Liberals have finally cracked the nut of inequality. They've managed to write books about social justice and corporate corruption that large audiences want to read. Thomas Piketty, the French economist whose Capital in the 21st Century has sold about 40,000 copies to date, the largest haul in Harvard University Press' history, is a la mode right now. Sen. Elizabeth Warren (D-Massachusetts) is already a best-seller. And Michael Lewis' latest narrative story about how fat cats manipulate the technological neutrality of Wall Street to game the system — well, that makes three, and three is a trend.
Although health care reform redistributes resources from the wealthy and is perhaps the most significant exercise against poverty since the expansion of the Earned Income Tax Credit, the political conversation is fairly anodyne, and quickly backs up like plumbing in a tenement. Democrats have the momentum, but good laws are made when the parties are somewhat competitive in the realm of ideas. (Health reform, of course, is the purest example.)
Piketty's solutions are admirably clear: They include a 60 percent income tax on those making over $200,000, and a larger one gutting the income of those making over $500,000. Democrats tend to be more subtle, calling for slightly higher marginal income taxes and larger back end transfers to the poor. What about Republicans?
There are two political thresholds that need to be crossed before a politician can speak meaningfully about inequality. First, he or she needs to believe that it is a problem. Many Republicans do not. Alternatively, many put "income inequality" in scare quotes, like it is a monster dreamt up by the Center for American Progress. The second threshold is perceiving that it's enough of a problem to want to actually address it. Republicans who say that the best or only way to address income inequality is to cut taxes on the rich while balancing the budget by cutting spending on poverty programs haven't quite made it beyond the threshold. At this stage, income inequality seems like a non-white-people problem, which it isn't, but suffice it to say that it hasn't made these politicians uncomfortable enough yet.
If you want to be bold, then, now's your time. Being bold doesn't mean being dumb. No "9-9-9" solutions. The flat tax is not going to pass Congress anytime soon. Taking the focus off of welfare programs that disproportionately benefit minorities might be a good place to start. Another point of departure: recognizing that the system is inherently unequal. Republicans who notice this tend to be run out of the party. The budget proposal of Rep. Dave Camp (R-Michigan) includes an excise tax on Wall Street wealth. That's brave — symbolic, generally, but brave. For his courage, his budget was urinated on and he decided to retire.
I do think the media holds conservatives to a different standard on this issue, and I might even think that it's right for them to do so. That's why any Republican who wants to be taken seriously has to play the game differently. Nothing attracts attention like political apostasy, and there is plenty of room for Republicans to hold their own benefactors to account while not undermining their own principles. There really is. Who is brave enough to be the Dave Camp who succeeds?
Point one: Urge a "whole-of-government" approach to reducing income inequality. Every institutional actor, from the Federal Reserve board to the Federal Executive Boards, need to examine how the effects of the policies they implement change the coefficient of inequality.
Point two: Endorse the minimum wage, and, importantly, associate yourself with the movement that leads to its near-universal adoption. Don't simply talk about it and let Democrats pass it. Build a coalition yourself.
Point three: Embrace these ideas: reform medical intellectual property laws; get rid of ridiculously restrictive zoning laws; bust up business cartels at the local levels; allow foreign licensing standards for certain professions; lower the barrier to entry for others.
When 2016 comes around, who will be the Republican who breaks the mold? Will any of them?
