The Economy We Deserve

When a system reaches the point of breakdown, it’s time for radical change. That was the lesson of the 1930s, when the Great Depression ignited transformative labor and social movements that reset national priorities.  It was also the negative lesson of the 1980s, when elites responded to stagflation with a neoliberal turn to “free markets” and enhanced corporate power. The resulting intensification of income and wealth inequality has enabled state capture by a white supremacist authoritarian movement in alliance with tech and fossil fuel interests.

The antidote is increasingly clear: recognizing the equal dignity of every human being and working to guarantee their right to economic security, the opportunity to thrive, a livable planet, a world free of racism, and democratic governance of our lives, societies, and economies. Large majorities of the public understand that the current system is failing most of us and threatening democracy itself. They’re ready to begin building an economy that we deserve.

Social change, and especially major economic transformation, requires a compelling positive vision of the possible. The Game Changers project was formed to provide that vision. Rooted in new economic thinking and research to address the multiple dysfunctions of the current system, it offers far-reaching ideas that go beyond the failed policies of the past, both neoliberal and liberal, and the corrupt authoritarian practices of the present.

It’s time to “right the rules” to create an economy that meets individuals’ basic needs for food, shelter, care, education, health, and free time. We envision that happening in multiple ways: local public provisioning for health, child and long-term care; federal income supports; access to work with good wages and reasonable hours; raising wages at the bottom and the middle to address longstanding racial and other inequalities; and sensible and compassionate immigration policies. We lay out plans for new public infrastructures such as high-quality mixed-income public housing with renewable energy systems and a low-cost, efficient public payments system. We need to detoxify the natural environment, restore ecosystems, and stabilize the climate system.

Investments in individuals, communities, nations and the planet are key to prosperity. But we need more than that. Changing the game implies that the game is rigged. We offer policies that help working people build power, through collective organizations, in the workplace and the state. These organizing strategies address racial and other divisions that weaken communities. They’ll help redress the asymmetries of influence that plague this moment.

A new game also requires fundamental transformation of large-scale economic structures, such as the financial architecture, the international trading system, and the functioning of the macroeconomy. Our policies do that through breaking up concentrated power, penalizing rent-seeking, stabilizing the financial system, and forcing corporations to pay their fair share of taxes. These measures help fund the investments in people and planet that are required for a decent economy.

One throughline among the wide range of proposals we have developed is that they are based on strong economic research and reasoning, but they reject the economic story that has dominated policymaking. Conventional economic thinking has been shown to be misguided in area after area. Minimum wages don’t cause unemployment; rent control doesn’t reduce housing supply; and equality and efficiency are not opposed. Climate action is cheaper than inaction, worktime reduction and higher productivity go together, and investments in social goods can pay for themselves.

The economic logic of our approach is based on game theory, as well as common sense. Zero-sum, competitive games like the one the economy has been stuck in yield much worse outcomes than cooperative games. When we join together in communities, labor unions, civic associations, and business enterprises, outcomes are far better. This recognition is the basis of a powerful new economic paradigm: invest in each other, secure the future, and realize the promise of multi-racial democracy throughout society. It’s time to change the game.

Anatomy of the Crisis

The roots of our current predicament can be situated in the early 1970s, when the economic damage wrought by an earlier wrong-headed foreign adventure – the Vietnam War – coincided with an increase in oil prices resulting from conflict in the Middle East.  The resulting economic crisis of inflation and recession brought to a head longstanding political, social and economic struggles. Workers mobilized and built power through militant trade union activities; African Americans gained voice and political influence via the Civil Rights movement; the women’s movement demanded equal treatment. These developments coincided with declining competitiveness of U.S. business and a profit squeeze.  Panic arose within the American business class as they feared they were losing control.

An additional factor was increased environmental awareness. The first Earth Day in 1970 attracted 20 million, the largest protest action in U.S. history. Existential panic was especially present in the fossil fuel industries of oil, gas and coal. Fossil fuel interests, including Exxon and the Kochs, fought back, investing millions to capture politicians and state institutions. They joined with other business interests to support representatives of both parties who would break unions and negotiate trade agreements that undermined the power of U.S. workers. They de-regulated banks and other financial institutions to allow them to grow bigger, more profitable and, as we were to discover in 2007 and 2008, more dangerous to our economy and livelihoods.

In wave after wave, the state cut taxes for the rich and reduced government resources for investing in and supporting people and communities. The capture of politics and politicians by big capital directed even more money to the military industrial complex. The economic vision associated with neoliberalism was summed up most up memorably by Ronald Reagan in his First Inaugural Address: “Government is not the solution to our problem; government is the problem.”

By the 2000s, this neoliberal approach had been adopted by a significant portion of the economics profession, and “laissez-faire” became the baseline and even touchstone for economic policy. But in reality, the push for laissez-fare was a cover for state policy that boosted the rich at the expense of everyone else. This helps to explain how policy could evolve in just a few decades from the neoliberalism of Reagan to the authoritarian corruption of the Trump administration and its allies.

State capture has ensured that neither the economy nor the government works for most Americans. Naturally, and perhaps by design, this has led to general mistrust and even disdain by many Americans for the federal government, though there is less skepticism of state and local government. As a result, the potential for the public sector to act as a countervailing force against the power of big business is further undermined by angry and discouraged voters.

This top-heavy economic and political system is populated by corporations too often driven by short-term profit-seeking rather than long-term investments, and by a government that invests too little in people and communities and too much in fossil fuel interests and the military-industrial complex. The average worker’s standard of living has stagnated for decades despite large increases in productivity.  Affordability may be a buzzword. It is also a pressing day-to-day issue for most American families.

The rise of billionaires and even one trillionaire, along with the enormous power of tech and fossil fuel capitalists in the Trump Administration, is in some ways the natural extension of this decades-long pattern. But we are also experiencing unprecedented perversions and pathologies, as reflected in the vast corruption exhibited by the Trump family and friends and the hyper-inequality of society, with a handful of billionaires striding over millions of Americans barely able to make ends meet. And now fossil fuel interests are redacting “climate change” from government’s – and possibly even society’s – to-do list.

It is long past time to break this destructive cycle and usher in a new economic structure, and a new paradigm to support it.

Changing the Game

The Game Changers are examples of bold yet realistic policies that break cleanly from the corruption of the Trump years and the free-market fundamentalist era that preceded them. The policies address how both markets and government work, based on the premise that the role of government is not merely to clean up after the messes when markets fail, but to ensure that markets work consistently on behalf of working people rather than being rigged against them.

Game Changer policies span a broad canvas of economic issues – health care, housing, immigration, care work, labor, the environment, trade, and finance. All the proposals share the goal of helping to build a positive-sum economy that works for all, rather than a zero-sum economy where the greed of the one percent trumps the well-being of the ninety-nine percent. They are based on a simple set of propositions.

1. Changing the game means investing in each other.

Childcare, health care, and a clean and safe environment are not commodities to be sold to those with the most purchasing power, nor are they privileges to be granted to those with the most political power. These are universal rights that should be shared by all.

Investing in each other means strengthening personal connections by making sure that working people have time and energy to invest in their families and communities. It means uniting with those by our side who are striving for a better life. It means spurning attempts to pit us against each other – white against non-white, native-born against recent immigrant, worker against worker – to divert attention from the abuses perpetrated by those on top.

In short, investing in each other means building an economy in which everyone is free to survive, strive, and thrive. 

2. Changing the game means securing our future.

Economic security should not be a privilege for the few. A secure economy must be resilient enough to safeguard present as well as future generations from workplace abuses, environmental destruction, and supply-chain fragility.

Securing our future means recognizing that there are things that all should be able to afford, like housing, education and care.  It means recognizing that there are things we cannot afford, like the poisoning of our air and water and lavish tax breaks and handouts for the rich. And it means building an economy in which the lives of working people are not subjected to catastrophic disruptions that result from concentrated wealth and power in the hands of people who do not care.

Securing our future also means forging solidarity with others across the world with whom we share not only the same planet, but also the same struggle against transnational elites who seek to divide nations and peoples to pursue ever more wealth and power for themselves. 

3. Changing the game means righting the rules.

Today the rules for how markets and governments work are rigged in favor of the wealthy and powerful. Something is deeply wrong with an economy where people who play by the rules must struggle to get by, while the wealthy flaunt their power with impunity.

Righting the rules means ending reckless and predatory financial practices that siphon wealth from working families into the hands of speculators and banksters. It means reorienting housing markets to provide affordable homes for all rather than to maximize profits for real-estate barons. And it means ending the tragic squandering of lives and wealth to shore up a military-industrial complex that offers empty promises of national security even as it undermines the security of families and communities by engaging in immoral and unnecessary wars.

Righting the rules means an end to game-rigging by ruling elites and instead crafting rules that first and foremost protect the well-being of working people.

The call for changing the rules highlights a key aspect of our approach. Many of the Game Changer policies involve redesigning how the market works rather than calling for major new public spending. They transform market outcomes, thereby reducing the need for post-market redistributions to achieve more fairness. And in calling for more public spending in some areas, we also propose new revenue sources and fiscal priorities to improve the functioning of the economy, as detailed in the forthcoming Game Changer on funding the future.

Getting from Here to There  

To animate the changes we are proposing, we need to restore people’s faith that change is possible. We’ve noted the existence of pervasive cynicism and disillusionment with government. In an age of state capture, when government has so frequently failed workers, communities of color, rural families, and distressed geographies, these feelings are warranted. Part of the difficulty of defending democracy against the current authoritarian threats is that the system has empowered elites while disempowering and discouraging working people.

As we’ve argued, changing the game requires far-reaching policies that offer improvements and are based on strong economic analysis. That’s a given. Overcoming cynicism and disillusionment requires something else as well: people’s actual lived experience fighting for and winning change. By being part of a truly democratic movement, and achieving victories, it’s possible to rebuild trust in government, businesses, and each other.

A transformative agenda won’t be enacted in one stroke. It may start with smaller victories and incremental steps. Each successful campaign engages people who can then be part of the next, bigger effort. Or perhaps we notch an early win with a big, bold Game Changer. That can be followed by smaller steps to make sure it’s implemented fairly and successfully. Social and economic restructuring will come in the form of changes, big and small. And with each positive step, trust in government – and each other –  increases.

We are optimistic about the possibilities for deep transformation. Our reasoning is based on the episodes we began with – the paradigm-shifting moments in which new economic models arise and stick. While such shifts can be connected to intellectual trends, they are often more rooted in social conditions and political coalitions: New Deal thinking and labor mobilization in the context of the Great Depression, or neoliberal economics and business opportunism in the context of the stagflation of the 1970s and early 1980s.

In this moment of crisis, we need both new perspectives and new coalitions. We must reject the false tensions between collective strategies and individual dreams, between worker welfare and business health, between climate caution and economic prosperity. We must build a broad movement that includes workers, communities of color, small businesses, professionals concerned about AI, community leaders sickened by division, and anyone and everyone who knows that democracy cannot stand when oligarchy thrives.

The traditional American motto, “out of many, one” is often used to refer to the power of our diversity. Forging a broad and unified force for a better future will be key for the many – movement builders, unionists, community organizers, civic leaders, and all who stand with them – to triumph against the one percent. A transformative policy package, like the Game Changers, is one part of the coalition-building needed for the future we deserve.