Europe's Austerity Backlash: History Repeats Itself

Jun 11, 2013Mariam Tabatadze

Austerity's failure in Europe was easy to predict, even if politicians and economists didn't see it coming.

Austerity's failure in Europe was easy to predict, even if politicians and economists didn't see it coming.

A few weeks ago we saw an interesting debate unfold in Europe: European Commission President José Manuel Barroso said that austerity in Europe had reached its limit, and a few days later, the German Finance Minister Wolfgang Schaeuble responded, “somebody should tell Barroso” that strict budget rules are not the main issue in the eurozone. Though some politicians are stubbornly refusing to admit that the default policy in Europe for the past three years has been a devastating force, most policymakers and influential leaders are already changing their tunes. The most salient example of this is the IMF, whose Managing Director, Christine Lagarde, has been toning down her austerity recommendations and calling for more gradual reforms. Most recently, she supported the Spanish government’s decision to ease austerity policies and focus on decreasing the alarmingly high unemployment rate (especially among young people, for whom it reaches over 50 percent).

The fact that European leaders are seeing the light of day and turning their backs on austerity is a welcomed development. Perhaps the eurozone has a chance to grow now that governments have stopped purposely crippling themselves. But why was austerity the default policy, and why weren’t its devastating effects foreseen? Since 2010, various European nations have been following the policy prescriptions of right-wing economic thought, and the reality illustrates a strikingly different result than what was expected. Greece’s debt-to-GDP ratio rose from 144.6 percent in 2010 to 170.7 percent in 2012. Austerity, which set out to restore confidence, help economies flourish, and most importantly, reduce debt, has failed to accomplish all of the above so far. In fact, the eurozone as a whole contracted for the first time ever in 2012, two years after austerity policies were implemented.

Ideologically, austerity policies come from a familiar place – most individuals are intuitively aware that one should spend less than one earns. Furthermore, one does not cure sickness with more sickness, and it is simple to make the argument that debt cannot be cured by more debt. While it is true that fiscal responsibility is important, there are other aspects of austerity worth considering.

First, spending cuts often affect the layers of society that are most vulnerable, because they were already more dependent on government support. Impoverishing the poor and lower middle class is not synonymous with promoting entrepreneurship and dynamism of the private sector. The lower layers of society end up suffering and bearing the burden of an economic crisis caused by members of the upper levels of society, whether they are bankers or politicians.

Second, it makes no sense to cut spending across the board on an entire interconnected continent. Austerity is supposed to restore competitiveness and promote exports through efforts like reducing domestic wages, but who will spend the necessary funds to consume those exports if every country is cutting budgets and focusing on saving? It seems common sense that not all nations within the eurozone can run surpluses; it is equally obvious that not all countries can be export-led, the way Germany is.

Third, and most important, is the glaring problem in the set of assumptions behind austerity. The first is human rationality. According to this line of thought, economic stimulus will provide a net effect of zero because consumers are smart enough to factor rising government debt into their calculations and therefore will save today in order to prepare for rising taxes in the future. On the other hand, spending cuts signal to these (largely imagined) rational, calculating economic actors that their income will be higher in the future due to lowered taxes and lowered debt. Thus, they will be more comfortable spending in the present, and voila, demand has been boosted. Except, there is one problem: Homo economicus has very little in common with Homo sapiens, in that actual living humans are not rational and not nearly as farsighted as most economists would like you to believe. If, in the midst of an economic crisis and austerity policies, your neighbor gets fired and your newly graduated son is having a hard time finding a job, you are not likely to spend more money now because you anticipate your taxes being lower one day.

Despite overwhelming evidence, politicians and economists alike are still convinced that austerity works. Historical examples like the austerity policies put in place before Roosevelt’s famous New Deal leave little doubt that “expansionary contraction” is not beneficial during economic downturns. Even so-called austerity success stories with supposed applicability to the eurozone have been called into question: Australia and Denmark, regarded as model austerity countries, fell into crises after two years of implementing austerity policies. The only real success stories of reductions in debt have not been during downturns, but during periods of economic growth. The United States, for example, succeeded in reducing the deficit significantly under Bill Clinton, and Sweden reduced its fiscal deficit from 1994-1998 during a period of rapid GDP growth.

The bottom line is simple: none of what is going on in Europe after adopting austerity policies should be a surprise. It is just inexplicable that we have to keep reinventing the wheel and rediscovering the adverse effects of austerity in a struggle to recover from a crisis. Why can’t we tell austerity (in the words of Kelis), “might trick me once, I won’t let you trick me twice”?

Mariam Tabatadze is a a member of the Roosevelt Institute | Campus Network and a recent graduate of Connecticut College with a double major in Economics and International Relations. She is interning at the Institute for New Economic Thinking this summer. Click here to read her full paper on the eurozone crisis.

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Every Day is Student Debt Day for Millennials

Jun 5, 2013Joelle Gamble

Young Americans demand action on the student loan crisis, and they have a plan to solve it.

Young Americans demand action on the student loan crisis, and they have a plan to solve it.

“Work hard. Get good grades. Go to a good school and you will be successful.” Our generation has been told time and again that through hard work and dedication, we will be able to live happy lives, have secure jobs, and start families built on comfortable finances. But on this day of action around student debt, it’s clear we need more than these easy answers to help Millennials cope with the growing burden of education costs.

I come from a middle class family. Both of my parents served in the Marine Corps and got good jobs. My father works in law enforcement, and my mother is a teacher. They taught me that if I put in hard work, I would reap the results. So, I graduated at the top of my class in high school and went to a top (public) university. I worked all four years of college and graduated on time. Two days after graduation I started working at a good job.

By all measures, I did everything “by the book.” I even saved up some money to make early down payments on the student loans that I accrued during school. Over the past four months, I have paid off more than was required by law, and currently I am paying more on the principal than on the interest. One would think that I would be in pretty good shape.

But with $26,000 in debt, only slightly above average, I will still be making these payments for the next decade of my life. They will be as regular as my electric bill and rent. They will be considered before I think about how and when to start my family or buy a house.

I am one of the lucky ones: employed with enough spare cash to make student loan payments. So many other recent college graduates are not in the same position.

Student loan debt is one of the biggest economic and social justice issues this nation faces today. An entire generation of young, educated workers is being saddled with financial burdens that will follow them for the foreseeable future.

Recognizing this, the Roosevelt Institute | Campus Network joined with the United States Student Association to make proactive recommendations for addressing the student loan debt crisis. Our report, A New Deal for Students, offers policies by students and for students, past and present.

In this report, students outline their arguments for a better system for financing higher education. Policy recommendations range from tax incentives for students committed to staying in their home states to raising the federal minimum range to supporting new graduates to teach in rural areas.

What we want is a real debate and, above all else, action by our lawmakers on this critical financial issue affecting millions of young Americans.

Joelle Gamble is the Roosevelt Institute | Campus Network's National Field Strategist.

 

Graduation cap and money image via Shutterstock.com

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How to Pensa 2040: Italy's Millennials Share Their Blueprint for Change

May 13, 2013Alan Smith

An Italian offshoot of the Roosevelt Institute | Campus Network shows that Millennial policy priorities reach across national borders.

An Italian offshoot of the Roosevelt Institute | Campus Network shows that Millennial policy priorities reach across national borders.

In 2010, the Roosevelt Institute | Campus Network created the Blueprint for Millennial America, a generational vision for the country we hoped to see by the year 2040. In the conversations that established the backbone of the blueprint, we identified a core set of values shared by Millennials. The top three -- a deeply held concern for equity, a respect for the individual and society, and a belief in community empowerment and self-determination – represent a commonality that we think underlines what is unique about this generation of Americans. We are a group that seeks self-empowerment and strives to improve our society, but not always through the traditional power structures.

Over the last year, a similar project has been taking root on university campuses and among active Millennials – except this time it’s in Italy, where students have stepped up to take charge of their country’s uncertain future. “Pensa 2040” has taken the values-based collective ethos of the Roosevelt Blueprint and the Budget for Millennial America but introduced an Italian perspective. More than a thousand Italians have participated in conversations similar to those that built the Blueprint, and a Millennial vision for Italy is coming into focus.

If we’ve learned anything at the Campus Network, it’s that ownership of the process is equally as important as ownership of the outcomes. From what we’ve seen so far, the leaders of the Pensa 2040 process have carried on the successes of the Thinks 2040 framework by being willing and able to customize their discussions for the people in the room and the issues that are near and dear to their hearts. Holding discussions that engage people through the fundamental framework of values, and in so doing asks participants to examine which issues they truly believe are the most important, can yield a deeper and more lasting engagement on the issues that the community decides on together. 

So, what happened in Pensa 2040? The top-ranked value listed by the Italian Millennials reveals a clear difference between our two cultures: a deeply held respect for the idea of “legality.” This concept, rooted in Italy’s ongoing problems with the mafia and organized crime, extends to ending tax evasion and corruption within government. The very fact that the idea of legality would be a core value reveals a desire for order that is not at the forefront of many Americans’ minds. Still, some of the outcomes that students hope for in this category include a fair tax system and a more effective and fair legal system – important underpinnings of the Government By and For Millennial America discussion. 

It is in the second and third values expressed by the Italian students that we find a direct match with their American counterparts: equality and respect for the rights of the person. These essentially match word for word the underpinnings of the American Blueprint, and we find kinship with a generation focused on an absolute right to citizenship, same-sex marriages, and “civil service for all” (outcomes under “Uguaglianza”) as well as a right to health and full access to the sorts of “primary goods” that people need to be active and successful citizens (outcomes listed under “Rispetto per i diritti della persona”). There is something here, direct and definable, that speaks to a global generational identity. 

This sympathetic outlook makes sense: there are more and more shared experiences for people across borders and oceans. Not only could we jump on Skype to hear the results of the Pensa 2040 discussions, but many of the core issues facing Millennial Italians are the same issues facing American students in the Campus Network. Global climate change, economic uncertainty, and the challenges of a consistently volatile yet ever-more-interconnected world mean that the experience of being young often establishes a stronger bond than the experience of being “American” or “European.” While the 39 percent youth unemployment rate in Italy dwarfs the 17 percent unemployment rate for American youth, both countries are experiencing talk of a “lost generation,” and anyone trying to get a job out of college right now can tell you that unemployment is only a part of a bitter cocktail that includes low-wage jobs and student debt.  The economic example serves to highlight a greater truth: that a generational movement is real and important. 

Pensa 2040 has moved from the conversation stages to the building of a values-based blueprint for Italy. Students are working with other stakeholders now to write policy recommendations for Italy going forward, and to follow in the footsteps of the Campus Network by creating a crowd-sourced and collaborative budget for Italy that tackles their ongoing economic woes from a place of shared values. We’re excited that Italian students have taken on a part of our brand of collective discussions and are using it to build something equally as empowering and exciting for themselves. Look for a Blueprint for Millenario Italia entro il 2014! 

Alan Smith is the Roosevelt Institute | Campus Network's National Policy and Program Director.

 

"Made in Italy" image via Shutterstock.com

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Millennials Identify Three Keys to Preventing the Next Superstorm Sandy

Apr 22, 2013Preeya Saikia

Current and future leaders convened at Yale to explore a proactive approach to natural disasters.

Current and future leaders convened at Yale to explore a proactive approach to natural disasters.

It’s been six months since Superstorm Sandy devastated the Northeast, but its impact can still be felt. Recently, members of the Roosevelt Institute | Campus Network held a conference at Yale University to consider the policy implications of the disaster. New Haven Congresswoman Rosa DeLauro set the stage for the conference with a keynote reminding us that “disasters test contracts of citizenship.” This notion was embodied in student presentations on ongoing policy work influenced by actions that governmental and non-governmental agencies took to manage the crisis.

A guiding principle behind these student policies and the speaker presentations: planning efforts for a natural disaster are hardly limited to trouble-shooting the problem when it occurs. As future policymakers, we must have thoughtful disaster plans in place, anticipate factors that contribute to the occurrence of natural disasters, and forecast the ramifications of rebuilding an area after a disaster strikes.  

Preparedness

Sandy was an opportunity for citizens to pull together in the face of adversity. This positive outcome aside, we should not lose sight of why community members had to create ad hoc campaigns in the first place: they were filling gaps in formal disaster relief efforts, some of which still haven’t even been identified. Students advocated for increased efficiency in relief plans to help neglected segments of the population, with one calling for an assessment of the role of civilian first responders in order to understand what public agencies can do to organize this manpower going forward.

To take one example, Sandy separated many mental health patients from their caretakers and limited their access to medicine. As one student policy pointed out, well-intentioned individuals tried to fill the void, but they lacked the background to handle these situations. Speaker Mary Casey Lockyer, Manager of Disaster Services for Health Services at the Red Cross, explained that while many Red Cross volunteers are registered nurses who have the training to handle mental health issues, they are also over the age of 50. These well-practiced volunteers faced challenges in moving around during the storm due to their advanced age. Her recommendation is for younger people to volunteer with the Red Cross as apprentices to these professionals so that they can be trained and mobilized in the event of another Sandy-sized disaster.

Another student policy in progress identified the asymmetric level of relief available to low-income Americans compared to their wealthier counterparts. In identifying this gap, public agencies can revise disaster plans to incorporate all Americans. Speaker Robert Smuts, Director of Emergency Management in New Haven, stressed that it is critical for public agencies to anticipate what will go wrong and prepare the right units accordingly. In anticipation of Winter Storm Nemo, which brought 34 inches of snow to New Haven, he prepared snow trucks that also had medical supplies and tools to cut down fallen trees.

Preventative Measures

Natural disasters are not entirely preventable, but there are measures that public agencies can adopt to mitigate the level of damage and the frequency with which they occur. Several student policies made the connection between climate change and natural disasters. One Roosevelter investigated the role of weather forecasting in disaster prevention. In her research, she found that America’s forecasting model lags behind Europe’s. This is a critical technical deficiency, since an advanced computer model could alert us to disasters sooner and allow us to build adequate buffers to mitigate damages and limit human suffering by evacuating people from areas that are likely to be devastated.

Another approach to prevent the effects of climate change is to limit the use of fossil fuels that release greenhouse gas emissions. One student policy looked at using solar power towers to harness the sun’s energy in lieu of fossil fuels.

Rebuilding    

If there is one takeaway from the conference, it is that we need to rebuild devastated areas thoughtfully. Speaker James Rausse, President of the American Planning Association’s New York chapter, enlightened us on the reality of overseeing a rebuilding project in Breezy Point. The storm destroyed several businesses, which had repercussions for the local economy. The challenge of rebuilding Breezy Point lies in deciding what ought to be developed and how to finance the project.

Congresswoman DeLauro addressed the challenge of financing rebuilding efforts through a National Infrastructure Bank. This entity would leverage private investments for public projects. The Concourse Fund, a student-run microfinance institution that began in Fordham University, suggested a stock market model for ideas on rebuilding in order to answer the question of “what ought to be developed.” The exchange would provide public officials with the opportunity to review all rebuilding ideas, as well as the cost and effectiveness of these ideas. This would allow them to make sound decisions and justify those choices to the public based on the market results.

Students also contributed their own ideas on what ought to be built, including a suggestion that we create a national park to serve as a buffer between high sea levels and residential communities in the Lower East Side. This would also allow the community to raise revenue from park entrance fees and events.

In order to answer the questions of “what ought to be developed” and “how to finance projects”, the Concourse Fund introduced the idea of retrofitting buildings with green roofs, which limit the fossil fuels that city buildings use for maintenance. As an added advantage, these green roofs would be financed through small business loans from community banks, which would result in active small businesses that stimulate the local economy.

The conference at Yale was an invaluable experience for all who attended. Several of the student presentations led to collaborative brainstorming sessions, which led to partnerships to develop ongoing policy work. Students also connected with speakers to help them develop their policies. Some of these students have already shown interest in showcasing their projects at the Roosevelt Institute’s annual Policy Expo in Washington, D.C., and submitting their final policies for publication in the next edition of the 10 Ideas journal. The conference was a unique opportunity for students to hear from individuals who are active in the Sandy recovery and rebuilding efforts, and it gave current leaders the chance to hear from future leaders in public service.

Preeya Saikia is the Economic Development Policy Director at The City College of New York's Roosevelt Institute | Campus Network.

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If More Efficient Government is the Goal, Capping Revenues Isn't the Answer

Apr 18, 2013Joelle Gamble

Arbitrarily limiting revenues and cutting critical services doesn't boost efficiency; it just shifts the burden onto citizens.

Arbitrarily limiting revenues and cutting critical services doesn't boost efficiency; it just shifts the burden onto citizens.

The 2013 tax-filing deadline is just a few days behind us, but many Republican members of Congress have already started talking about this year’s revenue intake. Due to CBO projections that federal revenues in 2013 will be the highest in history, Republicans are arguing that the real issue with government is that it has a serious spending problem, and that it is too big and too inefficient to allow for domestic economic prosperity. Predictably, their solution to this problem is to cut taxes and spending. But this approach could actually create more of the inefficiency they claim to oppose.

If we want to build a more efficient government and increase economic prosperity, we should not slash critical government services or restrict revenues across the board. In fact, in a still weak and recovering economy, limiting revenues can heighten inefficiencies in government in a way that exacerbates resource inequalities. We can look to the effects of state property tax caps in Massachusetts and California as local-scale examples of what happens when we try to shrink government just for the sake of shrinking it.

In 1978, at the height of an anti-tax wave, California voters passed proposition 13, a cap on residential and commercial property taxes. Under the new law, increases in tax rates on assessed real property values essentially cannot exceed 2 percent per year. In addition, the law imposed two strict requirements for how new state and local revenues can be raised: State taxes can only be increased either by ballot or with a supermajority vote in both houses of the state legislature, and special-purpose taxes by local governments can only be increased by a supermajority of votes in a local election.

Similarly, Massachusetts’ proposition 2 ½, passed in 1980, limited property tax revenues to 2.5 percent of an area’s assessed property value while also capping growth in revenue from those assessments to 2.5 percent per annum.

Arguments in favor of these initiatives assert that caps on taxes are a needed move to increase government efficiency and to relieve strained families from the economic burden of higher taxes. Essentially the same ideas are permeating the national debate around the federal budget and deficit reduction as deficit hawks claim that government is too big and its spending is too much of a burden on the economy. Recently, as Roosevelt Institute Fellow Mike Konzcal notes, evidence has been growing that this argument is built on shaky ground.

Caps on annual property assessments, which had been a statistically stable source of revenue, forced municipalities to scramble to adjust to the permanent loss of resources, resulting in haphazard cuts and unreliable financial decision-making. Coupled with the movement to give more direct power over taxation to the voters (see CA proposition 218, the Right to Vote on Taxes Act), this state of uncertainty has only calcified – and uncertainty does not breed the efficient government systems that anti-tax advocates have promised.

Furthermore, instead of providing “efficiency savings” to state and local government, reduced revenues have simply shifted the burden of providing services from a stable entity onto the backs of the affected communities. The price of basic government operations doesn’t suddenly get cheaper because there is less revenue. It forces officials to sacrifice important programs to cover basic operational costs, and often the people who relied on those programs are those who can least afford to take the sudden hit. For local low- and middle-income communities in California and Massachusetts, this meant school funding shortages that exist to this day. At the federal level, the mounting effects of sequestration on various services and workers are setting up similar long-term problems.

Everything is amplified in a weak or recovering economy. Direct cuts to services that low- and middle-income communities rely on only exacerbate economic inequality and further hamper future prosperity. Families who already are having difficulty paying bills will be forced to deal with new challenges, from cuts to student aid and Medicaid to being laid off or furloughed.

In setting our fiscal course for the next several years, Congress should take a hard look at the risks taken by the states and avoid caving into the idea that revenue is a necessary evil to be restricted as much as possible. We can agree that our common goal is a smarter, more efficient government; however, cutting revenue streams to force reform is not the smartest, most efficient policy to achieve that goal.

Joelle Gamble is Deputy Field Director of the Roosevelt Institute | Campus Network.

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Disillusioned with Congress? Participatory Budgeting is For You

Mar 27, 2013Emily Apple

Americans are getting fed up with government. It's time to get them directly involved.

It has been nearly a month since the sequester went into effect, yet little is being done to reverse the deep cuts. It is a sad fact that our new normal is the inability to come to a compromise in Washington.

Americans are getting fed up with government. It's time to get them directly involved.

It has been nearly a month since the sequester went into effect, yet little is being done to reverse the deep cuts. It is a sad fact that our new normal is the inability to come to a compromise in Washington.

Washington has failed the American people over and over again, and yet at each manufactured crisis we cross our fingers and hope that things will be different the next time. With such intense gridlock, it's no wonder that Americans have thrown up their hands. According to a 2011 CBS News poll, 80 percent of those surveyed believe that Congress is more interested in serving the needs of special interest groups than the constituents they purport to represent.

So why do Americans simply hope for the best? Why do we not stand up and demand a change? Perhaps it is because the idea of changing the culture of Washington is too daunting, too impossible. But Americans can start building a new system from the ground up that incorporates their voices into the political process.

New York City is entering its second year of a new democratic experiment called participatory budgeting. Participatory budgeting is exactly what it sounds like: the community is given a chunk of public money and gets to vote and decide how this money will be spent to better the community. The project began in four city council districts in 2011 and is expanding to four more in the upcoming cycle. The process engaged participants who had not previously participated in the political process, and many who were disillusioned with politics–two out of three participants felt that our political system needed a major overhaul, compared with one out of three in the general population. People of color also participated at higher rates than in general elections. The process is founded in the belief that community members know best how to help their community and their voices should be valued above all else in the political process.

The result? Over 7,000 citizens selected 27 projects, totaling $5.6 million. These projects included everything from playground improvements in neighborhood housing projects, vehicles for the local “Meals-on-Wheels” program, and new computers for the local public library. These were projects chosen by and developed by district residents. The number of participants and the amount spent might pale in comparison to New York City as a whole, a city of 8.2 million people with an operating budget of over $65 billion, but we still must value the process of citizen engagement and the lessons we can learn from it.

Participatory budgeting echoes the core values identified in the Roosevelt Institute | Campus Network's new blueprint, Government By and For Millennial America. To create the document, conversations were conducted with over 1,000 students across the country. From those conversations, the three chief values that Millennials identified as most important for government are transparency, equality, and fairness. All of these values are embodied in the participatory budgeting process and hopefully can serve as a model for how this country can continue to improve and engage its citizens.

It is naive to think that a such a small scale project will fundamentally change the way we approach democracy overnight. But projects like these sow the seeds of civic participation and greater engagement in the democratic process across the country. Thousands of projects like these can shift the way we approach democracy and maybe make our senators and representatives take notice. Civic engagement won’t completely solve the seemingingly impossible problem of congressional gridlock, but maybe it can be a much needed antidote. In order to improve the state of our democracy, we must invest in new mechanisms, like participatory budgeting, to engage citizens in the democratic process. It is only then that we can truly be a government by the people and for the people.

Emily Apple is a junior at CUNY-Hunter College and member of the Roosevelt Institute | Campus Network.

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For Millennials, Reforming Government Means Reimagining Democracy

Mar 14, 2013Elizabeth StokesAlan Smith

Millennials don't want a government that just talks at them. They want to build it together.

Millennials don't want a government that just talks at them. They want to build it together.

There is a paradox in the Millennial generation’s relationship with government. On the one hand, research shows that we firmly believe government can and should play a role in solving society’s most urgent and complex problems. We’re less interested in big government vs. small government than we are in better government -- making our democratic systems more inclusive and more responsive. On the other hand, despite seeing government as a theoretically important tool, this generation is opting out. We don’t see ourselves reflected in the decision-making process in our governments, in the values undergirding policies, or in the issues being debated by our representatives.

Still, opting out doesn’t mean this generation has checked out. We are engaged politically, just not in the ways and systems that previous generations have engaged. We don’t want to be courted for our votes and then kicked to the curb until the next big election. We want to build systems that meet us where we are, that is, in community-based service projects, where we see things directly change as a result of our voices, ideas, and action. In short, we need complementary systems that create the sort of direct connection not found in our representative democracy. But how?

The process of creating the Roosevelt Institute | Campus Network’s Government By and For Millennial America document suggests a series of answers. Over a period of six months, this student-designed, student-driven, and student-written project engaged more than 1,000 Millennial voices and resulted in a 56-page document. That document in turn framed a network-wide vision for how the Millennial generation wants its government to function. It also produced hundreds more pages of expanded research and writing and a series of conversations on campuses around the country that pushed students to think beyond the constraints of the current political milieu and articulate a blueprint for their ideal government.

This output alone is testimony to the dedication of our students, but how and why did we get their buy in to generate these results? Simply put: the integration and use of participatory democracy. The starting point of this whole project was the creation of democratic spaces that enabled students to collectively deliberate and decide what they thought were the main challenges and opportunities facing the realization of their ideal government. These initial conversations were intentionally stripped of any political jargon and instead focused on values: if you had a blank slate, what values would be embodied in your ideal system? By using values as our foundational building blocks, we made these democratic spaces accessible to anyone, regardless of their experience in policy, and enabled the gradual development of a shared language and understanding of what government can and should be.

Of course, as any political theorist will tell you, participatory democracy is not only about erecting accessible spaces for discussion. It is also about building up the capacities and orientations of citizenship so that those spaces can be effectively used. The vital question then becomes: how do we build such a citizenry? How do we push young people to look beyond their individual wants and needs and think and act in terms of the public? We attempted to answer these questions through political education and the collective exercise of power.

From the beginning, Government By and For Millennial America was an open-ended project. This was both its most exciting and maddening feature: a project with no predetermined outcomes, no predetermined framework, and no predetermined process for making decisions or conducting research beyond what had emerged from student discussions. While this setup had the very real potential for spectacular and rapid implosion, it also allowed students to see that their work was more than simply filling in the spaces on a test. We continuously practiced the collective exercise of power, and in so doing, vested the project with the kind of control that Millennials seek.

This was more than just a logistical challenge of figuring out our own timeline, peer-reviewed editing processes, voting procedures, and so on. Intellectually speaking, it also meant venturing far beyond our individual areas of expertise to learn with and from other students and experts on issues outside our comfort zones, being flexible in how we integrated the regular influx of ideas shaping our ever-evolving body of work, and tying together strands of thought that previously seemed so disparate into the unified framework we were building together.

Imagine, then, the implications of such a project for how we engage in the larger political sphere. There is no reason why this same dual process of building capacity and investing people with real responsibility can’t be expanded to the questions that bedevil local governments or be used to turn around a company that has run afoul of public opinion. Participatory budgeting, for example, gives local politicians a way to get their constituents invested in the budget process in a way that yields real growth, continued participation, and better decision-making.

Of course, this is not to say our process was always rosy – in fact, there were many times when it lagged or stalled. But when schedules freed up, the project was revitalized again: trans-state conference calls to discuss the newest idea, a flood of new interesting and innovative policy write-ups, or a wave of new students eager to be brought into the fold would get us back on track. The power of democracy does not lie in waiting for these sporadic highs, but in the intermediate “lows.” There is something incredibly precious in the messiness of the sometimes slow and arduous back-and-forth that characterizes all experiments in participatory democracy.

We are a team of people with diverse identities and diverse opinions. We were grappling with incredibly tough issues through a medium that demanded collective engagement, deliberation, and decision-making. We learned together, had revelations together, and were able to build a collective lens for how to understand the individual problems plaguing government and the ways in which they were connected. That potential for real change, to be really seen and heard, and to grow so much as an individual in a community -- that is powerful. That is why Government By and For Millennial America should be viewed as more than just a bunch of good ideas in print. It’s also an example of how to engage with a generation that is in danger of being written off as self-interested, but that we believe is looking for a different way forward.

Elizabeth Stokes is a Working Group Fellow for the Roosevelt Institute | Campus Network's national initiative, Government By and For Millennial America, and a senior at the University of Pennsylvania. Alan Smith is the Roosevelt Institute | Campus Network's National Policy and Program Director.

 

Study group image via Shutterstock.com.

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In Sandy's Wake, Millennials Must Take the Lead on Preventing Future Disasters

Mar 1, 2013Melia Ungson

Though Superstorm Sandy is fading from the headlines, we must keep working to help its victims and build a safer future.

Though Superstorm Sandy is fading from the headlines, we must keep working to help its victims and build a safer future.

On October 29, Superstorm Sandy made landfall in New Jersey, leaving damage strewn across the Caribbean in its wake. With a diameter of 820 miles, Sandy was the largest Atlantic tropical storm to date and caused roughly $50 billion in damage, making it the second most costly disaster after Hurricane Katrina. Hospitals were evacuated, the stock exchange was closed for the first time since 1888, levees broke, the New York City subway flooded, power was cut to 8 million homes, and communities were left to cope with property damage and the loss of loved ones. While damage and hardship were widespread, the storm greatly affected the region’s most vulnerable: the poor, the ill, and the elderly.

The storm may be long over, but its effects are still tangible today. To ensure a strong recovery and resilient future, it is essential that people continue to engage, innovate, and take action on issues related to Sandy’s impact and larger implications. As the people who will be grappling with future storms, environmental issues, health impacts, and community vulnerability, Millennials can and must make a considerable contribution in determining how we move forward.

Communities have proven resilient, with businesses, politicians, utility workers, organizations, and residents uniting to help provide relief and begin rebuilding, but there are still many ongoing struggles and lingering questions. In the immediate aftermath of the storm, there were calls to address climate change and outdated infrastructure, but that sense of urgency has largely subsided. Hospitals are coping with the closure of facilities and an overflow of patients. More than 3,500 families in the region still have no home and others no heat, relying on continued support from FEMA. Those whose flooded homes did withstand the storm face the problem of mold, and homeowners along the coast are worried about the increasing cost of flood insurance. President Obama cited Sandy’s disruptions to economic activity as one reason why the economy shrunk in the last quarter of 2012. Clearly, though Sandy has faded from the headlines, many in the Northeast are still feeling its effects.           

Other communities across the country are similarly grappling with the lasting impact of extreme weather events. Hurricane Katrina hit New Orleans just over seven years ago, and while there has been much progress, people are still coping with its effects. Under half of the pre-Katrina bus routes are running in New Orleans, a third of low-income mothers in the city are still suffering from post-traumatic stress symptoms, and many homes remain abandoned or damaged. Even when Sandy hit the Northeast in October, New Jersey and other parts of the region were still recovering from Hurricane Irene, which made landfall in August 2011. Given this recognition that a storm’s impact lasts long after its landfall, it is particularly important that we continue to monitor recovery and develop innovative solutions in Sandy’s aftermath.

Government, in its capacity as a steward of the common good, has a critical role in leading relief efforts and promoting development strategies that will reduce vulnerability. Many elected officials have embraced this role. Recently, New York Governor Andrew Cuomo proposed purchasing homes that were damaged by Sandy, tearing them down, and maintaining the easily flooded areas as undeveloped land, which would serve as a natural buffer to protect coastal communities. While not yet approved, that program, which would pay residents the pre-storm value of their now damaged homes and offer incentives for others in vulnerable areas to sell and relocate, would cost roughly $400 million and involve approximately 10,000 homes in the 100-year flood plain. However, many elected officials have avoided some of the most difficult questions. This past August, North Carolina’s state legislature passed a law that banned the use of the latest data on sea level rise when planning coastal development, leaving residents along the coast without the long-term strategies that could reduce vulnerability to floods, storms, and rising oceans.

Students and other young people are determined to consider these difficult questions and build on innovative policy solutions. As we approach the six-month mark of Superstorm Sandy in April, Millennials around the Northeast are coming together to examine what has been done and is being done to help affected groups and to consider the best ways to protect our communities in the future. With the state of emergency now in the past, we have a measure of distance and perspective that makes it possible to envision strategies for a more resilient future in addition to ongoing recovery efforts. There are serious concerns that warming oceans may provide fuel for increasingly powerful storms, but climate change isn't the only issue that warrants attention. We must also consider how we prepare and build, how we support the most vulnerable members of our communities, and how we can fairly and effectively respond after a disaster. Many community organizations, decision makers, members of the defense community, and businesses have been eager to engage in this discussion and have proposed changes to emergency response and infrastructure. Millennials, many of whom felt Sandy’s impact, are eager to push this conversation and action forward. If we fail to act today, they are the ones who will be affected by and tasked with addressing these challenges in the years to come. 

Melia Ungson is the Roosevelt Institute | Campus Network's Northeast Regional Coordinator.

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Memo to Lawmakers: Young Americans Demand More Health Care, Not Less

Feb 13, 2013Rahul Rekhi

President Obama's SOTU mentioned Medicare, but he still fails to realize that young people are ready for even greater investment in health care.

President Obama's SOTU mentioned Medicare, but he still fails to realize that young people are ready for even greater investment in health care.

Last night, President Obama delivered a State of the Union address that outlined an ambitious second term agenda while touting a steadily recovering economy and asserting the need to strike a budget deal that preserves the generational promise of Medicare. What he did not mention, however, is an underlying but oft-neglected truth: that our national health care debate still neglects the needs, perspectives, and interests of young adults. The State of the Union may be stronger, but for young Americans around the country, its health requires a new prescription. This is perhaps most critical in two key but distinct areas: innovation and mental illness.

Consider, firstly, that the health reform debate—subsumed into the longstanding clashes on the federal debt and deficit—has lately centered on cost cutting. Thus far, such discourse has largely been framed as benefiting young Americans, those who, the argument goes, will bear the brunt of the nation's debt burden in the absence of immediate cuts to the federal healthcare budget. However, from a young person’s perspective, there exists compelling evidence for a converse narrative: public health care as an incubator for innovation. The safety net that health care provides actually emboldens young people to take risks, to try creating the next Facebook or Google, rather than play it safe for fear of being denied care in later years. 

Evidence of the critical role that public health care can play in entrepreneurship and innovation is plentiful in the research literature. For instance, a recent RAND Corporation study observed the prevalence of so-called "entrepreneurship lock": a phenomenon in which prohibitively high costs of obtaining health insurance as individuals preclude workers from leaving large firms that can offer subsidized premiums to strike out on their own. But we can also look across the Atlantic to see the catalytic properties of such social insurance—and the costs of not providing it—in action. For example, Sweden, a nation that possesses a social safety net among the world’s most robust, ranked 2nd globally on the INSEAD’s Global Innovation Index. The US, with comparatively meager public insurance, came in at a distant 10th. Such nations as Norway, Finland, Denmark, and Switzerland–hardly bastions of Randian self-sufficiency—also handily outstripped our own ranking on this measure.

This is not to say that public health care is the only factor that will determine the fates of Googles to come. But this data should prompt us to reformulate our rhetoric around programs like Medicare and Medicaid: not as hammocks, but springboards. We should not be focused on heavy-handed cost-shifting measures that merely limit the scope of coverage, but instead how to thoughtfully modernize the fundamental societal value that these programs provide. It is precisely this values-based approach to national health care financing that young Americans value most greatly, as attested to by thousands of students in the Roosevelt Institute | Campus Network’s recently published Government By and For Millennial America.

Arguably the most significant example of this false dichotomy between cost and value is mental health care. Much has been made of our healthcare system’s dismal performance on health indicators, but in no field does this ring truer than in psychiatric care. Yet what’s often overlooked is that mental healthcare is, above all, a youth problem, afflicting no demographic more than my fellow young Americans—my classmates, colleagues, and friends. Millennials, as a demographic, report rates of depression well above the baseline: almost 9 percent of 20-somethings in America are thought to have developed major depression, panic disorder, or anxiety. The shocking nature of this statistic is only amplified by considering that a full 75 percent of diagnosable, life-long mental health illnesses develop by age 24. Yet an estimated 75-80 percent percent of youth in need of mental health services do not receive any care.

But potential solutions abound, even for such a complex problem. If states are the laboratories of our democracy, mental health has proven no exception. Even while the U.S. lags nationally on mental health—rated a ‘D’ by the National Alliance on Mental Illness—states like Connecticut, Massachusetts, and Maryland lead the pack in developing thoughtful, innovative proposals to improve the quality and coverage of care. Moreover, a recent study out of UCLA in California demonstrates that sound mental healthcare can actually be a cost-saving measure.

Ultimately, progress on both of these fronts depends on whether our political leaders choose to prioritize young Americans across the nation. The health of an entire generation hangs in the balance.

Rahul Rekhi is a student at Rice University and the Senior Fellow in Health Care Policy for the Roosevelt Institute | Campus Network.

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In New Report, Millennials Envision a Government That Works for Them

Feb 7, 2013

The last election proved that the Millennial movement that helped elect Barack Obama in 2008 was no fluke, but it also highlighted the ways our system of government has grown outdated and unresponsive to the needs and values of young Americans. That's why the Roosevelt Institute | Campus Network brought together more than 1,000 young people and 40 student writers from across the country to envision what a 21st century democracy should look like.

The last election proved that the Millennial movement that helped elect Barack Obama in 2008 was no fluke, but it also highlighted the ways our system of government has grown outdated and unresponsive to the needs and values of young Americans. That's why the Roosevelt Institute | Campus Network brought together more than 1,000 young people and 40 student writers from across the country to envision what a 21st century democracy should look like. The result, Government By and For Millennial America, builds on past Campus Network projects including the Blueprint for Millennial America and the Budget for Millennial America. It reflects the ideals of a generation that believes strongly in the potential of government as a force for good while laying out a clear plan for how that potential can be reached.

Watch a video introduction to #GBAF and read the full report below. And for more, check out this post at The Nation by Campus Network student Erik Lampmann.

Government by and for Millennial America

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