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<div class="timestamp">November 21, 2012</div>
<h1>A Failed Experiment</h1>
<h6 class="byline">By
<span>
<a href="http://topics.nytimes.com/top/opinion/editorialsandoped/oped/columnists/nicholasdkristof/index.html" rel="author" title="More Articles by NICHOLAS D. KRISTOF"><span>NICHOLAS D. KRISTOF</span></a></span></h6>
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<p>
In upper-middle-class suburbs on the East Coast, the newest must-have
isn’t a $7,500 Sub-Zero refrigerator. It’s a standby generator that
automatically flips on backup power to an entire house when the
electrical grid goes out. </p>
<p>
In part, that’s a legacy of Hurricane Sandy. Such a system can cost well
over $10,000, but many families are fed up with losing power again and
again. </p>
<p>
(A month ago, I would have written more snarkily about residential
generators. But then we lost power for 12 days after Sandy — and that
was our third extended power outage in four years. Now I’m feeling less
snarky than jealous!) </p>
<p>
More broadly, the lust for generators is a reflection of our antiquated
electrical grid and failure to address climate change. The American
Society of Civil Engineers <a href="http://www.infrastructurereportcard.org/fact-sheet/energy">gave our grid</a>, prone to bottlenecks and blackouts, a grade of D+ in 2009. </p>
<p>
So <a href="http://www.generac.com/">Generac</a>, a Wisconsin company
that dominates the generator market, says it is running three shifts to
meet surging demand. About 3 percent of stand-alone homes worth more
than $100,000 in the country now have standby generators installed.
</p>
<p>
“Demand for generators has been overwhelming, and we are increasing our
production levels,” Art Aiello, a spokesman for Generac, told me.
</p>
<p>
That’s how things often work in America. Half-a-century of tax cuts
focused on the wealthiest Americans leave us with third-rate public
services, leading the wealthy to develop inefficient private
workarounds. </p>
<p>
It’s manifestly silly (and highly polluting) for every fine home to have
a generator. It would make more sense to invest those resources in the
electrical grid so that it wouldn’t fail in the first place. </p>
<p>
But our political system is dysfunctional: in addressing income
inequality, in confronting climate change and in maintaining national
infrastructure. </p>
<p>
The National Climatic Data Center has just reported that <a href="http://www.ncdc.noaa.gov/sotc/global/2012/10">October was the 332nd month in a row</a> of above-average global temperatures. As the environmental Web site <a href="http://grist.org/news/if-youre-27-or-younger-youve-never-experienced-a-colder-than-average-month/">Grist reported</a>,
that means that nobody younger than 27 has lived for a single month
with colder-than-average global temperatures, yet climate change wasn’t
even much of an issue in the 2012 campaign. Likewise, the World Economic
Forum ranks <a href="http://reports.weforum.org/global-competitiveness-report-2012-2013/">American infrastructure 25th in the world</a>, down from 8th in 2003-4, yet infrastructure is barely mentioned by politicians. </p>
<p>
So time and again, we see the decline of public services accompanied by the rise of private workarounds for the wealthy. </p>
<p>
Is crime a problem? Well, rather than pay for better policing, move to a gated community with private security guards! </p>
<p>
Are public schools failing? Well, superb private schools have spaces for a mere $40,000 per child per year. </p>
<p>
Public libraries closing branches and cutting hours? Well, buy your own books and magazines! </p>
<p>
Are public parks — even our awesome national parks, dubbed “America’s
best idea” and the quintessential “public good” — suffering from budget
cuts? Don’t whine. Just buy a weekend home in the country! </p>
<p>
Public playgrounds and tennis courts decrepit? Never mind — just join a private tennis club! </p>
<p>
I’m used to seeing this mind-set in developing countries like Chad or
Pakistan, where the feudal rich make do behind high walls topped with
shards of glass; increasingly, I see it in our country. The disregard
for public goods was epitomized by Mitt Romney’s call to end financing
of public broadcasting. </p>
<p>
A wealthy friend of mine notes that we all pay for poverty in the end.
The upfront way is to finance early childhood education for at-risk
kids. The back-end way is to pay for prisons and private security
guards. In cities with high economic inequality, such as New York and
Los Angeles, more than 1 percent of all employees work as private
security guards, according to census data. </p>
<p>
This question of public goods hovers in the backdrop as we confront the
“fiscal cliff” and seek to reach a deal based on a mix of higher
revenues and reduced benefits. It’s true that we have a problem with
rising entitlement spending, especially in health care. But I also
wonder if we’ve reached the end of a failed half-century experiment in
ever-lower tax rates for the wealthy. </p>
<p>
Since the 1950s, <a title="A column from October" href="http://www.nytimes.com/2012/10/04/opinion/kristof-why-let-the-rich-hoard-all-the-toys.html">the top federal income tax rate has fallen</a> from 90 percent or more to 35 percent. <a href="http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=161">Capital gains tax rates</a>
have been cut by more than half since the late 1970s. Financial tycoons
now often pay a lower tax rate than their secretaries. </p>
<p>
All this has coincided with the decline of some public services and the
emergence of staggering levels of inequality (granted, other factors are
also at work) such that the top 1 percent of Americans now have greater
collective net worth than the entire bottom 90 percent. </p>
<p>
Not even the hum of the most powerful private generator can disguise the failure of that long experiment. </p>
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