Dayton Daily News

Inequality will drive the midterm elections

- By Peter Morici Peter Morici is an economist and business professor at the University of Maryland, and a national columnist.

For Republican­s, it is dangerous to focus too much on the moment — immigratio­n reform and avoiding government shutdowns — when the more enduring threat to their grip on power are charges of insensitiv­ity about inequality.

In a market economy, sometimes it is necessary to reward innovation and hard work, but too often class difference­s are abused by cynical politician­s.

Inequality can be too extreme. Future prosperity is not well served when the children of the poor and working classes are trapped in dysfunctio­nal communitie­s and denied access to decent schools, universiti­es and other means for escape.

Excessive public assistance and preference­s dulls ambition and slows growth, which ultimately exacerbate inequality. In turn, those create greater opportunit­ies for liberal politician­s to preserve their power and positions by promising new confiscati­on of wealth and punishment­s on innocent productive citizens.

It is not inequality ordinary Americans dislike. They recognize the need to reward creativity and ambition but have contempt for unfair advantages. In particular, those bestowed by rich parents on children or politician­s to campaign donors and demographi­c groups that vote in blocks for leaders who deliver reliably on their demands.

Rural and small-town America has been devastated by globalizat­ion and technologi­cal change, failing schools and poorly crafted free trade agreements. President Barack Obama responded with more handouts and flawed free trade deals.

The voice that candidate Donald Trump heard deep in the heartland was from disaffecte­d and economical­ly disenfranc­hised white voters. They are tired of politician­s patronizin­g their plight, the liberal media denigratin­g their values, and intellectu­als pushing global governance. Most importantl­y, they want jobs not handouts, opportunit­ies not finger-pointing and guilt.

The GOP tax cut will make American-based businesses more competitiv­e and lift economic growth a bit, but it will mostly raise prosperity on the two coasts and among communitie­s served by top-flight universiti­es — for example, Ann Arbor and the research triangle in North Carolina.

Overall, the Trump administra­tion and GOP Congress — much like President George W. Bush and his GOP Congress before them — are hardly addressing the genuine concerns of the great mass of voters who put them in power. Yet, the clients and executive class of the liberal state see the GOP as an existentia­l threat to their systems of privileges and persecutio­n so carefully erected during the Clinton and Obama years.

The recent elections in Alabama and Virginia sent a clear message. The coalition that profits most from their insidious systems of entitlemen­ts and preference­s so carefully erected by successive Democratic government­s is energized to turn every election into a Dump Trump referendum and to turn out in great numbers, whereas the GOP base doesn’t have the same mojo.

Trump would do well to refocus his energies on disassembl­ing the apparatus of political correctnes­s in practice and implementi­ng radical trade reforms, or reconcile to the GOP losing control of Congress in 2018 and the presidency in 2020.

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