The Politics of Inequality : a political history of the idea of economic inequality in America

288 Pages·2012·1.97 MB·English

by  Thompson

| THE POLITICS OF INEQUALITY |
The Politics of Inequality
A POLITICAL HISTORY OF THE IDEA OF
ECONOMIC INEQUALITY IN AMERICA
With a New Preface

Michael J. Thompson

COLUMBIA UNIVERSITY PRESS New York
COLUMBIA UNIVERSITY PRESS
Publishers Since 1893
New York Chichester, West Sussex cup.columbia.edu

Copyright © 2007 Columbia University Press Preface © 2011 Michael J. Thompson Paperback
edition, 2012
All rights reserved E-ISBN 978-0-231-51172-8

Library of Congress Cataloging-in-Publication Data Thompson, Michael, 1973– The politics of
inequality : a political history of the idea of economic inequality in America / Michael J. Thompson
p. cm.
Reprint of 2007 edition. Includes new preface.
Includes bibliographical references and index.
ISBN 978-0-231-14074-4 (cloth : alk. paper)— ISBN 978-0-231-14075-1 (pbk : alk. paper)—
ISBN 978-0-231-51172-8 (e-book) 1. United States—Economic policy. 2. Distributive justice—
United States—History. 3. Distribution (Economic theory)—Political aspects.
I. Title.
HC103.T56 2007
339.2'20973—DC22
2007012874
A Columbia University Press E-book.
CUP would be pleased to hear about your reading experience with this e-book at cup-
[email protected].

References to Internet Web sites (URLs) were accurate at the time of writing. Neither the author
nor Columbia University Press is responsible for URLs that may have expired or changed since
the manuscript was prepared.

DESIGN BY VIN DANG
FOR MY TEACHERS
ἰσότητα δ’ αἱροῦ καὶ πλεονεξίαν ϕύγε
—MENANDER
| Contents |
PREFACE
ACKNOWLEDGMENTS

Introduction. The Political Dimensions of Economic Inequality
1 The Critique of Economic Inequality in Western Political Thought:
The Continuity of an Idea
2 The Liberal Republic and the Emergence of Capitalism:
The Political Theories of Optimism and Radicalism
3 The Transformation of American Capitalism:
From Class Antagonism to Reconciliation
4 Embracing Inequality:
The Reorientation of American Democracy
Conclusion. Restating the Case for Economic Equality

NOTES
BIBLIOGRAPHY
INDEX
| Preface |

The harsh realities of economic inequality have only increased in
intensity since the initial publication of this book in 2007. The gap
between economic classes in American society continues to expand and
political parties are polarizing, while organizations that secure political
power for corporations intensify their influence on policy and elected
officials even as unions fragment and dissolve. The results are that the
progressive institutions erected during the great decades of reform in the
early to mid-twentieth century are being dismantled, and American
democratic institutions are now taking on the features of outright
plutocracy. But one thing has remained stable throughout: progressive
responses to inequality remain weak and ineffectual. In this sense, the
central argument of my book retains its salience for contemporary affairs
and events: the revival of America’s lost egalitarian tradition must be at
the center of a new politics against inequality. The originators of
America’s egalitarian tradition were clear in their insistence on anti-
hierarchical forms of social organization and the need to prevent the
dominance of wealth in order to maintain a democratic republic. They
saw economic divisions as inequalities of social power, the very soil from
which social domination and relations of subordination and servitude
would spring forth. But today, debates about economic inequality are
obscured by talk of “fairness” or of “economic efficiency.” In some ways,
this discourse on economic inequality revives the language of a once-
discredited social Darwinism: if taxes rise on the wealthy, the jobs they
create will disappear; policies that push for redistribution “punish” the
agents of innovation; and most recently, with the rise of the Tea Party,
any governmental interference in economic life is seen as inherently
“despotic.”1
The Politics of Inequality deals with this question in the most direct
way. It argues that the reframing of liberalism that occurred in late-
twentieth century American political culture has hijacked our
understanding of economic inequality. The history of the egalitarian
movements and thinkers that were once vibrant in American history drew
upon a reservoir of ideas and values that have since dried up in
contemporary political culture, leaving us bereft of crucial framing
mechanisms to assist in a critical appraisal of the contemporary social
order. Ideas that once placed emphasis on the absence of economic
servitude, on reigning in the power of economic elites and social
hierarchy, have all eroded. Recent political events give ample empirical
justification for this thesis. In contemporary politics, much can be learned
from the ways that the business community has been able to assert
control over political parties, educational imperatives, the media, and the
broader political culture itself. Political ideas serve a legitimating function
for any social order. I want to suggest that delving into the historical
reserve of political values developed in the course of American political
thought can and should help us frame a new politics against economic
inequality and toward a more compelling sense of social justice.
The statistical features of this debate are beyond dispute. Despite
conservative attempts to mask the issue, economic inequality has
continued to surge. The first decade of this century has seen the
economic prospects of both the poor and the middle class fall, as wealth
and income for the upper ends of the distribution have increased
exponentially.2 At the same time, American society has seen its average
economic well-being outpaced by overall GDP: as Americans work longer
and harder, they are paid less for their increased labor time and
productivity.3 To protect their gains, economic elites have captured
enormous political power in national and state governments, and the
problem of oligarchy has now become a concern for mainstream social
scientists.4 Empirical researchers continue to document how economic
inequality has deleterious effects on multiple facets of individual quality of
life as well as on personal and public health.5 We also have ample
evidence that economic inequality suppresses political engagement,
weakening democratic institutions and creating an even richer soil for
entrenched elite control.6