Forward Leaning
The facade of its long-time headquarters on East
Broadway bore busts of Marx, Engels, and LaSalle; its
masthead was once blazoned with the refrain from the
Communist Manifesto, "Workers of the World, Unite!"
But The Forward, newspaper of the great migration of
Yiddish-speaking Jews to New York in the early Twentieth
Century, has been through a lot since those glory days.
Now it is embarked on yet a new course, and those whose
affections it holds are watching with hope and
apprehension.
Back in 1990 The Forward took the big step of publishing a
weekly English-only edition alongside it's Yiddish edition.
(Now it publishes a Russian language edition as well.) The
Forward Association hired a bright and brash young member of
The Wall Street Journal's editorial page, Seth Lipsky, to
edit the English paper. It was an unconventional step: while
Lipsky admires The Forward's socialist heritage, he shares
some of The Journal's views on both tax and social issues.
He is also an unabashed foreign policy and defense hawk,
who sees a lot to admire both in Paul Wolfowitz and Ariel
Sharon. Members of The Forward Association were flattered
to have a rising journalistic star come to a paper that
the Uptown crowd looked on as a somewhat awkward relic
the past.
But some of Lipsky's enthusiasms also produced bouts of
indigestion. One memorable episode was The Forward's 1993
challenge to Johnetta Cole, former President of Spelman
College and, at the time, a key official in President-
elect Clinton's transition team. It had been rumored
that Dr. Cole was in line to be appointed Secretary of
Education in the Clinton Cabinet. The Forward reported
that Cole had been active in a number of groups that
supported the Castro regime and in the pro-Soviet U.S.
Peace Council. She never got an appointment, although
few in the Clinton Administration were grateful that
The Forward brought these matters to public attention.
Lipsky also made enemies with what he describes as "his
innings" of conflict with AFL-CIO President John Sweeney
(Lipsky was a fervent admirer of Lane Kirkland and
AFL-CIO Cold War liaison Irving Brown) and his sniping
at the peace efforts of "Barak the Bumbler."
By the summer of 2000 Lipsky found himself on shaky ground.
Old timers from the "right" social democrats in The Forward
Association were fading out, and new blood was rising into
leadership that saw opportunities both in a softer stance
on international and cultural issues and a revival of the
anti-capitalism of The Forward's Golden Age. The editorial
of May 26, 2000 was Lipsky's last, in which he wistfully
recounted his belief that a synthesis may have been
possible between the universalism of The Forward's
socialist traditions and his own hard-edged Zionism.
Lipsky has since been replaced by J.J. Goldberg, son of the
late Justice Arthur Goldberg, and a frequent contributor
to Anglo-Jewish journals. Goldberg sees promise in another
kind of synthesis: the reconstitution of an American
Left that fractured during the Vietnam Era. Where Lipsky
would argue that strains within the Left were inevitable
in order for the U.S. to exploit the “New” high-tech and
global economy and to win the Cold War, Goldberg would
contend these strains were needlessly inflamed in ways
that gave the Right unwarranted influence. Goldberg's
editorials have described the Cold War as a "sterile
rivalry"; he contends that those he calls "the Commentary
crowd" ascribe too much influence to figures such as the
Reverend Al Sharpton and the tenured radicals of the
campus Left. He holds that European Social Democrats
offer a model that Americans should try to follow.
Goldberg is also sharply critical of Israeli Prime
Minister Sharon, and believes that a peace settlement
can be had if Israel will pull back from the West Bank
and the settlements to defensible borders. While he
recognizes that some might interpret such a pull-back
as evidence of Israel's weakness, he contends that
Israel is strong enough to defend itself against any
attempt to exploit that misperception. "Today Israel's
foreign policy is one of keeping American Jews scared,"
he explains. "Many Israelis themselves want peace."
Goldberg's opportunities at The Forward are much brightened
by reports that it soon may be richer by what The New York
Times reports to be the princely sum of $80 to $90 million.
That's what analysts say should be the amount eventually
paid to The Forward Association by Disney/ABC for the
lease and eventual sale of radio station WEVD (“Eugene
Victor Debs”), which recently traded its homey talk shows
and balalaika music for 24/7 ESPN sports broadcasting.
With that kind of financial support, J.J. Goldberg and
his backers may be able to conduct a real test of whether
American Jewry can provide a critical base of support for
a new New Left in the United States.
September 11 can hardly have been helpful to that purpose,
nor are the on-going antics of Yassir Arafat. And while
Tony Blair is still flourishing, the alliances the German
SPD has made with Berlin's Communist Party—manqué and the
fading Greens shows that “unity on the Left” has its
problems in Europe. So far, the focus of the new Forward
has been on what marketers call "strategic positioning"
(definitely left of, and less hard-nosed than, Commentary,
somewhat to the right of, and less fuzzy, than Tikkun).
But the real challenges the social democratic tradition
faces will require very careful and honest self-appraisal.
Let's hope the new Forward will rise to them.
(http://www.forward.com)
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Waiting for Mr. Reich
Some social democrats may remember Otto Reich, former
Ambassador to Venezuela. He was a supporter of
democracy and free trade unionism who worked closely
with the AFL-CIO's AIFLD, and later served on the
Freedom House Board of Directors. Months ago President
Bush nominated Otto Reich to be Assistant Secretary
of State for Western Hemisphere Affairs. But the
Senate Foreign Relations Committee has not had a vote
or even a hearing to consider this nomination. An
individual Senator--Christopher Dodd of Connecticut--has
put a “hold” on Reich's nomination, evidently because of
his energetic support for the Nicaraguan Resistance
during his service in the Reagan years.
The ability of individual Senators peremptorily to block
Executive Branch nominations strikes us as an abuse of
democratic process and the Constitution. Republicans have
often used it: Senator Helms blocked the appointment of
capable Clinton-era figures such as Morton Halperin and
Peter Romero. One little-appreciated effect of this
informal Senatorial arrangement is the reinforcement it
gives to a culture of conformity in the foreign affairs
community. No one with aspirations ever wants to do
anything that might pique even a single Senator.
Adrian Karatnycky, President of Freedom House, offers
this observation: "The anti-Communists of Eastern Europe
have left the issues of how to settle scores to the
democratic political process. But here, what someone did
back in the Cold War can still be used to settle scores
in ways that have little bearing on the issues of today.
That would seem strange to people in Poland, Hungary or
the Czech Republic."
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Muravchik's Heaven on Earth
Josh Muravchik may soon be coming up again for air: his new
book about the idea of socialism and the luminaries who
advanced it, "Heaven on Earth: The Rise and Fall of Socialsm"
(Encounter Books), has gone to the printer, and should
be available in a few months. We'll give readers of
Notesonline a heads-up about how to order the book—-and
our own impressions of Josh's always provocative
approach--in a future issue.
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The Enron-ization of Capitalism . . . ?
Those who have grown interested in contemporary business
practice through the Enron story may be interested in
the wider trend in corporate number-crunching that Enron
in some ways reflects. The old system used to calculate
corporate earnings and other basic data (called Generally
Accepted Accounting Practices, or GAAP) is gradually being
abandoned for other methods. A good article in a recent
"Business Week" explains "a disturbing trend among
companies to calculate profits in their own idiosyncratic
ways--and an increasing willingness among investors and
analysts to accept those nonstandard tallies…."
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"It's Your Money": Does the President Think Government is Theft?"
Old-time socialists were convinced that coporations
and banks did nothing more than siphon away the people's
money: the surplus value of workers' labor. Now comes
President Bush with a view on taxation that seems to
turn that point of view upside down.
"It's your money," the President told his prosperous
audience in Ontario, California, last week, returning
to one of the favorite themes of his 2000 presidential
campaign. "We'll let you keep your own money." The 19th
Century French socialist, Pierre-Joseph Proudhon, taunted
the bourgeoisie of his day with the slogan, "Property is
theft." Does our President believe that government is
based on a genteel form of theft? That all it does is
take people's money away?
Taxes and the role of government are now back in focus in
political debate, and social democrats may have a contri-
bution to make. We have had our own difficult argument
with the Old Left about the roles of markets, entrepreneur-
ship, and capital. In coming to understand where vintage
socialism went wrong we may have acquired a few bits of
useful insight.
Contemporary social democrats no longer attack the
legitimacy of capitalism. (Look at the way Tony Blair and
Gerhard Schroeder cultivate the business leadership
in their countries.) We have learned very well that some
who criticize the practices of business and finance in
the name of the public interest actually do harbor hidden
and harmful agendas. But we also understand that it is
legitimate and often beneficial for government and civil
society -- including democratic trade unions -- to exert
influence on the marketplace to correct abuses or provide
public goods that the market itself does not provide.
President Bush's "It's your money" riff implies that the
government that takes “your money” is not really your
government, and, besides, that government is all about
taking your money away-–not about helping you get or keep
it. Except for some interesting comments by Senator John
Kerry, the Democrats have been reluctant to respond to
this interesting proposition. For all the partisan
indignation it provoked, Senator Daschle's recent speech
did not rise to this conceptual challenge; it only argued
for tax cuts in a somewhat different format. That seems
mistaken. The President's government bashing is unhealthy.
It may also be politically imprudent. The destruction of
the World Trade Center, monument to America's prowess in
trade and finance, reminded many how profoundly dependent
our private economy is on the strength of government:
the thousands in the police, fire, and medical services
who gave and risked their lives; the importance of the
public infrastructure of transportation, utilities, and
communications; the courage of the men and women of the
armed forces. Boasts about “your money” and scorn for
government don't resonate well over that somber abyss in
Lower Manhattan.
But it also must be said that for a generation and more
Democrats haven't been doing a very good job of convincing
Middle America–-let alone our economic elites -– that it's
their government, too. Marshall Wittman of The Hudson
Institute (whom some “Notes” readers may remember from his
YPSL days at NYU) stated the predicament nicely back in a
July 12 issue of the Democratic Leadership Council's
"Blueprint" magazine: "The two parties…are focused solely
on appeasing their respective bases with either more tax
cuts or more government spending. The Democrats say, 'It's
your entitlement.' The Republicans say, 'It's your money.'"
[http://www.ndol.org.]
Wittman, today a McCain Republican, argues that There has
to be room in this debate for those who see the civic process
as something more than a way to get resources for one or
another form of hand-out. He's right that some Democrats
helped create this problem.
If one believes that all the government does is skim money
away from those who rightfully own and control the private
economy in order to redistribute it to those who can't
fend adequately for themselves, then President Bush's
position would have a certain harsh Logic. But if
government actually contributes to the productivity of
the economy, then taxes are not simply an imposition.
They not only go to benefit the losers and the needy,
they provide goods and services that the rich also
require. As Justice Oliver Wendell Holmes once summed
it up, taxes can be "the price we pay for civilization."
The attacks on September 11 may help us break out of old
formulas that have bound our thinking about the relationship
between the public and the private sectors. President Clinton
laid some groundwork by challenging the scope of the welfare
entitlement, which had contributed to a widespread sense that
taxes are exacted from the productive for the unproductive.
We may now be seeing a growing skepticism toward the claims
of those glorified the Eighties and Nineties as the Lords
of Economic Creation. They are being reminded that they owe
something of their success to the health of the public sector.
Who are we talking about? Think of the high tech Moguls who
gleaned the benefits of an Internet technology developed in
the main by government; about captains of industries that
rely on skilled workers educated in large part at public
expense; about a phenomenal air travel empire built up
with vast infusions of public support for everything from
airframes to airports; about auto and trucking investors
who rode to riches on the national highways; about authors,
filmmakers, and musicians protected by an elaborate government
framework of patents and copyrights. Make your own list, and
it quickly becomes a long one.
The case that needs to be made again is that the whole of the
productive economy is more than the sum, so to speak, of its
private parts. There indeed is something that can be called
the social component of the nation's economic capability,
and it is closely bound up with the public sector, with
government. One may, of course, argue that government takes
more than its share of the national wealth, or that in many
respects it uses what it takes in ways that are inefficient
or unwise. But critics of government are now likely to
find themselves obliged to put forward the specifics, case by
case. It is becoming harder to make the sweeping ideological
assertion that taxes are exacted from those whose claims
to private wealth always deserve the moral high ground.
For some conservatives, this may not be such a big
concession. Adam Smith stated the premises as well as
anyone in “The Wealth of Nations”: “The subjects of every
state ought to contribute toward the support of the
government in proportion to their respective abilities;
that is, in proportion to the revenue which they respectively
enjoy under the protection of the state. The expense of
government to the individuals of a great nation is like
the expense of management to the joint tenants of a great
estate, who are all obliged to contribute in proportion to
their respective interests in the state."
It's your money? It's not so simple.
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