Michael Lind wrote an article at Slate accusing the South of waging an economic civil war against the North and calling for another reconstruction of the South. I have been meaning to comment on this article for some time but have only recently found the time.
First of all, it should be noted that Mr. Lind has made attacking the South and Southern culture his professional calling card. A reoccurring theme in his work is the threat the South posses to the rest of America. Consequently, one should consider the source when reading this article.
With the predatory warning out of the way, let me also say that one could write a book debunking the encyclopedic volume of economic fallacies, hyperbolic silliness, and faulty reasoning on display in Mr. Lind’s article. For instance, Mr. Lind states that:
“Today the division is no longer between slave and free states, or agrarian and industrial states, but between two models of industrial society — the Northern model, based on adequate public service funding and taxation and unionization, and the Southern model, based on low-tax, low-service government and low-wage, non-unionized, easily exploited labor.â€
Let’s leave aside the debate on whether “adequate public service funding†or “bloated bureaucracy†is the appropriate term and focus on the underlying premise of this statement. Mr. Lind seems to think that high taxation, bureaucracy, and union domination of labor is a recipe for economic success. If that were the case then he and his fellow blue state liberals would have little to fear from the South and there would be no need for him to offer up such a contradictory argument for increased Federal assistance. Mr. Lind unwittingly concedes that his system can’t succeed on its own in a free market system. Instead of seeking ways to improve Northern industry he has to argue for the destruction of the South’s competitive advantage.
Lind’s retreat from reason is spectacularly on display with this little gem:
“If the industrial North and the industrial South compete for global capital investment, then the industrial South is likely to prevail, because Northern advantages in the form of a skilled workforce and superior public services are unlikely to overcome the South’s advantages of low wages and low taxes and state and local tax subsidies.â€
If the North has an advantage in skilled workers benefiting from superior public services than why aren’t they more productive? If they are the recipients of better pay and services shouldn’t they be able to produce more? The disparity between the big three and their Japanese rivals regarding labor costs and productivity has been obvious for awhile (as this June 13th Washington Times Article points out). The Japanese cars produced in the South also happen to be superior products.
The real problem with Mr. Lind’s article is the awful conclusion he comes to. When Lind states that we need to replace state power over services and economic policy with a federal tax revenue sharing program and total federal control over all state economic activity he is arguing for the destruction of our Constitutional form of government. Instead of the federal system enshrined in our Constitution where the states retain the power to direct the bulk of their domestic activities Lind would set up a single government leviathan controlling everything. Mr. Lind wants to replace the diversity of our federal system of government with a one size fits all system with no room for individual state innovation.