Changing Times

Since 1999, the U.S. suicide rate has risen almost 28%, according to figures from the U.S. Centers for Disease Control (CDC), a rate almost 50% higher than the global average rate. The increase in the rate centers largely on middle-aged white Americans over 50 and among male teenagers 15-19. Although overall teenage suicide rates are still below the national average, they’ve doubled over the past ten years.

What both of these groups have in common is a growing mismatch between personal expectations and an increasingly bleak reality for Americans who do not have the skills to compete for jobs, as well as those who do not have the resources to obtain those skills. Suicide rates for middle aged Americans who do not have a college degree are now more than twice as high as for those who do.

Yet there persists in the United States the myth of the American dream, that anyone can work hard and pull themselves out of poverty. Current statistics show that today only three percent of individuals born in the bottom 20% of the population in income terms will rise to the top 20%. Studies by the Urban Institute and the US Treasury have both found that about half of the families who start in either the top or the bottom quintile of the income distribution are still there after a decade, and that only 3 to 6% rise from bottom to top or fall from top to bottom. The U.S. now has the lowest intergenerational income mobility of any developed country.

How did this happen? It happened because the myth of the American Dream worked, at least in a way, while the U.S. was still a nation with a frontier. Now that the frontier doesn’t exist, it’s much harder to get out of poverty without skills, and skills cost money. Other developed countries offer their poorest citizens more economic, social, healthcare, and educational support.

Because comparatively few poor Americans have access to those resources, and discover that things are not going to get better, more of them have a harder and harder time making ends meet, and, in the end more of them kill themselves.

Yet too many people in the U.S. cling to the myth that anyone can “make it” if they just work hard enough. It’s not true. What is true is that most people with a college education or high level technical skills can make it if they work really hard. The problem is that too many Americans don’t have access to that level of education and training, and, these days, many who do can only get such education by incurring incredible levels of debt.

The United States is no longer a frontier nation. We’re a developed nation, and we need to realize that in our social, business, and educational structures. If the unrest among minorities and the growing feminist stridency don’t get your attention, then perhaps the suicide numbers alone should tell us that.

A Trade War Backfire?

Recently, I’ve heard and seen a lot of negative commentary about how Trump’s stance on tariffs is going to backfire, both economically and politically, but most of that commentary isn’t looking at why Trump is doing what he’s doing.

In the most recent issue of New Scientist [odd, I know], a French economist makes a point that most commentators are overlooking — that most of the economic damage will impact geographic areas in the U.S. that are Democratic strongholds, while strengthening Trump’s political position among his supporters.

In addition, there’s the simple point that Trump knows that most of his supporters don’t know or don’t care about the complexities of economics and trade. One automobile analyst made the point that for every U.S. steel job saved, 16 “downstream” auto jobs could be lost. While those figures are likely worst-case, there isn’t much doubt that increased tariffs will cost the U.S. more jobs than they save, as well as push up the price of U.S. goods. The thought of Mexican tariffs on U.S. agricultural products has already panicked the farm sectors, and Chinese tariffs on soybeans have already impacted U.S. soybean producers negatively. According to U.S. aluminum fabricators, 97% of aluminum jobs in the U.S. depend on imported aluminum, and tariffs will cost U.S. fabricating jobs without offsetting gains in aluminum smelting. There’s already a long list of economic negatives to Trump’s tariffs, with more to come.

But these facts don’t matter to Trump’s base. For the most part, they firmly believe that foreigners are the cause of many of our problems, from immigration to off-shoring of U.S. jobs. The facts show otherwise, and in fact, more Mexican born immigrants are now returning to Mexico than there are new Mexican immigrants [legal and illegal] coming into the United States, but no one is paying much attention. Nor do they care that past trade policies have resulted in cheaper consumer goods for Americans.

These Trump supporters “know what they know,” and what they care about is that Trump is doing what he promised to do. And when it doesn’t work out, Trump will blame the Democrats, especially if they retake the House of Representatives, and Trump’s supporters will assuredly agree with him.

And, unfortunately, most Democrats and opponents of Trump don’t seem to have even considered the grass-roots political impact.

Another Double Standard?

Donald Trump can get away with cheating on his wife with a porn star, talking about “grabbing pussy,” and continually misrepresenting facts and changing his mind, and lying about it, and that’s just for starters… and his ratings among his Republican supporters are increasing. On the other hand, a single, and comparatively mild instance of a forced kiss and grope by Democrat Senator Al Franken forced his resignation and the end of his political career. These are the most glaring examples, but there are many more than a few others.

For the most part, although there are exceptions, at this point in history, Democrats seem to be less forgiving of sexual and ethical lapses by Democratic politicians than Republicans are of Republican politicians.

Is there a double standard?

That’s the wrong question to ask. The more accurate question is why Republicans tolerate, even ignore, behavior that has current Democrats cringing and defenestrating their own politicians after such behavior when their own politicians engage in it and furious when Republicans ignore such behavior by Republican officials.

It’s not a double standard. We’re talking about two different standards.

The values of Trump’s Republican base are anchored firmly in the 1950s, if not earlier, where men expect to be the single bread-winner, where women are subservient to men, where the rest of the world bows to U.S. wishes, where minorities know their place, where every man should have any gun he wants to possess, and where the business of government is business, with minimal government regulation and where untrammeled economic growth trumps the environment and civil rights, with the single later value is that deficit spending should only be used to reduce taxes, subsidize business, and increase U.S. military power.

The majority of Democrats don’t see it quite that way. They tend to believe that women should have control of their own bodies and that women and minorities should be paid equally with white men, that protecting the environment requires greater regulation on business, that the second amendment does allow certain regulations on the use of firearms, that national parks and federal lands shouldn’t be wide open for low-cost mining and extraction, that taxes are a price paid for a civilized society and that the most affluent should pay more of them in return for their affluence.

As a result of these differences, Republicans tend to minimize male misbehavior as “men being men” and to believe that women, minorities, and the poor only have to act like men to improve themselves, even while failing to recognize all the existing barriers to doing that, or the fact that minorities who act that way are considered rude and uppity, and assertive women are bitches. Study after study shows that identical resumes, articles, and work are more highly praised when a “white male” name is attached, and downgraded when a feminine or minority name is attached.

But no amount of logic is going to change values… or an outdated standard of belief that’s also at variance with the rest of the industrialized world. And unlike the 1950s, this time what the rest of the world believes will make a difference… and that difference will be costly to the U.S. in more ways than one, beginning with the oncoming trade war.

The USPS Mail Scam Game

A week ago, early in the morning, I mailed from the local Cedar City post office, not at an out of the way collection box, some routine paperwork to the accounting office at Macmillan, using first class mail. Yesterday, I got an email from the recipient saying that it had just arrived – six days from Cedar City to New York. It cost fifty cents. If I’d sent it by UPS next day it likely would have cost me close to forty dollars; two-day UPS would have been $26.

But historically, should a simple letter cost fifty cents? In 1958, sixty years ago, first class postage was three cents. If postage had increased only as much as the inflation rate, then first class mail should only cost twenty-six cents, roughly half what it does now.

We don’t get that much first class mail, and most of that consists of bills. What we do get is lots and lots of letters from non-profits asking for money, a number of periodicals to which we’ve subscribed, and over the course of a year, close to a ton of catalogues [and this is no exaggeration because weekly, I cart them to the local recycling bin], most of which comes from companies from which we’ve never ordered anything and never will.

From reading the Postal Service rate schedule and from researching direct mail costs, it appears that each of those one pound [or less] catalogues has a mailing cost of between eighty cents and a dollar fifty.

Theoretically, the Postal Services is supposed to allocate costs of providing services according to the base cost of each class of service under a “common charge” system. Except, in practice, it’s not done that way, and it hasn’t been done that way for at least forty years. How do I know? Because some forty-five years ago, I was a Congressional staffer working for a Congressman on the Appropriations Committee, and even back then the “common charges” were undertariffed and the postal rates for bulk mail, commercial mail [such as catalogues] were essentially based on the marginal costs… and Post Office officials testified that such pricing worked, and I could never get an answer that wasn’t trumped-up gobbledy-gook.

The same thing is happening today. The Postal Service recently entered into a contract with Amazon where the charges for delivering each package roughly average two dollars, half of what other large retailers pay. The lower charges to Amazon were based at least in part on the idea that serving Amazon costs less because Amazon’s shipping was so organized that the effort by the USPS was less.

The problem with this argument is that is doesn’t take into account the heavier load on the USPS infrastructure. It’s marginal cost pricing again, without enough revenue added to support the infrastructure. Charging Amazon on the basis of an accurate proportional common charge basis would add $1.50 on average to delivery changes, which would still be $.50 less per package than for other large retail shippers.

The same system also applies to catalogues. Now, the mail order retailers claim that any significant increase in their bulk advertising rate mail would be prohibitively expensive. I don’t buy it. It wasn’t true forty-five years ago, and it isn’t true now. When companies can afford to design, print, and send us literally tons of unread, unused catalogues year after year, with only minimal increases in their rates [in most years, it’s been 1-2 percent a year; this year was a “whopping” 5.9%], that claim rings rather hollow, but obviously the lobbying campaigns by retailers, manufacturers, and non-profit organizations outweigh any practicality.

Much as I think that there are worthwhile non-profits and charities out there, we’re also inundated by the tireless appeals of both the worthy and the not-so-worthy, sent at roughly a quarter of the cost of a first class letter, and most of those we’ve also never contributed to.

Is it any wonder that the Postal Service continues to lose money?

Logic?

Generally, the use of logical reasoning is a good thing. Every once in a while, intuition bests logic. Likewise, consistency is usually better than inconsistency. And, of course, continuing leaps of intuition coupled with total inconsistency is a formula for disaster… unless, heaven forbid, you’re a criminal trying not to get caught.

So why do so many people have difficulty recognizing that President Trump’s lack of logic and consistent inconsistency can only lead to more and more trouble, both nationally and internationally? He’s had so many different policies and statements on immigration, trade and tariffs, and civil rights, among others, that I’ve long since lost track.

And while support for his tax cuts is still strong, that’s only because most people have yet to figure out the consequences. Much of the federal tax cut will result in higher state income taxes, and professionals, well-off but not wealthy, in high-tax states, will see their taxes increase. Most of those who actually get a tax cut will find it modest at best, except for the very rich, who will get significant tax relief. Of course, very few people are considering that between the Federal Reserve and the tax cut, interest rates will continue to rise, and that means the new homeowners and those with adjustable rate mortgages will likely see their tax cut vanish into mortgage payments, if that tax cut hasn’t already been swallowed by higher state taxes or lower itemized deductions.

None of this seems to matter to most people, especially to Trump supporters, at least, according to recent polls, since a narrow majority of Americans now like the economic situation, but then most people liked the economic situation in early 1929, or 2007.

Nor does it seem to matter that recent actions by EPA and the Interior Department will worsen air quality in areas already suffering highly polluted air, and that such pollution will cause more deaths from respiratory failure.

What matters to most people is that they think they have a little more money, that the President “sees” their problems, that he’s going to reduce illegal immigration, and he’s going to use tariffs to put in their place those foreign nations that have used unfair trade terms to steal our jobs.

Logic says some of this isn’t even accurate, and that none of this will work out in the long run, and possibly not even in the comparatively near future – but logic has nothing to do with politics, which just might be why our politics are so screwed up.