Another great interactive visual on global poverty thanks to Why Poverty?:
And while you’re at it, check out this enticing trailer for the animated documentary, Poor Us:
Can’t wait to see the whole thing.
Jared Bernstein has the data:
As the blog post notes (emphasis mine):
“The figure shows pre-transfer and post-transfer poverty rates among OECD countries (mostly the advanced economies). The former (pre-transfer) are the market-driven poverty rates, before the tax and transfer systems kick in.
Though there is variation across countries on the pre-transfer, or market poverty rates, they’re fairly close, and their average, excluding the US, happens to be the same as ours. After the tax and transfer system kicks in, however, the US has the highest poverty rate of all the countries in the sample. Our post-transfer poverty rate is 1.7 times that of the non-US average (17.1%/9.8%).
Now, there are as many different models for dealing with poverty and as many different cultural and religious proclivities as there are countries. But they all generate roughly similar shares of market poverty.
That suggests that what determines poverty differences across countries may not have much to do with the poor themselves or the disincentive effects of the safety net. And what determines the post-tax and transfer rates are of course, the taxes and transfers.
Obviously, poverty is a complex and multifaceted phenomenon. And no question, people engage in behaviors that contribute to their poverty. But simplistic explanations that largely implicate the poor themselves are woefully incomplete.”
In these kinds of graphic comparisons, it is usually more helpful to compare percentages rather than just numerical values since countries are not equal in terms of size (population, GDP). So, it would be better to have the amount of aid calculated as percentage of the GDP or GDP per capital. Otherwise, it could be a bit misleading.
Nevertheless, it is interesting to see who’s keeping their promise and who isn’t (the countries in recessionary hole, basically).
There is so much more to be done with 21st century peasants than just making them poorer and more precarious. The following is just sample of stories collected over the last few weeks.
Consider it my own, much less smart, version of Gans’s functions of poverty – the functions of the precariat.
1. Gives the upper classes feelings of righteousness and moral outrage that bolster one’s sense of moral superiority:
“We all know that single mothers are immoral scroungers, right? That impression was cemented by last Wednesday’s Newsnight, when Allegra Stratton interviewed young single mother Shanene Thorpe.
Stratton demands to know why Thorpe has chosen to move out of her mother’s two-bedroom flat, since she required housing benefit to do so.
After the interview, Stratton says directly to camera: “The government is thinking of saying to young people: if you don’t have work, don’t leave home.”
Except, Thorpe is not unemployed. As you may have read by now, she works full time for Tower Hamlets council, but claims housing benefits to help cover the cost of rent. In a series of statements on Twitter (collated byLiberal Conspiracy), Thorpe attempted to tackle the inaccurate portrayal of her situation: “To set the record straight, I work for tower hamlets council, I’ve worked since 16 and I only get help towards my rent because it is so high.”
It is difficult to see how the BBC – which has yet to comment – will justify the coverage. It breaks basic journalistic tenets of accuracy and fairness, by heavily implying that Thorpe is unemployed when she is not.
More widely, it raises some troubling questions about the way that the media and politicians talk about poverty and benefit claimants. While outrage has, rightly, been focused on the fact that Thorpe was misrepresented since she is not unemployed, that is not the only problem with the interview. It perpetrates lazy assumptions about single mothers: scroungers who should hide themselves away and not ask for anything. On Twitter, Thorpe says that in the full interview, Stratton asked her why she chose to keep her child. Is that ever an acceptable question to ask someone, particularly when the reasoning behind it is so clearly class-based? Stratton is clearly pushing an agenda, and has no interest in the fact that in this case, the issue is the extortionate rents charged by private landlords.”
2. The precariat provides easy targets for predatory lending and other extortionist activities:
“Individually the poor are not too tempting to thieves, for obvious reasons. Mug a banker and you might score a wallet containing a month’s rent. Mug a janitor and you will be lucky to get away with bus fare to flee the crime scene. But as Business Week helpfully pointed out in 2007, the poor in aggregate provide a juicy target for anyone depraved enough to make a business of stealing from them.
The trick is to rob them in ways that are systematic, impersonal, and almost impossible to trace to individual perpetrators. Employers, for example, can simply program their computers to shave a few dollars off each paycheck, or they can require workers to show up 30 minutes or more before the time clock starts ticking.
Lenders, including major credit companies as well as payday lenders, have taken over the traditional role of the street-corner loan shark, charging the poor insanely high rates of interest. When supplemented with late fees (themselves subject to interest), the resulting effective interest rate can be as high as 600% a year, which is perfectly legal in many states.
It’s not just the private sector that’s preying on the poor. Local governments are discovering that they can partially make up for declining tax revenues through fines, fees, and other costs imposed on indigent defendants, often for crimes no more dastardly than driving with a suspended license. And if that seems like an inefficient way to make money, given the high cost of locking people up, a growing number of jurisdictions have taken to charging defendants for their court costs and even the price of occupying a jail cell.
You might think that policymakers would take a keen interest in the amounts that are stolen, coerced, or extorted from the poor, but there are no official efforts to track such figures. Instead, we have to turn to independent investigators, like Kim Bobo, author of Wage Theft in America, who estimates that wage theft nets employers at least $100 billion a year and possibly twice that. As for the profits extracted by the lending industry, Gary Rivlin, who wrote Broke USA: From Pawnshops to Poverty, Inc. — How the Working Poor Became Big Business, says the poor pay an effective surcharge of about $30 billion a year for the financial products they consume and more than twice that if you include subprime credit cards, subprime auto loans, and subprime mortgages.
These are not, of course, trivial amounts. They are on the same order of magnitude as major public programs for the poor. The government distributeshttp://www.taxpolicycenter.org/brie… about $55 billion a year, for example, through the largest single cash-transfer program for the poor, theEarned Income Tax Credit; at the same time, employers are siphoning off twice that amount, if not more, through wage theft.”
3. The precariat can be pushed out of the way to reclaim desirable space for wealthier denizens in need of better Lebensraum:
“The world’s largest private yacht looms over the old port of Barcelona – its six-deck, 163m profile offering proof of the love of Russian billionaireRoman Abramovich for a city he will visit again this week as his football team, Chelsea, tries to secure a place in the Champions League final.
But the superyacht, equipped with its own mini-submarine and anti-paparazzi shield, is a symbol of what neighbours in the traditional fishermen’s neighbourhood of La Barceloneta fear will bring about the demise of one of the few city centre barrios to have maintained its traditional working-class character. Old Barcelona is under threat. A British private investment fund has taken control of much of the port area and has asked for an extended licence so that it can turn the Marina Port Vell into the Mediterranean’s prime home for superyachts. Sources close to the group said it wanted the licence to run until 2036.
The Mayfair-based Salamanca Group intends to make the marina home to yachts up to 180 metres long, bringing the planet’s growing club of mega-rich to a marina that it says “dominates the heart of Barcelona”. But Barceloneta residents say the boats will dwarf the neighbourhood’s famously narrow, four- or five-storey blocks of flats, where working-class families live in tiny homes and colourful outdoor washing lines leave the neighbourhood’s laundry on public display.
“I’ve lived here all my life and the barrio has a special identity, precisely because so many working-class people have always lived here,” said 68-year-old pensioner Antonio García, of the L’Ostia neighbourhood group. “But this will price us out, turning the port into a place only for the very rich and changing things for ever.”
Neighbours fear that a huge wall may go up around part of the port to ensure the privacy of a handful of wealthy people, creating a fortress-like billionaires’ ghetto on their doorstep. Protesters have already taken to Barceloneta’s narrow streets, demanding that speculators be kept away from an area renowned for its cheap seafood restaurants and proximity to Barcelona’s colourful urban beach.”
4. The low status of the precariat makes it easier to exploit with impunity and complete illegality:
“The housing charity Shelter says it has seen more evidence of landlords acting unscrupulously and evicting people illegally.
One estate agent said properties typically rented for £350 per week were being marketed for £6,000 per week.
Shelter fears the problem will get worse as the Games approach.
The BBC’s Michael Buchanan says: “The potential profits are leading to some private landlords telling their tenants they have to leave their homes, with little notice.”
Housing Minister Grant Shapps said: “Landlords should be under no doubt that it is a criminal offence for them to evict a tenant without giving proper notice, and that anyone found guilty of doing this – or of harassing a tenant – could lead to a custodial sentence of up to two years.””
Right, I expect all this will be diligently prosecuted.
5. The precariat constitutes the bulk of neocolonial labor army, easy to exploit out of sight, in conditions of quasi-slavery:
“Coca-Cola is facing questions about its links to orange harvesting in southern Italy, which campaigners say relies on the cheap labour of African migrants living in squalid conditions.
An investigation into citrus fruit growing in Calabria has revealed how thousands of African workers, many of whom have made the treacherous voyage across the Mediterranean in search of a new life, are earning as little as €25 (£21) for a day’s picking in orange groves in a region that supplies juice concentrates to several multinational companies.
Evidence gathered by The Ecologist shows that many migrants, some of whom are in Italy illegally, live in slum conditions in makeshift camps without power or sanitation and fall prey to gangmasters who in some cases charge a “fee” from their workers’ wages for organising their picking shifts.
Coca-Cola, whose global profits in 2010 stood at $11.8bn (£7.5bn), is one of a number of major buyers of concentrated orange juice in Calabria which it uses for its Fanta brand in Italy. The company said its Calabrian supplier had been given a clean bill of health by an independent auditor as recently as last May but admitted that the length of its supply chain meant it was unable to verify the practices on every farm or consortium whose juice is used in Fanta.”
See also this.
6. The precariat can be made to work at will on anything, as needed, for free:
“A group of long-term unemployed jobseekers were bussed into London to work as unpaid stewards during the diamond jubilee celebrations and told to sleep under London Bridge before working on the river pageant.
Up to 30 jobseekers and another 50 people on apprentice wages were taken to London by coach from Bristol, Bath and Plymouth as part of the government’s Work Programme.
Two jobseekers, who did not want to be identified in case they lost their benefits, said they had to camp under London Bridge the night before the pageant. They told the Guardian they had to change into security gear in public, had no access to toilets for 24 hours, and were taken to a swampy campsite outside London after working a 14-hour shift in the pouring rain on the banks of the Thames on Sunday.”
If they refuse, there is often the threat of benefit loss. Who would not volunteer?
7. And if they get too troublesome, they can be killed without consequences:
“Brazilian police are investigating whether the fatal shooting of three rural activists was linked to their effort to win rights to land also contested by owners of a sugar mill.
The activists were shot on Saturday as they got out of a car near a landless workers’ camp in the south-western Minas Gerais state.
A five-year-old girl, the granddaughter of two of those who were killed, survived the attack. No one has been arrested, a police spokesman said.
Watchdog groups said police were questioning land activists about the possibility the killings could have resulted from an internal conflict within their movement. The groups rejected that idea and accused landowners of paying gunmen to shoot the activists.
Carlos Calazans, head of the Minas Gerais branch of the federal department of land reform, known as Incra, said police were looking into the land dispute as a possible motive.
“It’s definitely one of the theories for the motive behind this barbarous crime,” he said. “I’ve no doubt these activists were summarily executed. But police have to follow all leads until they find the truth.”
Calazans said the killed couple approached Incra last year seeking support in various land conflicts in the region, including the one with the mill owners. He said Incra tried to get the owners and activists to agree on the issue a few weeks ago, but the effort was unsuccessful.
Killings over land in Brazil are common, and people rarely face trial for the crimes.
The watchdog group Catholic Land Pastoral says more than 1,150 rural activists have been murdered in Brazil over the past 20 years. The killings are mostly carried out by gunmen hired by loggers, ranchers and farmers to silence protests over illegal logging and land rights, it says. Most of the killings happen in the Amazon region.”
“The study by Boston Consulting Group (BCG) identifies a shift from “owning a luxury to experiencing a luxury” with bespoke treats now accounting for more than half of the $1.4tn spent on luxury goods and services last year.
Luxury sales have boomed in the last two years as the industry recovered from the hiatus caused by 2008 global financial crisis, which provoked a sharp fall in conspicuous consumption.
The sector has also been buoyed by the growing number of millionaire shoppers in markets such as China and Brazil, who are picking up the slack as consumers in traditionally important luxury markets such as western Europe, Japan and the US continue to spend more cautiously.
“The gap in income inequality is growing, which is unfortunate, but there are more and more millionaires every year,” said Jean-Marc Bellaiche, a BCG senior partner who heads the firm’s luxury practice.
Bellaiche said sales of luxury experiences grew 50% faster than demand for physical goods last year. The trend is explained, in part, by demographics – as the consumers who drove the luxury boom in the 1990s start to retire, he said.
“They do not want to own new things, so are the primary customers for experiential luxury offerings,” he said. Their options are not limited to exclusive safaris and spas, they can book themselves in for a five-star hospital stay where they will be waited on by a butler and the en suite facilities include a marble bath.
The attitude to luxury is also apparent among their children who, the report says, now want more than the latest designer fashions. “Members of Generation Y tend to define themselves more by what they’ve done and experienced than by what they own,” said Bellaiche.
“They are drawn to instant pleasure and lavish experiences – helicopter snowboarding in Alaska or a weekend shopping spree in Paris.”
The shift is evident “even in brand-obsessed China” where personal luxury goods serve as a strong badge of status and success, he added.
The business of providing luxury experiences – from art auctions to exclusive travel packages – is now worth $770bn, according to the study. BCG predicts a 7% increase in luxury spending this year, albeit at a slower rate than the industry has enjoyed in the last two years.”
What is interesting is that none of these things actually involve really doing anything (like being pampered in a five-star hotel). Natural spaces will be tamed and customized so that luxury services can be delivered there (as in luxury safari lodges, with complete staff). These “experiences” look more like badges that people accumulate as forms of capital.
The other thing is that the poor are often blamed for their supposed lack of deferred gratification, seen as a defect that keeps them in poverty, as opposed to the middle-class and its Weberian puritan habits.
Do check out this series of stunning photos on a disease of the Middle Ages that persist today even though it is treatable, leprosy in Brazil:
A disease like leprosy, which leaves people with deformities is more likely to generate stigma, exclusion and marginalization especially when it is thought that it is contagious and can be caught through casual contact. At the same time, it is a disease of exclusion and marginality itself.
One cannot help but be reminded of Foucault’s idea that hospitals were not necessarily places of care but as places of deviance management where deviants (whether sick or insane) could be safely guarded out of the way of decent society, under the moral authority of the Church, then, later of the medical profession. It is not surprising that the more deviant categories trigger fears in the general population, the more their institutionalization will be demanded from some corners. The same thing happened at the beginnings of the AIDS epidemic and then, more recently:
A stigma, then, is a two-way phenomenon, cause and effect: based on preexisting stigmatization (whether it is marginalization due to poverty in the case of leprosy or religion in the case of homosexuality), moral entrepreneurs will demand further stigmatization and exclusion from society, with no plan for reintegration at some later point. In all cases, this boils down to a purification of the “normal” population from its deviants but hidden behind rationalizations about health or rehabilitation or some imaginary danger to society.
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:
I am always suspicious of broad generalizations about entire populations or generations. So, I am not entirely sure what to make of this argument by sociologist Sophia Mappa. Something to think about. It is in French, so here is the gist of it in English.
The starting point of her argument is that Angela Merkel’s inflexibility is incomprehensible to ordinary Greeks. The reason is that such inflexibility is rooted in the protestant culture of the 16th century, something well-known thanks to Max Weber’s classic The Protestant Ethic and the Spirit of Capitalism. This moral culture is one of individual obedience to divine law, disregarded due to the corruption of the Roman Catholic Church. It is a culture of glorification of labor as a means of salvation which led to human dominion over nature (and other humans) in order to generate wealth and where frugality and puritanism are the norms of individual moral conduct. According to Weber, this is what led to the rise of capitalism. For Mappa, this is what explains its persistence in Germany, even as this system is being questioned all over Europe, as part of both the economic crisis and the legitimation crisis. From this perspective, the laborious and strong Germans’s views of the weakening of their European neighbors stems from these protestant roots.
Mappa argues that German culture is both close and very different from European Latin cultures. It has produced grandiosity and misery at the same time, including a certain intolerance to other cultures and a desire to dominate them and force them to accept the German model. Merkel’s policies reflect such an attitude. Her position seems to push for the punishment of the heretic rather getting out of the crisis.
At the same time, Greek history has different roots, linked to the Byzantine and Ottoman Empires. After all, according to Mappa, Greece did not directly contribute to the Renaissance, the Enlightenment, the Westphalian order or capitalism (except as historical remembrance but not as active power player, if I may use that expression). The Greek state, set up in the 19th Century, was not a product of its people’s will. As with all colonized countries, the state apparatus, the constitutions, the kings, the polity and their financing, were provided, right off the bat, by the European chanceries.
The spirit of these institutions never took hold in Greek society. There was no adaptation or emergence of alternatives in order to get closer to Europe. The Greek society then invested these foreign institutions with its own culture, and especially with the centrality of the Church. And so, if it accepted Europe-approved kings, it opposed the emergence of central governance mechanisms, typical of the modern nation-state.
For Mappa, Greek political power is rooted, even to this say, in the imaginary of the Ottoman Empire, that of the beys and other clan chiefs, reigning over their clients and kinship networks, trading material welfare for political allegiance. The now-famous refusal to pay taxes, so widespread in this society, stems this imperial past where taxation was domination, and not construction of a central authority, for the common welfare (at least in theory) beyond particularisms. For the past two centuries, this state has been regulated from the outside: the European chanceries, the US after WWII, and since 1981, the European Commission.
For the past two centuries, then, those in charge of the state have submitted to the diktats from the outside, while adapting them to their own benefit and those of their clients and cronies. That is what the lat Prime Minister – Georges Papandréou – did, and that is what his successor, Loukas Papadimos, will do despite his much vaunted technocratic credentials.
Economically speaking, according to Mappa, there was never any collective acceptance of the spirit of capitalism. Economic activity remained tied to Greek history and traditional trade: agriculture, commerce, fishery, banking and tourism, but not industry. It is not that the Greeks are lazy, as Merkel and other might think. But, despite the common – yet false – idea that capitalism is part of human nature and therefore universal, the Greeks, as many others on this planet, do not get its spirit and mechanisms. And Greece’s entrance into the European Union has not changed that.
And quite predictably, European financial flows, allocated by the European Economic Community were used not for production, for clientelism and and consumption of European-made goods, including weaponry from France and Germany. And under neoliberal governance, the liberalization of the markets and competition from Western goods, the traditional gap between production and consumption led to the current disaster. For Mappa, without a doubt, there is a great deal of responsibility from the Greek society and especially its elite.
BUT… (you knew there was a “but” coming, didn’t you)
European leaders are also to blame for their simplistic economic dogma and the illusion of their omnipotence in governing other countries. They are currently ruining their own societies and preventing EU peripheral countries from recovering from the crisis.
At this point, an EU commissioner would bring nothing to Greece. Quite the opposite. This would only be seen as yet another humiliation that would aggravate the despair and rebellion that are already quite widespread.
So, certain ideas need to be questioned: austerity measures, Merkel’s illusion that one can just shape societies at the snap of a finger, with some stern disciplining from the hegemon. It is not just the destruction of Greece that is at stake, but that of the entire European Union.
And if that was not convincing enough, there is this:
“Homelessness has soared by an estimated 25% since 2009 as Greece spirals further into its worst post-war economic crisis.
The country is now in its fifth straight year of recession and the official unemployment rate is nudging 20%, exacerbated by the austerity measures being pushed through in return for more bail-out money.
Greeks now speak of another section of society: the “new homeless”.
“They don’t have the ‘traditional profile’ of homeless people,” says Ms Nousi.
“They are well dressed and well educated. Until last year they had a good flat or a nice car – and now they have nothing.
“So it’s another kind of misery – another kind of poverty. We were not prepared for this poverty, but it exists.”
One of the new regulars at the kitchen is Vicky Kolozi.
A former journalist with the state broadcaster ERT, she lost her job a year ago and now cannot afford to feed herself and her daughter.
“It is hard to feel that I have to depend on this now,” she tells me.
And that reality is particularly harsh at the moment as Greece shivers in freezing temperatures.”
And beyond Greece, Italy:
“With around one in three young Italians now unemployed, many of its younger generation are contemplating emigrating to destinations as far afield as Africa and South America, in the hope of better employment prospects.”
Sorry about the lack of recent posts, guys. Between the beginning of the term and the massive amount of academic writing I have foolishly and irresponsibly agreed to do, I will be swamped until February 15th.
That being said, while taking a break from The Writing, I watched this film, scifi fan that I am:
The movie was directed by Andrew Niccol who also directed Gattaca (which I really loved) and Lord of War (ditto). Now, the main plot is rather stupid and the main characters were poorly cast, in my view, but, as usual, I got more interested in the social background underlying the story.
For those of you who have not seen it, the story takes place in a dystopian future (aren’t they all?) where the dominant currency is time. People are genetically programmed to grow up until they reach 25, then, a clock embedded their arms starts and they have one year to live unless they can get extra years through labor, gambling, prostitution, or financial dealings. Everything is bought and paid for in time (minutes, hours, days, etc.). The whole language reflects the prevalence of time. When your clock gets down to zero, you just (literally) drop dead.
This society is highly stratified in a very Wallersteinian way. Financial investors are at the top of the social ladder and they live in wealthy (gated and highly secured) time zones that resemble Wallerstein’s core areas. There are middle time zones (the semi-periphery) and the ghettos (the periphery) where people are fully precarized in terms of time. They work for a few extra days, take out loans that deplete their clocks. The whole time system (financial system) is controlled by very large corporation, controlled by time-financiers who continuously extract time-value from the less wealthy time-zones (through labor, loans and control of the costs of living… when they need a time boost, the wealthy – in New Greenwich, a major core time zone – bump up the cost of living in the ghetto which extracts more time from the poor, that is transferred to the wealthy.
This translates in different behavior. In the ghetto, people are constantly checking their clock and rushing and running everywhere. That is how the main character gets spotted as “different” when he crosses into wealthier time zones. In the wealthy time zones, people move slowly. They have time.
There is more than enough time for everybody but the wealthy want to live forever, so, in that zero-time game, someone has to die for that to happen. And so, while the poor live highly precarized lives, doing anything to live a few more days, including engaging in fights through organized criminal groups where the goal of the fight is to deplete the other guy’s clock, the wealthy live lives surrounded by luxury but also lots of bodyguards in order to avoid the only deaths they can expect, through crime or their own stupidity (accidents).
In this society, law enforcement takes the form of poorly paid (based on a limited per diem allotment of time) time-keepers who keep track of time and maintain the stratification system. They are what Guy Standing would call the salariat, ideologically aligned with the global time elite, and making sure the precariat in the ghetto does not steal someone’s time even though they are economically closer to the precariat.
As I mentioned, the rest of the film is pretty much either garbage (the rich have it hard too!) or teenage nonsense (the bad boy from the ghetto and the poor little rich girl fall for each other and turn into Bonnie and Clyde 2.0). Apart from that, I think it is definitely meant as a metaphor for our times.
If you enjoyed the first season of the Wire, you will enjoy Peter Moskos‘s Cop in the Hood. The book is the tale of a sociologist going native by going through the Baltimore police academy, becoming a cop and working for over a year. This mix of ethnography and participant observation makes the book highly readable and enjoyable. My freshmen students will be reading it next term.
The book roughly follows Moskos chronological journey, from the academy to the street and the last part of the book is dedicated to a pretty thorough analysis (and indictment) of the War on Drugs.
This book is especially relevant because of one the challenges of teaching freshmen is to show them why they should be interested in sociology and sociological topics, that there is some knowledge to be produced here and that sociology has the tools to produce it.
Why did Moskos choose participant-observation? (All notations are Kindle locations)
“As a sociology graduate student, I took to heart the argument that prolonged participant-observation research is the best and perhaps only means of gathering valid data on job-related police behavior. Because data on policing are iffy at best and cops, like everyone, love to tell a tall tale, the best way to see what happens on the street is to be there as it happens. As an institution, police have been labeled insular, resentful of outsiders, and in general hostile to research, experimentation, and analysis. Official police statistics are notoriously susceptible to manipulation. And as most police activity has no official record at all, the nuances of police work are difficult if not impossible to quantify. Professor and police researcher Maurice Punch wrote, “The researcher’s task becomes, then, how to outwit the institutional obstacle-course to gain entry and . . . penetrate the mine-field of social defenses to reach the inner reality of police work.”” (114)
The first interesting observation from Moskos’s work is his analysis of the police academy as relatively useless for the job:
“So what’s the point of the academy? Primarily, it’s to protect the department from the legal liability that could result from negligent training. To the trainees this appears more important than educating police officers.
And second, despite the lax approach toward academics, instructors were very concerned with officer safety, the aspect of the job they emphasized most: “The most important part of your job is that you go home. Everything else is secondary.” This philosophy is reinforced at all levels of the police organization. Formal and informal rules concerning officer safety are propagated simultaneously.
By the end of the academy, less than half the class saw a relation between what police learn in the academy and what police need to know on the street. A strong antimedia attitude, little changed from sociologist William Westley’s observations in the 1950s, grew steadily in the police academy. At the end of training, just 10 percent of trainees believed that the media treat police fairly.
After six months in the academy, trainees learn to:
- Respect the chain of command and their place on the bottom of that chain.
- Sprinkle “sir” and “ma’am” into casual conversation.
- Follow orders.
- March in formation.
- Stay out of trouble.
- Stay awake.
- Be on time.
- Shine shoes.” (359 – 390)
But Moskos’s conclusion is that the training actually demoralizes trainees even before they start working on the streets. Physical training is not boot camp and provides a poor preparation (after all, most officers will spend their days in their patrol car), and academic training does not really impart knowledge and does not encourage thinking.
Once training is over, the bulk of the book follows Moskos on the beat, on the Eastern side of Baltimore (that’s Proposition Joe’s territory, for you Wire fans following at home) and the constant contradictory demands placed on officers (between following a very strict military-style chain of command and having to make quick decisions). In that sense, the book is also a good study of the necessity of developing informal rules in in highly formal, bureaucratic environments. Working around the rules is the only way to keep the work manageable and within the limits of efficiency and sanity. But for Moskos, the gap between formal and informal norms is especially wide in policing. One could see here the application of Merton’s strain theory: the officers largely agree with the goals of the job they have to do (even though they are aware of the futility of the War on Drugs), but they constantly have to innovate while on patrol because the rules do not work on the streets (of course, some officers do lapse into ritualism especially in a context where protecting one’s pension is THE concern all officers have and that guides their behavior on the street).
These informal rules are constantly at work whether it comes to stopping, frisking, searching, arresting, writing reports. In all of these aspects of the job, covering one’s butt and protecting one’s life and pension are paramount concerns. This means that officers actually have quite a bit of leeway and flexibility when it comes to their job. These informal norms are described in details in Moskos’s book and there is no underestimating their importance.
Once on the streets, police officers mix a culture of poverty approach to “these people” (the communities they are expected to police, where gangs and drugs culture produce poverty with quite a bit of eliminationist rhetoric that reveals an in-group / out-group mentality between police officers and civilians:
“A black officer proposed similar ends through different means. “If it were up to me,” he said, “I’d build big walls and just flood the place, biblical-like. Flood the place and start afresh. I think that’s all you can do.” When I asked this officer how his belief that the entire area should be flooded differed from the attitudes of white police, he responded, “Naw, I’m not like that because I’d let the good people build an ark and float out. Old people, working people, line ’em up, two by two. White cops will be standing on the walls with big poles pushing people back in.” The painful universal truth of this officer’s beliefs came back to me in stark relief during the flooding and destruction of New Orleans, Louisiana. Police in some neighboring communities prevented displaced black residents from leaving the disaster area, turning them away with blockades and guns.” (609)
That in-group / out-group outlook also involves dehumanization and stigmatization:
“In the ghetto, police and the public have a general mutual desire to avoid interaction. The sociologist Ervin Goffman wrote, “One avoids a person of high status out of deference to him and avoids a person of lower status . . . out of a self-protective concern.” Goffman was concerned with the stigma of race, but in the ghetto, stigma revolves around the “pollution” associated with drugs. Police use words like “filthy,” “rank,” “smelly,” or “nasty” to describe literal filth, which abounds in the Eastern District. The word “dirty” is used to describe the figurative filth of a drug addict. It is, in the drug-related sense, the opposite of being clean.” (633)
The “dope fiend” becomes the loathed representative figure of all this. But the dehumanization applies equally to them and the dealers. In that sense, there is no sympathy for the people who have to live in these communities and have nothing to do with the drug trade. They are put in the same bag. And whatever idea of public service trainees might start with tends to disappear after a year on the streets.
And quite a bit of what goes on in the streets between police and population has a lot to do with forcing respect and maintaining control of the interaction:
“Although it is legally questionable, police officers almost always have something they can use to lock up somebody, “just because.” New York City police use “disorderly conduct.” In Baltimore it is loitering. In high-drug areas, minor arrests are very common, but rarely prosecuted. Loitering arrests usually do not articulate the legally required “obstruction of passage.” But the point of loitering arrests is not to convict people of the misdemeanor. By any definition, loitering is abated by arrest. These lockups are used by police to assert authority or get criminals off the street.” (838)
And, of course, the drug dealers also know the rules and become skillful at working around them, avoiding arrest, challenging the police authority and have structured their trade accordingly. It would indeed be a mistake to look at this illegal and informal economy as anything but a trade structured around specific rules that take into account having to deal with the police and the different statuses of the actors involved in the trade reflect that:
The transaction is therefore completely decomposed into steps where money and drugs are never handled by the same person while the main dealers watch things from afar, protecting themselves from legal liabilities. For most of these positions, the pay is not much better than fast-food joints, but that is pretty much all there is in these urban areas.
Of course, just like everything in the US, there is a racial component to this. The drug trade is not a “black thing” (like mac and cheese as Pat Robertson would say) and it has its dependency theory taste:
“The archetypal white addict is employed, comes with a friend, drives a beat-up car from a nearby blue-collar neighborhood or suburb such as Highlandtown or Dundalk, and may have a local black drug addict in the backseat of the car. A black police officer who grew up in the Eastern District explained the local’s presence, “White people won’t buy drugs alone because they’re afraid to get out of the car and approach a drug dealer. They’ll have some black junkie with them.” The local resident serves as a sort of freelance guide, providing insurance against getting “burned” or robbed. The local addict is paid informally, most often taking a cut of the drugs purchased.” (1116)
The complete mistrust between the police and the community is also a trademark of impoverished urban environments. And indeed, what would residents gain by interacting with law enforcement and the court system? At the same time, police work is arrest-based (the more the better) which officers all understand to be futile.
For Moskos, part of the problem with policing was the advent of policing-by-patrol-car:
“The advent of patrol cars, telephones, two-way radios, “scientific” police management, social migration, and social science theories on the “causes” of crime converged in the late 1950s. Before then, police had generally followed a “watchman” approach: each patrol officer was given the responsibility to police a geographic area.5In the decades after World War II, motorized car patrol replaced foot patrol as the standard method of policing. Improved technology allowed citizens to call police and have their complaints dispatched to police through two-way radios in squad cars. Car patrol was promoted over foot patrol as a cost-saving move justified by increased “efficiency.”6 Those who viewed police as provocative and hostile to the public applauded reduced police presence and discretion. Controlled by the central dispatch, police could respond to the desires of the community rather than enforce their own “arbitrary” concepts of “acceptable” behavior. Police officers, for their part, enjoyed the comforts of the automobile and the prestige associated with new technology. Citizens, rather than being encouraged to maintain community standards, were urged to stay behind locked doors and call 911. Car patrol eliminated the neighborhood police officer. Police were pulled off neighborhood beats to fill cars. But motorized patrol—the cornerstone of urban policing—has no effect on crime rates, victimization, or public satisfaction.” (1371)
This has encouraged a detachment of officers from the communities they police. Quick response time becomes the goal and officers spend time in their car waiting to be “activated” on 911 calls. The only interaction between officers and residents is limited to such 911 call responses, which can all potentially lead to confrontations. But that is still the way policing is done and the way it is taught at the academies, guided by the three “R”s:
But the institutional context very poorly accounts for the interaction rituals that guide the interaction between officers and residents:
“Police officers usually know whether a group of suspects is actively, occasionally, or never involved with selling drugs. Some residents, often elderly, believe that all youths, particularly those who present themselves as “thug” or “ghetto,” are involved with drug dealing. If police respond to a call for a group of people known not to be criminals, police will approach politely. If the group seems honestly surprised to see the police, they may be given some presumption of innocence. An officer could ask if everything is all right or if the group knows any reason why the police would have been called. If the suspects are unknown to a police officer, the group’s response to police attention is used as the primary clue. Even with a presumption of guilt, a group that walks away without being prompted will generally be allowed to disperse. If a group of suspects challenges police authority through language or demeanor, the officer is compelled to act. This interaction is so ritualized that it resembles a dance.
If temporary dispersal of a group is the goal, the mere arrival of a patrol car should be all that is needed. Every additional step, from stopping the car to exiting the car to questioning people on the street, known as a “field interview,” is a form of escalation on the part of the police officer. Aware of the symbolism and ritual of such actions, police establish a pattern in which a desired outcome is achieved quickly, easily, and with a minimum of direct confrontation. Rarely is there any long-term impact. When a police officer slows his or her car down in front of the individuals, the suspects know the officer is there for them and not just passing through on the way to other business. If a group of suspects does not disperse when an officer “rolls up,” the officer will stop the car and stare at the group. A group may ignore the officer’s look or engage the officer in a stare-off, known in police parlance as “eye fucking.” This officer’s stare serves the dual purpose of scanning for contraband and weapons and simultaneously declaring dominance over turf. An officer will initiate, often aggressively, conversation from the car and ask where the suspects live and if they have any identification. Without proof of residence, the suspects will be told to leave and threatened with arrest. If the group remains or reconvenes, they are subject to a loitering arrest. Police officers always assert their right to control public space. Every drug call to which police respond—indeed all police dealings with social or criminal misbehavior—will result in the suspect’s arrest, departure, or deference.” (1494 – 1507)
And a great deal of these interactions are also guided by the need, on both sides, to not lose face, be seen as weak or easily punked. These interactional factors may often determine whether an officer gets out of his car or not, sometimes triggering contempt from the residents. So, officers tend to like car patrols as opposed to foot patrols which are tiring, leave one vulnerable to the elements, and potentially preventing crime. Rapid response is easier and more popular with officers. People commit crimes, you get there fast, you arrest them.
Overall, Moskos advocates for greater police discretion and more focus on quality of life issues as opposed to rapid response while acknowledging that this is not without problems. I don’t think there ever were a golden age of policing where communities and law enforcement worked harmoniously together for the greater good and the end of broken windows (a discredited theory not questioned by Moskos), especially when minorities were involved.
But the bottom line, for Moskos, that the current War on Drugs is a massive failure and a waste of resources (and Moskos does go into some details of the history of drug policies and enforcement in the US, a useful reminder of the racialization of public policy) and should be replaced by a variety of policies (not all drugs are the same) with three goes in mind:
“We changed our country’s culture toward cigarette smoking. It took effort and did cost money. But most of the money came from legally taxed revenue and the cigarette companies. High taxation discourages new users from starting. Public service messages tell the truth (mostly) about the harms of tobacco. Not only is this a great victory for public health, it is perhaps our country’s only success against any pop u lar addictive drug. Drug policies could follow a similar approach: tax drug sales; treat drug abuse as a medical and social problem; set realistic goals of reduced drug use; and allow localities control over their own drug policies.
Simply decriminalizing possession is not enough. Legalization must not allow armed drug-dealing thugs to operate with impunity.” (2686 – 91)
Now, none of this deals with urban ghettoization and the lack of economic opportunities in inner cities but that it is not really the goal of criminal policy. This also means that the incentives for officers to do counter-productive work need to be changed and we all know that bureaucracies are not easy to transform. In such cases, resistance is not futile.
So, even though I don’t fully agree with all of Moskos’s recommendations and ideas (I am much more suspect of police discretion than he is), I recommend the book as it does provide extensive food for thought.
This awesome animation from The Guardian is an absolute must-see:
A very clear explanation of inequalities.
So, of course, everyone and their brothers is talking about this article by Joe Nocera:
“On Friday, the law firm of Steven J. Baum threw a Halloween party. The firm, which is located near Buffalo, is what is commonly referred to as a “foreclosure mill” firm, meaning it represents banks and mortgage servicers as they attempt to foreclose on homeowners and evict them from their homes. Steven J. Baum is, in fact, the largest such firm in New York; it represents virtually all the giant mortgage lenders, including Citigroup, JPMorgan Chase, Bank of America and Wells Fargo.
The party is the firm’s big annual bash. Employees wear Halloween costumes to the office, where they party until around noon, and then return to work, still in costume. I can’t tell you how people dressed for this year’s party, but I can tell you about last year’s.
That’s because a former employee of Steven J. Baum recently sent me snapshots of last year’s party. In an e-mail, she said that she wanted me to see them because they showed an appalling lack of compassion toward the homeowners — invariably poor and down on their luck — that the Baum firm had brought foreclosure proceedings against.
When we spoke later, she added that the snapshots are an accurate representation of the firm’s mind-set. “There is this really cavalier attitude,” she said. “It doesn’t matter that people are going to lose their homes.” Nor does the firm try to help people get mortgage modifications; the pressure, always, is to foreclose.”
Is anyone really surprised by this? If anything, what the current economic crisis have made plainly clear is the sociopathic nature of the system that trickled down to individual behavior. I blogged about this several times here, here and here.
And there were clues to this sociopathy even before the collapse of 2008. Remember this?
This was a taste of things to come. The behavior of the traders, and their socially-acceptable sociopathy is something that I also discussed a while back here, here, and here, using as a basis this excellent post by Denis Colombi. Which is why it is somewhat ironic that the truth about neoliberal governance comes from a trader:
And, again, these photos (in response to Occupy Wall Street) have also made the rounds and are pointing in the same direction:
It is not hard to grasp the symbolic nature of these images, where the Cloud Minders are having a good laugh, drinking on the job, while looking down at the Troglytes.
Of course, what they are laughing is not so much a bunch of hippies on the ground. They are laughing at this:
“Greeks are seeing an unprecedented collapse in their standard of living. The official unemployment rate is 16.5 per cent, but the real number out of a job is believed to be much higher. Sitting in Father Christodoulos’s office is ‘Makis’ Prothremos Kastikidis, an unemployed shipyard worker who now helps organise the distribution of food by the church. Some 4,000 people lost their jobs when his yard closed three years ago and he says 90 per cent are still jobless. His own situation is becoming desperate. The electricity, water and gas in his apartment have been cut off for non-payment of bills, and, since he has no money, he has reconnected them illegally. “I still can’t pay the mortgage,” he says. “The future is very dark.”
For some in Athens the darkness is already closing in. Beside a park in the centre of Athens, Mary Pini, a journalist by profession, comes six days a week to organise the feeding of a thousand people. The distribution of food, managed and organised by the Greek Orthodox Archdiocese of Athens, the Anglican Church and the Nigerian community, started off at Easter 2009 as a temporary measure to feed out of work immigrants. Ms Pini says that at first she fed immigrants, homeless and drug addicts “but now 35 per cent of the people who come here are Greeks, and they are just the sort of people who might be your next door neighbour.”
There is no doubt that the people she is feeding are hungry. As they crowd around her snatching at loaves of bread she is taking out of cardboard box, Ms Pini shouts at them to get back in line. Others who have already received their ration sit in a nearby park and wolf down food from tin foil containers. “I think things will get a lot worse,” she says. “They’ve taxed Greeks too much and they can’t survive on the money they get.” Even before the crisis Greece was one of the poorest and most unequal of the Eurozone countries and safety nets for the poor are limited Ms Pini complains that “help, which the government should have provided, has been left to the NGOs and the church.”
Sitting close by was a woman who gives her name as Elena and spoke fluent English with a strong American accent. She said “I was brought up in New York and in Belgium and my father, who was Greek, later admitted it was the worst mistake in his life when he brought me back here as a young girl.” She has lived for the last 25 years in Greece and, until 2009, though she speaks French as well as Greek and English, had a job in a cake factory, but was laid off. She worked for a company giving out leaflets in the street advertising shops, but her employers kept on not paying her. She says “it is very difficult to get a job here and Greece is worst place in Europe to be unemployed.” Mary, her sick husband and their seven year daughter come to the feeding point to be sure of at least one meal a day. “They let my daughter sit in their office so she doesn’t see all the people grabbing for food,” she says. “People like us never saw any of the money the government borrowed.”
Greeks of every kind agree that the economic depression is getting worse and the government is incapable of providing solutions. George Tzogopoulos, an expert on the Greek media and public opinion at the Bodossakis Foundation think tank in Athens, says the message from the public is that “the politicians who led Greece into the crisis cannot save the country.”
He believes one of the problems is that the Greek media portrays the crisis as the fault of foreigners intent on dominating the country. German Chancellor Angela Merkel is a favourite target. Conspiracy theories abound, explaining why Greece has been singled out for punishment. “If you look at the Greek media you would not think we were not responsible in any way for what happened,” he says. “It never portrays the crisis as an opportunity for Greece to change.”
Austerity measures insisted upon by the Troika – the EU Commission, the European Central Bank and IMF – have been introduced, but not the structural reforms that are part of the same package. Greece is still a long way from cutting the size of its Byzantine state machine and forcing the wealthiest 20 per cent of Greeks to pay taxes.”
They are also laughing at this (which entrenches their power):
“Economists and political scientists believe the US has entered a new Gilded Age, a period of systematic inequality dominated by a new class of super-rich. The only difference is that, this time around, the super-rich are hedge fund managers and financial magnates instead of oil and rail barons.
Even for a country that loves extremes, this is a new and unprecedented development. Indeed, as Hacker and Pierson see it, the United States has developed into a “winner-take-all economy.”
The political scientists analyzed statistics and studies concerning income development and other economic data from the last decades. They conclude that: “A generation ago, the United States was a recognizable, if somewhat more unequal, member of the cluster of affluent democracies known as mixed economies, where fast growth was widely shared. No more. Since around 1980, we have drifted away from that mixed-economy cluster, and traveled a considerable distance toward another: the capitalist oligarchies, like Brazil, Mexico, and Russia, with their much greater concentration of economic bounty.”
This 1 percent of American society now controls more than half of the country’s stocks and securities. And while the middle class is once again grappling with a lost decade that failed to bring increases in income, the high earners in the financial industry have raked in sometimes breathtaking sums. For example, the average income for securities traders has steadily climbed to $360,000 a year.
Still, that’s nothing compared to the trend in executives’ salaries. In 1980, American CEOs earned 42 times more than the average employee. Today, that figure has skyrocketed to more than 300 times. Last year, 25 of the country’s highest-paid CEOs earned more than their companies paid in taxes.
By way of comparison, top executives at the 30 blue-chip companies making up Germany’s DAX stock market index rarely earn over 100 times the salaries of their low-level employees, and that figure is often around 30 or 40 times.
In a medium-term, the consequences of this societal divide threaten the productivity of the entire economy. Granted, American economists in particular have long espoused the view that inequality is simply a necessary side effect of above-average growth. But that position is now being called into question.
In fact, recent research indicates that the economies of countries experiencing periods of pronounced inequality often show considerably less growth and more instability. On the other hand, it also finds that economies grow faster when income is more evenly distributed.
In a study published in September, the International Monetary Fund (IMF) also concluded that: “The recent global economic crisis, with its roots in US financial markets, may have resulted, in part at least, from the increase in inequality” in the country.
Differences between rich and poor are tolerated as long as the rags-to-riches story of the dishwasher-turned-millionaire remains theoretically possible. But studies show that increasing inequality and political control concentrated in the hands of the wealthy elite have drastically reduced economic mobility and that the US has long since fallen far behind Europe on this issue. Indeed, only 4 percent of less-well-off Americans ever successfully make the leap into the upper-middle class.”
And such consolidation of wealth has also been accompanied by corporate concentration:
“AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.
The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.
Previous studies have found that a few TNCs own large chunks of the world’s economy, but they included only a limited number of companies and omitted indirect ownerships, so could not say how this affected the global economy – whether it made it more or less stable, for instance.
The Zurich team can. From Orbis 2007, a database listing 37 million companies and investors worldwide, they pulled out all 43,060 TNCs and the share ownerships linking them. Then they constructed a model of which companies controlled others through shareholding networks, coupled with each company’s operating revenues, to map the structure of economic power.
The work, to be published in PLoS One, revealed a core of 1318 companies with interlocking ownerships (see image). Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What’s more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the “real” economy – representing a further 60 per cent of global revenues.
When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.“
It’s their world. We just live in it.
“The Ministry of Justice’s statistical report published yesterday into the riots must bring misery to the ears of those like Michael Gove who wished to argue that the root causes of the riots was a lack of morals and values and not poverty. The government’s own figures show that the rioters were in general less educated, young, and ultimately poor.
For me the rioters resembled more the people I grew up with than the people I attended University with. Of course, there are poor people who do not engage in crime, I was one, but as any criminologist worth their salt will tell you, those more likely to engage in the sort of crime that we saw in the riots, are those with less to lose. And if the above evidence proves anything, it is that those with the least to lose, were certainly those who lived in areas of London where rioting took place.
Oscar Wilde once wrote that: “There is only one class in the community that thinks more about money than the rich, and that is the poor. The poor can think of nothing else. That is the misery of being poor.” The misery of the likes of Michael Gove is their inability to see such misery.”
As a general rule, any moral argument advanced to explain social phenomenon usually amounts to little more than privilege protection and never leads to reasoned public policy but increased discipline against the disadvantaged.
Because it is THE issue facing many societies today, with negative effects across the board, and yet, it is largely ignored:
“The incomes of the richest sections of society are soaring in the UK, China and India, and in most other countries as well. The poorest groups are seeing slow improvements at best, and often decline. Recent estimates indicate that at the current rate it will take more than 800 years for the bottom billion of the world population to achieve 10% of global income.
The UN general assembly began its 66th session last week. Many of the heads of state attending will no doubt report on their country’s progress towards the millennium development goals. They’re also likely to discuss the targets that will succeed the MDGs after 2015. However, there will almost certainly be a looming gap in these presentations: the rising inequalities between and within countries.
A year ago, coinciding with the UN MDG summit, the Institute of Development Studies (IDS) and the MDG Achievement Fund released a report showing that the MDG targets largely overlooked inequality. Even in countries where there has been progress towards the MDGs, inequalities have grown. A Unicef study shows that only a third of the countries that have reduced national rates of child mortality have succeeded in reducing the gap between mortality rates in the richest and poorest households.
Inequality matters not just for those at the bottom. Highly unequal countries tend to grow more slowly, are more prone to conflict and have weaker civil societies. The much-cited study The Spirit Level found that across developed countries, crime, disease and environmental problems were exacerbated by inequality. Such ill effects in society made everyone worse off, even the middle classes.”
And yet, reducing poverty is essential to development and healthier societies:
“The meeting examined successful inequality reduction policies, sharing the lessons of a handful of countries that have defied the global trend. Thirteen countries in Latin America, including Brazil, Argentina and Chile, have narrowed the gap between the incomes of the poorest and wealthiest groups over the last decade. Similar positive trends have been seen in Malaysia, Thailand and in several African nations.
How was progress possible in these countries? Inequalities fell when governments expanded social protection programmes like Brazil’s Bolsa Familia. Minimum wage legislation and policies allowing more people to access secondary and higher education also contributed to success. Successful countries used progressive taxation or channelled mining and oil revenues to fund inequality-reducing programmes.”
These programs have been discussed at length in Just Give Money to the Poor.
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