Why white supremacists can't confront the fact that the source of their economic problems is rich white people

There’s no disputing the white anger and rage seen in Charlottesville, even if conservative publications like the National Reviewsay these "angry white boys do not have a political agenda.”

Their anger is real and grievances differ, even if they took the old path of joining mobs spewing racist filth. Yet these white supremacists are blaming the wrong slices of society for their angst.

Racial divides are not what’s plaguing vast stretches of white America—deepening class divides are. If you think about who is to blame, it is mostly powerful white capitalists and their government servants that decimated regional economies in recent decades.

Many Democrats keep saying inequality is the top economic issue, as Eduardo Porter wrote for the New York Times in a piece that recaps the party's national political agenda. However, the conventional wisdom that Democrats need to “recover the support of the middle-class—people in families earning $50,000 to $150,000, whose vote went to Mr. Trump,” especially in swing states “where three-quarters of voters are white”—is not acknowledging the roots of America’s latest outburst of white supremacy.

“Our economy is in very serious trouble. Ten or fifteen years from now, the standard of living of our average citizen may actually be lower than it is today,” writes Steve Slavin, author of the new book, The Great American Economy: How Inefficiency Broke It and What We Can Do To Fix It. “Large swaths of the suburbs will be slums, and tens of millions of Americans will have joined the permanent underclass. There will be three separate Americas—the rich and near rich, an economically downscaled middle and working class, and a very large poor population.”

Slavin cites eight major economic trends, pointing out that almost everyone who is not living in wealthy enclaves—usually coastal cities or inland hubs—is facing a downward spiral that’s been decades in the making. These are the same stretches of suburban and rural America that elected Trump, elected the right-wing House Freedom Caucus, where hate groups are concentrated, and where many of those arrested in Charlottesville come from. They hail from the losing end of the trends Slavin cites and forecasts for the country.

It may very well be that the external circumstances of the whites protesting are “pretty good,” as the National Review's Kevin Williamson writes, compared to non-white America. That’s even more reason to condemn their visceral rage and hate speech. But as Slavin notes, the national economy and sense of well-being is on a downward slide that accelerated in recent decades.

Those responsible are largely white politicians, white business executives and more recently the graduates of elite business schools—where the curriculum involved outsourcing domestic industries that once allowed people without degrees to prosper.

The culprit here is primarily class—even though race and class are often synonymous. If anything, the downwardly spiraling sections of white America today eerily resemble inner cities in the 1960s, where non-whites called for economic justice. Those urban cores were abandoned after two decades of white flight to the suburbs and manufacturers also leaving.

Here are eight overarching economic trends that Slavin notes have clobbered the middle class, working class and poor.

1. Manufacturing has sharply declined. Notwithstanding Trump’s announcements that a few companies based overseas are returning, factory jobs have widely disappeared across the interior of America, where from World War II through the 1980s they anchored cities and counties.

2. Many cities have fallen into decline. Starting after WWII, the government and industry promoted suburbia, abandoning scores of cities to the mostly non-white poor. Detroit’s carmakers bought and dismantled public transit. That led to today’s costly transportation needs with a nation of commuters paying a lot for private vehicles, gas and insurance and spending hours away from home.

3. Health care costs have left wages frozen. Average wages have not seen increases, after being adjusted for inflation, for decades. A big part of the reason is businesses that provide health insurance have to keep paying more to insurers rather than employees. Meanwhile, insurers keep finding ways to draw on what’s left in people’s pockets.

4. Public education is vastly underfunded. Suburban schools in wealthy enclaves might be fine, but nationally half of high school graduates are not at the same level as graduates of other countries and their better achieving peers. That forecloses opportunity.

5. The government is not reinvesting in America. This is not simply about neglected roads and bridges. The U.S. government supports a beyond bloated military industrial complex that accounts for 40 percent of global spending on weapons. This may be domestic spending, but it is not spending on domestic needs.

6. The criminal justice system is bloated. Here too, the U.S. has the highest incarceration rate of any industrialized nation; a predatory system that targets lower-income people and creates taxpayer-funded private police forces.

7. The make-work private sector’s useless jobs. This isn’t just the growth of service industries, but “more than 15 million Americans hold jobs that do not produce any useful goods or services,” such as bill collectors, telemarketers, sales reps paid on commission, etc., Slavin writes.

8. The bloated financial sector. This is Wall Street’s diversion of savings from productive investments to speculative ventures, where money is made from tracking the movement of other assets or the public is sold repackaged securities that generate fees.

In every one of these eight areas, wealthy whites in positions of power and privilege have made decisions that collectively have set the country on the path to today’s downward economic spiral. Right after World War II, the federal government would not lend money to black veterans to buy homes in newly expanding suburbs. They gave real estate investors like Fred Trump, the president’s father, money to build what became urban housing projects where many occupants were non-white renters.

There were not many non-white executives in Detroit when the auto industry acted to destroy public transit systems. There were not many non-whites on corporate boards in the 1980s, when the first wave of moving manufacturing abroad hit. The business schools minting sought-after MBAs were teaching predominantly white students to take operations to countries where labor was cheaper, or extolling the virtues of businesses like Walmart that decimated entire Main Streets across small-town America.

The list goes on and a pattern emerges—a class division, more so than race—which has deepened and afflicts America today. As Slavin writes, “Perhaps the most persuasive indicator of our nation’s economic decline is that millennials are on track to be the first generation in our nation’s history to be poorer than its parents’ generation. In January 2017, CNBC reported, ‘With a median household income of $40,581, millennials earn 20 percent less than boomers did at the same stage of life, despite being better educated, according to a new analysis of Federal Reserve data by the advocacy group Young Invincibles.’”

The Young Invincibles are a progressive group concerned about health care, higher education, workforce and finance, and civic engagement. But that moniker could also be used to describe the belligerent attitude of the white marchers in Charlottesville.

As Williamson writes derisively in the conservative National Review, “What does an angry white boy want? The fact that they get together to play dress-up—to engage in a large and sometimes murderous game of cowboys and Indians—may give us our answer. They want to be someone other than who they are. That’s the great irony of identity politics: They seek identity in the tribe because they are failed individuals. They are a chain composed exclusively of weak links. What they are engaged in isn’t politics, but theater: play-acting in the hopes of achieving catharsis.”

But Williamson only hints at what they seem to want—and it's exactly what Slavin nails. These angry whites are being bypassed by structural changes in the economy that are narrowing their options. Needless to say, most people in dire straits do not embrace violence and racism. But it seems the heart of their grievances appear to be based on class frustrations, not race. If the white marchers want to blame someone, they ought to point their fingers at the wealthy whites on Wall Street and in Washington.