There is a structural flaw in modern capitalism. Tremendous income gains are going to those in the top 20 percent, but prospects are diminishing for those in the middle and working classes. This gigantic trend widens inequality, exacerbates social segmentation, fuels distrust and led to President Donald Trump.
Conservative intellectuals were slow to understanding the seriousness of this structural problem, but over the past few years they have begun to grapple with the consequences. Basically, many conservative intellectuals have come to terms with income redistribution.
Conservatives tend to like their redistribution done at the local level, and they like to use market-friendly mechanisms, like child tax credits, mobility vouchers and wage subsidies. But the intent is the same: to give those who are struggling more security and opportunity.
Over the past several years many plans have emerged from the various right-leaning thinking tanks that imagine consumer-driven health care that also has universal or near universal coverage. These plans, from places like the American Enterprise Institute, use tax credits or pre-funded health savings accounts or some other method to give middle- and working-class people coverage, while reducing regulations and improving incentives throughout the system.
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Republican politicians could have picked up one of these plans to create a better system that did not punish the poor. But there are two crucial differences between the conservative policy johnnies and Republican politicians.
First, conservative policy intellectuals tend to have accepted the fact that American society is coming apart and that measures need to be taken to assist the working class. Republican politicians show no awareness of this fact. Second, conservative intellectuals have a vision for how they want American society to be in the 21st century. Republican politicians have a vision of how they want American government to be in the 21st century.
Because Republicans have no governing vision, they can’t really replace the Obama vision with some alternative. They just accept the basic structure of Obamacare and cut it back some.
Because Republicans have no national vision, they seem largely uninterested in the actual effects their legislation would have on the country at large. This Senate bill would be completely unworkable because anybody with half a brain would get insurance only when they got sick.
Worse, this bill takes all the devastating trends afflicting the middle and working classes — all the instability, all the struggle and pain — and it makes them worse. As the Congressional Budget Office indicated, the Senate plan would throw 22 million people off the insurance rolls. It would send them to private insurance plans that they could not afford to buy. Under the Senate bill, deductibles for poor families would be more than half of their annual income. The plans are so incompetently and cruelly designed that as the CBO put it, “few low-income people would purchase any plan.”
This is not a conservative vision of American society. It’s a vision rendered cruel by its obliviousness. I have been thinking about the underlying mentality that now governs Republican politics. The best I can do is the atomistic mentality described by Alexis de Tocqueville: “They owe nothing to any man, they expect nothing from any man; they acquire the habit of always considering themselves as standing alone, and they are apt to imagine that their whole destiny is in their own hands.
“Thus not only does democracy make every man forget his ancestors, but it hides his descendants and separates his contemporaries from him; it throws him back forever upon himself alone and threatens in the end to confine him entirely within the solitude of his own heart.”