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The Sociopathic Transnational Capitalist Class

April 2, 2012 by and tagged , , , , , , ,

I have blogged pretty extensively on what I have called the New Sociopathy (see here) referring to the lack of empathy from the wealthy (and wealthier) towards the less fortunate. That theme has been since more discussed as a study came out pretty much validating the idea that wealth makes one less compassionate and less able to empathize.

As noted in this article,

“In fact, a number of new studies suggest that, in certain key ways, people with that much money are not like the rest of us at all. As a mounting body of research is showing, wealth can actually change how we think and behave—and not for the better. Rich people have a harder time connecting with others, showing less empathy to the extent of dehumanizing those who are different from them. They are less charitable and generous. They are less likely to help someone in trouble. And they are more likely to defend an unfair status quo. If you think you’d behave differently in their place, meanwhile, you’re probably wrong: These aren’t just inherited traits, but developed ones. Money, in other words, changes who you are.

As voters consider which presidential candidate to support in November, one thing is for sure: Whoever wins is going to have money and power to spare. In a world where our politicians are inevitably better off than most of the people they govern, the new research sheds fresh light on the nature of our elected leaders—and offers insight into why they so often seem oblivious to our problems.”

The studies themselves are interesting,

“Kathleen Vohs, a professor at the University of Minnesota’s Carlson School of Management, started working on the issue of “feeling rich” in 2006 along with coauthors Nicole Mead and Miranda Goode. In their research, subjects were given subliminal suggestions to think about money—a clue in a descrambling puzzle, a dollar-bill screensaver on a computer screen, a sheaf of Monopoly bills on a table—before being asked to make a number of decisions: How soon do you ask for help on an impossible drawing task? Do you help the clumsy lab assistant who just dropped all her pencils? Do you donate to a made-up charity? Do you choose to work in a team or alone?

The mere hint of money, the researchers found, made people less likely to ask for help, less helpful in gathering the lab assistant’s pencils, significantly less generous to the made-up charity, and far less likely to look for teammates. “When people are reminded of money, they get better at pursing their personal goals,” Vohs said. “On the negative side, they become poor at interpersonal functioning. They’re not all that nice to be around. They’re not openly mean or disagreeable, but they can be insensitive.”

Insensitivity can cover a range of sins, from the minor (being unhelpful) to the more serious—say, treating others like they are less than human. Further studies by Vohs and her colleagues have shown that prompting people to think about money—a technique known as “priming”—makes them less likeable and friendly, and more likely to agree with statements that support an unjust, social-Darwinist status quo (for example, “Some groups of people are simply inferior to others”). In a particularly disturbing part of one study, the team primed people with money, then gauged their empathy by eliciting reactions to a theoretical scenario involving a belligerent homeless person. The researchers offered the subjects a chance to agree with statements that dehumanized others (“Some people deserve to be treated like animals”). The money-primed group was more likely to agree.”

So, just thinking about money makes people less empathetic. On the flip side, there are significant empathy differentials by income levels:

“In 2009, Michael Kraus, Paul Piff, and Dacher Keltner, all then of Berkeley (Kraus is now at University of California, San Francisco), published research that divided up sample groups by family income as well as self-reported socioeconomic status. People of higher socioeconomic status were more likely to explain success or failure as a result of individual merit or fault; lower-class people, on the other hand, felt less control in their own lives and were more likely to blame events on circumstance. In other words, higher-status people were more likely to feel that they’d earned their high place in society, and that poorer people hadn’t.

More recently, similar research—involving not just surveys, but heart-rate measurements —has found that higher-status people tend to be less compassionate toward others in a bad situation than people of lower-class backgrounds.

(…)

The result of these differences, say researchers who work on money and social class, is that people who are confident in their status have a completely different worldview from those who lack that confidence: more self-involved, self-justifying, and even, as the dehumanization study suggests, crueler. And the higher up the spectrum you get, the stronger the effect: “It’s on a continuum,” Kraus said. In other words, a subject whose family income is over $75,000 will show more compassion and generosity than a subject with a family income over $150,000, and less than a subject with an income of $30,000.

You might think that electing poor or low-status people to positions of power could help solve the problem, but it turns out not to be so easy: Power itself can trigger similar changes.”

Now connect the above to this:

“Cast your mind back to the euro crisis talks last year, when the future ofGreece was being decided. How much Athens should pay its bailiffs in the banks, on what terms, and the hardship that ordinary Greeks would have to endure as a result.

There were times when the whole of 2011 seemed to be one long European summit, when you heard more about Papandreou and Merkozy than was strictly necessary. Yet you probably didn’t catch many references to Charles Dallara and Josef Ackermann.

They’re two of the most senior bankers in the world – among the top 1% of the 1%. Dallara served in the Treasury under Ronald Reagan, before moving on to Wall Street, while Ackermann is chief executive of Deutsche Bank. But their role in the euro negotiations, and so in deciding Greece’s future, was as representatives of the International Institute for Finance.

The IIF is a lobby group for 450 of the biggest banks in the world, with members including Barclays, RBS and Lloyds. Dallara and Ackermann and their colleagues were present throughout those euro summits, and enjoyed rare and astounding access to European heads of state and other policy-makers. EU and IMF officials consulted the bankers on how much Greece should pay, Europe’s commissioner for economic affairs Olli Rehn shared conference calls with them.

You can piece all this together by poring over media reports of the euro summits, although be warned: you’ll need a very high tolerance threshold for European TV, and financial newswires. But Dallara and co are also quite happy to toot their own trumpets. After a deal was struck last July, the IIF put out a note bragging about its “catalytic” role and claiming its offer “forms an integral part of a comprehensive package”.

By now you’ll have guessed the punchline: that July agreement was terrible for the Greeks, and brilliant for the bankers. It was widely panned at the time, for slicing only 21% off the value of Greece’s loans, when Angela Merkel and many others agreed that financiers ought to be taking a much bigger hit. As the German government’s economic adviser, Wolfgang Franz, later remarked in an interview: “If you look at the 21% and our demand for a 50% participation of private creditors, the financial sector has been very successful.” Another way of putting it would be to say that the bankers overpowered even the strongest state in Europe.”

So, the financial element of the Transnational Capitalist Class flexed its muscles against the political component, and won. Meanwhile, the peasants didn’t think it was such a great idea but who cares:

“None of these voters, none of these opinions got even a fraction of the consideration, let alone the face time, that was extended to Dallara and Ackermann. At Corporate Europe Observatory in Brussels, Yiorgos Vassalos has been tracking the negotiations over Greece: by his reckoning only the IIF got to have such personal, close-up access. These were summits settling how much misery would be imposed on the Greek people – and no trade unions or civil society groups got a say in them. “The only key players in those meetings were European governments and the bankers,” says Vassalos.

(…)

So the bankers whose excesses helped land Europe in this mess then get to sit round the big EU table, like any other government, and decide who should pay for it. And the answer, unsurprisingly, is: not them. The bigger question is: why finance has been granted such power? In a forthcoming paper entitled Deep Stall, the Centre for Research on Socio-Cultural Change gives one compelling reason: because so many countries across Europe are, through both their public and private sectors, so dependent on financiers in other countries for credit. That includes Britain, which relies on 10 eurozone countries for loans worth over 70% of its annual national income – a higher proportion even than Italy. The tale of the IIF and how it got such a powerful say on the fate of ordinary Greeks is really a chapter in a much bigger story of how governments across the western world got swallowed up by their finance industries.”

The effects of this plutocratic and sociopathic governance based not just on economic but also on social capital are unsurprising and constitute the most obvious form of structural violence:

“Europe’s long-running euro crisis may be cooling. But the economic distress it has left in its wake is pushing a rising tide of workers into precarious straits in France and across the European Union. Today, hundreds of thousands of people are living in campgrounds, vehicles and cheap hotel rooms. Millions more are sharing space with relatives, unable to afford the basic costs of living.

These people are the extreme edge of Europe’s working poor: a growing slice of the population that is slipping through Europe’s long-vaunted social safety net. Many, particularly the young, are trapped in low-paying or temporary jobs that are replacing permanent ones destroyed in Europe’s economic downturn.

Now, economists, European officials and social watchdog groups are warning that the situation is set to worsen. As European governments respond to the crisis by pushing for deep spending cuts to close budget gaps and greater flexibility in their work forces, “the population of working poor will explode,” said Jean-Paul Fitoussi, an economics professor at L’Institut d’Études Politiques in Paris.

To most Europeans, and especially the French, it seems this should not be happening. With generous minimum wage laws and the world’s strongest welfare systems, Europeans are accustomed to thinking they are more protected from a phenomenon they associate with the United States and other laissez-faire economies.

But the European welfare state, designed to ensure that those without jobs are provided with a basic income, access to health care and subsidized housing, is proving ill-prepared to deal with the steady increase in working people who do not make enough to get by.

The trend is most alarming in hard-hit countries like Greece and Spain, but it is rising even in more prosperous nations like France and Germany.

“France is a rich country,” Mr. Fitoussi said. “But the working poor are living in the same condition as in the 19th century. They can’t pay for heating, they can’t pay for their children’s clothes, they are sometimes living five people in a nine-square-meter apartment — here in France!” he exclaimed, speaking of an apartment of about 100 square feet.

And France is not the worst-off country in this respect.

However, it would be wrong to blame all this on the 2008 recession. The seeds were planted 30 years ago by the rising neoliberal economic and political class with predictable results, such as concentration of wealth at the very top of the social ladder, mass consumption maintained through high levels of credits and precarization through the progressive lowering of social safety nets and destruction of organized labor:

Also, this.

Posted in Economy, Poverty, Power, Precarization, Public Policy, Social Inequalities, Social Psychology, Social Stratification, Structural Violence, Transnational Capitalist Class | No Comments »



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