Class Matters: The Not So Hidden Theme of the State of the Union

President Barack Obama delivers the State of the Union address in the House Chamber at the U.S. Capitol in Washington, D.C., Feb. 12, 2013. © Chuck Kennedy | WhiteHouse.gov

I anticipated the State of the Union Address, more or less, correctly, though I underestimated Obama’s forthrightness. He entered softly, calling for bi-partisanship, but he followed up with a pretty big stick, strongly arguing for his agenda, including, most spectacularly, the matter of class and class conflict, daring the Republicans to dissent, ending the speech on a high emotional note on gun violence and the need to have a vote on legislation addressing the problem. Before the speech, I wondered how President Obama would balance assertion of his program with reaching out to Republicans. This was an assertive speech.

The script was elegantly crafted, as usual, and beautifully performed, as well. He embodied his authority, with focused political purpose aimed at the middle class. This got me thinking. As a sociologist, I find public middle class talk confusing, though over the years I have worked to understand the politics. I think last night it became clear, both the politics and the sociology.

Obama is seeking to sustain his new governing coalition, with the Democratic majority in the Senate, and the bi-partisan coalition in the House, although he is working to form the coalition more aggressively than I had expected. He is addressing the House through “the people,” with their middle class identities, aspirations and fears.

In my last post, I observed and then suggested:

“Obama’s recent legislative victories included Republican votes on the fiscal cliff and the debt ceiling. I believe he will talk about the economy in such a way that he strengthens his capacity to draw upon this new governing coalition. He will do it in the name of the middle class and those aspiring to be in the middle class. This is the formulation of Obama for ordinary folk, the popular classes, the great bulk of the demos, the people. In this speech and in others, they are the subjects of change, echoing Lincoln’s Gettysburg Address: government of the middle . . .

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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 . . .

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

Have You Ever Been Experienced?

Sign from Madison protest rally, Feb. 2011 © kristy | Flickr

Let us call experience seniority. And let us mean by this that people who work over extended periods of time develop, ripen, face the hard knocks of life day in and day out, and that they usually gain from the experience.

To be experienced is to have spent the time, paid the dues of the job, learned what it takes, put out the raw energies and skills required. And more: to be experienced means that one has internalized all these things, and that one can bring to the everyday situation of work an array of competencies that the inexperienced are unaware of. That is why this precious game of life requires the serious engagement with it. Engagement brings, even if only eventually, an enlargement and a subtilization of competencies, things that one has in one’s hands, in one’s plan for the day, in one’s skill set, in one’s general work habits, all which add up to becoming experienced.

But consider: “senior” in America typically means old people, not only not at the top of their game, but also not necessarily competent. In the right-wing attack on seniority in the public sphere, and unions more generally, seniority translates into deadwood. Now every institution has some tiny percentage of deadwood in it, people who have disengaged from their work experience. But to assume, for example, as Republican state legislatures are in the process of doing, that teachers with years of experience are the deadwood whose seniority rights have to be eliminated (meanwhile ignoring the administration deadwood), is sheer folly. It completely ignores how those experienced teachers incorporate a reservoir of potential mentoring and actual “how-to” knowledge. It is a way of promoting inexperience at the cost of experienced professionals. And isn’t that what the mad-hatters’ Tea Party celebrates in politics as well: lack of political experience as a qualification for office?

Seniority in the workplace means that the years and decades you have put in paying your dues to the job count for something in the work community, and that a larger and deeper outlook and ability is something . . .

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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