One can see this division in something as simple as the denigration of the term "liberal," the "L" word, with its attendant idea that to be compassionate, caring and tolerant — virtues that had been celebrated, if only via lip service, by most Americans — is really to be mush-minded, weak and, more concretely, willing to give taxpayer largesse to the undeserving and lazy. (This was essentially the argument that some Republicans, such as former Sen. Judd Gregg (R-N.H.), used when they sought to deny an extension of unemployment benefits.
It is easy to miss how significant a change this is. It transforms compassion, a bulwark in practically any moral system, into a negative force that undermines the good of individual initiative. Indeed, conservative ideologue Marvin Olasky wrote a book to this effect, pungently titled "The Tragedy of American Compassion," in which he called for the privatization of all charitable efforts. It rapidly became a conservative touchstone.
By the same token, liberals have come to see the emphasis on the individual and self-reliance as a form of civic irresponsibility and selfishness — a way to justify rogue economic behavior and enrichment at the expense of the community. It was, incidentally, a charge adherents of the novelist Ayn Rand gladly invited because they believe selfishness is a tough, exalted form of morality. Thus were the moral sides drawn: soft-headed versus tough-minded, big-hearted versus stony-hearted.
So far, tough-mindedness, and its patron conservatism — which drew these battle lines — are easily winning the day.
Perhaps it is as simple a matter as self-interest always overpowering communal interest when there isn't some countervailing force like religion or civic shame to contain it, but by seeking to conflate morality and politics and by discrediting such things as civil rights law, healthcare reform and financial regulation — all fueled by a sense of fairness and compassion — the right has succeeded in making the moral verities of the Protestant ethic seem more moral than the verities of the Social Gospel. In effect, morality is now the preserve of the right.
This is essentially unwinding the social compact which has held since the Great Depression. The conservative movement has targeted the welfare program, now they are targeting Medicare and Medicaid, and progressive taxation. The attacks on such safety net programs and balances on inequality are especially egregious in a brutal recession brought on by incompetence in high finance. How so many so-called religious people can turn their backs on social justice in favor of selfishness is beyond me, but it is a cancer in our society. Ayn Rand's philosphy is anti-religious, and many of her supporters now claim to be Christian. Ah, the irony.
Update: I forgot to mention that corporate welfare is ok by these conservatives, but welfare for real people is bad.
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