The Roosevelt Institute | Campus Network's Rethinking Communities initiative is emblematic of the model for democratic and economic reform needed in this New Gilded Age.
As the latest Census report highlights, economic inequality continues to worsen. With a sluggish economic recovery, continued economic insecurity for many Americans, and ongoing political gridlock, it is increasingly clear that we live in a New Gilded Age. To successfully challenge this status quo, we must look to the lessons of past democratic reform movements as well as the innovative work that is being done on the ground even now in our communities.
Over a hundred years ago, the first Gilded Age witnessed a similar confluence of economic and political crises. It was the era of the rise of mega-corporations and trusts like Standard Oil. Not coincidentally, it was also an era of economic upheaval, recurring financial crises, and a growing anxiety about the ways in which economic inequality and concentrated private power would contaminate and corrupt politics, making it serve special and elite interests rather than the public good.
These crises provoked what became some of the most transformative reform movements in American history: the labor movement, the anti-trust movement, the Populist movement, and the Progressive movement. The common thread throughout these reform efforts was the desire to reclaim some form of popular sovereignty, whether through the creation of local-level policymaking powers for municipalities, the direct election of senators, the creation of national regulatory bodies to check corporate power, or the spread of direct democratic referenda procedures.
The ferment of these decades created the intellectual inheritance of the New Deal. When FDR came into office in the midst of the Great Depression, the members of his administration turned to policies initially pioneered by their Populist and Progressive precursors, especially when it came to banking, financial, and social safety net reforms.
But where the New Deal had decades of Populist and Progressive experimentation to build on, our current context is quite different. The present moment is similar to the early twentieth century in that our fundamental problem is one of dysfunctional democracy. To address economic inequality, we must first reform our democracy to make it more accountable and responsive. But this is not so easily done now that decades of political attacks have dismantled both the public’s faith in and the actual efficacy of democratic governance and the social safety net. The challenge of our generation is three-fold: address our ongoing economic crisis, rebuild the viability of and faith in democratic governance, and do so in a way that develops innovative models of democratic economic policymaking that we can spread and build on.
Cities represent a key frontline in this effort. There is a growing interest in the city as a unit of governance, and cities are unique economic engines whose population density and diversity make them critical drivers of innovation and economic growth. They are at the forefront of economic and policy innovation. They also represent one of the best hopes for reviving a genuine, grassroots democracy. Already participatory budgeting is starting to gain traction in U.S. cities as a way to create more robust grassroots participation while also improving the allocation of resources to underserved groups.
The Roosevelt Institute | Campus Network’s Rethinking Communities initiative represents an exciting effort to drive this movement forward. By focusing on their own universities, Campus Network chapters can help reinvest in their local communities by pressing administrations to direct their investment or procurement policies to local businesses, or by broadening access to universities and community colleges by accepting public assistance, such as food stamps, on campus.
There are two particularly innovative dimensions to the Rethinking Communities initiative:
First, it represents a grassroots, democratic effort. The initiative itself was devised through a participatory strategy process within the Campus Network, through a series of bottom-up meetings and discussions in campus chapters and through a nation-wide convening at the FDR Library in Hyde Park. Campus Network chapters working with local stakeholders in their advocacy efforts further accentuate this democratic ethos.
Second, the initiative also reflects a growing push in economic development circles to reorient local economic development in a more community-oriented direction.
One conventional view of local economic development is that it is a competitive process in which the city is a product to be sold on the international marketplace. Residents and businesses alike, in this view, will choose to settle in the city that offers their preferred “bundle” of goods, services, opportunities, and tax policies. But this view tends to overstate both the degree of policy flexibility that cities have to tailor their “pitch” to outsiders, as well as the degree to which a city’s lifeblood depends purely on attracting an influx of outside dollars, talent, and investment. An opposing view is that local economic development is fundamentally parochial and redistributive, and its purpose is to meet the needs of the residents and businesses that are already part of the fabric of the city. This view has its own limits, underemphasizing the ways in which a locality’s prosperity and well-being are interrelated with regional and even global trends and flows.
More recently, however, a third view of economic development has emerged, which combines aspects of these two accounts. As Richard Schragger argues, we should view cities not as products to be sold on a competitive marketplace, nor as purely closed systems in which to pursue redistributive policies, but rather as path-dependent processes. In other words, cities evolve dynamically, through an interplay between already-existing local conditions and inheritances, and regional or global forces. The task of economic development policy, then, is to find a way to tap into the rooted, existing features of a city, and leverage those local resources.
Anchor institutions like universities are the quintessential lever for economic development in this process-oriented view. These institutions are fundamentally rooted in their communities; they cannot simply leave town the way other kinds of businesses can. They also have large ripple effects on their local communities based on who they hire, who they contract with, and how they employ their own resources. Anchor institutions thus represent valuable engines for local economic development—engines that, if redirected strategically, can help lift up the larger communities in which they are based.
These two features of Rethinking Communities – its democratic and participatory origins, and its focus on leveraging anchor institutions to accelerate local economic development – make it one of many contemporary heirs to the kind of innovation that came out of the first Gilded Age. Now, as then, there is an effort to take a more purposeful and directed approach to economic policy to help create the conditions for collective well-being. Now, as then, there is a desire to approach this task in a self-consciously democratic and participatory manner. And now, as then, it is likely that the lessons learned from (and the activists inspired by) this effort can contribute to a longer-term and larger movement for democratic and economic reform – which is precisely what we need to navigate our way out of the challenges of this New Gilded Age.
Sabeel Rahman is a Fellow at the Roosevelt Institute.