Seeking the Common Good:Seeking the Common Good:

A New Social Contract in AmericaA New Social Contract in America

Catholic Social Ministry GatheringCatholic Social Ministry Gathering

Charity in Truth: Seeking the Common GoodCharity in Truth: Seeking the Common Good

February 8, 2010February 8, 2010

Ray BosharaRay Boshara

Vice President & Senior FellowVice President & Senior Fellow

New America FoundationNew America Foundationwww.newamerica.net

202-986-2700202-986-2700

Let me describe an era to you...Let me describe an era to you...

Rapid technological changeRapid technological change Stunning advances in scienceStunning advances in science Rising fundamentalismRising fundamentalism Gaping inequalityGaping inequality Double-digit unemploymentDouble-digit unemployment Networks of violent non-state Networks of violent non-state

actorsactors Parents fretting over the Parents fretting over the

quality and safety of foodquality and safety of food A health care system in crisisA health care system in crisis Massive consolidation among Massive consolidation among

corporationscorporations

A new era of infectious A new era of infectious diseasedisease

New mediums spreading New mediums spreading violent and obscene imagesviolent and obscene images

Well organized lobby on Well organized lobby on behalf of spending on the behalf of spending on the elderlyelderly

Widespread, nefarious lending Widespread, nefarious lending practices and rising debt practices and rising debt levels among the middle classlevels among the middle class

Development of massive, Development of massive, lower-cost energy sources, lower-cost energy sources, and mounting concerns about and mounting concerns about the environment.the environment.

Sound familiar? Progressive Sound familiar? Progressive Era – about a 30 year period Era – about a 30 year period beginning in the deep beginning in the deep recession of the early 1890s.recession of the early 1890s.

Now let me tell you some of what they achievedNow let me tell you some of what they achieved…… Seriously reduced the role of Seriously reduced the role of

money in politicsmoney in politics Reformed the health care Reformed the health care

systemsystem Dramatically reduced rates of Dramatically reduced rates of

infectious diseaseinfectious disease Tamed the drug industryTamed the drug industry Created a regulatory regime for Created a regulatory regime for

Wall Street and the banking Wall Street and the banking sector that prevented any need sector that prevented any need for massive taxpayer bailoutsfor massive taxpayer bailouts

This included the Federal This included the Federal Reserve Act, one of the most Reserve Act, one of the most enduring of all Progressive enduring of all Progressive reformsreforms

Stopped predatory lendingStopped predatory lending Enacted the Pure Food & Drug Enacted the Pure Food & Drug

Act, and the consumer safety Act, and the consumer safety movement.movement.

Instituted the federal, Instituted the federal, progressive income tax systemprogressive income tax system

Forestalled the growth of Forestalled the growth of terrorism and rationalized terrorism and rationalized immigrationimmigration

Engineered a massive Engineered a massive conversion to cleaner, cheaper conversion to cleaner, cheaper energyenergy

Restored public trust in Restored public trust in governmentgovernment

Ended child labor, gave women Ended child labor, gave women the right to votethe right to vote

Revamped public schoolsRevamped public schools Installed an ethic of thrift, Installed an ethic of thrift,

conservation and public service conservation and public service Universalized high school Universalized high school

educationeducation Left no legacy of public debtLeft no legacy of public debt Launched the social work Launched the social work

profession through Jane profession through Jane Addams, Ellen Gates Starr, Hull Addams, Ellen Gates Starr, Hull HousesHouses

The Next Progressive Era, The Next Social Contract?The Next Progressive Era, The Next Social Contract?

Our economic, social, cultural, demographic, and environmental conditions Our economic, social, cultural, demographic, and environmental conditions are similar - but could we achieve what they achieved? At the very least, are similar - but could we achieve what they achieved? At the very least, what could we learn from them?what could we learn from them?

Once-in-a-century transformation, promise and peril - Once-in-a-century transformation, promise and peril - The Next Progressive The Next Progressive Era?Era?

Mark Twain is said to have observed that history does not repeat itself, but Mark Twain is said to have observed that history does not repeat itself, but it often rhymes.it often rhymes.

Hegel: “The Owl of Minerva flies only at dusk.” We can understand an era Hegel: “The Owl of Minerva flies only at dusk.” We can understand an era only at the end of it.only at the end of it.

America’s social contract up for negotiation, always following an era of America’s social contract up for negotiation, always following an era of stunning industrial, technological, and demographic change. Three major stunning industrial, technological, and demographic change. Three major social contracts so far-social contracts so far-

First – followed founding of republic, small-scale owners, yeoman farmers First – followed founding of republic, small-scale owners, yeoman farmers Second – followed 1Second – followed 1stst industrial revolution, led to Progressive Era industrial revolution, led to Progressive Era Third – followed 2Third – followed 2ndnd industrial revolution, led to New Deal industrial revolution, led to New Deal Fourth – what social contract follows the 3Fourth – what social contract follows the 3rdrd industrial revolution?? industrial revolution??

In other words, we’re still living with the social contract established in the In other words, we’re still living with the social contract established in the 1930s – a monumental achievement, but one that no longer reflects the 1930s – a monumental achievement, but one that no longer reflects the globalized, information-rich, flexible, and mobile world in which we live.globalized, information-rich, flexible, and mobile world in which we live.

What do I mean by “Progressive”?

The term has changed much over time• 1912 election – Republican William Taft, Democrat Woodrow Wilson,

Progressive “Bull Mouse” Party candidate Teddy Roosevelt all competed to be the best progressive. Wilson, of course, prevailed.

• Can you imagine Glenn Beck, or Sarah Palin today calling themselves a progressive?

• Many liberals or Democrats claim to be progressive, but it means many things, a confused term, and for many, not a positive one.

Original vision: Back then it was meant to protect a way of life – the independent producer, the owner, the business man, the “yeoman” farmer, and the community from forces beyond one’s control. That word dropped out of national lexicon when, in the 30s, the consumer became the ideal America – an era that is coming to an end.

Today: A government that promotes opportunity, financial independence, strong families and communities, and a fair playing field. Larger economic and corporate forces need to be restrained and regulated to keep the playing field fair so that families and communities have a fair shot at economic independence.

Not big or small government – whatever size is necessary to realize this vision.

Symptoms of Our Broken ContractSymptoms of Our Broken Contract

Current recession reflects the end of an economic era – the American consumer as Current recession reflects the end of an economic era – the American consumer as the engine of economic growththe engine of economic growth

Pope Benedict’s concerns – downsized social security systems, pensions, and safety Pope Benedict’s concerns – downsized social security systems, pensions, and safety nets; unfair trade regimes, poverty, inequality, etc,nets; unfair trade regimes, poverty, inequality, etc,

Zero net job creation between 1999-2009, current double-digit unemploymentZero net job creation between 1999-2009, current double-digit unemployment

47 million American uninsured47 million American uninsured

Modern monopoliesModern monopolies

Income and wealth inequality – growth not shared broadly. Rewards to owners of Income and wealth inequality – growth not shared broadly. Rewards to owners of capital, not to laborcapital, not to labor

Declining real wages last 35 yearsDeclining real wages last 35 years

Stagnant or declining economic mobilityStagnant or declining economic mobility

Poverty – especially child poverty, poverty by racePoverty – especially child poverty, poverty by race

Alarming rates of teen pregnancies and non-marital birthsAlarming rates of teen pregnancies and non-marital births

Our MomentOur Moment Not an apologist for the Era, and clearly some of their moral reforms – like prohibition Not an apologist for the Era, and clearly some of their moral reforms – like prohibition

– overreached. And some of their public health accomplishments led to the – overreached. And some of their public health accomplishments led to the commercialization of medicine, which we’re still suffering from today.commercialization of medicine, which we’re still suffering from today.

But our economic, social, cultural, demographic, and environmental conditions are But our economic, social, cultural, demographic, and environmental conditions are similar – but could we achieve what they’ve achieved? At the very least, what could similar – but could we achieve what they’ve achieved? At the very least, what could we learn from them?we learn from them?

Mark Twain is said to have observed that history does not repeat itself, but it often Mark Twain is said to have observed that history does not repeat itself, but it often rhymes. Let’s hope so.rhymes. Let’s hope so.

I begin this way to demonstrate we are undergoing a once-in-a-century I begin this way to demonstrate we are undergoing a once-in-a-century transformation that holds great peril but offers equally tantalizing – and achievable -- transformation that holds great peril but offers equally tantalizing – and achievable -- opportunity for reforms, to usher in what Phil Longman, and I call opportunity for reforms, to usher in what Phil Longman, and I call The Next The Next Progressive Era.Progressive Era.

This is the time to think big, to rewrite the rules of engagement, to re-make many of This is the time to think big, to rewrite the rules of engagement, to re-make many of the core elements of our social contract – the “deal” between citizens, employers, the core elements of our social contract – the “deal” between citizens, employers, non-profits, and government. non-profits, and government.

Following the Scott Brown election, lagging process on health care reform, energy, Following the Scott Brown election, lagging process on health care reform, energy, climate change, the housing market, reducing the deficit and debt and, of course, climate change, the housing market, reducing the deficit and debt and, of course, restarting the economy, many say those hopes have been dashed. restarting the economy, many say those hopes have been dashed.

We’re all humbled by this –but not without hope. We come with a new vision, new We’re all humbled by this –but not without hope. We come with a new vision, new themes, and new policy ideas for a progressive era. themes, and new policy ideas for a progressive era.

Charity in Truth – Also a Defining MomentRerum novarum

• Published in 1891, at dawn of Progressive Era

• Similar concerns (industrialization, exploited workers, etc) inspired both Pope Leo XIII and Progressive Era reformers

• But Catholic leaders wanted Progressive Era reforms in the context of a larger, moral version of the human person.

• Huge impact in the Church, on the U.S –rights of workers, wages, unions, larger social conditions.

Caritas in veritate• Pope Benedict sees a similar defining

moment today -- and similar concerns about economic reforms lacking a larger, moral vision and context

• “The current crisis obliges us to re-plan our journey, to set ourselves new rules…the crisis thus becomes an opportunity for discernment, in which to shape a new vision for the future.” (p. 21)

• “The risk of our time is that the de facto interdependence of people and nations is not matched by ethical interaction of conscience and minds (p. 7)”

Caritas in veritate – 6 concerns• Downsizing of SS systems• Hunger• Respect for life• Denial of religious freedom• Rights of workers• Trade must be fair

Capital vs. Labor tension – at heart of Rerum Novarum, central tension today as well. New capital-labor dynamic requires the state to forge a new social contract, to re-allocate risk:

“The State finds itself having to address the limitations of its sovereignty imposed by the new context of international trade and finance, which is characterized by increasing mobility both of financial capital and means of production.”

“It seems more realistic to re-evaluate the State’s role and its powers, to remodel them to address the challenges of today’s world.”

“Primary capital to be safeguarded and valued is man, the human person in his or her integrity.”

Our Response Opportunity and need for new social contract are immenseOpportunity and need for new social contract are immense

However, following the Scott Brown election, lagging process on health However, following the Scott Brown election, lagging process on health care reform, energy, climate change, the housing market, reducing the care reform, energy, climate change, the housing market, reducing the deficit, endless political gridlock, and, of course, restarting the economy, deficit, endless political gridlock, and, of course, restarting the economy, many say those hopes for a new social contract, new progressive era, or many say those hopes for a new social contract, new progressive era, or Charity in Truth have been dashed.Charity in Truth have been dashed.

We’re humbled, but not without hope. Need new vision for government, We’re humbled, but not without hope. Need new vision for government, new themes, new policy ideas, and new kinds of coalitions.new themes, new policy ideas, and new kinds of coalitions.

We can look back for inspiration and guidance , to Christian and Catholic We can look back for inspiration and guidance , to Christian and Catholic leaders from the 1leaders from the 1stst part of the last century who seized opportunity amidst part of the last century who seized opportunity amidst economic and social upheaval, who were neither democrats or republicans, economic and social upheaval, who were neither democrats or republicans, but true to causes and promoting life, justice and the common good.but true to causes and promoting life, justice and the common good.

• Progressive era theologian Walter Rauschenbusch, to live a Christ-like life. Progressive era theologian Walter Rauschenbusch, to live a Christ-like life. "Christianity is in its nature revolutionary" and reminded society of that. "Christianity is in its nature revolutionary" and reminded society of that.

• Monsignor John Ryan, who grew up in the Progressive Era, who railed against the “Gospel of Consumption,” gave life to the idea of the “living wage,” and whose impact on the New Deal was so profound he was called “Monsignor New Deal.”

• Bishop’s 1919 Social Reconstruction Program, with John Ryan’s leadership, had an enormous impact on the shape of New Deal legislation.

Five New Ideas For a New Social Contract

Consistent with Catholic Social Teaching – promote human dignity, subsidiarity, solidarity, participation, and the common good

Deeply informed by Caritas in veritate

Job creation, yes, especially in those sectors where employment is likely to grow – healthcare, education and local public services But job creation alone is not enough to thrive in the 21st century economy. Let us:

1. Develop producers, not just consumers. Can we be defined by what we produce, not by just we consume? By what we give, not by just we take?

2. Build assets, not just income. Property ownership is a long tradition is the U.S. Once dominant, now recessive gene in our DNA. Assets are key to participating in 21st century economy.

3. Create entrepreneurs, not just employees. Entrepreneurs are of course the engine of job creation. We ended the decade from 2000-2009 with zero net job creation because we didn’t create enough new jobs.

4. Promote thrift – in the broadest possible sense, a new ethic of conservation applied broadly.

5. Build institutions, not just lives. One of the reasons Progressive Era reforms were successful and endured is because they built institutions.

What You Can Do

Go to Capitol Hill

Pioneer new ideas, peek over the horizon

• Wisconsin idea – little did they know that their innovations would become a model for the New Deal.

• Nor did Jane Addams know that when she and Ellen Gates Starr started the Hull House in Chicago in 1889, it would lead to the creation of 500 settlement houses over the following 30 years.

Do great, pioneering work – but make sure others know about it: Capitol Hill, media, funders, your Bishop, Ralph McCloud, Rev. Larry Snyder, Candy Hill, John and Kathy, others.

Conclusion

As we construct the next social contract, let us heed the main messages of Caritas in veritate (Love in Truth).

• We have both a personal and collective responsibility to promote the common good.

• Getting globalization and our economy right isn’t just a technical matter, it’s a moral one.

• Justice alone is not enough. Justice must be a manifestation of love.