INCOME INEQUALITY

Another true story:

On January 5, 1914, Ford Motor General Manager, James Couzens, beset by guilt over income disparities between Ford executives and their employees, made international news, earning the scorn of Wall Street and the business community, by doubling wages of his workers overnight. The Wall Street Journal called Couzens “criminal” - - for sharing profits with labor.

However, when his employees could afford to buy the cars they themselves made, EVERYONE gained, including Couzens.

Today, we have a reincarnation of James Couzens, in the person of truth-telling Billionaire Nick Hanauer (onYouTube and in Politico) .

“ The fundamental law of capitalism must be: If workers have more money, businesses have more customers. Which makes middle-class consumers, not rich business people like us, the true job creators. Which means a thriving middle class is the source of American prosperity, not a consequence of it. The middle class creates us rich people, not the other way around.” (from Politico)

"Paying high wages, is behind the prosperity of this country." – Henry Ford

“Money possesses no value other than by circulation.” - Abraham Lincoln

As Hanauer explains, we’re all in this, together.

Many of Dan’s fellow Progressives believe that every goal is best reached by fighting for it. We challenge such thinkers to show us the evidence that their fights, recently, have done anything at all to reduce income inequality. There have been some local successes in increasing the minimum wage. But show me any success on the national level. There’s been almost none, since the ACA, despite a ton of talk.

Dan’s negotiation training with Roger Fisher, at the Harvard Law School taught the value of identifying how the self-interest of our counterparties – the GOP, in this case - must be satisfied, not by concessions and “caving” in a Zero-Sum, winner-take-all clash, but by bringing her to understand how her own interests are served by a deal, good for both parties. Counterparties in a negotiation never give in “because it’s the right thing to do”. They give in when it’s in their own self interest to give what the other side wants [ in this instance, we want LESS income inequality, which, the history or James Couzens, Nick Hanauer, and other “good” billionaires, demonstrates, is also a good outcome for the super-rich. The GOP has to be educated with the overwhelming evidence: when the Middle Class prospers, everyone at every level benefits. The alternative, feel-good approach of public criticism and condemnation of the rich, as viscerally satisfying as that may be, produces poor or negligible results.

Furthermore, we underestimate the profound economic illiteracy of the GOP. Most of them don’t understand the basic economic dynamic of the “ multiplier effect”.

But it won’t be enough to educate them. Simply being “corrected” and instructed by us, their political adversaries, will not make a bit of difference.

Because Congress is organized, NOT for Enlightenment, nor for True Public Service. It is organized for winning, in a Zero-Sum Game, between the Partisan GOP and the Partisan Democrats.

In the words of top Clinton advisor, Don Baer :

“…one factor that unites Americans is their belief…that ‘politicians do more to foster disunity than any other figures.”

The elimination of the dominant control of Government by divisive political parties, is also an Idea who time has come.

“…people are … actually sick and tired of both parties.” Reince Priebus Chairman GOP 2/21/2016

The practicable, based-on-precedent, elimination of the Party structure in Congress can likely be accomplished in 1- 4 years. Then the Members will be freed to use their considerable skills and brains to think for themselves, instead of following the orders of their erstwhile divisive Whips, and Partisan Majority & Minority leaders (who we hope will voluntarily cede their power and privilege for the good of the country, following the exemplary George Washington). (Or, the Members, seeking meaningful careers as Congresspersons, in which they regain Agency, and cease being sheep, may simply revolt).

Can we survive long as One Nation, going on as we’ve been?

Those divisive and partisan “leadership” “offices” – Majority / Minority / Leaders / Whips -- were created out of thin air in 1899. They are not specified in the Constitution. And can be eliminated by a simple Congressional rule change. There will be resistance. 100 years ago, privileged and powerful men, similarly resisted giving Democracy to women. They will resist, again.

To read about the real-world, Large-Scale, highly successful “Pilot Project” for this reform, read the story in The Atlantic (2015) , or in Politico ( 2014) , or listen, on-line, to NPR.

In a “healed” Congress, of Independent-thinking, autonomous actors, there will be no party-line pressure to do the wrong thing. Legislative efforts to strengthen the entire economy, by boosting the incomes of Middle and Lower income Americans, who in turn drive the economically vital ‘Multiplier Effect” – such common-sense legislative efforts will no longer die, unnourished in a parched landscape of partisanship.