The Price of Civilization

1. America's economic crisis stems from a moral crisis and loss of civic virtue

At the root of America's economic crisis lies a moral crisis: the decline of civic virtue among America's political and economic elite.

Loss of social responsibility. The economic crisis reflects a deeper crisis of values, with many elites abandoning their commitment to social responsibility in pursuit of wealth and power. This moral decline has led to a breakdown in the social contract and erosion of trust between citizens and institutions.

Consequences of unchecked greed. The unleashing of unconstrained greed has resulted in:

• Corporate criminality and deceit
• Politics dominated by special interests
• Income stagnation for much of the population
• Untold riches concentrated at the very top

To achieve meaningful economic recovery, America must restore an ethos of social responsibility and civic virtue among its leaders and citizens. This requires rekindling a sense of shared purpose and collective responsibility for the common good.

2. The free market alone cannot solve all economic problems

A society of markets, laws, and elections is not enough if the rich and powerful fail to behave with respect, honesty, and compassion toward the rest of society and toward the world.

Limits of free markets. While markets are efficient at allocating many resources, they fail to address critical issues:

• Provision of public goods like infrastructure, education, and scientific research
• Environmental protection and sustainability
• Fair distribution of income and opportunity
• Stability of the financial system

Need for mixed economy. A combination of market forces and government action is necessary to achieve society's goals of efficiency, fairness, and sustainability. Government must play an active role in:

• Investing in public goods and human capital
• Regulating negative externalities like pollution
• Ensuring a basic social safety net
• Promoting long-term economic stability

The idea that free markets alone can solve all economic problems is a fallacy. Effective governance requires balancing market forces with public purpose to create a prosperous and just society.

3. Government's retreat from public purpose has led to economic decline

Since the early 1980s, Washington has stopped serving as a national economic problem solver.

Shift in governance philosophy. Starting in the 1980s, a new political consensus emerged that government was the problem rather than the solution to economic challenges. This led to:

• Tax cuts, especially for the wealthy
• Deregulation of key industries
• Privatization of public services
• Neglect of public investments

Consequences of government retreat. The abandonment of active economic governance has resulted in:

• Crumbling infrastructure
• Declining educational performance
• Loss of technological leadership in key industries
• Growing income inequality
• Financial instability

To restore American prosperity, government must reclaim its role as an active problem-solver and investor in the nation's future. This requires reversing decades of disinvestment and renewing commitment to public purpose.

4. Social divisions and globalization have reshaped American politics and economy

The civil rights movement caused a nearly immediate and decisive political realignment throughout the country.

Changing social landscape. Several major trends have reshaped American society and politics:

• Civil rights movement and racial tensions
• Rise of the Sunbelt and decline of the Snowbelt
• Surge in Hispanic immigration
• Suburbanization and residential sorting by class

Impact of globalization. The integration of the global economy has profoundly affected the U.S.:

• Loss of manufacturing jobs to developing countries
• Downward pressure on wages for low-skilled workers
• Increased economic insecurity for the middle class
• Greater returns to capital vs. labor

These social and economic shifts have heightened divisions within American society and contributed to political polarization. Addressing these challenges requires policies that promote shared prosperity and social cohesion in an era of global economic integration.

5. Corporate influence has corrupted American democracy

America's economic failures are therefore at least as much political as economic.

Rise of the corporatocracy. The outsized influence of corporate interests in politics has led to:

• Policies favoring the wealthy and powerful
• Neglect of public needs and long-term investments
• Regulatory capture in key industries
• Erosion of public trust in government

Mechanisms of corporate power:

• Campaign finance and lobbying
• Revolving door between government and industry
• Corporate control of media
• Use of think tanks and PR to shape public opinion

Breaking the grip of corporate power on American democracy is essential for restoring effective governance. This requires campaign finance reform, stronger ethics rules, and renewed civic engagement to hold leaders accountable.

6. Consumerism and media saturation have distracted citizens from civic engagement

We have created a nation of remarkable wealth and productivity, yet one that leaves its impoverished citizens in degrading life conditions and almost completely ignores the suffering of the world's poorest people.

Culture of distraction. Americans are increasingly disengaged from civic life due to:

• Excessive focus on consumption and material goods
• Bombardment with advertising and entertainment media
• Decline in social capital and community involvement
• Information overload and shortening attention spans

Consequences of civic disengagement:

• Reduced political participation
• Lack of informed public debate on key issues
• Greater susceptibility to manipulation by special interests
• Neglect of long-term challenges facing society

Rebuilding civic engagement requires cultivating mindfulness and critical thinking skills to resist the pressures of consumerism and media saturation. Citizens must reclaim their role as active participants in democracy rather than passive consumers.

7. Restoring prosperity requires mindful citizenship and balanced economic policies

The mindful society is not a specific plan but rather an approach to life and the economy.

Cultivating mindfulness. Restoring American prosperity requires a more mindful approach to citizenship and economic life, focused on:

• Personal moderation and self-awareness
• Compassion and cooperation with others
• Stewardship of nature and the future
• Civic engagement and shared problem-solving

Balancing market and government. Effective economic policy must strike a balance between:

• Market efficiency and innovation
• Public investment in human and physical capital
• Environmental sustainability
• Fair distribution of economic gains

By cultivating personal and civic virtue, Americans can rebuild the social foundation for effective governance and shared prosperity. This mindful approach offers an alternative to both unfettered capitalism and heavy-handed statism.

8. Higher taxes on the wealthy are necessary to fund vital public investments

It is high time that super-rich taxpayers picked up much of this cost.

Need for increased revenue. Addressing America's challenges requires increased public investment, which must be funded through higher taxes, particularly on the wealthy:

• Ending Bush-era tax cuts for high earners
• Closing loopholes and tax havens
• Implementing a wealth tax on large fortunes
• Raising corporate tax rates

Benefits of progressive taxation:

• Funding for education, infrastructure, and research
• Reduced budget deficits and long-term fiscal stability
• Mitigation of extreme income inequality
• Restoration of sense of shared sacrifice and social responsibility

Increasing taxes on those who have benefited most from America's prosperity is both fiscally necessary and morally just. It is essential for rebuilding the country's economic foundation and social cohesion.

9. Effective government requires long-term planning and public management reform

Government has been outsourced to private contractors, the ones who pay the campaign bills for Congress and the White House, which sign the checks for the contracts.

Restoring public management. Effective governance requires rebuilding public sector capacity:

• Reducing political appointments in favor of professional civil service
• Implementing rigorous oversight of government contractors
• Investing in training and retention of skilled public managers
• Adopting best practices from high-performing governments globally

Importance of long-term planning. Addressing complex challenges requires looking beyond short-term political cycles:

• Developing multi-year plans for major policy initiatives
• Creating institutions for long-term strategic planning
• Improving use of expert knowledge in policymaking
• Adopting rigorous methods to evaluate policy outcomes

Reforming public management and adopting a long-term perspective are essential for restoring the government's problem-solving capacity. This requires overcoming the short-termism and privatization mindset that has dominated in recent decades.

10. The Millennial generation offers hope for renewed civic engagement and reform

The Millennials are different from their predecessors.

Characteristics of Millennials:

• More ethnically diverse and socially liberal
• Better educated but facing economic challenges
• More trusting of government and supportive of activist policies
• Technologically savvy and globally connected

Potential for reform. The Millennial generation offers hope for political renewal:

• Greater openness to progressive policies
• Comfort with diversity and global engagement
• Skill with new technologies and forms of organizing
• Desire for meaningful work and social impact

The rising influence of Millennials in politics and society offers an opportunity to overcome partisan gridlock and address long-neglected challenges. Their values and skills align well with the needs of a more mindful and sustainable economy.

Last updated: October 8, 2024