By way of explanation, and a flashback
The Regeneracy may not be televised
Crises of this type represent the death of the old order and the birth of a new one. The two most inspiring in American history were the late-eighteenth century crisis that gave us the Revolution and the Constitution, and the Depression and the New Deal, which culminated in the Second World War and the creation of the welfare state. The Civil War, as they recognized, had much less of a legacy, failing even to solve the racial problem that had brought it about. It is now clear that their prediction of a crisis was right on the money in both the economic and political spheres--but it seems increasingly likely, I am sorry to say, that we are not going to experience a rebirth or regeneracy comparable to that of the 1780s-90s or the 1930s-40s. The hopes that so many of us shared for a New Deal are retreating further every day, and while I am not yet entirely giving up, my head tells me that we are indeed headed for a new age of corporate supremacy parallel to the 1890s.
Today's New York Times gives a typical example of the reasons for my despair. Earmarks, we all know, are detested by all and sundry (except those who receive them), and the Congress has passed new regulations against them, specifically forbidding their award to private businesses. No sooner was this rule passed, however, than Congressmen and private companies found away around it. They are busily founding non-profits who will control the money and pass it on to the very same private firms that will do the work involved. Nothing, in short, is going to change. In the same way, the new financial reform bill, now nearing passage, will not substantially reduce trade in derivatives or force the big banks to stop trading on their own account. Even its consumer protection provisions contain loopholes. Reducing the influence of money on our politics seems as futile a task as civil service reform or railroad regulation in the 1870s--and that leads me to my next, even more controversial point.
Back in the 1990s Strauss and Howe made another prediction: a member of our own Boom generation would lead us in a new world, like the Transcendental Lincoln and the Missionary Franklin Roosevelt. When 9/11 occurred--only 72 years after the beginning the last crisis in 1929--we all held our breaths to see if it might indeed be the beginning of the crisis, or, as they called it, "Fourth Turning." When George W. Bush failed to unite the United States most of us concluded that it was not. But now, I am not so sure--because it seems that George Bush did far more to pout the United States on a different path, both at home and abroad, than Barack Obama will be able to do. Let us look, as Al Smith used to say, at the record.
Abroad, George W. Bush abandoned most of the principles that had governed our parents' foreign policies. He denounced a critical arms control treaty, the one that had banned ABMs, and began deploying missiles that still have not been proven to work. The Obama Administration has modified his plans, but it has not abandoned them. He invaded Afghanistan and Iraq on the grounds that we could not allow Al Queda to have safe havens, and we remain in Iraq while escalating our presence in Afghanistan, even though it is not clear that any of this has made us more secure. These wars have enormously raised the prestige of the military in American life for the first time since the early 1960s. In the Middle East Bush told Israel it could keep any territory it settled in a peace agreement, and the Obama Administration backed down from its first attempt to challenge that position. President Obama initially tried to recast our relations with the Muslim world but he has stuck, essentially, to the same policies, provoking individual Muslims (usually ones who had lived in the US and even become US citizens) to carry out terrorist attacks. Should one of those succeed on a fairly large scale we have no idea what the consequences might be.
At home, the reckless pursuit of deregulation by every Administration from Reagan through George W. Bush gave us the financial crisis of 2008--but before Bush left office, Henry Paulsen, it is now clear, had managed to make sure that all the banks' losses on derivatives would largely be made good through the huge bailout of AIG. Most importantly, the Bush tax cuts destroyed the surplus that Bush inherited and recreated the permanent deficit so dear to the heart of Ronald Reagan. That, combined with conservative fiscal orthodoxy which Obama seems reluctant to challenge, has crippled the government's response to the highest sustained unemployment since the 1930s. The Obama stimulus stopped the job loss but was not big enough to reverse it, and now it is coming to an end. The Republicans are fighting even modest moves like another extension of unemployment benefits--so far, at least, successfully. They seem certain to gain seats in both the House and Senate this fall, which will make any radical economic moves impossible.
Perhaps we were wrong; perhaps the crisis did begin with 9/11. Certainly George W. Bush took advantage of the shift in the national mood to move forward on a great many fronts, and his work has proven lasting. What is happening now is by no means all his fault. The Democratic Party effectively abandoned New Deal principles years ago--Bill Clinton, in fact, bragged about doing so. Now a Democratic Administration has very little to offer to the millions of new unemployed. They may not become enthusiastic Republicans, but they will not be enthusiastic Democrats, either--even though the younger voters among them are closer to the Democrats on social issues.
The politics of the Gilded Age were dominated by money. They were much more hotly contested than most people realize. U. S. Grant won two terms by huge majorities, but the next five elections--from 1876 through 1892--were all extremely close, all close enough to be decided by shifting a single state. The Democrats should have regained the White House in 1876 and did so in 1884 and 1892. Our politics may be similarly contested for the rest of my lifetime, since no government will be strong enough, it seems, to embark upon the kind of great crusade at home or abroad that will create a new consensus.
All this has enormous consequences for the Millennial generation (born 1982-2002?), whom Strauss and Howe expected to be the new GIs. Such, it seems, is not after all their destiny, since no Boomer leaderhip is going to enroll them either in massive public works programs or in a crusade abroad. Like the GIs in the 1930s, they will be preoccupied for a long time with finding work and setting up families. Their idealism and willingness to tackle problems may still do a lot of good, but mostly, it seems, at a local level and on a relatively small scale. In the same way that the GIs did so much to undo prejudice between religions and even between the races, the Millennials will finally break down prejudice based on sexual orientation, and they will probably begin a move away from strong religious belief. But for a variety of reasons, which I hope to explore in months and years to come, it seems that no one alive today is likely to see any kind of replay of New Deal America.