The new era of middle-class rule

By David Brooks
THE NEW YORK TIMES

February 4, 2009

I've become increasingly concerned about the rising number of rich people who are being caught unawares by shifts in the sumptuary code. First, there were those auto executives who didn't realize that it is no longer socially acceptable to use private jets for lobbying trips to Washington. Then there was John Thain, who was humiliated because it is no longer acceptable to spend $35,000 on a commode for a Merrill Lynch washroom.

Then there are the Wall Street executives who were suddenly attacked from the White House for giving out the same sort of bonuses they've been giving out for years. Now, there are Tom Daschle, forced yesterday to ask that his nomination to a Cabinet position be withdrawn after making a quick $5 million off his Senate prestige, and Nancy Killefer, another Obama nominee, who bungled payroll taxes on her household and also was forced to ask to be removed from consideration as the first White House chief performance officer.

I'm afraid there are rich people all around the country who are about to suffer similar social self-immolation because they don't understand that the rules of privileged society have undergone a radical transformation.

The essence of the problem is this: Rich people used to set their own norms. For example, if one rich person wanted to use the company helicopter to aerate the ponds on his properties, and the other rich people on his board of directors thought this a sensible thing to do, then he could go ahead and do it without any serious repercussions.

But now, after the Troubled Asset Relief Program, the auto bailout, the stimulus package, the Fed rescue packages and various other federal interventions, rich people no longer get to set their own rules. Now lifestyle standards for the privileged class are set by people who live in Ward Three.

For those who don't know, Ward Three is a section of Northwest Washington, D.C., where many Democratic staffers, regulators, journalists, lawyers, Obama aides and senior civil servants live. Thanks to recent and coming bailouts and interventions, the people in Ward Three run the banks and many major industries. Through this power, they get to insert themselves into the intricacies of upscale life, influencing when private jets can be flown, when friends can lend each other their limousines and at what golf resorts corporate learning retreats can be held.

The good news for rich people is that people in this neighborhood are very nice and cerebral. On any given Saturday, half the people in Ward Three are arranging panel discussions for the other half to participate in. They live in modest homes with recently renovated kitchens and Nordic Track machines crammed into the kids' play areas downstairs (for some reason, people in Ward Three are only interested in toning the muscles in the lower halves of their bodies).

Nonetheless, many people in Ward Three do have certain resentments toward those with means, which those of you in the decamillionaire-to-billionaire wealth brackets should be aware of.

In the first place, many people in Ward Three suffer from Sublimated Liquidity Rage. As lawyers, TV producers and senior civil servants, they make decent salaries, but 60 percent of their disposable income goes to private school tuition and study abroad trips. They have little left over to spend on themselves, which generates deep and unacknowledged self-pity.

Second, they suffer from what has been called Status-Income Disequilibrium. At work they are flattered and feared. But they still have to go home and clean out the gutters because they can't afford full-time household help.

Third, they suffer the status rivalries endemic to the upper-middle class. As law school grads, they resent B-school grads. As Washingtonians, they resent New Yorkers. As policy wonks, they resent people with good bone structure.

In short, people in Ward Three disdain three things: cleavage, hunting and dumb people who are richer than they are. Rich people have to learn to adapt to the new power structure if they hope to survive.

First, try to submit to the new sumptuary codes. People in Ward Three have nationalized extravagance and privatized Puritanism. Under their rule, the federal government is permitted to throw hundreds of billions of dollars around on a misguided bank bailout, but if a banker like John Thain spends $1,500 on a wastepaper basket then all hell breaks loose. Dazzling personal consumption is out. Middle-class drabness is in. It's sad, but there's nothing to be done.

Second, in conversation, try not to say that times are so hard you are down to your last $400 million. This will not arouse as much sympathy as you might think.

Third, there are times when Masters of the Universe must be Masters of the Grovel. If you are a hedge fund manager and you find yourself in conversation with a person from Ward Three, apologize for ruining the Hamptons, and subsequently, the entire global economy.

What you must realize, above all, is the rich no longer control the economy and its mores. Ward Three people do, and their rule has just begun.

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me@rescam.org

Utah's congressional delegation is calling President Obama's decision to move the U.S. census into the White House a purely partisan move and potentially dangerous to congressional redistricting around the country.

I guess the census will be faked like some of Franken's votes.

Step 1: Pay Your Taxes: "How to Avoid a Tom Daschle Tax Problem" --The New York Times

We Blame Global Warming: "Media Worldwide Face Climate of Fear, Report Says" --Associated Press

Help Wanted: "San Francisco Officials Seek Toilet Torcher" --MSNBC.com

Everything Seemingly Is Spinning Out of Control: "Court: Giant Inflatable Rat Has Free-Speech Rights" --MSNBC.com

News You Can Use: "Losing Sleep? Don't Stash Your Money Under the Mattress Advises TD Waterhouse" --TD Bank Financial Group press release

Bottom Stories of the Day: "PETA Compares Kennel Club to KKK" --New Zealand Herald

(Thanks to The Wall Street Journal's James Taranto)

Pension board must slash payments on city perk

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me@rescam.org

California state budget debate adjourned as Senate remains logjammed

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me@rescam.org

Newspulper Headlines:

The End of History: Part II: "Lawmakers Say All Issues Settled in Stimulus Bill" --Associated Press

Wow, He's an Artist Too!: "Obama Paints Picture of GOP Adversaries" --Los Angeles Times

The Address Is IRS.gov: "Web Site Created to Accept Donations for Octuplets' Mom" --FoxNews.com

Everything Seemingly Is Spinning Out of Control: "Warbling Opera Singer Mistaken for Assault Victim" --Local (Sweden)

News You Can Use: "Why You Don't Want to Die on a Sunday in Detroit" --The Wall Street Journal

Bottom Stories of the Day: "2010 Olympics Just a Year Away" --Toronto Star

(Thanks to The Wall Street Journal's James Taranto)

"President Reagan inherited an economic situation even worse than the one President Obama has. When Reagan took office, the economy had been in recession for about a year, the unemployment rate was almost identical to today's, but the labor force participation rate was smaller, and inflation was out of control. At the time, the newspapers were filled with stories about the 'worst economy since the Great Depression' -- which, unlike today, was true, and the economic establishment seemed to be bereft of ideas of what to do. Credit markets were in a mess, and both businesses and consumers were not borrowing because they could not afford the interest rates. President Reagan, unlike his critics, had a clear plan to revive the economy, which included: monetary restraint to stop inflation; large reductions in marginal tax rates to renew the incentives to work, save and invest; and a reduction in nondefense spending as a percentage of gross domestic product (GDP). Unlike other recent presidents, Reagan actually kept and delivered on his promises, which resulted in high growth (7.2 percent in 1984 alone) and large reductions in the unemployment rate -- particularly, inflation. He stuck with Mr. Volcker and his monetary restraint because he understood inflation had to be brought under control, even though he also knew it would necessarily prolong the recession. How many of today's politicians would be willing to take the heat for the long run good?" --Richard W. Rahn, Chairman of the Institute for Global Economic Growth

Obituary:

Socks Clinton dies; ex-First Cat known for sleeping was 20



Socks Clinton addresses the press at the White House podium during healthier days


Word tonight that Socks Clinton, the one-time Arkansas stray adopted by the Clintons who rose to international prominence and literary fame as sole feline inhabitant of the White House, died today.

Throat cancer and a euthanasia shot were given as the cause. The cat who lived a Horatio Alger life was believed to be about 20.

Upon leaving the executive residence in Washington, the Clinton family gave the cat to the president's secretary, Betty Currie, who had recently lost her own pet.

Socks relinquished the public spotlight in 2001 due to term limits and spent his retirement living in Maryland where he expected regular home cooking and was particularly fond of chicken.

Socks had become attached to Currie during his White House terms, residing most hours on a blue striped chair next to her desk outside the Oval Office, which he allowed the president to use.

Though reticent in public, Socks was known as an affectionate creature, even tolerating the First Dog, a brown Labrador named Buddy, who was killed in a 2002 collision with a car near the Clintons' suburban New York home.

In an actual statement released Friday the Clintons said: "Socks brought much happiness to Chelsea and us over the years, and enjoyment to kids and cat lovers everywhere. We're grateful for those memories, and we especially want to thank our good friend, Betty Currie, for taking such loving care of Socks for so many years."

Though he was not much of a reader, Socks became internationally famous after a book was written about him -- "Dear Socks, Dear Buddy: Kids' Letters to the First Pets." It was a collection of mail he had received though, truth be told, he expressed no particular interest in any of it.

Some foreign leaders were said to have even requested to have their photo taken with the First Kitty, which he tolerated because he favored diplomacy over militancy. At the end Socks was reported unwilling to eat and unable to stand. He had a last walk outdoors Thursday in Currie's arms.

No memorial plans were announced. A private cremation was planned. Survivors are unknown.

-- Andrew Malcolm

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"I'm trying to maintain a shred of dignity in this world." - Me

"President Reagan inherited an economic situation even worse than the one President Obama has.

Nyet.

Reagan's tax policy did nothing but increase the debt I have to pay. I promise you if Reagan knew his economic policies would result in a debt of 10 trillion dollars and a deficit of more than a trillion dollars by 2010, he would have asked Jimmy Carter how to manage the economy.

Oh, you mentioned Reagan's policies encouraged saving. You might want to review that.


"How many of today's politicians would be willing to take the heat for the long run good?"


Good question. Reagan didn't (honestly, how can you supply arms to both sides of a war) but "Read my Lips" Bush did. He paved the way for Clinton's impressive (and honest) recovery. I didn't like how 41 was elected but once in office he did a better job than his predecessor did.


Reagan was nothing more than an avuncular chimp. Yes he was steadfast in his support of socialist countries like Canada and Great Britain, and he managed to convince people that trickle down was an economic theory instead of pissing on the poor. Good for him, bad for America.

[quote]"President Reagan inherited an economic situation even worse than the one President Obama has.
quote]

I stand by my previous post. Is seems you have an ax to grind and most of your info seems made up.

Newspulper Headlines:

Maybe Better Spam Filters Should Be a TARP Precondition: "Nigerian Accused in Scheme to Swindle Citibank" --The New York Times

Fortunately, the Stimulus Includes $15 Billion for Chum: "Shark Attacks Drop; Expert Cites Ailing Economy" --MSNBC.com

That's Not the Only Thing He Should Have Better Regulated: "Bill Clinton: I Should Have Better Regulated Derivatives" --CNN.com

The Terrible Truth About Nazi Germany: "Adolf Hitler Had 'Shocking' Table Manners" --Times (London)

Everything Seemingly Is Spinning Out of Control: "Experts Warn of 'Terminator'-Style Military-Robot Rebellion" --FoxNews.com

Bottom Stories of the Day: "Carter Voices Confidence in Obama Stimulus Plan" --Associated Press

(Thanks to The Wall Street Journal's James Taranto)

[quote]"President Reagan inherited an economic situation even worse than the one President Obama has.
quote]

I stand by my previous post. Is seems you have an ax to grind and most of your info seems made up.

Agreed Reagan had everything put in place for him. All he had to do was wait for the ball to start rolling and then take all the credit. In a recession its typical to lower interest rates on loans currently the gov't rate is 0-1/4% you can't get any lower. Reagan dealt with high inflation brought on by a Post viet nam recession and a buy american plan that didnt work. Needless to say his work was easier since the economy was forced to sslow down because of massive inflation.

We on the otherhand have massive deflation and 0% interest rates. since people aren't borrowing at this rate perhaps starting a Cash back incentive like the auto companies do would help get people to borrow more.

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In a rich man's house there is no place to spit but his face.
Diogenes Of Sinope

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"I'm trying to maintain a shred of dignity in this world." - Me

Demos need a few billion to tide them over

The House on Wednesday passed a $410 omnibus spending bill to finish nine of the 12 major appropriations bills in the 2009 budget. The Wall Street Journal reports, "Democrats in Congress held off passing these bills last year because they calculated they'd do better under a Democratic President. So they agreed with President Bush to pass only an increase of 3% across the board for these agencies as part of a temporary continuing resolution. Now they're bumping that up to 8%." Oddly enough, these are the same agencies already in line for large chunks of the $787 billion stimulus.

Meanwhile, the bill outrageously adds $50 million for the UN Population Fund, which funds abortions overseas. There are also more than 8,500 earmarks in the omnibus, which we think is Latin for "bus full of pork." Among the $7.7 billion in earmarks are $4.5 million for new park development in Manhattan, $1.7 million for "Swine Odor and Manure Management Research," $1.2 million for mosquito trapping in Florida, and, our favorite, $200,000 for a "tattoo-removal violence-outreach program" in Los Angeles. One of our West Coast editors really has been meaning to get that "Mom" tattoo removed.

$1.7 million for "Swine Odor and Manure Management Research,"

Ooh SETI will finally get some dough for the Cafe cleanup.

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me@rescam.org