¶ Mechele Dickerson joins the Chuck ToddCast
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¶ Both the left & right can learn from "The Middle Class New Deal"
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As we get to the run up of not Just Campaign twenty twenty six week Campaign twenty twenty eight, one of the things I'm going to actively be seeking out are academics and authors and historians that are that are trying to lay out visions that look forward, not necessarily relitigating the past and whether it's in How are we going to reform and change and modernize the public education system, which I think is something that I hope our next
presidential campaign can begin to discuss. And in that vein, there's a terrific new book out by a professor at the University of Texas Law School, by Michelle Dickerson. She's my guest today.
The book is.
Called The middle Class New Deal, Restoring Upward Mobility and the American Dream. This is more than just a white paper of saying of aspiration. This is a book with a detailed blueprint for how we should tackle this. And what's in interesting about this and I'm going to shut
¶ What motivated you to put these ideas under a "New Deal" framework
up here in a minute and bring in Michelle, is that I view it as this better be a book that anybody running for president, I don't care which party you're running from, ought to read, because whether you're a liberal or conservative, the goals that are outlined here in this book, I think are something that frankly, both the left and the right aspire to. We're just disagreeing on
how we get there. But it does begin here with I think the reminder that in order to have a middle class, you actually have to have government policy that wants to have a middle class. And I think that was before we begin our conversation. The most important insight I think that I took away from this book. So, without further ado, let me bring in Michelle Dickerson, University of Texas Law School. Been there, multiple books, She's written multiple books. Is again not a I don't this doesn't
¶ The New Deal created the first American middle class
strike me. It didn't strike me as a political book. It struck me as a answer to the economic anxiety that has essentially been reflected in what has been now twenty years of what I call vote against politics. We know what we don't want, nobody's yet come up with the answer for what we do want. So Michelle Dickerson, welcome to the podcast.
Thanks for having me. I'm glad to be here.
So let me start with this because I think you know you hear the words new deal, and we've seen a lot of economic prescriptions using the umbrella of the new deal, right, and you know a lot of times it's just borrowing a popular phrase to sell something that people have been trying to sell for years. This didn't strike me. They tell me your origin as to what motivated you to put these ideas together the way you did.
The first thing I did is I thought about, so
¶ Free market economies don't automatically create a middle class
how is it that we have a middle class? And this is a point that you just made in the introduction. We have a middle class because political leaders decided we needed to have a middle class. Now, part of it was in response to the depression, but after the depression in World War one world War two, political leader said, you know what, it's not a bad thing to have a middle class. They do good things for the US economy.
And also as political leaders, we need to do good things for lower and middle income folks who are looking to achieve the American dream to have upward mobility. So I landed on the middle Class New Deal because we created the middle class roughly as part of the First New Deal, and political leaders need to stop. And I agree with the way that you framed this. This is not a left or a right, or a Democrat or
a Republican book. This is a book for all political leaders to make a decision do we care about the middle class in this country or not?
I thought the most important insight and it's almost to me it's the table stakes, right. If you don't accept this premise, then you're not going to accept the premise of the book is that somehow a middle class just happens in a free market economy. The fact of the matter, it doesn't. And when we lionize, you know, you know we It's always one of those things. Everybody wants to say they're in the middle class, right. It is popular
¶ Socialism & interfering with free markets created the middle class
to be in the middle class, even as we aspire to be. Even when you're not in the middle class anymore, you still want to say, well, I've got middle class roots, right, there's something about it, right, we want to be here. But this is not something a free market economy creates. Free Market economies, when left unchecked, create uber rich and a lot of poor. It actually, it doesn't automatically create
a middle class. And I think understanding the history of the great building of the middle class of the fifties,
¶ A stable middle class is critical for stability
the GI Bill, that was a government essentially making sure the troops that came home didn't become poor, gave them an opportunity to stay out of poverty, not even necessarily bringing people from poverty to the middle class. The development of the suburbs, the development of all of these things were in support of the middle of creating a middle class.
And I think that might be hard for some of my free market conservative friends to sort of wrap their arms around, but guess what government actually has to create the conditions to allow a middle class to exist. Did I summarize your argument parently?
We did exactly, And what I would say is, if you want to know what happens when the government is not involved, look at what has happened to lower and
¶ The uber wealthy can only consume so much & don't drive spending
middle income people since the nineteen eighties. So if we want the free market to control, what that means is we will have the uber uber rich and everyone else will be struggling. So it's really hilarious to me when people look back at the middle class and all of the wonderful things it did. It helps people go to college,
it helped people buy homes. But if we really wanted to put labels on what happened that the factors that helped to create the middle class, we'd have to say things like socialism and interfering with free markets, And of course nobody wants to say those words. The S word is just horrible. Well, fine, don't call it socialism, just call it what do we think this government owes to people who work hard, get up every day and try to do the right thing, and yet continue to struggle.
If your response is we owe them nothing, then we need to just say that.
Well, and you know I can make a national security are if you want a stable and thriving population that also is patriotic, then you better have a sustainable middle class if we don't have one, Yeah, if we.
Want a happy be population. So if again, even ignoring
¶ People struggling don't want to be wealthy, just financially secure
whether or not you care about the economic security of most families in this country, one of the things that I always say when people ask me, well, why is it so good to have a middle class? I can point to lots of things like toasters, or trash cans or Ford pickup trucks. Billionaires can only buy so many of those. So even if you don't care about the stability of human beings, the economic stability of human beings, y'all ought to care whether or not you can sell
lots of pickup trucks and trash cans and microwaves. That's what the middle past also does. They drive spending in this economy. And if they're struggling financially, or if they're scared and we're seeing a lot of fear now, which is also unhealthy, then we're going to have a week economy.
So I feel as if that you're you made a case in this book that government in sort of supporting the middle class. It's not about guaranteeing a certain level of income. But it is about guaranteeing and the following items, uh, the ability, stable employment, predictable health costs, affordable education, pathways
to home ownership, and retirement security. And that those things Government has to involve itself if you want to have those guarantees, and that that that middle class is less about income and more about does the average American able
¶ Independent contractors don't get same benefits as employees
to achieve those five goals in life?
Yeah, And one of the things when I talk about the middle class that I always stress is people who are struggling financially are not saying we need to be billionaires. They're simply saying, why is it so hard for me to find a full time job forty hours a week with benefits including health insurance and a retirement plan where I am called an employee when I go to work and not an independent contractor? So why is that so hard?
Why is it so hard for me to be able to either go to college myself and not drown myself in student loan debt or help my kids go to college? Why is it so hard for me? And I'll tweak one thing that you said, it's not so much now to be able to own your own home. It's to be able to find affordable housing, even to rent in a lot of cities. Why is it so hard for me to find stable and secure housing? Why am I drowning in debt? Why don't I have savings? So you're
absolutely right. My book isn't arguing that everybody needs to earn the same thing, but everybody in this country that works hard and wants to achieve. Whether we call it the American Dream, upward mobility, I really don't care.
But everyone that wants to.
Be stable should have the opportunity to do that.
¶ Retirement security has been shifted from employers to employees
So let's talk about let's pick out these things one at a time. So the role, What are some ideas that government could do to create a more stable employment environment.
Well, one thing is to focus on what I just said, why do we continue to allow businesses to treat their employees as independent contractors? Because if you say they don't have to treat them as employees, then that means they're not guaranteed forty hours a week, they don't get benefits, they don't have the right to unionize. So we need to start asking why is it that we allow companies to outsource whole swaths of their employment of their employees
and the back as an independent contractor. We have to ask why is it. In the nineteen sixties and nineteen seventies, people that worked had a defined benefit pension plan. That's what my parents have and I talk about them in the book. My parents get two I won't say checks, because it's not checks anymore. Two deposits into their checking account every month because they worked their entire lives and
they have guaranteed retirement income. I am terrified to think what we're going to see in about ten years when people start retiring. They don't have pensions and they have not much saved in a defined contribution for a one K four three B plan.
Oh, baby boomers are the last ones that got pensions,
¶ Big companies with lots of contractors have a ton of political leverage
and ZAC gen X is the first generation. You know, you know, we're the ones that I had to figure out what is four O one K mean? Okay, it's like alphabet soup? Yeah, right, Ira roth Ira? What is that? Right? There were all these sort of new sort of you know, tax coded you know, numbers and numerologies or the names after senators who came up with the idea that we're all designed essentially to keep Americans from being angry that pensions were going away. I don't know any other way to describe it.
Yeah, they shifted the risk of retirement security from employers to employees, and they did it in ways that was designed for us to end up exactly where we are. I remember the first time I had my first job. It was at a law firm, I think, and I went there and I had to actually look at the retirement offerings. I mean, I was a bankruptcy lawyer and I've graduated from law school. It so terrified me. I had to put it down and come back the next
day because it was so complicated. Well, if I can't figure it out, imagine just a normal didn't doesn't have two degree, you know, isn't in bankruptcy employee that's sitting
¶ Amazon's delivery providers aren't set up to have employees
down trying to figure out what do I need to invest in, and when do I think I'm going to retire, and what level of income do I think I'm going to need the things that employers used to do for their workers.
Look, politically, that's going to be very difficult, right you look at Let's just take FedEx in Amazon. Right. FedEx is an older company that arguably is the first major company to succeed with independent contractors. Right and Amazon obviously many of these people that work at Amazon don't work
for Amazon right there, they're independent contractor. They have a lot of political leverage, right and the whole And there's some that will argue, well, independent contractors allow people to make more money because it can be a side hustle and right. You know, there are different ways that have been used frankly to convince or persuade parts of the population. No, no, no, no no. These these empower you, These don't hurt you,
you know. And I'm not asking you to be a political messaging guru here, but I think that's going to be the political challenge to an obvious policy conundrum. Right.
And we talk a lot about freedom and choice. So you have the freedom. You can choose not to work forty hours a week you want to have you want to be an independent contract it's good for you. You can choose to work in the gig economy, you know, pick up a little bit of work here and there. But if you actually talk to the people who are exercising the choice to be an independent contractor, it's not a choice.
And I can say this from personal experience. I have a twenty five year old son who worked briefly for Amazon, but he didn't work for Amazon. He worked for a delivery service provider and they treated him very well. But at the end of the day, he was never going to work for Amazon, and he was never going to
¶ CEO's of big companies hate the cost of healthcare
get forty hours a week working at the DSP because it wasn't set up for them to be full time forty hour a week. You got to give them benefits.
Do you think this has to be mandatory legislation that basically says is there you know, can you design what would a what would a simple piece of legislation do to sort of dissuade the independent contractor route.
Well, several states have actually tried. I think California tried. All have failed, but several states have tried. Basically, if you have someone that is doing the same work that people you called employees are doing, those people must be treated like employees, whether you call them contractors or not. So give them health insurance, allow them to participate in the retirement plans, and more importantly, allow them to organize and to participate in any or union organizing attempts at
your company. Because at the end of the day, when you have fewer employees your cost or less as a business, and you're not at grade of a risk of having a strong union presence, because if you have fewer employees, you're less likely to have to deal with those pesky unions.
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¶ Business could support a system where they aren't responsible for healthcare
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you get these things? What can I wear? What can you wear at the meeting? What do you wear on a zoom? I have to say it's as if Quinn sort of says, hey, look, we've got the modern sort of working wardrobe ready for you, clothing that looks stylish, looks good, but is actually practical and isn't going to break the bank. So refresher winter wardrobe with Quint's go
¶ Employer based healthcare was born out of World War 2 wage controls
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was a deal to be cut with big business. You know I would hear the complaints, you know, because I've worked where I worked I'd have interactions with this CEO of ge and I've had interactions with the CEO of Comcast and interactions with other CEOs, and all of them would complain about the cost of healthcare, and so you could I always thought that there was this great grand bargain where the government would say, look, we can save you some money. We'll take care of health We'll take
healthcare out of your situation. Then you can go back to having pensions or you can go back to you know that there was this grand bargain to be had, so to tackle predictable health costs, you know, is it
¶ Government guaranteed health insurance has many upsides
realistic to stick with the employer based healthcare system that ultimately we're still kind of attached to, even though the Affordable Care Act was supposed to make this a bit more portable. Do you think we need policy fixes that sort of deal with the world that we live in, or do we need to radically rethink how we deliver health insurance to folks or health care.
I would say we need to make a radical change. And these are a couple of options. And I'll lead into this by telling a story involving a class that I taught at ut So it was a class that had both law students, public policy students, schools from students
from a school of education, and foreign exchange students. So we were talking about the middle class and this particular class session we were talking about insurance and one of the students from the Netherlands finally asked a question says, I don't understand why when we're talking about health insurance you all keep talking about jobs. What do jobs have to do with anything? And then we had to explain to her, Well, in the US, that's how we provide
health insurance. So if we leave it with businesses, businesses have to assume the cost. So rather than pushing the cost onto employees, tell them that, you know, whether we want to say that there are caps on what they can charge or but businesses can lobby Congress and be much more effective in coming up with solution that individual
employees can. I will also say, and this is not necessarily a model that can be scaled, but when we look at the way that a military personnel in this country, how they receive health insurance, they receive it from the government. Is it perfect? They would probably say no, Is everyone covered? Yes they are. So we have to do something radical
because we can't continue with the status quo. And I would also again thinking back to the past, although I'm not going to stick say in the past, I want us to be thinking in terms of the.
Oh, and this is the point of your book is to stop. You know, we can't relitigate stuff.
That that has happened yet.
Right.
But the reason that we have so many employee benefits
¶ The debate around government guaranteed education has stalled
tied into work was because in World War Two there was a wage controls, so they couldn't increase wages. So what businesses did is say, oh, but we can give you non wage benefits. Once that happened, it became the norm. And so one of the things I want political leaders to do is to say, well, if it wasn't the norm until we created it, maybe we can create something new and that'll then become.
The norm, a new essentially some new norms exactly if you want. But you're right, I mean it was people would panic if they found out healthcare wasn't connected to work. Yeah, right, that's what Look, that's what the Clintons found out when they first touched the healthcare back in ninety three. Whoa, whoa, whoa.
¶ What steps could be taken to make progress in public education?
People hate the system, but they like their own health.
Care exactly, and they're always afraid that, well, I have to have the best health care and I have to have every single procedure that I want covered. And that's great that in theory, until you lose your job and then you have no health care. So one of the discussions we're going to have to have is to ask people, are you going to fight for what you have right now, knowing that if you lose your job you have nothing?
You know, I what are I think there are real trade offs here that might be net positives for everybody, right if the government takes on the role of essentially guaranteeing insurance, guarantee health care, access to healthcare, in theory, that should free up money for corporations. I mean, and you know, I don't know. You know, we don't do nuance very well in our country anymore in our political debates.
But you know, that seems to be the type of thing that that that in a in a mature setting, that that people would accept the idea that this is trade offs. This isn't you know. Okay, I want this guarantee,
¶ In rural areas there is no "school choice", just home school
but it means it won't get it over here, okay, and you put it out.
There, Yeah, I mean we're again at the where we unfortunately spend most of our time in the political space with you know, we let perfect be the enemy of good, right, and so why not say these are the six things that we think people in this country deserve. And if we can agree that everyone deserves healthcare, everyone deserves some kind of retirement security, we can then say, Okay, now that we've agreed on that, who do we think should
be responsible for providing it? Ignoring who may be providing it right now, but who going forward do we think should be responsible for providing it? That to me is
¶ Public school facilities are underutilized
a much more productive conversation than relitigating, well, it's not fair if businesses have to do this and it increase their costs. Okay, let's just assume that your true. Let's go forward.
Let's talk about affordable education. You know, one of the head scratchers to me, I was convinced back in the mid nineties that it was inevitable that we were going to what I called thirteenth and fourteenth grade, that we
¶ Public school calendar revolves around an agrarian calendar
were going that public education was essentially going to extend another two years, that there was going to be guaranteed public education up through quote unquote fourteen years of it, so you divided up how you want to divide it up. Right, You had your primary and secondary, and then you have essentially free community college, right the first two years of
community college. The fact that we haven't gotten there, you know, the fact that we're still, like a think, debating university universal kindergarten in some states we have, I would argue the entire our education debate is just sort of stalled, right, and we're stuck with this terrible system of charters and where everybody has taken education in their own hands. And you know, you're discussing in some cases more about higher education.
But I feel like the entire educational system just desperately needs a twenty first century makeover, and it's so politically polarized that we don't know how to do it. What are a few steps, a few ideas you're putting out there in the book that you think could make a tangible progress here.
Well, I'll leave by saying one group that we also have to bring into this discussion our employers. Because even if we had K fourteen and everyone had a free
¶ Without good public education, we'll have a poor labor force
community college education, employers need to be willing to hire them and pay them a decent wage. The challenge now is that the bachelor's degree has largely become the gateway to the middle class. So employers also need to come into the conversation and say, we're going to hire people and treat them decently even if they don't have a bachelor's degree. But you're absolutely right, we've got to look
at what happens starting in kindergarten. I would like to start actually in preschool as well, And how do we treat lower and middle income children in public schools, And how do we treat rich children and lower rich children who are more likely to be educated in private schools. So we need to have an honest discussion when we're talking about charters and vouchers and all of these other things. Most lower and middle income kids in this country are
educated in a public school somewhere. If they are in a rural area. There are no such things as choice options. There's no choice.
To say this all the time. I mean, you know, it's essentially homeschool exactly. That's the only realistic option if you don't like your school.
And some parents are doing that. But as we saw during COVID, exactly parents were like, oh my goodness, we love our school. Teachers, Boy, can we get these children back?
Right?
And so it's great to say homes Well, you know people need a homeschool. Most parents need two incomes in order to survive. So that's just not a thing. So one of the things I argue, and I know some of the things I proposed in the book are are quite radical, but we need to look at the public school buildings and ask ourselves why are they so underutilized? How can we use them to do more? So we know that there are educational gaps between lower and middle
income children and lower rich and rich children. What can
¶ Schools should add a voluntary summer trimester
we do with the public school system to try to close those gaps. One of the things that we do now is we still treat public school the public school calendar is if we're in a great economy, So for three some three months of the.
Summer, got to deal with the crops. Everybody, right, that's right.
So you have children just there in the phrases use as a summer slide. If you're rich or lower rich, you can put your kids in these camps and robotic camps, and you can have them go to these summer high school camps on college campuses. Well, that's lovely, that's not
the reality for lower and middle income families. And so you're what I do, both in the book and also when I'm giving different talks, is we have to focus on K twelve because it's too late once children are about to turn eight, age eighteen.
No, And the whole thing is, you know, nobody's happy with the public school system, and everybody would be appalled if it went.
Away, exactly.
And and you know it's like, look, I empathize with these parents that go back and forth. Get I get school choice I had. You know, my parents didn't. The only choice they had was to find another neighborhood to live in with affordable housing, and they did that. That was that's all they could do, and that's what they did. I had a little bit more the ability to truly choose what was going to be best for my kids.
But ultimately, we are not going to have a good labor force if we don't have a good public education system. And well, look, politically, the impediments have been a weird
¶ Workers will only get equal treatment through collective bargaining
combination of people who don't want you know, I joke in the state of Virginia, it's the people that own an amusement park called King's Dominion that was making it impossible for school districts to even start two weeks earlier.
You know, it would be like these weird you know, And then there was some teachers' unions are like no, no, no, no, we want we want our time off because a lot of teachers, because they're underpaid, spend their summers looking for extra in and are afraid of that going away, right, So,
¶ How do you bring back labor unions?
which then tells you we really aren't investing very well in our school teachers if they feel like they need a second job in the summer. So it's a it's a it's been a weird challenge to sort of break this norm of summer break.
Yeah, but again one of the they're very COVID was awful. It was dreadful and and I've always had to purpose this with there's nothing good about COVID, but some good things did come out of COVID. And one of the things we saw during COVID is what happens when you have an extended educational slide. So we have children now who still have not caught up and who are still behind because of the COVID slide. So you're absolutely right, everyone has their own agenda. Actually, before I joined the
UT faculty I worked at. I was at the law school at William and Mary and so I know I know about you know, those gated communities there. Yeah, and it was just striking. It's like, oh, so if you all don't want to lose cheap high school labor, that's the reason you want to. Oh, okay, that makes sense. Yeah, but for the school teachers, one of the things that we can do if we're using our K twelve buildings more effectively, we can actually allow the school teachers that
¶ Middle & lower class have suffered since labor unions were gutted
want to they don't have to to pick up extra money in their area of expertise.
You call this the summer trimester essentially.
Concept exactly. Yeah, just the building is there, So why not use the building in ways that can put a little more money in the pockets of school teachers and also make sure that lower and middle income children get the same educational and vocational opportunities that rich kids do.
Now, let's talk about labor labor unions, because what's interesting is we're in a moment right now where you know, look, I think you and I are of the generation where labor unions were a punching back, you know, and politically,
¶ Union culture is merged with corporate culture in Europe
you know, it's like you know, it's almost like that every labor union was viewed through the prism of Jimmy Hoffa, right, and it's just like they're all, you know, and it really the damage, the perception damage Jimmy off did to the entire concept of collective bargaining and unions is is I think one of those one of those moments that probably we as sort of historical journalists need to unpack and realize, look at the damage this did. But there's now sort of an open mind on this. Now there's
less ideological divide about labor unions. There's still some skepticism in corporate right now, the divide really seems to be corporate America versus everybody else. Right, you have a Donald Trump that in theory sees, you know, wants to be
on the side at least of the trade unions. They're there, and I think with AI, the fear of AI job displacement, why collar were workers who you know, I've been you know, I've been a little skeptical of news of news rem unions myself, sort of like you know, I've always viewed unions as to protect the physical labor folks more than necessarily the but that's my own bias, and I will
¶ Race & ethnicity have been used as wedges to advance a class argument
I'm you know, at the same time, the only way you're going to get equal treatment is through collective bargainy, right, we're about to I think we're going to see this in college sports. By the way, that's a separate topic, but you seem to peg one of the one of the reasons why we had a strong middle class in the fifties and sixties was because we openly accepted labor unions. So how do you bring that back?
Well, one of the divides that I think we're also seeing is there's a generational divide. So I remember when I first started teaching courses on the middle class. Again, this is one of the sessions where we were talking about labor and I had a student in the class to raise their hand and say, so, you know, we've been talking about this whole thing with you know, rights and workers' power, and you've been talking about unions. Exactly
what is a union? And it was jarring to me until it occurred to me that we had so demonized unions that a lot of students fifteen years ago really weren't familiar with the benefits that unions actually could provide. Students now they know exactly what unions do. Part of it is because I think they've looked at their local baristas who have gone out on strike. They've looked at in the educational context, some of the graduate assistants that
have gone out on strike. I will not talk at all about sports because I'm very involved in that space at the University of Texas. I'm not going to talk about that. But yeah, I think that we have to acknowledge that nothing good has happened to lower and middle income workers since we gutted union. I would say Jimmy
Hoffa is a very bad visual. I will also say that the destruction of pat Co by Ronald Reagan was another one of those moments exactly where we forget that that then told everybody else you can go out and
¶ The entire middle class is suffering economically
destroy union two.
Yeah, it is a you know, I look at the model Germany has, and it's always been a fascinating model where workers are actually on the board of directors like they're so the union culture is so embedded with the corporate culture that it actually isn't as it doesn't strike me as antagonistic. Is there a model there worth worth copying?
We have to look at the union or employees workers as partners. And so again, when we're deciding who gets what, if you view the union as a partner rather than as the inner, I think we have a very different framework going forward. The businesses often views the government as a partner. Well, if you view the government, if you have these public private partnerships with the government, why are you so hostile to the people that actually make it
possible for your company to be productive. So, whether it's there on the boards or you are genuinely working toward these so we're all rowing in the same direction. We don't have that now, but I think we may get that if no other reason, young people are going to demand it.
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¶ How do you prioritize anti-poverty programs to revive the middle class?
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¶ Upward mobility is wired into the DNA of Americans
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are classified. Sometimes people get blinded by race and ethnicity, when really our divides have always been class, and race and ethnicity have been sort of used as wedges to to to advance a class argument one way or the other. You know, well, maybe it's impossible, and maybe I'm asking you a political question and you're not offering a political question. But that seems to be something that we've got to get over as a culture before we all embrace a union mindset.
I think we also have to admit it. I mean, you admit it. I know that it is true. A lot of people will not admit even now, a lot of the conversations that we are having are really about race and ethnicity. They are not about anything else. I don't care whether we's in the immigration space or guy.
Look at Todd, Donald Trump and the trade unions. He's always worried about the trade unions. He's never worried about
¶ Billionaires aren't incentivized to create a healthy middle class
anybody at SEIU exactly.
And Sciu just.
Looks that union looks different than the Carpenters Union does. Although I would argue the Carpenter's Union looks a lot more like SCIU than he thinks, but you get my drift.
Yeah, well, even the Teamsters, I mean, that was the one union that was more inclined to support the Republican Party than the Democratic Party, and their membership looks very different than the service workers unions. And so one of the things we're going to we're going to have to stop doing is saying that, well, the problems of the middle class are the workers are lazy? Okay, so which workers are we talking about? Are we talking about all workers or do you have a certain profile of a
worker in mind? What made me actually think that I was sort of onto something here because I've been writing this book for an eternity. But it was the twenties, it was before the twenty sixteen election. We heard all of this, oh the angry middle class, and Hillary Clinton
¶ There are parallels between the current moment & the Gilded Age
and Donald Trump were talking about how much they loved the middle class and the angst of the middle class. And then I kept asking, so, exactly which middle class are we talking about here? Because it is absolutely true, absolutely true, that there is economic inequality and that there is anxiety. There's economic anxiety, but that has been true
for black and Latunal workers forever. The shift that we're seeing now is the same way that the black and Latino middle class has been treated, is the way the entire middle class is being treated. And if we can get lower and middle income workers to say, this is not tribalism, this is not people that don't look like us,
we are all being treated the same way. None of us can afford to send our kids to college, none of us can find a forty hour full time job where we are called an employee, and none of us
¶ Should corporations build communities the way Hershey did?
can find an affordable housing either.
Look what made I think this book, also why I think it should be should be read by all these presidential candidates is that, you know, a lot of times presidential candidates will focus on poverty, stafe safety net programs primarily focused on helping the poor, and these you know, whether it's a fight about Medicaid aid right, whether it's I and you know the synic and me has often said, look, all voters are self centered. Okay, let's let's not pretend
that they aren't. And that's okay. It's your job as the politician to figure out a message that both appeals to them and at the same you know, in a self centered way, but at the same time can help help a greater good. Where do you prioritize poverty programs
in your vision here for a renewed middle class? Or and you sort of see in an odd way that it kind of if you revive a intentionally revive a middle class, right, because essentially we're arguing that we intentionally dismantled it, so you've got to intentionally bring it back that you're actually creating an anti poverty program without having to target the poor.
And again, I'll answer this with someone with the story with the same course that I taught. I was saying something in class and a student said something about either Medicaid or AFDC, and I said, oh, no, no, no, no, we don't care about poor people in here. And then I had to stop myself and say, no, no, no, I mean I do care about poor people, that's not the
focus of this class. And then I realized that my emphasis in teaching and also in the book is the goal in this country has always been to take people from being poor to being middle income upward. Mobility is wired into the DNA of people in this country. So
¶ Politicians have to help constituents be ok, not just tell them they're ok
though I am focusing mostly on the middle class. I need us to be sure that we're doing things to help poor people to become somewhat financially stable, because without that, they can't become middle class. And looping back to a comment that you made earlier, everybody wants to be middle class. It's the norm. It's viewed as you know, sort of apple pie and and America and the national anthem. Given that,
¶ 2016 election of Trump was the white middle class primal scream
I think we need to say, let's focus on the middle class, because people who are poor are aspiring to be middle class.
Who's the uh, who do you envision are the biggest optic? Who are what is the biggest obstacle to your middle class new deal? In your mind? When you think about the opposition, who is it?
Billionaires? Billionaires that control Amazon, it is in their best interest to keep Amazon, to keep the people that drive Amazon trucks employed by DSPs and not employed by Amazon. DSP would say that delivery service providers right, It is in the best interest of billionaires to be able to eliminate jobs and to automate jobs, and to have favorable
¶ An eroding middle class can drive societies into autocracy
tax credits for being innovative, but not be forced to do anything for the human beings that you have now caused to lose their jobs. So again, if the lower income people that want to become middle class, and if the middle class folks who would like to remain middle class for the rest of their lives looked up economically and said those are the problems, rather than looking around at each other and saying, well, because that person is of a different race, so that person is a different ethnicity,
they're are the problem. I think we could actually work on some solutions here.
You know, history doesn't repeat itself, but it often rhymes. And you know, it feels like we are in an almost identical place that we were about one hundred years ago, where you had this incredible new technology industrial revolution. Every day was bringing more incredible developments to market, whether it's
¶ Trump administration keeps having "let them eat cake" moments
the car right, whether it was electricity, personalized, you know, getting it to any place. You know, more and more that we got it, and we had to come up with a whole bunch of laws because left, you know, whether it was the oil barons, the railroad barons, the auto barons, left of their own device. They were you know, not everybody was going to be like mister Hershey, who thought I'm going to build a city with an amusement park and have this wonderful community. There were a few
companies people like that, but not many Hershey. I find that to be just just as a quick sort of a sidetrack here. Where do you put Hershey in sort of that in that world of you know, should corporations behave the way he did in building a community and wanting to have that or was that just sort of
¶ Middle class support tax cuts for rich, thinking they'll become rich
an outlier type of thing that wouldn't work for other industries.
I think it would work for all industries if again, we work on the from the premise that we would like to have happy, healthy workers. So you don't need to build a community, but you could commit, for example, that whatever the top workers earn won't be a larger than a fill in the blanks multiple of what the forest workers earn.
Say, that's Costco right now. About the biggest company that does this is Costco right The CEO always emphasizes that ratio.
I believe yeah, and I am a Costco member. I
¶ Younger Americans suffer from a sense of economic nihilism
will always be a Costco member. When I go into Costco, these are the happiest employees you will ever see. I took my children. Now we're twenty two and twenty five, but we and their boys so they would eat everything that wasn't nailed down. We'd go into Costco and get those samples. They have gone back now as adults and have seen some of the same employees that used to allow them to raid the samples when they were children. So it can work. It definitely can work.
Well, what kind of you know if you had if you had an hour to brief President Trump on this, what do you think would be your best way to get him interested in US?
I would say that your constituents, the people that support you,
¶ Bill Clinton's strength was understanding middle class, he came from it
are struggling. They are not struggling because of race issues and class issues. They are struggling because they don't know how they're going to pay their bills at the end of this month. So if you want these people to continue to support you, you're going to have to figure out a way not to just say they're doing okay,
but to actually help them to do okay. We can't He will not be able to continue to tell people that the affordability issue is a hoax, because at the end of every month, when people don't have enough to pay their bills for that month, they know it's not a hoax because they're living it.
Do you view the election of Donald Trump as the middle class primal screen.
I viewed the twenty sixteen election as the middle class primal screen, but it was the fight middle class primal screen because it was the first time I think that white Americans realized, ooh, something is wrong here, and they didn't exactly know how to react, but they knew it in their heart, their soul, and their pockets that something is happening to us now that isn't supposed to be happening to us.
And the risk of not addressing this erosion of the middle class, because that's I mean, look, you give me, you know, I look at you know, how did Venezuela get Chavez and Maduro? You had a wealthy elite and a massive number of poor people, no middle class. How did Arawan turn a democracy into an autocracy? No middle class? So I know the political risk here of eroding a
middle class. It will drive people into one direction or the other, but it will drive them into you know, is this We've got ten years, We've got twenty years? Is this fear of a lost generation? What is your timetable here of like, look, regardless of whether they your book is the blueprint, We've got to do something about saving the middle class and expanding it rather than what we've seen.
I think it's less than definitely less than twenty years. I would say it's less than ten years. One of the reasons I would say it's less than ten years is because even the younger boomers are going to be retiring soon or thinking about retiring, and they're going to freak out in panic because they can't retire. Their children are going to increasingly have to subsidize their housing and their living expenses. And so I totally agree with you.
We need to look a little bit to the history, though, I want to focus going forward to say how do these economies end? They don't end well. So the fact that there was a Great Gatsby party at Mara a Lago over Christmas, I thought, oh, that is a symbol that you perhaps really don't want to have.
Oh they've done some things. You're just sitting there going, wow, that was a let the meat cake moment they have. You know, there's this exclusive club that they've created in DC where the entry fee is a half a million dollars and you're like, what are we doing?
Yeah, and you probably want to hide that from the eighty percent of the people in this country that are terrified.
That they're going to shocking that they didn't hide it. Yeah, that's I think, why aren't you embarrassed by this?
Maybe they're all in an echo chamber and they really don't talk to anybody that earns like, you know, ninety or even one hundred thousand dollars a year.
You know, this is why I really like this book. And I'm going to close on this, which is it is Look, you know, I've always tried to explain, you know, why do why do middle class people not want to rate, not always want to raise taxes on high class people because they think they're going to be wealthy someday. Right, That's the beauty of Americas. We all think, well, that could be me, and it's like the ninety percent chance
it ain't going to be you. But you know what, if we don't have that mindset that you know, that is sort of that is what has always sort of created the engine of growth in this in this country. So, you know, how do you embrace the aspiration? You know, making middle class aspirational?
Is that well, And one of the things that really scares me, and again it is because I have a twenty two, twenty five year old, and I also teach students sort of ranging from twenty two to thirty. Is there's sort of this economic nihilism which terrifies me, where they don't think things are going to get better, where they are angry at older people. We've got to fix that if we want this country to remain normal and
stable economically and politically. To the point that you've just made, we have got to make young people believe that if they work hard, they try hard, things will be good for them or things will get better.
It's a great Bill Clinton isn't right, work hard, play by.
The rules exactly exactly.
That was all. And I think that is a universalism. You know, it's funny. It's like there's for a variety of reasons, there's a lot of sort of of the Bill Clinton era that gets ignored or it's been sort of washed away and all this stuff. But one thing he understood was the middle class. It's a way that I don't I don't know, and in some ways because he was of it right, and I wonder how important you know that experience truly is with our elected officials.
Well, for him it was key because not only could
he talk about the middle class. He could talk to the middle class because there was a point in his life when he was poor, right, And so when you have gone, when you understand the importance of upward mobility, that you were a poor kid in arc and Hope, Arkansas who ultimately occupied sixteen hundred Pennsylvania abvenue, you can speak about the struggles of the poor and what it takes to get from there to where he was because he literally had to do it.
Yeah. Now, I remember during his early campaign that the number one place he would campaign, no matter the community he was in, was always the community college.
Oh exactly.
He knew exactly exactly the type of people that he should be talking to. Anyway, Michelle, this was great. Congrats in the book. Like I said, I hope you know, whether it's Gavin Newsom, jd Vance, Ram, Emanuel Pete Boodage, Glenn Younkin, anybody else. This is they ought to consume this book as they think about what they want to say to the American people in twenty twenty eight.
And I hope they do too.
All right, thanks so much, thanks for having me. Huh.
