in captivity when Jimmy Carter faced Ronald Reagan in the election of 1980. That fact, and the economic distress felt by many, were largely responsible for Carter's defeat.
Reagan's victory, followed eight years later by the election of George Bush, meant that another part of the Establishment, lacking even the faint liberalism of the Carter presidency, would be in charge. The policies would be more crass -- cutting benefits to poor people, lowering taxes for the wealthy, increasing the military budget, filling the federal court system with conservative judges, actively working to destroy revolutionary movements in the Caribbean.
The dozen years of the Reagan-Bush presidency transformed the federal judiciary, never more than moderately liberal, into a predominantly conservative institution. By the fall of 1991, Reagan and Bush had filled more than half of the 837 federal judgeships, and appointed enough right-wing justices to transform the Supreme Court.
In the seventies, with liberal justices William Brennan and Thurgood Marshall in the lead, the Court had declared death penalties unconstitutional, had supported (in Roe v. Wade) the right of women to choose abortions, and had interpreted the civil rights law as permitting special attention to blacks and women to make up for past discrimination (affirmative action).
William Rehnquist, first named to the Supreme Court by Richard Nixon, was made Chief Justice by Ronald Reagan. In the Reagan-Bush years, the Rehnquist Court made a series of decisions that weakened Roe v. Wade, brought back the death penalty, reduced the rights of detainees against police powers, prevented doctors in federally supported family planning clinics from giving women information on abortions, and said that poor people could be forced to pay for public education (education was not "a fundamental right").
Justices William Brennan and Thurgood Marshall were the last of the Court's liberals. Old and ill, though reluctant to give up the fight, they retired. The final act to create a conservative Supreme Court was President Bush's nomination to replace Marshall. He chose a black conservative, Clarence Thomas. Despite dramatic testimony from a former colleague, a young black law professor named Anita Hill, that Thomas had sexually harassed her, Thomas was approved by the Senate and now the Supreme Court moved even more decisively to the right.
With conservative federal judges, with pro-business appointments to the National Labor Relations Board, judicial decisions and board findings weakened a labor movement already troubled by a decline in manufacturing. Workers who went out on strike found themselves with no legal protection. One of the first acts of the Reagan administration was to dismiss from their jobs, en masse, striking air traffic controllers. It was a warning to future strikers, and a sign of the weakness of a labor movement which in the thirties and forties had been a powerful force.
Corporate America became the greatest beneficiary of the Reagan-Bush years. In the sixties and seventies an important environmental movement had grown in the nation, horrified at the poisoning of the air, the seas and rivers, and the deaths of thousands each year as a result of work conditions. After a mine explosion in West Virginia killed seventy-eight miners in November 1968 there had been angry protest in the mine district, and Congress passed the Coal Mine Health and Safety Act of 1969. Nixon's Secretary of Labor spoke of "a new national passion, passion for environmental improvement."
The following year, yielding to strong demands from the labor movement and consumer groups, but also seeing it as an opportunity to win the support of working-class voters, President Nixon had signed the Occupational Safety and Health Act of 1970. This was an important piece of legislation, establishing a universal right to a safe and healthy workplace, and creating an enforcement machinery. Reflecting on this years later, Herbert Stein, who had been the chairman of Nixon's Council of Economic Advisers, lamented that "the juggernaut of environmental regulation proved not to be controllable by the Nixon administration."
While President Jimmy Carter came into office praising the OSHA program, he was also eager to please the business community. The woman he appointed to head OSHA, Eula Bingham, fought for strong enforcement of the act, and was occasionally successful. But as the American economy showed signs of trouble, with oil prices, inflation, and unemployment rising, Carter seemed more and more concerned about the difficulties the act created for business. He became an advocate of removing regulations on corporations and giving them more leeway, even if this was hurtful to labor and to consumers. Environmental regulation became more and more a victim of "cost-benefit" analysis, in which regulations protecting the health and safety of the public became secondary to how costly this would be for business.
Under Reagan and Bush this concern for "the economy," which was a short-hand term for corporate profit, dominated any concern for workers or consumers. President Reagan proposed to replace tough enforcement of environmental laws by a "voluntary" approach, leaving it to businesses to decide for themselves what they would do. He appointed as head of OSHA a businessman who was hostile to OSHA's aims. One of his first acts was to order the destruction of 100,000 government booklets pointing out the dangers of cotton dust to textile workers.
Political scientist William Grover (The President as Prisoner), evaluating environmental policy under Carter and Reagan as part of his penetrating "structural critique" of both presidents, concluded:
OSHA appears caught in a cycle of liberal presidents -- who want to retain some health and safety regulatory programs, but who also need economic growth for political survival -- and conservative presidents, who focus almost exclusively on the growth side of the equation. Such a cycle will always tend to subordinate the need for safe and healthful workplaces to ... ensuring that commitment to OSHA will only be as strong as the priorities of business will allow.
George Bush presented himself as the "environmental president," and pointed with pride to his signing of the Clean Air Act of 1990. But two years after that act was passed, it was seriously weakened by a new rule of the Environmental Protection Agency that allowed manufacturers to increase by 245 tons a year hazardous pollutants in the atmosphere.
Furthermore, little money was allocated for enforcement. Contaminated drinking water had caused over 100,000 illnesses between 1971 and 1985, according to an EPA report. But in Bush's first year in office, while the EPA received 80,000 complaints of contaminated drinking water, only one in a hundred was investigated. And in 1991 and 1992, according to a private environmental group, the Natural Resources Defense Council, there were some 250,000 violations of the Safe Water Drinking Act (which had been passed during the Nixon administration).
Shortly after Bush took office, a government scientist prepared testimony for a Congressional committee on the dangerous effects of industrial uses of coal and other fossil fuels in contributing to "global warming," a depletion of the earth's protective ozone layer. The White House changed the testimony, over the scientist's objections, to minimize the danger (Boston Globe, October 29, 1990). Again, business worries about regulation seemed to override the safety of the public.
The ecological crisis in the world had become so obviously serious that Pope John Paul II felt the need to rebuke the wealthy classes of the industrialized nations for creating that crisis: "Today, the dramatic threat of ecological breakdown is teaching us the extent to which greed and selfishness, both individual and collective, are contrary to the order of creation."
At international conferences to deal with the perils of global warming, the European Community and Japan proposed specific levels and timetables for carbon dioxide emissions, in which the United States was the leading culprit. But, as the New York Times reported in the summer of 1991, "the Bush Administration fears that ... it would hurt the nation's economy in the short term for no demonstrable long-term climatic benefit." Scientific opinion was quite clear on the long-term benefit, but this was not as important as "the economy" -- that is, the needs of corporations.
Evidence became stronger by the late eighties that renewable energy sources (water, wind, sunlight) could produce more usable energy than nuclear plants, which were dangerous and expensive, and produced radioactive wastes that could not be safely disposed of. Yet the Reagan and Bush administrations made deep cuts (under Reagan, a 90 percent cut) in research into renewable energy possibilities.
In June 1992 more than a hundred countries participated in the Earth Summit environmental conference in Brazil. Statistics showed that the armed forces of the world were responsible for two-thirds of the gases that depleted the ozone layer. But when it was suggested that the Earth Summit consider the effects of the military on environmental degradation, the United States delegation objected and the suggestion was defeated.
Indeed, the preservation of a huge military establishment and the retention of profit levels of oil corporations appeared to be twin objectives of the Reagan-Bush administrations. Shortly after Ronald Reagan took office, twenty-three oil industry executives contributed $270,000 to redecorate the White House living quarters. According to the Associated Press:
The solicitation drive ... came four weeks after the President decontrolled oil prices, a decision worth $2 billion to the oil industry ... Jack Hodges of Oklahoma City, owner of Core Oil and Gas Company, said: "The top man of this country ought to live in one of the top places. Mr. Reagan has helped the energy business."
While he built up the military (allocations of over a trillion dollars in his first four years in office), Reagan tried to pay for this with cuts in benefits for the poor. There would be $140 billion of cuts in social programs through 1984 and an increase of $181 billion for "defense" in the same period. He also proposed tax cuts of $190 billion (most of this going to the wealthy).
Despite the tax cuts and the military appropriations, Reagan insisted he would still balance the budget because the tax cuts would so stimulate the economy as to generate new revenue. Nobel Prize-winning economist Wassily Leontief remarked dryly: "This is not likely to happen. In fact, I personally guarantee that it will not happen."
Indeed, Department of Commerce figures showed that periods of lowered corporate taxes (1973-1975, 1979-1982) did not at all show higher capital investment, but a steep drop. The sharpest rise of capital investment (1975-1979) took place when corporate taxes were slightly higher than they had been the preceding five years.
The human consequences of Reagan's budget cuts went deep. For instance, Social Security disability benefits were terminated for 350,000 people. A man injured in an oil field accident was forced to go back to work, the federal government overruling both the company doctor and a state supervisor who testified that he was too disabled to work. The man died, and federal officials said, "We have a P.R. problem." A war hero of Vietnam, Roy Benavidez, who had been presented with the Congressional Medal of Honor by Reagan, was told by Social Security officials that the shrapnel pieces in his heart, arms, and leg did not prevent him from working. Appearing before a Congressional committee, he denounced Reagan.
Unemployment grew in the Reagan years. In the year 1982, 30 million people were unemployed all or part of the year. One result was that over 16 million Americans lost medical insurance, which was often tied to holding a job. In Michigan, where the unemployment rate was the highest in the country, the infant death rate began to rise in 1981.
New requirements eliminated free school lunches for more than one million poor children, who depended on the meal for as much as half of their daily nutrition. Millions of children entered the ranks of the officially declared "poor" and soon a quarter of the nation's children -- twelve million -- were living in poverty. In parts of Detroit, one-third of the children were dying before their first birthday, and the New York Times commented: "Given what's happening to the hungry in America, this Administration has cause only for shame."
Welfare became an object of attack: aid to single mothers with children through the AFDC (Aid to Families with Dependent Children) program, food stamps, health care for the poor through Medicaid. For most people on welfare (the benefits differed from state to state) this meant $500 to $700 a month in aid, leaving them well below the poverty level of about $900 a month. Black children were four times as likely as white children to grow up on welfare.
Early in the Reagan administration, responding to the argument that government aid was not needed, that private enterprise would take care of poverty, a mother wrote to her local newspaper:
I am on Aid to Families with Dependent Children, and both my children are in school.... I have graduated from college with distinction, 128th in a class of over 1000, with a B.A. in English and sociology. I have experience in library work, child care, social work and counseling.
I have been to the CETA office. They have nothing for me.... I also go every week to the library to scour the newspaper Help Wanted ads. I have kept a copy of every cover letter that I have sent out with my resume; the stack is inches thick. I have applied for jobs paying as little as $8000 a year. I work part-time in a library for $3.50 an hour, welfare reduces my allotment to compensate....
It appears we have employment offices that can't employ, governments that can't govern and an economic system that can't produce jobs for people ready to work....
Last week I sold my bed to pay for the insurance on my car, which, in the absence of mass transportation, I need to go job hunting. I sleep on a piece of rubber foam somebody gave me.
So this is the great American dream my parents came to this country for: Work hard, get a good education, follow the rules, and you will be rich. I don't want to be rich. I just want to be able to feed my children and live with some semblance of dignity...."
Democrats often joined Republicans in denouncing welfare programs. Presumably, this was done to gain political support from a middle-class public that believed they were paying taxes to support teenage mothers and people they thought too lazy to work. Much of the public did not know, and were not informed by either political leaders or the media, that welfare took a tiny part of the taxes, and military spending took a huge chunk of it. Yet, the public's attitude on welfare was different from that of the two major parties. It seemed that the constant attacks on welfare by politicians, reported endlessly in the press and on television, did not succeed in eradicating a fundamental generosity felt by most Americans.
A New York Times/CBS News poll conducted in early 1992 showed that public opinion on welfare changed depending on how the question was worded. If the word "welfare" was used, 44 percent of those questioned said too much was being spent on welfare (while 50 percent said either that the right amount was being spent, or that too little was being spent. But when the question was about "assistance to the poor," only 13 percent thought too much was being spent, and 64 percent thought too little was being spent.
This suggested that both parties were trying to manufacture an antihuman-needs mood by constant derogatory use of the word "welfare," and then to claim they were acting in response to public opinion. The Democrats as well as the Republicans had strong connections to wealthy corporations. Kevin Phillips, a Republican analyst of national politics, wrote in 1990 that the Democratic Party was "history's second-most enthusiastic capitalist party."
Phillips pointed out that the greatest beneficiaries of government policy during the Republican presidencies of Ronald Reagan and George Bush were the superrich: "It was the truly wealthy, more than anyone else, who flourished under Reagan.... The 1980s were the triumph of upper America ... the political ascendancy of the rich, and a glorification of capitalism, free markets, and finance."
When government policy enriched the already rich, it was not called welfare. This was not as obvious as the monthly checks to the poor; it most often took the form of generous changes in the tax system.
In America: Who Really Pays The Taxes?, two investigative reporters with the Philadelphia Inquirer, Donald Barlett and James Steele, traced the path by which tax rates for the very rich got lower and lower. It was not the Republicans but the Democrats -- the Kennedy-Johnson administrations -- who, under the guise of "tax reform," first lowered the World War II-era rate of 91 percent on incomes over $400,000 a year to 70 percent. During the Carter Administration (though over his objections) Democrats and Republicans in Congress joined to give even more tax breaks to the rich.
The Reagan administration, with the help of Democrats in Congress, lowered the tax rate on the very rich to 50 percent and in 1986 a coalition of Republicans and Democrats sponsored another "tax reform" bill that lowered the top rate to 28 percent. Barlett and Steele noted that a schoolteacher, a factory worker, and a billionaire could all pay 28 percent. The idea of a "progressive" income in which the rich paid at higher rates than everyone else was now almost dead.
As a result of all the tax bills from 1978 to 1990, the net worth of the "Forbes 400," chosen as the richest in the country by Forbes Magazine (advertising itself as "capitalist tool"), was tripled. About $70 billion a year was lost in government revenue, so that in those thirteen years the wealthiest 1 percent of the country gained, a trillion dollars.
As William Greider pointed out, in his remarkable book Who Will Tell The People? The Betrayal of American Democracy:
For those who blame Republicans for what has happened and believe that equitable taxation will be restored if only the Democrats can win back the White House, there is this disquieting fact: The turning point on tax politics, when the monied elites first began to win big, occurred in 1978 with the Democratic party fully in power and well before Ronald Reagan came to Washington. Democratic majorities have supported this great shift in tax burden every step of the way.
Not only did the income tax become less progressive during the last decades of the century, but the Social Security tax became more regressive. That is, more and more was deducted from the salary checks of the poor and middle classes, but when salaries reached $42,000 no more was deducted. By the early 1990s, a middle-income family earning $37,800 a year paid 7.65 percent of its income in Social Security taxes. A family earning ten times as much, $378,000 paid 1.46 percent of its income in Social Security taxes.
The result of these higher payroll taxes was that three-fourths of all wage earners paid more each year through the Social Security tax than through the income tax. Embarrassingly for the Democratic party, which was supposed to be the party of the working class, those higher payroll taxes had been put in motion under the administration of Jimmy Carter.
In a two-party system, if both parties ignore public opinion, there is no place voters can turn. And in the matter of taxation, it has been clear that American citizens have wanted taxes that are truly progressive. William Greider informs us that shortly after World War II, when rates on the very rich were up to 90 percent, a Gallup poll showed that 85 percent of the public thought the federal tax code was "fair." But by 1984, when all those tax "reforms" had been put into effect by Democrats and Republicans, a public opinion survey by the Internal Revenue Service found that 80 percent of those polled agreed with the statement: "The present tax system benefits the rich and is unfair to the ordinary working man and woman."
By the end of the Reagan years, the gap between rich and poor in the United States had grown dramatically. Where in 1980, the chief executive officers (CEOs) of corporations made forty times as much in salary as the average factory worker, by 1989 they were making ninety-three times as much. In the dozen years from 1977 to 1989, the before-tax income of the richest 1 percent rose 77 percent; meanwhile, for the poorest two-fifths of the population, there was no gain at all, indeed a small decline.
And because of favorable changes for the rich in the tax structure, the richest 1 percent, in the decade ending in 1990, saw their after-tax income increase 87 percent. In the same period, the after-tax income of the lower four-fifths of the population either went down 5 percent (at the poorest level) or went up no more than 8.6 percent.
While everybody at the lower levels was doing worse, there were especially heavy losses for blacks, Hispanics, women, and the young. The general impoverishment of the lowest-income groups that took place in the Reagan-Bush years hit black families hardest, with their lack of resources to start with and with racial discrimination facing them in jobs. The victories of the civil rights movement had opened up spaces for some African-Americans, but left others far behind.
At the end of the eighties, at least a third of African-American families fell below the official poverty level, and black unemployment seemed fixed at two and a half times that of whites, with young blacks out of work at the rate of 30 to 40 percent. The life expectancy of blacks remained at least ten years lower than that of whites. In Detroit, Washington, and Baltimore, the mortality rate for black babies was higher than in Jamaica or Costa Rica.
Along with poverty came broken homes, family violence, street crime, drugs. In Washington, D.C., with a concentrated population of black poor within walking distance of the marbled buildings of the national government, 42 percent of young black men between the ages of eighteen and thirty-five were either in jail, or out on probation or parole. The crime rate among blacks, instead of being seen as a crying demand for the elimination of poverty, was used by politicians to call for the building of more prisons.
The 1954 Supreme Court decision in Brown v. Board of Education had begun the process of desegregating schools. But poverty kept black children in ghettos and many schools around the country remained segregated by race and class. Supreme Court decisions in the seventies determined that there need be no equalization of funds for poor school districts and rich school districts (San Antonio Independent School District v. Rodriguez) and that the busing of children need not take place between wealthy suburbs and inner cities (Milliken v. Bradley).
To admirers of free enterprise and laissez-faire, those people were poor who did not work and produce, and so had themselves to blame for their poverty. They ignored the fact that women taking care of children on their own were working very hard indeed. They did not ask why babies who were not old enough to show their work skills should be penalized -- to the point of death -- for growing up in a poor family.
Ironically, it was Republican Kevin Phillips who, analyzing the Reagan years, wrote: "Less and less wealth was going to people who produced something ... disproportionate rewards to society's economic, legal and cultural manipulators -- from lawyers to financial advisers."