Posts Tagged ‘working-class’

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Mainstream economists and politicians have answers for everything.

Lose your job? Well, that’s just globalization and technology at work. Not much that can be done about that.

And if you still want a job? Then just move to where the jobs are—and make sure your children go to college in order to prepare themselves for the jobs that will be available in the future.

The fact is, they’re not particularly good answers. And people know it. That’s why working-class voters are questioning business as usual and registering their protest by supporting—in the case of Brexit, the 2016 U.S. presidential election, the 2017 snap election in Britain, and so on—alternative positions and politicians.

On the first point, it’s not simply globalization and technology. Large corporations, which employ most people, are the ones that decide—in the context of a global economy and by developing and adopting new technologies—when and where some jobs will be destroyed and new ones created. They use the surplus they appropriate from their existing workers and utilize it to determine the pattern of job destruction and creation, in order to get even more surplus.

Thus, in April 2017 (according to the data in the chart at the top of the post), employers eliminated 1.6 million jobs in the United States. In January 2009, things were even worse: corporations destroyed 2.6 million jobs across the U.S. economy. Of course, they also create new jobs—often in different companies, industries, regions, and countries. That leaves individual workers with the sole decision of whether or not to chase those jobs, since as a group they have absolutely no say in when or where old jobs are destroyed and new ones created.

What about their children and the advice to go to college? We already know the idea that higher education successfully levels the playing field across students with different backgrounds is a myth (and sending more kids to college doesn’t do much, if anything, to lower inequality).

Now we’re learning that, when states suffer a widespread loss of jobs, the damage extends to the next generation, where college attendance drops among the poorest students.

That’s the conclusion of new research Elizabeth O. Ananat and her coauthors, just published in Science (unfortunately behind a paywall). What they found is that

local job losses can both worsen adolescent mental health and lower academic performance and, thus, can increase income inequality in college attendance, particularly among African-American students and those from the poorest families.

Their argument is that macro-level job losses are best understood as “community-level traumas” that negatively affect the learning ability and the mental health not only of young people who experience job loss within their own families, but also of the other children in states where the destruction of jobs is widespread.

So, the problem can’t be solved by forcing individual workers to have the freedom to chase after jobs and send their children to college. Nor is the predicament confined to the white working-class. In fact, the effects of job losses are similar, but even worse, among African-American youth.

That’s why Ananat argues that

white working class people and African-American working class people are in the same boat due to job destruction. Imagine the policies we could have if folks found common ground over that.

And, I would add, those policies need to go beyond the “active labor market policies”—such as “rigorous job training and active matching of worker skills to employer needs”—the authors, along with mainstream economists and politicians, put forward.*

We also need to reconsider the fact that, within existing economic institutions, employers are the only ones who get to decide when and where jobs are destroyed and created. Giving workers the ability to participate as a group in the decisions about jobs—within existing enterprises and by assisting them to form their own enterprises, would improve their own mental health and that of the members of the wider community.

Such a change would also transform young people’s decisions about whether or not to go to college. It’s not just about jobs in the new economy. It would allow them to demand, as women in Lawrence, Massachusetts did over a century ago, both “bread and roses.”

 

*Policies to help “disadvantaged workers, especially African Americans, Hispanics and rural residents,” also need to go beyond encouraging the Fed to keep interest-rates low. That still leaves job decisions in the hands of employers.

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A minimum-wage job should be enough to satisfy workers’ minimum needs, which of course includes putting a roof over their heads.

In reality, it doesn’t. A person working a full-time minimum-wage job will find it virtually impossible to rent an affordable home anywhere in the United States, according to a new study by the National Low Income Housing Coalition.

The report reveals that in fact there is not a single county or metropolitan area in which a minimum-wage worker can afford a two-bedroom home, which the federal government defines as paying less than 30 percent of a household’s income for rent and utilities. And in only 12 counties in the entire country is a one-bedroom rental home affordable.

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On average, a full-time worker in the United States must earn $21.21 per hour to afford a modest two-bedroom apartment and $17.14 to afford a one-bedroom apartment—figures that roughly correspond to the mean and median hourly wages in the country. As for everyone who earns less than that—the millions of low-wage workers, seniors and people with disabilities living on fixed incomes, and other low-income households—housing costs are simply “out of reach.”

Another way of seeing the problem is to calculate how many hours a minimum-wage employee would have to work to afford a one-bedroom rental home. Even Puerto Rico, which would require the fewest number of hours (45), exceeds the normal 40-hour workweek. At the other end, a minimum-wage worker in New Jersey would have toil more than two and a half times the normal week (106 hours) to afford a one-bedroom rental home.

It’s clear that private markets—in labor and housing—have failed American workers. They can provide neither decent-paying jobs nor the affordable housing for millions of members of the U.S. working-class to put a roof over their heads.

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Emily Badger is right:

The new White House budget proposal is built on a deep-rooted conservative belief: The government should help those who are willing to work, and cull from benefit rolls those who aren’t.

But it’s also a deep-rooted liberal belief. Lest we forget, it was Bill Clinton who signed the original let-them-work-or-starve welfare reform in 1996 (two years after signing the Violent Crime Control and Law Enforcement Act, the largest crime bill in history).*

As I argued back in March,

liberals and conservatives agree on very little these days, especially now that we find ourselves in the era of Donald Trump. But they do seem to find common ground on one thing: the so-called dignity of labor.

Basically, liberals and conservatives have long shared the view that government programs should be redesigned to make sure people—especially the members of the working-class, white, black, and Hispanic—are forced to have the freedom to sell their ability to work to someone else.

Donald Trump’s first budget is merely the latest proposal to implement this view, held by liberals and conservatives alike.

 

*In general, according to the Center on Budget and Policy Priorities, work requirements have done little to reduce poverty, and in some cases, they push families deeper into it:

Work requirements rest on the assumption that disadvantaged individuals will work only if they’re forced to do so, despite the intensive efforts that many poor individuals and families put into working at low-wage jobs that offer unpredictable hours and schedules and don’t pay enough for them to feed their families and keep a roof over their heads without public assistance of some kind.  Too many disadvantaged individuals want to work but can’t find jobs for reasons that work requirements don’t solve:  they lack the skills or work experience that employers want, they lack child care assistance, they lack the social connections that would help them identify job openings and get hired, or they have criminal records or have other personal challenges that keep employers from hiring them.  In addition, when parents can’t meet work requirements, their children can end up in highly stressful, unstable situations that can negatively affect their health and their prospects for upward mobility and long-term success.

 

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Apparently, “late capitalism” is the term that is being widely used to capture and make sense of the irrational and increasingly grotesque features of contemporary economy and society. There’s even a recent novel, A Young Man’s Guide to Late Capitalism, by Peter Mountford.

A reader [ht: ra] wrote in wanting to know what I thought about the label, which is admirably surveyed and discussed in a recent Atlantic article by Anne Lowrey.

I’ll admit, I’m suspicious of “late capitalism” (like other such catchall phrases), for two main reasons. First, it presumes and invokes a stage theory of development, which relies on identifying certain “laws of motion” of capitalist history. That’s certainly the way Ernest Mandel understood and developed the term—as the latest in a series of necessary stages of capitalist development. For me, the history of capitalism is too contingent and unpredictable to obey such law-like regularity. Second, “late capitalism” is meant to characterize all of a certain stage of economy and society, thereby invoking a notion of totality. Like other such phrases—I’m thinking, in particular, of “globalization,” “empire,” and “neoliberalism”—the idea is that the entire world, or at least what are considered to be its essential elements, can be captured by the term. As I see it, capitalism exists only in some parts of the world, some but certainly not all economic and social spaces, and, even when and where it does exist, it assumes distinct forms and operates in different modalities. Using a term like “late capitalism” tends to iron out all those differences.

So, I’m wary of the notion of “late capitalism,” which for both reasons may lead us astray in terms of making sense of and responding to what is going on in the world today.

At the same time, I remain sympathetic to the idea that “late capitalism” effectively captures at least some dimensions of contemporary economic and social reality. Here in the United States, there’s clearly something late—both exhausted and exhausting—about contemporary capitalism. In the wake of the worst crises since the first Great Depression, growth rates remains low, leaving millions of workers either unemployed or underemployed. Wages continue to stagnate, even as corporate profits and the stock market soar. And the unequal distribution of income and wealth, having become increasingly obscene in recent decades, has ushered in a new Gilded Age.

As Lowrey explains,

“Late capitalism” became a catchall for incidents that capture the tragicomic inanity and inequity of contemporary capitalism. Nordstrom selling jeans with fake mud on them for $425. Prisoners’ phone calls costing $14 a minute. Starbucks forcing baristas to write “Come Together” on cups due to the fiscal-cliff showdown.

And, of course, the election of Donald Trump.

What is less clear is if “late capitalism” carries with it a hint of revolution, whether it contains something akin to the idea that the contradictions of capitalism create the possibility of a radical alternative. Even if contemporary capitalism is exhausted and we, witnessing and being subjected to its absurdities and indignities, are being exhausted by it—that doesn’t mean “late capitalism” will generate the political forces required for its being replaced by a radically different way of organizing economic and social life.

But perhaps that’s asking too much of the concept. If it merely serves to galvanize new ways of thinking, to recommit us to the task of a “ruthless criticism of everything existing,” then we’ll be moving in the right direction.

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Think about it: food makes up a large (5.5 percent) share of the U.S. economy. But millions of American workers struggle to put food on the table.

According to the Center on Budget and Policy Priorities (pdf), the nation’s largest anti-hunger program, the Supplemental Nutrition Assistance Program, provides over 40 million low-income people with the means to purchase food in a typical month.*

Moreover, the share of SNAP households with earnings has been growing since the 1990s. As is clear from the chart above, the share of all households with earnings in an average month while participating in SNAP rose from 19 percent in 1990 to 32 percent in 2015. Among households with children and a non-elderly, non-disabled adult, about 60 percent have earnings while participating in SNAP.

And it’s pretty clear why American workers are forced to turn to SNAP:

  • They work in occupations that pay low wages.
  • Their jobs often have scheduling practices that contribute to workers’ low and volatile incomes.
  • Most low-wage jobs lack benefits such as paid sick leave and health insurance.

The result is that roughly 14.9 million workers, or about 10 percent of all workers in the United States, were in households where someone participated in SNAP in the last year.

The problem is that, for millions of working Americans, work does not itself guarantee steady or sufficient income to provide for themselves and their families. Thus, they are forced to turn to SNAP to obtain supplementary income to buy food.

SNAP, of course, is not the solution. It’s a social bandaid applied to a private problem of an economy that thrives on employing workers at low wages, on irregular schedules, with few benefits.

Creating a social economy—in which people who do the work have a real say in how the economy is organized—is the only way American workers will finally be able to put food on the table.

 

*United States Department of Agriculture outlays increased by 48 percent from fiscal 2006 to fiscal 2015, with the largest increase coming from food and nutrition assistance programs:

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We don’t need Louisiana Detective Rodie Sanchez coming out of retirement to solve the crime against the members of the working-class currently being committed in the United States.

We already know many of the details of the crime. We also know the identities of both the victims and the serial killer. The only real mystery is, what’s the country going to do about it?

The investigation itself is being painstakingly carried out by Anne Case and Agnus Deaton (pdf). They show, with abundant statistics, that mortality trends in the United States run counter to those in other rich countries, where they have been steadily declining for decades.

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The headlines, of course, have been about one group—middle-age white non-Hispanics with a high-school degree or less—whose mortality rates, especially those attributed to “deaths of despair” (drug overdoses, suicides, and alcohol-related liver mortality), increased from 1998 through 2015.* The focus in on that group for a number of reasons, including the fact that increasing rates for them (as against blacks and nonwhite Hispanics) have all but erased the racial gap in mortality among non-college-educated Americans—and, of course, because of the prominence of “white working-class” voters in explanations of Donald Trump’s electoral victory.

But we also need to go beyond the headlines and understand that, while rates for different ethnic and racial groups in the United States have moved in opposite directions in recent decades, the rates for working-class blacks and Hispanics are still very high—and, in recent years (as can be seen, in the case of blacks, in the chart at the top of the post), they’ve also begun to rise.

That’s the real crime story. All three groups within the American working-class—whites, blacks, and Hispanics—are being killed at abnormally high rates compared to the populations of other rich countries.

And the serial killer? Case and Deaton have a much more difficult time working in this area. That’s because they follow the headlines and emphasize the differences in the long-term trend rates and lose sight of the larger picture. So, they discount the role played by income inequality and, instead, endorse Charles Murray’s story about the decline in traditional American virtues among working-class whites (which I wrote about back in 2012).

The fact is, the labor-market factors identified by Case and Deaton—which have negatively affected whites, blacks, and Hispanics with a high-school degree or less—have become more severe as inequality has soared and the social safety net ripped apart in the United States from the early 1970s onward. The upward trend for whites and the narrowing of the racial gap, as significant as they are, shouldn’t hide from view the more general problem (as I wrote about in 2015) of a large and growing gap between the life expectancies (for both men and women) of those at the top and bottom of the distribution of income in the United States.

American TV is currently captivating viewers with stories of people accused of committing horrific acts. It’s time, however, to focus on the story of an economic system that has created its own killing fields.

 

*Mortality increases for whites in midlife have also been paralleled by morbidity increases, including deteriorations in self-reported physical and mental health, and rising reports of chronic pain.