Jane, You Ignorant $[_+; Our Political Division is an ILLUSION

Context

By 1979 on Saturday Night Live, we normalized polarization and incivility. It was all in “good humor” as a comedy routine.

Weekend Update: Jane, You Ignorant Slut – SNL

By 1992 politicians learned that black/white, good/bad, right/wrong framing of political issues was most effective. No more late-night sessions in a “smoke filled room”. No more compromises. No more earmarks or logrolling. Political parties must be philosophically consistent. No personal relations among congresspeople. No great existential threat, country, philosophy or doctrine to oppose together. Modern marketing and psychology provided the insights and tools to truly manipulate the public. Emotions are more powerful than logic. Hate and fear are stronger than hope. Compromise is immoral. Framing the discussion and providing the right language is most effective.

Republicans learned much faster than Democrats who held onto their historical successes, clung to rationality, facts and experts, embraced progressive trends, worshipped ideals above results, were slow to leverage modern political technologies, and truly believed they would prevail simply because they were right.

In hindsight, the path forward was obvious. Find issues that are emotionally charged. Define them as good versus evil. Manage the conceptual frames to make your position appear reasonable and the opponents extreme or radical. Use actions, political activity and the media to focus attention on the issues that are most favorable to your party at any point in time. The ends justify the means. “Winning is the only thing”. I have to respond to my opponents. Fight against evil doers. Enable victimhood. We have experienced 40 years of the downward spiral.

Situation

We are polarized. We have lost trust. We are skeptical and pessimistic. Does this make any sense? We live in the greatest country in the greatest time in history. Our parents and grandparents defeated fascism, nationalism, totalitarianism and communism. They learned to tame business cycles. They tripled international trade for mutual benefit. They established global alliances and organizations to solve problems and reduce the risks of conflicts. They quadrupled real output per person. They reduced global poverty by 80%. They extended human lifespans by two decades. I want to argue that the apparent political conflicts in the US today are a “grand illusion”. First, let’s outline the 5 main dimensions of politics.

The Grand Illusion

Political Dimensions – Google AI 8/24/2026

The main dimensions of American politics over the last 250 years center on federal power, economic control, civil rights, foreign policy, and cultural change.

Federal Power (National vs. State)

  • The Debate: How much control the central government has over individual states.
  • Early Years: Fought over whether the nation was a loose union of states or a strong single country (culminating in the Civil War).
  • Modern Era: Focuses on federal laws versus state laws regarding healthcare, education, and public safety.

The Economy (Free Market vs. Government Role)

  • The Debate: How much the government should regulate business and help the poor.
  • Early Years: Promoted a mostly free market with low taxes and little regulation.
  • Modern Era: Includes social safety programs like Social Security and government rules for banks and corporations.

Civil Rights (Equality vs. Exclusion)

  • The Debate: Who gets full rights and protections under the law.
  • Early Years: Limited rights mostly to white, property-owning men.
  • Modern Era: Fought for and expanded the rights of enslaved people, women, racial minorities, and LGBTQ+ individuals.

Foreign Policy (Isolationism vs. Global Action)

  • The Debate: How much America should get involved in world affairs.
  • Early Years: Avoided permanent foreign alliances and focused on North America.
  • Modern Era: Led global organizations and fought in world wars and international conflicts.

Culture and Society (Tradition vs. Progress)

  • The Debate: How social traditions and moral values shape laws.
  • Early Years: Tied heavily to religious foundations and agrarian lifestyles.
  • Modern Era: Centers on shifting social norms, family structures, and individual freedoms.

Analysis and Hope

Conservatives have won the financial battle since LBJ’s “Great Society” proposals to increase the role of the federal government with Reagan’s election and re-election. Political battles, inertia, convenience and special interests have since increased the power of the federal government, especially the presidency. Democrats can now see the dangers of centralized federal power and cooperate with the remaining moderate Republicans to “accept” a reasonable compromise. Fiscal conservatives can join with Democrats to address the federal budget deficit and national debt.

Americans remain committed to a “mixed economy” that is primarily capitalist with relatively limited regulation compared with other “advanced” economies. Again, Republicans won this war with Reagan. They have tried to further deregulate and cut taxes with some results. However, the Trump Republican party is a populist party that mistrusts big business. This is a “tug of war” area, not an existential battle, despite it being positioned this way by both parties.

Democrats (and historical Republicans) won the civil rights war. Some elements of the Trump Republican party oppose the more extreme expression of “civil rights” application and have politically leveraged alleged Democratic overreach. As a country, we have a basic consensus of the 80%.

The struggle between isolationism and global engagement has been rekindled by Trumpian Republicans, overturning more than 50 years of Republican economic globalism. Democrats accepted this approach with the Clinton “third way” of the 1990’s. Trump has made this an emotional “us versus them” issue, conflating defense, economics and immigration. Big business and Wall Street have not fought back. Most Americans don’t want to give up the benefits of cheap imports, NATO, alliances and lower wage service, farm and construction workers. Both parties can limit the real risks of globalization.

Until recently, Democrats had “won” the so-called “culture wars”. Science, progress and secular society would grow forever. A balance with religion, tradition, community, spirituality, and local cultures was not needed. We now have a consensus that the cultural pendulum has swung too far in some ways and that we all have a need to accept a pluralistic society as we did at the nation’s founding. At that time, it was many denominations. Now it is many spiritual and cultural views. The “cultural conservative” base of the Republican Party, IMHO, has rightfully opposed the extinction of traditional cultural views. The Democratic party and its thought leaders can return to its history of both pushing for progress and embracing a diversity of views on how best to live one’s life.

Summary

Americans prefer a moderate role for the federal government. A little less than today. We are not a statist France. Delegate as much as possible to the states. Re-establish “checks and balances” and “the rule of law”.

Americans prefer a mixed economy with relatively low government control and taxes. There is no consensus for radical change.

Americans embrace civil rights for historic categories. They mostly don’t support affirmative action or expansion of categories or perspectives.

Americans prefer the benefits of global engagement AND want their country to be protected. The failure of the Trumpian win/lose approach is increasingly clear.

Americans prefer progress and embrace individual rights to choose religious and cultural beliefs and practices. Most can strongly agree on that.

There are not existential threats on any of these 5 dimensions for two-thirds of Americans. We have to reject politicians, parties and influencers who try to frame extreme conflict when it does not exist.

Data Centers Are The Devil: Opposition Reflects Our Political Failures

Context

70% of Americans oppose the construction of large-scale data centers locally. More Democrats oppose building, but this is a rare bipartisan topic that all politicians are digesting and turning into a campaign issue. Why do so many Americans oppose this? Is the opposition well-founded? The most recent Gallup poll identified more than 25 reasons for opposition.

  1. Negative views on AI. Government regulation of AI is inadequate versus its existential threats to humanity. Stop it locally. Like the atomic bomb, nuclear power, chemical and biological weapons, bioengineering, and GMOs people cannot assess the cost/benefit ratio or assess the threats to jobs, white collar jobs, service jobs, manufacturing jobs, health care jobs, society, democracy, working class, etc. The undefined and unlimited risk is so large it must be stopped. Is this logical? Given the lack of congressional, professional, business, university, church or high-tech deep understanding, pausing AI is reasonable. Stopping data center construction is something that local citizens and politicians can do because they don’t have confidence in national leaders. There is a Frankenstein and Godzilla dimension to this.
  2. Excess water usage. Local government approvals should consider water usage. Data centers should be built in places with adequate water supplies. Many have been built or proposed in areas without surplus water supplies. Developers develop. That’s what they do. Local regulators must consider all factors for zoning and development deals. Citizens are not confident that politicians or regulators will make wise decisions. Data centers don’t consume large quantities of water. Local governments can require them to use closed loop system that greatly reduce water usage.
  3. Electricity consumption increases electricity rates. Public utility regulators are charged with spreading costs across all uses. New usage should not increase rates. Regulators can force very large users, like data centers, to pay for some extra costs of start-up and operation.
  4. Electricity consumption threatens grid reliability. States and regions plan 20-30 years in advance. The recent increase in electricity demand and the addition of greater wind/solar power sources makes grid management more challenging. Data centers are not a major threat.
  5. Electricity consumption undermines the transition to green energy sources. Again, this is a state regulatory issue. The blend of fossil versus green energy is a power company and state regulation choice. Wind, solar, hydro, nuclear and tide sources are increasingly competitive. Natural gas is the “swing” source and coal is uncompetitive.
  6. Data center is an imperfect local land use. From the local community perspective, land could/should be used for farming, parks, nature, community centers, higher tax value uses, greater employment uses, greater total economic value uses, etc. Again, local zoning/regulation should shape this decision. Are local politicians accountable for their decisions?
  7. Data centers are ugly, like cell phone towers, only huge. Another local zoning issue. Does this fit within “light industrial” zoning? It looks like a huge warehouse, without all of the doors and traffic.
  8. NIMBY. I don’t want this locally. Let someone else host it. With proper zoning, data centers don’t harm property values. After construction, traffic is minimal.
  9. Taxpayer subsidies are too high. Probably. Press local politicians. No subsidies are required.
  10. Data center zoning/development/subsidy deals are hidden. Increased transparency is called for today.
  11. Data centers generate local pollution. Another regulation issue. Noise limits for AC and backup generators. This is a minor issue.
  12. Water and electricity usage requires capital investments. Regulated utilities are empowered to set rates to all users based upon total lifetime costs. In general, utility capacity can be added at lower than legacy capacity costs through time. It cannot be grown quickly without rate increases or rate setting that penalizes new users such as data centers or that requires new users to fund/subsidize construction and rates for a while.

Summary

Data center construction is opposed because citizens have lost trust in government, regulators, bureaucrats, politicians, big business, technology, promises, experts and deals. Ouch.

Historically, leaders found ways to work “behind the scenes” to resolve, compromise or guide issues to acceptable conclusions. Perhaps not optimal, wise or representing the people, but reasonable.

We have a crisis of governance. The polarized political parties, legislative gridlock, dueling lawsuits, complex issues, undermining of experts, data and rationality have left us angry and uninterested in problem solving.

As Thomas Paine said during the American Revolution, “these are the times that try men’s souls.” Are the differences insurmountable?

Political Dimensions – Google AI 8/24/2026

The main dimensions of American politics over the last 250 years center on federal power, economic control, civil rights, foreign policy, and cultural change.

Federal Power (National vs. State)

  • The Debate: How much control the central government has over individual states.
  • Early Years: Fought over whether the nation was a loose union of states or a strong single country (culminating in the Civil War).
  • Modern Era: Focuses on federal laws versus state laws regarding healthcare, education, and public safety.

The Economy (Free Market vs. Government Role)

  • The Debate: How much the government should regulate business and help the poor.
  • Early Years: Promoted a mostly free market with low taxes and little regulation.
  • Modern Era: Includes social safety programs like Social Security and government rules for banks and corporations.

Civil Rights (Equality vs. Exclusion)

  • The Debate: Who gets full rights and protections under the law.
  • Early Years: Limited rights mostly to white, property-owning men.
  • Modern Era: Fought for and expanded the rights of enslaved people, women, racial minorities, and LGBTQ+ individuals.

Foreign Policy (Isolationism vs. Global Action)

  • The Debate: How much America should get involved in world affairs.
  • Early Years: Avoided permanent foreign alliances and focused on North America.
  • Modern Era: Led global organizations and fought in world wars and international conflicts.

Culture and Society (Tradition vs. Progress)

  • The Debate: How social traditions and moral values shape laws.
  • Early Years: Tied heavily to religious foundations and agrarian lifestyles.
  • Modern Era: Centers on shifting social norms, family structures, and individual freedoms.

Analysis and Hope

Our challenges today are mainly political. We, the best educated, wealthiest, most productive and knowledgeable citizens of all time, have allowed politics to be framed as existential battles. They are not. Citizens must step up to oppose the politics of demonization and division.

Conservatives have won the financial battle since LBJ’s “Great Society” proposals to increase the role of the federal government with Reagan’s election and re-election. Political battles, inertia, convenience and special interests have since increased the power of the federal government, especially the presidency. Democrats can now see the dangers of centralized federal power and cooperate with the remaining moderate Republicans to “accept” a reasonable compromise. Fiscal conservatives can join with Democrats to address the federal budget deficit and national debt.

Americans remain committed to a “mixed economy” that is primarily capitalist with relatively limited regulation compared with other “advanced” economies. Again, Republicans won this war with Reagan. They have tried to further deregulate and cut taxes with some results. However, the Trump Republican party is a populist party that mistrusts big business. This is a “tug of war” area, not an existential battle, despite it being positioned this way by both parties.

Democrats (and historical Republicans) won the civil rights war. Some elements of the Trump Republican party oppose the more extreme expression of “civil rights” application and have politically leveraged alleged Democratic overreach. As a country, we have a basic consensus of the 80%.

The struggle between isolationism and global engagement has been rekindled by Trumpian Republicans, overturning more than 50 years of Republican economic globalism. Democrats accepted this approach with the Clinton “third way” of the 1990’s. Trump has made this an emotional “us versus them” issue, conflating defense, economics and immigration. Big business and Wall Street have not fought back. Most Americans don’t want to give up the benefits of cheap imports, NATO, alliances and lower wage service, farm and construction workers. Both parties can limit the real risks of globalization.

Until recently, Democrats had “won” the so-called “culture wars”. Science, progress and secular society would grow forever. A balance with religion, tradition, community, spirituality, and local cultures was not needed. We now have a consensus that the cultural pendulum has swung too far in some ways and that we all have a need to accept a pluralistic society as we did at the nation’s founding. At that time, it was many denominations. Now it is many spiritual and cultural views. The “cultural conservative” base of the Republican Party, IMHO, has rightfully opposed the extinction of traditional cultural views. The Democratic party and its thought leaders can return to its history of both pushing for progress and embracing a diversity of views on how best to live one’s life.

Summary 2

Americans prefer a moderate role for the federal government. A little less than today.

Americans prefer a mixed economy with relatively low government control and taxes. There is no consensus for radical change.

Americans embrace civil rights for historic categories. They mostly don’t support affirmative action or expansion of categories or perspectives.

Americans prefer the benefits of global engagement AND want their country to be protected. The failure of the Trumpian win/lose approach is increasingly clear.

Americans prefer progress and embrace individual rights to choose religious and cultural beliefs and practices. Most can strongly agree on that.

There are not existential threats on any of these 5 dimensions for two-thirds of Americans. We have to reject politicians, parties and influencers who try to frame extreme conflict when it does not exist.

Americans Oppose AI Data Centers in Their Area

Data center moratoriums are not a substitute for oversight | Brookings

Why are communities pushing back against data centers? — Harvard Gazette

Opposition to AI data centers – Wikipedia

Americans’ AI data center concerns don’t hold water | Opinion

Why does everyone hate data centers? – by Nate Silver

Data center opposition is rising sharply, Penn survey says – WYYY

Data centers “dug their own grave,” says Texas Gov. Greg Abbott

7 Ways Data Centers Affect US Communities | World Resources Institute

Opposition to Local Data Centers Rises Sharply, Annenberg Survey Finds | The Annenberg Public Policy Center of the University of Pennsylvania

Newt Gingrich’s 1994 Contract With America

Context

Democrats had controlled congress for 40 years. Bill Clinton was president. Republicans wanted to ensure that the “Reagan revolution” of defining a principled conservative party would continue and win. Speaker of the House Newt Gingrich worked with the Heritage Foundation to define an actionable set of goals that were generally popular with the people. He and all Republican Congressional candidates agreed to pursue this detailed policy platform in the first 100 days of the new congress when elected. Republicans won a stunning midterm election victory and passed 9 of the 10 bills in the house of representatives. Historians, journalists, politicians and analysts largely agree that the Gingrich “Contract with America” is the third step in the reestablishment of a conservative Republican party, following Goldwater’s failure and Reagan’s win.

The Content

  1. Congress is subject to national laws. Passed almost unanimously. Anti-congress. Anti-Washington. Nothing burger. Congressional Accountability Act of 1995 – Wikipedia
  2. Constitutional amendment requiring a balanced budget. Failed. Great politics. Bad economics. Not followed by the party for the next 30 years. Helped to establish “fiscal conservatism” as a motivational anchor of the party.
  3. “Take back our streets” anti-crime legislation passed. Required minimum sentences, death penalty, prison construction, law enforcement funding, and state block grants. Fear is great politics. Democrats like Clinton and Biden then supported what is now widely seen as overreach and racially disproportionate law. 20 Years Later, Parts Of Major Crime Bill Viewed As Terrible Mistake : NPR
  4. Welfare reform passed. Clinton supported this as part of the “third way”. Reduced funding and limited access to those who were not “qualified”. Many say this was a needed rebalancing of support versus costs, abuse and disincentives. Others argue it was unnecessary, restricting access to people in need. Critics also say that this “deal” did not stop ongoing criticisms of “unfair access” to benefits. Personal Responsibility and Work Opportunity Reconciliation Act of 1996 – Wikipedia
  5. “Pro-family” policies did not pass. Family/child tax credits, marriage penalty tax rates and new savings accounts. Useful politics, painting the opposition as radical extremists.
  6. National security policies weren’t adopted. Missile defense investments, increased defense spending, more NATO nations, US troops never under UN command.
  7. Securities tort reform passed. Frivolous lawsuits were undermined. Private Securities Litigation Reform Act – Wikipedia
  8. “Jobs and Wages Act” misnamed and not approved. Unfunded mandates law to limit federal directives to states without funding was passed. Unfunded Mandates Reform Act of 1995 – Wikipedia Freeze on regulations, reimbursement for federal “takings’ of property and required cost/benefit analysis were not passed. Small potatoes, purposely.
  9. Constitution changing congressional term limits were not passed.
  10. Presidential line-item veto was passed but ruled unconstitutional by the Supreme Court.
  11. Lower capital gains tax rates were rejected but later approved as part of a compromise bill. Taxpayer Relief Act of 1997 – Wikipedia Again, Clinton’s “third way” embraced capitalism, growth and trade as positive forces for the country. Republicans had effectively changed the framing of economic debates.
  12. Government spending and department reductions and eliminations did not pass.
  13. Net, net. Anti-crime and welfare reform laws passed.

Why So Important?

  1. Republicans captured congress, convincingly. It may have been due to the usual midterm swing or Bill Clinton’s unpopularity or Hillary Clinton’s health care proposals. The win was large.
  2. This was a constructive approach to politics. Say what you believe. Deliver. It worked this time. It appealed to new and older generations who increasingly appreciated authenticity.
  3. “Government” was reframed in negative terms. Clinton capitulated. “the era of big government is over”.
  4. “Welfare” was reframed from a social obligation to care for the downtrodden to an expense to be minimized and an obligation to prevent any unfair payments.
  5. Legitimized the use of farcical bill names.
  6. Nationalized politics. National issues and platforms are all. Local issues, interests, capabilities and character don’t matter.
  7. Demonstrated the power of negative politics and sound bites. Anti-government. Big government. Bureaucracy. Anti-Washington. Anti-Congress. Anti-corruption. Anti-crime. Anti-fraud. Tax cuts. Balanced budget. Tax cuts. Welfare reform. Socialized medicine. Anti-bureaucrat. Taxation is theft. Anti-state. Limited government. Liberty. Anti-regulation. Anti-waste.
  8. New federalism, delegating decisions and funding to states. A clever way to reduce federal spending and taxes. A way for national politicians to claim victory.
  9. Temporarily focused politicians of both parties towards a balanced budget.
  10. Reinforced the Reagan concept of “conservatism” as a consistent guiding principle for economics, culture and international affairs.
  11. Defined issues in extreme, black and white terms, leading to political polarization.
  12. Supported the transition of Southern Democrats to the Republican party.
  13. Legitimized an “ends justify the means” view of politics.

Summary

Newt Gingrich understood that politics is about emotions. He elevated emotional issues by framing them in “black versus white” terms. This helped both parties to more clearly define and communicate their core beliefs. The “Contract with America” provided Republican candidates with a consistent, poll-tested policy platform. It was politically very successful in 1994. It framed politics for the next generation. It didn’t deliver much in terms of policy and laws. Cleaner congress, less bad welfare policy and administration, some crime reducing laws, securities law reform. Framing and messaging are most important.

Contract with America – Wikipedia

The Contract with America: Implementing New Ideas in the U.S. | The Heritage Foundation

The 1994 Midterms: When Newt Gingrich Helped Republicans Win Big | HISTORY

Hendrickson Report: The 30th Anniversary of the “Contract with America”: A Conservative’s Journey – ITR Foundation

Whatever Happened to the Contract with America? – Imprimis

Contract with America | Center for the Study of Federalism

The Reagan Revolution and Gingrich’s Contract | American Enterprise Institute – AEI

The Contract with America: The Power of a Positive Message | The Ripon Society

The contract with America’s legacy – Roll Call

Gingrich’s Time Bomb: The Consequences of the Contract – The American Prospect

Contract Revisited | Cato Institute

Requiem for a Republican Revolution | Economic Policy Institute

The Red and the Blue: The 1990s and the Birth of Political Tribalism: Kornacki, Steve: 9780062438980: Amazon.com: Books

Tax Capital and Labor at the Same Rates

Introduction

Capital gains are mainly earned and received by individuals in the top 1-10% of income brackets. These individuals typically have 35% marginal tax rates. The typical capital gains tax rate at these income levels is 20%. Capital earnings are taxed at a 43% discount to labor earnings! 😦

This is inequitable on a basic fairness level. Why should some individuals be taxed at a much lower rate, merely because the form of their income is different?

The fact that 90% of capital gains belong to the top 10% of income earners makes this preference even more questionable, especially to those in the middle 40th to 90th percentile income brackets who pay significant federal taxes. Those below the 40th percentile income level pay immaterial federal taxes and tax rates.

Classical economics indicates that factors of production are interchangeable, so no one factor is preferred to another (land, labor, capital and other/management/R&D/intangibles/intellectual property/entrepreneurship).

Classical economics indicates that the return to each factor of production is determined by supply and demand in each factor market. There is no reason to believe that land, labor or capital are mispriced or misallocated.

Capital gains tax receipts have averaged about $150B per year in the last 20 years, or 9% of individual taxes paid. The country is missing out on $65B per year, or 4% of individual taxes paid. 2025 individual income taxes collected amounted to $2.7T. 4% is $104B, or $775 per household!

In addition to this tax preference for capital over labor, land and intangibles, individuals do not pay capital gains taxes until they sell an asset which triggers gain/tax recognition. High income individuals have the investment flexibility to not recognize capital gains for years and decades. When an individual dies, his basis in an unsold asset is stepped up to the value when they die. All of the capital gain is untaxed by his heirs. The IRS tracks this number. The annual step up is roughly equal to the amount of capital gains taxed. Yes, 9% of the $2.7T annual tax take, $239B per year, $1,750 per household.

The total tax benefit is $340B per year, $2,500 per household.

Criticisms and Responses

  1. Financial capital is required for physical capital investment which is the basis of all economic output. Conceptually, this is incorrect. Land, labor, capital and intangibles are co-producers of output. This is a well-agreed upon result of economics since the “marginal revolution” in the 1880’s. This is a mistaken mirror image of the “labor theory of value” that Marx appropriated from Ricardo.
  2. Financial capital is the essential ingredient for all economic progress and growth. Again, the factors of production are co-equal. Financial markets are just as balanced as the “factors of production” markets. There is no reason to believe that financial markets require a subsidy to provide adequate finances for demanded investments. The globalization of financial markets makes this even less plausible. Savers around the world are easily able to find places to invest.
  3. The return to capital includes inflation, which should not be taxed. Again, at theory level, financial markets balance the supply and demand for money. Market participants incorporate the expected inflation level into their calculations. Individuals invest, expecting a certain inflation rate. They know that their “real” returns will be discounted by inflation. In practical terms, the expected inflation rate has been 2% for 30 years. It has been higher for short periods of time. Critics argue that unexpected spikes in inflation should not trigger capital gains taxes. They don’t argue that unexpected decreases in inflation should drive higher capital gains taxes. In technical terms, the IRS rules could include some “adjustment” so that long-term capital gains would be reduced by the excess of inflation versus a 3% rate.
  4. Capital gains fluctuate with the stock market, so they cannot be relied upon as a source of government income. Over time, the government will collect its fair share.
  5. Investors will dodge any change in the capital gains rules. OK, the legal changes can go back 3-5 years as needed to capture revenues or accept that the transition will be less than ideal.
  6. A higher marginal capital gains tax will encourage individuals to hold their assets longer, hoping to escape any taxes at their death. Yes, without reform to the death basis step-up option, the positive impact will be much less.
  7. Individuals don’t have the liquid assets to pay taxes on the step-up basis at death. Like inheritance taxes, the capital gains tax on the step up in asset basis could be paid across 5-10 years.
  8. Higher capital gains tax rates will reduce total taxes collected. This is the “Laffer Curve” logic. There is certainty a capital gain tax rate that will discourage investment and recognition of capital gains. This proposal is to tax capital gains at the same rate as earned labor income, about 35%. There is no solid evidence that a one-third tax rate discourages anything. 50% is somewhat different.
  9. A higher capital gains tax rate will discourage savings and investment. GDP growth will be reduced by 0.1% annually. Macroeconomic models can allegedly “prove” this. Moving out of the 35% “sweet spot” to 50% might reduce savings and investment and GDP growth. I’m not proposing this. Even the negative impact at 50% would be small compared with the improvement in equity and increased commitment of citizens to a fairer state.
  10. US business investment has declined through time. We need to incentivize savings and investment. US savings and investment do change through time. Many factors drive these changes. Marginal tax rates on capital gains are very minor factors. The US economy has thrived in the last 50 years. It has access to investment because it has proven its ability to deliver for investors.
  11. Federal capital gains taxes reduce state capital gains taxes. OK, states will adapt.
  12. I’m not proposing a widespread “mark to market” approach that requires implicit capital gains to be taxed every year for everyone. I do believe that it is possible for the IRS to define regulations to require very high-income individuals who can afford the accounting support to recognize gains on highly liquid market assets each year.

Summary

The “populist revolt” is driven by individuals who think that they don’t get a “fair shake” from our society, economy and government. One “big ticket” item is the preferential lower tax on capital gains versus earned labor income. It’s not fair. It’s not right. It’s $2,500 per household of unfair subsidy. Democrats should make this a major policy plank. The losers from this change are in the top 10% and especially in the top 1% of earners. Now that Republicans have adopted the “common man” as a major part of their political base, they will be required to respond favorably.

How could changing capital gains taxes raise more revenue? | Brookings

How Does the Capital Gains Tax Work?

The Tax Elasticity of Capital Gains and Revenue-Maximizing Rates – Princeton University – Department of Economics

A New Study Suggests Congress Could Raise Money By Increasing Capital Gains Tax Rates To 47 Percent. But There Is A Catch | Tax Policy Center

R41364.12.pdf

Historical Federal Capital Gains Tax Rates & Collections 1913-2025

FINL-PDF.DOC

The Economic Effects of Proposed Changes to the Tax Treatment of Capital Gains | Baker Institute

The Fascinating Federalism of Capital Gains Taxes – Econlib

Capital Gains and State Damage from Federal Tax Increases | Cato at Liberty Blog

Proportional Representation Voting Systems

Our political systems are broken. The Supreme Court’s decision to make race an unconstitutional factor in determining voting districts will probably reduce racial minority representation significantly as partisan political parties are no longer legally constrained by this limit. State level gerrymandering is proceeding towards 80% to 90% of seats being captured by the larger party whenever possible. Minority representation is greatly reduced or eliminated. Polarization increases. Citizen buy-in decreases.

It may be that the American people have had enough. Some states will adopt independent commissions to draw congressional and state districts.

Another option is proportional representation. Define multi-member districts so that minority group, party and sub-party groups are more likely to be represented closer to their proportion of the vote.

Proportional representation requires important choices about the size of districts (typically 3-8 members is ideal) and the balance between party and candidate importance (a balanced approach is recommended).

Ranked choice voting systems can also be implemented with proportional or our existing single member districts. Ranked choice systems allow voters to express more of their preferences for candidates and parties.

A 1967 federal law requires single member congressional districts. It could be repealed by Congress to allow states to experiment with these options.

Few democracies worldwide still cling to single member/first past the post/winner take all districts. The US has historical experience with alternative member district rules.

Proportional representation is not a panacea. No voting system perfectly translates voter preferences into candidates and their subsequent votes. But proportional representation would help to reduce our polarized 2-party system, reduce the influence of money on elections and help voters to see and feel that their votes matter.

‘Proportional representation’ could reduce polarization in Congress and help more people feel like their voices are being heard

Proportional Representation

Proportional representation, explained

Video: Proportional Representation, Explained | Sightline Institute

Imagine if Congress was elected by Proportional Representation

Proportional Representation Voting Systems  – FairVote

Proportional Representation – Center for Effective Government

Proportional representation – Wikipedia

Update on Proportional Representation | American Academy of Arts and Sciences

Protecting voting rights with proportional representation – FairVote

The best response to the Supreme Court’s Callais ruling: proportional representation

The Best Way to Fix the Supreme Court’s Attack on Voting Rights | The New Republic

Economic Malpractice versus a Super US Economy

Ranked: The World’s Most Valuable Unicorns in 202

As of April, 2026 the US economy has survived 16 months of Trumpian economic malpractice.

  1. Tariffs have cost each family $2,000 annually, acting as a huge tax increase. Suppliers and importers have absorbed less than one-fourth of the increased costs.
  2. Tariffs and surrounding uncertainty have stopped normal business investments, R&D and new hiring.
  3. $34 billion of green energy projects have been cancelled.
  4. Manufacturing employment continues to decline.
  5. Foreign born employment has been flat, after increasing by 4 million during 2022-24 to 31.8 million.
  6. Farm bankruptcies grew by 46% due to retaliatory tariffs, labor shortages and input cost increases.
  7. Mortgage rates have increased by 1% compared to the federal funds rate due to increased inflation, budget deficits and Fed independence concerns. In time, that is an extra $1,500 annually for every home mortgage.
  8. Inflation was trending towards its 2% target. Trump policies have increased it to 3% and rising. This costs the median family budget $1,000 per year.
  9. The DOGE initiatives and government shutdowns have made the federal government much less effective in performing its core functions.
  10. Reduced IRS staffing is forecast to reduce revenue collections by $750 billion per decade.
  11. Higher import tariffs increase input costs to American manufacturers, placing small and medium sized firms at greater risk of bankruptcy.
  12. The US credit rating has been reduced by Moody’s due to the growing budget deficit and uncertainties, adding to the long-run cost of servicing the $39 trillion debt. At a nominal 0.25% premium that adds another $700 per year to the average household’s cost for debt service.
  13. Frozen, reduced and politicized federal R&D threaten future economic advances.
  14. The value of the US dollar has declined by 10%, making imports more expensive and exports more attractive.
  15. The consumer sentiment index has declined from 70 to 50, as low as the depths of the pandemic!
  16. Trump has required coal-fired power plants to operate beyond their planned retirement dates, costing consumers $5 billion per year.
  17. The Iran war costs the country $50 billion.
  18. Weaker relations with others will cost the US $1-3 billion annually in reduced foreign travelers.

Why hasn’t the economy tanked? The Iran war and tariffs may combine to tip the US economy into recession before the end of 2026, but so far it has been very resilient. How is this possible?

Good News: The Business Cycle is Done – Good News

The US Economy Leads the World – Good News

  1. The long-term trends point to dynamic and creative US business and labor sectors compared with other countries.
  2. The US economy has moved from a high fixed cost manufacturing world to a diversified service and knowledge economy, diversifying its economy and risks.
  3. The US economy is more globally competitive and able to use international trade to manage its risks.
  4. The AI revolution has sparked a huge data center and electricity power investment cycle. This is a classic Keynesian investment multiplier-accelerator situation, driving large investments today to support future expected demand.
  5. The US stock market valuation has grown based upon historical growth trends, US competitiveness and the expectation of future business-friendly policies (regulation, competition, taxation, trade).
  6. The wealth effect of the stock market has boosted the K-shaped economy with higher income/wealth families continuing to spend.
  7. The One Big Beautiful Bill is a classic Keynesian economic stimulus from lower effective tax rates. In the short-run, the bond markets have not yet determined that the US has reached the point where it’s deficit spending is unsustainable. It may be close to that limit.
  8. The “exorbitant privilege” of the US dollar as the world’s reserve currency and hedge for economic uncertainty remains in place. This is another “tipping point” situation where at some time China and the EU become reasonable options and US government borrowing rates spike upwards.
  9. The federal reserve bank has cut baseline interest rates from 5.3% to 3.6%, offering borrowers a loose monetary policy, even if Trump calls for even lower rates.
  10. Annual new home construction starts remain at 1.3 million as builders bet that higher housing prices and an 8-year building deficit will have to be filled. Historically they would have reduced their investments.
  11. Employers remember the pain of filling open positions after the pandemic and remain slow to make major job cuts that can be rationalized away.
  12. 3% inflation is “manageable” by producers and consumers, even if it is not at the nominal 2% target.
  13. TACO: Trump has not maintained his headline import tariff levels.
  14. US imports are only 14% of GDP, down from 17% in 2011. Tariff changes have a smaller impact.
  15. US strength in trade negotiations has been confirmed. Other countries have mostly chosen not to implement significant retaliatory tariffs. China is an exception.
  16. Health care job growth has continued as the US population ages and requires greater care funded by employer insurance, Medicare and savings.
  17. The leisure and hospitality industry has added jobs as the pandemic travel rebound continues.
  18. The energy industry investments in wind, solar and transmission continue after a decade of limited investments, despite Trump’s lack of current support.
  19. Trump’s pro-business tax, regulation, enforcement and competition policies provide businesses with opportunities to grow their profits.
  20. The core age labor force participation rate remains at an historically high 84%.
  21. Global oil prices trended down by 25% during 2023-2025. They’re up by two-thirds in the last few months.
  22. Labor force productivity growth has been 3%+ during 2023-2025 after 3 years of no growth in 2020-2022.
  23. The US leads the world in scientific and economic innovation by a wide margin.

List of unicorn startup companies – Wikipedia

Summary

Trump’s policies have cost the typical American family about $5,000 per year on a base of $100,00. They feel this and reflect it in the consumer sentiment surveys.

The US economy is far more diversified, resilient, creative, innovative, responsive than it was historically. It is able to adapt to changing regulations, immigration, regulatory enforcement, tariffs and opportunities. It is well positioned to succeed in the new US and global environment.

Civility “in a Box” (Summarized)

Amazon.com: Taking Civility Out of the Box: The Insanity of Incivility and What Can Be Done About It: 9780578542812: CONDRA, BARBARA: Books

Civility is:

  1. A set of behaviors that recognize differences and build mutual respect.
  2. A tool to deliver productive results through Civil discourse.
  3. Comprised of self-awareness, self-management, social awareness, relationship management, communications, growth and problem-solving skills and behaviors.
  4. A habit.
  5. A choice (intentional).
  6. Based on the universal values of human dignity, respect, acceptance, responsibility, constructiveness, intentionality and public-spiritedness.
  7. A moral system but not a replacement for religious, philosophical or political systems.
  8. Viral; a virtuous/vicious cycle.
  9. Nonpartisan.
  10. Ecumenical.
  11. Teachable.
  12. A blend of thinking, feeling and doing.
  13. A social norm.
  14. Consistent with human nature.
  15. Actionable.
  16. An aspirational ideal, never fully achieved.
  17. A builder of trust, community, common good and institutions.
  18. A self-maintaining social system.
  19. Supported by world religions and secular humanism.
  20. Informed by modern social science.
  21. Practiced in personal, work, play, church, sports, media, union, culture, service, government and political environments.
  22. Required for democracy.
  23. Inspired by self-interest, situations, personality, identity, civic duty, patriotic duty, cultural duty, religious duty and philosophical duty.
  24. NOT too simple, complex, moderate, extreme, soft, hard, liberal or conservative.
  25. A solution to our challenges of political polarization, selfish media, radical individualism, limits of human nature, skepticism, our secular age, imperfect myths and insecurity.

Basis for the Civility Values

Basis for Selecting the 7 Civility Values

Context

Civility is based upon 7 values: human dignity, respect, acceptance, responsibility, constructiveness, intentionality and public-spiritedness.  These values have been identified as the foundation of Civility because they work together with the 7 Civility behaviors to deliver results while recognizing differences and building mutual respect through civil discourse.

Deliver Results

  1. The values strongly drive the 7 sets of behaviors.
  2. The values and behaviors produce the desired results.
  3. Society is more productive.
  4. Civility behaviors become habits, valuable assets.
  5. People are engaged, their capabilities employed.
  6. Creative and cooperative solutions are generated.

Build Relations

  • Build communications skills.
  • Provides a safe environment which encourages interactions.
  • Creates a positive climate and expectations.
  •  Promotes positive expectations and attitudes.
  • Reduces social tensions and anxiety.
  • Promotes trust in people, groups and institutions.
  • Builds a sense of teamwork, community and common purpose.

Adequate

  • Addresses real differences of experiences, interests, power and views.

Sustainable

  1. Encourages consideration of long-term consequences.
  2. Emphasizes the nature of repeated conversations and negotiations.
  3. Inserts the common good as a meaningful objective and factor to consider.
  4. Invests in the process.
  5. Supports the needs of all participants.

Reduce Costs

  • Minimizes lost participation, ideas, solutions, compromises.
  • Reduces overall communications, legal and transaction costs.
  • Discourages destructive discourse, threats and behaviors.
  • Avoid and resolve conflicts.

Broadly Supported

  • Historically used by many cultures and traditions.
  • Consistent with lists of common moral values.
  • Commonly described by popular and academic writers.
  • Generally supported by the average person.
  • Nonpartisan.
  • Ecumenical, not promoting one religion or denomination.

Broadly Applied

  • Values and behaviors in family, neighborhood, work, play, church and civic situations.

Support Democracy

  • Provide moral/community basis for political participation, engagement, voting, funding, service, and legal compliance.

Actionable

  • Mutually consistent, supportive, connected values and behaviors.
  • Limited set of values with clear definitions and complementary taboos.
  • Consistent with human nature, even if requiring education and moral effort.
  • Values and behaviors can be taught, practiced and improved.
  • Consistent with the findings of modern social sciences.

Powerful

  • Values are deeply felt, motivating their adoption, cultivation and application.
  • Consistent with the virtuous cycle of reinforcement through social interactions.
  • Intuitive definition and connection with practical and moral life.
  • Connected with the religious and philosophical vertical dimension of life.
  • Capable of being supported as a social norm.

7 Civility Values – Good News

The 7 Civility Values are Supported by World Religions – Good News

Christianity Supports the 7 Civility Values – Good News

Civility is Really About 7 Behaviors – Good News

Civility: I Will Survive

Sagrada Familia, Barcelona.

Civility faces many challenges to survive and thrive. It possesses many advantages.

Conceptually

They say I’m a dreamer, but I’m not the only one.
The umbrella terms liberal and conservative are inadequate to political dimensions and individuals.
Despite DEI politics, most Americans support diversity, equal opportunity and acceptance.
Thought leaders realize there is no alternative to Civility for a modern society to function.
We define “certainty” for science and religion. We have post-Newton insights in the last 100 years.
We understand “victim” language. We can help ourselves and our friends to reject this burden.

Logically

Civility encourages us to accurately diagnose the current situation.
Despite political extremism, instrumental logic and facts rule the scientific and business worlds.
Civility is designed to be nonpartisan, allowing political parties to embrace this approach to effectiveness.
The 7 Civility values are equally attractive to liberals and conservatives.
Civility is able to promote public-spiritedness without leaning left.

Morally

The Civility behaviors are mostly consistent with human nature. The rest can be taught.
In a time of advanced technologies and artificial intelligence, focusing first on human dignity is wise.
While Civility focuses on behaviors and a few values, it can be driven by more emotional values.
We better understand the benefits and limits of tolerance and its role as a social value.
Most people see the costs of extreme individualism to themselves, family, neighbors and coworkers.
By highlighting the habit of skepticism, we can greatly reduce its poisonous impact.

Progressively

The track record of modern society solving problems is very strong.
Our world has an increasing experience base of finding both/and descriptions and solutions.
We do have a long track record of reducing our perceptions of “the other” as a threat.
We have more experience outsourcing government functions to reduce the sense of intrusion.
The change is based on incremental improvements rather than heroic efforts and projects.
Modern communications capabilities can effectively promote moderate, complex, less emotional positions.
As Robert Putnam documents in The Upswing, we have revised our social institutions before.

Powerfully

Civility is supported by a super majority of independents, Republicans and Democrats.
Corporations need Civility to operate complex organizations. They will recruit, train and reward Civility.
Civility embraces a wide diversity or political and religious beliefs.
Civility is supported by many churches, businesses, professions, universities and governments.
Leaders of Europe’s more secular democracies strongly embrace Civility.
There is no fundamental opposition to Civility by China’s leaders.
Civility is strongly supported by the major religions.
The 7 Civility values are supported by all major religions and philosophies.
Unquestioned religion or scientism are dead. Better insights and communication are possible.
The Catholic church can strongly support Civility.
Protestant churches can support Civility without overemphasizing “social justice”.

Politically

Societies have always had political differences. Our differences are no greater than in history.
In the American 2-party system, the center normally has extra political weight.
Political parties, groupings, ideologies and polarization naturally change through time.
We have 50 years of post-60’s social policy debates. We know that we will always disagree on some things.
The diversity of states allows the benefits of federalism to accrue with better policies emerging.
The reliance of the classical liberal political model on shared values is better recognized.
The unintended consequences of politically extreme policies become obvious in time.

The impossibility of extreme political parties/factions delivering on their promises becomes apparent.
Ironically, liberals have become “cultural conservatives”, promoting a 250-year-old approach.
Liberals increasingly see the value of allowing states to determine social and economic policies.
Some liberals see that 100% enforcement of social policies drives strong opposition for little benefit.
Broadly defined insecurity has become a political priority that will generate nonpartisan solutions.

Educationally


Modern cognitive science, counselling and organizational behavior are highly effective.
By defining Civility as a set of behaviors, we make it teachable, actionable and leverageable.

The Civility lessons are straightforward, allowing many to lead workshops.
Solid Civility lesson plans can be developed in many places and used everywhere.
We can fine-tune and package hundreds of Civility training exercises to serve everyone.
Organizations and individuals can rely upon counselling, groups and training.
We can greatly improve our school curriculums to teach Civility as a solution to real differences.
Civility is practiced and improved in all arenas of life. Improvements are leveraged.

Virally

In a highly specialized world, there are more opportunities to apply Civility “win-win” principles.
Civility is not an “all or nothing” set of behaviors. Incremental progress is normal.
The more challenging Civility behaviors can be practiced in safer, local environments.
Local expectations of Civility allow all individuals to apply and grow these behaviors.
Civility can be practiced in any environment without permission from anyone.
Civility skills, values, beliefs can be developed and applied without any approvals.
The virtuous cycle of Civility applies at levels. Good behavior or feedback drives more good behavior.
The practice of Civility generates “positive externalities” for others. The state should support it.
The practice of Civility provides a role model for others to emulate.
Social norms are very powerful. Most people learn them implicitly.
Civility behaviors can become habits which then apply without thought or effort.

Beneficially

Every person can serve as a Civility ambassador, champion or “civiliteer”.
High-level Civility skills are personally and professionally highly valuable.
The Civility emphasis on self-awareness and values clarification can improve quality of life.
Humans have much in common and can learn this.
Americans have much in common.
We understand “human nature” deeply, so can adjust to leverage strengths and patch weaknesses.
Americans are proud of their political system and will invest in Civility to preserve it.
Civility’s focus on human dignity supports the modern high importance of personal identity.
As individuals seek validation of their identities, Civility can help to facilitate good conversations.
Our greatly improved understanding of behavioral economics provides new policy opportunities.

Summary

The modern approach to improving and installing Civility as a major social norm is audacious, yet it has great support.

Culture Shock of the Sixties

Jimi Hendrix 1968 Explosion Martin Sharp Concert Poster Reprint Wall Art | eBay

The 1960s are considered a massive cultural shock because they marked a rapid, comprehensive rejection of traditional 1950s social norms, fueled by a booming youth population, the Vietnam War, and mass media. It shattered established authority in politics, race relations, gender roles, and lifestyle, shifting Western society toward personal liberation. Google AI – April 6, 2026

Key Factors Behind the 1960s Cultural Shift:

  • Counterculture and Lifestyle: A youth-driven movement rejected conventional morality, embracing “free love,” casual sex, drug use, communal living, and distinct fashion changes like the miniskirt and long hair.
  • Civil Rights and Equality: The struggle for racial equality transformed society, punctuated by the Civil Rights Act of 1964
    and Voting Rights Act of 1965, alongside the rise of second-wave feminism.
  • The Vietnam War and Anti-War Protests: The war, amplified by television, created a “credibility gap” between government claims and reality, sparking intense youth protest and mistrust of authority.
  • Technological and Social Changes: The proliferation of television created a unified media experience, while the advent of “the Pill” significantly altered sexual norms and gender dynamics.
  • Musical and Artistic Explosion: Music, particularly rock and folk, became a vessel for social critique and the unification of a new generation (e.g., Woodstock).
  • A “Bridge” Decade: The 1960s acted as a transition from the conservative, black-and-white media era to the more permissive, colorful “modern” world, with technological advancements like early satellite communication and computers.

This period is unique because it forced a shift from traditional institutional authority (church, family, state) to personal authenticity, empathy, and moral sensitivity.

[1] https://www.nypl.org/blog/2011/11/15/sixties-era-pop-cultural-revolution-america

[2] https://www.britannica.com/topic/1960s-counterculture

[3] https://frompovertytoprogress.substack.com/p/conscience-without-god-the-cultural

[4] https://www.rbf.org/about/our-history/timeline/1960s-tradition-and-tumult

[5] https://www.youtube.com/watch?v=Xw9kTR4ribo

[6] https://en.wikipedia.org/wiki/Counterculture_of_the_1960s

[7] https://issuesinperspective.com/2018/06/how-the-1960s-transformed-american-civilization/

[8] https://www.reddit.com/r/decadeology/comments/1ntagh6/the_1960s_is_the_decade_that_best_represents_the/

[9] https://www.quora.com/Why-did-American-society-experience-so-much-turmoil-in-the-1960s

[10] https://www.gilderlehrman.org/history-resources/essays/sixties

1960s: Counterculture and Civil Rights Movement | HISTORY

How The 1960s Transformed American Civilization – Issues In Perspective

The 1960s, The Decade that Shook Britain

10 Major Social Changes in the 50 Years Since Woodstock

The 1960s: A Decade of Revolution