Bringing Political Innovation to Market

Photograph of a Polaroid Land Camera 1000 by Chris Lüders (shared via Wikimedia Commons)

Can corporate models teach us anything about political change?  One of the problems politically active Americans face today is that the Republican and Democratic parties are organized around outmoded ideas (a topic I’ve written a lot about already).  Yet what do we know about how to bring new political ideas to market?  How do we introduce better ways and ideas to a political marketplace that, for over a century, has been dominated by just two parties?

The Instagram/Polaroid analogy

I’ve been thinking about this ever since reading a smart article by Nick Bilton about Instagram, the digital photo-sharing start-up that Facebook paid $1 billion to acquire.  The hallmark of an Instagram is its resemblance to an old-fashioned Polaroid.

What interested Bilton was why a start-up had brought this idea to market, rather than an old-line camera company like Kodak or Polaroid.  These were, after all, the towering pioneers of innovative film processing.  Polaroid, in particular, had made its name developing a camera and film process that allowed people to make and share their photographs instantly.  For decades, Kodak and Polaroid were cash cows, dominating the markets that sprang up around their own innovative technologies.

Yet, amid the onslaught of digital technology, neither proved able to change enough.  Though the market for their products had been dwindling for decades, neither company managed to make the transition to digital.  Today, both companies are teetering on the brink of death, while Instagram has grown rich and famous on the strength of images with a “Polaroid feel.”

“Disruptive technologies”

Bilton concluded that the success breeds constraints that make established companies hesitant to embrace the next new idea.  Companies become wedded to the ideas that brought them to the top.  They develop cultures aimed at perpetuating the gains that have already been made.  Having once brought a new idea to market, the resulting business rightly views the next new idea or technology as disruptive.

A company dependent on profits from an existing technology will have trouble compromising that in order to capitalize on the next new thing.  As one of Bilton’s sources observes, “It’s tough to change the fan belt when the engine is running.”  (And didn’t Bill Gates once admit to being terrified of the next unknown, tinkering with a new idea in his garage?)

The analogy applies to the political scene

This is exactly how I think about the political scene, whose very landscape the Democratic and Republican parties have shaped.  These two parties became dominant because, at crucial points in our history, they supplied ideas and platforms that were right for the time.  The visions and forms of action they proposed were ones around which millions of citizens could organize.

Support for the major parties is dwindling because they rely on outmoded ideas.  They sell products many of us have no interest in buying.  An estimated 30 percent of voters are not aligned with either party, making each “major” party a minority.

Yet, structurally, the parties deter competition.  Though ideologically moribund, the Republican and Democratic parties are vigorous institutions.  They are known entities.  They have millions of adherents, and familiar brand names.  They’re well capitalized.  And they sit atop vast hierarchies of state and local organizations that penetrate into every ward and district of the country.  Every political event in the US is understood and described in terms of these two entities, a sure sign of their authority.

These behemoths are more interested in maintaining market share than in changing their offerings.  Too much newness carries risk, just as it did for Kodak and Polaroid.  There may be a broad constituency out there, clamoring for new political leadership, but the major parties will view as a disruption any force hoping to reinvigorate politics by espousing a new ideology.

The calcified rhetoric of our politicians and their parties is strangely at odds with the political ferment of the time.  All around lies evidence of amazing levels of political activism and concern, whether on the left or the right, whether in populist movements like Occupy or the Tea Party, or in the billions of comments, tweets, and posts that Americans generate in political conversation every day.

Unlike in business, how ideas move from the bottom to the top of the political hierarchy is incredibly murky.  Yet anyone who wants to get this country into better political shape needs to take an interest in the how of political change.

Image: A Polaroid Land Camera 1000,
courtesy of the photographer, Chris Lüders, from this source.

What We Know About American Third Parties

We’ve had many third-party movements over the last century, but none has achieved national dominance; few have proved lasting.  In fact, third-party candidates do not win elections.  As Peter Kiernan observes in his book, Becoming China’s Bitch (poorly written but interesting), whenever third-party candidates or their ideas begin to gain traction, the major parties co-opt them.  Individuals who run as third-party candidates without having a true national party organization behind them are doomed to be remembered as irritating spoilers.  The so-called independent candidate—whether wealthy or quixotic—is wasting our time.

Creating a lasting third party in the US could be accomplished, but it would take at least a decade.  The new party would have to be ideologically distinct from the existing parties—perhaps even inimical to them—, yet moderate enough in its outlook to gain traction in the mainstream.  In addition, the viability of such a party would have to be proved at the state level first.  A new party solidly established in several of the largest, wealthiest, and most diverse states—say Florida, New York, Texas, and California—might have a hope of success nationally.

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How the Fed Makes Us Lazy—and What We Can Do

http://upload.wikimedia.org/wikipedia/commons/thumb/3/3f/Ben_Bernanke_official_portrait.jpg/512px-Ben_Bernanke_official_portrait.jpg
This is not a post about hating the Fed and how we should get rid of it.  This is a post about the rest of us and how convenient it is to have the Fed to complain of.

I was tempted to title this post, “The rabble are out to crucify Ben—there’s even a Judas” (now that Paul Krugman, the Fed chief’s former Princeton colleague, has taken to assailing Benanke’s performance in print).  But that would have been just one more example of the phenomenon I’m out to criticize: finger-pointing.

It would be tough to judge a finger-pointing contest these days.  As the economy flails in the long wake of the financial crisis, everyone in every party seems to be training to become a finger-pointing champion.  What interests me about the attacks on the Fed, however, is that even anti-government types now seem caught up in thinking that tinkering with the government is the key to solving problems that—let’s face it—the American private sector created.

The federal government is powerful, but more powerful still are the aggregated interests that pump out more than $15 trillion worth of goods and services a year.  That was our GDP in 2011, a CIA Factbook figure.  If you hold a job, work in a profession, run a multinational, or own a small business, you are part of that great engine.  Simply put: we are the economy.  The mess is ours.

Perhaps this is why we feel such scorn for Ben Bernanke, a man so sincere and conscientious it’s irritating.  Love him or hate him, it’s hard to claim he isn’t doing his utmost to fulfill the Federal Reserve’s dual mandate, which is to stabilize prices AND move the country toward full employment.

That’s right: one soul at the helm of the Federal Reserve, believes that, by controlling the amount of money in circulation, he can sufficiently influence the sort of corporate decision-making needed to end joblessness.  He hopes that, by tweaking our monetary policy, he can prompt our American brothers to give another American brother a job, until every brother and sister in our economy is once again working.

This is why, in Mr Bernanke’s increasingly frequent public appearances and statements, he can be heard fretting about, say, whether long-term unemployment could lead to a permanent loss of human capital in the economy.  He truly believes that getting all of America back to work is his responsibility.

He may be the only American who feels that, unfortunately.  This is why hating the Fed is so misguided and self-deceiving.  Hating the Fed is a cop-out, a lazy habit that absolves the rest of us from looking around us and asking who else might bear some responsibility.  Our national preoccupation with monetary policy is a convenient dodge, diverting us from the fact that we ourselves could do something.

We are the economy.  Regardless of the shortcomings of the Fed and Mr Bernanke, we owe it to the jobless to recognize their lot as a social, civic, and humanitarian problem, one that’s in our power as a society to remedy.

Should we destroy the one thing that’s working?
Obviously not.  The Fed would matter a lot less if we could manage to get some other things working as well as it does.  If we didn’t have institutions like the Fed, it would be up to Americans in their respective states and communities to figure out how to alleviate joblessness and destitution and restore prosperity.

This was our lot earlier in our history, when Americans operated with a mere fraction of what now passes for economic understanding.  In those times, punishing downturns such as those occurring in 1837, 1873, and 1893, led not only to protracted suffering but also to constructive cultural and social ferment, an outpouring of philanthropic zeal, and more than a little genuine soul-searching.

The Panic of 1837, for instance, prompted the formation of some of our earliest urban relief organizations, while the banking crisis of 1856 gave way to a religious reawakening in 1857 known as “the Businessmen’s Revival.”  Chief among the converts were Manhattanites who concluded their own godlessness and greed were to blame for the economic adversity they were suffering.  Such heartfelt contrition and public avowal of responsibility, even in secular form, have been all but missing from our present-day financial crisis.

We can’t hope to lessen joblessness if we don’t recognize our obligations to one another.  We can’t hope for national prosperity when so many of our fellow Americans are jobless and poor.  The common-sense idea that we must care for one another, even if only for selfish reasons, is crucial if we are to re-energize our economy.  It might not be an idea Ben Bernanke can teach us, but it sure is one that we can use.

Want help  •  Foreswear laissez-faire  •  Use all the tools
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RELATED:
Susan Barsy, Fiscal Policy is not Economic Policy, Our Polity.
Dean Baker and Kevin Hassett, The Human Disaster of Unemployment, New York Times.
Rick Newman, To Fix the Federal Reserve, Fix Congress First, US News.
George F. Will, The Trap of the Federal Reserve’s Dual Mandate, Washington Post.
Ken McLean, The Fed’s Dual Mandate Dates to a 1946 Act, Washington Post.

Image: Official portrait of Federal Reserve chair Ben Bernanke, from this source.

May Day Meditations

Chicago's May Day Parade along Jackson Boulevard (Credit: Susan Barsy)
I WAS RUSHING out of my office building the other day when I ran smack dab into a May Day parade.  It took me a minute to realize it wasn’t just another Occupy rally.  No, the date was the first of May, when, by tradition, workers around the world take to the streets en masse, their parades a vivid display of emotion and identity.

Chicago police watching the 2012 May Day parade (Credit: Susan Barsy)It was striking was how un-specific this demonstration was.  It didn’t have much to do with labor in particular or something specific workers might actually need.  It seemed to have more to do with how unfair life is—a general proposition we might all assent to.

Bystanders watching the Chicago May Day parade at Dearborn & Jackson (Credit: Susan Barsy)Seeing the marchers made me think about how much the nature of work and the status of workers in the US has changed over the decades, since May Day observances first began.  International Workers Day, as it is officially called, was instituted to mark the anniversary of the Haymarket disturbances in Chicago when, in 1886, violence erupted as police sought to dispel a crowd that had gathered to protest police brutality toward workers demonstrating for the eight-hour day.  Eight policemen were killed, an unknown number of protesters were killed and injured, and 4 probably innocent demonstrators were later hanged in what was one of the most infamous incidents in labor history.

May Day protesters in front of the Dearborn Street Post Office, Chicago (Credit: Susan Barsy)The heroic struggles of those earlier generations of workers were quite remarkable.  Their disciplined efforts brought about many important gains: the abolition of child labor, the minimum wage, safety inspections, the 40-hour week.  Without the labor movement, most of us would not have anything like the standard of living we enjoy today.  One has only to dip into Freidrich Engels’ The Condition of the Working Classes in England or Rebecca Harding Davis’s Life in the Iron Mills or Jacob Riis’s How the Other Half Lives to recall why their struggles were necessary.

Bits of that story are told in photographs such as these, preserved at the Library of Congress.

Children wearing sashes in Hebrew and English bearing the words "Abolish Child Slavery"These girls were photographed on May Day in New York City in 1909.  Their sashes bear the words “Abolish Child Slavery” in English and Yiddish.

African American protester in 1909 wearing a hat card with the words "Bread of Revolution"This protester was a member of the I.W.W. (International Workers of the World), also known as “the Wobblies.”  Wobblies believed in the international brotherhood of labor and dreamed of improving conditions of workers the world over.  A labor movement like that today would still have much to do.  Looking at this photo makes me think of some of the labor movement’s missed opportunities.

Photograph of female garment workers in NYC parade, 1919 (Courteay Library of Congress)
In good times and bad, May Day has inspired expressions of worker pride, as displayed in this wonderful photograph of female garment workers in 1919.  You would never guess from looking at these ladies how very punishing their occupation was.

Maybe that is one of the differences between that era and today: whereas, then, many workers suffered from conditions that were local and immediate, the costs global capitalism inflicts on American workers are more abstract and harder to see.

There was a great deal to ponder in even a fleeting glimpse of a modern May Day parade.

Additional information regarding Library of Congress images:
here and here and here

Democrats: Shake It Up

CAN THE DEMOCRATIC PARTY change from within?  Probably not, because most very active Democrats see no need to.  The party has its entrenched blocs of support, just as the Republican Party does.  The Democratic Party’s need to retain its base, which it counts on to win in national elections, enforces its own tendency to be conservative.  Sadly, the party is unlikely to give up or disregard interests already in its column, even if doing so would bring it a base of support that’s broader, stronger, and more fervent.

It’s an unfortunate situation for several reasons.  1.) The Democratic Party is at risk of losing control of the Senate to an observably weaker party that’s on the verge of disintegrating.  Yet rather than boost its popularity by advancing a constellation of smart new ideas, the Democratic Party is coasting along defensively, its identity defined by its historical positions and the reactive posture it habitually assumes vis-à-vis the Republican Party.  What the Republicans attack, the Democrats defend.

2.) The Democrats’ patchy ideological vision leaves the country vulnerable to a rightward lurch: the staleness that might seem a parochial problem is a problem for the country, too.  The party’s failure to take up feasible positions on matters like fiscal reform or entitlements, for instance, leaves us with a defeated, going-nowhere feeling.  (Did you know that many Democrats, including my own representative Jan Schakowsky, voted against the bill to increase the debt ceiling?  Their numbers equaled the number of Republicans who voted no.)  Democrats’ inability to change with the times is creating an ideological vacuum that other ideas—other candidates—other factions are filling.

3.) In the meantime, large blocs of disaffected or simply bored voters have been left without partisan representation.  Such voters now comprise a plurality of the electorate, as the percentage of Americans affiliated with either party has continued to decline.  If the Democrats wish to remain relevant, they as a group must fashion an ideology that appeals to a greater number of these voters, and that’s compelling enough to induce them to identify with the party.

It’s not enough for a few leading Democrats (e.g., the President) to espouse new ideas.  The Democrats collectively must shift to new ground.  It’s not enough for a few Democrats reach out to young voters, or to green voters, say, because, in themselves, such gestures have no efficacy.  Without the power of a whole party behind them, the proposals of a few men or women mean nothing.

Until the Party modifies its identity, its would-be adherents will know the party is not really about them.  They won’t be able to rely on it as a vehicle of their values and concerns.  This is why enthusiasm for voting and the parties is waning.  This is why so many Americans are dissatisfied with the work their political leaders are doing.  The parties do not faithfully mirror modern Americans and their world; the mirrors they hold up are cloudy with the treacly cliches of decades.  They’re distorted with age.

Democrats must give up their comfortable mantras and embrace efficiency.  They must become champions of small, smart government, because this is the only kind that we can sustain.  There’s no reason why Democrats can’t continue to champion a constructive federalism (that’s only sensible), but they must work to rid government of its bloated, statist qualities.  Democrats must work toward a sort of state that maximizes individual freedom, which paradoxically might include becoming more protective of our economy, our skills & labor, and our resources and environment.

Democrats should identify themselves with the project of restoring civic integrity to the country, whether through increased emphasis on civics education in schools, through clearer paths to citizenship, or through the embrace of a party-wide pledge to renounce things like super-PAC money.  Democrats should acknowledge that entitlements must be reformed and take the lead in proposing changes that are practical and humane.

There are glimmers of hope within the Democratic Party.  I find it hopeful that the president and the Clintons are working together more closely.  Though none are ideologues, each has personified a pragmatic liberalism that could help catalyze a new outlook party-wide.  If aided by an echelon of leading Democrats, their inclinations could form the nucleus of an all-out movement.

Meanwhile, closer to home, a progressive version of Democracy is very much on display, with Illinoisans like Rahm Emanuel, Toni Preckwinkle, and now even Governor Quinn pushing against the party’s traditional constituencies in a quest for more efficient government that reins in spending.

Can the Democrats shake it up and become a new party?  Though it seems up to them, perhaps the answer’s with you.

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