My favorite books exploring class warfare and that the wrong class is winning

In addition to its excellent coverage of the economics of this transformation, its historical account of the shift in class partnerships makes a unique contribution to our understanding of the period. In the Golden Age of the previous period Big Business maintained a fraught alliance with its unions willing to pay growing wages closely aligned with labor productivity growth with the grudging acceptance of higher taxes and regulations of the Keynesian era leaving small business to fend for itself. Once Japan and Germany reindustrialized creating a more competitive economic landscape Kotz describes the full-blown class warfare identified by Buffet as Big Business realigned with small business to fight for cuts to its wages, taxes, regulatory costs and unions, and progressive politics.

The fact that the capitalist class organizations, with their use of capital strike and flight, lobbying, funding right-wing “grassroots” organizations, think tanks, media, and Chicago school intellectuals, wanted to drive economic policy in a certain direction does not inevitably lead to the conclusion that they would have succeeded in achieving these goals. Neoliberal policies could not have been implemented in even a nominal democracy without at least a modicum of support from its victims. Remarkably, large sections of the American electorate vote for and support policies that favor the very business class that has profited from their economic decline. This is the first book to describe the abandonment of the Democratic Party by less-educated Whites which had a significant effect on the American shift to the right from the 1970s onward. My co-authors and I explore this shift in up-to-date detail in our book.

For Martin Gilens, the normal business of governing in the U.S. is largely untroubled by the preferences and desires of anybody but the wealthy.  Gilens looks at thousands of proposed policy changes, and the degree of support for each among poor, middle-class, and affluent Americans. His findings: when preferences of low- or middle-income Americans diverge from those of the affluent, there is virtually no relationship between policy outcomes and the desires of less advantaged groups. In contrast, affluent Americans’ preferences exhibit a substantial relationship with policy outcomes whether their preferences are shared by lower-income groups or not.

This is a book about how inequality and economic crisis reflect what the government has done to aid the rich and what it has not done to safeguard the interests of the middle class. Hacker and Pierson trace the rise of the winner-take-all economy back to the late 1970s when, under Democratic president Carter and a Democratic Congress, a major transformation of American politics occurred. With big business and conservative ideologues organizing themselves to undo the regulations and progressive tax policies that had helped ensure a fair distribution of economic rewards, deregulation got underway, taxes were cut for the wealthiest, and business decisively defeated labor in Washington. As a sign of the Neoliberal times this transformation began with Carter, continued under Reagan, the Bushes, the Democrats Clinton and Obama, revealing a new reality where both parties learned to serve mammon. For Hacker and Pierson once we recognize that both parties behave as if they are under corporate control the path ahead becomes crystal clear, the need to rebuild American democracy. 

This book adds the international dimension to the Neoliberal story. Gindin and Panitch argue that the U.S. national state and “American MNCs” found key allies abroad among many dominant groups, as various state elites and dominant class fractions worldwide stood to gain through neoliberal reforms. The authors argue that supranational organizations developed largely along U.S. strategic lines. They explain for example how U.S. representatives hold inordinate influence through supranational forums such as the Bank for International Settlements, the World Trade Organization, and the International Monetary Fund. Furthermore, legal reforms (with U.S. support) have been made in many countries to limit the influence that voters have on economic policy with, for example, the de-politicization of trade policy. This is the story we tell for the U.S. writ large.