James
Carville famously kept the 1992 Clinton campaign on message with the
simple refrain, “It’s the economy, stupid!” That’s just as true for
politicians today as it was two decades ago.
However, many politicians, particularly Republicans,
tend to misunderstand all that Carville’s phrase encompasses. It’s not
just about economic growth. Fairness is a big part of the equation. Most
Americans see both growth and fairness as important.
Today, just 35 percent of voters believe the economy is fair to
middle-class Americans. Only 41 percent believe it is fair to those who
are willing to work hard.
Some politicians, particularly Democrats, are better at acknowledging
the importance of fairness, but they have a pretty limited definition
of what it means. They complain about income inequality but ignore the
larger context.
For most Americans, the context is very important. If a CEO gets a
huge paycheck after his company received a government bailout, that’s a
problem. People who get rich through corporate welfare schemes are seen
as suspect. On the other hand, 86 percent believe it’s fair for people
who create very successful companies to get very rich.
In other words, it’s not just the income; it’s whether the reward
matched the effort. People don’t think it’s a problem that Steve Jobs
got rich. After all, he created Apple Computer and the iPad generation.
But there was massive outrage about the bonuses paid to AIG executives
after that company was propped up by the federal government.
On a more routine basis, most Americans are offended by the revolving
door between Washington and Wall Street. The practice of working for
the government to network and then cash in with a firm that needs your
government contacts is seen as fair only by those who practice it.
The revolving door hints at the larger problem. The United States is
supposed to be a land of opportunity, where everyone can pursue their
dreams. Throughout our history, many have started with nothing and risen
to the top. But those on top today are busy rewriting the rules to
limit entry into their club.
In her recent Daily Beast column, “America’s New Mandarins,” Megan
McArdle describes a new elite that rates education credentials more
highly than any other skills. In this world, having a Harvard diploma
means more than being willing to work hard or contributing something of
value. Most Americans don’t share this view. Only 3 percent believe Ivy
League schools produce better workers.
Given a choice between a worker who gets more done and someone who
has a higher level of education, only 9 percent think the person with
the higher level of education should be paid more. Seventy-one percent
place a higher value on the person who gets more done.
In the New Mandarin world described by McArdle, the best jobs are
reserved for those who attended the most prestigious schools. Entry into
such schools is restricted to those with wealth and connections. The
rest of us are expected to trust the elites to decide what’s fair.
A better approach is to focus on what people accomplish. That
gives everyone a chance to succeed. It is one essential ingredient to
creating a society that is fair to the middle class and to those who are
willing to work hard.
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