Loading the Debt Problem onto the Backs of the Middle Class

Middle Class grave © DonkeyHotey | Flickr

From the fracas in Washington, it would be impossible to know that Americans still live in the world’s richest country. In 2010, the U.S. GDP was about two-and-a-half times that of its nearest competitor, China—you know, the country that’s building new cities everywhere and a bullet train system to ferry citizens among them. But to listen to the political discourse that currently dominates the airwaves, the U.S. is facing financial collapse, if not now then in another decade, and it cannot afford another dollar for many collective goods, whether an improved mass transportation system or health care for senior citizens.

As a number of commentators have observed, the political crisis over the debt ceiling is a distraction from graver and more urgent problems: especially the stagnation of the economy, which is not generating enough jobs to make much of a dent in the unemployment rate or to give young workers solid footing for the beginning of their career climbs. The Great Recession, supposedly over, is threatening to turn into a Japanese-style stagnation that could endure for a decade or more.

The state of the U.S. economy is bound up with the plight of the American middle class, as Robert Reich has acutely observed. That plight has been developing for decades, a lot longer than the debt problem, which dates back just a decade, to George W. Bush’s entry into the White House. The economic gains since the 1970s have been concentrated at the top of the income distribution, in the top few percent, and little has trickled down into the middle class. One widely cited statistic has it that the top 1 percent now take home about a quarter of the national income, up from just 9 percent in 1976; the distribution of wealth is even more unequal. (By the standard statistical measure of income inequality, the Gini coefficient, the U.S. is now considerably more unequal than any other economically developed country and more resembles a developing nation like Nicaragua.)

Loading the Debt Problem onto the Backs of the Middle Class

The Suckers March: Show Us the Cuts

Tea Party Protest, Hartford, Connecticut, April 15, 2009 © Sage Ross | Wikimedia Commons

If it can be said that the devil is in the details, Barack Obama is on the side of the angels. It has been legislative tradition for the party out of power to complain with piss’n’vinegar about raising the debt ceiling on American borrowing, and even in symbolic fashion to vote against the rise, as pre-presidential Obama did to his lasting regret. In the end the vote is anti-climatic. The debt ceiling is raised and despite promises to do better, politicians relying on the short memories of their constituents go their merry way. Depending on which party is in power, they continue to tax and spend or merely to spend.

But summer ‘11 is different. Unlike most Julys, this is not the Silly Season. The fresh crop of Republicans has that most dire of all political virtues: sincerity. It is not that these freshmen are insane or are terrorists, as flame-throwers on the poetic left suggest. Rather they share a perspective on government that, even if it is not always explicitly or candidly presented, is certainly a legitimate view of how a quasi-libertarian state should be organized. As boisterous tea party rebels, they are children of Ron Paul and, with less intellectual gravitas, of Milton Friedman. It is the task of Speaker John Boehner to hide their deep desires – currently unlikely to be enacted – from the public. These politicians wish broad principled cuts. Call them “radical” if you reject them, but, after all, this rhetoric mirrors the self-enhancing distinction: I am firm, but she is stubborn. As the Speaker’s plans evolve, it is increasingly unclear when and where these billions of cuts will derive. One can’t but imagine that this is a shell game with the American public as the marks. Boehner is the adult in the room, but like so many parents, he tries to misdirect his offspring’s attention hoping against hope that the promises will be forgotten.

The Suckers March: Show Us the Cuts

Haiti: Resilience against Hopelessness

Man selling sugar cane © 2011 Kreider-Verhalle

Esther Kreider-Verhalle, a contributing editor at DC, recently went to Haiti to teach a course on media ethics as part of the curriculum at the film and journalism school, Haiti Reporters, in Port-au-Prince. Here she presents her first report. -Jeff

As Philippe Girard has lamented in his history of Haiti writing about the country can be depressing. “One must consult the thesaurus regularly to find synonyms for cruelty, poverty, and thug, while looking in vain for an opportunity to mention hope and success unaccompanied by lack of.”

It is a mess here in Haiti’s capital Port-au-Prince. Walking the streets of Port-au-Prince, one cannot ignore the squalor. The local market in the neighborhood where I am staying consists of mostly older women – marchandes – selling their produce and merchandise next to little piles of filth and omnipresent burning heaps of trash. Hens are running around, dogs are lying around. Pick up trucks honk their horns when passing through the small, unpaved streets, causing the sand and dust to sweep through the air. Sometimes, the women can only barely move their baskets with produce in time to avoid being hit by aggressively fast moving cars. Somewhere in a building that only has a few remaining standing walls, a religious service of some kind is going on. There is music, singing, clapping. Next to collapsed houses, one can spot impressive houses behind high fences that are rebuilt or seem untouched by natural disaster. The differences between rich and poor are stark. But everywhere, the air is hot, grimy, and dry.

Haiti’s recent history is a somber tale of man-made disasters and natural catastrophes: political ineptitude, economic collapse, racial strife, hurricanes, tropical storms, and earthquakes. After the foreign interference of the past, in the form of colonialism and slavery, the modern day and well intended international aid-industry comes with its own list of drawbacks, encouraging a never ending dependency on foreign aid. Ills such as the plague of corruption and the enormous disparities between the large group of the poor and the small group of the rich, have been preventing Haitian society from . . .

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Making Distinctions: Murdoch, WikiLeaks, and DSK

Murdoch's News Corporation headquarters in New York with Fox News poster in the window © Mitchell Hall | Flickr

I did not have the time to prepare a post while teaching with Daniel Dayan “Media and News in a Time of Crisis” in Wroclaw, Poland. This was unfortunate because there were news events during the period of the course that seemed to be a series of case studies on our topic. As we were examining theoretical material, which illuminates the roles media play in such cases, media were playing important roles, from the Murdoch scandal, to the terrorist attack in Oslo. Today, I will reflect on Murdoch and, more broadly, the tasks of making distinctions and coming to actionable judgments in the media. Oslo will wait for another day. I draw on the ideas of Eviatar Zerubavel, a distinguished sociologist of cognition and student of Erving Goffman, to make sense of our ongoing seminar discussion and the debate between Daniel and me.

The Murdoch presence in America has long concerned me, particularly Fox News and the Wall Street Journal. While Fox is a strange mix of opinionated journalism and political mobilization instrument, as I have already examined here in an earlier post, the Journal has been a distinguished business newspaper with a conservative slant on the news, with the slant increasingly prevailing over the news in recent years with Murdoch’s ownership. I was struck by Joe Nocerra’s analysis in The New York Times. Concern with factual reality has diminished. Editors went beyond improving reporter’s copy from the stylistic point of view to ideological “improvement.” Political and business news reported was re-worked to confirm the political positions promoted on the editorial page. Note the problem in these cases is that strong distinctions between journalism as a vocation and other vocations are ignored became fuzzy, in the terms of Zerubavel.

Such willful ignorance is also present in The New York Post, another Murdoch enterprise that I see in my daily life. I read it only late at night, picking up a discarded copy on the train when I have . . .

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Means Testing: The GOP’s Surprising Class Warfare

Rich man & poor man © N.I | Dreamstime.com

I’m puzzled. For as long as I can recall I have been assured that the Grand Old Party will do just about anything to advantage their wealthy friends and benefactors. Of course, no party desires no taxes – not even Republicans — and none – not even Democrats – want full confiscation. So the issue always comes down to the question of how one will square the circle. Should the top marginal rate be 35% or 40%? Aside from the flat tax advocates and a few outré progressives, few are now arguing for 25% or 50%.

Statecraft inevitably involves a distribution of responsibilities and benefits. And, as I have noted, it is traditionally the case that Democrats ask for more sacrifice from the wealthy and Republicans advocate for fewer benefits for the needy.

This being part of our political logic, how then do we explain a central feature of the Republican plans for Medicare and for Social Security, and how do we explain the hesitancy of most elected Democrats to embrace this plan?

One area in which there appears to be some measure of agreement between President Obama and Speaker of the House John Boehner is that means testing Medicare and perhaps even Social Security should be “on the table” – a Thanksgiving turkey, as it were. The argument is that the wealthy might receive fewer benefits or should have to ante up more in the way of co-payments. What’s up with that? In important ways, one should appreciate why Democrats would like that idea and why the Republicans should resist, but things have not quite transpired in that logical way.

Despite the element of soaking (or at least dampening) the rich, some Democrats have pushed back on the idea of means testing Social Security and Medicare. One could readily make the argument that it is unjust or undesirable for the federal government to send out checks to those same rich folks on whom Democrats wish to raise the marginal tax rates. Couldn’t receiving fewer benefits be a form of shared sacrifice so integral to Democratic talking points?

. . .

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Growing Pains

Crying baby © Popa Sorin | Dreamstime.com

While (not) sleeping with my one month old daughter on the couch in the middle of the night, sharing her experience of the latest set of what we call ‘growing pains’—those discomforts (some much more drastic than others) that inevitably arise simply from being a being that develops through time, and must so develop in order to be at all—I got to thinking about the figurative deployment of this class name in political contexts. The chronically optimistic Einstein, in December 1930, describing Nazi electoral successes as a result of “the chronic ‘childish disease of the [Weimar] Republic’” is a classic example. The sinister Secretary of Defense Rumsfeld’s analysis of the chaos and violence in post-invasion Iraq, in April 2003, as “‘part of the price’ for freedom and democracy” is a more recent one.

I do not mean here to assess the appropriateness of this trope. I hope only to clarify for myself, and perhaps for others, why it is that we might wish for “growing pains” to be an apt representation of such political phenomena.

To begin with the obvious: the phenomena in the face of which we aim to deploy this trope are, if not inherently noxious (as in the case of Einstein’s usage, or Rumsfeld’s), certainly of the sort that no one in their right mind would “choose for its own sake,” as Aristotle puts it so well. We look at events that, in and of themselves, we either wish would never have happened, or at least would not have wished to have happened. And, reaching for the familial and biological phenomenon of ‘growing pains,’ we try to “see the good” in such regrettable developments. Just as, we think, no one would wish for the fevers and diarrhea that accompany an infant’s first teeth, but we welcome those fevers and sleepless nights insofar as we know there is no way that this child will come to be what she was born to be without such fevers.

I would like to stress two characteristics of this metaphorical response to political phenomena: calling them . . .

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Pushing Back Against the Right’s Narrative on the Budget

Wall Street Journal chart

The right, as has been frequently observed of late, has developed an “alternative-reality” view of how we have arrived at our current budget-deficit impasse, placing the blame squarely on the Obama administration and Congressional Democrats. A runaway federal budget since 2009 is the key element in their story. In a July 15th editorial (“The Obama Downgrade”), The Wall Street Journal states this view succinctly:

“The early George W. Bush years saw spending bounce up to a plateau of roughly 20% of GDP, but no more than 20.7% as recently as 2008. Then came the Obama blowout, in league with Nancy Pelosi’s Congress. With the recession as a rationale, Democrats consciously blew up the national balance sheet, lifting federal outlays to 25% in 2009, the highest level since 1945.”

The editorial is accompanied by a chart to illustrate the basic claim–witness the remarkable uptick of the curve between 2008 and 2009:

At first sight, the chart appears to sustain the WSJ charge and to indicate that federal spending under Obama is of a different order of magnitude from the past. For a moment, it shook my own antipathy to the Republican position; maybe, in all fairness, the blame deserves to be more evenly divided between the two sides of the political aisle. My curiosity aroused, I probed more deeply into the numbers (which come from the OMB website). I’d like to share what I discovered. I make no claims about any special knowledge of the intricacies of the federal budget, just an affinity with numbers.

If you have followed me this far, you may have guessed what is coming—the discovery of a deceptive use of data. It begins with a disturbing piece of disingenuousness, if not dishonesty, in the WSJ editorial, which places the responsibility for remarkably high level of fiscal year (FY) 2009 expenditures entirely at Obama’s door. But a federal fiscal year begins on October 1 of the prior year, and the Bush White House was therefore the source of the FY 2009 budget passed by Congress and responsible for spending some of the money. The budget as proposed authorized $3.1 . . .

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Is a Simulacrum or Pragmatism Driving Corporate Jet Tax Policy?

One of Dassult's smallest corporate jets, the Dassault Mystere Falcon 10 © Justin Smith | Wikimedia Commons

When I heard President Obama’s Press Conference on June 29, 2011, I wondered if corporate jet tax policies were being driven by a simulacrum or pragmatism. The references to corporate jets seemed to be more aligned with a simulacrum; and the tax policy aspects seemed to be driven by pragmatic concerns with a smattering of campaign type rhetoric. Consequently, the President’s comments generated some strong reactions from associations/lobbyists, the private sector, and unions.

On June 29, 2011, the President and CEO of the General Aviation Manufacturers Association, and the International President of the International Association of Machinists and Aerospace Workers issued a news release with an attachment of a letter addressed to President Obama which was critical of his remarks about corporate aircraft and proposed changes to the tax code. After complementing President Obama on his emphasis on manufacturing, new technology and innovation, they expressed concern that his rhetoric and proposed tax changes would negatively impact the United States general aviation industry which has about 1.2 million jobs linked to it, contributes about $150 billion annually to the U. S. economy, and is a major source of exports.

During the severe economic downturn in 2008, ill-informed criticism of corporate jets and business aviation exacerbated the challenges facing our industry, which led to depressed new aircraft sales and jeopardized very good, high-paying jobs throughout the United States. More than 20,000 highly skilled IAM members were laid off in this industry.

As our industry looks to begin a recovery and the workforce returns to their high-skilled jobs, we are very concerned that the rhetoric coming from some in your Administration will lead to similar economic difficulties. While such talk may appear to some as good politics, the reality is that it hurts one of the leading manufacturing and exporting industries in the United States. And it adds to the pain so many working families have endured.

Ed Bolen, The President and CEO of the National Business Aviation Association, a lobbyist, which represents more than 8,000 companies which serve the business aviation . . .

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McKenzie Wark’s The Beach Beneath the Street: The Everyday Life and Glorious Times of the Situationist International

Book cover © Verso, 2011

In the Romantic mythologies of the market niche formerly known as the counterculture, the Situationist International occupies a special place. Founded officially in Alba, Italy, in 1957 and dissolved in 1972, the SI sought alternatives to the strictures of the capitalist ruling order by exploring techniques for opening up experience to the fulfillment of authentic desire. Among those techniques were derive, the drift, unplanned excursions typically into the urban environment to uncover its objective and subjective conditions; detournement, diversion or derailment, the appropriation and alteration of images and other expressions of the market system that would expose their contradictions; and the potlatch, grand expenditures of time and resources in defiance of capitalist rationality and utility. The SI is said to have played a leading role in the general strikes in France in May 1968, inspired the fashion, music, and lifestyles of 1970s punk subculture, and set the agenda for postmodern media interventions such as, sampling, and other forms of hacktivism. McKenzie Wark’s new book The Beach Beneath the Streets: The Everyday Life and Glorious Times of the Situationist International takes its title from one of most the famous SI phrases from May ‘68: “Sous les paves, la plage!” (“Under the pavement, the beach!)

Given his profile as a prominent contemporary media theorist, it should come as no surprise that Wark has been heavily influenced by Situationism. Indeed, his celebrated book A Hacker Manifesto (Harvard, 2004) took obvious cues from SI frontman Guy Debord’s magnum opus, The Society of Spectacle, both in terms of its sublimely aphoristic form and its cryptic theoretical content. His next book Gamer Theory (Harvard, 2007) was in essence a requiem for the unrestrained spirit of play animating the notion of derive, now corralled within the multilevel structures of computer video games, set by the boundaries of what Wark terms their ruling “allegorithms” (a mashup of the words allegory + algorithm, meant to convey the way in which imaginative possibility has been . . .

Read more: McKenzie Wark’s The Beach Beneath the Street: The Everyday Life and Glorious Times of the Situationist International

Red Jobs, Blue Jobs

Virginia farmers © D. Clow | Flickr

It has now passed into the realm of political cliché that there are red states and blue states. Like so many commonplaces there is a certain truth to the analysis. We expect Mississippi to vote differently than Minnesota, Indiana differently than Illinois, and Vermont differently than New Hampshire (the last a point made elegantly by Jason Kaufman in describing the divergence of political cultures). States have different political cultures, which are based on their histories, their values, and their economies.

However, even in the most garishly red of states, Democrats often get 2/5 of the vote, and the same is true in the most azure domains for Republicans. But what are we to make of these divides and these common tendencies? A potentially more powerful way of understanding politics is to recognize that even more than geography, occupations have political cultures. It is very often true that you vote as you work. While this has been recognized by political consultants as they target their mailings and by sociologists who examine what produces individual-level voting decisions by studying broad occupational categories, the red job/blue job divide has not captured the public which thinks in terms of land.

Research from the General Social Survey run by the National Opinion Research Center at the University of Chicago asked respondents their political preferences and their occupations. Based on surveys from 1996 to 2008, sociologists David Grusky and Kim Weeden constructed occupational categories which can be compared in light of political affiliations. The surveys focus on the basic division between liberals and conservatives (and self-professed moderates, who typically comprise half to two-thirds of any occupational group). While even these categories are somewhat broader than are desired for the examination of the local cultures of work, they serve adequately for making this point.

The results demonstrate vividly that there are substantial differences between jobs. For example, fewer than 5% of all bartenders consider themselves to be conservatives, while 27% admit to being liberals. This is a ratio . . .

Read more: Red Jobs, Blue Jobs