The Wolf-Krugman Exchange: Maga man and Mamdani
By Financial Times
Key Concepts
- Maga Man: Refers to a segment of the American male population, particularly those with lower education levels, who feel economically disenfranchised and are drawn to populist political movements like MAGA.
- Economic Grievance: The core issue of men, especially those without college degrees, experiencing declining labor force participation, status, and well-being due to structural economic and social changes.
- Labor Force Participation Rate: The percentage of the working-age population that is either employed or actively seeking employment.
- Deindustrialization: The shift of economies away from manufacturing and heavy industry towards service-based sectors.
- Geographic Differentiation: The concentration of economic decline and lack of opportunity in specific regions, often former industrial heartlands.
- Social and Ideological Changes: The evolving roles of men and women in society, including increased female educational attainment and labor force participation.
- Reactionary Politics: Political movements that seek to restore a past economic and social order, often characterized by resistance to change.
- Abundance Agenda: A policy approach focused on technological advancement and economic growth to create more resources for everyone, rather than solely relying on redistribution.
- Affordability Agenda: Policies aimed at making essential goods and services, particularly housing, more accessible and affordable.
- Social Darwinism: A discredited ideology that applies principles of natural selection to human society, often used to justify inequality and a lack of social support.
The Economic Problem for American Men
The discussion centers on a significant economic problem facing American men, particularly those of prime working age (25-54). This issue is identified as a contributing factor to demoralization, especially among those with lower education levels, and a driver of political radicalization. While the phenomenon is most pronounced in America, similar trends are observed in other developed countries like Britain.
Key Statistics and Trends:
- Declining Labor Force Participation:
- 60 years ago, 97.5% of prime-age men were in the workforce (employed or actively seeking jobs).
- Currently, this number is under 90%.
- Among non-college-educated men, the rate is as high as 1 in 6 (or more) not being in the labor force.
- Divergent Trends for Women:
- Most prime-age women have been in the labor force since the late 1970s.
- Women's labor force participation has continued to rise, offsetting the decline in men's participation.
- Women now account for the majority of college graduates.
- Nearly a third of STEM graduates are women.
- Shift in Economic Structure:
- The economy has shifted from manufacturing and heavy industry to services.
- Jobs requiring significant physical strength have largely disappeared.
- Geographic Disparities:
- Men not working are concentrated in geographically differentiated areas, particularly the "eastern heartland," "greater Appalachia," and the "mining industrial belt."
- These regions have experienced a transformation in economic geography since around 1990, with employment opportunities shifting to highly educated big cities, stranding the heartland.
- Jobs that remain in these areas, like healthcare and social services, are often "female-coded" and do not require upper body strength.
Causes of the Economic Shift:
- Increased Female Education and Labor Force Participation: Women's educational attainment and their pursuit of careers, treating college as a pathway to establish a position and build a life, has fundamentally altered the labor market.
- Decline of Physically Demanding Jobs: The shift from industry to services has reduced the demand for jobs that relied on physical strength, a traditional advantage for men.
- Social and Ideological Changes: Evolving societal norms and ideologies regarding the equal roles of men and women have contributed to this transformation.
- Regional Economic Transformation: The decline of traditional industries in specific regions has left many men without viable employment options in their local areas.
The Political Response: MAGA and Reactionary Politics
The economic and social changes have fueled a political response, most notably the MAGA movement, which is seen as a form of reactionary politics.
Key Arguments and Perspectives:
- MAGA as Resistance: The MAGA movement is characterized by its resistance to these changes, promising to "bring back" a past economic and social order through "hocus pocus" means, rather than adapting to the new reality. This is compared to the promise of Brexit.
- Divergence in Ideologies: There's a noted divergence in the ideologies of young men and women. Young women are increasingly liberal and pro-government, while young men are more drawn to the new right or alt-right. This is a significant shift from past trends where women were often more conservative due to family preservation concerns.
- Reactionary Nature: The MAGA movement is described as "reactionary" in a crude sense, aiming to recreate an economic and social order that was already disappearing decades ago. This includes a desire to restore the hierarchical position of men relative to women as it existed half a century ago.
- Imaginary Past: The "good old days" that MAGA supporters yearn for are often described as imaginary, with a reality that was far less idyllic than the perceived past.
- Undeliverable Promises: Promises to bring back industrial jobs through protectionism or to revive coal mining by ignoring climate change are seen as undeliverable. Tariffs, for example, would only marginally increase manufacturing employment, not return it to previous levels.
- Anger as a Political Tool: The politics of anger and blaming others (e.g., immigrants) can sustain a movement even if it fails to deliver tangible results, drawing parallels to the Jim Crow South.
- Social Darwinism: Some segments of the right, particularly in the tech industry, are characterized as holding Social Darwinist views, believing in a natural hierarchy and that many people are destined for the "scrapheap." This ideology is seen as fundamentally anti-democratic.
Zohran Mamdani and Potential Policy Solutions
The discussion then shifts to Zohran Mamdani, the mayor-elect of New York City, and his agenda as a potential alternative, as well as broader policy solutions for economic disenfranchisement.
Zohran Mamdani's Agenda:
- Democratic Socialist Label: Mamdani identifies as a Democratic Socialist, though his platform is seen as having limited "socialist" elements in the traditional sense.
- Political Acumen: He is recognized as a brilliant politician who articulates well and relates to people's problems, making attempts to portray him as a radical Communist counterproductive.
- Limited Mayoral Power: The powers of a New York City mayor are limited by the city council, local authorities, and state government, meaning radical change is unlikely.
- Modest Proposals: His proposals include:
- Making buses free (if funding is available).
- Rent control limited to existing rent-controlled apartments.
- Opening city-run grocery stores in food deserts.
- Housing as a Key Issue: The election of Mamdani is seen as less significant than the passage of measures to make housing construction easier in New York City, which is expected to have a greater impact on affordability.
Broader Policy Solutions:
- Housing Affordability:
- This is identified as a critical area for policy intervention, similar to Britain.
- Housing costs are high not due to construction costs, but due to restrictions on building.
- This has become a nationwide problem, moving beyond "blue state" issues.
- The American suburban model of single-family housing is seen as inefficient.
- Solutions: Liberalizing construction, building more densely, and encouraging multi-family and multi-story dwellings.
- Example: Auckland, New Zealand, is cited as a poster child for successful housing liberalization.
- Public Transportation:
- High-quality public transport is crucial for modern cities, enabling efficient movement of people.
- Tokyo and some European cities are examples of cities with effective public transit.
- New York City's four-track subway system (local and express) is highlighted as a strength.
- Challenge: Supporting public transit requires sufficient density, which in turn incentivizes living in dense areas with good transit access.
- Mamdani's Role: Improving bus service, including dedicated bus lanes, could be a significant contribution.
- "Abundance" vs. "Affordability" Agendas:
- Abundance: Focuses on technological possibilities and economic growth to create more for everyone, reducing the need for redistribution.
- Affordability: Addresses issues like housing costs and the impact of data centers and electricity demand on rates.
- Recommendation: A dual approach combining affordability reforms with taxing the wealthy ("oligarchs") to fund these initiatives.
- Education and Training:
- Free community college to provide better entry into the 21st-century economy.
- Vocational education and trade schools are important, as some skilled manual jobs are less likely to be affected by AI.
- Place-Based Policies: Supporting employment in "left-behind" regions, though historically these have not had a great track record.
- "Show You Care" Approach: A genuine effort to demonstrate empathy and understanding for people's struggles.
Challenges and Optimism
Despite the identification of problems and potential solutions, the discussion acknowledges significant challenges and expresses cautious optimism.
Challenges:
- Deep-Seated Ideologies: Dealing with ideologies like Social Darwinism and neo-monarchism, which are held by powerful individuals, makes agreement and political operation difficult.
- Political Inertia: The difficulty of implementing effective policies, especially when local control exacerbates problems (e.g., blocking housing construction).
- "Learned Helplessness": A sense of resignation or inability to act, particularly noted in Europe.
- Complexity of Solutions: There is no single "magic bullet" solution; a combination of approaches is needed.
- The Nature of Populism: The term "populist" is often misused, and movements that claim to represent the people may not actually do so.
- The Role of Wealthy Elites: The influence of wealthy individuals and tech billionaires who may actively resist policies that challenge their interests.
Cautious Optimism:
- Failure of Reactionary Politics: The failure of the current reactionary right to deliver on its promises may create an opening for more rational reformism.
- Voter Pragmatism: Voters may prioritize policies that improve their lives and make the wealthy pay, regardless of ideological labels.
- Potential for a "New New Deal": The possibility of a political landscape that becomes more sane and focused on practical solutions.
- Strengths in Europe: Despite challenges, Europe possesses strengths that are not always fully appreciated.
Conclusion and Cultural Codas
The discussion concludes by emphasizing the deep societal shifts at play and the hope that working-class individuals will recognize the "fraud" offered by the right. The conversation then touches upon geopolitical rivalries (China vs. US) and the future of the EU.
- Geopolitical Outlook: A pessimistic view on the US's economic standing relative to China, suggesting a long period of playing catch-up.
- European Outlook: More optimistic about Europe's underlying strengths but acknowledges "learned helplessness."
- Cultural Codas:
- "Don't Give Up" by Peter Gabriel and Kate Bush: A song reflecting the struggles of job loss and the inability to break through in a society lacking opportunities.
- "Democracy is Coming to the USA" by Leonard Cohen: An aspirational song seen as appropriate for the current moment.
The overall sentiment is that while the challenges are immense and the path forward is difficult, there is a possibility for a more rational and effective approach to addressing the deep economic and social issues facing societies.
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