Class Matters: The Not So Hidden Theme of the State of the Union

President Barack Obama delivers the State of the Union address in the House Chamber at the U.S. Capitol in Washington, D.C., Feb. 12, 2013. © Chuck Kennedy | WhiteHouse.gov

I anticipated the State of the Union Address, more or less, correctly, though I underestimated Obama’s forthrightness. He entered softly, calling for bi-partisanship, but he followed up with a pretty big stick, strongly arguing for his agenda, including, most spectacularly, the matter of class and class conflict, daring the Republicans to dissent, ending the speech on a high emotional note on gun violence and the need to have a vote on legislation addressing the problem. Before the speech, I wondered how President Obama would balance assertion of his program with reaching out to Republicans. This was an assertive speech.

The script was elegantly crafted, as usual, and beautifully performed, as well. He embodied his authority, with focused political purpose aimed at the middle class. This got me thinking. As a sociologist, I find public middle class talk confusing, though over the years I have worked to understand the politics. I think last night it became clear, both the politics and the sociology.

Obama is seeking to sustain his new governing coalition, with the Democratic majority in the Senate, and the bi-partisan coalition in the House, although he is working to form the coalition more aggressively than I had expected. He is addressing the House through “the people,” with their middle class identities, aspirations and fears.

In my last post, I observed and then suggested:

“Obama’s recent legislative victories included Republican votes on the fiscal cliff and the debt ceiling. I believe he will talk about the economy in such a way that he strengthens his capacity to draw upon this new governing coalition. He will do it in the name of the middle class and those aspiring to be in the middle class. This is the formulation of Obama for ordinary folk, the popular classes, the great bulk of the demos, the people. In this speech and in others, they are the subjects of change, echoing Lincoln’s Gettysburg Address: government of the middle . . .

Read more: Class Matters: The Not So Hidden Theme of the State of the Union

The Fiscal Cliff: American Follies Seen from Abroad

The Fiscal Cliff © Dave Granlund | flickr

The American president has signed the bill drafted by Democratic and Republican leaders, which allows the United States to avoid “fiscal cliff.” The solution adopted by the Congress does not, however, solve the problem, but only touches some of its elements and postpones dealing with the others for a few weeks. So who won in this dramatic battle, fought late into the first night of the New Year? Choosing the winner depends on one’s point of view, but no matter the viewpoint we take, one thing seems to be certain – the national interest has lost.

Regardless of who we consider to be the main wrongdoer, it is difficult to identify a clear winner. Obama’s spin doctors are striving to present the agreement as a triumph of the administration, since it succeeded in making many Republicans vote in favor of tax increase for the first time in 20 years. For the richest Americans, with annual revenues of more than $ 400,000, the tax rate will rise from 35 percent to 39.6 percent, i.e. to the rates existing under Bill Clinton before George Bush’s cuts. The problem is that President Obama wanted to set up a new tax threshold at $ 250,000 of annual income. That’s a significant difference. The White House hoped the tax increase would bring $ 1.5 trillion over the next decade, but according to the current arrangements the federal government will receive a modest 600 billion. Given the scale of the U.S. debt, it’s not much, and what’s more, this money will only contribute to the U.S. budget, if all the citizens who should pay more actually do. But will they?

The main problem with taxing the rich is that while these are the people who have the most money to share, they also have the most money to find ways to avoid sharing. When a few months ago Mitt Romney (remember him?) revealed his 2011 tax return, it turned out he paid tax rate of 14 percent instead of 35 percent or, to put it in dollars, 1.9 million instead of 4.8 million. If every American . . .

Read more: The Fiscal Cliff: American Follies Seen from Abroad