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Voters Want Growth, Not Income Redistribution
Written By : Michael Barone

“A 2008 election widely regarded as heralding a shift toward the more government-friendly public sentiment of the New Deal and Great Society eras seems to have yielded just the reverse.”

So writes William Galston, Brookings Institution scholar and deputy domestic adviser in the Clinton White House, in the New Republic. Galston, one of the smartest political and policy analysts around, has strong evidence for this conclusion.

He cites a recent Gallup poll showing that while 82 percent of Americans think it’s extremely or very important to “grow and expand the economy” and 70 percent say it’s similarly important to “increase equality of opportunity for people to get ahead,” only 46 percent say it’s important to “reduce the income and wealth gap between the rich and the poor,” and 54 percent say this is only somewhat or not important.

In addition, by a 52 to 45 percent margin, Americans see the gap between the rich and the poor as an acceptable part of the economic system rather than a problem that needs to be fixed. In 1998, during the high-tech economic boom, Americans took the opposite view by the same margin.

As Galston notes, these findings suggest that Obama’s much-praised speech at Osawatomie, Kan., decrying inequality, “may well reduce his chances of prevailing in a close race.” Class warfare politics, as I have noted, hasn’t produced a Democratic presidential victory in a long, long time.

Where Galston misses a step, I think, is that he seems to regard the move away from redistributionist politics in this time of economic stagnation as an anomaly in need of explanation. He seems to share the Obama Democrats’ assumption that economic distress would make Americans more supportive of, or amenable to, big government policies.

That, after all, is what we have all been taught by the great and widely read New Deal historians, and that lesson has been absorbed by generations of politicians and political pundits.

I believe that historians have taught the wrong lessons about the 1930s. And I believe there is a plausible and probably correct reason why economic distress has apparently moved Americans to be less rather than more supportive of big government.

To understand the lessons of the 1930s, you need to read the election returns. Franklin Roosevelt’s big victory in 1932 was a massive rejection of Republicans across the board. Republicans lost huge ground in urban and rural areas, in the West and Midwest and most of the East, even in their few redoubts in the South.

In 1936, FDR won re-election by a slightly larger margin, but with a different coalition. The rural and small town North returned to its long Republican allegiance, while Democrats made further big gains among immigrants and blue-collar workers in big cities and factory towns.

The New Deal historians attributed these gains to Roosevelt’s economic redistribution measures: high tax rates on high earners, the pro-union Wagner Act, Social Security. These laws — the so-called Second New Deal — were passed in 1935. They replaced the different, non-redistributionist policies of the First New Deal that stopped the deflationary downward spiral underway when Roosevelt took office.

The problem with the historians’ claims is that the shifts in the electorate apparent in 1936 also are apparent in the 1934 off-year elections. Democrats won big that year, but compared to 1932, they lost ground in rural areas and small towns and gained much ground in big cities and factory towns.

The 1936 realignment happened in 1934. It could not have been caused by redistributionist Second New Deal legislation because it hadn’t been passed before November 1934.

So why should voters be leery of economic redistribution in times of economic distress? Perhaps because they realize that they stand to gain much more from a vibrantly growing economy than from redistribution of a stagnant economic pie. A growing economy produces many unanticipated opportunities. Redistribution edges toward a zero-sum game.

They miss growth when it is absent. They don’t appreciate it so much when it is happening.

Roosevelt’s 1934 and 1936 victories were won in periods of growth. After the economy shifted into recession in 1937, New Deal Democrats fared much worse, and Roosevelt won his third and fourth terms as a seasoned wartime leader, not an economic redistributor.

Lesson: If you want redistribution, you’d better first produce growth. Which the Obama Democrats’ policies have failed to do.

Michael Barone, senior political analyst for The Washington Examiner (www.washingtonexaminer.com), is a resident fellow at the American Enterprise Institute, a Fox News Channel contributor and a co-author of The Almanac of American Politics.

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  • Anonymous

    Banking on the New Deal politics of the 1930s is desperation territory for Democrats. Most of FDRs policies failed, and it was because the government and world economic system was essentially groping around in the dark trying to solve an unprecedented problem.

    We know all the causes and solutions today. The only obstacle are the people who see the crisis as an opportunity (now where have we heard that?) and want to benefit personally and politically from the steps taken.

    Keynesian economics is a proven failure. It has never worked as advertised. Its only real purpose is to allow government and crony corporations (the ones that get bailouts) to inflate and print their way out of debt. $1 of debt from the 1980s now only costs about .35 cents to pay off.

    The only solution is and always has been economic output through production. Jobs. Exports. Services. Playing a shell game with Chinese money and the printing press will never solve anything, no matter how many liberal “economists” endorse it.

    • JoeBritton

      “Keynesian economics is a proven failure.”

      Well in certain contexts you’re correct. I remember when Reagan ballooned the military budget in hopes of lowering the UE rate. Well the UE decreased, but he initiated the yearly budget deficits we now live with and the burgeoning National Debt.

      • Anonymous

        So he is responsible for future presidents over spending?  Gottcha

        • http://www.wordaroundthenet.com Christopher Taylor

          Ronald Reagan’s ghost compelled President Obama to increase the debt by trillions, he was forced to!

  • JoeBritton

    Michael, it was actually a Republican president, T. Roosevelt, who began the redistribution craze by passing the progressive tax and estate laws, because he feared the US was turning into a mid19th century English style two class society consisting of aristocrats and paupers.

    • Anonymous

      There have been numerous instances, in the past, where a repub did something he shouldnt have.  That doesnt make it correct.  And conservatives do not bow down at the alter, like liberals, of their respective parties.  So WTF is your point?  Your deeply in favor of progressive tax?

      • JoeBritton

        Another poor man dying to become a rich man’s pawn. Ya gotta love it. The Republicans are so easy to depict as fools.

        • Bill Dalasio

          You can tell shergald’s really out of intellectual ammunition when he resorts to the “poor man defending rich men” claim.  When he can’t muster a legitimate argument, at least he can rely on ad hominem.

          • vegeta1

            I’d like you to show me where janzillysweetgaldbritton has ever posted a legitimate argument. pointless cut and paste jobs and ad hominem attacks are about all this dipshit has ever mustered up. I wonder how much cash it take to get Mr Hawkins to give this retarded troll the permabanned treatment?

          • Martin Hale

            And “rich man/poor man” is one of his favourite ad hominems.  Last time I queried the Sherbot™ database, I think those ‘rich man/poor man” comments were almost a third of the total.  Of all the things you can accuse Shergald of being, creative isn’t one of them. 

          • Brewzer

            Flagged! Mods please, this Martin Hale guy is a terrorist. His comments need to be removed because of his hate for America. I have went ahead and flagged this garbage for obvious reasons.

          • Jorge

            He also commits the fallacy of false dichotomy (i.e. if you are not rich you are poor and vice-versa).

  • http://www.wordaroundthenet.com Christopher Taylor

    The problem with this is that too many people are fond of redistribution when it comes to them.  They oppose government spending in most areas, but support it when the money comes to benefit them somehow.  They get mad at shrimp on treadmills but support the new government building in their town.  They scream at “Piss Christ” but support the new doggy walking park.

    In other words, they aren’t opposed in principle to big government spending and income redistribution, they’re opposed to other people getting that money.

  • Jorge

    Income isn’t distributed. It is earned!!

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