As I write this I’m eating a sub I bought from across the street. While it was being prepared I chatted with the young woman making it, and she told me about moving from the Canadian Maritimes to Toronto, to, in essence, get a job that pays a little more than minimum wage. Because out in the Maritimes she had trouble getting even that.
I thought to myself that her experience is one that politicians need to have. Many politicians, of course, have never ever had a bad job. They went straight to a good university and from there to a good job or internship. They probably worked hard for it, and think they deserve what they have, never really seeing all the people whose feet were never on that road, who never had the same shot they did.
Then there are a fair number of pols, though less and less every year, who will tell you about the lousy jobs they had as teenagers, or maybe in their early twenties. But in most cases something is different between them and many working class and even middle class folks.
They knew they weren’t staying there.
When I was poor and working in lousy jobs I used to look in the mirror and see myself at 50, or 60. I expected to still be working at grindingly hard jobs, being treated badly by bosses (because there is no rule more iron than that the worse you are paid the worse your employer will treat you), and still being paid little more than minimum wage. That was the future I saw for myself.
And when I was on welfare, after having failed to find a job for 6 months, and even being turned down by McDonalds (in the middle of the early nineties recession) I wondered if I’d even ever have a shitty job again. I ate cheap starchy food, turned pasty and put on weight. My clothes ran down. When my glasses broke beyond the point where tape would keep them together I literally had to beg the optometrist to make me his cheapest pair and I’d pay him later. (I eventually did.) My life was a daily grind of humiliation.
And that’s what I expected my life to be.
When politicians participate in one of those "live on Welfare for a week/month" programs I’m happy, but I’m also dubious. The difference is that they know they’re getting out in a week or a month. They know it’s going to end. Much as I applaud someone like Barbara Ehrenreich, who lived for months working at lousy jobs, again, she knew it was going to end. She knew that, if push come to shove and she became seriously sick, she could opt out. She knew that if she really couldn’t eat for days, that was her choice.
Living without that safety net, knowing that if something goes wrong, that’s just too bad, changes you. Living without any real hope of the future, knowing that the shitty job you’ve got now is probably about as good a job you’re ever going to have, changes you.
And it changes your sense of what hard work is, of what it means to be deserving. I remember working on a downtown construction site as temp labor, and I’d watch all the soft office workers with their uncalloused hands come out for lunch, and I’d wonder why they got paid two or three times what I did for work that was so much easier (and which, of course, I could do, even if I didn’t have a BA.) At the end of the day they might be stressed, but I’d go home physically exhausted from hard labor and so would my co-workers.
Of course, I got out of that. I’d say "I went back to university", but even though that’s true, it’s not what got me out, since I never finished my BA. Instead what got me out is that I finally got a couple chances to prove what I could do—I got a temp job in an office, and was one of their most productive workers (they measured it.) Later I got invited to blog, and hey, I can write, even if I don’t have a BA. I got lucky. Like most people who get lucky in work, that luck involved a lot of hard work, but it also involved luck.
But a lot of folks never get lucky despite the fact that they work hard. Perhaps they aren’t really all that bright (half the population, after all, is below average intelligence.) Perhaps they’ve got some personality issues or weak social skills. Perhaps there’s something not quite right in their brain chemisty. Or perhaps they just never catch a break because they aren’t lucky and their parents weren’t well enough positioned to help them get those breaks.
But still, most of them work hard and earn their money, whether it’s barely more than minimum wage or they did get a bit of luck and got one of the few remaining good blue collar jobs.
But when they look in the mirror, they know that the guy or gal looking in the mirror ten or twenty years from now is probably going to be doing the same thing. And they know that they’re one bad break away from losing even the little they have—one illness, one plant closure, one argument with their boss.
They don’t have a lot of hope for the future, except that it won’t get worse. The life they live now is the best it’s probably gonna get.
Living like that changes you. It makes you see people differently. You understand that there are a lot of bad jobs out there, and that someone’s going to be stuck with them. You know that most of those jobs are either hard or humiliating, and often both. You know that for too many people, a shitty job where they’re abused by their boss is as good as it gets.
This all comes to mind because of how Congress and other politicians have acted throughout the auto bridge loan debate. Folks who passed a bill giving their sort of people: wealthy people who went to good colleges, who work with their minds and not their hands in the financial industry, 700 billion dollars without any real oversight wanted to force a cram down of wages and benefits on auto workers. Journalists on TV who were sympathetic to the bailout, dripped with palpable contempt for the idea of "subsidizing unprofitable companies", something that didn’t bother them when it was soft-handed professionals like themselves on the dole.
The narrative of the GI generation was "first person in my family to go to college". They came up from poverty, they probably expected to live in poverty all their life, but when the world change so changed their chances.
It was a generation of opportunity, but what has happened since them is the "closing of the American elite". Every generation the odds of someone born poor making it into the elite decrease. At this point about 80% of the working class don’t get degrees. The US now has the least intergenerational social mobility in the Western world (it used to have the most). The elites have become self-perpetuating, and they never had to stare in a mirror and know that they may never have more than minimum wage job; that probably this is as good as it gets.
As a result they have no real empathy or understanding of the vast majority of the middle and working class. The elites know they worked hard to be where they are, what they don’t see is that their feet were put on the path from birth, and that every opportunity was given to them. Opportunities that were not so open to those below them, who have to virtually bankrupt themselves to go to university and whose schools were completely broken, even as the value of BA declines to multi-generational lows. Put yourself in debt for 20 years, and it may still not buy you the good life.
That existence, hand to mouth, with no hope, is something America’s elites have never experienced and don’t understand. For them there’s always another opportunity, always another chance: always hope. And what matters to them is when the "deserving", which is to say, their own class, is in trouble. So they’ll bail out the financial sector, even though it hasn’t made any more profit than the Big 3 in the past 8 years, and unlike the financial sector, didn’t bring down the world economy, but they won’t help out the undeserving whom they don’t understand.
America has become the most class ridden society in the Western world, far worse than Britian. Congressional seats are passed on to family members and friends like corrupt boroughs in 18th century England. The rich are bailed out and ordinary people left to sink. Responsibility is enforced on the least in society while the privileged are allowed to skate. Sell a gram of pot, go to jail; but kill hundreds of thousands in an illegal war and it’s no big deal.
The elites don’t live in the same world as ordinary people. They have become completely disconnected from that world. This is entirely logical on their part, because for 30 years they’ve gotten rich, rich, rich at the same time as ordinary people haven’t had a single raise. When you’re sitting on the top it’s very clear that all boats don’t need to be lifted and that Americans aren’t all in it together. The elites have done just fine, for over 30 years, while the rest of society went to hell.
So there’s no empathy born of shared experience, of the knowledge that sometimes life sucks and no matter what you do, it’s going to suck, and that that’s the way many people live. And there’s no acknowledgment of a need to make America work for everyone, because for the elites, that’s simply not true: America doesn’t need to work for everyone for things to be good for them.
This then, is how they’ve acted. Plenty of help for themselves, for the people they see as part of their group. And very little help for everyone else. Because the elites aren’t like ordinary people, they don’t believe they have many shared interests with you, and they no longer have any real shared experience.
Expect to eat a lot of cake over the next few years if this attitude doesn’t change. The elites, of course, are wrong. At the end of the day a nation without a solid working and middle class always falls into steep decline.
But, as Adam Smith once said, "there’s a lot of ruin in a nation."
Nonetheless, as many nations have discovered, that amount isn’t infinite.
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I think this item is related enough to be on topic:
Posted: Sunday, 21 December 2008 3:38PM
Bloated Bonuses at Bailed-Out Businesses
WASHINGTON, D.C. (AP) — Banks that are getting taxpayer rescue dollars still managed to award their top executives nearly $1.6 billion in salaries, bonuses, and other benefits last year.
…
The total amount given to nearly 600 executives would cover bailout costs for many of the 116 banks that have so far accepted federal money to boost their bottom lines.
…
http://www.kcbs.com/Bloated-Bo…..es/3533917
There was an interview with Jackie Speier giving some background, but it does not seem to be posted yet on the site.
Brilliant and sadly the absolute truth. As a person who has a job people envy yet doesn’t make that much money, I sometimes feel like I’m in Alice In Wonderland except written by the guy that wrote Mein Kampf.
The” working” poor will never gain a foot up in our present society ,
The poor do Ok The rich do great ,but there are huge groups of people just barely making it
Too rich for welfare too poor for any thing else
I think this is why I am enjoying the Madoff “scandal” so very, very much.
Aloha, Ian!
How generous is Canada’s system, Ian…?
Exactly!.
This is one reason, maybe the major reason, why I favor the draft. The elites never have to have any contact with the rest of us in a situation of equality,otherwise.
A quick hark back to the Caroline Kennedy debate. I would not mind a nobility if they came with noblesse oblige. The Kennedy’s have always had that, the bushes, not so much.
Hi Ian,
I read every one of you contributions and very much appreciate all you do
Will you consider a suggestion that someone old enough to have moved cross country and who works making sandwiches would more respectfully be referred to as a young woman rather than a girl. Think ‘boy’ and ‘young man’ in similar circumstances.
Your first few paragraphs began bringing back memories of the 80s–my difficult period. Thanks so much for writing this. To comment on just one part: you mention what bad diet did to your health,… and the anecdote about the glasses. Through the early 80s I washed dishes, and after making it through a training program (to learn how to type!) I doubled my income. It was the difference between the night and day which you describe. Still, it wasn’t until I could move up beyond temp office jobs that I got good medical benefits and got my glasses fixed and my teeth back on the road to recovery. But the damage which poor diet had done (cigarettes and coffee were cheaper than food during some parts of the 80s) took until the mid 90s to heal significantly. What a waste! All those years they wanted cheap productivity out of me and they turned around and “hot themselves in my foot.” [Sigh] I will never forget the day I was reading George Orwell’s “Down and Out in Paris and London”… the part about being hungry tired and looking down and seeing your shoelace untied,… and his reaction. (Sorry, no spoiler, only a “skewed” Shakespeare quote, “Ah, but my friends remembered such wealth brings, that then I scorn to change my place with kings.” I cannot look at Paulson or Madoff today on the screen or front page and say to their image, “Oh what a poverty stricken life you have lived!”
You, evidently, were very successful…! ;-)
I wonder if people would vote better if the press (broadcast, cable, print — all of it) was banned from being owned by non-press entities?
A fine post, Ian. Personally, I haven’t drawn too many lessons from life, but I have learned two things: “Being out of work is the hardest job there is.” and “Life’s too short to vote Republican.”
The fact is that this system we have depends on lots of low page “grunt” workers who have very little chance of being advanced. Most companies are not structured like conveyors taking in workers and moving them up to the top over time. Does it happen? Yea but rarely.
Labor is treated very poorly, especially non skilled work.
And you don’t hear politicians talking about this lot, the ones they pay lip service to is the middle class who is getting shafted but are not a oppressed as the lower class and poor.
When you have a underclass who see no way out, they resort to crime and drugs. Our answer? More police, more prisons, harsher sentences.
At my work, there is a nice domincan lady who is the “house keeper” – she cleans the place, makes coffee 5 days a week. She good and very pleasant and obviously earns very little. Recently the boss told her that he is cutting her to 4 days a week. Lovely. he’s probably saving himself $100 (which he won’t feel I suspect) and putting her life in trouble as I am sure she lives paycheck to paycheck. I told her I would hire her to work and clean my apartment because it seemed so unfair.
We had a meeting and the boss started hinting at cost cutting. I suggested that rather than cut pay he ask workers to put in a extra day or work longer hours so at least they had the same income and he got more work out of them.
We are headed for lots of soup lines.
We really have a serious problem here
As I have said many times Reading posts just reminds me that there is in fact A Class War being waged by the Rich and Powerful! The rest of seem to buy into the fallacy that with hard work they to can become Rich and powerful so they buy into the crap that is fed to the masses that “Oh no there is no Class Warfare”. Wake the fuck up people we have been losing this war since Ronald Regan was in office. It saddens me that so many allow so few to take home at least 23% of the GDP and say nothing just FUCKING nothing! Sheeple!!!
Great Post as always Ian, I just wish that the MSM would pickup just a few of your posts and plaster them all the Front pages and make them the lead story of every news cast!
I did Digg this post! Thank to ES for opening it up(:>))
Seems to me that that is over 90% of all the people. We need to arm the masses with the knowledge that together we can force our elected officials work for us and not for the rich pricks at the top!! Post such as Ian’s go a long way of doing just that…
Ian, I have a work history that’s not quite as bad, but very similar.
I signed up for a temp job in the mid-80s because I couldn’t get a permanent one based on my not-quite-a-BS-in-CS and my history of electronics assembly. I found that that temp job – it was long-term – was a pretty good fit for my skills. I’m still in that line of work, still working for the same company (and some of the same people!) and still contract (mostly because they have to be able to justify taking people permanent to those Upstairs). This week I’m glad I have a job, because one of the other people was let go – they have to cut costs, and he was the closest to expendable.
Someone above asked how generous Canada’s welfare is. I recall being in my 50’s and out of work, and the welfare check was going to be $200 per month. I took the first check back to the welfare office and handed it back to them, told them to give the money to someone who really couldn’t find something to do. (I’d forgotten about that. Collateral damage of the death spiral of NIH-funded research. I read that there is some uneasiness that nobody seems to be going to grad school in the sciences. Huh. Here’s a hint: it isn’t the current economic trouble that’s doing it; it’s been obvious for years.)
I’ve worked my share of low paying jobs ,I understand the kind of hopelessness one feels when in this situation
I don’t things are gonna change much though,there aren’t many high paying jobs for low skilled workers
Previous generations could take factory work to make a living the work sucked but the jobs paid well enough to support a family
No more though, those jobs are gone shipped overseas ,plant closed whatever
There is a huge underclass in this country, under educated, in poor health with low life expectancy, mostly unemployed, under nourished and I am talking tens of millions. Why are we pretending that these people don’t have a right to life liberty and the pursuit of happiness?
I’ve been wondering lately if anyone knows whether things have been written actually _advocating_ turning the U.S. (or maybe the entire world) into a two-tiered society, where there is not a spectrum but a dichotomy of incomes. I can imagine someone looking at the millenia of history and saying, “Why, obviously having very rich and very poor is the Natural Order.” Has anyone actually come out and said it?
But I suspect that the Madoff Scandal likely didn’t hurt too many of those that got in early. Remember that the whole premise and promise of the Ponzi Scam is that those in early get rich off those that follow on. Even if the ones in early rolled over most of their profits I’m sure they made a comfortable profit (perhaps even over legitimate investors in other areas). What they are whining about is the “perceived millions” they “lost”. They never had that in reality.
Certainly there were people, late in the game that lost. But maybe some of those that got millions on a bogus investment may have to pay back some of that because they were “ill-gotten gains”. After all, if one buys a stolen TV or car at below what is a reasonable value, and they find out it’s stlen…well Joe Schmoe has to give it up.
It’s not just minimum wage earners who need help– you too can sponsor an executive.
2 ‘n’s in “millennia”
The problem began in the Reagan era success was measured in how much money one had ( didn’t matter how one made it either)
Profit at any cost became the way of business in our country no responsibility to any one but share holders!
Madoff made lots of people oodles of money, but the last guys have lost it all. That’s how the ponzi worked. The last ones in paid off the first ones.
I really, really enjoy your long Sunday pieces, Ian.
And this attitude you describe is one of the reasons I am a big fan of Dennis Kucinich. He gets it. He lived it. He knows it.
I agree with that. The Kennedy’s were always told they HAD to give back to Society and that is one of the reasons I have always admired the Kennedy’s. Thank You Rose for it was she how made sure every one of the kids knew that they owed society for their privileged life and by God they gave many times over!
Some days I do worry were heading back to the days of the feudal system
Allowed to live due to the good grace of the lord of the manor
WTF !!!
It’s 15 outside, 40 degrees in my living room, and falling.. I am 25 degrees warmer today than the homeless and 60 days from joining them if things don’t work out with more than a little luck.
The last time I lived in a tent (over twenty five years ago), I worked my way out of it on a .03 piecemeal basis… Now I don’t even know of an opportunity close to that.
In the early eighties.. I was the temp consultant in San Francisco’s financial district… and I turned down several golden sellout opportunities only to start my own business with less then 100 bucks in my pocket. It worked our very well for me, my partners and employees for over 15 years.
All of that to say, I am no stranger to hard work and resourcefulness, yet I don’t see a way out or through this downturn.
The closest to that would be the “The Bell Curve” who argued that social class and “intelligence” distribution was correlated because Natural Selection obviously brought the cream to the top. Since this was genetic and “highly heritable” then it was useless to try and expend resources on educating the lower classes.
Of course, a corollary of this view of high heritability of intelligence was that it was equally useless expending educational resources on the wealthy. After all, they wouldn’t benefit that much from it ;-)
An example would be Joe Kennedy III and his home heating oil program for the poor.
The Kennedys are a good example of how rich people should behave !
That’s awful. I suspect even many employed today are one paycheck away from being on the street. We live from paycheck to paycheck and it’s hard to keep up. I hope things turn around. Do you have some family who can help you?
I wonder how many ivy league legacies would gain entrance if they had to do it like everyone else..on their merits!!
I slept for a month in an animal lab on a cot in NYC Hunter College back in the mid 1970’s…after a couplke of nights crawled up under the thorny brush in the Rambles in Central Park. Hit the shelters, lived on Top-Ramen and tea. Finally got some financial aid.
I get the impression that most Republicans have never held a real job seperate from those given them by family or family ties. many of my younger students that show this history are Republican ranchers or farmers, who live on the idea that they are hard workers. Yet they’ve never been at risk from losing those jobs…it’s always the “others”…the day laborers and piece workers that confront those challenges. So they live in a bit of a caste society. They also seem to have a certain level of arrogant entitlement…that just doing the minima makes them an “A” student. There are others that show a similar perspective though…athletes.
This is the question of our times.
But to get there from here, first we have to start seeing each other as whole and worthy.
out of many, one people — all of whom have the right, bought by blood, to the pursuit of happiness.
Oh it will work out somehow. Always does. Just needed to be said, because I suspect so many have similar and worse stories right now… or will very very soon.
Yup BB Regan fucked us all real good and made Unions fair game for Big Business. It became happy Hunting Season on the unions. What better way to hold down the lower classes than to take away their only way to get better wages!
The Tax code needs to go back to 1947 when Corporate America paid over 50% of all Taxes and the Tax rate for the top 1% was 95%+ If we could regain that tax base we could have universal Health, We could have the execellant Schools, infrastructure and other “Needs” that this country Must have to stay competitive and strong in the cruel world.
This was the accepted way of things before the American Revolution.
The whole reason for our country’s existence is as a counter-argument to the Great Chain of Being.
I think it’s gonna be a rough winter for alot of us.
My work suffers when the economy goes sour people don’t have the money to spend>
I’m not looking forward to this winter !!!!
Someone a few nights back pointed out that without the social safety net that FDR created the economic plight of everyone would already be in a Depression that would be far worse than the 1930’s. The abuses and greed were far greater, and only through the regulatory system, as stripped down as it was, was total financial armageddon averted. People still have unemployment insurance, most of the elderly have mortgages that were paid off (so own their homes), there is Social Security, and Medicare.
Imagine what things would be like if these New Deal protections were absent. That was the Republican Dream…to privatize all of these and make it linked to what the market could demand.
this also describes the real estate bubble — all bubbles, I guess.
Hey, I thought Ponzi schemes were illegal!
We can dream !!
Overblown and windy perhaps, but perfectly describes my feelings about the US today…it’s probably even more today, because the unchecked greed of the powerful has hollowed out this country and destroyed it’s middle class and working class…
“And here, more than anywhere else I know of or have heard of, the daily panorama of human existence, or private and communal folly–the unending procession of governmental extortions and chicaneries, of commercial brigandages and throat-slittings, of theological buffooneries, of aesthetic ribaldries, of legal swindles and harlotries, of miscellaneous rogueries, villainies, imbecilities, grotesqueries, and extravagances–is so inordinately gross and preposterous, so perfectly brought up to the highest conceivable amperage, so steadily enriched with an almost fabulous daring and originality, that only the man who was born with a petrified diaphragm can fail to laugh himself to sleep every night, and to awake every morning with all the eager, unflagging expectation of a Sunday-school superintendent touring the Paris peep-shows.”
—H.L. Mencken
They are, but social security is one that legal cos the gov does it.
We’re already there.
The Senators and Representatives only come to us for votes and money. But nothing else.
When they make laws, they make laws that benefit their constituents.
Corporate America paid 50% of the taxes and still created jobs,I thought that couldn’t be done under such an onerous tax burden !
ES don’t you at least have a wood burner to keep you warm? Dam if I could I would send you my extra Buck Stove that is just sitting in the shed!
Or cry his/herself to sleep, probably depending if you still have a job, bank account. food to eat or a home to live in…
Good nite all.
arguably — and social security works, because the “game” keeps going, through mandatory participation.
But they did! And It can Happen again. We just have to get our elected officials to “listen” to the “People” and not the rich and change the rules of the game. And if they squeal and say they will leave America well tell them if they do then they can’t sell their products to the largest consumer market in the world.. plain and simple, no need to make it complicated!
G’nite SO !!
Ian,
what struck me while reading your message was how rare to hear a deliberately working-class voice on the liberal blogs. I think more of that would be useful Thanks.
Joel
Corporate America needs to understand that its responsibility doesn’t end with the share holder or owners,but extends to the employees the community it operates in it’s customers and suppliers.
Sounds like Ian has been reading A Theory of Justice by John Rawls:
Check out the comments posted on this site ,you’ll find many of us working class posting here !
Is it possible to die of schadenfreude?
hmm.. interestingly, as I pulled up this post the ad pod on the upper right of FDL spat out an ad featuring private banking/wealth management services for the very affluent.
On the last thread, I posted my suggestions to President Obama for a more equitable post-recesssion return to prosperity and personal and national growth. it got EPU’d, but as they are relevant to this
hmm.. interestingly, as I pulled up this post the ad pod on the upper right of FDL spat out an ad featuring private banking/wealth management services for the very affluent.
On the last thread, I posted my suggestions to President Obama for a more equitable post-recesssion return to prosperity and personal and national growth. it got EPU’d, but as they are relevant to this thread, I thought I’d repost them here with some elaboration:
- comprehensive tax reform optimizing for growth with equity (growth in employment and income for the greatest possible number – no more trickle down crap)
- comprehensive healthcare reform
- employee free choice
- regional, sectoral and industrial growth targetting using the cluster model, including massive public investment in various types of technology foundry capability (which would then be publicly or cooperatively owned) and massive funding for local cluster-based economic development initiatives (a huge Community Development Block Grant program for industrial growth)
- creation of worker-led growth and innovation cooperatives (like the freelancers’ guild) that’ll provide benefits, training, wage and fee collective purchasing services, etc, to many categories of self-employed and under-employed workers (e.g.%2
ha.
nah.
and I’m sure the objects of my schadenfreude will never even know I am alive.
Early day tomorrow , time to turn in!
Stay warm and dry
And to those of you going through tough times, don’t lose hope, better times will come
Ian, what a great post. I had days like that back in the day and I was a single mom. My most overpowering memory is the fear. I would have a fist of fear in the middle of my body that would very often just overwhelm me.
It did work out OK. We never did actually go without food and I was able to pay the rent. But I know without a doubt that there are parents all over the country right now that are dealing with that knot of fear. And it breaks my heart.
Probably two things happened, one,I didn’t express myself clearly. Ian’s message was a clearly this is how it really is for us working class that I haven’t noticed much on the liberal blogs. And, two, maybe I just haven’t noticed what has appeared.
This crisis of the “middle class” is appalling. I guess it’s ok to pull out all the stops to rescue the “middle” class, what happens to the working class? Oh, right, we don’t have them in amurica.
hmm.. interestingly, as I pulled up this post the ad pod on the upper right of FDL spat out an ad featuring private banking/wealth management services for the very affluent.
On the last thread, I posted my suggestions to President Obama for a more equitable post-recesssion return to prosperity and personal and national growth. it got EPU’d, but as they are relevant to this thread, I thought I’d repost them here with some elaboration:
- comprehensive tax reform optimizing for growth with equity (growth in employment and income for the greatest possible number – no more trickle down crap)
- comprehensive healthcare reform
- employee free choice
- regional, sectoral and industrial growth targetting using the cluster model, including massive public investment in various types of technology foundry capability (which would then be publicly or cooperatively owned) and massive funding for local cluster-based economic development initiatives (a huge Community Development Block Grant program for industrial growth)
- creation of worker-led growth and innovation cooperatives (like the freelancers’ guild) that’ll provide benefits, training, wage and fee collective purchasing services, etc, to many categories of self-employed and under-employed workers (e.g., if you work out of your home office, you can be ‘employed’ by a coop union that provides you with the same type of benefits and negotiating muscle than if you worked as a consultant for a big company)
- comprehensive educational and education financing reform, targeting an increase in the college educated from around 25% to 40-50% in a generation
- transition of stimulus infrastructure jobs into permanent new types of companies and industries (green tech or whatever), possibly with a big public ownership component
- break the back of anti competitive elements in big business; require employee and community representation on corporate boards, breaking the back of the CEO class; comprehensive compensation reform; rigorous prosecution of anti-competitive behavior in the future; break up failing companies and give them to the workers with some measure of public subsidy
- limit LBO takeovers, limit the growth in corporate acqusition leverage coming out of the recession, at least until structural changes take root, probably by a combination of European-style disclosure and notice controls plus punitive corporate transaction taxation and elimination of M&A-oriented purchase/capital gains tax deferral loopholes (of which there are many)
- regulate hedge funds like mutual funds (in other words, screw them.. may they die a miserable death as a type financial instrument and may their affluent investors choke on their own greed – they are the capitalists’ equivalent of a weapon of mass destruction and should be treated as just as dangerous)
- limit OBS risk management to publicly underwritten derivatives (in other words, the government would be the only allowable counterparty for credit and forex mgmt derivatives, functioning effectively as a type of direct insurer of certain types of risk that, as they are now, might endanger corporate employment and growth… much in the same way as the Multilateral Investment Guarantee Agency now functions in developing countries)
By the way.. now is the right time to begin thinking about this type of massive change. Normally, housing is the most problematic element in enacting a comprehensive industrial policy and, as the Netherlands, Singapore, Sweden, Spain, UK and Sth Korea have found, pretty much sucked away any stimulus infra spending hat might’ve gone into new or upgraded foundries/plants, industrial restructuring and productive infrastrucure, and education reform. But we have a massively oversupplied housing market and enough market based product delivery capability now idled, pent up and ready to go as soon as the foreclosure crisis is fixed by government and once real growth starts to pick up. This is a unique opportunity.
OK.. I realize that this is basically an updated version of a European-style semi-socialized economy, and the thuggods will probably want to cart me away and hurt me for saying these things, but I do believe that n ow is the time for real change and hope, not half measures and broken promises. We are poised between an old, tired, corrupt way of existing (or for many, subsisting) and the promise and fear of disruptive change. In his eight dark years, shrub set us back a generation or more, and we probably now have less than a full chance now of making the type of changes we will need to before our efforts become irrelevant, in the wake of global competitive change. But don’t we at least owe ourselves a try?
There was a time when that was the case for Xerox… I worked for them for 25 years and watched them become your typical “All for the Owners” and fuck the employees! They are/were replaceable!
Thanks, joelmael, from an “old girl.”
Ian, otherwise a beautiful post! Thank you.
Don’t know if anyone is still around … I stepped away for a while.
About “bell curve”: if intelligence determines income, and if intelligence has a Gaussian distribution (bell curve), then, hey, there should be a honking great middle class and the rich and the poor should be rarities both. What we’ve got here is apparently a push towards a bimodal distribution of income, with the two peaks a h**l of a long way apart from each other. I might be able to live with a “bell curve philosophy”, but whatever the right-wing has in mind, that isn’t it.
This is a great post and I’m sorry that I came to it so late.
I’d like to add one more “disability,” as it were. Some of us were never really able to wrap our heads around money-as-success and consequently appeared as lazy no-gooders – when the truth is that we really never could work up giving a good sh*t about it.
While your story appears as an arc, Ian, mine is a bit more like the bell curve. Poor (but effin’ interesting, no regrets!) beginnings, a three-decade run as a very well paid software guy, then my dropout a few years ago… I now struggle on the wages of a “sandwich artist.” Couldn’t be happier, though. My years of awesome disposable income obliterates any charges of sour grapes about wealth – instead, I come fully informed and can bear honest witness to the emptiness of having when others have not.
On a personal note – this is the first I’ve heard of your loamy roots, and if I may I’d like to raise a pint to the genius of humanity, always to be found outside the comforts of the elite. I speak particularly of your genius, because you have so helped, with your posts, my understanding of what is going on in the economy, and with economics in general.
Huh? “unlike the auto sector, didn’t bring down the world economy”???????
I have been out of a job for a year and a half. Ian, the word hopeless and unemployed fit together perfectly. How many times can perfect strangers tell you that they like but not so much and that not affect one’s soul? I have been clinging to the edge looking down I have forgotten what it feels like to even look up. Living as a Bush statistic is cruel and heartless brought on by a man who you have described perfectly. At 54 y.o., I thought it was a tad early in my life to have to make the choices between food and meds but here I am making that decision weekly. Someone said to me recently to have hope. What is that again?
Done.
Oops, correcting.
It’s hard.
When I was really down and out I used to say “people misunderstand Pandora’s box. The last thing that came out was the worst thing, because it makes people endure all the rest.”
I hope things work out for you, and that you get note hope, but luck.
Ian, I had an experience that perfectly illustrates your point that the elite who by surname, contacts, inheritance can never understand the circumstances of the working class or poor in our country.
Before my retirement I was a service rep for the Social Security Admin. During the Reagan years he had cut back on employees so critically that I was alone at the front to attend to all who came for assistance of any kind.
The waiting room was usually pretty full and many had to wait a long time for me to get to them. They “took a number” and waited until their number came up.
One day a well dressed woman blustered into the door and immediately up to my window, demanding that I take care of her right then. I pointed to the number ticket machine and sign. Long story short, our exchange boiled up into my defense of all those politely waiting their turn. That was the only time I recall losing my temper in dealing with the public.
My supervisor and manager heard the word war and were shocked. The supervisor immediately escorted the woman, a retired teacher, into the inner sanctum and attended to her matter, giving her the preferential treatment she had demanded.
As the woman departed she approached my window and tried to apologize for her rudeness. I bluntly told her, “you got what you wanted and it was not right that you went before those who have waited so long before you”. I did not accept her apology.
Every person after her who came to my window thanked me for standing up for them. Yes, they were mostly of the working class of people. It has been my experience that these are the true Americans – I choose them any day!
I can only imagine the effect on her many students of that teacher’s attitude toward the treatment due the elite and the condescension toward the less fortunate.
Exactly right the part about the difference between being poor yet knowing that it is the product of current circumstantial choices and being poor yet not knowing how or even if it possible to get out except by luck. I inherited a middle-class value system and self-image that led me to believe that I could succeed. I always had a parent or two with an established situation that I could return to should I ever have lost myself.
Now actually those beliefs, in my own abilities to get out and that there would always be a place to return, are not necessarily real, but for the point here, the point is that I believed them and that belief was an important aspect of the difference you are talking about.
So even as I experienced the hatred of bigotry and stereotype because of my long hair in the 60’s, it was always with the knowledge that it would go away when I cut my hair. The boring factory work I did was to pay for college. Later after I dropped out the hard highway construction labor was tempered by the fact that I knew it was to make enough to allow longer periods of freedom. And the homeless periods, living under plastic, was self-chosen to save money in good weather and in a beautiful location.
And throughout it all I was quite conscious that I could (even if it was a false belief) just stop and return to being a “regular middle class citizen” whenever I was ready to choose to do that.
So you are right. I can only imagine what it’s like to only have hope at best and despair at worst despite having had all the outward trappings of having nothing.
I appreciate the reminder Ian.
Ian, that made me feel like crying. As they say, the truth hurts.
You might want to downshift a bit on using Joe Kennedy as an example of moral standards.