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Old 04-15-2009, 04:09 AM   #1 (permalink)
 
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bulletins from the american class war

Quote:
Hands off our recession

America's wealthiest need to be told: this is a people's tragedy - don't try to muscle in on it


The global economic meltdown has reached the stage where even the planet's wealthiest people are beginning to feel it. According to the New York Times, executives who once broke bread at the finest bistros in Gotham are holding meetings in diners. High-powered attorneys have been spotted eating in restaurants that take coupons. Socialites occasionally wear previously worn dresses to formal events.

Noting, soberly, that this "is a tough time for the very wealthy", the Wall Street Journal reports that a growing number of cash-strapped plutocrats are reduced to ferrying themselves around in used Bentleys. Indeed, in its annual survey of the world's richest people, Forbes says the number of billionaires around the world shrank from 1,125 to 793 last year, their total net worth plummeting to $2.4tn from $4.4tn.

The signs that the rich are taking it on the chin are everywhere. Paris Hilton's TV reality show has been forced to slash its budget by 10%. Free events at the public library are attracting scions and scionesses. And the wealthy are having no luck in persuading Congress to slash the dreaded estate tax that kicks in when rich people kick the bucket.

The avalanche of stories about the plight of the wealthy is not surprising. Journalists get tired of writing about starving children, downsized auto workers and destitute teachers; after a while these sob stories start to take on a generic feel. The rich make better copy; they are more colourful, have a better turn of phrase than the other classes, and supply excellent anecdotes about how the recession is impacting on their fortunes: "We had to cancel the anniversary party in the temple of Luxor and fire both sommeliers! Can you imagine?"

In normal recessions, these pity-the-rich stories go down reasonably well. It is an oft repeated verity that Americans are not afflicted by congenital hatred of the wealthy. This is because America is an aspirational society. As the saying goes, the American sees a man in a Cadillac and dreams of the day he can drive a big car, while the Frenchman sees a man in a Cadillac and dreams of the day he can drag him out and make him walk like everybody else.

One reason this compact has worked well for so long is that in truly trying times the rich have had the good sense to keep a low profile. An unwritten law among the well-heeled stipulates that once unemployment hits 8%, it's time to mothball the yacht, cancel the chukka and wear hand-me-down jodhpurs. It's also time to keep your yap shut.

I am not one of those seething populists who despises the rich. I understand that the wealthy pay more than their fair share of taxes, generously fund museums and opera houses, and maintain dainty public gardens everywhere. But they need to understand this is a recession that belongs to ordinary people, and that they cannot be a part of it.

This is no ordinary recession. It's not a fleeting, don't-blink or-you'll-miss-it economic slump like the one in 2001-02. It will be the worst recession in most people's lives. These sorts of recessions do not lend themselves well to anecdote. The rich have to understand that we are not all in this together. People's retirement plans have been smashed. They have lost their houses. Future generations will be laden with debt for decades. Some people will be out of work for years. Some will never work again.

Most of us can deal with this. We can tough it out. What we cannot tolerate are any more stories about Saudi billionaires getting taken to the cleaners in the stock market, or socialites wearing pre-worn gowns to galas, or high-powered executives eating at McDonald's. This is a people's tragedy; don't try to muscle in on it. Make yourself useful and go polish the used Bentley. Or hire one of us to do it. We could use the spare cash.
Joe Queenan: Hands off our recession | Comment is free | The Guardian

i put this queenan edito up not because i think it particularly interesting in itself, but mostly because it reflects an obvious but interesting shift that seems to have been unfolding in the states. you see it playing out already here in the tea party thread--all of a sudden, after 35 years of trying to convince us that the wealthy are weathy because they embody all Capitalist Virtues, the right is trying to become populist. a central theme of this populism is---as it always is--questions of class and equitability of distribution of wealth.

for many years, when folk on the left would talk about class war in the united states--which has been continuous, which neo-liberalism was a cover for, an expression of---these same conservatives would talk about memes like "class envy" or, funnier still, blame the people who mentioned class stratification for class stratification, as if the problem lay not in reality but in the words used to describe it.

but now, things have changed, and changed very quickly.

what seems to have come apart is a centerpiece of neoliberalism as it was marketed in the united states, this perverse equation of (a) opposition to the redistribution of wealth, which you'd think would be understood as making socio-economic relations more equal, but which instead came to be seen as some kind of affliction visited upon the Volk by the State, which is entirely outside of society, which is where the Volk live--you know, on a good day when they're not talking about themselves and so aren't pretending they in fact live in some lockean state of nature----this has separated from (b) a fictional moral economy in which economic situation reflects inward virtue and socio-economic hierarchies are natural and capitalism is somehow the system that best enables these natural hierarchies to be expressed.

that was a pretty big deal in the states, remember?
and the thing that is astonishing to me is that the ideology was in fact as stupid as the summary makes it sound.

so now economic crisis has unwound the basis for (b).
the logic of (a) such as it is remains in force out there somewhere.
it's expression is everywhere in conservative populism. it seems to me that (a) IS conservative populism.

the right was playing with these folk for a long time, making itself into a catch-all space for the jurassic right--you saw this happening during the clinton period if you were paying attention---and now the right is having to pay the piper. they're stuck with these people.

meanwhile, at the level of public discourse, a kind of one-dimensional discourse of class war has been surfacing.
there is more to this than the collapse of the american right...but it hardly represents a sudden collective lurch into the marxian tradition of class analysis.

what do you make of the surfacing in the press, in political language, of the question of class?
how do you see it as being framed?
what is it doing? what is it not doing?

i find the queenan piece to be a good example of the superficiality of this language--but have you seen other examples?
post them and talk about what you make of them.

if i'm right, there should be examples from across the political spectrum, so it'd be interesting to see how different positions are trying to frame class as a problem for their own purposes....
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Old 04-15-2009, 05:22 AM   #2 (permalink)
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I will keep my eyes open. However, it is my understanding that American media tends to shy away from discussions of class, as though, perhaps, they fear being labelled socialists. I imagine it's just that they go about it in a roundabout way.

Are you suggesting this is changing?
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Old 04-15-2009, 05:49 AM   #3 (permalink)
 
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that's my basic observation, yes.

in some ways, it's obvious in the way the economic crisis has been "explained" in the us mainstream press---you get lots of references to general subjective comportments ("greed") which is then linked to a particular class fraction (the language of "the bankers" or the "wall street fat cats").

you can connect this to an institutioal interest: if the us press across the board parroted neoliberal claims (using words like "liberalization" or "deregulation") to frame information, and these terms ended up being basic conditions of possibility for the economic situation we're now moving through, preservation of credibility would require that a Problem be acknowledged but that it not be seen as structural, nor that it be seen as following from the way of framing information that the press itself integrated into its modes of presenting information.

so one trend is that you have a surfacing of the language of class conflict, but in ways that seem to make it anecdotal.
the "wall street fat cat" or the "mba financial wizards" or the "experts" in this interpretation are all versions of the "bad apple" theory...you know, the system itself is neutral, and problems are caused by a few deviations...

but i'm not sure that this is anything like a comprehensive view of how this language is working.
i thought it'd be interesting to try to put one together alongside a discussion or debate or fight about what's happening with this sudden realization that class stratification exists...
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Old 04-15-2009, 06:32 AM   #4 (permalink)
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Quote:
Originally Posted by roachboy View Post
so one trend is that you have a surfacing of the language of class conflict, but in ways that seem to make it anecdotal.
the "wall street fat cat" or the "mba financial wizards" or the "experts" in this interpretation are all versions of the "bad apple" theory...you know, the system itself is neutral, and problems are caused by a few deviations...
I think people are coming to realize just how much capitalism sucks, but they can't think of anything better to replace it with, and even if they could they've been so inundated with the "non-capitalism is automatically bad, evil, and un-American no matter what" idea since they were little kids that they'd be unwilling to speak up about it. People are starting to get frustrated because it's finally becoming apparent that capitalism means some prosper, but the cost is that the more one guy has, the less someone else has. The 80's really started the backslide - as the wealthy began to gobble up more and more of the country's money, the non-wealthy were forced to choose between lowering their standard of living, or going in debt up to their eyeballs to maintain it. The idea of taxing the wealthy more enthusiastically than the rest of us was immediately and loudly dismissed, even by the non-wealthy, because people believe just about anything they read in the media as long as that media is biased toward fantasy.

By that I refer to Rush Limbaugh and his ilk who perpetuate the fantasy that we can all get rich if only we work hard enough (we can't all do it, it's completely impossible under the capitalist system), and that since one of these days we're gonna be rich we'd better make sure that once we get there we aren't taxed too highly!

In other words, as John Dickinson said during the 2nd Continental Congress, "People would rather protect the possibility of becoming rich than face the reality of being poor."

While we might see trickles in the media for awhile about how terrible the wide and ever-widening gulf between the rich and everyone else is, it's going to take awhile before we see anything substantive. Even in your article, the author claims that "I understand that the wealthy pay more than their fair share of taxes" - which is patently false. They do not. They haven't for decades. And until they do, the burden will be on the middle class (which has by and large gone into massive debt attempting to live like the rich while still having to pay the disproportional taxes of the non-rich), and the lower class (who either see a proportionally larger chunk of their paycheck taken away by the government, or suffer reduced aid programs because the rich won't pay their fair share).

It's going to be a long time, if ever, before anyone in the main stream media dares to question the fundamentals of our economy, and it will be a longer time before whoever questions it can do so without being labeled a "goddamn communist."
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Old 04-15-2009, 07:19 AM   #5 (permalink)
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Okay, this is interesting.

I did a cursory search through Google News for U.S. articles containing the keyword "poverty," and what I can tell from what I came up with, the media generally considers (at this time, anyway) poverty to be something that happens either a) outside the national borders—namely, Mexico and Africa—or b) within families of illegal immigrants, who for some godforsaken reason keep breeding.

Holy shit.

I thought the U.S. had a much wider problem with poverty than this.

As a comparison, there were several articles in Canadian media that discussed issues of domestic poverty. I didn't even bother to check British media, as I'm certain I'd find more there as well.

I understand the U.S. is the wealthiest land in the world, but seriously....
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—From "Burnt Norton," Four Quartets (1936), T. S. Eliot

Last edited by Baraka_Guru; 04-15-2009 at 07:28 AM..
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Old 04-15-2009, 07:21 AM   #6 (permalink)
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Quote:
Originally Posted by Baraka_Guru View Post
I understand the U.S. is the wealthiest land in the world, but seriously....

No we aren't. Our wealth is paper-only. We don't make much anymore, we send jillions of jobs overseas, and most of us would have a much lower standard of living if we didn't borrow gobs of money. The "wealth" is built on a shaky tower of debt and fantasy.
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Old 04-15-2009, 07:24 AM   #7 (permalink)
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The overall GDP is still the highest, is it not?

This is my point: you have a high GDP, but not everyone gets a big enough piece of that pie. The media seems not to want to talk about that.
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Old 04-15-2009, 07:30 AM   #8 (permalink)
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remember that the first variable in calculating GDP is consumption, and they don't subtract anything for borrowing. So yes, our GDP is incredibly high, artifically, because we buy shit like crazy without having the money to pay for it.

Also, the last GDP figure available is 2007, which was well before the crash and burn of the sub prime mortgage scam, and while we were still in the midst of borrow-and-spend. Now that people are having a much harder time borrowing, I'd not at all be surprised to see our GDP drop significantly this year. ( a prediction that admittedly I can comfortably make since by the time we see the stats for this year some time in 2011, this thread will have long been forgotten )
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Old 04-15-2009, 07:33 AM   #9 (permalink)
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The GDP is higher than most nations regardless. This suggests to me that there are a number of wealthy people in the U.S. when compared to a great number of people worldwide. Is the media intentionally overlooking U.S. poverty issues? Or is it not an issue?

Is there no class struggle in the U.S.?
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Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
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Old 04-15-2009, 07:39 AM   #10 (permalink)
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There is, certainly, though we try to push it under the rug, and claim that anyone who squawks about it is a filthy communist, or un-american, or some other such nonsense.

But it's still a sad fact that 10% of our population controls around 90% of our wealth, and contrary to the snake oil that the republicans are trying to sell us, they aren't trickling it down to anyone.
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Old 04-15-2009, 07:43 AM   #11 (permalink)
 
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here's a nice little piece about the distribution of wealth in the states--the data is a bit old (through 2000 it seems, based on other analyses published through 2005 from a quick look) but it's interesting:

Who Rules America: Wealth, Income, and Power

figure 4 is illuminating.


fact is that the statistical indices the united states generates for itself are not necessarily geared around providing a coherent basis for policy formulation, but seem to just as much be an extension of political ideology. while i happen to remember a significant number of fantasy-reality adjustments made by the reagan administration (my favorite is still inflation: want to control it? stop counting stuff that causes it...) but they're not unique to the reagan administration by any means (look into how the us does not count structural unemployment sometime)...

there is census information about poverty rates:
Poverty - Main

but there are alot of problems with it...the most recent controversies have been about the systematic undercounting of poor folk. that's one way to deal with the question: not count it.

it's not that the stats are useless, but rather that they're problematic both in their organization and content. so it's a bunch of work to figure out how to interpret them.

but it's pretty clear that there's not a whole lot of interest in generating accurate images of what class stratification in the united states--or there hasn't been during the neo-liberal period. i would hope this changes under obama and afterward, but it's not obvious that it will.

the reality of class warfare--you know, the everyday routinized violence produced by radically uneven distribution of even the most basic economic. social and cultural resources---is quite different from the language of class warfare.
both are interesting, both important--but they're not the same.
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Old 04-17-2009, 03:15 AM   #12 (permalink)
 
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here is a few pages from the economic policy institute's report which tracks the relation of ceo pay to that of an average american worker, and of american ceo pay relative to international averages....

http://www.stateofworkingamerica.org/swa08-exec_pay.pdf

o and just in case you thought this "bad apples" thing was just some random observation have a look at this article, which outlines the results of a financial times/harris poll about executive "bonus culture" and you can see it, the bad apple theory, sitting square in the middle of the polling results for the us/uk. of course, the ft doesn't use the same terminology...but see for yourself

Quote:
Sharp divide in public opinion on bonus culture

By Richard Milne in London

Published: April 14 2009 03:00 | Last updated: April 14 2009 03:00

Public opinion is sharply divided over bonus culture in the wake of the credit crunch, according to an opinion poll from Financial Times/Harris.

Continental Europeans believe bonuses should form a smaller part of executive pay in the future, but the British and Americans oppose this idea. Between 65 and 79 per cent of Germans, French, Italians and Spanish favour a smaller role for bonuses. But only about a third of people in the US and UK support such a move, with about the same number opposing it.

The poll findings underline the different views on reforming executive pay in spite of widespread disgust at the behaviour of business leaders in the financial and economic crises.

They highlight how the British and American public are more willing to distinguish between specific bad behaviour in this crisis and the need to reward business leaders properly in the future.

In other regards, Anglo-Saxons and continental Europeans were united in outrage over business leaders, with about threequarters of people from all countries believing that managers were overpaid and unethical.

The results underline the depth of public anger, particularly over executive pay, after several high-profile cases at groups such as AIG, Royal Bank of Scotland and Deutsche Post.

About three quarters of people polled in the UK, US, France, Germany, Italy and Spain also thought that governments should be able to claw back bonuses or pensions paid to managers at companies that have received bail-out money.

Such cases have caused anger. Klaus Zumwinkel, the former chief executive of Deutsche Post, drew scorn in Germany after receiving millions in pension payments after being convicted of tax evasion. Sir Fred Goodwin, the former head of RBS, is refusing to hand back his pension even though he has been blamed by some observers for causing the problems that led to the bank having to be bailed out by the UK government.

Outrage is felt not just by the general public but by fellow business leaders. Jorma Ollila, chairman of Nokia and Royal Dutch Shell, said: "It doesn't help any of us when we have such public instances of excess and even wrongdoing."

According to the FT/Harris poll, Germans are the most negative on business leaders, following a series of scandals at leading companies including Siemens, Volkswagen and Daimler.

Some 75 per cent of Germans say their opinion of managers has worsened since the start of the economic crisis, against 71 per cent in France, 68 per cent in the US, 67 per cent in the UK, 62 per cent in Spain and 57 per cent in Italy.

Germans also score top on finding business leaders unethical, with 81 per cent; overpaid at 88 per cent; and that governments should claw back bonuses at 82 per cent. "The public rage against business should worry every single chief executive. I'm not sure I know what the answer is," said the head of one German industrial group.

The poll was conducted online by Harris Interactive among a total of 6,449 adults in the UK, France, Germany, Italy, Spain and the US between March 25 and 31.
FT.com / UK - Sharp divide in public opinion on bonus culture

control of framing is important. o yes it is.
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