Lincoln's "Trickle-Up" Economics
Abraham Lincoln was a strange sort of Republican. He had been a Whig until the Republican Party was founded in 1854. He stood for things which are heretical to today's G.O.P. Most Americans are familiar with the most famous of Lincoln's speeches, the Gettysburg Address, which concludes with these words: “that this nation, under God, shall have a new birth of freedom –
and that government of the people, by the people, for the people, shall not
perish from the earth.”
Lincoln, showing the strains of his Presidency. According to Frank Goodyear, the National Portrait Gallery's photo curator, "This is the last formal portrait of Abraham Lincoln before his assassination. I really like it because Lincoln has a hint of a smile. The inauguration is a couple of weeks away; he can understand that the war is coming to an end; and here he permits, for one of the first times during his presidency, a hint of better days tomorrow." The photographer was Alexander Gardner.
The
first two attributes of government which Lincoln mentioned were quite
understandable: “of the people” described who was being governed, and “by the
people” described the democratic process through which the government was
elected. “For the people,” however,
introduced a new concept, one that included in the role of government doing
things for its citizens. Up until
then, government was expected to do little beyond defending the country and
collecting taxes. Lincoln was a firm
believer in the “middle class,” and he felt, probably because of his humble
origins, that all Americans should have the opportunity to climb the ladder of
success, and that it was included in the role of government to make that
ascent easier, removing obstacles in the way particularly when individuals were unable to
do so themselves.
Although
Karl Marx published “Das Kapital” after Lincoln’s death, similar economic ideas
were floating around during the middle of the Nineteenth Century. Indeed, Lincoln believed in “capitalism” but
gave it a secondary role to “labor.” In
1861, his first Annual Message to Congress included the following: “Labor is
prior to, and independent of, capital.
Capital is only the fruit of labor, and could never have existed if
labor had not first existed. Labor is
the superior of capital, and deserves much the higher consideration. Capital
has its rights, which are as worthy of protection as any other rights. Nor is it denied that there is, and probably
always will be, a relation between labor and capital, producing mutual
benefits.”
Read that quotation to any of those aspiring to the Presidency in 2016 and, except for Bernie Sanders, all of the candidates would declare that you fail to subscribe to traditional American values. Yes, probably to the values of Ronald Reagan, but not to those of Abraham Lincoln. Lincoln advocated “trickle-up” economics where business flourishes only when labor does, the reverse of the G.O.P.’s affection for supply-side “trickle-down” economics where the opposite is true. Strange kind of Republican, this Lincoln fellow. And in the 1860's, when the economy of the Southern states was based on slave labor and the perpetuation of a land-owning aristocracy, these words were hostile to them, as they are to most Republicans today.
Read that quotation to any of those aspiring to the Presidency in 2016 and, except for Bernie Sanders, all of the candidates would declare that you fail to subscribe to traditional American values. Yes, probably to the values of Ronald Reagan, but not to those of Abraham Lincoln. Lincoln advocated “trickle-up” economics where business flourishes only when labor does, the reverse of the G.O.P.’s affection for supply-side “trickle-down” economics where the opposite is true. Strange kind of Republican, this Lincoln fellow. And in the 1860's, when the economy of the Southern states was based on slave labor and the perpetuation of a land-owning aristocracy, these words were hostile to them, as they are to most Republicans today.
To
help Americans achieve middle-class success, Lincoln was a supporter of a
strong central banking system, improvements in roads, canals and railroads, and
most of all enabling working class people to have a fair shot at climbing the
ladder by not having to compete with that portion of our economy which was
based on slavery. The Civil War was
fought, not to end slavery, a factor which initially was barely incidental to it, but
to prevent the spread of slavery to the newly opened Western territories. If this had been allowed to happen, economic
opportunity for the “middle class” would have been choked off in those areas,
as it was in the South, where no white American could rise to that "middle class" because of the advantage of the "free labor" held by slave owners.
I’ve just finished reading “A Just and Generous Nation” by Harold Holzer and Norton Garfinkle, in which a lot of these ideas are expounded in great detail.
Theodore Roosevelt, Woodrow Wilson, Franklin Roosevelt and Bill Clinton are described by the authors as carrying on the fight for American opportunity which Lincoln initiated, although each did so in a changing economic environment. You may not agree with these two scholars, but try to read the book.
I’ve just finished reading “A Just and Generous Nation” by Harold Holzer and Norton Garfinkle, in which a lot of these ideas are expounded in great detail.
Theodore Roosevelt, Woodrow Wilson, Franklin Roosevelt and Bill Clinton are described by the authors as carrying on the fight for American opportunity which Lincoln initiated, although each did so in a changing economic environment. You may not agree with these two scholars, but try to read the book.
Jack Lippman
This past weekend the Pittsburgh
Steelers knocked the Cincinnati Bengals out of the National Football League
playoffs with a last second field goal.
They were only able to do so because a few plays previously, a vicious
hit on a Steeler receiver by a Bengal defender was declared to be “pass
interference” putting the ball within range of the goalposts.
It was a rough game
The next day, the Seattle Seahawks similarly put the Minnesota Vikings in the position to win their playoff game with a last second field goal because of a penalty for illegal defensive blocking which drew a fifteen yard penalty. Fortunately for the Seahawks, the Viking kicker came up with a case of nerves and badly missed the uprights from little more than extra point distance.
In watching these games, it is
pretty clear that professional football is being played, except for passers,
receivers and running backs, by a bunch of violent thugs who would be more
comfortable on the lawless streets of some of our big cities where violence,
and often firearms, are the rule rather than the exception. This is particularly true at crucial moments
in tight or meaningful games. The recent movie, “Concussion,” deals with the
long term brain damage which professional football players experience from
dealing with violence on the field.
Sooner or later, professional football as we know it, will fade from the
sporting scene here, to be replaced by the kind of football (we call it soccer)
played in every other country in the world.
I suspect this will happen over the next fifty years. And college football will soon follow.
JL
Greg’s face looked drawn, but not unhappy.
Go West, Young Man, Go West
(This short story, written by me in 2011, represents the kind of problem Abraham Lincoln worked to solve as President. The cheap labor costs enabled by slavery in 1860 are analagous to the cheap labor costs enabled by lower standards of living in Asia. A future American President will have to come up with ways for folks like Greg Witkowski to find opportunity for growth and success in this country. Congress can help too.)
It was exactly 5:45 PM when the factory whistle sounded for the last time.
TV crews and reporters were gathered at the gate of Westlake Manufacturing’s
last remaining plant in the United States. A TV reporter, microphone in
hand, ran up to Greg as he came through the open gate.
“Sir,”
he called out. “Can I speak to you for a moment”?
“Sure,’
the not particularly happy looking middle-aged man replied.
Holding
the mike between them him as the cameraman focused in on the scene, the
reporter continued. “This is Lou Brandson, CNN, and I am talking to one
of the last employees leaving the Westlake Manufacturing Plant here in suburban
Pittsburgh, the plant you’ve been hearing about so much in the news lately.
Sir, what is your name and how long have you been with Westlake”?
“Greg
Witkowski, and I have worked here for twenty years, last five as a senior line
inspector.”
“Well,
how does it feel, Greg, to be walking out of your plant’s gates for the last
time? You know, this is a memorable date.”
Greg’s face looked drawn, but not unhappy.
“Yeah,
they told us about it at a meeting last week. We all knew it was coming,
what with our plant being the last manufacturing plant left in the United
States. Places have been closing all over the country for years, we know,
but we kind of figured this place would somehow manage to hang on. I
guess it’s a sad day.”
“Why,”
the reported continued, “did you feel your plant would survive the changes in
our economy which, effective this moment, have moved 100% of America’s
manufacturing jobs overseas”?
Greg
replied, “Well, we made a pretty complicated electronic gizmo here and we never
figured they’d ever find the skills overseas to equal what we do here, but I
guess they did.”
“Thank
you, Greg Witkowski, an ex-employee of the last remaining manufacturing plant
in the United States, which officially closed its doors today. And now back to
Soledad O’Brien in New York.”
Once
off the air, the reporter turned to Greg. “What are you going to do now,
Mr. Witkowski? Did they give you a decent severance package? Are
they retraining you in a non-manufacturing job?”
“Oh,
sure. I get four months pay because of how long I worked here, but the
benefits I get to keep ain’t much. They talked some about training us for
computer jobs in marketing, but they shipped those jobs to India last year and
that fell through. I looked around outside around here too, but I didn’t
want to sell cemetery plots or work in a fast food place. I could have
got a lot of jobs like that. But don’t worry about me. I saw it coming
and made plans.”
The
reporter, sensing a story, inquired, “What then, are you going to do now, Mr.
Witkowski”?
Greg
smiled at the reporter and reached into his jacket pocket. He pulled out
a manila envelope and opened it.
“Don’t
worry about me,” he said. “I’ve been following up all the want ads and
the trade magazines and I got a promise of a new job, doing more or less what
I’ve been doing these past five years. Remember that old saying, ‘Go
West, Young Man, Go West’? Well, I ain’t such a young man anymore, but I
still can go west, very far west in fact.”
With
that, the Westlake ex-employee pulled from the manila envelope the four airline
tickets which would take him and his family to their new home in northwest
Hunan province where the Chinese Ministry of Electronic Manufacturing
Operations had promised him a job as line inspector in their new plant which
was scheduled to open next month.
“There’s
your story, Mr. Reporter. Hello, China, Good-by, USA.”
JL
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