04 January 2025

HOW REPUBLICANS STOOD MARX ON HIS HEAD

If you ever wanted to make an argument for economic determinism, the recent election results provide fertile grounds for it, based upon voting patterns. There was a clear divide between the wealthiest segment of the population and everyone else. A majority of those making over $100,000 per year voted one way, while those earning less that $50,000 as well as everyone else, voted another way. Marxists argue that economic factors determine political attitudes, so that the well-,off vote for conservative candidates, while the lowest earners vote for the Left. This has been the case in countries around the world (until recently), so that the wealthy favored the Republicans while the common people voted for the Democrats. 


But the recent election completed upended this dichotomy. Although these groups aligned according to income predictably, who they voted for did not. The wealthiest segment voted left, i.e. Democrat, while virtually every other segment with lower incomes voted right, or Republican. The Democrats raised more money from their wealthier base than the Republicans, especially in down-ballot contests for congressional seats, where the disparity was greatest. 


Nevertheless there was economics involved in these choices, only not based upon wealth but rather prices. Inflation and the economy were the prime reasons the voting public moved right. Although most people thought the country was moving in the wrong direction and that the economy was not good, there were at least some who thought otherwise, because it was working for them.  These were people who were better off, with higher incomes, and were the only group to do well under the Biden administration. 


There were sharp differences in perception as to the state of things. People with higher incomes barely noticed supermarket prices. With more disposable income,  inflation did not affect their affluence the way it affected everyone else. Thus while economic concerns were paramount in the minds of voters, the prevailing notion of what outcomes this would produce were diametrically opposite to expectations regarding political behavior. Republicans have been transformed by this populist strain, finally becoming a true “peoples party.”

 

A HOSTILE TAKEOVER

There have been instances in the past where a new regime has come to power vowing to reform government, reduce spending, and reign in the bureaucracy. The incoming Trump administration is unusually strong in its determination to achieve these goals. They may well succeed, but the historical record is not encouraging. 


When an outsider takes the reins of an agency they are flying blind. They are immediately dependent upon the existing bureaucracy they have set out to reform for information, and hence are limited or compromised from the outset. In addition, the status quo exists because various interests are satisfied with it. Change under these circumstances is extremely difficult. I have seen this pattern time and again, with the bureaucracy almost always keeping the last word. The passing of Jimmy Carter brings recollections of an attempt during his presidency to implement efficiencies via “zero-based budgeting” as authored by my late cousin Peter, who worked on it at the time but, as with other attempts, the status quo resistance was too strong. 


But now we have something different;  akin to a hostile corporate takeover. It is quite possible that the Trump team may prove to be the exception, much in the same way the man himself is. It is true that the Trump team recognizes this problem and so they have come up with a series of cabinet nominees that are largely, and deliberately antithetical to the entities they are to control. They bring a sort of revolutionary fervor. Perhaps they will succeed, but the task is daunting unless they have someone with inside knowledge of the organization who is programmatically on the same page. They might do better with cadres who independently monitor the agency for adherence to the goals set by the administration, or some equivalent kind of compliance unit. The Musk-Ramaswami DOGE group may fulfill this function. 


Some of the nominees chosen thus far possess a good deal of critical fervor but may lack the necessary knowledge to get very far with it. Others have different problems. RFK Jr. may assume office and move on his health concerns, but the other part of that agency, human services, is likely to be on the chopping block, including programs he might be sympathetic to. It is quite possible that he, or others,  might wind up resigning in frustration after a few months. The most successful are likely to be those concerned with energy, natural resources, and the economy; all areas of Republican concern and expertise. 


Cutting back has become necessary owing to the vast body of government bloat and expanding national debt. This has come about because all entities seek growth and expansion, i.e. the enlargement of their domain, which parallels the pattern of power distribution. Every other segment of society has limitations, such as business competition, supply and demand, or customer numbers.  Government faces no such restraints, so it continually expands.


When things become so stultified the only fix is revolutionary- taking departments apart and reassembling them from scratch. Routine must be replaced by radical change in order to provide renewal, greater efficiency, and functional competence. The tasks for the new administration are daunting, but not impossible. The incoming government may not be able to go this far, but the closer they get to it, the better.