The Metrics of Protest: Black Friday and Low-Wage America

Black Friday at Walmart © Dustin | BlackFriday.com

The headline on the front page of the Thanksgiving Day The New York Times: “Opening Day for Holiday Shopping Shows Divide.”

The next day – Black Friday – Bloomberg ran a story with the headline “U.S. Workers’ Pay Slide Poses Consumer Risk. ”

It may turn out to have been a “Black Friday” for top end retailers, but it’s a bleak season for low income America and the businesses that cater to it. According to the Times’ story: “Wal-Mart’s profits declined in the third quarter as it kept many prices low so its shoppers could afford them.” Michael T. Duke, Wal-Mart’s chief executive, told analysts that ‘There is a real sense that the economic strain is taking its toll.” Without the fuel of credit that had increasingly been required to power spending by low-income workers, Wal-Mart now has to resort to layaway plans for its shoppers.

As 10 percentage points of national income has been directed away from the bottom 80% to the top 1% since 1979, those paid the lowest wages have seen their buying power erode the most. While the quality and quantity of education force can explain much of the distribution of income within the bottom 99% (together with personal networks, effort and luck), differences in educational attainment have nothing to do with the transition of the American economy to extreme inequality since the 1970s. It is also quite clear that among developed countries, America is exceptional: only the UK comes close to US-style extreme inequality.

The lesson is that extreme inequality is the outcome of political choices that have empowered a tiny minority. It has to do with political choices, the way institutions function, and social norms; it is not a natural market payoff to investments in education. The shift of income to the top .1% (which has driven the growth of the top 1%) reflects the market power of a small number of CEOs and finance, medical and legal professionals.

Here are some metrics that focus on what has happened to the wage/salary earnings of American workers.

Employee compensation in the . . .

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Fracking in the Finger Lakes

Canandagua Lake Vineyard © Finger Lakes Visitor Connection

The expansion of natural gas drilling in the Finger Lakes region of New York State poses a significant threat to vital water, land and air resources. Large scale, widespread drilling operations would permanently alter the landscape and cultural heritage of the region. The drilling and extraction processes, known as horizontal hydraulic fracturing, or fracking, are currently under review by the State Department of Environmental Conservation (DEC). In the near future, DEC is expected to finalize regulations for the fracking industry and to begin processing new permit applications, amid plenty of controversy. Public comments on the proposed regulations, and accompanying Supplemental Generic Environmental Impact Statement, can be submitted to DEC through December 12, 2011.

Proponents of fracking assume that an inevitable economic boom will sweep through the region as soon as the first new wells are permitted. While some property owners have already entered into lucrative leases to their underground mineral rights, many others are being left out of the leasing bonanza, by choice or by chance. This is a map of Finger Lakes properties with gas leases (in pink):

The map does not indicate the number of new wells that could be sited in the region, but it is obvious that the gas industry anticipates a huge expansion of drilling in the Southern Tier and Finger Lakes. While a gas lease does not equal gas drilling, it is a necessary precursor.

Multi-well pad and horizontal drilling technologies enable a single well pad to produce gas across numerous surrounding leases. Beyond the 2-3 acre drilling sites, fracking requires an extensive network of pipelines, compressor stations and trucking routes. All of these fracking components pose distinct threats to human health and the environment in the region.

There are numerous documented examples of well water contamination from fracking operations. The issue is not the injection of fracking fluids deep underground. It is what happens to those toxic fluids once they are used up and pumped . . .

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The Metrics of Protest: Extreme Inequality and the Payoff to College Degrees

Changes in income shares, 1979 - 2007 © Paul Krugman | krugman.blogs.nytimes.com

Not so long ago, during the first several decades of the post-war era, the American dream of a broad and growing middle class was a significant reality. But since the 1970s the shape of the American distribution of income has steadily become more like an hourglass: as the middle has collapsed, large numbers of workers earn very low wages and at the other end of the scale, very few take home gigantic sums.

Figure 1 shows the extraordinary reallocation of national resources from the bottom 80 percent of the population to the top 1 percent, while those in between (81st-99th) have, as a group, shown no change in their share of total income.

FIGURE 1

Source: CBO Report “Trends in the Distribution of Household Income Between 1979 and 2007”

Not surprisingly, over the last three decades many households in the bottom 80 percent have faced sharp declines in their standard of living as the costs of health care, higher education, food and energy have risen far faster than the wage check. The result has been the accumulation of unprecedented levels of mortgage, credit card, and student debt.

I have argued that the roots of the economic crisis can be found in the shift in economic thinking and public policy toward free market fundamentalism in the 1970-80s, which fueled the rise in debt, financial instability, and extreme inequality. We’ve seen a toxic mix of financial deregulation, evisceration of protective labor market institutions (like collective bargaining and the minimum wage), a political system corrupted by campaign contributions, and an increasingly polarized education system that performs poorly for most of those in the 80 percent and terribly for the most disadvantaged communities.

But this is not at all the conventional wisdom. Rather, it has become widely accepted that the government is the root cause of the economic crisis of 2008-11 and the decline in living standards for the vast majority. The problem in this conservative vision is too much regulation, too much taxation, too much encouragement of home . . .

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The Metrics of Protest: “99 Percent”

© 2009 Avi Feller and Chad Stone (based on data from Thomas Piketty and Emmanuel Saez)  | cbpp.org (Center on Budget and Policy Priorities)

Occupy Wall Street protests have spread across the country behind the rallying cry that the “99 percent” have been left behind. There is a sense of outrage that the “system” is not just rigged in favor of the elite – something like the top 1% – but has spun out of control, leading to an accelerating concentration of wealth and power in the hands of the very few.

Wage stagnation, the explosion of health and education costs as the American welfare state shrinks, and above all the financial manipulation of debt has generated extraordinary profits on Wall Street and massive indebtedness and housing foreclosures on Main Street. Losses from outrageous risk-taking by too-big-to-fail financial institutions are made good by the taxpayer, who is told there is no alternative.

This new gilded age political-economic system can be thought of as the interlocking trifecta of a mostly degraded and increasingly dual educational system, a financial system that became mostly unregulated by either law or social norms, and a political system increasingly corrupted by money.

The educational system has promoted a meritocracy of cumulative advantage. The vast majority of American students experience primary and secondary schools during which they fall far behind their peers in much of the rest of the developed (and even less-developed) world, and then face costs of post-secondary education that produce a level of debt that cannot possibly be repaid out of earnings. But the elite reproduces itself with an ability to pay for college and graduate school educations whose superiority has steadily grown, while at the same time feeling entitled since the educational process has also become extraordinarily competitive.

The financial sector was systematically deregulated as free market orthodoxy took off in the 1980s. This deregulation served to extract resources from the “real” economy and concentrated it in the bank accounts of a tiny elite, who are increasingly those same victors of the Darwinian educational competition. As the concentration of income at the very top of the distribution proceeded in the 1990s-2000s, . . .

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Occupy Mall Street

Occupy Wall St. protesters in Zuccotti park. Woman carrying sign saying "People before profit" © Anette Baldauf

Last Saturday afternoon, as I was walking through Soho, I imagined the people marching on the street carrying cardboard signs instead of shopping bags. For a moment, the signs of this massive procession did not read “H&M”, “Gap” and “Uniclo” but “People, before profit,” “We are the 99 percent” or “I’d rather be working.” The rush and urgency in their expression did not concern the next bargain, but the future of America. I was on my way to the Tribeca Architecture and Design Film Festival, where our documentary film was going to be screened. “The Gruen Effect” is the story of the Austrian born architect Victor Gruen, who attempted to recreate Vienna’s urbanity in the sprawling suburbs of postwar America and invented the shopping mall.

Already in the late thirties Gruen and his then wife, Elsie Krummeck, promoted the building of “shopping towns,” which promised to combine commercial and civic spaces and counter the a-geography of the suburbscape with a cultural and social center. They claimed that the complexes would ease women’s lives, and integrate shopping into living. But as de-industrialization proceeded, the power of consumption began to drive the US economy, and shopping prepared the path to post-industrialism. The shopping mall became a blueprint for inner city re-development and an engine of the post-industrial economy. It integrated living into shopping. Looking back upon the translation errors and ironies of his life, Gruen argued at the end of his life that developers had high-jacked his concept of the shopping town. He “disclaimed paternity once and for all” and refused to “pay alimony to those bastard developments.” (Film on Gruen embedded below.)

Walking along Broadway and watching the crowd moving in and out of stores, I realized again how much the film was a story about the city of New York. I wished the voices from Zuccotti Park, located . . .

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The Republicans, Obama, and Occupy Wall Street

Republican Presidential candidates debate in Nevada (showing Ron Paul, Herman Cain, and Mitt Romney), Oct. 18, 2011 © Dave Maass | Flickr

We live in difficult times, but the political capacity to address the difficulties may be emerging in America, none too soon and in the right place.

The Republican presidential nomination debates reveal how far the GOP is from addressing the concerns of the American public. It seems, as a consequence, that President Obama’s re-election is likely, even with the persistent tough economic situation. He makes sense. The Republicans don’t. They offer the 999 plan and other fantasies as economic policy. Obama proposes sensible realistic programs, the jobs bill and the like. The re-election, further, may very well have very significant consequences. The Obama transformation, which I have reflected upon in an earlier post, may proceed and deepen. I have this hope because of Occupy Wall Street.

OWS is already a resounding success, and it has the potential to extend the success for months, indeed, probably for years ahead. We at Deliberately Considered have been discussing the occupation. Scott and Michael Corey, like observers elsewhere, are concerned that the occupiers don’t have a clear program. They seem to be a hodgepodge of disparate misfits, anarchists, druggies, vegans, feminists, trade unionists, environmentalists and veterans of left-wing battles past, with no clear unified goals. The political causes they espouse seem to be as varied as they are as a group. They express a sentiment and sensibility, but they do not propose any policy. Yet, I think it is crucial to note that there is a simple and telling coherence in the protest and that there is a discernable achievement already that is being deepened as the occupation persists.

The occupiers are telling a simple truth. America is becoming an increasingly unequal society. The rich are getting rich and the poor (and working people) are getting poorer, especially the young and people of color. The occupiers call upon the media, the political class and the population at large to take notice, and notice is being taken as the occupations spread around the country and the world.

. . .

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In Review: OWS, The Ground Zero Occupation

Occupy Wall Street protesters during Solidarity March, NYC, Oct. 5, 2011 © Lisa Lipscomb

I think that the form of Occupy Wall Street expresses its content, as Scott Beck showed in his earlier post on the occupation. I observe, further, that the way people use social media contributes to this form, as does the setting of the occupation. And I believe deliberating about the movement and connecting the debate to other political, social and cultural activities are keys to the democratic contribution of the movement to broader politics in America and beyond.

Jenny Davis in her post last week makes cogent points about the role of social media in social movements in general and in Occupy Wall Street in particular. Her key observation is very important. Digital activism is not only a means to the end of embodied social action. It also is an end in itself, a new type of politics that can make the previously hidden visible and can contribute to what she calls “the zeitgeist,” what I would prefer calling the prevailing common sense. I would add that it can constitute a space for free action, a public, a point made by Judith Butler in a recent lecture. This is especially telling as David Peppas and Barbara note in the two comments to Davis’s post, because the occupation doesn’t have a simple meaning or political end. The act of protesting, as well as the act of posting, makes the world look differently, and looking at the world differently is what is most needed at this time, to face up to stark social realities that have been ignored and develop the capacity to act on this. It is interesting how the way this happens is structured by social media actions, no longer a monopoly of the mass media, while the power of the movement, is quite material. It’s embedded in a specific geography and its link to political culture.

The place of the occupation in an important way contributes . . .

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A Hunger Strike in Albanian Mines: A Quest for Justice and Sound Public Policy

Underground hungerstrike at Bulqiza mine, the 13th day © 2011 Adela Halo

This summer, a group of miners in Albania’s richest chrome mine in Bulqiza staged a spectacular strike. Ten miners barricaded themselves 1400 meters, nearly one mile, underground and refused to eat and drink. The workers’ drastic measure followed earlier protests both at their own mine in the north and in the capital Tirana. After 23 days of underground protest, ten miners replaced the first weakened crew, continuing the hunger strike to express opposition to low wages, unsafe working conditions, poor management, and the lack of investment in the mine in general. The hunger strike was part of a three month long work stoppage by some 700 Albanian miners. But Albania is no Tunisia, Egypt or Libya. While being one of Europe’s poorest and most corrupt countries, it has been dealing with slowing economic growth and weak political leadership beyond the attention of the global media. The miners don’t seem to be the vanguards of a civil rebellion, but rather the players in an act overshadowed by an ongoing fight between two political parties and their leaders. DeliberatelyConsidered asked Ermira Danaj, an Albanian participant in the Transregional Center for Democratic Studies’ Democracy and Diversity Institute, for a report. – Esther Kreider-Verhalle

DC: Were any of the miners’ demands met?

Ermira Danaj: This time, the miners have won, but it is one of the very few victories for workers fighting for their rights. The owners of the mine promised to continue investments in the mine, in a transparent manner. They also agreed to improve working conditions, to pay a 13 month wage, to pay the workers for half the period they were on strike, and a wage increase of 20%. During the first hunger strike, miners from other regions and workers from other sectors, facing the same problems, had started showing their solidarity with the miners. This was very unusual. After a regional court had decided that the protesters had to leave the mine, the miners left . . .

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The People Should Lead: The Meaning of the Occupy Wall Street Movement

Wall St. protest sign saying "We are the 99%" © Scott Beck

The other day someone working for the mainstream media (MSM) seemed to be undecided about how exactly they should disparage a burgeoning movement. First the hypertext link on MSNBC’s website read, “Protesters want to tame Wall Street’s wild ways, but they’re a little wild themselves.” Later in the day it read, “Wall Street protesters spread murky message.” In both cases, clicking on the link would reveal the title of the article, “Familiar refrain: Wall Street protest lacks leaders, clear message,” with the opening lines, “It’s messy. It’s disorganized. At times, the message is all but incoherent.” With the accompanying photos focusing on the disheveled belongings of the protesters scattered about their home base, Liberty Park, the theme was that the seeming lack of organization and consensus of the “Wall Street Protesters” was analogous to the dysfunctional state of American political discourse. Being unsympathetic, skeptical, or even cynical, reporters do find what they’re looking for. Yet such a jaundiced look at the protests, as is typical of much of the media’s coverage, misses something strikingly obvious: what has largely faded in the rest of the country is still alive in Liberty Park– hope and change.

Last week, a young couple from Virginia Beach paid a visit to the park with their two children, one about five or six years old, the other not older than three. They met a young man who was writing a message on a cardboard to protest corporate malfeasance. The couple asked him to explain to their eldest daughter what it was he was protesting about. The young man smiled, and looked at the girl, who shyly averted his glance. “So basically, a few people have a lot of power, and they’re using that power to take advantage of everybody else.” At that point, the girl began to give the young man her undivided attention. “You know, it’s like a bully, we’ve all had plenty of bullies in our lives, and they think of different ways to better their position. And what we have is just that, on a larger scale, . . .

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The Megapower Elite

Book cover of The Power Elite by C. Wright Mills, 2000 paperback edition © Oxford University Press

“Power is the ultimate aphrodisiac.” Henry Kissinger, 1973

I recently returned to teaching selections from C. Wright Mills’s 1956 book, The Power Elite. The book was written in the midst of unprecedented prosperity in America, what economists Claudia Goldin and Robert Margo have called “the great compression,” when the levels of social inequality that peaked in 1929 and muddled through the next two decades were lowered and stabilized in the 1950s and 60s. It was the “good times” fifties. But Mills saw acutely that something had changed in America; that an unprecedented centralization of power “not before equaled in human history” had also been set in motion as the aftermath of World War II, whose continued development would undermine democratic institutions.

Mills claimed that “the Big Three” institutions—Corporate, Government, and Military—powered up into an interlocking directorate. Though he does not mention them, two coups of that era engineered by the CIA provide ample evidence of what Mills was describing. The overthrow of the Iranian government in 1953, which installed the Shah of Iran, was undertaken to secure British and American oil interests. Corporate oil, political, and military (particularly the burgeoning CIA) institutions realized their common interest in overthrowing the democratically elected regime of Mosaddegh. The long-term consequence was the empowerment of Islamic fundamentalism in the overthrow of the Shah in 1979.

In 1954 the CIA directed the overthrow of the democratically elected government of Guatemala, in order to keep the profits of United Fruit at their maximum. The secretary of defense, John Foster Dulles, his brother Allen Dulles, the head of the CIA, and the UN ambassador, Henry Cabot Lodge, Jr., all had investments in United Fruit, and as David Halberstam states in his book The Fifties: “The national security complex became, in the Eisenhower years, a fast-growing apparatus to allow us to do in secret what we could not do in the open. This was not just an isolated phenomenon but part of something larger going on in Washington—the transition from an isolationist America . . .

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