An Economy Divided Against Itself

On June 16, 1858 a  little-known candidate for the Illinois Senate spoke these words, “A house divided against itself cannot stand. I believe this government cannot endure, permanently, half slave and half free. I do not expect the Union to be dissolved — I do not expect the house to fall — but I do expect it will cease to be divided. It will become all one thing or all the other. Either the opponents of slavery will arrest the further spread of it, and place it where the public mind shall rest in the belief that it is in the course of ultimate extinction; or its advocates will push it forward, till it shall become lawful in all the States, old as well as new — North as well as South.”  Abraham Lincoln was defeated in that election.

Twenty-first Century America is a house divided.  Like Lincoln, we should expect that our nation will cease to be divided, not that it will fall.  Like the America of 1858, we must choose our destiny.  We may become a commonwealth where everyone has opportunity to develop her or his full potential; benefitting financially and socially from personal efforts. Or we may become a winner-take-all nation where the wealthy grant only subsistence to those who labor.

The fault lines along which America is fractured today are readily apparent divisions of wealth and race.  Children are taught that education is the key to a secure middle class life but  many who  have finished high school or even college  find only multiple part-time jobs, irregular hours, low wages, and no health insurance, or sick pay.

Young adults are barraged with advice and criticism regarding their lifestyles, hairstyles, tattoos and phones.  You know the list. But regardless of work ethic, hair style or tattoo count, many will be unable to marry, start a family, care for children and buy (or even rent) good housing with the wages they can earn.

Many in black America mistrust our institutions.  Law enforcement, courts, banks, and corporations  are often suspected of systematically mistreating people of color. There is a litany of incidents to justify their concerns.  Maybe only a few police actually discriminate and maybe most banks have not directed predatory lending practices against minorities but it took only one officer and one bullet to kill 12 year old Tamir Rice.  He had not violated any law but he lies dead in Cleveland, bearing silent testimony to unnecessary police violence.  And it takes only one abusive lending institution to wreck the finances of a young family.

Just describing the issues that divide us raises blood pressure and incites anger on all sides.  A principle of fairness that could guide us is that any job worth doing is worth a living wage; but we are going in the opposite direction. The proportion of the value of goods and services produced in America which goes to corporate profits is at its highest level in recorded history while the proportion that goes to wages is at the lowest.  Big business is thriving while demanding further reductions in taxes. Many small businesses and workers are suffering.

Upcoming debates will be about economic issues including minimum wages, mandatory benefits, the cost of public education (including post-high school education) and tax supported safety net programs.  They are about creating economic opportunities. Political issues will include safety, law enforcement, and criminal justice.  Will enforcement be equal in all communities?  Do we want to continue locking youngsters up and giving them criminal records for possession of marijuana?  Will enforcement at High Point University be the same as enforcement in the parking lot of a convenience store in a black neighborhood?

If we adopt policies that create opportunity and reward every kind of work with a living wage we will see the social ills associated with poverty gradually disappear.  Our national wealth and productivity will grow and we will thrive.  If we continue down the winner-take-all road we can expect poverty to grow because the rewards of work will not be adequate to support healthy families.  Further  down that road lie labor unrest and more violent crime; not because anyone wants those outcomes but because they are the inevitable consequences of poverty.

As in 1858, the choices will belong to voters and citizens.  Like our 19th century ancestors, we will decide our own fate.

 

One thought on “An Economy Divided Against Itself”

  1. An article in the 12/13/14 issue of News & Record is entitled “Study: Wealth gap between races widens.” “According to a Pew Research Center study released Friday, the wealth of white households was 13 times greater than that of black households in 2013, versus 8 times the wealth in 2010. And, the wealth of white households was more than 10 times of Hispanic households, up from 9 times the wealth in 2010.”
    “The median income in minority households fell 9% from 2010 to 2013, versus a 1% drop in white households.”
    Although we are experiencing an economic recovery in the US, we need to create a level playing field so that far more families can achieve the American dream.

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