2020 ELECTION - THE CORE ISSUE

This article is based in part on one by the author that appeared in www.theglobalist.com

PUBLIC TRUST IN GOVERNMENT - NEW DATA FROM THE PEW CENTER AND THE FEDERAL RESERVE BOARD

By Frank Vogl, Washington DC, July 11, 2019

Public trust in government in the United States has never been as low as it is today in the 40 years since the Pew Research Center started conducting its annual survey. At the same time, never before have so many Americans owned such a tiny fraction of the nation's total wealth as is now the case.

Put these two stark facts together and you might conclude that many Americans believe that the system is rigged against them - that money owns and runs this democracy. The combination of core distrust in our government and acute income insecurity will emerge as the central issue in the 2020 U.S. elections.

PUBLIC DISTRUST

 When the Pew Research Center started its National Election Study asking about trust in government in 1958, about three-quarters of U.S. citizens trusted the federal government to do the right thing almost always or most of the time.

Now, the level of distrust exceeds that 75% level by a considerable margin.

A new Pew study shows that only 17% of U.S. citizens trust the federal government to do the right thing always or most of the time – the lowest level ever recorded (see chart below).

THE WEALTH GAP

Then, according to a new report from the U.S. Federal Reserve Board, household wealth in the United States has quadrupled over the 30 years since 1989. However, over this period, the wealthiest Americans increased their share of the nation’s total wealth from 60% to 70%. Their gain came at the expense of all other Americans.

The most striking development relates to less well-off Americans: fully one-half of all American households saw their combined share of total American wealth decline from 4% back in 1989 to an almost invisible 1% today.

What this fact really means is that vast numbers of Americans have virtually no savings, large debts and face bankruptcy if they face an emergency expense.

INCOME INSECURITY

The wealth distribution data means, in fact, the lack of financial assets held by around 50% of American households makes it very difficult for people to obtain credit, including home mortgages from their banks, which fuels concerns about housing. it means that paying healthcare bills is a nightmarish worry for scores of millions of Americans. It means that the now record level of student debt is likely to burden families for years to come.

POLITICS

Economists may have a host of explanation about just how the most successful capitalist nation in history created conditions of extraordinary financial insecurity for so many people. I believe that when one considers the record level of public distrust in government now, then assuredly many Americans believe that excessive influence of money in every aspect of national politics has created a situation where the wealthiest Americans keep getting richer and boost their share of national wealth, while most everyone else becomes increasingly dependent upon an ever-smaller portion of the national wealth pie.

So is the American democratic system rigged?

A definitive answer may not be possible, but perceptions by many Americans that the system is corrupt and that we have become a full-scale pay-to-play democracy, is concerning. It may lead voters to favor anyone untainted from the smell of Washington DC and established politics - thus the rise of Donald Trump. It might make many incumbents vulnerable, so the rise of insurgents in primaries, pushing voters either further left or further right.

MONEY

A new report shows that the financial industry spent at least $1.9 billion last year on political action – about $957 million on lobbying, and $922 million supporting candidates in last November’s mid-term Congressional elections – a record for such elections.

Among just the top 20 donors in this sector, the largest was the National Associations of Realtors with spending of over $144 million and the 20th place was held by Wells Fargo banking group with a still formidable total of $10.5 million.

The scale of the cash flowing into politics is awesome. Despite legislative efforts to curb this activity, introduced in both the Senate and the House of Representatives by Democrats, there is no chance of reform so long as the Republicans control the Senate.

BIDEN & TRUMP - INSIDERS

Senator Joe Biden is currently the front-runner in the opinion polls among Democratic Party candidates, but his statements suggest not only that he lacks the passion about anti-corruption demonstrated by rivals Sanders, Warren and Harris, but he does not suggest that he understands that American voters feel cheated by the Washington political establishment.

Biden has been a prominent member of this political elite for more than 40 years.

Trump had appeal as an 'outsider' in 2016, but now he has been at home in the White House and, while he will continue to try and suggest that he is not part of the ruling elite, it will be a tougher sell.

Listening to voters

Many of the winners in the elections to Congress last November understood that voters were keen to have new leaders willing to learn, for example, about the healthcare cost anxieties of most Americans and unwilling to take campaign funds from special interests and large donors.

Americans attending the rallies of the vast field of presidential candidates may not be talking about the Mueller Report, but their strong views send a clear message that they have had enough with Washington corruption.

The eventual Democratic Party nominee to face Republican Trump needs to be someone who listens to the voters and understands why they are so distrustful of their government. They need to understand that massive financial insecurity abounds in America today, it is linked in the minds of many voters to distrust of government and perception of corruption.

The winners in the U.S. election races in 2020 will be those who understand this core issue.

Learn more of Frank Vogl's views at www.frankvogl.com

#election #corruption #trust #wealth #inequality # Trump # Warren #Biden