One sure thing in life is that someone, somewhere is plotting to profit
at your expense this very minute. Believe that.
The Trap: Selling Out
To Stay Afloat in Winner-Take-All America, the first book written by
Daniel Brook, a young author from Philadelphia via Yale and a New York
City childhood, looks at what happens when successful profiteers aren't
charged enough for the privilege of exploiting the American market:
college graduates accept their diploma carrying student loan debt and,
if they want to live in a major metropolitan area and afford to buy a
home and raise a family, their only career option is to "sell out" and
work for corporate America.
Tracing America's
current inequality and dwindling middle class to the conservative
intellectual movement established by William F. Buckley and Barry
Goldwater, a movement that was institutionalized by the Reagan presidency,
The Trap
argues that the conservative reliance on the market to
provide ultimate freedom to the individual has failed, and that options
in America for educated young people have become increasingly limited.
"The tide of conformity continues to rise as the talented are corralled
into a narrow swath of careers, forced to stifle their altruistic
impulses and retreat from public life," writes Brook in his
introduction. "We ignore the predicament faced by today's brightest
young people, the coal-mine canaries of Reaganomics, at our
peril."
illustration: ALICIA
FAIRCLOUGH
The Trap draws on a clear,
well-constructed political and economic analysis, and multiple
interviews with young Americans who've been "corralled," who are
struggling to maintain careers of their choosing at the expense of
their quality of life, and who are in the process of giving up what
they want to do for what they have to do. Startling facts propel
Brook's argument—teachers priced out of 99.7 percent of the housing
market in the San Francisco metropolitan area; New York City's wage
inequality on par with that of Namibia; top individual tax rates for
millionaires reduced, with little fight from Democrats, from 70 percent
to 28 percent during Reagan's first term; "Conservative foundations now
outspend liberal ones by a factor of more than ten to one";
"Corporations outspend labor in political donations more than fifteen
to one"; "In five of the last six years, the nation's median income has
actually dropped"; "Americans making $50,000 to $75,000 pay the same
percentage of their incomes in taxes as the four hundred highest-income
families in the country."
After reading
The Trap and
recognizing our family, friends and communities in Brook's portrait of
a once-prosperous middle class laid low by tax cuts and exemptions for
the wealthy—a failed system that has narrowed options and funneled
America's brightest young people into a corporate system that pumps
money upwards, COOL'EH had to get in touch with the author to discuss
how America used to be just 30 years ago, and how a return to
progressive taxation—increasing taxes for only the wealthiest
Americans—could provide health care, education, and childcare to all
Americans, and make it possible for college graduates to choose to
teach middle school, start a business, or work as a non-profit lawyer
without sacrificing dreams like starting a family, owning a home, or
affording to live within an hour's commute of where you
work.
Did the ideas that would eventually turn
into this book start to gestate while you were still in
college?It came together post-college,
but yeah, it started in college. When I was at Yale, for a semester I
did the teacher preparation program, I was gearing up to be a high
school teacher, and while I was doing that I was working on the student
magazine; I realized I liked journalism better than teaching, so I
ended up doing that—I ended up picking a different low-paying job. But
once I got out [of college] it became clear that if you become a
teacher you're in for a difficult financial existence if you do it in
any of the major metropolitan areas, so that's where it started. And
then watching friends, watching people I know sell out after school,
really drove the point home. Junior year I did this program sponsored
by a liberal think tank, liberal policy camp—it was more fun than it
sounds, they had kind of lax drinking age regulation so it was OK—and
we studied inequality from the perspective of, you know the facts, you
guys are going to have your fancy degrees, you don't have to worry
about this but you're all liberals, you're going to care about people
at the bottom. But when these people [who attended the camp] all became
corporate lawyers was when I was like, whoa, inequality is totally our
problem. We just didn't see it. So then the point of the book is
reconstructing how the country got to the point where it is now so
quickly from a very different point not so long
ago.
Right,
the system that's creating this inequality is relatively young. Even
though a lot of the ideas behind it didn't start with Reagan, it was
his administration—Reagan is the
electoral triumph of an intellectual and political movement that
started earlier, but yeah it's only with Reagan that all of their
policies begin to get implemented, and then Bush has at least been
trying to push them even further.
To what extent do
people our age need to be reminded how young this system
is?I think that's huge. In some ways I
hope the biggest service the book does is show people that it wasn't
always this way, it doesn't have to be this way. And it's amazing the
reactions I get when I just tell people facts. I mean, I don't mind if
I tell someone my opinion and they disagree, but I'll tell people facts
and they look at me like I dropped down from Mars. I'll tell someone,
you know under Ike—a Republican president—the top marginal tax rate was
91 percent, and they'll look at me like I'm making this shit up. Or
I'll say the public and private sectors used to pay their lawyers
equally, in 1970, and they'll look at me like I'm making it up. And I
just say no, that's a fact. If you want to disagree with my opinions go
right ahead, but you can't disagree with that fact...The way the intro
ends is with a sort of grudging admiration for the [Barry] Goldwater
Right, where they came up in this New Deal era, and they had
intellectual objections to it, and they weren't afraid to make them
even though it seemed like getting the boulder back up the hill would
be impossible, and because they weren't afraid to try they actually
succeeded.
How long were you working on
this?The book was contracted about two
years ago and a rough draft was turned in about a year ago, but I would
say I started reading on the subject about three years ago. Basically I
did a lot of reading three years ago, I did a lot of interviews and
writing two years ago, I did a lot of editing this past year. That's
how it came together.
Were there points where the scope of what you were trying to
do was overwhelming in the sense that, in order to effectively
criticize an entire system, there must be a huge amount one has to
consider?Let alone that, it was the
first time I'd ever written a book, so even if I were just writing a
biography of Brittney Spears I'd probably feel overwhelmed. But yes,
the idea of trying to criticize an entire system was at times
overwhelming; I just had the faith that, especially from reading the
conservative intellectuals like Milton Freidman and Friederich August
von Hayek, that it was a system, and it all fit together, and that I
really could pull it all together because it was coherent, that
inequality is one side of the coin and that rising housing prices and
college tuition and no health insurance is the other side of that coin,
and that it's all coherent if I can just pull it together right.
Hopefully some people think I did.
If you had to identify the audience for
the book, who would it be?If anyone
wants to read the book I would be happy. In the intro, I call our
generation the coal mine canaries of Reaganomics, we're the people who
solely grew up in this system, and we're not grandfathered in. I feel
like my parents we're grandfathered in—my mom's now retired, my father
is not—they were these public service professionals, and they could
make a life in the New York area that is no longer viable. But they
bought their house in 1977, they were grandfathered in, so what does it
matter to them? So that's why I'm writing about young people, and I
think because I'm writing about young people it will appeal to young
people, but when people think it's a book about young people it's
frustrating. I have a friend who's a neuroscientist and his experiments
are on fish, and people say, 'Oh I have a problem with my fish, can you
tell me about pet food.' And he's like 'No, no, no, I study
neuroscience, I just look at fish because that's what I do my
experiments on.' So I feel like I'm writing about politics and
economics, not about young people. I'm using young people because their
experience can tell us a lot about the political and economic changes
that were put in place by Reagan.
Right, and it occurs to me that the
ascendency of this conservative ideal of the free market equaling
freedom hasn't been perceived as a failure because the generation
basically responsible for it, on whose watch it rose, were able to
raise their children and buy houses before the inequality reached this
fever pitch that it's currently at. And in a lot of cases they've quite
happily seen an enormous return on their real estate
investments.I agree with that. I
remember my grandfather, who has passed away, who the book was dedicated
to, I remember, I don't know if it was Reagan or if it was Bush the
first, but some kind of economic plan they put forward he said, 'It's
murder on the middle class they just don't know it yet.' I think he was
right, it's even beyond that, it's suicide of the middle class they
just don't know it yet. And the idea that, look at Reagan as the
governor of California—which in some ways is like the mini social
experiment that was then applied nationally when he became
president—the idea that high taxes were eroding what was called the
"California Dream", which was the sunny American dream where you could
have your own house, if your kids were sharp they could go to UCLA or
Berkeley for free, the idea that taxes were eroding that, at this point
seems nuts when you look at—when you cut the taxes and cut the
benefits—what its like in California these days, it's clear that the
taxes were not the problem.
So then how important do you think it is
that we convince our parents' generation, and even older Americans, who
happen to have control of a lot of the halls of government, that the
current system isn't working? Do we need to convince them, or do we
need to just say 'You guys are getting old, it's going to be our
country soon,' and rely on that
fact.The people I worry about
convincing are not my parents. I mean a lot of us are the children of
the '60s generation, these people remain liberal, and a lot of people
who vote for this stuff are evangelicals in Kansas, so I'm not entirely
sure who we need to convince as much as just to problematize the whole
system and look at it more broadly, rather than nitpick at certain
issues, look at it more comprehensively. But again, the idea that—part
of what turned me on to the ideas in the book is that the system is
administered by people who don't even believe in it. So the people who
are—in the book I have a liberal lawyer who ends up working at a firm
that defends Unocal's use of slaves in Burma. If they needed to find
people who believed in slavery to defend them there'd be a lot less
slavery in the world.
I agree with you, but the other thing that occurred to me
when reading your chapter that deals with lawyers and the legal
system—you point out the irony of a group of lawyers who work at a
major firm contributing money to the Kerry campaign while they protect
Bush's corporate cronies on the other
hand—Okay, then I understand what
you're saying, it's important to blow up the psychologically sustaining
sweet little lies people tell themselves. It's important for people who
work as Wall Street lawyers and then make charitable donations
including to John Kerry, to realize they're doing more harm than good
and just be honest about that. But again, think of it systematically, a
lot of those people eventually get addicted to the money, that's its
own thing, and that's farther out than I was writing, but initially a
lot of those people really are in debt, and what they want, I would
argue, is not luxurious. My grandparents, they were both school
teachers, and they lived in Brooklyn in a truly suburban kind of
neighborhood, their house now sells for a million dollars. You can't be
a school teacher and buy that house. So if you're a corporate lawyer
and you want a million-dollar house, that's basically a school
teacher's house; I can't really fault you, it's not like you're living
a life of luxury.
But you point out in your introduction how corporate America
is full of these secret dissenters, you talk in various instances about
how well-funded the conservative movement is in terms of its think
tanks, public relations arms and its lobbying abilities; doesn't it
stand to reason that the money for closing that gap in funding can come
from people who've had to sell out just to survive but maybe still
harbor these liberal ideals?Yeah, I
mean I certainly wouldn't begrudge anyone making a donation to a
liberal think tank that's funded by their corporate law job, I think
that's a good place to start, but I do want to use the book to call
into question the larger issues, to call into question, why do you have
to do X, Y and Z just to have what used to be a middle class life? And
obviously if the Center for American Progress can get to work on that
with their donation, yeah I have no objections to that. Do you feel
like I come down too hard on the people like the corporate lawyers who
are giving money to Kerry?
No, not at all, but I think you're
absolutely right in pointing out how large the discrepancy in funding
is, and we know in our sound-bite culture how important not only the
message but the money that gets it out there is, so at some point it
seems to me that the people from our generation that are managing to
make a lot of money, even though they may have sold out initially just
to survive, at some point can become an
asset.Yeah, you know, I'm happy that
George Soros gives his money to liberal causes rather than conservative
ones, certainly, yeah absolutely. But the ultimate goal is to have a
society where people like George Soros pay taxes and it funds education
and health care.
Your formula for providing greater security and therefore
freedom to Americans in the form of health care, childcare and
education is to return to this more progressive system of taxation that
built the middle class in the first place, but you didn't mention
reallocation of the tax dollars that we already have. Is there a
reason, or is that just outside the scope of what you were doing
here?I
think it's a little beyond the scope. Of course I was opposed to the
Iraq War from the start, I think that's flushing money down the drain,
I'm totally on board with that and I'm aware of the insidious influence
of corporate pact donations and earmarks and all that, yes, but if we
didn't elect George Bush we wouldn't have a war in Iraq. I mean I feel
like the allocation of the resources, to some extent we really do have
some collective control through voting over, not to say that the
military industrial complex isn't gonna lobby to keep buying bombers we
don't need, of course that's the case, but I think the service I'm
trying to provide is to say its about A, throwing out the
conservatives, but B, about getting the left side of the political
spectrum to have better proposals that really address people's needs
and can rebuild the middle class, and in doing so restore the promise
of the country that we have an inalienable right to the pursuit of
happiness.
What do you think are the biggest
challenges facing progressive
taxation?Well one the problems is what
you raised, is that people, even people who are sympathetic to
progressive taxation, don't want to pay more taxes if it's just going
to get sent to Iraq. In the book I do argue that in some ways
progressive taxation is helpful because the inequality is distorting
these certain markets, and if we just had more equality we'd be better
off in that way, but I also think you have to tell people what we're
going to do with their tax money. You can't just say we're going to
take it away.
Right, and you give that example that people in Great
Britain, because they know where their tax money is going, they know
about universal healthcare and all the different social programs, they
feel that taxes should be higher.Yeah,
somebody should just make the argument that—you know I'm self-employed,
I'm a freelance writer and I'm lucky I don't have any serious medical
conditions that would preclude me from getting medical insurance, I pay
every month, a fixed fee (although it went up 25 percent this year),
but you know I pay a monthly fee to Aetna to get my insurance, to me it
would be a much better system to say if I have a good year in my
self-employment, my business, I pay more taxes, and if I have a bad
year I pay less, and either way I have my health insurance, as opposed
to charging me a flat fee that doesn't reflect how well or poorly my
business is doing that year. And I don't know why, we just need a
democrat to say that, why will no one say that? Well, hopefully someone
will read the book and say it.
But that's the thing,
once a democrat does say it, do you think it's political suicide at
this point?Not with healthcare, no. I
don't think with healthcare. I mean, my ideas with endorsing the
British Higher Education voucher system, that's more to get that idea
out there, to problematize the whole idea of paying tuition for
college, because it should be problematized since we're the only
country that does it. But a lot of Americans don't even know that we're
the only country that has college tuition, or at least more than token
college tuition. Canada, Britain and Australia have very modest
tuition. That's something I just want to throw out there. So in the
same way I have a grudging respect for [William F.] Buckley and [Barry]
Goldwater, who were willing to throw out these sort of unfashionable
ideas, I think that's where it starts, you know, saying we think the
way things are going is wrong, and that needs to change. The way the
Democrats in the primaries are talking about higher education financing
makes me want to smack myself. It's a perfectly good policy, but Obama
wants to get the private sector out of making the loans because it's a
scam, which is fine, that's a good policy, and you know Clinton wants
to increase the value of a Pell Grant, which is fine too, but these
things don't effect the real problem which is that tuition has gotten
totally out of control.
At various points in the book the word entrenched is used.
It's going to be difficult to match the PR and lobbying power of the
system currently in place, it's just a fact, but also there are
inherent truths in the ideas that you're presenting, and they will
resonate with a lot of people were they to sit down and consider them.
But at the same time would changing the current system, would going to
a more progressive tax system—in terms of the toll that it would take
in the short term, short-term job loss or even a downturn in the
economy—as in-debt and struggling as the middle class is right now, do
they have just enough to lose at this point that upsetting the status
quo is viewed as too risky?No, I don't
go to the level of policy-wonk detail of saying these should be the
income tax brackets, but we need to raise taxes on the people who are
upper middle class to very wealthy, not people who are middle class.
And the idea of a threat to the economy, I feel, is in some ways a red
herring. You know, we like to say we have a 4 percent growth rate and
France has a 1 percent growth rate, but most Americans actually live in
France, in that most Americans wages are flat or going up one percent,
so the idea that, 'Oh we'll wreck the economy' is such a red herring
because we've already created an economy that works for such a tiny
percentage of people. It's a matter of taking the economic dynamism
that seems to only be going to the top and using that engine to make
life better for everybody.
Do you feel like there
are economists out there that will support that idea long
term?Yeah there are. Did you see
The
Nation, there was an article either this week or last week about the
American Economic Association, this conference, and the reporter, he
was arguing there is a growing dissatisfaction with the growing
libertarian, neo-classical economics within the profession. There are
certainly economists who are on-board with progressive taxation, and
there are plenty of economists on-board with universal healthcare. I'm
hoping Paul Krugman has a chance to look at my book, I'd love to see
what he says. Robert Frank, who's a professor at Cornell, he blurbed
the book sight unseen, I don't know the guy, he wrote
The Winner-Take-All Society from which I borrow, with a tip of the hat, the subtitle,
and he said it's a terrific book, he signed off on it. So yeah, I don't
have any illusions of winning over people like Barry Becker, who's sort
of the acolyte of Milton Freidman who's still alive and kicking at the
University of Chicago, but because these ideas are grounded in the best
practices of other developed countries I don't think any of what I'm
proposing is all that outlandish.
How are you feeling
about the reception for the book in terms of
publicity?At this point I feel like
it's too soon to tell. I'd like to say I'm very cautiously optimistic.
I think it's very hard to be a first-time author and get your book
noticed, and I know I'm up against that, I can see that. But I also
think that the book speaks to an issue that's—it's about the elephant
in the room, the book is about the issue that is staring down
ambitious, bright young people coast to coast in the major metropolitan
areas, and it's something that, because we're young people, is off the
country's radar screen.
Click
here to read the introduction to The
Trap.