We address this troubling anecdote at length here, but it seems clear that President Clinton is characterizing populism -- and the majority's will -- as violent, irrational, and insatiable. It's reasonable to ask whether that viewpoint is shared by the Democratic Party's presumptive presidential nominee.
President Clinton also addressed income inequality this week. Discussing the fact that it worsened while he was president, he said:
"You can say, 'Well, inequality has still increased,' because the top 1 percent did better, but I don't think there's much you could do about that unless you want to start jailing people."
It is hard to know whether the former president is being disingenuous, or whether he is genuinely unaware of the enormous bodies of economic research which outline precisely what can be done about inequality -- and how important it is to address the problem before it is too late.
The remark about "jailing people,"[3] especially coming on the heels of the Geithner quote, suggests that Bill Clinton sees a Manichaean divide between the interests of the struggling many and the interests of the privileged few. He characterizes the economic needs and wishes of the majority as harsh, vengeful, and irrational.
These comments suggest that Bill Clinton perceives a state of war between two classes -- and that he's chosen his side.
Out of the Closet
The simple answer to the question "How do we address inequality?" is, as Bill Clinton should know, "by undoing the policy choices which accelerated it." Some of those choices -- whether in deregulation, taxation, or other policy areas -- were made during the Clinton administration. (Others came later, like the Bush tax cuts and the Obama administration's refusal to criminally prosecute bankers.)
In a more reasonable moment, Clinton suggested treating financial derivatives the way we used to handle agricultural derivatives, by restricting their purchase to people whose interests are directly affected. That would limit systemic risk and would make them a form of insurance. (Clinton did not suggest that they be subject to the same kind of oversight and reserving requirements as insurance, which would also be necessary.)
But such moments were few and far between. The real agenda seemed to be defending his record and paving the way for Hillary's candidacy, while at the same time gently pushing his pro-wealth agenda.
"Everybody acts like I sat in a closet and said, 'What can I do for Wall Street today?'" Clinton complained. But nobody thought he acted in a closet. His administration's pro-Wall Street moves were made in public, in plain sight. In the go-go nineties, a lot of people even thought they might work. Today we know better -- or should.
The populist view of President Clinton doesn't need to be as black-and-white or as harsh as the view he seems to have of populism. He is emotionally complex, like any of us. It's possible to sincerely believe that what is in your own best interest and that of the people around you is also best for the country.
That seems to be what Bill Clinton believes.
Party of ideas?
What about Hillary? As Bill fulminates and opines, she remains silent on the urgent economic issues of the day.
It is certainly easy to understand why a potential candidate would prefer that approach. Obama's winning 2008 strategy was to become a blank slate on which every voter could project their dreams and wishes. It's the candidate as hologram: what you see depends on where you stand.
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