Latest / Trumponomics / Americans Get Lots of Government Money, And They Still Hate Washington
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- 0:02Speaker 1: Americans seem more suspicious of and hostile toward government than ever,
- 0:08Speaker 1: and that's a sentiment that transcends left and right, Blue
- 0:12Speaker 1: states and read So, why then, is government thriving? Why
- 0:16Speaker 1: does government assistants play an ever greater role in the
- 0:20Speaker 1: lives of many people even in an era of Republican
- 0:24Speaker 1: control of Congress, the White House, and a conservative leaning
- 0:29Speaker 1: Supreme Court. Welcome to Benchmark, a show about the global economy.
- 0:43Speaker 1: I'm Daniel Moss, a columnist at The Bloomberg Opinion in
- 0:46Speaker 1: New York, and I'm Scott Landman and economics editor with
- 0:51Speaker 1: Bloomberg News Washington. Antipathy toward an overbearing state has been
- 0:57Speaker 1: part of American public discourse into the Republic's earliest days.
- 1:02Speaker 1: But something new is happening. Not only is the reach
- 1:07Speaker 1: of federal programs getting deeper, hostility toward them is increasing
- 1:13Speaker 1: at a much greater rate in the parts of the
- 1:16Speaker 1: country that have become the most reliably conservative, places like Kentucky.
- 1:23Speaker 1: It's a paradox studied by Suzanne Mettler, a professor at
- 1:26Speaker 1: Cornell University in New York. She's the author of a
- 1:30Speaker 1: new book called The Government Citizen Disconnect, and she joins
- 1:35Speaker 1: us this week. Professor, thanks so much for being here,
- 1:38Speaker 1: delayed to be with you. I'm glad you used the
- 1:41Speaker 1: word disconnect in the title of your book, because I'm
- 1:45Speaker 1: stumped what's going on here. These two things seem at
- 1:47Speaker 1: odds with each other. Well, indeed they do, and it's
- 1:51Speaker 1: a paradox um. So we have this disconnect where over
- 1:56Speaker 1: the past many decades, Americans attitudes about governor ment have
- 2:00Speaker 1: become considerably worse than they were in the nineteen fifties
- 2:03Speaker 1: and sixties. And yet at the same time, people rely
- 2:07Speaker 1: upon government social policies more than ever for their healthcare,
- 2:10Speaker 1: there to pay for college education, for retirement security, and
- 2:15Speaker 1: all kinds of economic security. And so that's what I
- 2:18Speaker 1: wanted to dig into to try to make sense of.
- 2:21Speaker 1: Suzanne Dan mentioned Kentucky in his introduction. You spend some
- 2:25Speaker 1: time in your book talking about that state. What stood
- 2:29Speaker 1: out about Kentucky and why was it such a significant
- 2:35Speaker 1: example for your research in your book, Kentucky in some
- 2:39Speaker 1: ways epitomizes this paradox that I'm talking about. Kentucky, if
- 2:43Speaker 1: you go back to the nineteen eighties, was sending moderate
- 2:47Speaker 1: Democrats for the most part to Congress and yet that
- 2:51Speaker 1: has changed over time. By the mid nine nineties, they
- 2:54Speaker 1: were electing more moderate Republicans to go to Congress, and
- 2:59Speaker 1: then increasingly servative Republicans over time. Members of the Tea
- 3:02Speaker 1: Party Caucus, the Freedom Caucus, and today various members of
- 3:06Speaker 1: their delegation are people who are taking the lead and
- 3:09Speaker 1: trying to introduce work requirements to food stamps and and
- 3:13Speaker 1: really trying to scale back social policies. But at the
- 3:17Speaker 1: same time, Kentuckians rely very heavily on federal government social benefits. Now,
- 3:23Speaker 1: you know, it's always been a poor state, and if
- 3:25Speaker 1: you go back to it was a state where the
- 3:29Speaker 1: average person's income more than ten percent of it came
- 3:33Speaker 1: from the federal government through social benefits. But that's more
- 3:36Speaker 1: than doubled now by it was up to and in
- 3:41Speaker 1: several counties it's much higher. It's up boards of thirty.
- 3:47Speaker 1: And some of those same counties are electing some of
- 3:50Speaker 1: these very conservative members of Congress. So it illustrates this
- 3:53Speaker 1: paradox is not the same thing true, Suzanne about border
- 3:58Speaker 1: states and the sound in general. Again, wise, Kentucky significantly
- 4:04Speaker 1: different from say, Mississippi, Arkansole, Missouri. All of those places
- 4:11Speaker 1: have seen this trend in recent decades. Why does Kentucky
- 4:14Speaker 1: stand out, Well, Kentucky is illustrative of the others. It's um,
- 4:20Speaker 1: it's particularly extreme. This paradox is particularly extreme there. But
- 4:25Speaker 1: you're right, Um, we could find this paradox in many
- 4:28Speaker 1: states throughout the country, and you're mentioning several in the South.
- 4:32Speaker 1: But I found when I looked at states all over
- 4:36Speaker 1: the country that there's been an increase in the percentage
- 4:40Speaker 1: of the average person's income that comes from these federal
- 4:42Speaker 1: social government transfers. And at the county level, it's true
- 4:47Speaker 1: in counties everywhere, including some of the wealthiest counties in
- 4:51Speaker 1: the country. It's gone up everywhere. So you find this
- 4:54Speaker 1: paradox is quite ubiquitous. And that's what I really wanted
- 4:57Speaker 1: to delve into. Now, the paradox you talk about is
- 5:02Speaker 1: not necessarily something new. This kind of idea has been
- 5:05Speaker 1: out there for some time. You could go back to
- 5:07Speaker 1: books like the one that Thomas Frank did in two
- 5:10Speaker 1: thousand four, What's the matter with Kansas? Can you tell
- 5:13Speaker 1: us about the kind of research that you did and
- 5:16Speaker 1: the kind of things that you discovered that that show
- 5:20Speaker 1: why states like Kentucky are electing people that don't necessarily
- 5:26Speaker 1: align with the interests of a population increasingly dependent on
- 5:31Speaker 1: government programs. Right well, I tried to dig into this.
- 5:36Speaker 1: I used survey data to look at whether the number
- 5:41Speaker 1: of policies that people use, or the types of policies
- 5:44Speaker 1: they use, has some bearing on their attitudes about government,
- 5:49Speaker 1: and I found that it does make some difference. Many
- 5:52Speaker 1: of our social policies in the United States are rather
- 5:55Speaker 1: hidden by design. There hidden in the tax code, for example.
- 5:59Speaker 1: I'm thinking of things like the home mortgage interest deduction,
- 6:03Speaker 1: and it is the case that people who have used
- 6:05Speaker 1: those policies it really just does not affect their attitudes
- 6:09Speaker 1: about government at all. But even the more visible policies,
- 6:13Speaker 1: things like food stamps and unemployment insurance and medicaid and
- 6:17Speaker 1: so on, don't have a great bearing on most attitudes
- 6:21Speaker 1: about government. They do make people feel more likely to
- 6:24Speaker 1: feel that government has helped them in times of need,
- 6:28Speaker 1: or that it's given them opportunities to improve their standard
- 6:30Speaker 1: of living, but it doesn't make much of a dent
- 6:33Speaker 1: on other attitudes that they may have. But what I
- 6:36Speaker 1: found was more consequential was people's attitudes about welfare. So
- 6:42Speaker 1: there are survey questions that go back over many decades
- 6:45Speaker 1: where people are asked about their their views about welfare,
- 6:50Speaker 1: and about forty percent of Americans will say they have
- 6:54Speaker 1: very unfavorable views towards welfare. What I found was that
- 6:59Speaker 1: that trans it's into very negative attitudes about government. So
- 7:03Speaker 1: whatever people are thinking of when they say that that
- 7:06Speaker 1: they don't like welfare, it seems to them to be
- 7:09Speaker 1: like a microcosm of government. So in interviews, people said
- 7:14Speaker 1: to me that they felt that some social benefits were
- 7:18Speaker 1: unfair because once people were earning a little bit more,
- 7:22Speaker 1: they no longer qualified for them, and they felt that
- 7:25Speaker 1: they were going particularly to people who didn't work, and
- 7:29Speaker 1: they felt they were working hard and so on. And
- 7:33Speaker 1: then in turn, it seems that they are thinking of
- 7:35Speaker 1: government as having those same attributes, that government is favoring
- 7:39Speaker 1: someone else and doing so unfairly. And that was a
- 7:43Speaker 1: very powerful attitude that that really just kept jumping out
- 7:47Speaker 1: from all of the kinds of analyzes that I was doing.
- 7:50Speaker 1: One of the things that's so surprising about this is
- 7:53Speaker 1: that what we used to call welfare was aid to
- 7:56Speaker 1: families with dependent children, a new Deal pol see that
- 8:00Speaker 1: was around until when Congress terminated it and that was
- 8:06Speaker 1: the Personal Responsibility and Work Opportunities signed into law by
- 8:09Speaker 1: President Bill Clinton, and the program was replaced by a
- 8:14Speaker 1: much more restrictive policy called Temporary Assistance to Needy Families.
- 8:18Speaker 1: And today less than one percent of the American public
- 8:23Speaker 1: uses that policy at any point in time, So will
- 8:27Speaker 1: there as it used to exist is almost extinct. And
- 8:31Speaker 1: yet these very strong and anti welfare attitudes are as
- 8:35Speaker 1: prevalent as ever, and they really drive this kind of
- 8:39Speaker 1: antipathy hostility towards government more broadly. Who is Mr No
- 8:45Speaker 1: and how does he figure in the story. Thomas Massey
- 8:50Speaker 1: is a very conservative member of Congress who has been
- 8:54Speaker 1: called Mr No because he seems to vote against most
- 8:58Speaker 1: everything and he's very much against social policy provision. And
- 9:03Speaker 1: yet his own district in Kentucky includes several counties where
- 9:09Speaker 1: over thirty or forty or fifty percent of the average
- 9:12Speaker 1: person's income comes from federal government social benefits. How does
- 9:17Speaker 1: Mr No survive? Right? Right? Okay, So let me distinguish
- 9:22Speaker 1: a couple of things here. So the attitudes about welfare
- 9:26Speaker 1: helped to explain people's hostility to government. But then how
- 9:30Speaker 1: people vote is a separate matter, and they're what comes
- 9:34Speaker 1: into play is what I call a participatory tilt. So
- 9:39Speaker 1: the people who are most likely to participate in politics
- 9:42Speaker 1: have used plenty of social benefits, just as all Americans have,
- 9:46Speaker 1: but they are more likely to be using social benefits
- 9:50Speaker 1: that are fairly indivisible where government's role is not clear,
- 9:55Speaker 1: such as policies in the tax code, or policies that
- 9:58Speaker 1: they feel strongly they have earned, such as Social Security
- 10:02Speaker 1: and Medicare because of their payroll taxes. And so when
- 10:06Speaker 1: those people are participating, they're not doing it with an
- 10:10Speaker 1: eye toward how much government has helped them themselves through
- 10:15Speaker 1: social benefits. There are many people who feel that government
- 10:19Speaker 1: has helped them a lot. They're people who have used
- 10:21Speaker 1: more means tested, visible policies, and yet those people are
- 10:25Speaker 1: much less likely to participate in elections. They're less likely
- 10:28Speaker 1: to vote, and they're less likely to take part in
- 10:31Speaker 1: all different kinds of political activities. So we have this
- 10:34Speaker 1: participatory tilt in which the people who are least appreciative
- 10:38Speaker 1: of government's roles speak with the loudest voice, and that's
- 10:41Speaker 1: who's heard by elected officials. How does Senate Majority lead
- 10:46Speaker 1: up Mitch McConnell fit into this picture. He's been one
- 10:50Speaker 1: of Kentucky's to United States senators since the nineties. But
- 10:55Speaker 1: he's not exactly a fire breathing Tea Party type and
- 11:00Speaker 1: has had his share of scripes with the Tea Party
- 11:04Speaker 1: and the Republican hard right, explained Mitch McConnell's long gavity
- 11:09Speaker 1: to us. Yeah, Mitch McConnell very interesting politician. You know,
- 11:13Speaker 1: if you go back to the early part of his career,
- 11:16Speaker 1: he was actually quite moderate in his views and fairly
- 11:21Speaker 1: supportive of labor unions. And then he had a real
- 11:25Speaker 1: close election and he changed his mind after that point
- 11:29Speaker 1: in time and decided to cater to the to the
- 11:32Speaker 1: base more, cater to conservatives more, and so he moved
- 11:36Speaker 1: in a more conservative direction. And then he became a
- 11:39Speaker 1: real leader in the Republican Party in Kentucky. And really,
- 11:43Speaker 1: through that kind of model helps to provide an example
- 11:48Speaker 1: for other Republicans who were hoping to get elected in
- 11:52Speaker 1: the state. And so he became a party leader in
- 11:55Speaker 1: the state and that the state really moved in that
- 11:58Speaker 1: direction politically, Professor, when we talk about this issue of
- 12:03Speaker 1: voting against one's economic self interest, there are a couple
- 12:08Speaker 1: other things that we really need to acknowledge. One of
- 12:12Speaker 1: them is race, another one is media such as Fox News.
- 12:17Speaker 1: But let me ask you about race. What role did
- 12:21Speaker 1: you find that race plays in these kinds of attitudes. Well,
- 12:27Speaker 1: race did not play a role overtly in people's attitudes
- 12:32Speaker 1: about government, but it did in their attitudes about welfare,
- 12:36Speaker 1: which in turn shapes their attitudes about government. I found
- 12:39Speaker 1: that there was a racial bias, that whites were much
- 12:42Speaker 1: more likely than people of color to have hostile views
- 12:47Speaker 1: towards towards welfare. And that's in line with what other
- 12:50Speaker 1: scholars have found in the past. That's not new. What
- 12:54Speaker 1: I did find it was new, was that income mattered
- 12:58Speaker 1: a great deal. And I found that people who had
- 13:02Speaker 1: moderate incomes from household income up thirty five thou up
- 13:06Speaker 1: to a hundred thousand dollars, all of the subgroups within that,
- 13:09Speaker 1: we're all significantly more likely to have unfavorable views towards
- 13:14Speaker 1: welfare than we're lower income people. And then we're hiring
- 13:18Speaker 1: come people interestingly. And you know, when you think of it,
- 13:22Speaker 1: that makes sense in that over the past few decades,
- 13:25Speaker 1: middle income people, they've really increased their productivity a great deal,
- 13:30Speaker 1: but their their wages have been very stagnant, and so
- 13:34Speaker 1: they've increased productivity in order to maintain household earnings. It's
- 13:38Speaker 1: been a difficult time for the middle class and the
- 13:41Speaker 1: United States because fewer jobs come with benefits. Higher education
- 13:46Speaker 1: is harder to afford. So for people who would like
- 13:48Speaker 1: their children to have greater opportunities than they've had, it's
- 13:51Speaker 1: very difficult to help to provide those and so on.
- 13:56Speaker 1: Is the middle class more hostile to wealth because as
- 14:01Speaker 1: you acknowledge, it's getting harder and harder to be middle
- 14:05Speaker 1: class and stay middle class. Some of these folks looking
- 14:09Speaker 1: over the precipice thinking, gosh, that could be me. I'm
- 14:13Speaker 1: so repelled by that thought. I'll translate that into a
- 14:18Speaker 1: repellent view of government assistance. I think you've articulated that
- 14:23Speaker 1: very well. That's very much in line with what we
- 14:26Speaker 1: heard from people once we did open ended interviews and
- 14:30Speaker 1: really asked them to talk about their views about these
- 14:32Speaker 1: public policies. That's very much what we were hearing from
- 14:35Speaker 1: people that this is it's been a difficult time recent decades,
- 14:39Speaker 1: and people have been working hard, they've been struggling. They
- 14:42Speaker 1: just don't feel like they're getting ahead. And there is
- 14:45Speaker 1: that antipathy to welfare and to government broadly. Suzanne, what
- 14:50Speaker 1: is the submerged state? That sounds quite conspirator. So I
- 14:58Speaker 1: wrote a book a few year yars ago called the
- 15:01Speaker 1: Submerged State, and what I meant by that was these
- 15:04Speaker 1: policies that I've been mentioning that are um by their design,
- 15:10Speaker 1: makes government's role quite unclear in them. Many of our
- 15:14Speaker 1: social benefits in the United States are channeled through the
- 15:16Speaker 1: tax code, and here I'm thinking of things like the
- 15:20Speaker 1: home mortgage interest deduction, the earned income tax credit, the
- 15:23Speaker 1: tax exempt status, and employer provided health and retirement benefits,
- 15:27Speaker 1: and many others. We provide a lot of benefits in
- 15:31Speaker 1: this way, and most of them, with the exception of
- 15:35Speaker 1: the earned income tax credit, and then a few smaller ones,
- 15:38Speaker 1: are upwardly redistributive. They give most of their benefits to
- 15:41Speaker 1: fairly high income people. But people tend not to think
- 15:45Speaker 1: of these as social benefits because the way they're delivered
- 15:49Speaker 1: is simply that people pay less in taxes. Now, from
- 15:53Speaker 1: an accounting perspective, it really doesn't matter whether UM, I,
- 15:58Speaker 1: as the government, send you a check to help you
- 16:02Speaker 1: to pay for your housing, or if I allow you
- 16:04Speaker 1: to pay less in taxes because of your housing. Um
- 16:08Speaker 1: it's a wash from the point of view of federal revenues,
- 16:11Speaker 1: but for the recipient it can feel very different. People
- 16:15Speaker 1: see government's role when it comes in that check, but
- 16:19Speaker 1: not when it's channeled through the tax code, and so
- 16:22Speaker 1: much of American government is, and in particularly these social
- 16:25Speaker 1: benefits are in what I call the submerged state. Professor,
- 16:29Speaker 1: in talking about this issue, I was struck by a
- 16:32Speaker 1: vignette in your book where you discuss some people applying
- 16:36Speaker 1: for welfare and how they were made to feel shame
- 16:39Speaker 1: over applying compared with people who applied for the Earned
- 16:43Speaker 1: Income Tax credit at an H and R block office,
- 16:46Speaker 1: and it was very easy, very convenient. Are you saying
- 16:50Speaker 1: that the ease of applying, or the ease of getting
- 16:54Speaker 1: the more submerged benefits that plays a role in failing
- 16:59Speaker 1: to get as much support for government programs as might
- 17:03Speaker 1: be more beneficial. Yes, this is ironic. I should say
- 17:09Speaker 1: from the outset that I found that any policies people
- 17:13Speaker 1: have used, they were very appreciative of and they found
- 17:17Speaker 1: helpful to their lives. There was some variation in this,
- 17:21Speaker 1: and people who used welfare did find it to be
- 17:25Speaker 1: more difficult to attain and more stigmatizing, whereas the policies
- 17:29Speaker 1: and the tax code much less so. But then when
- 17:33Speaker 1: we look at you know, how does that translate into
- 17:36Speaker 1: people's attitudes about government. When it comes to the policies
- 17:39Speaker 1: and the tax code, people simply do not connect the
- 17:42Speaker 1: dots that that's a government benefit. The Earned Income tax
- 17:46Speaker 1: Credit is a very interesting example because it's a policy
- 17:50Speaker 1: for the working poor. Many people who receive it have
- 17:53Speaker 1: no tax liability whatsoever, so they are simply getting a
- 17:57Speaker 1: social benefit that is run through the tax code. But
- 18:00Speaker 1: they're not paying taxes. I mean, some of them are,
- 18:03Speaker 1: but some are not. And even so it does not
- 18:07Speaker 1: have an impact on their views about government. It does
- 18:10Speaker 1: not give them more positive views about government. And in fact,
- 18:14Speaker 1: this is a group of people who have very negative
- 18:16Speaker 1: attitudes about government, and perhaps you know, not surprisingly because
- 18:21Speaker 1: life has been hard for them. They're there working poor,
- 18:23Speaker 1: they've been they've been working really hard and um and
- 18:27Speaker 1: not seeing much for it. And so but you know,
- 18:31Speaker 1: then then when you go to policies they are for
- 18:33Speaker 1: higher income people. Here again, you know, people appreciate those policies,
- 18:38Speaker 1: but they don't connect them to government. They don't think
- 18:41Speaker 1: of government doing something for them through those benefits. They
- 18:44Speaker 1: simply think they're paying less in taxes. Susan. Can we
- 18:48Speaker 1: come back to Rice for a second. Border states and
- 18:53Speaker 1: the former Confederate States are pretty deeply read, at least
- 18:58Speaker 1: at a presidential level. When folks in those states here government,
- 19:03Speaker 1: do they also hear affirmative action, marriage equality, immigration, things
- 19:10Speaker 1: that might trouble them? Is that part of what's going
- 19:13Speaker 1: on here? Well, I think that there are several things
- 19:17Speaker 1: that are going on that, you know, I really focus
- 19:20Speaker 1: in my book on what's happened to social wealthare policies
- 19:24Speaker 1: over these past many decades, but of course they did
- 19:28Speaker 1: not exist in a vacuum over the same period of time.
- 19:31Speaker 1: I think that people in some states in the country
- 19:34Speaker 1: that have a more socially conservative culture began to feel
- 19:39Speaker 1: more alienated from the Democratic Party because of abortion issues
- 19:43Speaker 1: and marriage equality issues and gay rights. So that's certainly
- 19:47Speaker 1: going on. It's also the case, you know, if we
- 19:49Speaker 1: go to Kentucky, for example, that environmental policies have been
- 19:56Speaker 1: used by Republicans, they what they have done. I've been
- 20:00Speaker 1: talking a lot about connecting the dots and how people
- 20:03Speaker 1: fail to connect the dots between policies they themselves have used,
- 20:07Speaker 1: and what government is like and what government does for them, etcetera.
- 20:11Speaker 1: But I think that conservatives have been quite effective at
- 20:15Speaker 1: connecting the dots and environmental policy in Kentucky and saying,
- 20:20Speaker 1: you know, the economy is doing poorly because liberals have
- 20:23Speaker 1: enacted these environmental policies that have been bad for the
- 20:26Speaker 1: coal industry, and we've lost jobs, and therefore everyone is
- 20:30Speaker 1: worth off. Now, there's not a lot of evidence for that.
- 20:34Speaker 1: In fact, coal jobs have been departing from Kentucky for
- 20:37Speaker 1: decades and for all sorts of reasons that before environmental
- 20:41Speaker 1: policies existed. But it's a story. It's a narrative that
- 20:45Speaker 1: has been told and seemingly has had a real impact.
- 20:50Speaker 1: So it's an illustration of how, you know, it matters
- 20:53Speaker 1: how public officials and organizations connect the dots for people
- 20:57Speaker 1: and tell them about government's role in their lives. So, Professor,
- 21:02Speaker 1: if you have to make a prediction about the future
- 21:05Speaker 1: of government programs in the United States, would you say that, say,
- 21:10Speaker 1: five to ten years from now, we'll be seeing more
- 21:13Speaker 1: spending on all these kinds of social programs less or
- 21:17Speaker 1: about the same. Well, I think we have a big
- 21:22Speaker 1: problem that is coming down the road, and that is
- 21:26Speaker 1: that we are collecting less in revenues while we're spending
- 21:30Speaker 1: more as a country. And you know, the tax cuts
- 21:33Speaker 1: from right now, we're not feeling the pain from those
- 21:38Speaker 1: so much because the economy is doing well. But you know,
- 21:41Speaker 1: there will be cycles in the economy, and when there's
- 21:44Speaker 1: another economic downturn, we're going to really face some problems
- 21:48Speaker 1: about how to afford these social benefits that at this
- 21:51Speaker 1: point in time Americans rely upon and people really need,
- 21:56Speaker 1: given changes in the economy from the post world where
- 22:00Speaker 1: you period. So I think the Americans will continue to
- 22:03Speaker 1: want these social policies. That's not going to change, but
- 22:06Speaker 1: I think that there are going to be really difficult
- 22:09Speaker 1: decisions ahead. Professor. Thank you so much for joining us.
- 22:15Speaker 1: I've really enjoyed it. Thank you. Benchmark will be back
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