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# Chronic Unemployment

### Neoliberalism as the Cause of Chronic, Structural Unemployment in the USA

 News Over 50 and unemployed Recommended Links Chronic stress Computers eat people Underemployment Eroding Western living standards The neoliberal myth of human capital Perma Temps Adverse Selection Scapegoating and victimization of poor Productivity Myth and "Rising labor costs" hypocrisy Neoliberalism and Christianity The problem of inequality Neoliberalism as a New Form of Corporatism Corporatism Casino Capitalism If Corporations Are People, They Are Psychopaths Toxic Managers Office Stockholm Syndrome Learned helplessness Unemployment after graduation Fake Employment Statistics Destructiveness of GDP Mania Financial Sector Induced Systemic Instability Economics Pseudo Theories Notes on Republican Economic Policy John Kenneth Galbraith Invisible Hand Hypothesis Inflation vs. Deflation Lysenkoism Financial Humor Humor Etc
 Unemployment offices, homeless shelters,  hospitals, prisons and casinos. and are the only real growth industries of Obama Administration. In Jan 2010 35 millions, or one in eight Americans, were on food stamps. Obama's  biggest — and only major — jobs program is the U.S. military When I was a kid they told us that automation would "free" us from working long hours. What they didn't tell us what that they weren't going to pay us for all this leisure time we'd get.Mass unemployment is the primary indication of the collapse of a given form of society -- James Burnham

### Introduction

 "Unemployment" statistics has been the political advertising media for every Administration in modern timesFrom comment in The Rise of Invisible Unemployment  The Atlantic, Nov 9, 2014

Chronic unemployment is an immanent feature of neoliberalism, which requires the army of unemployed to suppress wages in order to increase share of profits for the top 1$and, especially, the top 0.01%. Another problem is secular (long-term) stagnation of the economy due to destruction of consumer demand, which comes with the deterioration of the standard of living and high level of unemployment. As Pope Francis noted: ...Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalized: without work, without possibilities, without any means of escape. Human beings are themselves considered consumer goods to be used and then discarded. We have created a “disposable” culture which is now spreading. It is no longer simply about exploitation and oppression, but something new. Exclusion ultimately has to do with what it means to be a part of the society in which we live; those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the “exploited” but the outcast, the “leftovers”. ... ... ... One cause of this situation is found in our relationship with money, since we calmly accept its dominion over ourselves and our societies. The current financial crisis can make us overlook the fact that it originated in a profound human crisis: the denial of the primacy of the human person! We have created new idols. The worship of the ancient golden calf (cf. Ex 32:1-35) has returned in a new and ruthless guise in the idolatry of money and the dictatorship of an impersonal economy lacking a truly human purpose. The worldwide crisis affecting finance and the economy lays bare their imbalances and, above all, their lack of real concern for human beings; man is reduced to one of his needs alone: consumption. The institutions of neoliberal capitalism, while promoting an expanded role in the economy for "market forces" (read "financial oligarchy") simultaneously transform labor relations. The “market” under neoliberalism certainly no longer refers to competition as a form of the production and distribution goods and services. Instead, it means something more along the lines of international financial monopolies protected by collusion between captured vassal state institutions (including neoliberal fifth column domination in the all major branches of government, especially executive and legislative branches, educational institutions and media) and multinationals, which pay money to sustain this social order. The term “Free markets” under neoliberalism means letting rich people do what they want, not promoting efficient allocation of resources through competition and the price mechanism. The core of the fifth column are local oligarchs and so called "Chicago boys": sons and daughters of local elite who are trained for and indoctrinated for this purpose in Western universities. As aptly noted Neoliberalism – the ideology at the root of all our problems ( The Guardian, April 15, 2016) We internalize and reproduce its creeds. The rich persuade themselves that they acquired their wealth through merit, ignoring the advantages – such as education, inheritance and class – that may have helped to secure it. The poor begin to blame themselves for their failures, even when they can do little to change their circumstances. Never mind structural unemployment: if you don't have a job it's because you are unenterprising. Never mind the impossible costs of housing: if your credit card is maxed out, you're feckless and improvident. Never mind that your children no longer have a school playing field: if they get fat, it's your fault. In a world governed by competition, those who fall behind become defined and self-defined as losers. Under neoliberalism labor relations assumes the form of full domination of labor by capitalists. Unions are officially suppressed and large part of middle class is brainwashed to hate using set of propaganda stories about unions corruption, welfare quinsy, lack of competitiveness in unionized industries (with Detroit as a prime story), etc. In this sense crushing by Reagan of the strike of air controllers was one of the first manifestation of this dominance. Workers again are downgraded to the role of debt slaves, who should be glad to get subsistence wages. And, for example, wages in Wal-Mart are really on subsistence level, no question about it (Making Change at Wal-Mart » Fact Sheet – Wages): Wal-Mart jobs are poverty-level jobs. Wal-Mart's average sale Associate makes$8.81 per hour, according to IBISWorld, an independent market research group. This translates to annual pay of $15,576, based upon Wal-Mart's full-time status of 34 hours per week1. This is significantly below the 2010 Federal Poverty Level of$22,050 for a family of four. The Wall Street Journal reported that the average Wal-Mart cashier makes just $8.48 an hour, far below the$11.22 national average for all cashiers.

This contrasts with the capital-labor compromise that characterized the state capitalism that existed several post-WWII decades and that was crushed by neoliberalism in 1970th. Neoliberalism also brought change in the relation between financial and non-financial capital: financial capital now again like in 1920th plays a dominant role dictating the rules of the game to manufacturing sector and controlling it via banks.

Under neoliberalism the wealthy and their academic servants, see inequality as a noble outcome. University professors of economics form the most corrupt part of intellectual elite – they are nothing more than employees of the financial oligarchy paid to administer intellectual anesthetic to those among debt slaves, who still have enough time to ask what’s going on. They want to further enrich top 1%, shrink middle class making it less secure, and impoverish poor.  That's an officially state goal. Then in 1992, when asked what Iran-Contra was really all about, Bush I replied that it was done for "...the continuous consolidation of money and power into higher, tighter and righter hands."

The upward redistribution of wealth requires high unemployment to weep prols into unconditional obedience.  In other words neoliberalism and high unemployment are twins.

Under the disguise of "free market" Newspeak  neoliberals promote a type of economy which is often called a plantation economy. In this type of the economy all the resources and power are in the hands of a wealthy planter class who then gives preference for easy jobs and the easy life to their loyal toadies. The wealthy elites like cheap labor: it's much easier to  dictate their conditions of employment when unemployment is high.

Keynesian economics values the middle class and does not value unemployment or cheap labor, so it is incompatible with neoliberal ideology and needs to be suppressed.  Neoliberals created the system which richly reward stooges of neoliberalism for their loyalty to the top 1%  bestowing on them an easier life than they otherwise merit. In a meritocracy where individuals receive public goods and services that allow them to compete on a level playing field, many neoliberal academic toadies would be losers who cannot compete.

One of the most important measures of the health of an economy is the following criteria: how many fulfilling, living-wage jobs are created or destroyed (most other economic factors can be distilled to this.). For example, widely used measure of economic growth, GDP is too influenced by financial masturbation and does not distinguish useful activity from harmful or irrelevant.

Under neoliberalism the elite revived Roman emperor Septimius Severus advice to his sons before he died at Eboracum (York) on  February 4, 211:

"Avoid infighting, pay well the soldiers, and ignore everybody else" .

So during the Great Recession Congress simply tuned backs to unemployed. With the implicit message you just need to die out folks ;-).

Military budget at the same time was greatly expanded and several unnecessary wars were launched.  Brainwashed American public eats all those neoliberal policies like real lemmings, demonstrating the level of groupthink and lack of critical thinking that is typical for high demand cults. So the myth about highly conscious "proletariat" that Marxists cherished remains a myth. Moreover quite opposite tendencies to creation of "enlightened lower classes" show their ugly face (Chris Hedges America is a Tinderbox naked capitalism):

ictus92, July 21, 2013 at 5:07 pm

To paraphrase Madeline Albright: “What’s the point of creating a totalitarian police state if you’re not going to use it?”

So where is the American totalitarian state going? If you look at the NDAA and the discussion around repealing the Posse Comitatus Act, the key words include quelling “domestic civil unrest”… So what are the “deep government” types anticipating so hysterically?

Well, the financial crisis keeps grinding away and is about to enter another phase of collapse as “quantitative easing” has run its course. Interest rates are rising, posing “technical insolvency” of the Federal Reserve itself. What this means is that time’s up for the 46 million in the Food Stamp Supplemental Program; 56 million getting Social Security retirement or disability benefits; and at least 20 million more needing full time employment. Obviously there’s some overlap, but the total number of people living on the margins of subsistence pushes 30% of the population.

For these, they face an immediate “Final Solution”… not exactly direct extermination, but death by deprivation, illness etc. Can work camps be far off for these tens of millions and the many millions more living paycheck to paycheck? This population and their sympathizers comprise the tinder for “civil unrest”. Hence the corollary to the famous “Collect it all” (communications) is “control it all” (civil disorder following further economic collapse).

Furthermore, prolonged neglect of key infrastructure will lead inevitably to severe food, water and electric power access shortages — another source of civil unrest potential.

Of course, overseas the totalitarian police state eliminates all expression of opposition that can change policies in the quest for “Permanent War” and “full spectrum” military dominance. This ends in global military confrontation… just as the financial crisis of the 30’s gave rise to another World War… only this time around world war will pitch towards thermonuclear war in short order. That’s how totalitarian regimes collapse into catastrophe, dragging the rest of us to an unpleasant demise.

Unfortunately, I don’t think there’s a damn thing any of us can do to arrest this beserk Levithan…

tongorad, July 20, 2013 at 3:21 pm

This is America, not Denmark. In this country, tens of millions of people choose to watch FoxNews not simply because Americans are credulous idiots or at the behest of some right-wing corporate cabal, but because average Americans respect viciousness.

They are attracted to viciousness for a lot of reasons. In part, it reminds them of their bosses, whom they secretly adore. Americans hate themselves for the way they behave in public, always smiling and nodding their heads with accompanying really?s and uh-huhs to show that they’re listening to the other person, never having the guts to say what they really feel. So they vicariously scream and bully others into submission through right-wing surrogate-brutes. Spending time watching Sean Hannity is enough for your average American white male to feel less cowardly than he really is.

The left won’t accept this awful truth about the American soul, a beast that they believe they can fix “if only the people knew the Truth.”

But what if the Truth is that Americans don’t want to know the Truth? What if Americans consciously choose lies over truth when given the chance–and not even very interesting lies, but rather the blandest, dumbest and meanest lies? What if Americans are not a likeable people? The left’s wires short-circuit when confronted with this terrible possibility; the right, on the other hand, warmly embraces Middle America’s rank soul and exploits it to their full advantage. The Republicans know Americans better than the left. They know that it’s not so much Goering’s famous “bigger lie” that works here, but the dumber and meaner the lie, the more the public wants to hear it repeated.”

“We, The Spiteful” by Mark Ames

Dave, July 20, 2013 at 8:18 pm

Please consider that the “right” is far more realistic in their assessment of human nature. The “left” wants things to be according to what they think it should be, mostly because of their left wing educators. The majority of humans are not perfectible.

Even Asians, with their highly socialized societies, have behaved very badly towards those outside their country.

This tendency of self-deception of "blue color America" and resonating of Republican Party ideas within "working poor" and lower middle class, two strata of the US society that typically votes against its own economic interests is analyzed in   What's the matter with Kansas  And to fight neoliberal machine is not easy as media dominance is total, and on a new technological level, which does not require silencing of opponents, just ignoring them, approach the level typical for the USSR or Nazi Germany.  And even if some people question the system, like (at the very beginning) Tea Party did, or later "Occupy Wall Street" movement did, they are mercilessly co-opted or crashed by well paid guard labor. The latter is one of the few  types of employment which prospers under neoliberal empire. See  The Rise of Guard Labor (dollarsandsense.org)

The reality is that many rich countries including the USA now face two problems. One is a shortage of jobs, especially middle class jobs.  The other is stagnant (or falling) wages for those outside top 1%.  This is not a temporary problem. Despite all the propaganda smoke this is an immanent feature of neoliberal regimes that now dominate in the USA and most other countries.  Neoliberalism requires high unemployment as a way to keep workers in check and prevent attempts to slow down redistribution of wealth toward the top.

As George Bush Sr . noted in November 1992 neoliberalism is "the continuous consolidation of money and power into higher, tighter and righter hands". The essence is  the consolidation of money and power to the top 0.1% or even 0.01%.  In a very deep sense our new lords from financial and political oligarchy are not that different from feudal aristocracy, may be only less educated, more prone to avoid military service and much more greedy.

Unlike Keynesian economy which put middle class in the center of society serving a buffer between rich and poor,  under neoliberalism  middle class is no longer needed as a buffer between aristocracy and proles, as repressive power of the state and regime of total surveillance (National Security State) makes an organized opposition practically impossible. The fate of "Occupy Wall Street" movement is nice illustration here.

On the other hand neoliberalism as an ideology, while discredited by event of 2008 still does not have any viable alternative.  Socialism was discredited by collapse of the USSR (which in reality was a neoliberal counterrevolution by Soviet nomenklatura including part of KGB).  Authoritarian versions of state capitalism does not look too attractive, despite being quite effective as was proven by economic progress of "Asian tigers".

Other important factors are also in play. Technology has stripped away the ability for many to hold a job and the trend continues.  In other words automation eats jobs. Outsourcing eats jobs too. Between those two trends almost no job growth left. This is a structural situation, not transitional caused by recession due to aftermath of 2008 financial bubble bust.  In other words jobs that disappeared will never return. And jobs in construction sector and finance were artificial and unsustainable in any case, crisis or no crisis (as in "what can't last forever eventually stops." )

We are in the midst of slow motion employment collapse. Eurozone unemployment recently reached 12%. The US has probably 20% rate of involuntary unemployment now. The official unemployment "rate" is lower, but that is because both 60-65 years old and 20 to 24 year olds are dropping out of the wage force.

Add to this "peak energy" problem and the situation looks really bleak. That's the funny thing about oil and modern civilization -- almost everybody in large western urban centers is dependent on mass produced technology (much of which was invented before we were born) and cheap oil (and generally cheap energy), Those who live in those urban centers no longer have any direct control or ability to produce own food or transportation energy or heating. those three activities are completely outsourced. See Peak Oil Demand is Already a Huge Problem.

Globalization is yet another problem. I was actually surprised by how many jobs large corporations managed to shred during 2008-2013 without negatively affecting  profitability.  The impression is that it is no low limit.  Usual wisdom is that if you shred too much, this labor shortage will bite you in a couple of years. This is no longer the case in the USA. No visible backlash at all.  Even consumption that should be suffering due to destruction of middle class in this process is no suffering much, because it was already mostly top 1% game and, as such, is recession proof. Here is one interesting comment form Krugman column Globalization and Macroeconomics - NYTimes.com

Floxo Australia

The analysis is flawed. The issue is not goods trade - on its own, this is relatively benign. The real problem is the associated capital drain. Owners of capital will transfer productive capital abroad for better returns. This process creates deep structural problems for all developed economies. Here are some basic predictions:

• Real wage stagnation. Labor is less productive having less capital to work with.
• Rapid rise in income by capital owners. The big winners in this scenario, not only do they earn higher rents abroad, they earn higher rents at home as capital is now more scarce there.
• Rise in inequality - obviously, from above.
• Slow growth. Capital formation is moderated by the constant capital drain so grows more slowly than otherwise.
• Increase in structural unemployment. Because capital transfer abroad is slower than internal capital transfer, the restructuring is long term as opposed to the short to medium term restructuring that occurs in goods trade.

Recessions are difficult to manage and may become protracted. In a downturn, capital formation dries up but the capital drain continues. This erodes the output gap. A fiscal stimulus now has less headroom for expansion. On top of that, an increase in domestic demand may be met by investment in productive capital abroad; the domestic investment response is missing. This may even cause a fall in labor productivity ( UK productivity puzzle?).

In short, globalization IS the problem.

### Unemployment and well being

Recessions generate inequality in both income and well-being: people who lose their jobs bear a disproportionate burden of the recession.  As Kathleen Geier noted the impact of unemployment on well-being it’s even worse than you thought

While reading this odd and meandering New York Times op-ed this morning, I stumbled upon a link to a fascinating study from last year on the impact of unemployment on non-monetary well-being. It was conducted by Stanford sociologist Cristobal Young, who discovered that unemployment has an even more catastrophic effect on personal happiness that we thought.

The study produced three major findings. The first is the devastating impact job loss has on personal well-being. Job loss, says Young, “produces a large drop in subjective well-being”:

Job loss into unemployment, however, is a different matter; this brings on deep distress that is greater in magnitude than the effect of changes in family structure, home-ownership or parental status. The distress of job loss is also hard to ameliorate: family income does not help, unemployment insurance appears to do little and even reemployment does not provide a full recovery [italics mine].

The second finding is that while unemployment insurance (UI) is successful as a macroeconomic stabilizer, it doesn’t make unemployed people any happier. UI, says Young:

is not central to their sense of well-being… [Snip] …[ I]t does little to support their identity, sense of purpose or self-regard.

Third, job loss has a strong, lasting negative impact on well-being that may persist for years:

[J]ob loss has consequences that linger even after people return to work. Finding a job, on average, recovers only about two thirds of the initial harm of losing a job. It is not clear how long it takes for the nonpecuniary effect of unemployment to heal.

Other research suggests that what Young refers to as “the scarring effect” of job loss can last from three to five years, or even longer. He also notes that “the more generalized fear of becoming jobless” may persist.

Young’s discussion of these findings stresses the inequality theme. He points out that “recessions generate inequality in both income and well-being: people who lose their jobs bear a disproportionate burden of the recession.” He suggests job-sharing as a way to reduce the concentrated misery of unemployment. That’s a great idea that unfortunately never seems to go anywhere. Employers today seem more interested in squeezing as much labor out of employees as possible for the lowest cost. They’re looking to shrink their payroll rather than expand it. And unfortunately, there are very few public policies that promote job-sharing, let alone do it effectively.

The sheer human misery created by the economic downturn has been stunning. The economic damage is, in some ways, the least of it. Another study shows that the long-term unemployed experience shame, loss of self-respect, and strained relationships with friends and family. They even suffer significantly higher rates of suicide.

Yesterday, Paul Krugman and others discussed the impact of economic inequality vs. unemployment on income. Krugman argued that inequality has had the greater impact, and I agree. Among other things, inequality is also the root cause of the unemployment problem. Special interests which have disproportionate power in our political system prevented more stimulus and inflicted an austerity agenda, which has had a disastrous effect on employment. Enacting an economic equality agenda will be huge political challenge, but it’s the only way I can see of ultimately resetting the priorities of our government so that it starts working on behalf of ordinary Americans again.

### Official measures of unemployment

There are two popular unemployment measured U3 (commonly cited as "official unemployment rate", which dramatically understates real unemployment) and U6, which is close to actual unemployment rate as was measured during the Great Depression. U3 is often as low as half of U6 (that's why it sometimes called 50 cents unemployment rate). As The Big Picture note in the entry Unemployment Reporting

• U3 is the "official unemployment rate" according to the BLS website. Due to this, it is the current measure of Unemployment that gets focused upon by most media, and therefore the public. It has, over the years, slowly excluded many of the factors that USED to go into how the US reported unemployment. Hence, there has been a gradual decrease in the Unemployment rate that has occurred regardless of what was happening in the Jobs market. U3 is now comprised in a way that merely repeating it without a slew of caveats borders on fraud.

• U6, on the other hand, is the broadest measure of Unemployment: It includes those people counted by U3, plus marginally attached workers (not looking, but want and are available for a job and have looked for work sometime in the recent past), as well as Persons employed part time for economic reasons (they want and are available for full-time work but have had to settle for a part-time schedule).

Its been pretty obvious for sometime that the Financial Media are doing a disservice to their readers by only reporting U3, given how dramatically it understates Unemployment. Indeed, consumer sentiment reports are at deep negative levels that only occur when Unemployment is much than what U3 has been saying. It is painfully obvious that U3 does not paint an accurate view of the Employment situation.

Here's the experiment I propose: Let's start reporting both, with appropriate descriptions of each. Report U3, add U6, provide monthly and year over year changes. Let the reader see the full picture, via BLS data.

### Factors that make the current unemployment structural

I would like to stress it again: many factors point to the fact that the current level of unemployment is mostly structural. In other words jobs eliminated will not be coming back. Among the most important factors we can mention:

1. Neoliberal ideology, which prevents strong government action and direct employment by government on infrastructure projects like during New Deal. Related to the dominance of neoliberalism the hypertrophy of financial sector lead to games with "Main street" after which high, self-sustainable (aka structural) unemployment for in now a destiny for millions. Making the whole society sick.

2. Outsourcing (which partially is due to much better communication channels available and computerized navigation)

3. Computerization (which directly "eats jobs" much like during industrial revolution in the UK).

4. High price of energy, which serves as strong depressing factor. If I remember correctly, a decade ago price of oil above $100 was considered an equivalent to permanent recession. This is never mentioned today, but still might be as true today as it was ten years ago: with the high price of oil the economic recovery is simply impossible. The only option, the only trajectory for economy is permanent stagnation. 5. Growth of "lumpen-proletariat". Narcoaddicts, alcoholics, single mothers from poor families with just high school diplomas, people with "generosity-based" high school (considerable part of Afro-Americans) and university diplomas from "diploma mills" (essentially fake diplomas), various categories of handicapped, people with criminal records (substantial part of Afro-American male population), etc. The first three factors changed the distribution of power between labor and capital in favor of capital; and those guys are not inclined to take prisoners, when there is a chance to fatten their pockets. None of the first three factors will probably be reversed soon, although neoliberal ideology is after 2008 entered a zombie state. Also computerization and Internet allowed capital and political forces behind it much better organize politically. So like in in previous human history well organized and wealthy minority dictates its will less-organized poor majority. I think that financial capital might eventually experience some setbacks. This bacchanalia of greed with those hedge fund which hack financial system left and right might come to an abrupt end with the rise of the price of oil. Even now price of oil indirectly pressure "masters of the universe". And remember famous slogan of 2008 "Jump suckers" ;-). It reflects the society attitude to financial oligarchy and as such entail certain dangers of "blowback" for all those derivatives games. Not under Obama watch as he is essentially a sock puppet of financial oligarchy. But eventually setback for "big finance" can happen. At the end of the day it is oil that is the real convertible currency and when oil production is diminishing or flat, financial oligarchy will be pushed back. Measures taken by political elite to save financial institutions after 2008 collapse means that unemployment is a part of a general political problem with neoliberalism as a social system. Under neoliberal regime the elite can't care less about long term unemployment. National Security State ensures the security of the neoliberal elite. Elections in the USA are a sham as two party system effectively blocks candidates outside the list approved by the current elite. The latter might even see sharp division of the society into "have" and "have nots" as a solution of oil depletion problem (Economist's View): bakho: Exactly. Monetary policy does not operate in a vacuum. Monetary policy operates in an economic system that includes fiscal and regulatory tools. It is a mistake to lock the fiscal and regulatory tools in a shed. Fiscal policy ALWAYS operates in a recession, at least in the form of automatic stabilizers, (UI, etc.) and sometimes in the form of additional stimulus. The meagre automatic stabilizers currently in place are enough for a mild recession, but are woefully short of what is needed in a recession like the recent one. The primary objection to fiscal policy manipulations is that fiscal policy is more easily politicized. This overlooks the fact that monetary policy is not only political, but bankers (who constitute a wealthy special interest) have an agenda that tilts monetary policy to their own self interests. The primary objection to using fiscal stimulus to address our unemployment crisis is POLITICAL. Wealthy special interests want pay less taxes and short term stimulus would interfere with their political agenda to roll back spending and reduce spending as a percent of GDP. Wealthy special interests have the upper hand at the moment because enough politicians are dependent on their campaign donations. However, this politicalization of fiscal policy, doing too little to address unemployment, is the prime force behind the Fed keeping interest rates low. If enough fiscal stimulus was enacted to quickly return to full employment and inflation at or slightly above the target, the Fed would not have to consider extraordinary measures. Anyone unhappy about extraordinary monetary measures should be urging Congress to fix unemployment now. This is not what our elites are doing. They are complaining about extraordinary monetary measures AND about additional stimulus. This suggests that these policy elites care nothing about social problems of long term unemployment, are content to have the US become a divided nation between haves and have nots and are content to oversee the creation of an underclass in order to concentrate wealthy upward. When one is saying that unemployment became a structural problem that means that it is immune to the business cycle. For example, during the last economic expansion (Jan 2002 -Dec 2007), the median US household income dropped by$2,000. In other words many Americans were worse off at the end of an economic cycle as jobs went outsourced to low wage countries due to wage arbitrage...

### Collapse of Casino Capitalism and unemployment

The collapse of “casino capitalism” model in 2008-2009 was so profound that all sectors of the economy became depressed. As securitization mess exploded in the face of their creators as it became clear to everybody that the king is naked. Debt overhand of financial industry is tremendous and it was just socialized, not removed. Essentially it became the problem of the USA government debt. In many ways problems the USA faces now are more serious then the problems the country faced during Great Depression because economic crisis doubles as the crisis of dominant ideology -- the ideology of neoliberalism.  And the Great Recession, despite Economic Cycle Institute premature desire to bury it, is still with us. Five years in the making as of 2013.

Ideology on which FIRE sector dominance was based is now questioned and that creates additional problems both nationally and internationally, much more internationally. Internationally it means a substantial loss of the USA "soft power", the factor that played tremendous role in the decade of 1990-2000.  When other country laugh at the US financial oligarchy tribulations it is difficult to open new markets selling old neoliberalism doctrine. due to debt overhand the US dollar is replaced by currency swaps in national currency for several major trading partners of China such as Brazil and Russia.   First of all that makes the crisis even deeper and analogies between the USSR and the USA more sinister. As with Stalinists in USSR who destroyed the country economically, there is a powerful block of republican dead enders and democratic supporters of financial oligarchy (blue dogs) who  will continue to promote the current neoliberal course with its deification of "free markets" (free as in "free shooting zone"), oblivious to consequences of neoliberal policies which eat the society and protected by the size of their accounts. There is nothing new here. Oligarchic  democracies can commit suicide. Actually none lasted long. And with such a formidable political wrecking crew in action and gridlock in Congress even over minor reforms that became less probable.

For all practical purposes two party system actually works like one-party system: democrats were also captured by FIRE industries to the extent that they should not be considered an independent party, but as a slightly more moderate wing of the Republican Party. Similarly by all accounts Obama is a moderate Republican with the policies to the right of such Republican Presidents as Dwight Eisenhower and Theodore Roosevelt. In a way, Democratic Party perform the role of spoiler: it exists for the sole purpose of attracting disgruntled left-wing electorate away from more radical parties. Republicans play symmetrical role for right wing crazies. None can or want to became the agent of change. In this sense Obama electoral slogan "change we can believe in" was a nasty, cruel joke of political insiders over political outsiders.  Note how unceremoniously Obama dumped labor after his reelection, while courting it during his reelection campaign.

As private sector is still downsizing, and government can't be the employer of last resort due to dominance of neoliberal ideology, the whole situation looks more and more like Japanese lost decade. The only area where government can expand workforce are defense contractors (military keysianism):

Minsky, however, argued for a “bubble-up” approach, sending money to the poor and unskilled first. The government - or what he liked to call “Big Government” - should become the “employer of last resort,” he said, offering a job to anyone who wanted one at a set minimum wage. It would be paid to workers who would supply child care, clean streets, and provide services that would give taxpayers a visible return on their dollars. In being available to everyone, it would be even more ambitious than the New Deal, sharply reducing the welfare rolls by guaranteeing a job for anyone who was able to work. Such a program would not only help the poor and unskilled, he believed, but would put a floor beneath everyone else’s wages too, preventing salaries of more skilled workers from falling too precipitously, and sending benefits up the socioeconomic ladder.

It is important to understand that the USA is not just coping with the largest financial crisis in history, the USA is also going through a major restructuring of the American economy as well as the world economy due to plato in oil extraction. This transformation, which was postponed by two decades due the collapse of the USSR (which gave the USA companies half billion of new consumers and huge area to dollarize and buy assets for pennies on a dollar), will be very long, very painful and very slow. One additional factor that complicates the picture of "peak oil", is that it is  more properly can be called "end of cheap oil", as at higher prices more oil became economically available. So this is  not a peak but long plato.

As GDP is highly correlated with the energy consumption, the side effect of peak oil will probably be stagnant (close to zero after inflation) growth and with it speed up in permanent decline of the standard of living for middle class

Also complicating the situation is the status of baby boomers which lost significant part of their savings during last two bubble bursts and now need to retire or will be pushed out of workforce. Pensions are already cuts either directly or indirectly (via inflation). For example, defined benefit pensions almost disappeared outside of government job force. After housing crash middle class no longer has a realistic prospect to fund their retirement and need to work longer: that increases competition for jobs. For middle aged professionals who are unemployed now the odds of finding reasonably paid work are low and they create additional competition for young people entering work force from universities. People over 50 now face especially poor job prospects.

At the same time corporate executives became corporate aristocracy (with differences in pay raising from 10-20 to 100-200 more of average corporate salary; this is the differences close to what used to exist in feudal societies). Most corporations are taking a lazy way out of the crisis with relentless cost-cutting.  This is a self-defeating strategy as cost cuttings eventually returns back via supply chain and bite the corporation which performs it. But so far this did not happened.

In addition productive sectors of economy are now under pressure of rampant financial speculation which serves as a huge tax on productive sectors of economy. Financial system is controlled by small number of large firms that permanently shifted their main activity into gambling and hacking of the financial system. There is some justice that computers which fueled all this crazy gambling on the strength of global reserve currency led to outsourcing of IT professionals to the extent that this part of US economy was destroyed and became a shadow of its former self in just ten years (2000-2010).

Another important sign of stagnation is that new college graduates face extremely bad job market which squeezes out anybody without substantial experience so for them it's Catch 22. Only graduates form Ivy League colleges has real prospect to get a job after graduation. Plus those with good family connections. In a way education is no longer a guarantee for better paying job, the same situation what was typical for the USSR and other countries of Eastern block during Brezhnev's stagnation.

There is also an interesting transformation of the quality of the education that also parallel transformation  experienced by the USSR in post-war period, but in especially acute form, three decades before the collapse. Private education became more like subprime lending.  It's quality became fake, as the term "diploma mills" suggests.  This rat rate to the lowest possible quality (quality instead of quality) was the central tendency in Brezhnev's USSR.

In the USA in addition to devaluation of education caused by low quality "everything passes, everybody graduates, just pay" modus operandi of diploma mills, graduates from lower middle class families are now overloaded with debt, which creates for them really difficult situation and push many of them into low level service jobs like waiting. In other words excessive debt after college make getting into workforce using acquired specialty even more difficult as there is no space for long job search, relocation is more difficult and so on and so forth.

There is also huge criminal industry that flourished around people desperate attempts to find well paying jobs. Many educational scams like "we will make you an ultrasound technician in six month; 90% of our graduates found jobs that pay over $60K in the first month after graduation" or " software tester in four month; 100% of our graduates find jobs" are trying to capitalize of people desperate to find job, any job and getting into crushing debt trying to improve their chances in job market. Those criminals are not prosecuted. For more information see: ### The main source on new jobs is service sector and the lion share of new positions are McJobs The employment growth comes mainly from the service sector which feeds off of consumer spending. It was hit by outsourcing especially in such areas as IT. Manufacturing no longer create jobs – outsourcing and computers eat them and you no longer need more people to make more stuff. Peter Dornan at EconoSpeak has the following comment which perhaps looks deeper at why the elite is so indifferent to mass unemployment and growing poverty in the U.S. “…The process is more complicated: where one sits in society and the kinds of problems one typically has to solve leads to a way of thinking, and this manner of thinking then informs politics. For centuries, the finance perspective has played a central role in economic theorizing, and there is ordinarily a body of research to support it. What I am proposing is this: economic orthodoxy is regaining control over policy because it reflects the outlook of those who occupy the upper reaches of government and business….” IMHO to get the economy out of this mess, government should concentrate on direct job creation (like was the case with Roosevelt administration), not on propping zombie banks hoping that they will generate credit necessary for creation o new jobs. Growth of credit will not happen and if it will happen it will not generate new jobs: most of it is pushed into speculation. Spectacular rise of S&P500 in first half of 2013 is a pretty good illustration of the process. Long term high unemployment is a disaster for the country and disaster for the people, despite the fact that it is irrelevant for banksters, too busy playing in the huge casino they created. Failure to address this problem directly by Obama administration (which in economic terms is the second Summers-Bush administration making a joke in the slogan "change we can believe in") make Obama a real serial betrayer of people who elected him, the role he seems enjoy playing. ### Additional factors the complicates the picture There are several additional factors that makes addressing the problem of chronic, structural unemployment even more difficult: 1. The economic crisis coincides with deep ideological and political crisis. • Ideological crisis because for the past 30 years the financial and industrial lobbies have managed to literally brainwash both the elites and masses with the now bankrupt neoliberalism ideology with such slogans as "free markets does not need regulation because it will adjust the imbalance itself", "less government is better", "1 dollar of tax is 1 wasted dollar" and so on... • Political crisis because the financial lobby have reached such the pinnacle of influence and after subprime crisis lost legitimacy. • The economic strategy of the last two administrations was/is based on pushing wages down to make the economy more competitive with Chinese and other Asian economies. State explicitly refuse to protect well-being of the people beyond bare economic survival: • “Labor market conditions for 16-19 and 20-24-year-olds in the city of Chicago in 2009 are the equivalent of a Great Depression-era, especially for young black men.” • In 2008, a startling 91.6 million people — more than 30 percent of the entire U.S. population — fell below 200 percent of the federal poverty line, which is a meager$21,834 for a family of four.
• the proportion of American marriages in which the wife makes more money rose to 22% in 2007 from 4% in 1970.
• The "new poor" class of people living of unemployment insurance emerges. Millions of peoples who were accustomed to the comforts of middle-class life or at least stable paychecks who are now relying on public assistance for the first time in their lives and potentially for years to come. Many two income families become one income families. Especially hard hit are people in their 50th as well as less-educated people, who has only a high school diploma. "Maximizing shareholder value" often means replacing people with equipment and this process accelerates during recessions. The term "a jobless recovery" has a very menacing subtext as far as long term unemployment is concerned. More education and skills no longer is guarantee for a job. But without them your changes to hit the class of the new poor more then doubled.

One can't solve the current problems the US are facing without the reform of the political system and institutions. Power of lobbyists need to be curtailed. Senate needs to be reformed.  Republican Party probably should be dissolved or temporary prohibited like Communists after the dissolution of the USSR as it is unable to reform. As there is no political will for political changes the crisis is structural and little people have to suffer.

2. Real economy was damaged by excessive growth of  FIRE sector and associated "fictional" economy.  Real economy can't support the current size of FIRE sector and it needs now to downsized. There is no smooth, painless route back to the easy-money based false prosperity of Reagan-Clinton-Bush era (age of leveraging). A new economy needs to be created for sustainable recovery because the old, FIRE-based was unsustainable. In 2010 housing probably will decline further. Both commercial and residential construction continues to decline. States continue to cut back budgets creating negative feedback loop. Personal bankruptcies are up, more defaults are on the horizon. The U.S. economy needs to be re-structured, both on the "technical" and inter-sectoral level. That amounts to a collective, system-wide Chapter 11 re-organization. Obama administration has totally failed to sell the public on the validity of "stimulus", however named. Suspicion that this administration is a puppet of big banks had grown sharply. Trying to kick the can down the road will yield Republican Congressional majorities in both houses.
3. The USA is experiencing the process of separation of workforce into two-tiers, with an elite class of highly paid employees at top companies and a subclass of minimal wage and part time laborers who work for less pay, have less job security and receive fewer benefits.
• Permanent jobs became more rare. There is a steady stream of conversion of full-time jobs to self-employed/part time jobs. Freelancers, independent contractors, consultants, part-timers, contingent employees and the self-employed now make up 30% of the workforce. There are an estimated 42.6 million of them in the U.S., and the number is steadily growing. Independent workers do not qualify for the essential benefits, such as health insurance and retirement protections, that corporate employers have traditionally supplied. Most independent workers don't qualify for unemployment benefits. Many are burdened with unfair taxes.
• Outsourcing of US jobs continues ( albeit at slower pace ) and that shrinks the pool of an elite class employees, especially in IT. Almost ten times difference in salaries of IT workers in Asia and the USA makes outsourcing of various services (for example IT outsourcing) very attractive financially despite problems in a long run. Undocumented workers further distort the picture.
• Part time employment grows at the expense of full time employment and is becoming dominant labor model outside narrow class of elite jobs. Many part time employed are actually hidden unemployed as their earning does not provide for a living wage.
• There has been some evidence of a shift by employers to more temporary workers ("We are all temporary now!"). Increase of temporary workforce is the most trend that signifies a changing employment relations and social structure. Most recent research throw "cold water on the notion" that temporary workers turn into full-time workers. The notion that temp positions help low-skill workers to acquire experience and eventually join the permanent workforce in better long-term jobs. Actually opposite, very brutal process is happening. Many waiter/waitresses has a college degree and are pretty proficient in calculus and/or C language. The US workforce (and Japan's and Europe's) have been increasingly temporary for many years now.
• Even most 'permanent' jobs don't have the protections of seniority etc., and are basically temporary in nature. Due to capturing of the government it can block any significant reforms.
• Labor arbitrage is in full swing working both via outsourcing and undocumented workers/H1B holders. So both high and low wage sectors are under attack. Automation works the same way eating jobs in all sectors (the latest victims are cashiers in supermarkets). Children of baby boomer are about to enter workforce while baby boomers still cling to jobs to compensate for destroyed 401K balances and housing equity.

Essentially net job growth might occur only if three sectors: health, education and government related jobs. Municipalities are under tremendous financial stress and will start shedding jobs in late 2010 when Fed stimulus expires.

Nemesis:

Peak Baby Boomer demographic drag effects and the composition of household spending are structural factors underlying the "new normal".

The composition of household spending is shifting from growth-oriented high-GDP-multiplier spending for housing, autos, durables, and child rearing to maintenance/subsistence, low-multiplier spending for property taxes, house maintenance, insurance premia, out-of-pocket spending for medical services and medications, and utilities.

Moreover, the composition of the labor force is becoming increasingly feminized, if you will, as the fastest growing sectors, education and health care services, are composed of 80-85% female employees, even as the labor force participation rate for males age 24-54 continues a mutli-decade decline to under 90%. If the pattern of the 1930s to WW II and that of Japan from the early '90s to date repeats, males under age 30-35 and over age 50-55 will suffer the highest rates of labor force dislocation, unemployment, underemployment, and loss of occupational continuity.

Thus, as structural demographic drag effects bear down on the US labor force and economy, and males experience lower participation rates and higher unemployment and underemployment, females will become increasingly relied upon by households and by underemployed, unemployed, or retired males to bear a larger financial burden as the debt-deflationary depression persists well into the end of the decade and early '20s.

That females do most of the discretionary household spending, the increasing share of females' after-tax incomes required for household subsistence will further reduce discretionary expenditures for meals out, travel, gifts, apparel, jewelry, etc.

4. Foreign wars have substantial financial costs and are an important drag on the USA economy. In the book True Cost of the Iraq Conflict, Joseph Stiglitz was estimated he cost at three trillion dollars of which probably only one trillion was offset by looting of Iraq resources. Afghanistan is about  $2 billion a week, and unless all heroin trade is controlled by CIA there is little that can offset those costs. This is the longest ongoing conflict in U.S. history. And since Joseph Stiglitz book was written things became worse. The disability rates are higher. The cost of caring for the disabled are higher. Almost one out of two people coming back from Iraq and Afghanistan are disabled. This is an unfunded liability of—we calculate now to be almost a trillion dollars, over$900 billion. So, one of the big ways of reducing our deficit is a—is cut back some expenditures....

With Libya and Syria added to the list, the hidden costs of foreign wars will weight on weakened economics more heavily. Annual cost per soldier oversees is approximately $1 Million per year. • High Costs Weigh on Troop Debate for Afghan War The latest internal government estimates place the cost of adding 40,000 American troops and sharply expanding the Afghan security forces, as favored by Gen. Stanley A. McChrystal, the top American and allied commander in Afghanistan, at$40 billion to $54 billion a year, the officials said. • As Mish noted in his Hidden Cost of War post: Any expectations that Obama would show some sense of restraint about military spending have long ago vanished. "It is my intention to finish the job” translates to "I will blow another$3 trillion war mongering if that is what it takes". And of course Pelosi does not think war idiocy should be at the expense of domestic idiocy.

War mongers want war but they do not want to pay for it. Sadly, Obama, Bush, Pelosi are all alike. Thus, Congress and the Administration is committed to having military idiocy and domestic idiocy at the same time.

God do we ever need a balanced budget amendment and a sound currency. We should not fund a damn thing unless we are willing to raise taxes to pay for it. Virtually no one but the war mongers and the military beneficiaries would be in support of raising taxes to pay for this monstrosity.

5. Rent that hypertrophied financial sector  extracts from the rest of the society continues to be a serious drag on the economy. This drag adds to substantial drag caused by foreign wars and military bases as well as huge military industrial complex. While parasites are omnipresent in nature, two large parasites instead of one might spells trouble for the host. Moreover the ascendancy of the financial sector and the decline of manufacturing in the U.S. ("Casino Capitalism" ) has implications similar to consequences of an organized crime running the country.  The creation of tangible products whose utility/quality can be more or less objectively measured were phased out in favor of "financial products," whose utility/quality is much easier to conceal behind legal/technical jargon and junk economics. That created a huge new class of white collar criminals. While Blankfein is out claiming that GS is doing God’s work, the reality is quite different: it became a training ground for new type of ruthless criminals, much more dangerous then bank robbers. Killing of Glass-Steagall by Clinton and leverage obtained by financial sector operating without regulatory limit created prerequisites to the financial panic of 2008. Glass-Steagall enshrined two principles that were abandoned:

• The first is that there should be financial firewalls between institutions to contain the spread of a panic.
• The second was the that guarantees are limited to sectors with heavy accountability to regulators and with marked financial conservatism in their operations to assure solvency.

The violation of the second principle directly leads to a regulatory capture in which anything goes and a corresponding observed "need" to accommodate indiscretions, as with the Greenspan/Bernanke put. It perhaps should be identified as THE primary cause, since it left Wall Street with the well-founded (LTCM, Latin America debt crisis, etc. ) and since-proved belief that prudence and capital were quite unnecessary, and that reckless, sociopathic deal making is profitable. Four examples :

• Wall Street Bankers will sell any kind of crap to clients. They promoted the pipeline for sub-prime mortgages and manipulated the AAA ratings to move the toxic sludge.
• Finding sub-prime was extremely profitable but they decided to keep more of the profits by buying subprime lender so they could grow faster, manufacture and sell more sub-prime, reap bigger bonuses.
• Making more money than most people could ever dream of, Wall Street decided to leverage up and make five times as much. Push the leverage out to 30-1 and make more money. What Risk? In finance you usually can make mistakes and survive, unless you make mistakes with 30-1 leverage in which case it destroys you.
• Off Balance Sheet vehicles and company sponsored hedge funds was the ultimate Tri-Fecta for selling crap to clients, manufacturing more, and leveraging up. Bear Sterns, UBS, and CitiGroup all had highly publicized sponsored hedge funds which blew up. The sold toxic mortgages to the very best high net worth clients for the typical hedge fund 2%/ 20% profit maximization (banker profit that is) strategy.

A cynic believes that only selfishness motivates human actions. As Gordon Gekko said “Greed is good”. I believe that the bonus structure led Wall Street to line up all the pieces for the clash as fast as they could. Stan O’Neal is the poster child. After presiding over all four of the steps above at Merrill Lynch he was paid $200 million to leave. Where is the clawback! 6. Capture of the government and the media by financial sector makes the necessary reforms unlikely. “Failed Regulatory Oversight” is a politically correct term for corruption. The latter was probably the second reason of the current high unemployment . See Toxic Sludge is Good For You: Lies, Damn Lies and the Public Relations Industry by John C. Stauber 7. Effects of coming CRE crash on unemployment and economy in general might be underestimated of official forecasts. The occupancy rate is the malls and commercial buildings is still declining. Many strip malls in the country are still are empty. Nice office buildings with signs "for rent" are feature of landscape in 2013. Many buildings, even large well designed buildings with datacenter infrastructure are vacant for years and eventually are demolished. A full scale commercial real-estate crash can also hurt the economy in a way similar to residential home estate crash. Loans that were made in 2005-2007 were refinanced for three years in 2009-2011. And again in 2012-2013. But eventually they will be coming home to roost. This also affects the construction sector. Only$400 billion of loans came due by the end of 2009, but nearly $2 trillion was refinanced by 2012. The collapse in the U.S. commercial real estate market is fought by the government will maximum force but government resources to fight the crisis are diminishing too. in 2011 state financial crises led to cuts in state budget. In addition, in June 2013 municipal bonds came under fire, making financing more costly. Commercial debt is approximately one third of the size of the total residential debt and it is concentrated in the same places creating double whammy. In Florida commercial loans, broadly defined, are bigger then residential. Unlike residential real estate, problem with commercial real estate are not solved by growth of population and creation of new families. Retail and white-collar positions will be directly impacted by CRE crash. As stores and offices close, mall and office building owners suffer from cuts in cash flow and severely limited prospects for new tenants. Insurance companies, hedge funds and regional banks are heavily invested in CRE and are next in line so some financial jobs will be lost too. Extend and pretend might work but the question is if there is enough liquidity to stretch loans. 8. Computers eat people jobs. Automation and the recent advances in robotic and computers make more and more workers redundant. The latest victims are cashiers in supermarkets. Manufacturing jobs continue to disappear not only due to outsourcing, but also due to new computerized technologies. The reality is that manufacturing employs a mere 11.5 million workers in the U.S.A., or 9% of the workforce and this percentage will never increase substantially. My feeling is that even in corporate IT after drastic cuts that were the standard game for large corporations in 2008-2009, additional cuts are possible. But the situation on the ground is somewhat paradoxical as real cuts runs deeper that you would assume from headcount: a lot of current IT personnel belongs to "untouchable" caste -- wives of somebody higher up in this or linked by the supply chain company, sons of somebody important and so on. I can't give you percentage, but probably 10%-20% of "untouchables" would be an educated guess. So removing of at least 10% of the current IT workforce means removal of 12% or more those who do actual work. Another factor is that cuts in IT are one way street as they stimulate replacing of people with technology and there are still tremendous potential for computerization of many areas including first of all IT itself. For example all this cloud initiatives are in disguise politically correct way to move things in the direction of higher automation and outsourcing because under the surface there is not much innovation in those "new" technologies. 9. Oil prices despite coming down in September 2011 are back to$85-$90 level. That level is putting additional stress on manufacturing, transportation and agriculture. Solid US growth of the past decade and earlier was dependent on two factors: • asset bubbles to fuel consumer spending • relatively cheap and abundant oil. With the rising oil all bets for re-inflating the economy (aka kicking the can down the road) are off. 10. Indirect job creation strategies via stimulus to businesses seized to produce meaningful job generation. Reaganomics has put the U.S. economy into a high-unemployment equilibrium when the high-rate of labor unemployment is reinforced by the shortage (or absence) of idle, but useful capital stock due to offshoring and outsourcing as well as chronically low consumer demand due to high level of debt. Only service sector and financial jobs can be generated with minimum capital infrastructure (for financial jobs internet connection and computer are almost all that needed). Automation of production lead to less and less workers. 11. Confidence is really low. Businesses have no confidence that customers ever return, therefore are not hiring much and scaling down the production. This chicken-egg-chicken-egg cycle has to be broken, but I am really puzzled how that is going to happen without large government role in the economy, which is big no-no for ideological consideration (the USA preaches neoliberalism as a "civil religion" similarly like USSR and other "communist" countries preached Marxism). Without large government projects employees have no confidence in their jobs, therefore are not consuming much. 12. In the face of growing unemployment the current administration proved to be as incompetent as Bush administration in case of Hurricane Katrina. And that means totally incompetent. ### Effects on population Unemployment is a very harsh condition, that traumatize the workers greatly (Sliding into the Great Depression) At first the unemployed searched eagerly and diligently for alternative sources of work. But if four months or so passed without successful reemployment, the unemployed tended to become discouraged and distraught. After eight months of continuous unemployment, the typical unemployed worker still searches for a job, but in a desultory fashion and without much hope. And within a year of becoming unemployed the worker is out of the labor market for all practical purposes: a job must arrive at his or her door, grab him or her by the scruff of the neck, and through him or her back into the nine-to-five routine if he or she is to be employed again. The USA as a whole is facing the worst labor market prospects since 1929. In terms of duration of elevated unemployment we already rival the early 80s. But in no way we can expect a steep decline in the rate of unemployment in the way that happened in 1983 when unemployment declined at a brisk 2%. And permanent high unemployment creates economic conditions that feel like the USA brought back slavery. The new reserve army of the unemployed drives wages down, while average productivity continues to rise, as a way to generate surpluses to be channeled into executive bonuses. The whole sectors like IT were decimated by outsourcing. Unfortunately given the current overcapacity and ample supply of qualified job seekers in many occupations, I certainly don't expect labor arrangements and employment conditions to become more favorable. Looks like 7% unemployment is going to become the "new normal". In any case government statistics is very suspect (see Fake Employment Statistics) and actually unemployment is higher. For example, the declining participation in work force means that actual unemployment rate is higher then reported. Obama-Bush administration saved banks waiting most of taxpayers money and piling up debt in hopes that they restore credit flow in the economy. But this was a fallacy: banks aren’t lending to prospective home buyers, small businesses and real estate developers because bankers recognize the obvious — many of those loans won’t get repaid. Of course, as bankers refuse to lend, the stagnation becomes a self-fulfilling prophecy. But since society is burdened with too much debt, piling on more debt would not be the solution in any case. There is no smooth, painless route back to the easy-money based false prosperity of Reagan-Clinton-Bush era (age of leveraging). We entered the age of deleveraging. Obama’s “you owe us” message to the banks is the height of naïveté’ and tells us a lot about him. In 2013 our problems are worse than they were in 2007 before the crisis. Peak credit is as dangerous for the economy as peak oil... ### Corruption of economic profession The inability of the economics profession to forecast unemployment in the short, medium, or long run would be downright comical, if not for the human tragedy involved. While the Occam Razor approach suggests incompetence as a culprit, I think it's a manifestation of the corruption of the profession by financial interests (with some "don't rock the boat" variations). First of all, economists much like elected officials and Wall Street executives have a vested interest in keeping the perception of a robust economy. The employment data announced each month are critical to this perception. That's why government "prints up jobs out of thin air" the same way the Federal Reserve prints money. This is economic propaganda and as such it is not that much different from the over-stated earnings practiced by companies of all striped and colors. The second problem is that fiscal policy cannot solve the problem of job creation in all circumstances, especially in deleveraging environment. Position of people like The Fed Can Help, But Fiscal Policy Is The Key To Job Creation ) is a step in right direction. But without something like Jobs Corps to get out of the current situation is very difficult. In 1982 SETH S. KING wrote in NYT (PROPOSAL FOR JOB CORPS RECALLS ROOSEVELT PLAN): Few of this city's recent celebrations of Franklin Delano Roosevelt's 100th birthday have passed without nostalgic references to the Civilian Conservation Corps, that President's cherished vehicle for getting thousands of jobless, hungry youths off the streets and putting them to work refurbishing the nation's parks and forests. With today's unemployment rate nearing a postwar high and new thousands of young people again unable to find work, Congress is preparing to wrestle with the Reagan Administration for money to start a new youth job training program and reconstitute the Job Corps, the pale copy of the old C.C.C. that emerged in the Carter days. But there is little in these plans that is likely to reproduce those Depression era pictures of sturdy, bare-chested young men planting trees, building bridges and saving the nation's battered farmlands. Nor is today's procedure-encumbered Washington, where a year usually elapses between idea and action, likely to duplicate the astonishing start on the C.C.C., which four months after being conceived had been approved by Congress and had more than 300,000 young men being clothed, housed, fed and paid$30 a month while they breathed all that fresh air.

In this crisis the main lesson was that theologically captured by free market fundamentalism government can destroy economy at a really staggering rate. This is "Back in the USSR" situation. Eight years of Clinton and eight years of Bush administration (see The Economic Consequences of Mr. Bush, by Joseph E. Stiglitz) are as good proof of this as one can ever get. Clinton and Bush regimes (especially Rubin-Greenspan alliance and "vice president from an undisclosed location" activities)  proved to be a real wrecking crew. But that does not mean that government cannot put it weight on easing the unemployment burden. Incentives such a investment tax credit matters. Not tax cuts for the rich, but direct investment credit. direct job creation which is anathema to market fundamentalism would be even better and less costly. Roosevelt administration did it, so why not capitalize on positive experience and develop it further ?

 In this crisis the main lesson was that theologically captured by free market fundamentalism government can destroy economy at a really staggering rate.

In any case socializing losses and privatizing gain (crony capitalism) should be downsized. Insurance for gambling by big banks should be cut.

As long as economists believe their report card is the rise in GDP (GDP Mania), we will remain in a failure mode. A country is not defined by GDP but by the quality of life of its citizens. And quality of life cannot be assessed by a simplistic, one-dimensional metric such as GDP. The key dimensions for well-being are: employment, earnings, wealth, health, infrastructure, and living conditions. In that particular order. With employment as the critical factor: the USA looks like an underdeveloped banana republic by the current measure of unemployment and in many respect has became such.

It looks like high persistent unemployment became the defining feature of this recession. Jobs creation prospect in 2014 look pretty grim -- there is no sector other then government that can absorb redundant workforce and automation in manufacturing makes sure that those who are unemployed right now will stay unemployed in the foreseeable future. Most jobs cut are permanent, not temporary, especially in such sectors as IT (structural shift). As Robert Reich noted:

...The basic assumption that jobs will eventually return when the economy recovers is probably wrong. Some jobs will come back, of course. But the reality that no one wants to talk about is a structural change in the economy that's been going on for years but which the Great Recession has dramatically accelerated.

Under the pressure of this awful recession, many companies have found ways to cut their payrolls for good. They’ve discovered that new software and computer technologies have made workers in Asia and Latin America just about as productive as Americans, and that the Internet allows far more work to be efficiently outsourced abroad.

This means many Americans won’t be rehired unless they’re willing to settle for much lower wages and benefits. Today's official unemployment numbers hide the extent to which Americans are already on this path. Among those with jobs, a large and growing number have had to accept lower pay... Or they've lost higher-paying jobs and are now in a new ones that pays less.

The current crisis also means that financial services and real estate (FIRE) economy, this gigantic casino that the US government was trying to build for the last 25 years is now in trouble and shed workers in vast numbers (although working condition in financial industry are still good or very good depending on your position in the food chain). But the profitability of large banks and can achieved only by oversees expansion and derivatives games with foreign assets. The most profitable essentially converted themselves into hedge funds, getting most profits from trading operations, not from the traditional banking activities.

The simplest and the most obvious solution in the current situation is to cut work week and hours of work (4 days six hours a day). That will put enough people to work to make unemployment bearable and it might slightly help entertainment and hospitality industries which now is suffering more that others. From the other point of view if lower standard of living is inescapable, why not to make the transition smoother and more fun by cutting work hours.

### Military Keynesianism no longer works

But that's not enough. The USA needs drastically cut military budget. Military Keynesianism no longer works as expected.  As John Maudin in his e-letter proposed (see Thoughts on the Economy- Problems and Solutions):

Mauldin: Unemployment is likely to continue to rise and last longer than ever before. We have to take care of the basic needs of those who want work but can't find it. Unemployment insurance should be extended to those who are still looking for work past the time for benefits to expire, and some program of local volunteer service should be instituted as the price for getting continued benefits after the primary benefits time period runs out. Not only will this help the community, but it will get the person out into the world where he is more likely to meet someone who can give him a job. But the costs of this program should be revenue-neutral. Something else has to be cut.

Mish: Can we deal with 15 million volunteers? Somehow I doubt it.

Mauldin: We have to re-think our military costs (I can't believe I am writing this!). We now spend almost 50% of the world's total military budget. Maybe we need to understand that we can't fight two wars and support hundreds of bases around the world. If we kill the goose, our ability to fight even one medium-sized war will be diminished. The harsh reality is that everything has to be re-evaluated. As an example, do we really need to be in Korea? If so, why can't Korea pay for much of the cost? They are now a rich nation. There are budgetary fiscal limits to being the policeman for the world.

Mish: Bingo. We can easily slash our military budget by 70% and still be the most powerful nation in the world. Moreover, it is time to declare the war in Iraq and Afghanistan over, pack our bags and leave. Gradually, over the next 5-8 years we should bring home all our troops from literally every county they are stationed.

This chart shows the absurdity of our spending.

Chart courtesy of Global Issues - World Military Spending.

By the way that chart does not include the latest increase in the US military budget. Please consider US lawmakers pass 680-billion-dollar defense budget bill

The US House of Representatives passed a 680-billion-dollar defense authorization bill on Thursday that includes funds to train Afghan security forces and more mine-resistant troop carriers.

Lawmakers defied President Barack Obama's veto threat and approved 560 million dollars to continue work on an alternative engine for the F-35 fighter jet built by General Electric and British manufacturer Rolls-Royce.

The compromise legislation would also raise military pay by 3.4 percent -- half a percentage point higher than Pentagon recommendations -- and assign 6.7 billion dollars for mine-resistant armored vehicles known as MRAPs, which is 1.2 billion dollars more than the administration had proposed.

Nearly $700 billion dollars of "defense" spending. The amount needed for actual defense is 20% of that at most, and more likely 5%. Balancing the budget is easy if you start here. Mauldin: Glass-Steagall, or some form of it, should be brought back. Banks, which are subject to taxpayer bailouts, should not be in the investment banking and derivatives-creating business. Derivatives, especially credit default swaps, should be on an exchange, and too big to fail must go. Banks have enough risk just making loans. Leverage should be dialed down, and hedge funds selling what amounts to naked call options in any form, derivative or otherwise, should be regulated. Mish: What we need to do is get rid of the Fed, FDIC, and fractional reserve lending. Regulation has failed every step of the way. Regulation created Fannie Mae, Freddie Mac, and the Fed. Regulation by the SEC anointed Moodys, Fitch, and the S&P as debt rating companies. We do not need more regulation, we need less regulation, a sound currency, and no Fed. Regulation is clearly the problem, yet the cries for still more regulation come from nearly every corner save the Austrian economists. Mauldin: Let me see, is there any group I have not offended yet? But something like I am suggesting is going to have to be done at some point. There is no way we can continue forever on the current path. At some point, we will hit the wall. The fight between the bug and the windshield always ends in favor of the windshield. The bond market is going to have to see a credible effort to get back to a reasonable deficit, or we risk a very difficult economic environment. The longer we wait, the worse it will be. Mish: "Is there any group I have not offended yet?" Yes. You failed to offend those on public pension plans. Not to fear, I did that myself in Five Major Pension Problems - One Simple Solution. Unsolvable Problems • Expecting 8% returns in a 4% world. When 30 year treasury bonds are yielding 4%, the dividend yield of the S&P 500 is 2%, and the S&P 500 PE is 140 (26 if you use operating earnings), 8% returns are from Fantasyland. • Pension benefits start too early. People are living longer. • Private employees do not receive these kind of benefits. Public employees should not either, especially at taxpayer expense. • Indeed, continuing to chase high-yield in a low-yield world is a guarantee those plans will blow up again down the road. • Pension plans are so underfunded that it is virtually impossible to catch up, no matter what risks the plan managers undertake. When asked how long it would now take for its investments to put the fund back on track, Ohio officials simply said: "Infinity."  Top Visited Your browser does not support iframes. Switchboard Latest Past week Past month ## NEWS CONTENTS ## Old News ;-) For the list of top articles see Recommended Links section  Index 2017 2016 2015 2014 2013 2012 2011 2010 2009 #### [Apr 01, 2020] Could the Covid19 Response be More Deadly than the Virus OffGuardian ###### Apr 01, 2020 | off-guardian.org Suicides and Drug Abuse According to the National Center for Health Statistics, over 48,000 suicides occurred in the US in 2018. This equates to an annual rate of about 14 suicides per 100,000 people. As expected, suicides increase substantially during times of economic depression. For example, as a result of the 2008 recession there was an approximate 25% increase. Similarly, during a peak year of the Great Depression, in 1932, the rate rose to 17 suicides per 100,000 people. Recent research ties high suicide rates "to the unraveling of the social fabric" that happens when societal breakdowns occur. People become despondent over economic hardship, the loss of social structures, loneliness, and related factors. There is probably no greater example of these kinds of losses than what we are experiencing today with the extreme response to COVID-19 and the effects will be felt for many years. The social structures might return in a few months but the economy will not. Some think that the economy will recover in three years and others think it will never recover in terms of impact to low-income households, as was the case for the 2008 recession. However, if we estimate a full recovery in six years, the effects will contribute around 3 suicides per 100,000 people every year during that time for a total of over 59,000 deaths in the United States. Related to suicides are drug abuse deaths. According to the National Institute on Drug Abuse, over 67,000 deaths from overdose of illicit or prescription drugs occurred in 2018. This does not include alcohol abuse. Only 7% were suicides and 87% were known to be unintentional deaths largely due to drug abuse caused by depression or other mental conditions. Such conditions can be expected to rise during times of economic collapse and if we estimate the impact due to COVID-19 over six years as being a 25% increase (as with suicides) that projects about 87,000 additional deaths due to drug abuse. Lack of Medical Coverage or Treatment Unemployment is expected to rise dramatically as a result of the COVID-19 response and the effect is already being seen in jobless claims. One of the major impacts of unemployment, apart from depression and poverty, is a lack of medical coverage. A Harvard study found nearly 45,000 excess deaths annually linked to lack of health coverage. That was at the pre-COVID-19 unemployment rate of 4%. As reported recently, millions of Americans are losing their jobs in the COVID-19 recession/depression. For every 2% increase in unemployment, there are about 3.5 million lost jobs. The US Secretary of Treasury has predicted a 20% unemployment level, which translates to 12 million lost jobs. If the 45,000 excess deaths due to lack of medical coverage increases uniformly by unemployment rate, we can expect about 225,000 deaths annually due to lack of medical coverage in the US at 20% unemployment. Extrapolating this over a 6-year period would mean 1.35 million deaths . This assumes that funding for important health-related programs are not further cut or ignored, a bad assumption that means the estimate is probably low. Beyond lack of coverage, medical services are being reprioritized to respond preferentially to COVID-19, causing less resources to be available for treatment of other medical conditions. The capacity of medical service providers has already been significantly impacted by the COVID-19 response in some areas. Additionally, clinical trials and drug development are expected to be severely impacted. This means that important new medicines will not reach the market and people will die who otherwise would have lived. There is not yet enough information on the overall impact to medical service provision therefore we will not include an estimate. Poverty and Food Access The Columbia University School of Public Health studied the effects of poverty on death rates. The investigators found that 4.5% of US deaths were attributable to poverty. That's about 130,000 deaths annually. How will this be affected by COVID-19? One way to begin estimating is to consider how the number of people living in poverty will increase. Before the COVID-19 response, approximately 12% of Americans lived below the officially defined poverty line. That percentage will undoubtedly rise significantly due to the expected increase in unemployment. If unemployment rises to 20% (from 4%) as predicted, the number of people living in poverty could easily double. If that is the extent of the effect, we will see another 130,000 deaths per year from general poverty. Although deaths due to poverty are not entirely about food access, it is a significant factor in that category. In times of economic hardship many people can't afford good food, causing malnutrition and, in some cases, starvation. People also can't access food causing the same outcomes. Limited access to nutritious food is a root cause of diet-related diseases, including diabetes, cardiovascular disease, and infant mortality issues. A recent estimate suggests 20% of all deaths worldwide are linked to poor diets. Food access issues will be further exacerbated with the COVID-19 problem due to the anticipated issues with food production and prices. If the COVID-19 response lasts for years as expected, our estimate will need to be a multiple of the 130,000 annual figure. Using the 6-year estimate, we get 780,000 deaths. Conclusion The total deaths attributable to the COVID-19 response, from just this limited examination, are estimated to be: Suicides 59,000 Drug abuse 87,000 Lack of medical coverage or treatment 1,350,000 Poverty and food access 780,000 These estimates, totaling more than two million deaths above the estimated 150,000 expected from the virus itself, do not include other predictable issues with the COVID-19 response. An example is the lack of medical services as stated above. Other examples include the EPA's suspension of environmental regulations. It has been estimated that the EPA's Clean Air Act alone has saved 230,000 lives each year. Moreover, the anticipated failure of the US Postal Service (USPS) will lead to more illness and death. The USPS "delivers about 1 million lifesaving medications each year and serves as the only delivery link to Americans living in rural areas." Even using these low estimates, however, we can see that the response will be much worse than the virus. The social devastation and economic scarring could last more than six years, with one expert predicting that it will be "long-lasting and calamitous." That expert has noted that he is not overly concerned with the virus itself because "as much as 99 percent of active cases [of COVID-19] in the general population are 'mild' and do not require specific medical treatment." Yet he is deeply concerned about the "the social, economic and public health consequences of this near total meltdown of normal life." He suggests a better alternative is to focus only on those most susceptible to the virus. Others have reasonably suggested that only those who are known to be infected should self-quarantine. Some public health professionals have been pleading with authorities to consider the implications of the unreasonable response. Many experts have spoken out publicly, criticizing the overreaction to COVID-19. A professor of medical microbiology, for example, has written an open letter to German Chancellor Merkel in an attempt to draw attention to the concerns. The real problem we face today is not a virus. The greater problem is that people have failed to engage in critical thinking due to the fear promoted by some media and government officials. Fear is the mind killer, as author Frank Herbert once wrote. Ultimately, the fear of COVID-19 and the lack of critical thinking that has arisen from it are likely to cause far more deaths than the virus itself. George Mc , List of the effects of this virus (not exhaustive): • Total shut down on all other news items. • The speeding up of an economic meltdown which was going to happen anyway but which now can be attributed to the virus alone. • The speeding up of the inevitable confrontation between the overlords and the masses on conditions favourable to the former. • The reduction of the public to a condition in which most welcome draconian restrictions • The harsh and vitriolic gap between those who are urging on the restrictions and those who are suspicious i.e. a divide and rule matter which threatens to become physically violent. • The curtailing and indeed destruction of the rights and protections for the general population that have been hard won over the last century. • The reduction of social life to a social media matrix. (And yes I'm using the word "matrix" in a knowing way.) • The seemingly legitimate emergence of a police state • The wrecking of the public sector. Of course this also means the wrecking of the private sector but that will happen in a bottom up way i.e. smaller businesses tanking, then slightly larger, then larger still. But by the time it affects the giants, the game can be called off since the public sector will be gone. Joerg , Some weeks ago on youtube there was a video with an interview with a German virologist Dr. Köhnlein. Youtube removed this video – but now it is back on youtube again (only in German): "CORONA – Alles nur Panik (Dr. Köhnlein)" – https://www.youtube.com/watch?v=TVHZ1bLceRw&feature=youtu.be Toby Russell , I've been trying to get a grip on the extent to which the PCR test is used to establish who has been infected with this alleged virus. Part of my research led me to this very recent presentation on YouTube by a well credentialed doctor called Andrew Kaufman. In it, he sets out how inaccurate the test is, that there isn't even a gold standard against which to assess its accuracy, but the one attempt to do so he could find arrived at an 80% false-positive rate. I heard from a doctor friend that its inventor, Kary Mullis, insisted it should never be used for diagnosis. My understanding is that it is being used everywhere but China, where a new test is being developed. If this is true, the figures we are being bombarded with are not remotely trustable. But the main thrust of the presentation by Dr Kaufman is the identity between exosomes and covid-19. Exosomes are natural cellular defense mechanisms recently becoming known amongst molecular biologists. They are largely unknown by doctors and nurses. Kaufman's assertion is that covid-19 is in fact an exosome. He quotes James Hildreth, M.D., President and Chief Executive Officer at Meharry Medical College and a former professor at John Hopkins: " the virus is fully an exosome in every sense of the word." The presentation is about 40 minutes long and followed by a fairly lengthy question and answer session. Because falsifiable, and because it explains all the oddities of this case, I feel his theory deserves widespread attention. In other news I had time today to translate: The New England Journal of Medicine is the world's leading medical journal. In its 26 March 2020 edition, we find: "[ ] This suggests that the overall clinical consequences of COVID-19 may ultimately be more akin to a severe seasonal influenza (which has a case fatality rate of approximately 0.1%) or a pandemic influenza (similar to those in 1957 and 1968) rather than a disease similar to SARS or MERS [ ]" This article was penned by a few authors, one of whom was none other than Anthony S Fauci. Yes, THE Anthony S Fauci. Note the case fatality rate. If anyone is interested in a full translation, please let me know Cassandra2 , The human race is being 'played' and the majority have been conditioned to accept it. The really SCARY aspect of all this is that even if 97% of the global population were given a complete insight into what was actually going on and who was (and has been for a considerable time) manipulating events – what could they do about it? Answer 'NOTHING' The people are atomised, disconnected and totally powerless as they have no control over MASS MEDIA COMMUNICATION . . . . . they do (RE: BBC). A catalyst is required to unite the human race to establish an effective Counter-Offensive capable of cleaning the earth of the dark forces currently in play. #### [Mar 16, 2020] Situation with COVID-19 on campuses ###### Mar 16, 2020 | www.nakedcapitalism.com Everything the CDC has been doing has been shocking. As a health care provider I just don't want to even look at their recommendations anymore: their information is months old and not based in science, let alone current research on COVID-19. Local colleges have been shutting down but forcing instructors to go to the schools – that's not social distancing. And many are still having students in EMT, nursing, psychology, physical therapy, and other health sciences, go to their clinicals, where they will be exposed without adequate personal protection equipment. This is because of the CDC. And admin's greed for money. My local community college, after implementing/pleading with students to incorporate careful hygiene and social distancing into their time on campus, and seeing minimal compliance, decided to make ALL lecture classes online access for the next 3 weeks (at least). We have no known Covid-19 cases in the COUNTY. (But since testing is not extant, or common, no one knows what the true situation is.) The goal of moving to online class instruction is to minimize the number of students (15K total) on campus and limit contact with older instructors, counselors, and other staff. Lab classes (PE, Science) will continue under strict personal contact protocol. The solution is a compromise between health issues and the need for students to complete 80% of course curricula to get transferable college credits. We'll see if the gamble works out. Closing K-12 schools is a "no win" situation. Some parents want them closed, others don't. In Los Angeles the school district decided to close from pressure by the teachers labor union. Again, few kids understand/implement the protocols of social distancing and smaller home groups may be the better option (for some). Meals for disadvantaged students will continue at the LAUSD (~500K students), but they will be drive-thru pick-up. It appears the pandemic could bring even the invincible US to its knees. Jack Parsons , March 15, 2020 at 12:11 am Children are all super-spreaders. There is no good argument for schools to be open. #### [Mar 12, 2020] Harvard's Let Them Eat Veritas Richest University's Poor Students Shafted as School Provides Spotty, Inadequate Help as It T ###### Mar 12, 2020 | www.nakedcapitalism.com Harvard University should be ashamed of itself. It has dumped the problem of its sudden closure due to coronavirus largely on the students themselves and their families. While most of them are affluent enough to handle the financial fallout of buying airfare at the last minute and storing or shipping their clothes, books, and other possessions, Harvard's students from lower income backgrounds have, to a significant degree, been left in the lurch. ... ... ... But Harvard's conduct is indefensible. Harvard has, or perhaps more accurately had, a nearly$39 billion endowment. Contrast that with an exceedingly generous estimate of what it might cost to help make these financially stressed undergraduates whole, at least in terms of getting out of Cambridge, or for the ones who really can't go home (flights to their country cancelled), putting them up. Harvard has 6,800 undergraduates. Assume 25% get significant financial support. Even a gold plated solution would cost at most $10,000. 6,800 x .25 x$10,000 = $17 million. That is couch lint for Harvard. As the University of Dayton example attests, university and college closures are widespread. For the well-endowed ones who have students attending only by virtue of having received financial aid and/or having the school arrange for paid employment to help pay for their tuition, the failure of the school to provide generous help is a disgrace. At Harvard, the afflicted students are petitioning the university to let them store things on campus for free (which was standard practice in my day) and let the ones who can't go home stay on campus. How many could that possibly be? 200 at most? Harvard has a medical center that won't have anything to do once the kids leave. How hard would it be for their staff to check these students' temperatures daily and test anyone who had symptoms? And the university will have enough empty rooms that it could easily set aside other dorm rooms if quarantine were needed. But the Harvard disregard is a sign of where things are likely to go in the US. A university is supposed to be a community. They are more cohesive than most of our cities and towns. Yet a crisis comes, and the grotesquely well paid university administrators can't be bothered either to make creative use of resources at hand, or dip in Harvard's huge pot of money. In other words, expect the rich to walk all over the poor out of indifference, as we are seeing at Harvard now. ___ 1 Harvard houses and Yale colleges are groups of dormitories, each with their own adminisphere (such as a faculty dean a resident dean, a house tutor), their own kitchen and dining room, a common room, a library, and other amenities. They are modeled on the Cambridge and Oxford college system. At Harvard, a house has roughly 300 to 400 students. Michael , March 12, 2020 at 1:09 am The future is already here, it's just not evenly distributed. Get Out! Just got notice I am next up at my library for Wm Gibson's new book, Agency.$17M is a rounding error yet the wealthy feel its too much to ask.

Bill Gates $5M stills rankles me bmeisen , March 12, 2020 at 2:41 am Are we hearing the American "college experience" bubble popping? In this fantasy, youth buy products that are packaged as educational experiences. They pay through the nose for them and they are blind to their folly because they believe that the stamped and signed receipt of payment handed to them with great pomp and circumstance will boost their future earning potential to the degree necessary so that they can some day lead lives that are free of educational debt, which until then will of course involve interest costs (compounded) as we do not want socialism. Why exactly doesn't Harvard charge 1 million? They could get it and they'd only have customers who can deal gracefully with situations like this. Enrico Malatesta , March 12, 2020 at 8:39 am Although Harvard (and other esteemed Universities) are selling 'exclusivity', the veneer of egalitarianism is still required for the Brand. Two Random Thoughts: I'd like to know the graduation statistics of those college students that entered through the Admissions Scandle. The Harvard Endowment is an important pool of shadow money, never forget it was the Harvard Fund that 'bought' the worthless Arbusto (Harken Energy) stock that enabled Dubya to get his stake to become Texas Rangers managing general partner, and then Governor, and then front man for Dick Cheney. Larry Y , March 12, 2020 at 10:26 am At many US elite academic institutions, the hardest part is getting in (exceptions usually in "hard science", engineering, etc.). Also, they probably have all the the help they need to graduate. Come to California. Harvard is dead! You'll get a better education and the weather doesn't suck. Harvard stopped being relevant over a decade ago. Actually, don't come to California for higher education. Housing, traffic, cycling risks, and, now, Covid-19 is getting worse. The UC/CalState system can't provide access to it's own in-state high school students that qualify for entry. The Rev Kev , March 12, 2020 at 3:33 am This is brutal this. They could have helped their own students using only the money in their petty cash drawer and they said nope! I suppose that this is a lesson for those Harvard students that is pretty simple. If you have money so this move is not a problem for you, then that is the way that it is supposed to be. If you are studying here and are in a precarious position then it is all on you. Pure power politics. It would be ironic if down the track that Harvard produced a Bill Gates from the later group that went on to achieve fabulous wealth. But that this future alumni, when asked by Harvard for money for them, would say sure – and give a massive contribution to Yale and call it the 2020 Corona Fund. I too was an undergrad at an institution in the Cambridge area, and I am not from the US. Got a full financial aid, but that does not fully cover your housing and does not at all cover your food or other expenses, so you had to work during the term to make it. And you had to move out of the dorm in the summer. Fortunately, in our particular dorm, there was storage in the basement of the dorm, so we did not have to look for outside storage, but others were not so lucky. But moving out at the end of the term was still a major disruption that one had to plan for well in advance. So I am very well aware of the situation undergrads at Harvard find themselves in, and my first thought when I saw the news was "WTF are these students supposed to do now?". Especially the international ones. Because a day after Harvard announces that students are kicked out of the dorms, what does Trump do? Bans travel from Europe for 30 days. Which effectively means banning traveling TO Europe too, because those are all round-trip flights. This is on top of the travel restrictions regarding several countries in Asia already in place. In the best of times, it was always near-impossible to find a flight on such a short notice. Now when so many flights have been cancelled, how is one supposed to go home, when there are thousands of others in the same situation (because Harvard isn't the only university that is doing this)? It is not even a possibility for many, forget the expenses. There are simply no flights. And most of these students don't even have a car to sleep in. I will venture a guess regarding why this is done -- they don't want to get sued by litigious-minded parents if undergrads get it while on campus. Which, admittedly, there is a high chance of happening, unless they self-isolated the whole campus (but that would have created a legal mess on a whole new level). Dorms often have 2, 3, 4 students living in the same room, and the virus is very clearly airborne, so it would also get between rooms through the air seeping beneath the doors (which is why in China quarantines involve sealing the doors with tape). Also, bathrooms are shared across the whole floor, which is another transmission risk. So the administration took the easy decision -- instead of trying to help the student population, and start that early on when it was the time to do so (i.e. mid-February), which would have involved some effort and risk on its part, it just dumped the problem onto the students PlutoniumKun , March 12, 2020 at 4:43 am Thats quite disgusting – I'm assuming it is fear of litigation that is driving this. I was in Trinity College Dublin last night for an evening class – the nearest Ireland would have to a Harvard (except, as the grads there would no doubt add 'with about 300 more years of history and teaching experience'). They had a Covid case in, ironically enough, the biology department last week. But they are acting I think quite responsibly – phasing in a slow shutdown – all lectures have gone online, but small tutorials, etc., still going on, with lots of support for foreign students. They were actually criticised for being over the top (there are still plenty of people who still 'don't get it' and sadly many are in a position of authority.) GM , March 12, 2020 at 6:33 am Litigation is certainly a big part of it. The other aspect might be health insurance. Students are on university plans. Which tend to not be that great, because it is a young and healthy population. When catastrophic situations have arisen in the past on campus (which happens regularly, several times a year in fact), the university has often been stuck with the bill, especially with international students. And it will be a lot of long ICU stays to pay for in the coming months, even among the young and healthy. Louis Fyne , March 12, 2020 at 9:07 am I think you're right w/health insurance. plans are likely self-insured and not modeled to have a cohort students popping into the ICU. Then add rash panic. Smaller colleges I can kinda understand, Harvard? give me a break Adam1 , March 12, 2020 at 6:02 am It seems like almost all colleges and universitys will be moving to the online solution, but you can tell it's a decision made by some administrators who really don't get it. Online classes may be a substitute for lecture, but they wont fill the needs of art students (like my wife who laughed at hearing this idea), science and engineering majors or anyone who needs other facilities and equipment to actually complete work – your oven at home wont replace a kiln as my wife says. Left in Wisconsin , March 12, 2020 at 2:06 pm I would disagree that the administrators don't get it. On their list of priorities, "avoiding huge lawsuits" is a much higher priority than "providing quality instruction to students." I have been in and around higher ed for the last 30 years and it's not clear to me that the latter is even on the list. Louis Fyne , March 12, 2020 at 9:04 am Online classes for the yes of the year–mmmm, ok .but closing dorms? that is just insane and against the medical evidence (aka seniors are the most at risk, under-40, while not immune, are in infinitely better shape than those over 70 and/or those w/health issues). And Dorms are (generally) like typical apartment complexes, not military barracks. If anything, keeping students (aka asymptomatic, mobile, disease vectors) away from seniors is the absolutely best thing for society. just saying Hana M , March 12, 2020 at 11:44 am Yes! 100% correct. Sending the students home promotes the "OK Boomer Revenge" aspect of the this novel coronavirus. (OK Boomer Revenge: older voters with Medicare being impacted greater than younger voters w/o Medicare.) Democrita , March 12, 2020 at 9:39 am I have a child at UC Santa Cruz, hotbed of striking teaching assistants. We are coming up on spring break and last night had a talk with him about what to do. There are risks to flying home. There are risks to staying at school. But the latter risks are compounded by the fact that we don't know what the school admin will do. If he comes home for spring break, will he be able to go back? If he can't, what happens to his stuff? If he stays, will they be allowed to remain in the dorms? And what happens in September? I am sure he will not want to change schools now that he has established friendships and a sense of place. I don't want to pay$66,000 per year -- an effort that involves his parents and both sets of grandparents -- for him to take online classes. I have been a university teacher, so I know exactly what those are worth. :)

At least we can afford it, and we have friends in Cali if he gets stuck there. This action by Harvard is unconscionable. Then again, if Harvard had a conscience, it wouldn't be Harvard. But UCSC, based on its treatment of the striking TAs, doesn't have a conscience either.

I have a handful of relatives who voted for Biden, too, and I just want to punch them all in the face. Idjits. Hooray for ecocide! Onward to mass extinction! Guess the kid won't need that college education after all. Maybe we can use the money to send him to survival school.

Randy G , March 12, 2020 at 11:59 am

Wow! $66,000! For a supposedly public university. I went to UC Santa Cruz, admittedly a few decades ago, and I was paying something like$2000 a year. The U.S. is making incredible progress -- just all of it heading off in the wrong direction and toward the edge of the cliff. Very soon your local library–should it still exist -- can file The Road Warrior in the documentary section.

Good luck to you and your children. And give your Biden loving relatives a friendly punch for me.

They are likely paying out-of-state tuition. In-state is about one-third of that.

Left in Wisconsin , March 12, 2020 at 2:26 pm

But UCSC, based on its treatment of the striking TAs, doesn't have a conscience either.

This is the key point. The neoliberalization of the U.S. university – "public" as well as private – has been clear for quite awhile but there are strong ideological pressures not to see it, not least by all the brainiacs who exist on college campuses.

My prediction is that most U administrations will issue guidance to faculty to give students full credit for all courses this semester (regardless of how much work actually gets done). The smart ones are looking ahead to the fall and trying to figure out what to do if enrollment/tuition, state aid and research funding crash, which seems pretty likely if things are not back to normal shortly. The 2008 crash turned out to be a godsend to higher ed, driving huge numbers of unemployed back to school for "re-training." But that bubble only lasted a couple of years and enrollment trends have been steeply downward since 2010-11. The last five years have already seen, again mostly uncommented on, the beginnings of a shake-out (some schools closing, lots of changing emphasis to programs that can bring cash in the door, ubiquitous move to adjuncts instead of permanent faculty). Expect that to ramp up considerably. Ironically, perhaps the only counter-trend has been a HUGE increase in the number of Chinese students (of which there are now apparently about 5K at my Big 10 U) paying full freight. Can that continue?

Well, California does have standards. Getting course credit will require completing 80% of the course curricula. Since the UC System is on the Quarter system (12 weeks, not 15) the UCSC students have likely passed that threshold.

##### "... A scholarship system awarding free tuition to the top 5% of college applicants (NOT biased by race, gender, etc) who apply to the U.S.'s best STEM programs, hell yes! Free tuition for future Democrat voters, f^%k that! ..."
###### Jan 27, 2020 | www.zerohedge.com

Sen. Elizabeth Warren (D-Mass.) defended her plan to pay off college loans after being confronted by a father in Iowa in an exchange that went viral.

Senator Elizabeth Warren is confronted by a father who worked double shifts to pay for his daughters education and wants to know if he will get his money back. pic.twitter.com/t2GGbAnG08

-- Eddie Donovan (@EddieDonovan) January 21, 2020

The father approached Warren, a leading Democratic presidential contender, after a campaign event in Grimes.

"My daughter's getting out of school, I saved all my money, so she doesn't have any student debt. Am I going to get my money back?" the man asked Warren.

"Of course not," Warren replied.

" So, we end up paying for people who didn't save any money, then those who did the right thing get screwed, " the father told her.

He then described a friend who makes more money but didn't save up while he worked double shifts to save up to pay for his daughter's college.

The father became upset, accusing Warren of laughing.

"We did the right thing and we get screwed," he added before walking off.

In an appearance on "CBS This Morning" on Friday, Warren was asked about the exchange.

Last night, a father who saved for his daughter's college education approached @SenWarren and challenged her proposed student loan forgiveness plan. @TonyDokoupil asks the senator for her response: pic.twitter.com/jLUXPqChC6

-- CBS This Morning (@CBSThisMorning) January 24, 2020

"Look, we build a future going forward by making it better. By that same logic what would we have done? Not started Social Security because we didn't start it last week for you or last month for you," Warren said.

Pressed on whether she was saying "tough luck" to people like the father, she said "No." She then recounted how she got to go to college despite coming from a poor family.

"There was a $50 a semester option for me. I was able to go to college and become a public school teacher because America had invested in a$50 a semester option for me. Today that's not available," she said.

"We don't build an America by saddling our kids with debt. We build an America by saying we're going to open up those opportunities for kids to be able to get an education without getting crushed by student loan debt."

Sen. Elizabeth Warren (D-Mass.) campaigns in Des Moines, Iowa on Jan. 19, 2020. (Spencer Platt/Getty Images)

One of Warren's plans is to cancel student loans. According to her website , on her first day as president she would cancel student loan debt as well as give free tuition to public colleges and technical schools and ban for-profit colleges from getting aid from the federal government.

"I'll direct the Secretary of Education to use their authority to begin to compromise and modify federal student loans consistent with my plan to cancel up to $50,000 in debt for 95% of student loan borrowers (about 42 million people)," Warren wrote. "I'll also direct the Secretary of Education to use every existing authority available to rein in the for-profit college industry, crack down on predatory student lending, and combat the racial disparities in our higher education system." Sounds an awful lot like the dad above is right those that did the "right thing" are gonna get "screwed." csmith , 1 minute ago link Warren's debt forgiveness plan will turbo-boost the increases in college costs. It is the EXACTLY backwards remedy for out-of-control college costs. mtndds , 2 minutes ago link Warren you bitch, I paid back my student loans responsibly by working my *** off (140k) and now you want to give others a free ride? I sure hope that I get a refund for all that money I paid back. moron counter , 7 minutes ago link Obama did this kinds thing with housing. I got outbid by 100k on a house. The other bidder who got it didn't make his house payments so Obama restructured his loan knocking off 100k from his loan and giving him a 1% interest rate on it. He again didn't make his payments and got it restructured again but I didn't hear the terms of that one. chelydra , 12 minutes ago link If student loan debt is such a crisis, force every university to use their precious endowment funds to underwrite those loans AND let those loans get discharged in bankruptcy. Maybe then those schools would start to question whether having a dozen "Diversity Deans" each being paid$100k+ salaries is really worth the expense (among other things).

Imagine That , 12 minutes ago link

A scholarship system awarding free tuition to the top 5% of college applicants (NOT biased by race, gender, etc) who apply to the U.S.'s best STEM programs, hell yes! Free tuition for future Democrat voters, f^%k that!

FightingDinosaur , 15 minutes ago link

The pissed off dad in this story has only one person to be pissed off at: himself, for being stupid. Understand something about college degrees: 90% of them, including majors like accounting, are not worth the paper they are printed on. Anyone who works double shifts to pay for anyone's college degree, even their own, is stupid. Look at why college costs so much: go to any state, and you'll see that 70% or more of the highest paid state employees are employed by public colleges and universities. You need to play these sons of bitches at their game, use their funny money to pay for the degree, and walk away. If you play the way these sons of bitches tell you to play, you get what you deserve.

I used their funny money to get a degree that wasn't worth the paper it was printed on and walked away. I don't give a **** if the sons of bitches grab my tax refund. Why? Because I have my withholdings set up so they get next to nothing in April. It costs the sons of bitches more to print up the garnishment letter and send it to me than what they're stealing from me. Guess what I use for an address? P.O. Box (can't serve a summons to a ghost).

If you're going to do what stupid, pissed off dad did, and work double shifts, you need to be trading out of all that funny money you're being paid for those double shifts, and trading into personal economic leverage (gold first, then silver). Instead of having bedrock to build multi-generational wealth, he has a daughter with a degree in pouring coffee, and nothing else to show for it. He only has himself to blame for drinking the Kool Aid. I can grab overtime every Saturday at my job if I want it, and every last penny of that OT is traded out of funny money and into gold ASAP.

Understand the US real estate market: the only reason it did not die five years ago was because we welcomed rich foreigners to come in and buy real estate to protect their wealth. We've stopped doing that, we have an over-abundance of domestic sellers and a severe shortage of domestic buyers. It's also where history says you need to be if you want to build multi-generational wealth. Warren actually needs to go further than what she's proposing. Not only does she need to discharge 100% of those balances by EO, she also needs to refund all those tax refunds stolen under false pretenses. Anything less, and we are guaranteed, for the next 40 years, to have a real estate market and economy which resembles Japan since 1989.

Why do I buy gold? So I can play people like Warren at their game. I'll take whatever loan discharge she gives me, and have lots of leverage in reserve to take advantage of what will be a once in a lifetime real estate fire sale.

Centurion9.41 , 13 minutes ago link

Here's an idea...

Make those who want to be bailed out have to pay the bailout back by working every non-holiday Saturday (at the minimum wage rate) for the government and citizens (e.g who need work done around the house, take care of the elderly - in the bathroom) until the debt is paid back. AND let those who have not taken the debt relief supervise them - getting paid by the government at the same rate, minimum wage. 🦞🦞🦞🦞🦞

gatorengineer , 13 minutes ago link

For a decent college it's between 35-70k a year.... Why? 300k a year library professors, if it weren't for tenure the problem would largely he self correcting as rntrillments drop...

southpaw47 , 18 minutes ago link

My how times have changed. My son was a college grad circa 1996. He did the JUCO thing for 1 1/2 years , worked a part time job for the duration, and picked up an A S while making the President's list. I aid, out of pocket all educational expenses while he lived at home and provided for a nice lifestyle while he was in school. As promised, he finished his education, out of state, which I paid for all along the way. 2 more years, he graduated, on the Pres list, and picked up his B S. No student debt, in his words, was one of the the greatest gifts. Today he is debt free, (so am I ), and he is a very happy , financially secure ( until the world goes upside down) mature adult. Hey Lizzie, send me a check.

Snaffew , 27 minutes ago link

They are all ignoring the real problem...the Federal mandated system of the guaranteed student loan program. Anyone with a pulse can get a guaranteed student loan, thus creating a massive rise in college admissions. The colleges are guaranteed the money for these loans, while the lender (the US gov't) is not guaranteed to be paid back by the students receiving these loans,. this created a fool proof, risk free ability for colleges and universities across the country to jack up their tuition costs at over a 5:1 ratio of income growth over the last 25 years. The problem is the program itself, students need to earn their ability to enroll in college through hard work and good grades. Currently, any moron with a high school diploma can go to college on a guaranteed student loan program and the colleges are more than willing to take on any idiot that wants to go to school despite their aspirations, work ethics, intelligence, achievements, etc. The universities have been given a blank check to expand their campuses, drastically inflate the salaries and pensions of professors and administrators of these schools all at the expense of this guaranteed "free" money from the government that only achieved an immense amount of the population going to overpriced schools in order to get a diploma in useless pursuits like african american studies, philosophy, creative writing, music, criminal justice, arts, basket weaving, etc.. The skyrocketing costs of colleges and student debt is the direct result of this miserably failed system of the guaranteed student loan. The majority of which have no business going to higher education because they don't have the aptitude, work ethic and intelligence necessary to actually receive a degree in anything that benefits the economy and themselves going forward. 30 years ago the average state college admission was roughly $4k a year for a good state school, today it is roughly$20k or far more. Meanwhile, the average income has gone up a meaningless amount. Get rid of the guaranteed student loan program and make the colleges responsible for accepting the responsibility of the loans for their students. I guarantee enrollment will decrease and costs will decline making it much more affordable for the truly responsible and aspiring student to achieve their dreams of a degree without a $250k loan needed for completion nor the lifelong strain of debt on their future incomes. The colleges are raping the system the same as all these shoestring companies take advantage of the medicaid system and give hovarounds and walking canes, and hearing aids for free because the gov't reimburses them at wildly inflated prices under some federally passed mandate. The system is the problem, eliminating the debt will only exacerbate it and cost taxpayers trillions more each and every year as "free" college will now entice every moron with a heartbeat the ability to go to outrageously priced schools with no skin in the game on the taxpayer's dime. Elizabeth Warren is an idiot....someone needs to have a sit down with her and discuss this rationale in her luxurious, state of the art TeePee. Balance-Sheet , 11 minutes ago link While you are correct corrupting academics with huge payoffs is how you secure their votes and the votes of most of the 'students' for decades to come. Any group or industry can be paid off and you might think of the system as a set of interlocking payoffs until you get out to the margins and the fringes where the cash and benefits are a lot thinner. bkwaz4 , 25 minutes ago link Everyone who continues to pay taxes to these neo-Bolsheviks is going to get screwed. The only alternative is to stop funding these criminals completely. johnduncan78 , 25 minutes ago link What a sorry presidential canditate! She flat out LIED about being native american to get FREE college. And now this. Where has America gone????????? Socialism sems to be what most want nowadays. It has NEVER EVER worked anywhere in the world at any time! If yoou think therwise, just name ONE countryn it has worked in ! What a lying bunch the democrats are.......................... Lie_Detector , 27 minutes ago link Warren Defends Plan To Cancel Student Debt So all if us have to pay for it. Why did I have to pay for University and College in the 1970's if I wanted to further my education and now that I am older I have to foot the bill for the young people of today? Pay DOUBLE? (just to buy votes for traitors?) I think NOT! Take your theft from the people, to buy votes of everyone from young people to illegal criminals to outright criminals in prison to dead people and resign before we decide to arrest you. Democrats, HANG IT UP! We are NOT paying for YOUR illegitimate votes. Resist-Socialist-Dem-Lies , 24 minutes ago link Notice too how all their "we're going to wipe out your debt!" promises never seem to include the big "endowments" of these fascist colleges that jacked up tuition 1000% over what it used to cost. No, those creepy commie profs and their freaky administrators get to keep their big TAX FREE endowments AND their big salaries. Big Gov by Sanders/Warren don't seem to think that's obscene. Lie_Detector , 22 minutes ago link You are absolutely correct. 45 years ago you could almost work part time and actually PAY your way through college. Today you almost need a physicians salary to pay for these OVERPRICED sewers filled with leftist propaganda. moron counter , 27 minutes ago link It's obvious that Warren doesn't teach economics or even math. They weren't smart enough when they took out the loans and they are not good with paying their bills so move the goal posts to bail them out. Has anyone given the thought that maybe they shouldn't have gone to college at all. Sounds like they will all work for the government anyways. #### [Jan 24, 2020] Bloomberg's Plan for Addressing Economic Inequality: not a wealth tax by Linda Beale ###### Jan 23, 2020 | angrybearblog.com A bit ago (Jan 8, 2020), the New York Times described Michael Bloomberg's plan 1 for addressing the income and wealth inequality in the United States that has been a constant topic of discussion by Democratic candidates. Briefly, as with the robber barons of Teddy Roosevelt's age, the wealth of the global commerce titans and particularly the private equity fund buyers and sellers of companies (and layers off of employees) has exploded over the last four decades in the US, beginning in earnest with Ronald Reagan's presidency. Most of the benefits of productivity gains have gone to a very few people at the top, and the bottom 50% of the wealth distribution actually owns a smaller share of the nation's wealth than 40 years ago. The top 1% have gained enormously, and the top 0.5% have been even more enriched. We have ultra multibillionaires like Jeff Bezos who can pay$9 billion to his wife in a divorce settlement and still be the wealthiest man in the world with more than $130 billion in net worth. He earns about$78.5 billion a year (counting value of his Amazon shares) or more than $6.5 billion a month 2 and thus exemplifies this new "gilded age" of ultrawealthy tycoons. This exists at the same time that the Trump administration proposes work requirements that will eliminate food stamp aid for 700,000 of hungry Americans and, with other initiatives, will take food stamps from 3.7 million beneficiaries who simply cannot get work that pays well enough to fund a sustainable lifestyle for themselves and their families. 3 This will "save" the U.S. about$5.5 billion over five years–less than Bezos 'earns' in a month. This disparity–$5.5 billion to feed 3.5 million hungry Americans versus provide a month's additional wealth for a person already wallowing in wealth like Jeff Bezos–is why it is clear that the US needs to figure out how to respond to the inequality crisis in order to protect American democracy and ensure Americans have a decent standard of living. Bloomberg's plan seems to be a moderate stance like Obama and Biden that attempts to focus on factors other than the wealth gap and the accompanying power gap that wealth provides. As the NY Times reports, he "frames the economic divide primarily in regional terms–and not along rich-versus-everyone-else class lines." 1 The Times article notes that his plan is not unlike the charge Obama gave to Joe Biden for the Middle Class Task Force. 1\ Bloomberg's proposals for addressing the problem are similarly centered on things long discussed and tried that are difficult to do at a large enough scale to make any inroads into the inequality problem or the power gap problem. He is most definitely not proposing a wealth tax. His proposals include a focus on education and skills training, infrastructure projects, and entrepreneurial training centers. Although the GI Bill was a significant part of the post-WWII economic boom because it allowed vast numbers of returning veterans to get a college education, Bloomberg seems to be thinking more of apprenticeships and community colleges (training for a job) rather than university (training for a career and an approach to learning throughout life). The Times notes his interest in raising the minimum wage to$15 an hour, expanding the Earned Income Tax Credit, and encouraging unions while disallowing noncompetes for low- and middle-income jobs.

All those are minimal steps that any progressive candidate should take, but while they may have marginal impact on middle class mobility, they will not do much at all to ease the income and wealth gap that has been caused by technology, globalization, and financialization of the economy together that has measured success almost solely from stock market numbers and thus allowed corporate and private equity tycoons to garner the major gains in productivity over decades while paying their workers too little (or moving offshore to pay even less), combined with a tax system that privileges wealth, including, among a host of others, extremely favorable corporate tax provisions after the 2017 tax legislation, ridiculously low maximum rates on ordinary income, carried interest provision, section 1031 exchanges, section 1202 exclusion for gains on original issue small business stock, capital gains preference, and an absurdly low flat estate tax above a too-high exemption amount with a step-up in basis for heirs.

Bloomberg is a billionaire who is at least aware that the inequality in this country is problematic and needs to be addressed. But like most of the "have-so-much" class, he shows little interest in what is truly required–a shift in the direction of redistribution to balance the distorted seesaw of billionaires getting all the height and the rest sitting at the bottom. FDR's New Deal is said to have worked because the robber barons were scared that the proletariat would rise up in support of communism–the so-called 'red scare' behind the success of social security enactment. There may not be a red scare now (though the Trump campaigners try to paint democratic socialist programs as communism), but there is a real likelihood that the contrast–and possibly real class warfare– between the squalor and despair of poor families who work hard but cannot fend for themselves and rich kids with silver spoons that only grow bigger and bigger may eventually threaten the global nation of the plutocrats. 4

1 Jim Tankersley, Michael Bloomberg's Jobs Plan is Focused on Place over Class , New York Times (Jan 8, 2020).

2 Hillary Hoffower, We did the math to calculate how much money Jeff Bezos makes in a year, month, week, day, hour, minute, and second , BusinessInsider.com (Jan 9, 2020).

3 Phil McCausland, T rump administration proposals could cause millions to lose food stamps , NBC News (Nov. 30, 2019) (discussing proposed changes to SNAP program that would impose stricter work requirements, cap deductions for utility allowances and 'reform' the way states automatically enroll families when they receive other aid). See also

4. See, e.g., Chrystia Freeland, Plutocrats: The Rise of the New Global Super-Rich (2012) (described in The Guardian book review as "a necessary and at times depressing book about the staggeringly wealthy"). Freeland is neither Marxist nor socialist, and as I am reading the book, not evenappropriately skeptical of the amount of merit behind the plutocrats' self-claimed meritocracy.

1. pgl , January 23, 2020 7:40 am

Bloomberg was mayor of NYC for 12 years. During that period he opposed raising taxes on the rich. He also showed what he thought about the various classes by making sure that upper Manhattan (where his fellow billionaires often live) got taken care of but the other boroughs (where the working class often live) received scant attention or real resources. OK – he was a better mayor than RUDY G. but that is a very low bar.

#### [Jan 22, 2020] Journalism as the last escape of mathematically illiterates

###### Jan 22, 2020 | www.moonofalabama.org

Walter , Jan 22 2020 12:30 utc | 95

@ Russ | Jan 22 2020 8:33 utc | 86 (about the gas cylinder(s).

Any bright high-school kid who's been through the math curriculum and has some calculus can tell you, give you, a range of terminal velocities in air at that elevation. You have to assume that the thing fell in the "best" attitude, and also the "worst" attitude - a matter of aerodynamic drag. Obviously there's a terminal velocity - somewhere about 200 feet per second. There's a minimum altitude above which it doesn't fall any faster because of drag...and it has a krappy drag coefficient. You have to work with the numbers to get a fine understanding...but it's the sort of question you'd see in a university engineering exam.

The mass is assumed to be something like 100 pounds. Do the math.

Then there's the question of concrete quality...it's highly heterogeneous..but you can assume it's top quality, and estimate the rebar density and thickness from the pretty pictures.

And you can assume zero projectile deformation (not even straps torn off!!?) and the hole's not big enough.

The story's bull.

William Gruff , Jan 22 2020 13:48 utc | 98

somebody @96: "But Western main stream media does not report on it."

Of course not. The western corporate mass media does not have among their workforce "Any bright high-school kid who's been through the math curriculum and has some calculus..." that Walter @95 points out as being a prerequisite to see how bogus is the narrative they are tasked with amplifying. The workforce chose to major in Journalism specifically because they had difficulties with basic arithmetic, with such heartless and unyielding topics as addition and subtraction being forever beyond them in the absence of a calculator.

Many think I exaggerate or am joking, but this is literal truth. These individuals of which the corporate mass media are composed get their conception of physics from crappy syfy movies in which spaceship blasters make "Pew-pew!!" noises in the vacuum of space. If it is necessary for the plot that a flimsy canister is able to punch through steel rebar reinforced concrete with barely a scratch, then they are fine with it. If these new age journalists' "contact" in Langley (what we know to be their "handler" or "operator" ) says it is believable, they won't pause for an instant to question.

After all, earnest delusion and ignorance serves the Mockingbird mass media's handlers in the CIA far better than does cynical and deliberate deception, though that last does have a sizable role to play as well. Deliberate deception is difficult and requires some skill, while any American can do stupidity with the greatest of ease.

#### [Jan 19, 2020] Inequality in the USA has reached an 100-year record high

###### Jan 19, 2020 | www.moonofalabama.org

vk , Jan 18 2020 13:29 utc | 135

@ Posted by: V | Jan 18 2020 9:49 utc | 118

Inequality in the USA has reached an 100-year record high:

It's not the 1% anymore but the 0.1%!

The top 0.1% of US wealth holders now have as much wealth (property, financial assets) as the bottom 90% for the first time since the 'roaring 20s'.

It's not the 1% anymore but the 0.1%!

#### [Jan 19, 2020] Death and Neglect in the 7th Fleet

###### Jan 19, 2020 | www.propublica.org

. A firsthand account from a U.S. Naval officer is eye opening (emphasis mine).

He'd seen his ship, one of the Navy's fleet of 11 minesweepers, sidelined by repairs and maintenance for more than 20 months. Once the ship, based in Japan, returned to action, its crew was only able to conduct its most essential training -- how to identify and defuse underwater mines -- for fewer than 10 days the entire next year . During those training missions, the officer said, the crew found it hard to trust the ship's faulty navigation system: It ran on Windows 2000.

Sonar which identifies dishwashers, crab traps and cars as possible mines, can hardly be considered a rebuilt military. The Navy's eleven minesweepers built more than 25 years ago, have had their decommissioning continually delayed because no replacement plan was implemented. I'll await the deeper understanding of 'deterrence' from b, even as I consider willingness to commit and brag about war crimes as beyond the point of no return.

Posted by: psychedelicatessen | Jan 19 2020 9:14 utc | 98

#### [Jan 19, 2020] Comparing the American to the former Soviet educational system

##### "... Many problems with Soviet education persist in Russia. Andrei Martyanov looks at many problems of Russian society via rose glasses. Taking into account the current level of Russophobia, that's a noble stance, and I do not object to his exaggerations. ..."
###### Dec 09, 2019 | www.unz.com

refl says: Next New Comment December 8, 2019 at 6:30 am GMT 200 Words

The question even to compare the American to the Russian or former Soviet educational system is delusional.

However, the US has understood something that the Russians and any decent people don't get: The people are consumers. They should not be educated beyond the needed to use the most recent applications on their electronic devices. Anything further carries the danger of having them discontent and thus an inroad to the Western entity.

Also, a military is not there to win wars and subsequently have a headache about how to deal with the conquered people. It is about wrecking far away places and providing opportunities to claim invoices from the federal government.

Modern, hybrid warfare is not about applying this or that military means, but about occupying the universities, courts and parliaments of the subdued people – finally occupying their minds. And yes, to do so includes that the weaponry should look cool and provide job opportunities for the hopeless youngsters of that amorphous mass formerly called the nation.

The Russians, Chinese, Iranians will have to stay alert 24/7/365 not to fall into the abyss of depravity that the Great Western Civilisation is offering to them. I am afraid, that the threat is very real that in the end they will be worn down.

likbez says: December 9, 2019 at 5:47 am GMT 800 Words @refl refl,

The question even to compare the American to the Russian or former Soviet educational system is delusional.

Believe me or not, I would prefer the USA system of education (with all its warts) to the Soviet system in the 70-90th without any hesitation. And with the same quality of students, the USA would achive the same or better results.

There was nothing particularly great in the Soviet educational system. Other than students, who were selected very competitively (often more than 10-30 people for one place in ordinary universities and 100-1000 in elite; yes, 1000 or more per one place was observed in theater specialties).

Soviet universities were as poor as church rats, which has one good side effect that they were forced to concentrate more on classic subjects like physics and math, which do not require expensive labs. So students got a solid background in math and physics. But that's about it.

Also, the motivation for study was pretty high: if you fail two times to be admitted to the university, you were drafted into the Red Army. If you were expelled for the bad academic rating (which was, I think, to fail more then two exams in one semester) -- the same call from the Red Army was waiting for you.

As emigrants from the USSR told me, programming courses were simply dismal, and graduates essentially learned the craft of the jobs, not at universities.

Even math books were the second rate in comparison with the USA textbooks of the same period.

They were written by a representative of so-called axiomatic schools and were extremely boring and uninformative. But many good math books were translated (for example, Polia writings) Actually, as I understand, translation of foreign books in the USSR was the only first-class enterprise (despite outdated equipment). It was first-class both in the selection and the speed of translation. For example, as Knuth mentioned, all three volumes of his books were translated into Russian within a very short interval.

Academic degrees were also mostly fake (much like they are in the USA now ;-): one of my friends told me that his Ph.D. from top Ukrainian University was counted only as a master degree in the USA by the commission which studied his thesis (I believe in NYU)

But again, most good western books on tech subjects were translated and were somewhat available. And if you compare Feynman lectures (which were also translated) to Soviet physics textbooks, Soviet textbooks were not even competitive. Some "cutting edge" books was OK. But very few.

The professors and lectures (including professors large part of which were just incompetent jerks, promoted due to nepotism or Communist party activities) deteriorated to the level that was simply painful to watch. Some came to lectures completely unprepared or drank, or tried to teach some completely bogus theories of their own invention. Many did not come at all sending assistants.

My impression is that essentially, in 1990, Soviet science and education experienced the same crisis as the Communist social system as a whole.

But I think students learn as much from each other as from professors, and if the level of the class was extremely high, the results were corresponding. In other words, poor university teachers did not harm them that much, and a lot what they learn, they learn on their own (except fundamental disciplines) -- kind of self-education buried within ;-).

Also, rigid soviet system (you have a zero opportunity to select your own set of subjects for a degree) has one important advantage. It schools you to be determined and persisting, no matter what subject you were assigned. To be a real fighter, in some academic or non-academic sense.

That was especially true as you also need to pass exams in Marxism philosophy and Political economy to get a degree. Those subjects were frown upon, but in retrospect were useful: students were forced to read classics, not junk like in neo-classical economics courses in the USA.

I think that the main reason for the high quality of Soviet engineers of this period was not the education the got, but the fact that talented people were nowhere to go; there was no "business path." That's why Berezovsky became an academic scholar and even reached the level of the Corresponding Member of the USSR Academy of Science

The level of backwardness of computer science education in the 90th in the USSR was staggering. So the fact that there were so many talented programmers in the country, many of whom later found a well-paid job in the Western countries, was mostly due to the level of the talent of those few who managed to get into universities.

Many problems with Soviet education persist in Russia. Andrei Martyanov looks at many problems of Russian society via rose glasses. Taking into account the current level of Russophobia, that's a noble stance, and I do not object to his exaggerations.

But the reality is more complex.

#### [Jan 19, 2020] The Quiet Crisis Deaths Caused By Alcoholism Have More Than Doubled

###### Jan 19, 2020 | www.zerohedge.com

The Quiet Crisis: Deaths Caused By Alcoholism Have More Than Doubled by Tyler Durden Sat, 01/18/2020 - 21:15 0 SHARES

Opioid overdoses may have leveled off last year after soaring over the last ten, but Americans are still dying in droves from another, far more popular substance: alcohol.

According to a series of studies cited by MarketWatch , the number of Americans drinking themselves to death has more than doubled over the last two decades, according to a sobering new report. That far outpaces the rate of population growth during the same period.

Researchers from the National Institute on Alcohol Abuse and Alcoholism studied the cause of death for Americans aged 16 and up between 1999 and 2017. They determined that while 35,914 deaths were tied to alcohol in 1999, it doubled to 72,558 in 2017. The rate of deaths per 100,000 soared by 50.9% from 16.9 to 25.5.

Over that 20-year period, the study determined that alcohol was involved in more than 1 million deaths. Half of these deaths resulted from liver disease, or a person drinking themselves to death, or a drug overdose that involved alcohol.

For more context: In 2017 alone, 2.6% of roughly 2.8 million deaths in the US were alcohol-related.

One doesn't need to be a chronic alcoholic to suffer from alcohol: Nine states - Maine, Indiana, Idaho, Montana, New Jersey, New York, North Dakota, Ohio and Virginia - saw a "significant" increase in adults who binge drink, a dangerous activity that can lead to deadly car crashes and other fatal accidents, according to a report released Thursday by the CDC.

And across the country, Americans who binge drink are consuming more drinks per person: That number spiked from 472 in 2011 to 529 in 2017, a 12% increase.

Historically, men have been more predisposed to "deaths of despair" than women: But a study published in "Alcoholism: Clinical and Experimental Research" found that the largest increase in recent years in these types of deaths occurred among non-hispanic white women.

Public health crises tied to substance abuse have been plaguing American for decades. So, what is it about our contemporary society that's causing deaths to skyrocket?

There's some food for thought.

VodkaInKrakow , 1 hour ago link

This happens in poor economies. Happened in Russia from 1992 on. Not every area is affected in The US. Just those with the functional equivalent of a 3rd world or developing world economy.

Double-whammy for parts of The US.

sekhars , 1 hour ago link

about 2000 die each year in NYC due to alcohol directly. 4 to 5 times more than opioids and more than all the drugs related death combined.

Ms No , 2 hours ago link

I'm watching somebody kill themselves with alcohol as we speak. People have catered to her alcaholism for 15 years. Her original ezcuse was a family death. Her husband has died now. Alcaholics always have an excuse though. Alcaholism always seeks excuse.

I am a callous bitch and just cut right to the point. "All of us have to decide to live or die. Life is a choice. If you decide to die, you will. I hope you havent already aubconsciously made that decision (can tell by dreams). You should search for a reason to live. Whatever you choose I will respect that."

TerryThomas , 2 hours ago link

Liver deaths? You mean Non-Alcoholic Fatty Liver Disease caused by sugary drinks laced with HFCS has made a spike in liver disease death, so naturally the lazy investigator blames it on alcohol.

sirpo , 4 hours ago link

adults who binge drink, a dangerous activity that can lead to deadly car crashes and other fatal accidents, according to a report released Thursday by the CDC.

a dangerous activity CORRECTION STUPIDITY or CHEAP CHARLIE for not willing to take a UBER or YELLOW CAB home

What are we talking here $50 at most Any idea what a DWI will set you back cause I know for a fact in stupidity and 1980's USD and it taught me Don't do the crime if you can't spend the dime for a taxi Erwin643 , 1 hour ago link Just thinning the herd, Baby! pods , 4 hours ago link Some people have a hard time living in crazy town. I mean, constant war, dollar value sinking, inflation sucking the life outta you, **** food and a fake society. All the while everywhere you look people are pretending they're killing it while up to their eyeballs in debt. I'm actually pretty happy these numbers are this low. PersonalResponsibility , 4 hours ago link Spot on pods. It's nice I have a dream and a good job while following the dream but the pressure is huge explained by what you wrote. Pull , 1 hour ago link Absolutely DEAD NUTS ON! #### [Jan 11, 2020] Atomization of workforce as a part of atomization of society under neoliberalism ##### Highly recommended! ##### Notable quotes: ##### "... a friend of mine, born in Venice and a long-time resident of Rome, pointed out to me that dogs are a sign of loneliness. ..." ##### "... And the cafes and restaurants on weekends in Chicago–chockfull of people, each on his or her own Powerbook, surfing the WWW all by themselves. ..." ##### "... The preaching of self-reliance by those who have never had to practice it is galling. ..." ##### "... Katherine: Agreed. It is also one of the reasons why I am skeptical of various evangelical / fundi pastors, who are living at the expense of their churches, preaching about individual salvation. ..." ##### "... So you have the upper crust (often with inheritances and trust funds) preaching economic self-reliances, and you have divines preaching individual salvation as they go back to the house provided by the members of the church. ..." ###### Apr 18, 2017 | www.nakedcapitalism.com DJG , April 17, 2017 at 11:09 am Neoliberalism is creating loneliness. That's what's wrenching society apart George Monbiot, Guardian George Monbiot on human loneliness and its toll. I agree with his observations. I have been cataloguing them in my head for years, especially after a friend of mine, born in Venice and a long-time resident of Rome, pointed out to me that dogs are a sign of loneliness. A couple of recent trips to Rome have made that point ever more obvious to me: Compared to my North Side neighborhood in Chicago, where every other person seems to have a dog, and on weekends Clark Street is awash in dogs (on their way to the dog boutiques and the dog food truck), Rome has few dogs. Rome is much more densely populated, and the Italians still have each other, for good or for ill. And Americans use the dog as an odd means of making human contact, at least with other dog owners. But Americanization advances: I was surprised to see people bring dogs into the dining room of a fairly upscale restaurant in Turin. I haven't seen that before. (Most Italian cafes and restaurants are just too small to accommodate a dog, and the owners don't have much patience for disruptions.) The dogs barked at each other for while–violating a cardinal rule in Italy that mealtime is sacred and tranquil. Loneliness rules. And the cafes and restaurants on weekends in Chicago–chockfull of people, each on his or her own Powerbook, surfing the WWW all by themselves. That's why the comments about March on Everywhere in Harper's, recommended by Lambert, fascinated me. Maybe, to be less lonely, you just have to attend the occasional march, no matter how disorganized (and the Chicago Women's March organizers made a few big logistical mistakes), no matter how incoherent. Safety in numbers? (And as Monbiot points out, overeating at home alone is a sign of loneliness: Another argument for a walk with a placard.) Katharine , April 17, 2017 at 11:39 am I particularly liked this point: In Britain, men who have spent their entire lives in quadrangles – at school, at college, at the bar, in parliament – instruct us to stand on our own two feet. With different imagery, the same is true in this country. The preaching of self-reliance by those who have never had to practice it is galling. DJG , April 17, 2017 at 11:48 am Katherine: Agreed. It is also one of the reasons why I am skeptical of various evangelical / fundi pastors, who are living at the expense of their churches, preaching about individual salvation. So you have the upper crust (often with inheritances and trust funds) preaching economic self-reliances, and you have divines preaching individual salvation as they go back to the house provided by the members of the church. #### [Jan 02, 2020] The Purpose Of Life Is Not Happiness: It s Usefulness Happiness as an achievable goal is an illusion, but that doesn t mean happiness itself is not attainable by Darius Foroux ##### Highly recommended! ##### Notable quotes: ##### "... "The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well." ..." ##### "... Recently I read Not Fade Away by Laurence Shames and Peter Barton. It's about Peter Barton, the founder of Liberty Media, who shares his thoughts about dying from cancer. ..." ###### Aug 22, 2019 | getpocket.com For the longest time, I believed that there's only one purpose of life: And that is to be happy. Right? Why else go through all the pain and hardship? It's to achieve happiness in some way. And I'm not the only person who believed that. In fact, if you look around you, most people are pursuing happiness in their lives. That's why we collectively buy shit we don't need, go to bed with people we don't love, and try to work hard to get approval of people we don't like. Why do we do these things? To be honest, I don't care what the exact reason is. I'm not a scientist. All I know is that it has something to do with history, culture, media, economy, psychology, politics, the information era, and you name it. The list is endless. We are who are. Let's just accept that. Most people love to analyze why people are not happy or don't live fulfilling lives. I don't necessarily care about the why . I care more about how we can change. Just a few short years ago, I did everything to chase happiness. • You buy something, and you think that makes you happy. • You hook up with people, and think that makes you happy. • You get a well-paying job you don't like, and think that makes you happy. • You go on holiday, and you think that makes you happy. But at the end of the day, you're lying in your bed (alone or next to your spouse), and you think: "What's next in this endless pursuit of happiness?" Well, I can tell you what's next: You, chasing something random that you believe makes you happy. It's all a façade. A hoax. A story that's been made up. Did Aristotle lie to us when he said: "Happiness is the meaning and the purpose of life, the whole aim and end of human existence." I think we have to look at that quote from a different angle. Because when you read it, you think that happiness is the main goal. And that's kind of what the quote says as well. But here's the thing: How do you achieve happiness? Happiness can't be a goal in itself. Therefore, it's not something that's achievable. I believe that happiness is merely a byproduct of usefulness. When I talk about this concept with friends, family, and colleagues, I always find it difficult to put this into words. But I'll give it a try here. Most things we do in life are just activities and experiences. • You go on holiday. • You go to work. • You go shopping. • You have drinks. • You have dinner. • You buy a car. Those things should make you happy, right? But they are not useful. You're not creating anything. You're just consuming or doing something. And that's great. Don't get me wrong. I love to go on holiday, or go shopping sometimes. But to be honest, it's not what gives meaning to life. What really makes me happy is when I'm useful. When I create something that others can use. Or even when I create something I can use. For the longest time I foud it difficult to explain the concept of usefulness and happiness. But when I recently ran into a quote by Ralph Waldo Emerson, the dots connected. Emerson says: "The purpose of life is not to be happy. It is to be useful, to be honorable, to be compassionate, to have it make some difference that you have lived and lived well." And I didn't get that before I became more conscious of what I'm doing with my life. And that always sounds heavy and all. But it's actually really simple. It comes down to this: What are you DOING that's making a difference? Did you do useful things in your lifetime? You don't have to change the world or anything. Just make it a little bit better than you were born. If you don't know how, here are some ideas. • Help your boss with something that's not your responsibility. • Take your mother to a spa. • Create a collage with pictures (not a digital one) for your spouse. • Write an article about the stuff you learned in life. • Help the pregnant lady who also has a 2-year old with her stroller. • Call your friend and ask if you can help with something. • Build a standing desk. • Start a business and hire an employee and treat them well. That's just some stuff I like to do. You can make up your own useful activities. You see? It's not anything big. But when you do little useful things every day, it adds up to a life that is well lived. A life that mattered. The last thing I want is to be on my deathbed and realize there's zero evidence that I ever existed. Recently I read Not Fade Away by Laurence Shames and Peter Barton. It's about Peter Barton, the founder of Liberty Media, who shares his thoughts about dying from cancer. It's a very powerful book and it will definitely bring tears to your eyes. In the book, he writes about how he lived his life and how he found his calling. He also went to business school, and this is what he thought of his fellow MBA candidates: "Bottom line: they were extremely bright people who would never really anything, would never add much to society, would leave no legacy behind. I found this terribly sad, in the way that wasted potential is always sad." You can say that about all of us. And after he realized that in his thirties, he founded a company that turned him into a multi-millionaire. Another person who always makes himself useful is Casey Neistat . I've been following him for a year and a half now, and every time I watch his YouTube show , he's doing something. He also talks about how he always wants to do and create something. He even has a tattoo on his forearm that says "Do More." Most people would say, "why would you work more?" And then they turn on Netflix and watch back to back episodes of Daredevil. A different mindset. Being useful is a mindset. And like with any mindset, it starts with a decision. One day I woke up and thought to myself: What am I doing for this world? The answer was nothing. And that same day I started writing. For you it can be painting, creating a product, helping elderly, or anything you feel like doing. Don't take it too seriously. Don't overthink it. Just DO something that's useful. Anything. Darius Foroux writes about productivity, habits, decision making, and personal finance. His ideas and work have been featured in TIME, NBC, Fast Company, Inc., Observer, and many more publications. Join his free weekly newsletter. More from Darius Foroux This article was originally published on October 3, 2016, by Darius Foroux, and is republished here with permission. Darius Foroux writes about productivity, habits, decision making, and personal finance. Join his newsletter. #### [Dec 02, 2019] The Fake Myth of American Meritocracy by Barbara Boland ##### Highly recommended! ##### Notable quotes: ##### "... As part of the scam, parents would "donate" money to a fake charity run by Singer. The funds would then be laundered to either pay off an SAT or ACT administrator to take the exams or bribe an employee in college athletics to name the rich, non-athlete children as recruits. Virtually every scenario relied on multiple layers of corruption, all of which eventually allowed wealthy students to masquerade as "deserving" of the merit-based college slots they paid up to half a million dollars to "qualify" for. ..." ##### "... When a majority of citizens disagrees with economic elites and/or with organised interests, they generally lose. Moreover, because of the strong status quo bias built into the US political system, even when fairly large majorities of Americans favor policy change, they generally do not get it. ..." ##### "... The conclusion of the study? We live in an oligarchy: ..." ###### Mar 15, 2019 | www.theamericanconservative.com The college bribery scandal reveals an ugly truth: our society is unjust, dominated by a small elite. Actress Lori Loughlin, who has been implicated in the Operation Varsity Blues scandal. Credit: Featureflash Photo Agency/Shutterstock The most destructive and pervasive myth in America today is that we live in a meritocracy. Our elites, so the myth goes, earned their places at Yale and Harvard, on Wall Street and in Washington -- not because of the accident of their birth, but because they are better, stronger, and smarter than the rest of us. Therefore, they think, they've "earned" their places in the halls of power and "deserve" to lead. The fervor with which so many believe this enables elites to lord over those worse off than they are. On we slumber, believing that we live in a country that values justice, instead of working towards a more equitable and authentically meritocratic society. Take the Operation Varsity Blues scandal. On Tuesday, the FBI and federal prosecutors announced that 50 people had been charged in, as Sports Illustrated put it , "a nationwide college admissions scheme that used bribes to help potential students cheat on college entrance exams or to pose as potential athletic recruits to get admitted to high-profile universities." Thirty-three parents, nine collegiate coaches, two SAT/ACT exam administrators, an exam proctor, and a college athletics administrator were among those charged. The man who allegedly ran the scheme, William Rick Singer, pled guilty to four charges of racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the U.S., and obstruction of justice. As part of the scam, parents would "donate" money to a fake charity run by Singer. The funds would then be laundered to either pay off an SAT or ACT administrator to take the exams or bribe an employee in college athletics to name the rich, non-athlete children as recruits. Virtually every scenario relied on multiple layers of corruption, all of which eventually allowed wealthy students to masquerade as "deserving" of the merit-based college slots they paid up to half a million dollars to "qualify" for. Cheating. Bribery. Lying. The wealthy and privileged buying what was reserved for the deserving. It's all there on vivid display. Modern American society has become increasingly and banally corrupt , both in the ways in which "justice" is meted out and in who is allowed to access elite education and the power that comes with it. The U.S. is now a country where corruption is rampant and money buys both access and outcomes. We pretend to be better than Russia and other oligarchies, but we too are dominated by a rich and powerful elite. The average American citizen has very little power, as a 2014 study by Princeton University found. The research reviewed 1,779 public policy questions asked between 1981 and 2002 and the responses by different income levels and interest groups; then calculated the likelihood that certain policies would be adopted. What they found came as no surprise: How to Fix College Admissions A proposed policy change with low support among economically elite Americans (one-out-of-five in favor) is adopted only about 18 percent of the time, while a proposed change with high support (four-out-of-five in favor) is adopted about 45% of the time. That's in stark contrast with policies favored by average Americans: When a majority of citizens disagrees with economic elites and/or with organised interests, they generally lose. Moreover, because of the strong status quo bias built into the US political system, even when fairly large majorities of Americans favor policy change, they generally do not get it. The conclusion of the study? We live in an oligarchy: our analyses suggest that majorities of the American public actually have little influence over the policies our government adopts. [T]he preferences of the average American appear to have only a minuscule, near-zero, statistically non-significant impact upon public policy. The belief in the myth of merit hurts the smart kid with great grades who aced his SATs but was still rejected from Yale and Harvard. It hurts talented athletes who have worked their tails off for so many years. It hurts parents who have committed hundreds of school nights and weekends to their children. It hurts HR departments that believe degrees from Ivy League schools mean that graduates are qualified. It hurts all of us who buy into the great myth that America is a democratic meritocracy and that we can achieve whatever we want if only we're willing to expend blood, toil, sweat, and tears. At least in an outright class system like the British Houses of Lords and Commons, there is not this farcical playacting of equal opportunity. The elites, with their privilege and titles, know the reason they are there and feel some sense of obligation to those less well off than they are. At the very least, they do not engage in the ritual pretense of "deserving" what they "earned" -- quite unlike those who descend on Washington, D.C. believing that they really are better than their compatriots in flyover country. All societies engage in myth-making about themselves. But the myth of meritocracy may be our most pervasive and destructive belief -- and it mirrors the myth that anything like "justice" is served up in our courts. Remember the Dupont heir who received no prison time after being convicted for raping his three-year-old daughter because the judge ruled that six-foot-four Robert Richards "wouldn't fare well in prison"? Or the more recent case of billionaire Jeffrey Epstein, who had connections to both Hillary Clinton and Donald Trump and faced a 53-page federal indictment for sex-trafficking over two dozens underage girls ? He received instead a sweetheart deal that concealed the extent of his crimes. Rather than the federal life imprisonment term he was facing, Epstein is currently on house arrest after receiving only 13 months in county jail. The lead prosecutor in that case had previously been reprimanded by a federal judge in another underage sex crimes case for concealing victim information, the Miami Herald reports . While the rich are able to escape consequences for even the most horrific of crimes , the U.S. has the highest incarceration rate in the world. Approximately 7 million people were under some form of correctional control by the end of 2011, including 2.2 million who were detained in federal, state, and local prisons and jails. One in every 10 black men in his thirties is in prison or jail, and one out of three black men born in 2001 can expect to go to prison in their lifetimes. While black people make up only 13 percent of the population, they make up 42 percent of death row and 35 percent of those who are executed . There are big racial disparities in charging, sentencing, plea bargaining, and executions, Department of Justice reviews have concluded, and black and brown people are disproportionately found to be innocent after landing on death row. The poor and disadvantaged thereby become grist for a system that cares nothing for them. Despite all this evidence, most Americans embrace a version of the Calvinist beliefs promulgated by their forebears, believing that the elect deserve their status. We remain confident that when our children apply to college or are questioned by police , they will receive just and fair outcomes. If our neighbors' and friends' kids do not, then we assure ourselves that it is they who are at fault, not the system. The result has been a gaping chasm through our society. Lives are destroyed because, rather than working for real merit-based systems and justice, we worship at the altar of false promises offered by our institutions. Instead we should be rolling up our sleeves and seeing Operation Varsity Blues for what it is: a call to action. Barbara Boland is the former weekend editor of the Washington Examiner . Her work has been featured on Fox News, the Drudge Report, HotAir.com, RealClearDefense, RealClearPolitics, and elsewhere. She's the author of Patton Uncovered , a book about General Patton in World War II. Follow her on Twitter @BBatDC . MORE FROM THIS AUTHOR The GOP's Laughable Call for a Balanced Budget Amendment Congress's "One Spending Bill to Rule Them All" is a Debt-Fueled Disgrace Hide 11 comments 11 Responses to The Myth of American Meritocracy If conservatives are going to dance the graves of Aunt Beckie, the backlash is going to be big. Sure this is a 'scandal' but it seems these parents weren't rich enough to bribe their kids in college the right way, like Trumps and Kushner, and probably slightly duped into going along with this scheme. (It appears the government got the ring leader to call all defendants to get evidence they participated in a crime.) Just wait until the mug shot of Aunt Beckie is on the internet and Olivia Jade does 60 minutes doing teary eyed interview of how much she loves her mother. And how many parents are stress that their kids will struggle in the global competitive economy. Fran Macadam , , March 15, 2019 at 1:52 pm I fully recall the days of getting government computing contracts. Once a certain threshold was reached, you discovered you had to hire a "lobbyist," and give him a significant amount of money to dole out to various gatekeepers in the bureaucracy for your contracts to be approved. That was the end of our government contracts, and the end was hastened by the reaction to trying to complain about it. prodigalson , , March 15, 2019 at 1:56 pm Great article, well done. More of this please TAC. Kurt Gayle , , March 15, 2019 at 2:17 pm Thank you, Barbara Boland, for "The Myth of American Meritocracy" and for linking ("Related Articles" box) to the 2012 "The Myth of American Meritocracy" by Ron Unz, then publisher of the American Conservative. The 26,000-word Ron Unz research masterpiece was the opening salvo in the nation-wide discussion that ultimately led to the federal court case nearing resolution in Boston. "The Myth of American Meritocracy -- How corrupt are Ivy League admissions?" by Ron Unz, The American Conservative, Nov 28, 2012: https://www.theamericanconservative.com/articles/the-myth-of-american-meritocracy/ Kurt Gayle , , March 15, 2019 at 2:18 pm Barbara Boland "While black people make up only 13 percent of the population, they make up 42 percent of death row and 35 percent of those who are executed." Ms. Boland: According to the US Department of Justice, African Americans [13 per cent of the population] accounted for 52.5% of all homicide offenders from 1980 to 2008. JeffK , , March 15, 2019 at 2:46 pm I agree with prodigalson. This is the type of article that TAC should uphold as a 'gold standard'. One reason I read, and comment on, TAC is that it offers thought provoking, and sometimes contrarian, articles (although the constant harping on transgender BS gets annoying). America has always been somewhat corrupt. But, to borrow a phrase, wealth corrupts, and uber wealth corrupts absolutely. As Warren Buffet says "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning". I have said it before, and I will say it again. During the next severe financial recession, if the rich are protected and coddled and everybody else is left to fend for themselves the ARs will come out of the closets when the sheriff comes to take the house or the pickup truck. My sense is that average Americans have had enough. Imagine if the digital transfer of money was abolished. Imagine if everybody had to have their money in a local bank instead of on an account in one of the major banks. Imagine if Americans saw, day after day, armored vehicles showing up at local banks to offload sacks of currency that went to only a few individual accounts. Instead, the elites get their financial statements showing an ever increasing pile of cash at their disposal. They see it, but nobody else does. But, if everybody physically saw the river of wealth flowing to the elites, I believe things would change. Fast. Right now this transfer of wealth is all digital, hidden from the view of 99.99% of Americans. And the elites, the banking industry, and the wealth management cabal prefer it that way. Mike N in MA , , March 15, 2019 at 2:49 pm You said it sister. Great article. I am amazed by the media coverage of this scandal. Was anyone actually under the impression that college admissions were on the level before these Hollywood bozos were caught red handed? BDavi52 , , March 15, 2019 at 2:49 pm What total silliness! No, the meritocracy is not dead; it's not even dying. It is, in fact, alive and well and the absolute best alternative to any other method used to separate wheat from chaff, cream from milk, diamonds from rust. What else is there that is even half as good? Are merit-based systems perfect? Heck, no. They've never been perfect; they will never be perfect. They are administered by people and people are flawed. Not just flawed in the way Singer, and Huffman are flawed (and those individuals are not simply flawed, they're corrupt) but flawed in the everyday kind of sense. Yes, we all have tendencies, biases, preferences that will -- inevitably -- leak into our selection process, no matter how objectively strict the process may be structured, no matter how rigorously fair we try to be. So the fact that -- as with most things -- we can find a trace of corruption here that fact is meaningless. We can find evidence of human corruption, venality, greed, sloth, lust, envy (all of the 7 Deadly Sins) pretty much everywhere. But if we look at the 20M students enrolled in college, the vast majority are successfully & fairly admitted through merit-based filtering systems (which are more or less rigorous) which have been in place forever. Ms. Boland tells us (with a straight face, no less) that "The U.S. is now a country where corruption is rampant and money buys both access and outcomes." But what does that even mean? Certainly money can buy access and certainly money can buy outcomes. But that's what money does. She might as well assert that money can buy goods and services, and lions and tigers and bears -- oh my! Of course it can. Equally networks can 'buy' access and outcomes (if my best friend is working as the manager for Adele, I'm betting he could probably arrange my meeting Adele). Equally success & fame can buy access and outcomes. I'm betting Adele can probably arrange a meeting with Gwen Stefani .and both can arrange a meeting with Tom Brady. So what? Does the fact that money can be used to purchase goods & services mean money or the use of money is corrupt or morally degenerate? No, of course not. In truth, we all leverage what we have (whatever that may be) to get what we want. That's how life works. But the fact that we all do that does not mean we are all corrupt. But yes, corruption does exist and can usually be found, in trace amounts -- as I said -- pretty much everywhere. So is it rampant? Can I buy my way into the NBA or the NFL? If I go to Clark Hunt and give him$20M and tell him I want to play QB for the Chiefs, will he let me? Can I buy my way into the CEO's position at General Electric, Apple, Microsoft, Google, Sprint, Verizon, General Motors, Toyota or any of the Fortune 500? Heck, can I even buy my way into the Governor's mansion? To become the Mayor of Chicago? Or the Police Commissioner? No -- these things are not possible. But what I can buy is my presence on the media stage.

What happens after cannot be purchased.

So no, by any measure, corruption is not rampant. And though many things are, in fact, for sale -- not everything is. And no matter how much money I give anyone, I'm never gonna QB the Chiefs or play for the Lakers.

She tells us, "we are dominated by a rich and powerful elite." No, we're not. Most of us live our lives making the choices we want to make, given the means that each of us has, without any interference from any so-called "elite". The "elite" didn't tell me where to go to school, or where to get a job, or how to do my job, or when to have kids, or what loaf of bread to buy, or what brand of beer tastes best, or where to go on the family vacation. No one did. The elite obviously did not tell us who to vote for in the last presidential election.

Of course one of the problems with the "it's the fault of the elite" is the weight given institutions by people like Ms.Boland. "Oh, lordy, the Elite used their dominating power to get a brainless twit of a daughter into USC". Now if my kid were cheated out of a position at USC because the Twit got in, I'd be upset but beyond that who really cares if a Twit gets an undergraduate degree from USC or Yale .or Harvard .or wherever. Some of the brightest people I've known earned their degrees at Easter PolyTechnic U (some don't even have college degrees -- oh, the horror!); some of the stupidest have Ivy League credentials. So what?

Only if you care about the exclusivity of such a relatively meaningless thing as a degree from USC, does gaming the exclusivity matter.

She ends with the exhortation: "The result has been a gaping chasm through our society. Lives are destroyed because, rather than working for real merit-based systems and justice, we worship at the altar of false promises offered by our institutions. Instead we should be rolling up our sleeves and seeing Operation Varsity Blues for what it is: a call to action."

To do what, exactly?

Toss the baby and the bathwater? Substitute lottery selection for merit? Flip a coin? What?
Again the very best method is and always will be merit-based. That is the incentive which drives all of us: the hope that if we work hard enough and do well enough, that we will succeed. Anything else is just a lie.

Yes, we can root out this piece of corruption. Yes, we can build better and more rigorously fair systems. But in the end, merit is the only game in town. Far better to roll-up our sleeves and simply buckle down, Winsocki. There isn't anything better.

Sid Finster , , March 15, 2019 at 2:52 pm
Gee, and people wonder why the rubes think that the system is gamed, why the dogs no longer want to eat the dog food.
Jim Jatras , , March 15, 2019 at 3:22 pm
"While black people make up only 13 percent of the population, they make up 42 percent of death row and 35 percent of those who are executed. There are big racial disparities in charging, sentencing, plea bargaining, and executions, Department of Justice reviews have concluded, and black and brown people are disproportionately found to be innocent after landing on death row. The poor and disadvantaged thereby become grist for a system that cares nothing for them."

So to what degree are these "disparities" "disproportionate" in light of actual criminal behavior? To be "proportionate," would we expect criminal behavior to correlate exactly to racial, ethnic, sex, and age demographics of society as a whole?

Put another way, if you are a victim of a violent crime in America, what are the odds your assailant is, say, an elderly, Asian female? Approximately zero.

Conversely, what are the odds your assailant is a young, black male? Rather high, and if you yourself are a young, black male, approaching 100 percent.

Pam , , March 15, 2019 at 3:42 pm

Mostly thumbs up to this article. But why you gotta pick on Calvinism at the end? Anyway, your understanding of Calvinism is entirely upside down. Calvinists believe they are elect by divine grace, and salvation is something given by God through Jesus, which means you can't earn it and you most assuredly don't deserve it. Calvinism also teaches that all people are made in the image of God and worthy of respect, regardless of class or status. There's no "version" of Calvinism that teaches what you claim.

#### [Dec 01, 2019] Academic Conformism is the road to 1984. - Sic Semper Tyrannis

##### Highly recommended!
###### Dec 01, 2019 | turcopolier.typepad.com

The world is filled with conformism and groupthink. Most people do not wish to think for themselves. Thinking for oneself is dangerous, requires effort and often leads to rejection by the herd of one's peers.

The profession of arms, the intelligence business, the civil service bureaucracy, the wondrous world of groups like the League of Women Voters, Rotary Club as well as the empire of the thinktanks are all rotten with this sickness, an illness which leads inevitably to stereotyped and unrealistic thinking, thinking that does not reflect reality.

The worst locus of this mentally crippling phenomenon is the world of the academics. I have served on a number of boards that awarded Ph.D and post doctoral grants. I was on the Fulbright Fellowship federal board. I was on the HF Guggenheim program and executive boards for a long time. Those are two examples of my exposure to the individual and collective academic minds.

As a class of people I find them unimpressive. The credentialing exercise in acquiring a doctorate is basically a nepotistic process of sucking up to elders and a crutch for ego support as well as an entrance ticket for various hierarchies, among them the world of the academy. The process of degree acquisition itself requires sponsorship by esteemed academics who recommend candidates who do not stray very far from the corpus of known work in whichever narrow field is involved. The endorsements from RESPECTED academics are often decisive in the award of grants.

This process is continued throughout a career in academic research. PEER REVIEW is the sine qua non for acceptance of a "paper," invitation to career making conferences, or to the Holy of Holies, TENURE.

This life experience forms and creates CONFORMISTS, people who instinctively boot-lick their fellows in a search for the "Good Doggy" moments that make up their lives. These people are for sale. Their price may not be money, but they are still for sale. They want to be accepted as members of their group. Dissent leads to expulsion or effective rejection from the group.

This mentality renders doubtful any assertion that a large group of academics supports any stated conclusion. As a species academics will say or do anything to be included in their caste.

This makes them inherently dangerous. They will support any party or parties, of any political inclination if that group has the money, and the potential or actual power to maintain the academics as a tribe. pl

doug , 01 December 2019 at 01:01 PM

Sir,

That is the nature of tribes and humans are very tribal. At least most of them. Fortunately, there are outliers. I was recently reading "Political Tribes" which was written by a couple who are both law professors that examines this.

Take global warming (aka the rebranded climate change). Good luck getting grants to do any skeptical research. This highly complex subject which posits human impact is a perfect example of tribal bias.

My success in the private sector comes from consistent questioning what I wanted to be true to prevent suboptimal design decisions.

I also instinctively dislike groups that have some idealized view of "What is to be done?"

As Groucho said: "I refuse to join any club that would have me as a member"

J , 01 December 2019 at 01:22 PM
Reminds one of the Borg, doesn't it?

The 'isms' had it, be it Nazism, Fascism, Communism, Totalitarianism, Elitism all demand conformity and adherence to group think. If one does not co-tow to whichever 'ism' is at play, those outside their group think are persecuted, ostracized, jailed, and executed all because they defy their conformity demands, and defy allegiance to them.

One world, one religion, one government, one Borg. all lead down the same road to -- Orwell's 1984.

Factotum , 01 December 2019 at 03:18 PM
David Halberstam: The Best and the Brightest. (Reminder how the heck we got into Vietnam, when the best and the brightest were serving as presidential advisors.)

Also good Halberstam re-read: The Powers that Be - when the conservative media controlled the levers of power; not the uber-liberal one we experience today.

#### [Oct 06, 2019] Devop created huge opportunities for a new generation of snake oil salesman

##### Highly recommended!
###### Oct 06, 2019 | www.reddit.com

DragonDrew Jack of All Trades 772 points · 4 days ago

"I am resolute in my ability to elevate this collaborative, forward-thinking team into the revenue powerhouse that I believe it can be. We will transition into a DevOps team specialising in migrating our existing infrastructure entirely to code and go completely serverless!" - CFO that outsources IT level 2 OpenScore Sysadmin 527 points · 4 days ago

"We will utilize Artificial Intelligence, machine learning, Cloud technologies, python, data science and blockchain to achieve business value"

#### [Sep 19, 2019] Form vs. substance in the neoliberal university

##### "... These acts are not about stating facts and describing opinions but about doing things and opening new possibilities. ..."
###### Sep 19, 2019 | www.amazon.com

Originally from: Everything Was Forever, Until It Was No More The Last Soviet Generation (In-Formation) by Alexei Yurchak

formal Shift

A general shift at the level of concrete ritualized forms of discourse, in which the formal dimension's importance grows, while the
informal, substantiative dimension opens up to new meanings, can and does occur in different historical and cultural contexts.

Consider an example from the contemporary United States. Today a number of private universities, colleges, and schools in several states require teachers and professors to take a "loyalty oath" to ensure that they do not "hold or foster undesirable political beliefs....

While the statutes vary, [these institutions] generally deny the right to teach to those who cannot or will not take the loyalty oath" (Chin and Rao 2003, 431 -32). Recently, a sociologist of law took such a loyalty oath at a Midwestern university when her appointment as a professor began.

From a political standpoint she disagreed with the practice of taking loyalty oaths, and later, in her role as professor of the sociology of law, she voiced political positions counter to those mentioned in the oath and challenged the oath-taking practice itself.

However, before she could do this, she first had to take the oath, understanding that without this act she would not be employed or recognized by the institution as a legitimate member with a voice authorized to participate in teaching, research, and the institution's politics (committees, meetings, elections, and so forth), including even the possibility to question publicly the practice of taking oaths.

Here, the informal, substantiative dimension of the ritualized act experiences a shift, while the formal dimension remains fixed and important: taking the oath opens a world of possibilities where new informal, substantiative meanings become possible, including a professorial position with a recognized political voice within the institution. In the sociologist's words, "The oath did not mean much if you took it, but it meant a lot if you didn't." 3 ^

This example illustrates the general principle of how some discursive acts or whole types of discourse can drift historically in the direction of an increasingly expanding formal dimension and increasingly open or even irrelevant informal, substantiative dimension. During Soviet late socialism, the formal dimension of speech acts at formal gathering and rituals became particularly important in most contexts and during most events.

One person who participated in large Komsomol meetings in the 1970s and 1980s described how he often spent the meetings reading a book. However, "when a vote had to be taken, everyone roused -- a certain sensor clicked in the head: 'Who is in favor?' -- and you raised your hand automatically" (see a discussion of such ritualized practices within the Komsomol in chapter a).

Here the emphasis on the formal dimension of organizational discourse was unique both in scale and substance. Most ritualized acts of "organizational discourse" during this time underwent such a transformation.

Participating in these acts reproduced oneself as a "normal" Soviet person within the system of relations, collectivities, and subject positions, with all the constraints and possibilities that position entailed, even including the possibility, after the meetings, to engage in interests, pursuits, and meanings that ran against those that were stated in the resolutions one had voted for.

It would obviously be wrong to see these acts of voting simply as informal, substantiative statements about supporting the resolution that are either true (real support) or false (dissimulation of support). These acts are not about stating facts and describing opinions but about doing things and opening new possibilities.

#### [Sep 13, 2019] Clowns, AI and layoffs

###### Sep 13, 2019 | www.nakedcapitalism.com

Bugs Bunny , September 13, 2019 at 4:25 pm

Clowns should be increasingly used in redundancy (layoff, firing) meetings until it becomes the norm and employers start to compete with each other to offer the best clown redundancy experience and promote it as a benefit.

It would also create clown jobs, which would probably require more clown schools, meaning that the tuition prices would go through the roof and young people dreaming of becoming redundancy clowns would either have to come from wealth or take out massive clown loans to fund their education for clown universities and grad schools. Shareholders can only take so much top line costs and Wall Street pressure would force corporations to improve return on investment and reduce redundancy clown labor expenses. Sadly, redundancy clowns would find themselves training their own replacements – HB1 clowns from "low cost" countries. Employers would respond to quality criticisms of the HB1 clown experience by publishing survey results showing very similar almost ex-employee satisfaction with the new clowns.

Eventually, of course, redundancy clowns will be replaced by AI and robots. It's just the future and we will need to think about how to adapt to it today by putting in place a UBI for the inevitable redundant redundancy clowns.

#### [Sep 09, 2019] What's the True Unemployment Rate in the US? by Jack Rasmus

##### "... The SSDI, undocumented, underground, underestimation of part timers, etc. are what I call the 'hidden unemployed'. And that brings the unemployed well above the 3.7%. ..."
###### Sep 09, 2019 | www.counterpunch.org

The real unemployment rate is probably somewhere between 10%-12%. Here's why: the 3.7% is the U-3 rate, per the labor dept. But that's the rate only for full time employed. What the labor dept. calls the U-6 includes what it calls discouraged workers (those who haven't looked for work in the past 4 weeks). Then there's what's called the 'missing labor force'–i.e. those who haven't looked in the past year. They're not calculated in the 3.7% U-3 unemployment rate number either. Why? Because you have to be 'out of work and actively looking for work' to be counted as unemployed and therefore part of the 3.7% rate.

The U-6 also includes what the labor dept. calls involuntary part time employed. It should include the voluntary part time as well, but doesn't (See, they're not actively looking for work even if unemployed).

But even the involuntary part time is itself under-estimated. I believe the Labor Dept. counts only those involuntarily part time unemployed whose part time job is their primary job. It doesn't count those who have second and third involuntary part time jobs. That would raise the U-6 unemployment rate significantly. The labor Dept's estimate of the 'discouraged' and 'missing labor force' is grossly underestimated.

The labor dept. also misses the 1-2 million workers who went on social security disability (SSDI) after 2008 because it provides better pay, for longer, than does unemployment insurance. That number rose dramatically after 2008 and hasn't come down much (although the government and courts are going after them).

The way the government calculates unemployment is by means of 60,000 monthly household surveys but that phone survey method misses a lot of workers who are undocumented and others working in the underground economy in the inner cities (about 10-12% of the economy according to most economists and therefore potentially 10-12% of the reported labor force in size as well). The labor dept. just makes assumptions about that number (conservatively, I may add) and plugs in a number to be added to the unemployment totals. But it has no real idea of how many undocumented or underground economy workers are actually employed or unemployed since these workers do not participate in the labor dept. phone surveys, and who can blame them.

The SSDI, undocumented, underground, underestimation of part timers, etc. are what I call the 'hidden unemployed'. And that brings the unemployed well above the 3.7%.

Finally, there's the corroborating evidence about what's called the labor force participation rate. It has declined by roughly 5% since 2007. That's 6 to 9 million workers who should have entered the labor force but haven't. The labor force should be that much larger, but it isn't. Where have they gone? Did they just not enter the labor force? If not, they're likely a majority unemployed, or in the underground economy, or belong to the labor dept's 'missing labor force' which should be much greater than reported. The government has no adequate explanation why the participation rate has declined so dramatically. Or where have the workers gone. If they had entered the labor force they would have been counted. And their 6 to 9 million would result in an increase in the total labor force number and therefore raise the unemployment rate.

All these reasons–-i.e. only counting full timers in the official 3.7%; under-estimating the size of the part time workforce; under-estimating the size of the discouraged and so-called 'missing labor force'; using methodologies that don't capture the undocumented and underground unemployed accurately; not counting part of the SSI increase as unemployed; and reducing the total labor force because of the declining labor force participation-–together means the true unemployment rate is definitely over 10% and likely closer to 12%. And even that's a conservative estimate perhaps." Join the debate on Facebook More articles by: Jack Rasmus

Jack Rasmus is author of the recently published book, 'Central Bankers at the End of Their Ropes: Monetary Policy and the Coming Depression', Clarity Press, August 2017. He blogs at jackrasmus.com and his twitter handle is @drjackrasmus. His website is http://kyklosproductions.com .

#### [Aug 30, 2019] Over 50 and unemployed: Don t panic!

##### "... Your resume should be tailored to each and every job you apply for. While it is important to showcase your talent and skills, how you present the information is equally important. ..."
###### Jan 03, 2012 | Palmetto Workforce Connections

When you find yourself over 50 and unemployed, the thought of finding another job may seem daunting and hopeless.

It is quite easy to become discouraged because many people fear being stereotyped because of their age, the tough job market, or the prospect of being interviewed by someone half their age. However, there are some things the older unemployed should keep in mind while on the job search. Using the following tips will increase your chances of a short job search and create an overall more pleasant experience.

1. Quit telling yourself that no one hires older workers. This is simply just not true. In some cases older workers have to exert more effort to overcome discrimination, but this is certainly not the case for every employer. There are even entire websites with jobs posted specifically for older workers, and a quick Google search will render you a list of those websites. Take advantage of such resources!
2. Take advantage of new technology. Learn to blog and micro-blog, via Twitter, about your profession and interests. You should even create a LinkedIn profile (a website similar to Facebook yet has a more career oriented function) to assist it meeting people in your desired field. All of which will help you stay fine tuned on your skills, while developing new ones. Learning to use social networking will indicate to potential employers that you can adapt to change and learn new things, particularly technology, fairly quickly.
3. Use all those hard earned contacts. Using contacts, no matter how far in the past they rest, is nothing to be ashamed of! You've probably spent most of your life working, and meeting a lot of people along the way. It is completely acceptable to reach out to former colleagues, class mates, co-workers and employers for job possibilities. Using resources like Facebook or LinkedIn are great ways to find those long lost contacts as well. Chances are they would love to hear from you and help you out if possible.
4. Don't clutter your resume. Your resume should be tailored to each and every job you apply for. While it is important to showcase your talent and skills, how you present the information is equally important. This means keep it straight to the point and relate your past experience to the skills necessary for the job you are applying for. Essentially, don't do a history dump of every job you've ever had, instead, make each word count!
5. Don't act superior to the interviewer. It is likely that the people interviewing you will be younger than you. But this does not mean you should look down upon them. Obviously they have earned their position, and if you play your cards right, in due time, you will earn yours! Even if you've worked more years than your interviewer has been alive, it's not okay to tell him or her that you can "teach" them anything. A better idea would be to state your experience working in a multi-generational work place.

Use these tips to help make your job search less stressful and more positive. Whatever you do, don't throw in the towel before you've even tried. Your experience and knowledge will be recognized. All you need is the right employer to identify it.

#### [Jun 21, 2019] A Slow Death The Ills of the Neoliberal Academic

##### "... Neoliberalization can be seen alongside a host of other ills. If the instructor is disposable and vulnerable, then so are the manifestations of learning. Libraries and research collections, for instance, are being regarded as deadening, inanimate burdens on the modern, vibrant university environment. Some institutions make a regular habit of culling their supply of texts and references: we are all e-people now, bound to prefer screens to paper, the bleary-eyed session of online engagement to the tactile session with a book. ..."
###### Jun 21, 2019 | dissidentvoice.org

A Slow Death: The Ills of the Neoliberal Academic

by Binoy Kampmark / June 20th, 2019

Any sentient being should be offended. Eventually, the Neoliberalization of the academic workforce was bound to find lazy enthusiasts who neither teach, nor understand the value of a tenured position dedicated to that musty, soon-to-be-forgotten vocation of the pedagogue. It shows in the designs of certain universities who confuse frothy trendiness with tangible depth: the pedagogue banished from the podium, with rooms lacking a centre, or a focal point for the instructor. Not chic, not cool, we are told, often by learning and teaching committees that perform neither task. Keep it modern; do not sound too bright and hide the learning: we are all equal in the classroom, inspiringly even and scrubbed of knowledge. The result is what was always to be expected: profound laziness on the part of instructors and students, dedicated mediocrity, and a rejection of all things intellectually taxing.

Neoliberalization, a word that says much in, and of, itself, is seen as analogue of broader outsourcing initiatives. Militaries do it, governments do it, and the university does it. Services long held to be the domain of the state, itself an animation of the social contract, the spirit of the people, have now become the incentive of the corporate mind, and, it follows, its associated vices. The entire scope of what has come to be known as outsourcing is itself a creature of propaganda, cheered on as an opportunity drawing benefits rather than an ill encouraging a brutish, tenuous life.

One such text is Douglas Brown and Scott Wilson's The Black Book of Outsourcing . Plaudits for it resemble worshippers at a shrine planning kisses upon icons and holy relics. "Brown & Wilson deliver on the best, most innovative, new practices all aimed at helping one and all survive, manage and lead in this new economy," praises Joann Martin, Vice President of Pitney Bowes Management Services. Brown and Wilson take aim at a fundamental "myth": that "Outsourcing is bad for America." They cite work sponsored by the Information Technology Association of America (of course) that "the practice of outsourcing is good for the US economy and its workers."

Practitioners and policy makers within the education industry have become devotees of the amoral dictates of supply and demand, underpinned by an insatiable management class. Central to their program of university mismanagement is the neoliberal academic, a creature both embraced and maligned in the tertiary sectors of the globe.

The neoliberal academic is meant to be an underpaid miracle worker, whose divining acts rescue often lax academics from discharging their duties. (These duties are outlined in that deceptive and unreliable document known as a "workplan", as tedious as it is fictional.) The neoliberal academic grades papers, lectures, tutors and coordinates subjects. The neoliberal provides cover, a shield, and an excuse for a certain class of academic manager who prefers the calling of pretence to the realities of work.

Often, these neoliberal academics are students undertaking a postgraduate degree and subject to inordinate degrees of stress in an environment of perennial uncertainty. The stresses associated with such students are documented in the Guardian's Academics Anonymous series and have also been the subject of research in the journal Research Policy . A representative sample of PhD students studying in Flanders, Belgium found that one in two experienced psychological distress, with one in three at risk of a common psychiatric disorder. Mental health problems tended to be higher in PhD students "than in the highly educated general population, highly education employees and higher education students."

This is hardly helped by the prospects faced by those PhDs for future permanent employment, given what the authors of the Research Policy article describe as the "unfavourable shift in the labour-supply demand balance, a growing popularity of short-term contracts, budget cuts and increased competition for research sources".

There have been a few pompom holders encouraging the Neoliberalization mania, suggesting that it is good for the academic sector. The explanations are never more than structural: a neoliberal workforce, for instance, copes with fluctuating enrolments and reduces labour costs. "Using neoliberal academics brings benefits and challenges," we find Dorothy Wardale, Julia Richardson and Yuliani Suseno telling us in The Conversation . This, in truth, is much like suggesting that syphilis and irritable bowel syndrome is necessary to keep you on your toes, sharp and streamlined. The mindset of the academic-administrator is to assume that such things are such (Neoliberalization, the authors insist, is not going way, so embrace) and adopt a prostrate position in the face of funding cuts from the public purse.

Neoliberalization can be seen alongside a host of other ills. If the instructor is disposable and vulnerable, then so are the manifestations of learning. Libraries and research collections, for instance, are being regarded as deadening, inanimate burdens on the modern, vibrant university environment. Some institutions make a regular habit of culling their supply of texts and references: we are all e-people now, bound to prefer screens to paper, the bleary-eyed session of online engagement to the tactile session with a book.

The neoliberal, sessional academic also has, for company, the "hot-desk", a spot for temporary, and all too fleeting occupation. The hot-desk has replaced the work desk; the partitions of the office are giving way to the intrusions of the open plan. The hot-desker, like coitus, is temporary and brief. The neoliberal academic epitomises that unstable reality; there is little need to give such workers more than temporary, precarious space. As a result, confidentiality is impaired, and privacy all but negated. Despite extensive research showing the negative costs of "hot-desking" and open plan settings, university management remains crusade bound to implement such daft ideas in the name of efficiency.

Neoliberalization also compounds fraudulence in the academy. It supplies the bejewelled short cut route, the bypass, the evasion of the rigorous things in learning. Academics may reek like piddling middle class spongers avoiding the issues while pretending to deal with them, but the good ones at least make some effort to teach their brood decently and marshal their thoughts in a way that resembles, at the very least, a sound whiff of knowledge. This ancient code, tested and tried, is worth keeping, but it is something that modern management types, along with their parasitic cognates, ignore. In Australia, this is particularly problematic, given suggestions that up to 80 percent of undergraduate courses in certain higher learning institutions are taught by neoliberal academics.

The union between the spread sheet manager and the uninterested academic who sees promotion through the management channel rather than scholarship, throws up a terrible hybrid, one vicious enough to degrade all in its pathway. This sort of hybrid hack resorts to skiving and getting neoliberals to do the work he or she ought to be doing. Such people co-ordinate courses but make sure they get the wallahs and helpers desperate for cash to do it. Manipulation is guaranteed, exploitation is assured.

The economy of desperation is cashed in like a reliable blue-chip stock: the skiver with an ongoing position knows that a neoliberal academic desperate to earn some cash cannot dissent, will do little to rock the misdirected boat, and will have to go along with utterly dotty notions. There are no additional benefits from work, no ongoing income, no insurance, and, importantly, inflated hours that rarely take into account the amount of preparation required for the task.

The ultimate nature of the Neoliberalization catastrophe is its diminution of the entire academic sector. Neoliberals suffer, but so do students. The result is not mere sloth but misrepresentation of the worst kind: the university keen to advertise a particular service it cannot provide sufficiently. This, in time, is normalised: what would students, who in many instances may not even know the grader of their paper, expect? The remunerated, secure academic-manager, being in the castle, can raise the drawbridge and throw the neoliberals to the vengeful crowd, an employment environment made safe for hypocrisy.

Binoy Kampmark was a Commonwealth Scholar at Selwyn College, Cambridge. He lectures at RMIT University, Melbourne and can be reached at: bkampmark@gmail.com . Read other articles by Binoy .

This article was posted on Thursday, June 20th, 2019 at 9:00pm and is filed under Neoliberalization , Education , Universities .

#### [Jun 19, 2019] America s Suicide Epidemic

##### "... Trump has neglected his base on pretty much every issue; this one's no exception. ..."
###### Jun 19, 2019 | www.nakedcapitalism.com

Yves here. This post describes how the forces driving the US suicide surge started well before the Trump era, but explains how Trump has not only refused to acknowledge the problem, but has made matters worse.

However, it's not as if the Democrats are embracing this issue either.

BY Rajan Menon, the Anne and Bernard Spitzer Professor of International Relations at the Powell School, City College of New York, and Senior Research Fellow at Columbia University's Saltzman Institute of War and Peace Studies. His latest book is The Conceit of Humanitarian Intervention Originally published at TomDispatch .

We hear a lot about suicide when celebrities like Anthony Bourdain and Kate Spade die by their own hand. Otherwise, it seldom makes the headlines. That's odd given the magnitude of the problem.

In 2017, 47,173 Americans killed themselves. In that single year, in other words, the suicide count was nearly seven times greater than the number of American soldiers killed in the Afghanistan and Iraq wars between 2001 and 2018.

A suicide occurs in the United States roughly once every 12 minutes . What's more, after decades of decline, the rate of self-inflicted deaths per 100,000 people annually -- the suicide rate -- has been increasing sharply since the late 1990s. Suicides now claim two-and-a-half times as many lives in this country as do homicides , even though the murder rate gets so much more attention.

In other words, we're talking about a national epidemic of self-inflicted deaths.

Worrisome Numbers

Anyone who has lost a close relative or friend to suicide or has worked on a suicide hotline (as I have) knows that statistics transform the individual, the personal, and indeed the mysterious aspects of that violent act -- Why this person? Why now? Why in this manner? -- into depersonalized abstractions. Still, to grasp how serious the suicide epidemic has become, numbers are a necessity.

According to a 2018 Centers for Disease Control study , between 1999 and 2016, the suicide rate increased in every state in the union except Nevada, which already had a remarkably high rate. In 30 states, it jumped by 25% or more; in 17, by at least a third. Nationally, it increased 33% . In some states the upsurge was far higher: North Dakota (57.6%), New Hampshire (48.3%), Kansas (45%), Idaho (43%).

Alas, the news only gets grimmer.

Since 2008 , suicide has ranked 10th among the causes of death in this country. For Americans between the ages of 10 and 34, however, it comes in second; for those between 35 and 45, fourth. The United States also has the ninth-highest rate in the 38-country Organization for Economic Cooperation and Development. Globally , it ranks 27th.

More importantly, the trend in the United States doesn't align with what's happening elsewhere in the developed world. The World Health Organization, for instance, reports that Great Britain, Canada, and China all have notably lower suicide rates than the U.S., as do all but six countries in the European Union. (Japan's is only slightly lower.)

World Bank statistics show that, worldwide, the suicide rate fell from 12.8 per 100,000 in 2000 to 10.6 in 2016. It's been falling in China , Japan (where it has declined steadily for nearly a decade and is at its lowest point in 37 years), most of Europe, and even countries like South Korea and Russia that have a significantly higher suicide rate than the United States. In Russia, for instance, it has dropped by nearly 26% from a high point of 42 per 100,000 in 1994 to 31 in 2019.

We know a fair amount about the patterns of suicide in the United States. In 2017, the rate was highest for men between the ages of 45 and 64 (30 per 100,000) and those 75 and older (39.7 per 100,000).

The rates in rural counties are almost double those in the most urbanized ones, which is why states like Idaho, Kansas, New Hampshire, and North Dakota sit atop the suicide list. Furthermore, a far higher percentage of people in rural states own guns than in cities and suburbs, leading to a higher rate of suicide involving firearms, the means used in half of all such acts in this country.

There are gender-based differences as well. From 1999 to 2017, the rate for men was substantially higher than for women -- almost four-and-a-half times higher in the first of those years, slightly more than three-and-a-half times in the last.

Education is also a factor. The suicide rate is lowest among individuals with college degrees. Those who, at best, completed high school are, by comparison, twice as likely to kill themselves. Suicide rates also tend to be lower among people in higher-income brackets.

The Economics of Stress

This surge in the suicide rate has taken place in years during which the working class has experienced greater economic hardship and psychological stress. Increased competition from abroad and outsourcing, the results of globalization, have contributed to job loss, particularly in economic sectors like manufacturing, steel, and mining that had long been mainstays of employment for such workers. The jobs still available often paid less and provided fewer benefits.

Technological change, including computerization, robotics, and the coming of artificial intelligence, has similarly begun to displace labor in significant ways, leaving Americans without college degrees, especially those 50 and older, in far more difficult straits when it comes to finding new jobs that pay well. The lack of anything resembling an industrial policy of a sort that exists in Europe has made these dislocations even more painful for American workers, while a sharp decline in private-sector union membership -- down from nearly 17% in 1983 to 6.4% today -- has reduced their ability to press for higher wages through collective bargaining.

Furthermore, the inflation-adjusted median wage has barely budged over the last four decades (even as CEO salaries have soared). And a decline in worker productivity doesn't explain it: between 1973 and 2017 productivity increased by 77%, while a worker's average hourly wage only rose by 12.4%. Wage stagnation has made it harder for working-class Americans to get by, let alone have a lifestyle comparable to that of their parents or grandparents.

The gap in earnings between those at the top and bottom of American society has also increased -- a lot. Since 1979, the wages of Americans in the 10th percentile increased by a pitiful 1.2%. Those in the 50th percentile did a bit better, making a gain of 6%. By contrast, those in the 90th percentile increased by 34.3% and those near the peak of the wage pyramid -- the top 1% and especially the rarefied 0.1% -- made far more substantial gains.

And mind you, we're just talking about wages, not other forms of income like large stock dividends, expensive homes, or eyepopping inheritances. The share of net national wealth held by the richest 0.1% increased from 10% in the 1980s to 20% in 2016. By contrast, the share of the bottom 90% shrank in those same decades from about 35% to 20%. As for the top 1%, by 2016 its share had increased to almost 39% .

The precise relationship between economic inequality and suicide rates remains unclear, and suicide certainly can't simply be reduced to wealth disparities or financial stress. Still, strikingly, in contrast to the United States, suicide rates are noticeably lower and have been declining in Western European countries where income inequalities are far less pronounced, publicly funded healthcare is regarded as a right (not demonized as a pathway to serfdom), social safety nets far more extensive, and apprenticeships and worker retraining programs more widespread.

Evidence from the United States , Brazil , Japan , and Sweden does indicate that, as income inequality increases, so does the suicide rate. If so, the good news is that progressive economic policies -- should Democrats ever retake the White House and the Senate -- could make a positive difference. A study based on state-by-state variations in the U.S. found that simply boosting the minimum wage and Earned Income Tax Credit by 10% appreciably reduces the suicide rate among people without college degrees.

The Race Enigma

One aspect of the suicide epidemic is puzzling. Though whites have fared far better economically (and in many other ways) than African Americans, their suicide rate is significantly higher . It increased from 11.3 per 100,000 in 2000 to 15.85 per 100,000 in 2017; for African Americans in those years the rates were 5.52 per 100,000 and 6.61 per 100,000. Black men are 10 times more likely to be homicide victims than white men, but the latter are two-and-half times more likely to kill themselves.

The higher suicide rate among whites as well as among people with only a high school diploma highlights suicide's disproportionate effect on working-class whites. This segment of the population also accounts for a disproportionate share of what economists Anne Case and Angus Deaton have labeled " deaths of despair " -- those caused by suicides plus opioid overdoses and liver diseases linked to alcohol abuse. Though it's hard to offer a complete explanation for this, economic hardship and its ripple effects do appear to matter.

According to a study by the St. Louis Federal Reserve , the white working class accounted for 45% of all income earned in the United States in 1990, but only 27% in 2016. In those same years, its share of national wealth plummeted, from 45% to 22%. And as inflation-adjusted wages have decreased for men without college degrees, many white workers seem to have lost hope of success of any sort. Paradoxically, the sense of failure and the accompanying stress may be greater for white workers precisely because they traditionally were much better off economically than their African American and Hispanic counterparts.

In addition, the fraying of communities knit together by employment in once-robust factories and mines has increased social isolation among them, and the evidence that it -- along with opioid addiction and alcohol abuse -- increases the risk of suicide is strong . On top of that, a significantly higher proportion of whites than blacks and Hispanics own firearms, and suicide rates are markedly higher in states where gun ownership is more widespread.

Trump's Faux Populism

The large increase in suicide within the white working class began a couple of decades before Donald Trump's election. Still, it's reasonable to ask what he's tried to do about it, particularly since votes from these Americans helped propel him to the White House. In 2016, he received 64% of the votes of whites without college degrees; Hillary Clinton, only 28%. Nationwide, he beat Clinton in counties where deaths of despair rose significantly between 2000 and 2015.

White workers will remain crucial to Trump's chances of winning in 2020. Yet while he has spoken about, and initiated steps aimed at reducing, the high suicide rate among veterans , his speeches and tweets have never highlighted the national suicide epidemic or its inordinate impact on white workers. More importantly, to the extent that economic despair contributes to their high suicide rate, his policies will only make matters worse.

The real benefits from the December 2017 Tax Cuts and Jobs Act championed by the president and congressional Republicans flowed to those on the top steps of the economic ladder. By 2027, when the Act's provisions will run out, the wealthiest Americans are expected to have captured 81.8% of the gains. And that's not counting the windfall they received from recent changes in taxes on inheritances. Trump and the GOP doubled the annual amount exempt from estate taxes -- wealth bequeathed to heirs -- through 2025 from $5.6 million per individual to$11.2 million (or $22.4 million per couple). And who benefits most from this act of generosity? Not workers, that's for sure, but every household with an estate worth$22 million or more will.

As for job retraining provided by the Workforce Innovation and Opportunity Act, the president proposed cutting that program by 40% in his 2019 budget, later settling for keeping it at 2017 levels. Future cuts seem in the cards as long as Trump is in the White House. The Congressional Budget Office projects that his tax cuts alone will produce even bigger budget deficits in the years to come. (The shortfall last year was $779 billion and it is expected to reach$1 trillion by 2020.) Inevitably, the president and congressional Republicans will then demand additional reductions in spending for social programs.

This is all the more likely because Trump and those Republicans also slashed corporate taxes from 35% to 21% -- an estimated $1.4 trillion in savings for corporations over the next decade. And unlike the income tax cut, the corporate tax has no end date . The president assured his base that the big bucks those companies had stashed abroad would start flowing home and produce a wave of job creation -- all without adding to the deficit. As it happens, however, most of that repatriated cash has been used for corporate stock buy-backs, which totaled more than$800 billion last year. That, in turn, boosted share prices, but didn't exactly rain money down on workers. No surprise, of course, since the wealthiest 10% of Americans own at least 84% of all stocks and the bottom 60% have less than 2% of them.

And the president's corporate tax cut hasn't produced the tsunami of job-generating investments he predicted either. Indeed, in its aftermath, more than 80% of American companies stated that their plans for investment and hiring hadn't changed. As a result, the monthly increase in jobs has proven unremarkable compared to President Obama's second term, when the economic recovery that Trump largely inherited began. Yes, the economy did grow 2.3% in 2017 and 2.9% in 2018 (though not 3.1% as the president claimed). There wasn't, however, any "unprecedented economic boom -- a boom that has rarely been seen before" as he insisted in this year's State of the Union Address .

Anyway, what matters for workers struggling to get by is growth in real wages, and there's nothing to celebrate on that front: between 2017 and mid-2018 they actually declined by 1.63% for white workers and 2.5% for African Americans, while they rose for Hispanics by a measly 0.37%. And though Trump insists that his beloved tariff hikes are going to help workers, they will actually raise the prices of goods, hurting the working class and other low-income Americans the most .

Then there are the obstacles those susceptible to suicide face in receiving insurance-provided mental-health care. If you're a white worker without medical coverage or have a policy with a deductible and co-payments that are high and your income, while low, is too high to qualify for Medicaid, Trump and the GOP haven't done anything for you. Never mind the president's tweet proclaiming that "the Republican Party Will Become 'The Party of Healthcare!'"

Let me amend that: actually, they have done something. It's just not what you'd call helpful. The percentage of uninsured adults, which fell from 18% in 2013 to 10.9% at the end of 2016, thanks in no small measure to Obamacare , had risen to 13.7% by the end of last year.

The bottom line? On a problem that literally has life-and-death significance for a pivotal portion of his base, Trump has been AWOL. In fact, to the extent that economic strain contributes to the alarming suicide rate among white workers, his policies are only likely to exacerbate what is already a national crisis of epidemic proportions.

Seamus Padraig , June 19, 2019 at 6:46 am

Trump has neglected his base on pretty much every issue; this one's no exception.

Trump is running on the claim that he's turned the economy around; addressing suicide undermines this (false) claim. To state the obvious, NC readers know that Trump is incapable of caring about anyone or anything beyond his in-the-moment interpretation of his self-interest.

Not just Trump. Most of the Republican Party and much too many Democrats have also abandoned this base, otherwise known as working class Americans.

The economic facts are near staggering and this article has done a nice job of summarizing these numbers that are spread out across a lot of different sites.

I've experienced this rise within my own family and probably because of that fact I'm well aware that Trump is only a symptom of an entire political system that has all but abandoned it's core constituency, the American Working Class.

sparagmite , June 19, 2019 at 10:13 am

Yep It's not just Trump. The author mentions this, but still focuses on him for some reason. Maybe accurately attributing the problems to a failed system makes people feel more hopeless. Current nihilists in Congress make it their duty to destroy once helpful institutions in the name of "fiscal responsibility," i.e., tax cuts for corporate elites.

dcblogger , June 19, 2019 at 12:20 pm

Maybe because Trump is president and bears the greatest responsibility in this particular time. A great piece and appreciate all the documentation.

Svante , June 19, 2019 at 7:00 am

I'd assumed, the "working class" had dissappeared, back during Reagan's Miracle? We'd still see each other, sitting dazed on porches & stoops of rented old places they'd previously; trying to garden, fix their car while smoking, drinking or dazed on something? Those able to morph into "middle class" lives, might've earned substantially less, especially benefits and retirement package wise. But, a couple decades later, it was their turn, as machines and foreigners improved productivity. You could lease a truck to haul imported stuff your kids could sell to each other, or help robots in some warehouse, but those 80s burger flipping, rent-a-cop & repo-man gigs dried up. Your middle class pals unemployable, everybody in PayDay Loan debt (without any pay day in sight?) SHTF Bug-out bags® & EZ Credit Bushmasters began showing up at yard sales, even up North. Opioids became the religion of the proletariat Whites simply had much farther to fall, more equity for our betters to steal. And it was damned near impossible to get the cops to shoot you?

Man, this just ain't turning out as I'd hoped. Need coffee!

Svante , June 19, 2019 at 7:55 am

We especially love the euphemism "Deaths O' Despair." since it works so well on a Chyron, especially supered over obese crackers waddling in crusty MossyOak™ Snuggies®

This is a very good article, but I have a comment about the section titled, "The Race Enigma." I think the key to understanding why African Americans have a lower suicide rate lies in understanding the sociological notion of community, and the related concept Emil Durkheim called social solidarity. This sense of solidarity and community among African Americans stands in contrast to the "There is no such thing as society" neoliberal zeitgeist that in fact produces feelings of extreme isolation, failure, and self-recriminations. An aside: as a white boy growing up in 1950s-60s Detroit I learned that if you yearned for solidarity and community what you had to do was to hang out with black people.

Amfortas the hippie , June 19, 2019 at 2:18 pm

" if you yearned for solidarity and community what you had to do was to hang out with black people."
amen, to that. in my case rural black people.
and I'll add Hispanics to that.
My wife's extended Familia is so very different from mine.
Solidarity/Belonging is cool.
I recommend it.
on the article we keep the scanner on("local news").we had a 3-4 year rash of suicides and attempted suicides(determined by chisme, or deduction) out here.
all of them were despair related more than half correlated with meth addiction itself a despair related thing.
ours were equally male/female, and across both our color spectrum.
that leaves economics/opportunity/just being able to get by as the likely cause.

David B Harrison , June 19, 2019 at 10:05 am

What's left out here is the vast majority of these suicides are men.

Christy , June 19, 2019 at 1:53 pm

Actually, in the article it states:
"There are gender-based differences as well. From 1999 to 2017, the rate for men was substantially higher than for women -- almost four-and-a-half times higher in the first of those years, slightly more than three-and-a-half times in the last."

which in some sense makes despair the wrong word, as females are actually quite a bit more likely to be depressed for instance, but much less likely to "do the deed". Despair if we mean a certain social context maybe, but not just a psychological state.

Ex-Pralite Monk , June 19, 2019 at 10:10 am

obese cracker

You lay off the racial slur "cracker" and I'll lay off the racial slur "nigger". Deal?

Suicide deaths are a function of the suicide attempt rate and the efficacy of the method used. A unique aspect of the US is the prevalence of guns in the society and therefore the greatly increased usage of them in suicide attempts compared to other countries. Guns are a very efficient way of committing suicide with a very high "success" rate. As of 2010, half of US suicides were using a gun as opposed to other countries with much lower percentages. So if the US comes even close to other countries in suicide rates then the US will surpass them in deaths. https://en.wikipedia.org/wiki/Suicide_methods#Firearms

Now we can add in opiates, especially fentanyl, that can be quite effective as well.

The economic crisis hitting middle America over the past 30 years has been quite focused on the states and populations that also tend to have high gun ownership rates. So suicide attempts in those populations have a high probability of "success".

Joe Well , June 19, 2019 at 11:32 am

I would just take this opportunity to add that the police end up getting called in to prevent on lot of suicide attempts, and just about every successful one.

In the face of so much blanket demonization of the police, along with justified criticism, it's important to remember that.

As someone who works in the mental health treatment system, acute inpatient psychiatry to be specific, I can say that of the 25 inpatients currently here, 11 have been here before, multiple times. And this is because of several issues, in my experience: inadequate inpatient resources, staff burnout, inadequate support once they leave the hospital, and the nature of their illnesses. It's a grim picture here and it's been this way for YEARS. Until MAJOR money is spent on this issue it's not going to get better. This includes opening more facilities for people to live in long term, instead of closing them, which has been the trend I've seen.

One last thing the CEO wants "asses in beds", aka census, which is the money maker. There's less profit if people get better and don't return. And I guess I wouldn't have a job either. Hmmmm: sickness generates wealth.

#### [Apr 28, 2019] Prisoners of Overwork A Dilemma by Peter Dorman

##### "... "the situation it describes is a classic prisoners dilemma." ..."
###### Apr 28, 2019 | angrybearblog.com

The New York Times has an illuminating article today summarizing recent research on the gender effects of mandatory overwork in professional jobs. Lawyers, people in finance and other client-centered occupations are increasingly required to be available round-the-clock, with 50-60 or more hours of work per week the norm. Among other costs, the impact on wage inequality between men and women is severe. Since women are largely saddled with primary responsibility for child care, even when couples ostensibly embrace equality on a theoretical level, the workaholic jobs are allocated to men. This shows up in dramatic differences between typical male and female career paths. The article doesn't discuss comparable issues in working class employment, but availability for last-minute changes in work schedules and similar demands are likely to impact men and women differentially as well.

What the article doesn't point out is that the situation it describes is a classic prisoners dilemma.* Consider law firms. They compete for clients, and clients prefer attorneys who are available on call, always prepared and willing to adjust to whatever schedule the client throws at them. Assume that most lawyers want sane, predictable work hours if they are offered without a severe penalty in pay. If law firms care about the well-being of their employees but also about profits, we have all the ingredients to construct a standard PD payoff matrix:

There is a penalty to unilateral cooperation, cutting work hours back to a work-life balance level. If your firm does it and the others don't, you lose clients to them.

There is a benefit to unilateral defection. If everyone else is cutting hours but you don't, you scoop up the lion's share of the clients.

Mutual cooperation is preferred to mutual defection. Law firms, we are assuming, would prefer a world in which overwork was removed from the contest for competitive advantage. They would compete for clients as before, but none would require their staff to put in soul-crushing hours. The alternative equilibrium, in which competition is still on the basis of the quality of work but everyone is on call 24/7 is inferior.

If the game is played once, mutual defection dominates. If it is played repeatedly there is a possibility for mutual cooperation to establish itself, but only under favorable conditions (which apparently don't exist in the world of NY law firms). The logical solution is some form of binding regulation.

The reason for bringing this up is that it strengthens the case for collective action rather than placing all the responsibility on individuals caught in the system, including for that matter individual law firms. Or, the responsibility is political, to demand constraints on the entire industry. One place to start would be something like France's right-to-disconnect law .

*I haven't read the studies by economists and sociologists cited in the article, but I suspect many of them make the same point I'm making here.

Sandwichman said...
"the situation it describes is a classic prisoners dilemma."

Now why didn't I think of that?

#### [Apr 13, 2019] For those IT guys who want to change the specalty

##### "... We already saw this in South Africa. Mandela took over, the country went down the tubes, the wealthy whites left and the Boers were left to die in refugee camps. They WANT to leave and a few went to Russia, but most developed countries don't want them. Not with the limited amount of money they have. ..."
##### "... Americans are mostly ignorant to the fact that they live in a 2nd world country except for blacks and rednecks I have met in the Philippines who were stationed there in the military and have a $1000 a month check. Many of them live in more dangerous and dirty internal third worlds in America than what they can have in Southeast Asia and a good many would be homeless. They are worldly enough to leave. ..." ###### Apr 13, 2019 | www.unz.com Anonymous [388] Disclaimer , says: March 12, 2019 at 1:26 pm GMT @YetAnotherAnon " He's 28 years old getting too old and soft for the entry-level grunt work in the skilled trades as well. What then?" I know a UK guy (ex City type) who retrained as an electrician in his early 50s. Competent guy. Obviously no one would take him on as an apprentice, so he wired up all his outbuildings as his project to get his certificate. But he's getting work now, word gets around if you're any good. Obviously you need a financial cushion to not be earning for months and to pay for the training courses. Yeah, people get set in their ways and resistant to make changes. Steve Jobs talked about people developing grooves in their brain and how important it is to force yourself out of these grooves.* I know a Haitian immigrant without a college degree who was working three jobs and then dropped down to two jobs and went to school part time in his late 40's and earned his degree in engineering and is a now an engineer in his early 50's. *From Steve Jobs by Walter Isaacson (Simon and Schuster, 2011), pp.330-331: "It's rare that you see an artist in his 30s or 40s able to really contribute something amazing," Jobs said wistfully to the writer David Sheff, who published a long and intimate interview in Playboy the month he turned thirty. "Of course, there are some people who are innately curious, forever little kids in their awe of life, but they're rare." The interview touched on many subjects, but Jobs's most poignant ruminations were about growing old and facing the future: Your thoughts construct patterns like scaffolding in your mind. You are really etching chemical patterns. In most cases, people get stuck in those patterns, just like grooves in a record, and they never get out of them. I'll always stay connected with Apple. I hope that throughout my life I'll sort of have the thread of my life and the thread of Apple weave in and out of each other, like a tapestry. There may be a few years when I'm not there, but I'll always come back. . . . If you want to live your life in a creative way, as an artist, you have to not look back too much. You have to be willing to take whatever you've done and whoever you were and throw them away. The more the outside world tries to reinforce an image of you, the harder it is to continue to be an artist, which is why a lot of times, artists have to say, "Bye. I have to go. I'm going crazy and I'm getting out of here." And they go and hibernate somewhere. Maybe later they re-emerge a little differently. anonymous [191] Disclaimer , says: March 12, 2019 at 9:59 pm GMT @The Anti-Gnostic "fluid intelligence" starts crystallizing after your 20's". Nonsense, I had a great deal of trouble learning anything from my teen years and 20's because I didn't know how to learn. I went for 30 years and eventually figured out a learning style that worked for me. I have learned more and mastered more skills in the past ten years ages 49-59 than I had in the previous 30. You can challenge yourself like I did and after a while of doing this (6 months) you will find it a lot easier to learn and comprehend than you did previously. (This is true only if you haven't damaged your brain from years of smoking and drinking). I constantly challenged myself with trying to learn math that I had trouble with in school and eventually mastered it. The brain is like a muscle, it needs to be constantly worked to become strong. If you waste it watching football or looking at porn your brain will atrophy like the muscles of a person in a wheelchair. Anon [257] Disclaimer , says: March 15, 2019 at 4:29 am GMT @YetAnotherAnon IBEW (licensed electricians) has no upper age limit for apprentices They have lots of American engineers who applied in their 30s after realizing most companies want diverse HI-B engineers. Upper age limits for almost every occupation disappeared decades ago in America because of age discrimination laws. I can't see how any 28 year old could possibly be too soft to go into any kind of manual labor job. jbwilson24 , says: March 15, 2019 at 9:31 am GMT @anonymous Yeah, there was a recent study showing that 70 year olds can form neural connections as quickly as teenagers. ###### At 40+, I still can learn advanced mathematics as well as I ever did. In fact, I can still compete with the Chinese 20 year olds. The problem is not mental horsepower, it's time and energy. I rarely have time to concentrate these days (wife, kids, pets), which makes it hard to get the solid hours of prime mental time required to really push yourself at a hard pace and learn advanced material. This is why the Chinese are basically out of date when they are 30, their companies assume that they have kids and are not able to give 110% anymore. jacques sheete , says: March 15, 2019 at 11:14 am GMT @anonymous eventually figured out a learning style that worked for me. That's a huge key and I discovered it when I was asked to tutor people who were failing chemistry. I quickly discovered that all it took for most of them to "get it" was to keep approaching the problem from different angles until a light came on for them and for me the challenge of finding the right approach was a great motivator. Invariably it was some minor issue and once they overcame that, it became easy for them. I'm still astonished at that to this day. The brain is like a muscle, it needs to be constantly worked to become strong. If you waste it watching football or looking at porn your brain will atrophy like the muscles of a person in a wheelchair. No doubt about it. No embellishment needed there! s.n , says: March 15, 2019 at 11:42 am GMT @The Anti-Gnostic Yeah. He's 28 years old and apparently his chosen skillset is teaching EASL in foreign countries. That sector is shrinking as English becomes the global lingua franca and is taught in elementary schools worldwide. He's really too old and soft for his Plan B (military), and getting too old and soft for the entry-level grunt work in the skilled trades as well. What then? do you know anything first hand about the teaching- english- as-a- second- language hustle? Asking sincerely – as I don't know anything about it. However I kinda suspect that 'native speakers' will be in demand in many parts of the globe for some time to come [as an aside – and maybe Linh has written of this and I missed it – but last spring I was in Saigon for a couple of weeks and, hanging out one day at the zoo & museum complex, was startled to see about three groups of Vietnamese primary-school students being led around by americans in their early 20s, narrating everything in american english . Apparently private schools offering entirely english-language curriculum are the big hit with the middle & upper class elite there. Perhaps more of the same elsewhere in the region?] At any rate the young man in this interview has a lot more in the way of qualifications and skill sets than I had when I left the States 35 years ago, and I've done just fine. I'd advise any prospective expats to get that TEFL certificate as it's one extra thing to have in your back pocket and who knows? PS: "It really can't be overstated how blessed you are to have American citizenship" – well, yes it can. Everyone knows that the best passport on earth is from Northwest Euroland, one of those places with free university education and free health care and where teenage mothers don't daily keel over dead from heroin overdoses in Dollar Stores .. Also more places visa-free The Anti-Gnostic , says: Website March 15, 2019 at 2:37 pm GMT @s.n When you left the States 35 years ago, the world was 3 billion people smaller. The labor market has gotten a tad more competitive. I don't see any indication of a trade or other refined skillset in this article. People who teach EASL for a living are like people who drive cars for a living: you don't do it because you're really good at teaching your native language, you do it because you're not marketable at anything else. jeff stryker , says: March 15, 2019 at 3:20 pm GMT @jacques sheete JACQUES I think being Australian is the best citizenry you can have. The country is far from perfect, but any lower middle class American white like myself would prefer to be lower middle class there than in Detroit or Phoenix, where being lower income means life around the unfettered urban underclass that is paranoia inducing. Being from the US is not as bad as being Bangladeshi, but if you had to be white and urban and poor you'd be better off in Sydney than Flint. The most patriotic Americans have never been anywhere, so they have no idea whether Australia or Tokyo are better. They have never traveled. s.n , says: March 15, 2019 at 11:42 am GMT @The Anti-Gnostic Yeah. He's 28 years old and apparently his chosen skillset is teaching EASL in foreign countries. That sector is shrinking as English becomes the global lingua franca and is taught in elementary schools worldwide. He's really too old and soft for his Plan B (military), and getting too old and soft for the entry-level grunt work in the skilled trades as well. What then? do you know anything first hand about the teaching- english- as-a- second- language hustle? Asking sincerely – as I don't know anything about it. However I kinda suspect that 'native speakers' will be in demand in many parts of the globe for some time to come [as an aside – and maybe Linh has written of this and I missed it – but last spring I was in Saigon for a couple of weeks and, hanging out one day at the zoo & museum complex, was startled to see about three groups of Vietnamese primary-school students being led around by americans in their early 20s, narrating everything in american english . Apparently private schools offering entirely english-language curriculum are the big hit with the middle & upper class elite there. Perhaps more of the same elsewhere in the region?] At any rate the young man in this interview has a lot more in the way of qualifications and skill sets than I had when I left the States 35 years ago, and I've done just fine. I'd advise any prospective expats to get that TEFL certificate as it's one extra thing to have in your back pocket and who knows? ps: "It really can't be overstated how blessed you are to have American citizenship" – well, yes it can. Everyone knows that the best passport on earth is from Northwest Euroland, one of those places with free university education and free health care and where teenage mothers don't daily keel over dead from heroin overdoses in Dollar Stores .. Also more places visa-free s.n , says: March 16, 2019 at 7:23 am GMT @The Anti-Gnostic People who teach EASL for a living are like people who drive cars for a living: you don't do it because you're really good at teaching your native language, you do it because you're not marketable at anything else. well that's the beauty of it: you don't have to be good at anything other than just being a native speaker to succeed as an EASL teacher, and thousands more potential customers are born every day. I'd definitely advise any potential expats to become accomplished, and, even better, qualified, in as many trades as possible. But imho the real key to success as a long term expat is your mindset: determination and will-power to survive no matter what. If you really want to break out of the States and see the world, and don't have inherited wealth, you will be forced to rely on your wits and good luck and seize the opportunities that arise, whatever those opportunities may be. Thedirtysponge , says: March 16, 2019 at 4:01 pm GMT @The Anti-Gnostic Sorry man, English teaching is huge, and will remain so for some time to come. I'm heavily involved in the area and know plenty of ESL teachers. Spain for me, and the level of English here is still so dreadful and they all need it, the demand is staggering and their schools suck at teaching it themselves. You are one of those people who just like to shit on things:) and people make a lot of money out of it, not everyone of course, like any area. But it's perfectly viable and good to go for a long time yet. It's exactly that English is the lingua Franca that people need to be at a high level of it. The Chinese market is still massive. The bag packer esl teachers are the ones that give off this stigma, and 'bag packer' and 'traveller' are by now very much regarded as dirty words in the ESL world. Mike P , says: March 16, 2019 at 5:52 pm GMT @Thedirtysponge ESL teachers. Spain for me There is a very funny version also with Jack Lemmon in "Irma la Douce", but I can't find that one on youtube. jeff stryker , says: March 17, 2019 at 7:26 am GMT @Thedirtysponge S.N. & DIRTY SPONGE Most Americans lack the initiative to move anywhere. Most will complain but will never leave the street they were born on. Urban whites are used to adaptation being around other cultures anyhow and being somewhat street smart, but the poor rural whites in the exurbs or sticks whose live would really improve if they got the hell out of America will never move anywhere. You have to really dislike your circumstances in the US to leave and be willing to find some way to get by overseas. Lots of people will talk about leaving America without having a clue as to how hard this is to actually do. Australia and New Zealand are not crying out for white proles with high school education or GED. It is much more difficult to move overseas and stay overseas than most Americans think. Except of course for the ruling elite. And that is because five-star hotels look the same everywhere and money is an international language. We already saw this in South Africa. Mandela took over, the country went down the tubes, the wealthy whites left and the Boers were left to die in refugee camps. They WANT to leave and a few went to Russia, but most developed countries don't want them. Not with the limited amount of money they have. Australia and NZ would rather have refugees than white people in dire circumstances. Even immigrating to Canada, a country that I worked in, is much much harder than anyone imagines. jeff stryker , says: March 17, 2019 at 7:37 am GMT A LONGTIME EXPAT ON LIVING ABROAD Americans are mostly ignorant to the fact that they live in a 2nd world country except for blacks and rednecks I have met in the Philippines who were stationed there in the military and have a$1000 a month check. Many of them live in more dangerous and dirty internal third worlds in America than what they can have in Southeast Asia and a good many would be homeless. They are worldly enough to leave.

But most Americans whose lives would be vastly improved overseas think they are living in the greatest country on earth.

#### [Mar 25, 2019] The Mass Psychology of Trumpism by Eli Zaretsky

##### "... Of those providing his roughly 40 per cent approval ratings, half say they 'strongly approve' and are probably lost to the Democrats. ..."
###### Sep 18, 2018 | lrb.co.uk
One might object that Trump, a billionaire TV star, does not resemble his followers. But this misses the powerful intimacy that he establishes with them, at rallies, on TV and on Twitter. Part of his malicious genius lies in his ability to forge a bond with people who are otherwise excluded from the world to which he belongs. Even as he cast Hillary Clinton as the tool of international finance, he said:

I do deals – big deals – all the time. I know and work with all the toughest operators in the world of high-stakes global finance. These are hard-driving, vicious cut-throat financial killers, the kind of people who leave blood all over the boardroom table and fight to the bitter end to gain maximum advantage.

With these words he brought his followers into the boardroom with him and encouraged them to take part in a shared, cynical exposure of the soiled motives and practices that lie behind wealth. His role in the Birther movement, the prelude to his successful presidential campaign, was not only racist, but also showed that he was at home with the most ignorant, benighted, prejudiced people in America. Who else but a complete loser would engage in Birtherism, so far from the Hollywood, Silicon Valley and Harvard aura that elevated Obama, but also distanced him from the masses?

The consistent derogation of Trump in the New York Times or on MSNBC may be helpful in keeping the resistance fired up, but it is counterproductive when it comes to breaking down the Trump coalition. His followers take every attack on their leader as an attack on them. 'The fascist leader's startling symptoms of inferiority', Adorno wrote, 'his resemblance to ham actors and asocial psychopaths', facilitates the identification, which is the basis of the ideal. On the Access Hollywood tape, which was widely assumed would finish him, Trump was giving voice to a common enough daydream, but with 'greater force' and greater 'freedom of libido' than his followers allow themselves. And he was bolstering the narcissism of the women who support him, too, by describing himself as helpless in the grip of his desires for them.

Adorno also observed that demagoguery of this sort is a profession, a livelihood with well-tested methods. Trump is a far more familiar figure than may at first appear. The demagogue's appeals, Adorno wrote, 'have been standardised, similarly to the advertising slogans which proved to be most valuable in the promotion of business'. Trump's background in salesmanship and reality TV prepared him perfectly for his present role. According to Adorno,

the leader can guess the psychological wants and needs of those susceptible to his propaganda because he resembles them psychologically, and is distinguished from them by a capacity to express without inhibitions what is latent in them, rather than by any intrinsic superiority.

To meet the unconscious wishes of his audience, the leader

simply turns his own unconscious outward Experience has taught him consciously to exploit this faculty, to make rational use of his irrationality, similarly to the actor, or a certain type of journalist who knows how to sell their sensitivity.

All he has to do in order to make the sale, to get his TV audience to click, or to arouse a campaign rally, is exploit his own psychology.

Using old-fashioned but still illuminating language, Adorno continued:

The leaders are generally oral character types, with a compulsion to speak incessantly and to befool the others. The famous spell they exercise over their followers seems largely to depend on their orality: language itself, devoid of its rational significance, functions in a magical way and furthers those archaic regressions which reduce individuals to members of crowds.

Since uninhibited associative speech presupposes at least a temporary lack of ego control, it can indicate weakness as well as strength. The agitators' boasting is frequently accompanied by hints of weakness, often merged with claims of strength. This was particularly striking, Adorno wrote, when the agitator begged for monetary contributions. As with the Birther movement or Access Hollywood, Trump's self-debasement – pretending to sell steaks on the campaign trail – forges a bond that secures his idealised status.

Since 8 November 2016, many people have concluded that what they understandably view as a catastrophe was the result of the neglect by neoliberal elites of the white working class, simply put. Inspired by Bernie Sanders, they believe that the Democratic Party has to reorient its politics from the idea that 'a few get rich first' to protection for the least advantaged.

Yet no one who lived through the civil rights and feminist rebellions of recent decades can believe that an economic programme per se is a sufficient basis for a Democratic-led politics.

This holds as well when it comes to trying to reach out to Trump's supporters. Of those providing his roughly 40 per cent approval ratings, half say they 'strongly approve' and are probably lost to the Democrats. But if we understand the personal level at which pro-Trump strivings operate, we may better appeal to the other half, and in that way forestall the coming emergency.

#### [Mar 15, 2019] Patriots Turning To #YangGang In Response To Trump, Conservatism Inc. Failure by James Kirkpatrick

##### Notable quotes:
##### "... Yang promises a universal entitlement, not dependent on income, that he calls a "freedom dividend." To be funded through a value added tax , Yang claims that it would reduce the strain on "health care, incarceration, homeless services, and the like" and actually save billions of dollars. Yang also notes that "current welfare and social program beneficiaries would be given a choice between their current benefits or $1,000 cash unconditionally." ..." ##### "... Yang is justifying the need for such a program because of automation . Again, VDARE.com has been exploring how automation may necessitate such a program for many years . Yang also discussed this problem on Tucker Carlson's show , which alone shows he is more open to real discussion than many progressive activists. ..." ##### "... Indeed, journalists, hall monitors that they are, have recognized that President Trump's online supporters are flocking to Yang, bringing him a powerful weapon in the meme wars. ..." ##### "... it is ominous for Trump that many of the more creative and dedicated people who formed his vanguard are giving up on him. ..." ###### Mar 15, 2019 | www.unz.com The dark horse candidate of the 2020 Democratic primary is entrepreneur Andrew Yang , who just qualified for the first round of debates by attracting over 65,000 unique donors. [ Andrew Yang qualifies for first DNC debate with 65,000 unique donors , by Orion Rummler, Axios, March 12, 2019] Yang is a businessman who has worked in several fields, but was best known for founding Venture for America , which helps college graduates become entrepreneurs. However, he is now gaining recognition for his signature campaign promise --$1,000 a month for every American.

Yang promises a universal entitlement, not dependent on income, that he calls a "freedom dividend." To be funded through a value added tax , Yang claims that it would reduce the strain on "health care, incarceration, homeless services, and the like" and actually save billions of dollars. Yang also notes that "current welfare and social program beneficiaries would be given a choice between their current benefits or $1,000 cash unconditionally." As Yang himself notes, this is not a new idea, nor one particularly tied to the Left. Indeed, it's been proposed by several prominent libertarians because it would replace the far more inefficient welfare system. Charles Murray called for this policy in 2016. [ A guaranteed income for every American , AEI, June 3, 2016] Milton Friedman suggested a similar policy in a 1968 interview with William F. Buckley, though Friedman called it a "negative income tax." He rejected arguments that it would cause indolence. F.A. Hayek also supported such a policy; he essentially took it for granted . [ Friedrich Hayek supported a guaranteed minimum income , by James Kwak, Medium, July 20, 2015] It's also been proposed by many nationalists, including, well, me. At the January 2013 VDARE.com Webinar, I called for a "straight-up minimum income for citizens only" among other policies that would build a new nationalist majority and deconstruct Leftist power. I've retained that belief ever since and argued for it here for years. However, I've also made the argument that it only works if it is for citizens only and is combined with a restrictive immigration policy. As I previously argued in a piece attacking Jacobin's disingenuous complaints about the "reserve army of the unemployed," you simply can't support high wages, workers' rights, and a universal basic income while still demanding mass immigration. Yang is justifying the need for such a program because of automation . Again, VDARE.com has been exploring how automation may necessitate such a program for many years . Yang also discussed this problem on Tucker Carlson's show , which alone shows he is more open to real discussion than many progressive activists. Yang is also directly addressing the crises that the Trump Administration has seemly forgotten. Unlike Donald Trump himself, with his endless boasting about "low black and Hispanic unemployment," Yang has directly spoken about the demographic collapse of white people because of "low birth rates and white men dying from substance abuse and suicide ." Though even the viciously anti-white Dylan Matthews called the tweet "innocuous," there is little doubt if President Trump said it would be called racist. [ Andrew Yang, the 2020 long-shot candidate running on a universal basic income, explained , Vox, March 11, 2019] Significantly, President Trump himself has never once specifically recognized the plight of white Americans. ...He wants to make Puerto Rico a state . He supports a path to citizenship for illegal aliens, albeit with an 18-year waiting period and combined with pledges to secure the border and deport illegals who don't enroll in the citizenship program. He wants to create a massive bureaucratic system to track gun owners, restrict gun ownership , and require various "training" programs for licenses. He wants to subsidize local journalists with taxpayer dollars... ... ... ... Indeed, journalists, hall monitors that they are, have recognized that President Trump's online supporters are flocking to Yang, bringing him a powerful weapon in the meme wars. (Sample meme at right.) And because many of these online activists are "far right" by Main Stream Media standards, or at least Politically Incorrect, there is much hand-waving and wrist-flapping about the need for Yang to decry "white nationalists." So of course, the candidate has dutifully done so, claiming "racism and white nationalism [are] a threat to the core ideals of what it means to be an American". [ Presidential candidate Andrew Yang has a meme problem , by Russell Brandom, The Verge, March 9, 2019] But what does it mean to be an American? As more and more of American history is described as racist, and even national symbols and the national anthem are targets for protest, "America" certainly doesn't seem like a real country with a real identity. Increasingly, "America" resembles a continent-sized shopping mall, with nothing holding together the warring tribes that occupy it except money. President Trump, of course, was elected because many people thought he could reverse this process, especially by limiting mass immigration and taking strong action in the culture wars, for example by promoting official English. Yet in recent weeks, he has repeatedly endorsed more legal immigration. Rather than fighting, the president is content to brag about the economy and whine about unfair press coverage and investigations. He already seems like a lame duck. The worst part of all of this is that President Trump was elected as a response not just to the Left, but to the failed Conservative Establishment. During the 2016 campaign, President Trump specifically pledged to protect entitlements , decried foreign wars, and argued for a massive infrastructure plan. However, once in office, his main legislative accomplishment is a tax cut any other Republican president would have pushed. Similarly, his latest budget contains the kinds of entitlement cuts that are guaranteed to provoke Democrat attack ads. [ Trump said he wouldn't cut Medicaid, Social Security, and Medicare . His 2020 budget cuts all 3 , by Tara Golshan, Vox, March 12, 2019] And the president has already backed down on withdrawing all troops from Syria, never mind Afghanistan. Conservatism Inc., having learned nothing from candidate Donald Trump's scorched-earth path to the Republican nomination, now embraces Trump as a man but ignores his campaign message. Instead, the conservative movement is still promoting the same tired slogans about "free markets" even as they have appear to have lost an entire generation to socialism. The most iconic moment was Charlie Kirk, head of the free market activist group Turning Point USA, desperately trying to tell his followers not to cheer for Tucker Carlson because Carlson had suggested a nation should be treated like a family, not simply a marketplace . President Trump himself is now trying to talk like a fiscal conservative [ Exclusive -- Donald Trump: 'Seductive' Socialism Would Send Country 'Down The Tubes' In a Decade Or Less , by Alexander Marlow, Matt Boyle, Amanda House, and Charlie Spierling, Breitbart, March 11, 2019]. Such a pose is self-discrediting given how the deficit swelled under united Republican control and untold amounts of money are seemingly still available for foreign aid to Israel, regime change in Iran and Venezuela, and feminist programs abroad to make favorite daughter Ivanka Trump feel important. [ Trump budget plans to give$100 million to program for women that Ivanka launched , by Nathalie Baptiste, Mother Jones, March 9, 2019]

Thus, especially because of his cowardice on immigration, many of President Trump's most fervent online supporters have turned on him in recent weeks. And the embrace of Yang seems to come out of a great place of despair, a sense that the country really is beyond saving.

Yang has Leftist policies on many issues, but many disillusioned Trump supporters feel like those policies are coming anyway. If America is just an economy, and if everyone in the world is a simply an American-in-waiting, white Americans might as well get something out of this System before the bones are picked clean.

National Review ' s Theodore Kupfer just claimed the main importance of Yang's candidacy is that it will prove meme-makers ability to affect the vote count "has been overstated" [ Rise of the pink hats , March 12, 2019].

Time will tell, but it is ominous for Trump that many of the more creative and dedicated people who formed his vanguard are giving up on him.

#### [Mar 11, 2019] The university professors, who teach but do not learn: neoliberal shill DeJong tries to prolong the life of neoliberalism in the USA

##### DeJong is more dangerous them Malkin... It poisons students with neoliberalism more effectively.
###### Mar 11, 2019 | www.nakedcapitalism.com

Kurtismayfield , , March 10, 2019 at 10:52 am

Re:Wall Street Democrats

They know, however, that they've been conned, played, and they're absolute fools in the game.

Thank you Mr. Black for the laugh this morning. They know exactly what they have been doing. Whether it was deregulating so that Hedge funds and vulture capitalism can thrive, or making sure us peons cannot discharge debts, or making everything about financalization. This was all done on purpose, without care for "winning the political game". Politics is economics, and the Wall Street Democrats have been winning.

notabanker , , March 10, 2019 at 12:26 pm

For sure. I'm quite concerned at the behavior of the DNC leadership and pundits. They are doubling down on blatant corporatist agendas. They are acting like they have this in the bag when objective evidence says they do not and are in trouble. Assuming they are out of touch is naive to me. I would assume the opposite, they know a whole lot more than what they are letting on.

urblintz , , March 10, 2019 at 12:49 pm

I think the notion that the DNC and the Democrat's ruling class would rather lose to a like-minded Republican corporatist than win with someone who stands for genuine progressive values offering "concrete material benefits." I held my nose and read comments at the kos straw polls (where Sanders consistently wins by a large margin) and it's clear to me that the Clintonista's will do everything in their power to derail Bernie.

polecat , , March 10, 2019 at 1:00 pm

"It's the Externalities, stupid economists !" *should be the new rallying cry ..

Keynes' "animal spirits" and the "tragedy of the commons" (Lloyd, 1833 and Hardin, 1968) both implied that economics was messier than Samuelson and Friedman would have us believe because there are actual people with different short- and long-term interests.

The behavioral folks (Kahnemann, Tversky, Thaler etc.) have all shown that people are even messier than we would have thought. So most macro-economic stuff over the past half-century has been largely BS in justifying trickle-down economics, deregulation etc.

There needs to be some inequality as that provides incentives via capitalism but unfettered it turns into France 1989 or the Great Depression. It is not coincidence that the major experiment in this in the late 90s and early 2000s required massive government intervention to keep the ship from sinking less than a decade after the great unregulated creative forces were unleashed.

MMT is likely to be similar where productive uses of deficits can be beneficial, but if the money is wasted on stupid stuff like unnecessary wars, then the loss of credibility means that the fiat currency won't be quite as fiat anymore. Britain was unbelievably economically powerfully in the late 1800s but in half a century went to being an economic afterthought hamstrung by deficits after two major wars and a depression.

So it is good that people like Brad DeLong are coming to understand that the pretty economic theories have some truths but are utter BS (and dangerous) when extrapolated without accounting for how people and societies actually behave.

Chris Cosmos , , March 10, 2019 at 6:43 pm

I never understood the incentive to make more money -- that only works if money = true value and that is the implication of living in a capitalist society (not economy)–everything then becomes a commodity and alienation results and all the depression, fear, anxiety that I see around me. Whereas human happiness actually comes from helping others and finding meaning in life not money or dominating others. That's what social science seems to be telling us.

Oregoncharles , , March 10, 2019 at 2:46 pm

Quoting DeLong:

" He says we are discredited. Our policies have failed. And they've failed because we've been conned by the Republicans."

That's welcome, but it's still making excuses. Neoliberal policies have failed because the economics were wrong, not because "we've been conned by the Republicans." Furthermore, this may be important – if it isn't acknowledged, those policies are quite likely to come sneaking back, especially if Democrats are more in the ascendant., as they will be, given the seesaw built into the 2-Party.

The Rev Kev , , March 10, 2019 at 7:33 pm

Might be right there. Groups like the neocons were originally attached the the left side of politics but when the winds changed, detached themselves and went over to the Republican right. The winds are changing again so those who want power may be going over to what is called the left now to keep their grip on power. But what you say is quite true. It is not really the policies that failed but the economics themselves that were wrong and which, in an honest debate, does not make sense either.

marku52 , , March 10, 2019 at 3:39 pm

"And they've failed because we've been conned by the Republicans.""

Not at all. What about the "free trade" hokum that DeJong and his pal Krugman have been peddling since forever? History and every empirical test in the modern era shows that it fails in developing countries and only exacerbates inequality in richer ones.

That's just a failed policy.

I'm still waiting for an apology for all those years that those two insulted anyone who questioned their dogma as just "too ignorant to understand."

Glen , , March 10, 2019 at 4:47 pm

Thank you!

He created FAILED policies. He pushed policies which have harmed America, harmed Americans, and destroyed the American dream.

Kevin Carhart , , March 10, 2019 at 4:29 pm

It's intriguing, but two other voices come to mind. One is Never Let a Serious Crisis Go To Waste by Mirowski and the other is Generation Like by Doug Rushkoff.

Neoliberalism is partially entrepreneurial self-conceptions which took a long time to promote. Rushkoff's Frontline shows the Youtube culture. There is a girl with a "leaderboard" on the wall of her suburban room, keeping track of her metrics.

There's a devastating VPRO Backlight film on the same topic. Internet-platform neoliberalism does not have much to do with the GOP.

It's going to be an odd hybrid at best – you could have deep-red communism but enacted for and by people whose self-conception is influenced by decades of Becker and Hayek? One place this question leads is to ask what's the relationship between the set of ideas and material conditions-centric philosophies? If new policies pass that create a different possibility materially, will the vise grip of the entrepreneurial self loosen?

Partially yeah, maybe, a Job Guarantee if it passes and actually works, would be an anti-neoliberal approach to jobs, which might partially loosen the regime of neoliberal advice for job candidates delivered with a smug attitude that There Is No Alternative. (Described by Gershon). We take it seriously because of a sense of dread that it might actually be powerful enough to lock us out if we don't, and an uncertainty of whether it is or not.

There has been deep damage which is now a very broad and resilient base. It is one of the prongs of why 2008 did not have the kind of discrediting effect that 1929 did. At least that's what I took away from _Never Let_.

Brad DeLong handing the baton might mean something but it is not going to ameliorate the sense-of-life that young people get from managing their channels and metrics.

Take the new 1099 platforms as another focal point. Suppose there were political measures that splice in on the platforms and take the edge off materially, such as underwritten healthcare not tied to your job. The platforms still use star ratings, make star ratings seem normal, and continually push a self-conception as a small business. If you have overt DSA plus covert Becker it is, again, a strange hybrid,

Jeremy Grimm , , March 10, 2019 at 5:13 pm

Your comment is very insightful. Neoliberalism embeds its mindset into the very fabric of our culture and self-concepts. It strangely twists many of our core myths and beliefs.

Raulb , , March 10, 2019 at 6:36 pm

This is nothing but a Trojan horse to 'co-opt' and 'subvert'. Neoliberals sense a risk to their neo feudal project and are simply attempting to infiltrate and hollow out any threats from within.

There are the same folks who have let entire economics departments becomes mouthpieces for corporate propaganda and worked with thousands of think tanks and international organizations to mislead, misinform and cause pain to millions of people.

They have seeded decontextualized words like 'wealth creators' and 'job creators' to create a halo narrative for corporate interests and undermine society, citizenship, the social good, the environment that make 'wealth creation' even possible. So all those take a backseat to 'wealth creator' interests. Since you can't create wealth without society this is some achievement.

Its because of them that we live in a world where the most important economic idea is protecting people like Kochs business and personal interests and making sure government is not 'impinging on their freedom'. And the corollary a fundamental anti-human narrative where ordinary people and workers are held in contempt for even expecting living wages and conditions and their access to basics like education, health care and living conditions is hollowed out out to promote privatization and become 'entitlements'.

Neoliberalism has left us with a decontextualized highly unstable world that exists in a collective but is forcefully detached into a context less individual existence. These are not mistakes of otherwise 'well meaning' individuals, there are the results of hard core ideologues and high priests of power.

Two thumbs up. This has been an ongoing agenda for decades and it has succeeded in permeating every aspect of society, which is why the United States is such a vacuous, superficial place. And it's exporting that superficiality to the rest of the world.

VietnamVet , , March 10, 2019 at 7:17 pm

I read Brad DeLong's and Paul Krugman's blogs until their contradictions became too great. If anything, we need more people seeing the truth. The Global War on Terror is into its 18th year. In October the USA will spend approximately $6 trillion and will have accomplish nothing except to create blow back. The Middle Class is disappearing. Those who remain in their homes are head over heels in debt. The average American household carries$137,063 in debt. The wealthy are getting richer.

The Jeff Bezos, Warren Buffett and Bill Gates families together have as much wealth as the lowest half of Americans. Donald Trump's Presidency and Brexit document that neoliberal politicians have lost contact with reality. They are nightmares that there is no escaping. At best, perhaps, Roosevelt Progressives will be reborn to resurrect regulated capitalism and debt forgiveness.

But more likely is a middle-class revolt when Americans no longer can pay for water, electricity, food, medicine and are jailed for not paying a 1,500 fine for littering the Beltway. A civil war inside a nuclear armed nation state is dangerous beyond belief. France is approaching this. #### [Feb 26, 2019] THE CRISIS OF NEOLIBERALISM by Julie A. Wilson ##### Highly recommended! ##### Notable quotes: ##### "... While the Tea Party was critical of status-quo neoliberalism -- especially its cosmopolitanism and embrace of globalization and diversity, which was perfectly embodied by Obama's election and presidency -- it was not exactly anti-neoliberal. Rather, it was anti-left neoliberalism-, it represented a more authoritarian, right [wing] version of neoliberalism. ..." ##### "... Within the context of the 2016 election, Clinton embodied the neoliberal center that could no longer hold. Inequality. Suffering. Collapsing infrastructures. Perpetual war. Anger. Disaffected consent. ..." ##### "... Both Sanders and Trump were embedded in the emerging left and right responses to neoliberalism's crisis. Specifically, Sanders' energetic campaign -- which was undoubtedly enabled by the rise of the Occupy movement -- proposed a decidedly more "commongood" path. Higher wages for working people. Taxes on the rich, specifically the captains of the creditocracy. ..." ##### "... In other words, Trump supporters may not have explicitly voted for neoliberalism, but that's what they got. In fact, as Rottenberg argues, they got a version of right neoliberalism "on steroids" -- a mix of blatant plutocracy and authoritarianism that has many concerned about the rise of U.S. fascism. ..." ##### "... We can't know what would have happened had Sanders run against Trump, but we can think seriously about Trump, right and left neoliberalism, and the crisis of neoliberal hegemony. In other words, we can think about where and how we go from here. As I suggested in the previous chapter, if we want to construct a new world, we are going to have to abandon the entangled politics of both right and left neoliberalism; we have to reject the hegemonic frontiers of both disposability and marketized equality. After all, as political philosopher Nancy Fraser argues, what was rejected in the election of 2016 was progressive, left neoliberalism. ..." ##### "... While the rise of hyper-right neoliberalism is certainly nothing to celebrate, it does present an opportunity for breaking with neoliberal hegemony. We have to proceed, as Gary Younge reminds us, with the realization that people "have not rejected the chance of a better world. They have not yet been offered one."' ..." ###### Oct 08, 2017 | www.amazon.com Quote from the book is courtesy of Amazon preview of the book Neoliberalism (Key Ideas in Media & Cultural Studies) In Chapter 1, we traced the rise of our neoliberal conjuncture back to the crisis of liberalism during the late nineteenth and early twentieth centuries, culminating in the Great Depression. During this period, huge transformations in capitalism proved impossible to manage with classical laissez-faire approaches. Out of this crisis, two movements emerged, both of which would eventually shape the course of the twentieth century and beyond. The first, and the one that became dominant in the aftermath of the crisis, was the conjuncture of embedded liberalism. The crisis indicated that capitalism wrecked too much damage on the lives of ordinary citizens. People (white workers and families, especially) warranted social protection from the volatilities and brutalities of capitalism. The state's public function was expanded to include the provision of a more substantive social safety net, a web of protections for people and a web of constraints on markets. The second response was the invention of neoliberalism. Deeply skeptical of the common-good principles that undergirded the emerging social welfare state, neoliberals began organizing on the ground to develop a "new" liberal govemmentality, one rooted less in laissez-faire principles and more in the generalization of competition and enterprise. They worked to envision a new society premised on a new social ontology, that is, on new truths about the state, the market, and human beings. Crucially, neoliberals also began building infrastructures and institutions for disseminating their new' knowledges and theories (i.e., the Neoliberal Thought Collective), as well as organizing politically to build mass support for new policies (i.e., working to unite anti-communists, Christian conservatives, and free marketers in common cause against the welfare state). When cracks in embedded liberalism began to surface -- which is bound to happen with any moving political equilibrium -- neoliberals were there with new stories and solutions, ready to make the world anew. We are currently living through the crisis of neoliberalism. As I write this book, Donald Trump has recently secured the U.S. presidency, prevailing in the national election over his Democratic opponent Hillary Clinton. Throughout the election, I couldn't help but think back to the crisis of liberalism and the two responses that emerged. Similarly, after the Great Recession of 2008, we've saw two responses emerge to challenge our unworkable status quo, which dispossesses so many people of vital resources for individual and collective life. On the one hand, we witnessed the rise of Occupy Wall Street. While many continue to critique the movement for its lack of leadership and a coherent political vision, Occupy was connected to burgeoning movements across the globe, and our current political horizons have been undoubtedly shaped by the movement's success at repositioning class and economic inequality within our political horizon. On the other hand, we saw' the rise of the Tea Party, a right-wing response to the crisis. While the Tea Party was critical of status-quo neoliberalism -- especially its cosmopolitanism and embrace of globalization and diversity, which was perfectly embodied by Obama's election and presidency -- it was not exactly anti-neoliberal. Rather, it was anti-left neoliberalism-, it represented a more authoritarian, right [wing] version of neoliberalism. Within the context of the 2016 election, Clinton embodied the neoliberal center that could no longer hold. Inequality. Suffering. Collapsing infrastructures. Perpetual war. Anger. Disaffected consent. There were just too many fissures and fault lines in the glossy, cosmopolitan world of left neoliberalism and marketized equality. Indeed, while Clinton ran on status-quo stories of good governance and neoliberal feminism, confident that demographics and diversity would be enough to win the election, Trump effectively tapped into the unfolding conjunctural crisis by exacerbating the cracks in the system of marketized equality, channeling political anger into his celebrity brand that had been built on saying "f*** you" to the culture of left neoliberalism (corporate diversity, political correctness, etc.) In fact, much like Clinton's challenger in the Democratic primary, Benie Sanders, Trump was a crisis candidate. Both Sanders and Trump were embedded in the emerging left and right responses to neoliberalism's crisis. Specifically, Sanders' energetic campaign -- which was undoubtedly enabled by the rise of the Occupy movement -- proposed a decidedly more "commongood" path. Higher wages for working people. Taxes on the rich, specifically the captains of the creditocracy. Universal health care. Free higher education. Fair trade. The repeal of Citizens United. Trump offered a different response to the crisis. Like Sanders, he railed against global trade deals like NAFTA and the Trans-Pacific Partnership (TPP). However, Trump's victory was fueled by right neoliberalism's culture of cruelty. While Sanders tapped into and mobilized desires for a more egalitarian and democratic future, Trump's promise was nostalgic, making America "great again" -- putting the nation back on "top of the world," and implying a time when women were "in their place" as male property, and minorities and immigrants were controlled by the state. Thus, what distinguished Trump's campaign from more traditional Republican campaigns was that it actively and explicitly pitted one group's equality (white men) against everyone else's (immigrants, women, Muslims, minorities, etc.). As Catherine Rottenberg suggests, Trump offered voters a choice between a multiracial society (where folks are increasingly disadvantaged and dispossessed) and white supremacy (where white people would be back on top). However, "[w]hat he neglected to state," Rottenberg writes, is that neoliberalism flourishes in societies where the playing field is already stacked against various segments of society, and that it needs only a relatively small select group of capital-enhancing subjects, while everyone else is ultimately dispensable. 1 In other words, Trump supporters may not have explicitly voted for neoliberalism, but that's what they got. In fact, as Rottenberg argues, they got a version of right neoliberalism "on steroids" -- a mix of blatant plutocracy and authoritarianism that has many concerned about the rise of U.S. fascism. We can't know what would have happened had Sanders run against Trump, but we can think seriously about Trump, right and left neoliberalism, and the crisis of neoliberal hegemony. In other words, we can think about where and how we go from here. As I suggested in the previous chapter, if we want to construct a new world, we are going to have to abandon the entangled politics of both right and left neoliberalism; we have to reject the hegemonic frontiers of both disposability and marketized equality. After all, as political philosopher Nancy Fraser argues, what was rejected in the election of 2016 was progressive, left neoliberalism. While the rise of hyper-right neoliberalism is certainly nothing to celebrate, it does present an opportunity for breaking with neoliberal hegemony. We have to proceed, as Gary Younge reminds us, with the realization that people "have not rejected the chance of a better world. They have not yet been offered one."' Mark Fisher, the author of Capitalist Realism, put it this way: The long, dark night of the end of history has to be grasped as an enormous opportunity. The very oppressive pervasiveness of capitalist realism means that even glimmers of alternative political and economic possibilities can have a disproportionately great effect. The tiniest event can tear a hole in the grey curtain of reaction which has marked the horizons of possibility under capitalist realism. From a situation in which nothing can happen, suddenly anything is possible again.4 I think that, for the first time in the history of U.S. capitalism, the vast majority of people might sense the lie of liberal, capitalist democracy. They feel anxious, unfree, disaffected. Fantasies of the good life have been shattered beyond repair for most people. Trump and this hopefully brief triumph of right neoliberalism will soon lay this bare for everyone to see. Now, with Trump, it is absolutely clear: the rich rule the world; we are all disposable; this is no democracy. The question becomes: How will we show up for history? Will there be new stories, ideas, visions, and fantasies to attach to? How can we productively and meaningful intervene in the crisis of neoliberalism? How can we "tear a hole in the grey curtain" and open up better worlds? How can we put what we've learned to use and begin to imagine and build a world beyond living in competition? I hope our critical journey through the neoliberal conjuncture has enabled you to begin to answer these questions. More specifically, in recent decades, especially since the end of the Cold War, our common-good sensibilities have been channeled into neoliberal platforms for social change and privatized action, funneling our political energies into brand culture and marketized struggles for equality (e.g., charter schools, NGOs and non-profits, neoliberal antiracism and feminism). As a result, despite our collective anger and disaffected consent, we find ourselves stuck in capitalist realism with no real alternative. Like the neoliberal care of the self, we are trapped in a privatized mode of politics that relies on cruel optimism; we are attached, it seems, to politics that inspire and motivate us to action, while keeping us living in competition. To disrupt the game, we need to construct common political horizons against neoliberal hegemony. We need to use our common stories and common reason to build common movements against precarity -- for within neoliberalism, precarity is what ultimately has the potential to thread all of our lives together. Put differently, the ultimate fault line in the neoliberal conjiuicture is the way it subjects us all to precarity and the biopolitics of disposability, thereby creating conditions of possibility for new coalitions across race, gender, citizenship, sexuality, and class. Recognizing this potential for coalition in the face of precarization is the most pressing task facing those who are yearning for a new world. The question is: How do we get there? How do we realize these coalitional potentialities and materialize common horizons? HOW WE GET THERE Ultimately, mapping the neoliberal conjuncture through everyday life in enterprise culture has not only provided some direction in terms of what we need; it has also cultivated concrete and practical intellectual resources for political interv ention and social interconnection -- a critical toolbox for living in common. More specifically, this book has sought to provide resources for thinking and acting against the four Ds: resources for engaging in counter-conduct, modes of living that refuse, on one hand, to conduct one's life according to the norm of enterprise, and on the other, to relate to others through the norm of competition. Indeed, we need new ways of relating, interacting, and living as friends, lovers, workers, vulnerable bodies, and democratic people if we are to write new stories, invent new govemmentalities, and build coalitions for new worlds. Against Disimagination: Educated Hope and Affirmative Speculation We need to stop turning inward, retreating into ourselves, and taking personal responsibility for our lives (a task which is ultimately impossible). Enough with the disimagination machine! Let's start looking outward, not inward -- to the broader structures that undergird our lives. Of course, we need to take care of ourselves; we must survive. But I firmly believe that we can do this in ways both big and small, that transform neoliberal culture and its status-quo stories. Here's the thing I tell my students all the time. You cannot escape neoliberalism. It is the air we breathe, the water in which we swim. No job, practice of social activism, program of self-care, or relationship will be totally free from neoliberal impingements and logics. There is no pure "outside" to get to or work from -- that's just the nature of the neoliberalism's totalizing cultural power. But let's not forget that neoliberalism's totalizing cultural power is also a source of weakness. Potential for resistance is everywhere, scattered throughout our everyday lives in enterprise culture. Our critical toolbox can help us identify these potentialities and navigate and engage our conjuncture in ways that tear open up those new worlds we desire. In other words, our critical perspective can help us move through the world with what Henry Giroux calls educated hope. Educated hope means holding in tension the material realities of power and the contingency of history. This orientation of educated hope knows very well what we're up against. However, in the face of seemingly totalizing power, it also knows that neoliberalism can never become total because the future is open. Educated hope is what allows us to see the fault lines, fissures, and potentialities of the present and emboldens us to think and work from that sliver of social space where we do have political agency and freedom to construct a new world. Educated hope is what undoes the power of capitalist realism. It enables affirmative speculation (such as discussed in Chapter 5), which does not try to hold the future to neoliberal horizons (that's cruel optimism!), but instead to affirm our commonalities and the potentialities for the new worlds they signal. Affirmative speculation demands a different sort of risk calculation and management. It senses how little we have to lose and how much we have to gain from knocking the hustle of our lives. Against De-democratization: Organizing and Collective Coverning We can think of educated hope and affirmative speculation as practices of what Wendy Brown calls "bare democracy" -- the basic idea that ordinary' people like you and me should govern our lives in common, that we should critique and try to change our world, especially the exploitative and oppressive structures of power that maintain social hierarchies and diminish lives. Neoliberal culture works to stomp out capacities for bare democracy by transforming democratic desires and feelings into meritocratic desires and feelings. In neoliberal culture, utopian sensibilities are directed away from the promise of collective utopian sensibilities are directed away from the promise of collective governing to competing for equality. We have to get back that democractic feeling! As Jeremy Gilbert taught us, disaffected consent is a post-democratic orientation. We don't like our world, but we don't think we can do anything about it. So, how do we get back that democratic feeling? How do we transform our disaffected consent into something new? As I suggested in the last chapter, we organize. Organizing is simply about people coming together around a common horizon and working collectively to materialize it. In this way, organizing is based on the idea of radical democracy, not liberal democracy. While the latter is based on formal and abstract rights guaranteed by the state, radical democracy insists that people should directly make the decisions that impact their lives, security, and well-being. Radical democracy is a practice of collective governing: it is about us hashing out, together in communities, what matters, and working in common to build a world based on these new sensibilities. The work of organizing is messy, often unsatisfying, and sometimes even scary. Organizing based on affirmative speculation and coalition-building, furthermore, will have to be experimental and uncertain. As Lauren Berlant suggests, it means "embracing the discomfort of affective experience in a truly open social life that no one has ever experienced." Organizing through and for the common "requires more adaptable infrastructures. Keep forcing the existing infrastructures to do what they don't know how to do. Make new ways to be local together, where local doesn't require a physical neighborhood." 5 What Berlant is saying is that the work of bare democracy requires unlearning, and detaching from, our current stories and infrastructures in order to see and make things work differently. Organizing for a new world is not easy -- and there are no guarantees -- but it is the only way out of capitalist realism. Against Disposability: Radical Equality Getting back democratic feeling will at once require and help us lo move beyond the biopolitics of disposability and entrenched systems of inequality. On one hand, organizing will never be enough if it is not animated by bare democracy, a sensibility that each of us is equally important when it comes to the project of determining our lives in common. Our bodies, our hurts, our dreams, and our desires matter regardless of our race, gender, sexuality, or citizenship, and regardless of how r much capital (economic, social, or cultural) we have. Simply put, in a radical democracy, no one is disposable. This bare-democratic sense of equality must be foundational to organizing and coalition-building. Otherwise, we will always and inevitably fall back into a world of inequality. On the other hand, organizing and collective governing will deepen and enhance our sensibilities and capacities for radical equality. In this context, the kind of self-enclosed individualism that empowers and underwrites the biopolitics of disposability melts away, as we realize the interconnectedness of our lives and just how amazing it feels to fail, we affirm our capacities for freedom, political intervention, social interconnection, and collective social doing. Against Dispossession: Shared Security and Common Wealth Thinking and acting against the biopolitics of disposability goes hand-in-hand with thinking and acting against dispossession. Ultimately, when we really understand and feel ourselves in relationships of interconnection with others, we want for them as we want for ourselves. Our lives and sensibilities of what is good and just are rooted in radical equality, not possessive or self-appreciating individualism. Because we desire social security and protection, we also know others desire and deserve the same. However, to really think and act against dispossession means not only advocating for shared security and social protection, but also for a new society that is built on the egalitarian production and distribution of social wealth that we all produce. In this sense, we can take Marx's critique of capitalism -- that wealth is produced collectively but appropriated individually -- to heart. Capitalism was built on the idea that one class -- the owners of the means of production -- could exploit and profit from the collective labors of everyone else (those who do not own and thus have to work), albeit in very different ways depending on race, gender, or citizenship. This meant that, for workers of all stripes, their lives existed not for themselves, but for others (the appropriating class), and that regardless of what we own as consumers, we are not really free or equal in that bare-democratic sense of the word. If we want to be really free, we need to construct new material and affective social infrastructures for our common wealth. In these new infrastructures, wealth must not be reduced to economic value; it must be rooted in social value. Here, the production of wealth does not exist as a separate sphere from the reproduction of our lives. In other words, new infrastructures, based on the idea of common wealth, will not be set up to exploit our labor, dispossess our communities, or to divide our lives. Rather, they will work to provide collective social resources and care so that we may all be free to pursue happiness, create beautiful and/or useful things, and to realize our potential within a social world of living in common. Crucially, to create the conditions for these new, democratic forms of freedom rooted in radical equality, we need to find ways to refuse and exit the financial networks of Empire and the dispossessions of creditocracy, building new systems that invite everyone to participate in the ongoing production of new worlds and the sharing of the wealth that we produce in common. It's not up to me to tell you exactly where to look, but I assure you that potentialities for these new worlds are everywhere around you. #### [Feb 12, 2019] Older Workers Need a Different Kind of Layoff A 60-year-old whose position is eliminated might be unable to find another job, but could retire if allowed early access to Medicare ##### Highly recommended! ##### This is a constructive suggestion that is implementable even under neoliberalism. As everything is perverted under neoliberalism that might prompt layoffs before the age of 55. ##### Notable quotes: ##### "... Older workers often struggle to get rehired as easily as younger workers. Age discrimination is a well-known problem in corporate America. What's a 60-year-old back office worker supposed to do if downsized in a merger? The BB&T-SunTrust prospect highlights the need for a new type of unemployment insurance for some of the workforce. ..." ##### "... One policy might be treating unemployed older workers differently than younger workers. Giving them unemployment benefits for a longer period of time than younger workers would be one idea, as well as accelerating the age of Medicare eligibility for downsized employees over the age of 55. The latter idea would help younger workers as well, by encouraging older workers to accept buyout packages -- freeing up career opportunities for younger workers. ..." ###### Feb 12, 2019 | www.bloomberg.com The proposed merger between SunTrust and BB&T makes sense for both firms -- which is why Wall Street sent both stocks higher on Thursday after the announcement. But employees of the two banks, especially older workers who are not yet retirement age, are understandably less enthused at the prospect of downsizing. In a nation with almost 37 million workers over the age of 55, the quandary of SunTrust-BB&T workforce will become increasingly familiar across the U.S. economy. But what's good for the firms isn't good for all of the workers. Older workers often struggle to get rehired as easily as younger workers. Age discrimination is a well-known problem in corporate America. What's a 60-year-old back office worker supposed to do if downsized in a merger? The BB&T-SunTrust prospect highlights the need for a new type of unemployment insurance for some of the workforce. One policy might be treating unemployed older workers differently than younger workers. Giving them unemployment benefits for a longer period of time than younger workers would be one idea, as well as accelerating the age of Medicare eligibility for downsized employees over the age of 55. The latter idea would help younger workers as well, by encouraging older workers to accept buyout packages -- freeing up career opportunities for younger workers. The economy can be callous toward older workers, but policy makers don't have to be. We should think about ways of dealing with this shift in the labor market before it happens. #### [Feb 11, 2019] The current diploma mills are the result of the consecutive waves of university reforms since the 1990s to ground knowledge production on market principles. If university employees behave like ruthless rent-seekers, it is because they are forced to do so by the incentive structures that have been imposed on them by Johan Söderberg ##### Highly recommended! ##### IMHO there is no economics, only "political economy" and mathiness and "cult of measurement" especially with all those some fuzzy metrics currently in use, are just a part of the ideological smokescreen over "naked neoliberalism." Like shaman dances around the fire. Impressive and useless simultaneously. ##### In other words, many current practitioners of neoliberal economic theories (including but not limited to neoclassical economics) are practicing pseudoscience and are, directly or indirectly, bought and paid by financial oligarchy. That does not exclude possibility of some, occasional, useful insight. ##### Notable quotes: ##### "... The counterargument that I will elaborate here, is that neoliberalism and social democracy should be treated as two distinct and internally consistent thought and value systems. The integrity of the two ideologies must neither be reduced to practices/policies, which occasionally may overlap, nor to individual representatives, who, over the course of a lifetime, can move from one pole to the other. ..." ##### "... Robbins Report ..." ##### "... Underpinning this analysis is a bleak diagnosis of what purpose the university system and its employees serve. It is a diagnosis that Fuller, by his own admission, has gleaned from the Virginia-style neoliberal Gordon Tullock. ..." ##### "... The task assigned to the university, i.e. to certify bodies of trustworthy knowledge, is not called for by any intrinsic property of that knowledge (it being true, safe etc.), but is rather a form of rent-seeking. The rent is extracted from the university's state-induced monopoly over the access rights to future employment opportunities. Rent-seeking is the raison-d'être of the university's claim to be the royal road to knowledge. ..." ##### "... Granted, the cynical reading of the university system as a rent-seeking diploma-mill has a ring of truth to it when we, for instance, think of how students are asked to pay higher and higher tuition fees, while the curriculum is successively being hollowed-out. ..." ##### "... this is the result of the consecutive waves of university reforms since the 1990s to ground knowledge production on market principles. If university employees behave like self-interested rent-seekers, it is because they are forced to do so by the incentive structures that have been imposed on them. ..." ##### "... Thirty years of neoliberal politics have created the conditions under which categories such as "human capital" and "rent-seeking" start to make good sense... ..." ###### Feb 11, 2019 | lse.ac.uk From: A response to Steve Fuller The differences between social democracy and neoliberalism by Johan Söderberg ... ... ... The counterargument that I will elaborate here, is that neoliberalism and social democracy should be treated as two distinct and internally consistent thought and value systems. The integrity of the two ideologies must neither be reduced to practices/policies, which occasionally may overlap, nor to individual representatives, who, over the course of a lifetime, can move from one pole to the other. Neoliberalism and the university system Fuller's argument pivots on the mixed legacy of Lionel Robbins. On the one hand, Robbins' credentials as a neoliberal are firmly established by his decision to recruit Friedrich Hayek to the LSE. On the other hand, Robbins authored the government report whereby many regional universities in the UK were founded, in keeping with a classic social democratic agenda of enrolling more students from the working class. This encourages Fuller to draw an arc from the 1963 Robbins Report to university reforms of a more recent date (and with a more distinct, neoliberal flavour). The common denominator of all the reforms, Fuller says, is the ambition to enhance human capital. Alas, the enhancement of human capital is blocked on all sides by incumbent traditions and rent-seeking monopolies. From this problem description – which Fuller attributes to the neoliberals, but which is also his own – follows the solution: to increase the competition between knowledge providers. Just as the monopoly that Oxbridge held over higher education was offset by the creation of regional universities in the 1960s, so is the current university system's monopoly over knowledge acquisition sidelined by reforms to multiply and diversify the paths to learning. Underpinning this analysis is a bleak diagnosis of what purpose the university system and its employees serve. It is a diagnosis that Fuller, by his own admission, has gleaned from the Virginia-style neoliberal Gordon Tullock. The task assigned to the university, i.e. to certify bodies of trustworthy knowledge, is not called for by any intrinsic property of that knowledge (it being true, safe etc.), but is rather a form of rent-seeking. The rent is extracted from the university's state-induced monopoly over the access rights to future employment opportunities. Rent-seeking is the raison-d'être of the university's claim to be the royal road to knowledge. In this acid bath of cynicism, the notions of truth and falsehood are dissolved into the basic element that Tullock's world is made up of – self-interest. This reasoning lines up with a 19 th century, free market epistemology, according to which the evolutionary process will sift out the propositions that swim from those that sink. With a theory of knowledge like that, university-certified experts have no rationale for being. Their knowledge claims are just so many excuses for lifting a salary on the taxpayers' expense. It bears to stress that this argument can easily be given a leftist spin, by emphasising the pluralism of this epistemology. This resonates with statements that Steve Fuller has made elsewhere , concerning the claimants of alternative facts. Granted, the cynical reading of the university system as a rent-seeking diploma-mill has a ring of truth to it when we, for instance, think of how students are asked to pay higher and higher tuition fees, while the curriculum is successively being hollowed-out. However, as was pointed out to Fuller by many in the audience in Lancaster, this is the result of the consecutive waves of university reforms since the 1990s to ground knowledge production on market principles. If university employees behave like self-interested rent-seekers, it is because they are forced to do so by the incentive structures that have been imposed on them. Thirty years of neoliberal politics have created the conditions under which categories such as "human capital" and "rent-seeking" start to make good sense... ... ... ... The author would like to thank Adam Netzén, Karolina Enquist Källgren and Eric Deibel for feedback given on early drafts of this blog post, and especially Steve Fuller, for having invited a response to his argument. #### [Jan 29, 2019] The Language of Neoliberal Education by Henry Giroux ##### Highly recommended! ##### Interview by MITJA SARDOČ ##### Notable quotes: ##### "... This interview with Henry Giroux was conducted by Mitja Sardoč, of the Educational Research Institute, in the Faculty of the Social Sciences, at University of Ljubljana, Slovenia. ..." ##### "... Not only does it define itself as a political and economic system whose aim was to consolidate power in the hands of a corporate and financial elite, it also wages a war over ideas. In this instance, it has defined itself as a form of commonsense and functions as a mode of public pedagogy that produces a template for structuring not just markets but all of social life. ..." ##### "... In this sense, it has and continues to function not only through public and higher education to produce and distribute market-based values, identities, and modes of agency, but also in wider cultural apparatuses and platforms to privatize, deregulate, economize, and subject all of the commanding institutions and relations of everyday life to the dictates of privatization, efficiency, deregulation, and commodification. ..." ##### "... Since the 1970s as more and more of the commanding institutions of society come under the control of neoliberal ideology, its notions of common sense – an unchecked individualism, harsh competition, an aggressive attack on the welfare state, the evisceration of public goods, and its attack on all models of sociality at odds with market values – have become the reigning hegemony of capitalist societies. ..." ##### "... What many on the left have failed to realize is that neoliberalism is about more than economic structures, it is also is a powerful pedagogical force – especially in the era of social media – that engages in full-spectrum dominance at every level of civil society. ..." ##### "... Neoliberalism's promotion of effectiveness and efficiency gives credence to its ability to willingness and success in making education central to politics ..." ##### "... The Crisis of Democracy, ..." ##### "... At the core of the neoliberal investment in education is a desire to undermine the university's commitment to the truth, critical thinking, and its obligation to stand for justice ..." ##### "... Neoliberalism considers such a space to be dangerous and they have done everything possible to eliminate higher education as a space where students can realize themselves as critical citizens ..." ##### "... It is waging a war over not just the relationship between economic structures but over memory, words, meaning, and politics. Neoliberalism takes words like freedom and limits it to the freedom to consume, spew out hate, and celebrate notions of self-interest and a rabid individualism as the new common sense. ..." ##### "... Equality of opportunity means engaging in ruthless forms of competition, a war of all against all ethos, and a survival of the fittest mode of behavior. ..." ##### "... First, higher education needs to reassert its mission as a public good in order to reclaim its egalitarian and democratic impulses. Educators need to initiate and expand a national conversation in which higher education can be defended as a democratic public sphere and the classroom as a site of deliberative inquiry, dialogue, and critical thinking, a site that makes a claim on the radical imagination and a sense of civic courage. ..." ##### "... The ascendancy of neoliberalism in American politics has made visible a plague of deep-seated civic illiteracy, a corrupt political system and a contempt for reason that has been decades in the making. ..." ##### "... It also points to the withering of civic attachments, the undoing of civic culture, the decline of public life and the erosion of any sense of shared citizenship. As market mentalities and moralities tighten their grip on all aspects of society, democratic institutions and public spheres are being downsized, if not altogether disappearing. ..." ##### "... First, too little is said about how neoliberalism functions not simply as an economic model for finance capital but as a public pedagogy that operates through a diverse number of sites and platforms. ..." ##### "... I define neoliberal fascism as both a project and a movement, which functions as an enabling force that weakens, if not destroys, the commanding institutions of a democracy while undermining its most valuable principles ..." ##### "... As a movement, it produces and legitimates massive economic inequality and suffering, privatizes public goods, dismantles essential government agencies, and individualizes all social problems. In addition, it transforms the political state into the corporate state, and uses the tools of surveillance, militarization, and law and order to discredit the critical press and media, undermine civil liberties while ridiculing and censoring critics. ..." ###### Dec 25, 2018 | www.counterpunch.org This interview with Henry Giroux was conducted by Mitja Sardoč, of the Educational Research Institute, in the Faculty of the Social Sciences, at University of Ljubljana, Slovenia. Mitja Sardoč: For several decades now, neoliberalism has been at the forefront of discussions not only in the economy and finance but has infiltrated our vocabulary in a number of areas as diverse as governance studies, criminology, health care, jurisprudence, education etc. What has triggered the use and application ofthis'economistic'ideologyassociatedwith the promotion of effectiveness and efficiency? Henry Giroux: Neoliberalism has become the dominant ideology of the times and has established itself as a central feature of politics. Not only does it define itself as a political and economic system whose aim was to consolidate power in the hands of a corporate and financial elite, it also wages a war over ideas. In this instance, it has defined itself as a form of commonsense and functions as a mode of public pedagogy that produces a template for structuring not just markets but all of social life. In this sense, it has and continues to function not only through public and higher education to produce and distribute market-based values, identities, and modes of agency, but also in wider cultural apparatuses and platforms to privatize, deregulate, economize, and subject all of the commanding institutions and relations of everyday life to the dictates of privatization, efficiency, deregulation, and commodification. Since the 1970s as more and more of the commanding institutions of society come under the control of neoliberal ideology, its notions of common sense – an unchecked individualism, harsh competition, an aggressive attack on the welfare state, the evisceration of public goods, and its attack on all models of sociality at odds with market values – have become the reigning hegemony of capitalist societies. What many on the left have failed to realize is that neoliberalism is about more than economic structures, it is also is a powerful pedagogical force – especially in the era of social media – that engages in full-spectrum dominance at every level of civil society. Its reach extends not only into education but also among an array of digital platforms as well as in the broader sphere of popular culture. Under neoliberal modes of governance, regardless of the institution, every social relation is reduced to an act of commerce. Neoliberalism's promotion of effectiveness and efficiency gives credence to its ability to willingness and success in making education central to politics. It also offers a warning to progressives, as Pierre Bourdieu has insisted that the left has underestimated the symbolic and pedagogical dimensions of struggle and have not always forged appropriate weapons to fight on this front." Mitja Sardoč: According to the advocates of neoliberalism, education represents one of the main indicators of future economic growth and individual well-being.How – and why – education became one of the central elements of the 'neoliberal revolution'? Henry Giroux: Advocates of neoliberalism have always recognized that education is a site of struggle over which there are very high stakes regarding how young people are educated, who is to be educated, and what vision of the present and future should be most valued and privileged. Higher education in the sixties went through a revolutionary period in the United States and many other countries as students sought to both redefine education as a democratic public sphere and to open it up to a variety of groups that up to that up to that point had been excluded. Conservatives were extremely frightened over this shift and did everything they could to counter it. Evidence of this is clear in the production of the Powell Memo published in 1971 and later in The Trilateral Commission's book-length report, namely, The Crisis of Democracy, published in 1975. From the 1960s on the, conservatives, especially the neoliberal right, has waged a war on education in order to rid it of its potential role as a democratic public sphere. At the same time, they sought aggressively to restructure its modes of governance, undercut the power of faculty, privilege knowledge that was instrumental to the market, define students mainly as clients and consumers, and reduce the function of higher education largely to training students for the global workforce. At the core of the neoliberal investment in education is a desire to undermine the university's commitment to the truth, critical thinking, and its obligation to stand for justice and assume responsibility for safeguarding the interests of young as they enter a world marked massive inequalities, exclusion, and violence at home and abroad. Higher education may be one of the few institutions left in neoliberal societies that offers a protective space to question, challenge, and think against the grain. Neoliberalism considers such a space to be dangerous and they have done everything possible to eliminate higher education as a space where students can realize themselves as critical citizens, faculty can participate in the governing structure, and education can be define itself as a right rather than as a privilege. Mitja Sardoč: Almost by definition, reforms and other initiatives aimed to improve educational practice have been one of the pivotal mechanisms to infiltrate the neoliberal agenda of effectiveness and efficiency. What aspect of neoliberalism and its educational agenda you find most problematic? Why? Henry Giroux: Increasingly aligned with market forces, higher education is mostly primed for teaching business principles and corporate values, while university administrators are prized as CEOs or bureaucrats in a neoliberal-based audit culture. Many colleges and universities have been McDonalds-ized as knowledge is increasingly viewed as a commodity resulting in curricula that resemble a fast-food menu. In addition, faculty are subjected increasingly to a Wal-Mart model of labor relations designed as Noam Chomsky points out "to reduce labor costs and to increase labor servility". In the age of precarity and flexibility, the majority of faculty have been reduced to part-time positions, subjected to low wages, lost control over the conditions of their labor, suffered reduced benefits, and frightened about addressing social issues critically in their classrooms for fear of losing their jobs. The latter may be the central issue curbing free speech and academic freedom in the academy. Moreover, many of these faculty are barely able to make ends meet because of their impoverished salaries, and some are on food stamps. If faculty are treated like service workers, students fare no better and are now relegated to the status of customers and clients. Moreover, they are not only inundated with the competitive, privatized, and market-driven values of neoliberalism, they are also punished by those values in the form of exorbitant tuition rates, astronomical debts owed to banks and other financial institutions, and in too many cases a lack of meaningful employment. As a project and movement, neoliberalism undermines the ability of educators and others to create the conditions that give students the opportunity to acquire the knowledge and the civic courage necessary to make desolation and cynicism unconvincing and hope practical. As an ideology, neoliberalism is at odds with any viable notion of democracy which it sees as the enemy of the market. Yet, Democracy cannot work if citizens are not autonomous, self-judging, curious, reflective, and independent – qualities that are indispensable for students if they are going to make vital judgments and choices about participating in and shaping decisions that affect everyday life, institutional reform, and governmental policy. Mitja Sardoč: Why large-scale assessments and quantitative data in general are a central part of the 'neo-liberal toolkit' in educational research? Henry Giroux: These are the tools of accountants and have nothing to do with larger visions or questions about what matters as part of a university education. The overreliance on metrics and measurement has become a tool used to remove questions of responsibility, morality, and justice from the language and policies of education. I believe the neoliberal toolkit as you put it is part of the discourse of civic illiteracy that now runs rampant in higher educational research, a kind of mind-numbing investment in a metric-based culture that kills the imagination and wages an assault on what it means to be critical, thoughtful, daring, and willing to take risks. Metrics in the service of an audit culture has become the new face of a culture of positivism, a kind of empirical-based panopticon that turns ideas into numbers and the creative impulse into ashes. Large scale assessments and quantitative data are the driving mechanisms in which everything is absorbed into the culture of business. The distinction between information and knowledge has become irrelevant in this model and anything that cannot be captured by numbers is treated with disdain. In this new audit panopticon, the only knowledge that matters is that which can be measured. What is missed here, of course, is that measurable utility is a curse as a universal principle because it ignores any form of knowledge based on the assumption that individuals need to know more than how things work or what their practical utility might be. This is a language that cannot answer the question of what the responsibility of the university and educators might be in a time of tyranny, in the face of the unspeakable, and the current widespread attack on immigrants, Muslims, and others considered disposable. This is a language that is both afraid and unwilling to imagine what alternative worlds inspired by the search for equality and justice might be possible in an age beset by the increasing dark forces of authoritarianism. Mitja Sardoč: While the analysis of the neoliberal agenda in education is well documented, the analysis of the language of neoliberal education is at the fringes of scholarly interest. In particular, the expansion of the neoliberal vocabulary with egalitarian ideas such as fairness, justice, equality of opportunity, well-being etc. has received [at best]only limited attention. What factors have contributed to this shift of emphasis? Henry Giroux: Neoliberalism has upended how language is used in both education and the wider society. It works to appropriate discourses associated with liberal democracy that have become normalized in order to both limit their meanings and use them to mean the opposite of what they have meant traditionally, especially with respect to human rights, justice, informed judgment, critical agency, and democracy itself. It is waging a war over not just the relationship between economic structures but over memory, words, meaning, and politics. Neoliberalism takes words like freedom and limits it to the freedom to consume, spew out hate, and celebrate notions of self-interest and a rabid individualism as the new common sense. Equality of opportunity means engaging in ruthless forms of competition, a war of all against all ethos, and a survival of the fittest mode of behavior. The vocabulary of neoliberalism operates in the service of violence in that it reduces the capacity for human fulfillment in the collective sense, diminishes a broad understanding of freedom as fundamental to expanding the capacity for human agency, and diminishes the ethical imagination by reducing it to the interest of the market and the accumulation of capital. Words, memory, language and meaning are weaponized under neoliberalism. Certainly, neither the media nor progressives have given enough attention to how neoliberalism colonizes language because neither group has given enough attention to viewing the crisis of neoliberalism as not only an economic crisis but also a crisis of ideas. Education is not viewed as a force central to politics and as such the intersection of language, power, and politics in the neoliberal paradigm has been largely ignored. Moreover, at a time when civic culture is being eradicated, public spheres are vanishing, and notions of shared citizenship appear obsolete, words that speak to the truth, reveal injustices and provide informed critical analysis also begin to disappear. This makes it all the more difficult to engage critically the use of neoliberalism's colonization of language. In the United States, Trump prodigious tweets signify not only a time in which governments engage in the pathology of endless fabrications, but also how they function to reinforce a pedagogy of infantilism designed to animate his base in a glut of shock while reinforcing a culture of war, fear, divisiveness, and greed in ways that disempower his critics. Mitja Sardoč: You have written extensively on neoliberalism's exclusively instrumental view of education, its reductionist understanding of effectiveness and its distorted image of fairness. In what way should radical pedagogy fight back neoliberalism and its educational agenda? Henry Giroux: First, higher education needs to reassert its mission as a public good in order to reclaim its egalitarian and democratic impulses. Educators need to initiate and expand a national conversation in which higher education can be defended as a democratic public sphere and the classroom as a site of deliberative inquiry, dialogue, and critical thinking, a site that makes a claim on the radical imagination and a sense of civic courage. At the same time, the discourse on defining higher education as a democratic public sphere can provide the platform for a more expressive commitment in developing a social movement in defense of public goods and against neoliberalism as a threat to democracy. This also means rethinking how education can be funded as a public good and what it might mean to fight for policies that both stop the defunding of education and fight to relocate funds from the death dealing military and incarceration budgets to those supporting education at all levels of society. The challenge here is for higher education not to abandon its commitment to democracy and to recognize that neoliberalism operates in the service of the forces of economic domination and ideological repression. Second, educators need to acknowledge and make good on the claim that a critically literate citizen is indispensable to a democracy, especially at a time when higher education is being privatized and subject to neoliberal restructuring efforts. This suggests placing ethics, civic literacy, social responsibility, and compassion at the forefront of learning so as to combine knowledge, teaching, and research with the rudiments of what might be called the grammar of an ethical and social imagination. This would imply taking seriously those values, traditions, histories, and pedagogies that would promote a sense of dignity, self-reflection, and compassion at the heart of a real democracy. Third, higher education needs to be viewed as a right, as it is in many countries such as Germany, France, Norway, Finland, and Brazil, rather than a privilege for a limited few, as it is in the United States, Canada, and the United Kingdom. Fourth, in a world driven by data, metrics, and the replacement of knowledge by the overabundance of information, educators need to enable students to engage in multiple literacies extending from print and visual culture to digital culture. They need to become border crossers who can think dialectically, and learn not only how to consume culture but also to produce it. Fifth, faculty must reclaim their right to control over the nature of their labor, shape policies of governance, and be given tenure track lines with the guarantee of secure employment and protection for academic freedom and free speech. Mitja Sardoč: Why is it important to analyze the relationship between neoliberalism and civic literacy particularly as an educational project? Henry Giroux: The ascendancy of neoliberalism in American politics has made visible a plague of deep-seated civic illiteracy, a corrupt political system and a contempt for reason that has been decades in the making. It also points to the withering of civic attachments, the undoing of civic culture, the decline of public life and the erosion of any sense of shared citizenship. As market mentalities and moralities tighten their grip on all aspects of society, democratic institutions and public spheres are being downsized, if not altogether disappearing. As these institutions vanish – from public schools and alternative media to health care centers– there is also a serious erosion of the discourse of community, justice, equality, public values, and the common good. At the same time reason and truth are not simply contested, or the subject of informed arguments as they should be, but wrongly vilified – banished to Trump's poisonous world of fake news. For instance, under the Trump administration, language has been pillaged, truth and reason disparaged, and words and phrases emptied of any substance or turned into their opposite, all via the endless production of Trump's Twitter storms and the ongoing clown spectacle of Fox News. This grim reality points to a failure in the power of the civic imagination, political will, and open democracy. It is also part of a politics that strips the social of any democratic ideals and undermines any understanding of education as a public good. What we are witnessing under neoliberalism is not simply a political project to consolidate power in the hands of the corporate and financial elite but also a reworking of the very meaning of literacy and education as crucial to what it means to create an informed citizenry and democratic society. In an age when literacy and thinking become dangerous to the anti-democratic forces governing all the commanding economic and cultural institutions of the United States, truth is viewed as a liability, ignorance becomes a virtue, and informed judgments and critical thinking demeaned and turned into rubble and ashes. Under the reign of this normalized architecture of alleged common sense, literacy is regarded with disdain, words are reduced to data and science is confused with pseudo-science. Traces of critical thought appear more and more at the margins of the culture as ignorance becomes the primary organizing principle of American society. Under the forty-year reign of neoliberalism, language has been militarized, handed over to advertisers, game show idiocy, and a political and culturally embarrassing anti-intellectualism sanctioned by the White House. Couple this with a celebrity culture that produces an ecosystem of babble, shock, and tawdry entertainment. Add on the cruel and clownish anti-public intellectuals such as Jordan Peterson who defend inequality, infantile forms of masculinity, and define ignorance and a warrior mentality as part of the natural order, all the while dethroning any viable sense of agency and the political. The culture of manufactured illiteracy is also reproduced through a media apparatus that trades in illusions and the spectacle of violence. Under these circumstances, illiteracy becomes the norm and education becomes central to a version of neoliberal zombie politics that functions largely to remove democratic values, social relations, and compassion from the ideology, policies and commanding institutions that now control American society. In the age of manufactured illiteracy, there is more at work than simply an absence of learning, ideas or knowledge. Nor can the reign of manufactured illiteracy be solely attributed to the rise of the new social media, a culture of immediacy, and a society that thrives on instant gratification. On the contrary, manufactured illiteracy is political and educational project central to a right-wing corporatist ideology and set of policies that work aggressively to depoliticize people and make them complicitous with the neoliberal and racist political and economic forces that impose misery and suffering upon their lives. There is more at work here than what Ariel Dorfman calls a "felonious stupidity," there is also the workings of a deeply malicious form of 21 st century neoliberal fascism and a culture of cruelty in which language is forced into the service of violence while waging a relentless attack on the ethical imagination and the notion of the common good. In the current historical moment illiteracy and ignorance offer the pretense of a community in doing so has undermined the importance of civic literacy both in higher education and the larger society. Mitja Sardoč: Is there any shortcoming in the analysis of such a complex (and controversial) social phenomenon as neoliberalism and its educational agenda? Put differently: is there any aspect of the neoliberal educational agenda that its critics have failed to address? Henry Giroux: Any analysis of an ideology such as neoliberalism will always be incomplete. And the literature on neoliberalism in its different forms and diverse contexts is quite abundant. What is often underplayed in my mind are three things. First, too little is said about how neoliberalism functions not simply as an economic model for finance capital but as a public pedagogy that operates through a diverse number of sites and platforms. Second, not enough has been written about its war on a democratic notion of sociality and the concept of the social. Third, at a time in which echoes of a past fascism are on the rise not enough is being said about the relationship between neoliberalism and fascism, or what I call neoliberal fascism, especially the relationship between the widespread suffering and misery caused by neoliberalism and the rise of white supremacy. I define neoliberal fascism as both a project and a movement, which functions as an enabling force that weakens, if not destroys, the commanding institutions of a democracy while undermining its most valuable principles. Consequently, it provides a fertile ground for the unleashing of the ideological architecture, poisonous values, and racist social relations sanctioned and produced under fascism. Neoliberalism and fascism conjoin and advance in a comfortable and mutually compatible project and movement that connects the worse excesses of capitalism with fascist ideals – the veneration of war, a hatred of reason and truth; a populist celebration of ultra-nationalism and racial purity; the suppression of freedom and dissent; a culture which promotes lies, spectacles, a demonization of the other, a discourse of decline, brutal violence, and ultimately state violence in heterogeneous forms. As a project, it destroys all the commanding institutions of democracy and consolidates power in the hands of a financial elite. As a movement, it produces and legitimates massive economic inequality and suffering, privatizes public goods, dismantles essential government agencies, and individualizes all social problems. In addition, it transforms the political state into the corporate state, and uses the tools of surveillance, militarization, and law and order to discredit the critical press and media, undermine civil liberties while ridiculing and censoring critics. What critics need to address is that neoliberalism is the face of a new fascism and as such it speaks to the need to repudiate the notion that capitalism and democracy are the same thing, renew faith in the promises of a democratic socialism, create new political formations around an alliance of diverse social movements, and take seriously the need to make education central to politics itself. #### [Jan 12, 2019] Tucker Carlson Mitt Romney supports the status quo. But for everyone else, it's infuriating Fox News ##### Highly recommended! ##### Notable quotes: ##### "... Adapted from Tucker Carlson's monologue from "Tucker Carlson Tonight" on January 2, 2019. ..." ###### Jan 02, 2019 | www.foxnews.com Tucker: America's goal is happiness, but leaders show no obligation to voters Voters around the world revolt against leaders who won't improve their lives. Newly-elected Utah senator Mitt Romney kicked off 2019 with an op-ed in the Washington Post that savaged Donald Trump's character and leadership. Romney's attack and Trump's response Wednesday morning on Twitter are the latest salvos in a longstanding personal feud between the two men. It's even possible that Romney is planning to challenge Trump for the Republican nomination in 2020. We'll see. But for now, Romney's piece is fascinating on its own terms. It's well-worth reading. It's a window into how the people in charge, in both parties, see our country. Romney's main complaint in the piece is that Donald Trump is a mercurial and divisive leader. That's true, of course. But beneath the personal slights, Romney has a policy critique of Trump. He seems genuinely angry that Trump might pull American troops out of the Syrian civil war. Romney doesn't explain how staying in Syria would benefit America. He doesn't appear to consider that a relevant question. More policing in the Middle East is always better. We know that. Virtually everyone in Washington agrees. Corporate tax cuts are also popular in Washington, and Romney is strongly on board with those, too. His piece throws a rare compliment to Trump for cutting the corporate rate a year ago. That's not surprising. Romney spent the bulk of his business career at a firm called Bain Capital. Bain Capital all but invented what is now a familiar business strategy: Take over an existing company for a short period of time, cut costs by firing employees, run up the debt, extract the wealth, and move on, sometimes leaving retirees without their earned pensions. Romney became fantastically rich doing this. Meanwhile, a remarkable number of the companies are now bankrupt or extinct. This is the private equity model. Our ruling class sees nothing wrong with it. It's how they run the country. Mitt Romney refers to unwavering support for a finance-based economy and an internationalist foreign policy as the "mainstream Republican" view. And he's right about that. For generations, Republicans have considered it their duty to make the world safe for banking, while simultaneously prosecuting ever more foreign wars. Modern Democrats generally support those goals enthusiastically. There are signs, however, that most people do not support this, and not just in America. In countries around the world -- France, Brazil, Sweden, the Philippines, Germany, and many others -- voters are suddenly backing candidates and ideas that would have been unimaginable just a decade ago. These are not isolated events. What you're watching is entire populations revolting against leaders who refuse to improve their lives. Something like this has been in happening in our country for three years. Donald Trump rode a surge of popular discontent all the way to the White House. Does he understand the political revolution that he harnessed? Can he reverse the economic and cultural trends that are destroying America? Those are open questions. But they're less relevant than we think. At some point, Donald Trump will be gone. The rest of us will be gone, too. The country will remain. What kind of country will be it be then? How do we want our grandchildren to live? These are the only questions that matter. The answer used to be obvious. The overriding goal for America is more prosperity, meaning cheaper consumer goods. But is that still true? Does anyone still believe that cheaper iPhones, or more Amazon deliveries of plastic garbage from China are going to make us happy? They haven't so far. A lot of Americans are drowning in stuff. And yet drug addiction and suicide are depopulating large parts of the country. Anyone who thinks the health of a nation can be summed up in GDP is an idiot. The goal for America is both simpler and more elusive than mere prosperity. It's happiness. There are a lot of ingredients in being happy: Dignity. Purpose. Self-control. Independence. Above all, deep relationships with other people. Those are the things that you want for your children. They're what our leaders should want for us, and would want if they cared. But our leaders don't care. We are ruled by mercenaries who feel no long-term obligation to the people they rule. They're day traders. Substitute teachers. They're just passing through. They have no skin in this game, and it shows. They can't solve our problems. They don't even bother to understand our problems. One of the biggest lies our leaders tell us that you can separate economics from everything else that matters. Economics is a topic for public debate. Family and faith and culture, meanwhile, those are personal matters. Both parties believe this. Members of our educated upper-middle-classes are now the backbone of the Democratic Party who usually describe themselves as fiscally responsible and socially moderate. In other words, functionally libertarian. They don't care how you live, as long as the bills are paid and the markets function. Somehow, they don't see a connection between people's personal lives and the health of our economy, or for that matter, the country's ability to pay its bills. As far as they're concerned, these are two totally separate categories. Social conservatives, meanwhile, come to the debate from the opposite perspective, and yet reach a strikingly similar conclusion. The real problem, you'll hear them say, is that the American family is collapsing. Nothing can be fixed before we fix that. Yet, like the libertarians they claim to oppose, many social conservatives also consider markets sacrosanct. The idea that families are being crushed by market forces seems never to occur to them. They refuse to consider it. Questioning markets feels like apostasy. Both sides miss the obvious point: Culture and economics are inseparably intertwined. Certain economic systems allow families to thrive. Thriving families make market economies possible. You can't separate the two. It used to be possible to deny this. Not anymore. The evidence is now overwhelming. How do we know? Consider the inner cities. Thirty years ago, conservatives looked at Detroit or Newark and many other places and were horrified by what they saw. Conventional families had all but disappeared in poor neighborhoods. The majority of children were born out of wedlock. Single mothers were the rule. Crime and drugs and disorder became universal. What caused this nightmare? Liberals didn't even want to acknowledge the question. They were benefiting from the disaster, in the form of reliable votes. Conservatives, though, had a ready explanation for inner-city dysfunction and it made sense: big government. Decades of badly-designed social programs had driven fathers from the home and created what conservatives called a "culture of poverty" that trapped people in generational decline. There was truth in this. But it wasn't the whole story. How do we know? Because virtually the same thing has happened decades later to an entirely different population. In many ways, rural America now looks a lot like Detroit. This is striking because rural Americans wouldn't seem to have much in common with anyone from the inner city. These groups have different cultures, different traditions and political beliefs. Usually they have different skin colors. Rural people are white conservatives, mostly. Yet, the pathologies of modern rural America are familiar to anyone who visited downtown Baltimore in the 1980s: Stunning out of wedlock birthrates. High male unemployment. A terrifying drug epidemic. Two different worlds. Similar outcomes. How did this happen? You'd think our ruling class would be interested in knowing the answer. But mostly they're not. They don't have to be interested. It's easier to import foreign labor to take the place of native-born Americans who are slipping behind. But Republicans now represent rural voters. They ought to be interested. Here's a big part of the answer: male wages declined. Manufacturing, a male-dominated industry, all but disappeared over the course of a generation. All that remained in many places were the schools and the hospitals, both traditional employers of women. In many places, women suddenly made more than men. Now, before you applaud this as a victory for feminism, consider the effects. Study after study has shown that when men make less than women, women generally don't want to marry them. Maybe they should want to marry them, but they don't. Over big populations, this causes a drop in marriage, a spike in out-of-wedlock births, and all the familiar disasters that inevitably follow -- more drug and alcohol abuse, higher incarceration rates, fewer families formed in the next generation. This isn't speculation. This is not propaganda from the evangelicals. It's social science. We know it's true. Rich people know it best of all. That's why they get married before they have kids. That model works. But increasingly, marriage is a luxury only the affluent in America can afford. And yet, and here's the bewildering and infuriating part, those very same affluent married people, the ones making virtually all the decisions in our society, are doing pretty much nothing to help the people below them get and stay married. Rich people are happy to fight malaria in Congo. But working to raise men's wages in Dayton or Detroit? That's crazy. This is negligence on a massive scale. Both parties ignore the crisis in marriage. Our mindless cultural leaders act like it's still 1961, and the biggest problem American families face is that sexism is preventing millions of housewives from becoming investment bankers or Facebook executives. For our ruling class, more investment banking is always the answer. They teach us it's more virtuous to devote your life to some soulless corporation than it is to raise your own kids. Sheryl Sandberg of Facebook wrote an entire book about this. Sandberg explained that our first duty is to shareholders, above our own children. No surprise there. Sandberg herself is one of America's biggest shareholders. Propaganda like this has made her rich. We are ruled by mercenaries who feel no long-term obligation to the people they rule. They're day traders. Substitute teachers. They're just passing through. They have no skin in this game, and it shows. What's remarkable is how the rest of us responded to it. We didn't question why Sandberg was saying this. We didn't laugh in her face at the pure absurdity of it. Our corporate media celebrated Sandberg as the leader of a liberation movement. Her book became a bestseller: "Lean In." As if putting a corporation first is empowerment. It is not. It is bondage. Republicans should say so. They should also speak out against the ugliest parts of our financial system. Not all commerce is good. Why is it defensible to loan people money they can't possibly repay? Or charge them interest that impoverishes them? Payday loan outlets in poor neighborhoods collect 400 percent annual interest. We're OK with that? We shouldn't be. Libertarians tell us that's how markets work -- consenting adults making voluntary decisions about how to live their lives. OK. But it's also disgusting. If you care about America, you ought to oppose the exploitation of Americans, whether it's happening in the inner city or on Wall Street. And by the way, if you really loved your fellow Americans, as our leaders should, if it would break your heart to see them high all the time. Which they are. A huge number of our kids, especially our boys, are smoking weed constantly. You may not realize that, because new technology has made it odorless. But it's everywhere. And that's not an accident. Once our leaders understood they could get rich from marijuana, marijuana became ubiquitous. In many places, tax-hungry politicians have legalized or decriminalized it. Former Speaker of the House John Boehner now lobbies for the marijuana industry. His fellow Republicans seem fine with that. "Oh, but it's better for you than alcohol," they tell us. Maybe. Who cares? Talk about missing the point. Try having dinner with a 19-year-old who's been smoking weed. The life is gone. Passive, flat, trapped in their own heads. Do you want that for your kids? Of course not. Then why are our leaders pushing it on us? You know the reason. Because they don't care about us. When you care about people, you do your best to treat them fairly. Our leaders don't even try. They hand out jobs and contracts and scholarships and slots at prestigious universities based purely on how we look. There's nothing less fair than that, though our tax code comes close. Under our current system, an American who works for a salary pays about twice the tax rate as someone who's living off inherited money and doesn't work at all. We tax capital at half of what we tax labor. It's a sweet deal if you work in finance, as many of our rich people do. In 2010, for example, Mitt Romney made about22 million dollars in investment income. He paid an effective federal tax rate of 14 percent. For normal upper-middle-class wage earners, the federal tax rate is nearly 40 percent. No wonder Mitt Romney supports the status quo. But for everyone else, it's infuriating.

Our leaders rarely mention any of this. They tell us our multi-tiered tax code is based on the principles of the free market. Please. It's based on laws that the Congress passed, laws that companies lobbied for in order to increase their economic advantage. It worked well for those people. They did increase their economic advantage. But for everyone else, it came at a big cost. Unfairness is profoundly divisive. When you favor one child over another, your kids don't hate you. They hate each other.

That happens in countries, too. It's happening in ours, probably by design. Divided countries are easier to rule. And nothing divides us like the perception that some people are getting special treatment. In our country, some people definitely are getting special treatment. Republicans should oppose that with everything they have.

What kind of country do you want to live in? A fair country. A decent country. A cohesive country. A country whose leaders don't accelerate the forces of change purely for their own profit and amusement. A country you might recognize when you're old.

A country that listens to young people who don't live in Brooklyn. A country where you can make a solid living outside of the big cities. A country where Lewiston, Maine seems almost as important as the west side of Los Angeles. A country where environmentalism means getting outside and picking up the trash. A clean, orderly, stable country that respects itself. And above all, a country where normal people with an average education who grew up in no place special can get married, and have happy kids, and repeat unto the generations. A country that actually cares about families, the building block of everything.

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What will it take a get a country like that? Leaders who want it. For now, those leaders will have to be Republicans. There's no option at this point.

But first, Republican leaders will have to acknowledge that market capitalism is not a religion. Market capitalism is a tool, like a staple gun or a toaster. You'd have to be a fool to worship it. Our system was created by human beings for the benefit of human beings. We do not exist to serve markets. Just the opposite. Any economic system that weakens and destroys families is not worth having. A system like that is the enemy of a healthy society.

Internalizing all this will not be easy for Republican leaders. They'll have to unlearn decades of bumper sticker-talking points and corporate propaganda. They'll likely lose donors in the process. They'll be criticized. Libertarians are sure to call any deviation from market fundamentalism a form of socialism.

That's a lie. Socialism is a disaster. It doesn't work. It's what we should be working desperately to avoid. But socialism is exactly what we're going to get, and very soon unless a group of responsible people in our political system reforms the American economy in a way that protects normal people.

If you want to put America first, you've got to put its families first.

Adapted from Tucker Carlson's monologue from "Tucker Carlson Tonight" on January 2, 2019.

#### [Jan 12, 2019] Tucker Carlson has sparked the most interesting debate in conservative politics by Jane Coaston

##### "... Carlson told me that beyond changing our tax code, he has no major policies in mind. "I'm not even making the case for an economic system in particular," he told me. "All I'm saying is don't act like the way things are is somehow ordained by God or a function or raw nature." ..."
###### Jan 10, 2019 | www.vox.com

"All I'm saying is don't act like the way things are is somehow ordained by God."

Last Wednesday, the conservative talk show host Tucker Carlson started a fire on the right after airing a prolonged monologue on his show that was, in essence, an indictment of American capitalism.

America's "ruling class," Carlson says, are the "mercenaries" behind the failures of the middle class -- including sinking marriage rates -- and "the ugliest parts of our financial system." He went on: "Any economic system that weakens and destroys families is not worth having. A system like that is the enemy of a healthy society."

He concluded with a demand for "a fair country. A decent country. A cohesive country. A country whose leaders don't accelerate the forces of change purely for their own profit and amusement."

The monologue was stunning in itself, an incredible moment in which a Fox News host stated that for generations, "Republicans have considered it their duty to make the world safe for banking, while simultaneously prosecuting ever more foreign wars." More broadly, though, Carlson's position and the ensuing controversy reveals an ongoing and nearly unsolvable tension in conservative politics about the meaning of populism, a political ideology that Trump campaigned on but Carlson argues he may not truly understand.

Moreover, in Carlson's words: "At some point, Donald Trump will be gone. The rest of us will be gone too. The country will remain. What kind of country will be it be then?"

The monologue and its sweeping anti-elitism drove a wedge between conservative writers. The American Conservative's Rod Dreher wrote of Carlson's monologue, "A man or woman who can talk like that with conviction could become president. Voting for a conservative candidate like that would be the first affirmative vote I've ever cast for president." Other conservative commentators scoffed. Ben Shapiro wrote in National Review that Carlson's monologue sounded far more like Sens. Bernie Sanders or Elizabeth Warren than, say, Ronald Reagan.

I spoke with Carlson by phone this week to discuss his monologue and its economic -- and cultural -- meaning. He agreed that his monologue was reminiscent of Warren, referencing her 2003 book The Two-Income Trap: Why Middle-Class Parents Are Growing Broke . "There were parts of the book that I disagree with, of course," he told me. "But there are parts of it that are really important and true. And nobody wanted to have that conversation."

Carlson wanted to be clear: He's just asking questions. "I'm not an economic adviser or a politician. I'm not a think tank fellow. I'm just a talk show host," he said, telling me that all he wants is to ask "the basic questions you would ask about any policy." But he wants to ask those questions about what he calls the "religious faith" of market capitalism, one he believes elites -- "mercenaries who feel no long-term obligation to the people they rule" -- have put ahead of "normal people."

But whether or not he likes it, Carlson is an important voice in conservative politics. His show is among the most-watched television programs in America. And his raising questions about market capitalism and the free market matters.

"What does [free market capitalism] get us?" he said in our call. "What kind of country do you want to live in? If you put these policies into effect, what will you have in 10 years?"

Populism on the right is gaining, again

Carlson is hardly the first right-leaning figure to make a pitch for populism, even tangentially, in the third year of Donald Trump, whose populist-lite presidential candidacy and presidency Carlson told me he views as "the smoke alarm ... telling you the building is on fire, and unless you figure out how to put the flames out, it will consume it."

Populism is a rhetorical approach that separates "the people" from elites. In the words of Cas Mudde, a professor at the University of Georgia, it divides the country into "two homogenous and antagonistic groups: the pure people on the one end and the corrupt elite on the other." Populist rhetoric has a long history in American politics, serving as the focal point of numerous presidential campaigns and powering William Jennings Bryan to the Democratic nomination for president in 1896. Trump borrowed some of that approach for his 2016 campaign but in office has governed as a fairly orthodox economic conservative, thus demonstrating the demand for populism on the right without really providing the supply and creating conditions for further ferment.

When right-leaning pundit Ann Coulter spoke with Breitbart Radio about Trump's Tuesday evening Oval Office address to the nation regarding border wall funding, she said she wanted to hear him say something like, "You know, you say a lot of wild things on the campaign trail. I'm speaking to big rallies. But I want to talk to America about a serious problem that is affecting the least among us, the working-class blue-collar workers":

Coulter urged Trump to bring up overdose deaths from heroin in order to speak to the "working class" and to blame the fact that working-class wages have stalled, if not fallen, in the last 20 years on immigration. She encouraged Trump to declare, "This is a national emergency for the people who don't have lobbyists in Washington."

Ocasio-Cortez wants a 70-80% income tax on the rich. I agree! Start with the Koch Bros. -- and also make it WEALTH tax.

-- Ann Coulter (@AnnCoulter) January 4, 2019

These sentiments have even pitted popular Fox News hosts against each other.

Sean Hannity warned his audience that New York Rep. Alexandria Ocasio-Cortez's economic policies would mean that "the rich people won't be buying boats that they like recreationally, they're not going to be taking expensive vacations anymore." But Carlson agreed when I said his monologue was somewhat reminiscent of Ocasio-Cortez's past comments on the economy , and how even a strong economy was still leaving working-class Americans behind.

"I'm just saying as a matter of fact," he told me, "a country where a shrinking percentage of the population is taking home an ever-expanding proportion of the money is not a recipe for a stable society. It's not."

Carlson told me he wanted to be clear: He is not a populist. But he believes some version of populism is necessary to prevent a full-scale political revolt or the onset of socialism. Using Theodore Roosevelt as an example of a president who recognized that labor needs economic power, he told me, "Unless you want something really extreme to happen, you need to take this seriously and figure out how to protect average people from these remarkably powerful forces that have been unleashed."

"I think populism is potentially really disruptive. What I'm saying is that populism is a symptom of something being wrong," he told me. "Again, populism is a smoke alarm; do not ignore it."

But Carlson's brand of populism, and the populist sentiments sweeping the American right, aren't just focused on the current state of income inequality in America. Carlson tackled a bigger idea: that market capitalism and the "elites" whom he argues are its major drivers aren't working. The free market isn't working for families, or individuals, or kids. In his monologue, Carlson railed against libertarian economics and even payday loans, saying, "If you care about America, you ought to oppose the exploitation of Americans, whether it's happening in the inner city or on Wall Street" -- sounding very much like Sanders or Warren on the left.

Carlson's argument that "market capitalism is not a religion" is of course old hat on the left, but it's also been bubbling on the right for years now. When National Review writer Kevin Williamson wrote a 2016 op-ed about how rural whites "failed themselves," he faced a massive backlash in the Trumpier quarters of the right. And these sentiments are becoming increasingly potent at a time when Americans can see both a booming stock market and perhaps their own family members struggling to get by.

Capitalism/liberalism destroys the extended family by requiring people to move apart for work and destroying any sense of unchosen obligations one might have towards one's kin.

-- Jeremy McLallan (@JeremyMcLellan) January 8, 2019

At the Federalist, writer Kirk Jing wrote of Carlson's monologue, and a response to it by National Review columnist David French:

Our society is less French's America, the idea, and more Frantz Fanon's "Wretched of the Earth" (involving a very different French). The lowest are stripped of even social dignity and deemed unworthy of life . In Real America, wages are stagnant, life expectancy is crashing, people are fleeing the workforce, families are crumbling, and trust in the institutions on top are at all-time lows. To French, holding any leaders of those institutions responsible for their errors is "victimhood populism" ... The Right must do better if it seeks to govern a real America that exists outside of its fantasies.

J.D. Vance, author of Hillbilly Elegy , wrote that the [neoliberal] economy's victories -- and praise for those wins from conservatives -- were largely meaningless to white working-class Americans living in Ohio and Kentucky: "Yes, they live in a country with a higher GDP than a generation ago, and they're undoubtedly able to buy cheaper consumer goods, but to paraphrase Reagan: Are they better off than they were 20 years ago? Many would say, unequivocally, 'no.'"

Carlson's populism holds, in his view, bipartisan possibilities. In a follow-up email, I asked him why his monologue was aimed at Republicans when many Democrats had long espoused the same criticisms of free market economics. "Fair question," he responded. "I hope it's not just Republicans. But any response to the country's systemic problems will have to give priority to the concerns of American citizens over the concerns of everyone else, just as you'd protect your own kids before the neighbor's kids."

Who is "they"?

And that's the point where Carlson and a host of others on the right who have begun to challenge the conservative movement's orthodoxy on free markets -- people ranging from occasionally mendacious bomb-throwers like Coulter to writers like Michael Brendan Dougherty -- separate themselves from many of those making those exact same arguments on the left.

When Carlson talks about the "normal people" he wants to save from nefarious elites, he is talking, usually, about a specific group of "normal people" -- white working-class Americans who are the "real" victims of capitalism, or marijuana legalization, or immigration policies.

In this telling, white working-class Americans who once relied on a manufacturing economy that doesn't look the way it did in 1955 are the unwilling pawns of elites. It's not their fault that, in Carlson's view, marriage is inaccessible to them, or that marijuana legalization means more teens are smoking weed ( this probably isn't true ). Someone, or something, did this to them. In Carlson's view, it's the responsibility of politicians: Our economic situation, and the plight of the white working class, is "the product of a series of conscious decisions that the Congress made."

The criticism of Carlson's monologue has largely focused on how he deviates from the free market capitalism that conservatives believe is the solution to poverty, not the creator of poverty. To orthodox conservatives, poverty is the result of poor decision making or a lack of virtue that can't be solved by government programs or an anti-elite political platform -- and they say Carlson's argument that elites are in some way responsible for dwindling marriage rates doesn't make sense .

But in French's response to Carlson, he goes deeper, writing that to embrace Carlson's brand of populism is to support "victimhood populism," one that makes white working-class Americans into the victims of an undefined "they:

Carlson is advancing a form of victim-politics populism that takes a series of tectonic cultural changes -- civil rights, women's rights, a technological revolution as significant as the industrial revolution, the mass-scale loss of religious faith, the sexual revolution, etc. -- and turns the negative or challenging aspects of those changes into an angry tale of what they are doing to you .

And that was my biggest question about Carlson's monologue, and the flurry of responses to it, and support for it: When other groups (say, black Americans) have pointed to systemic inequities within the economic system that have resulted in poverty and family dysfunction, the response from many on the right has been, shall we say, less than enthusiastic .

Really, it comes down to when black people have problems, it's personal responsibility, but when white people have the same problems, the system is messed up. Funny how that works!!

-- Judah Maccabeets (@AdamSerwer) January 9, 2019

Yet white working-class poverty receives, from Carlson and others, far more sympathy. And conservatives are far more likely to identify with a criticism of "elites" when they believe those elites are responsible for the expansion of trans rights or creeping secularism than the wealthy and powerful people who are investing in private prisons or an expansion of the militarization of police . Carlson's network, Fox News, and Carlson himself have frequently blasted leftist critics of market capitalism and efforts to fight inequality .

I asked Carlson about this, as his show is frequently centered on the turmoils caused by " demographic change ." He said that for decades, "conservatives just wrote [black economic struggles] off as a culture of poverty," a line he includes in his monologue .

He added that regarding black poverty, "it's pretty easy when you've got 12 percent of the population going through something to feel like, 'Well, there must be ... there's something wrong with that culture.' Which is actually a tricky thing to say because it's in part true, but what you're missing, what I missed, what I think a lot of people missed, was that the economic system you're living under affects your culture."

Carlson said that growing up in Washington, DC, and spending time in rural Maine, he didn't realize until recently that the same poverty and decay he observed in the Washington of the 1980s was also taking place in rural (and majority-white) Maine. "I was thinking, 'Wait a second ... maybe when the jobs go away the culture changes,'" he told me, "And the reason I didn't think of it before was because I was so blinded by this libertarian economic propaganda that I couldn't get past my own assumptions about economics." (For the record, libertarians have critiqued Carlson's monologue as well.)

Carlson told me that beyond changing our tax code, he has no major policies in mind. "I'm not even making the case for an economic system in particular," he told me. "All I'm saying is don't act like the way things are is somehow ordained by God or a function or raw nature."

And clearly, our market economy isn't driven by God or nature, as the stock market soars and unemployment dips and yet even those on the right are noticing lengthy periods of wage stagnation and dying little towns across the country. But what to do about those dying little towns, and which dying towns we care about and which we don't, and, most importantly, whose fault it is that those towns are dying in the first place -- those are all questions Carlson leaves to the viewer to answer.

#### [Dec 27, 2018] The Yoda of Silicon Valley by Siobhan Roberts

##### "... One good teacher makes all the difference in life. More than one is a rare blessing. ..."
###### Dec 17, 2018 | www.nytimes.com

With more than one million copies in print, "The Art of Computer Programming " is the Bible of its field. "Like an actual bible, it is long and comprehensive; no other book is as comprehensive," said Peter Norvig, a director of research at Google. After 652 pages, volume one closes with a blurb on the back cover from Bill Gates: "You should definitely send me a résumé if you can read the whole thing."

The volume opens with an excerpt from " McCall's Cookbook ":

Here is your book, the one your thousands of letters have asked us to publish. It has taken us years to do, checking and rechecking countless recipes to bring you only the best, only the interesting, only the perfect.

Inside are algorithms, the recipes that feed the digital age -- although, as Dr. Knuth likes to point out, algorithms can also be found on Babylonian tablets from 3,800 years ago. He is an esteemed algorithmist; his name is attached to some of the field's most important specimens, such as the Knuth-Morris-Pratt string-searching algorithm. Devised in 1970, it finds all occurrences of a given word or pattern of letters in a text -- for instance, when you hit Command+F to search for a keyword in a document.

... ... ...

During summer vacations, Dr. Knuth made more money than professors earned in a year by writing compilers. A compiler is like a translator, converting a high-level programming language (resembling algebra) to a lower-level one (sometimes arcane binary) and, ideally, improving it in the process. In computer science, "optimization" is truly an art, and this is articulated in another Knuthian proverb: "Premature optimization is the root of all evil."

Eventually Dr. Knuth became a compiler himself, inadvertently founding a new field that he came to call the "analysis of algorithms." A publisher hired him to write a book about compilers, but it evolved into a book collecting everything he knew about how to write for computers -- a book about algorithms.

... ... ...

When Dr. Knuth started out, he intended to write a single work. Soon after, computer science underwent its Big Bang, so he reimagined and recast the project in seven volumes. Now he metes out sub-volumes, called fascicles. The next installation, "Volume 4, Fascicle 5," covering, among other things, "backtracking" and "dancing links," was meant to be published in time for Christmas. It is delayed until next April because he keeps finding more and more irresistible problems that he wants to present.

In order to optimize his chances of getting to the end, Dr. Knuth has long guarded his time. He retired at 55, restricted his public engagements and quit email (officially, at least). Andrei Broder recalled that time management was his professor's defining characteristic even in the early 1980s.

Dr. Knuth typically held student appointments on Friday mornings, until he started spending his nights in the lab of John McCarthy, a founder of artificial intelligence, to get access to the computers when they were free. Horrified by what his beloved book looked like on the page with the advent of digital publishing, Dr. Knuth had gone on a mission to create the TeX computer typesetting system, which remains the gold standard for all forms of scientific communication and publication. Some consider it Dr. Knuth's greatest contribution to the world, and the greatest contribution to typography since Gutenberg.

This decade-long detour took place back in the age when computers were shared among users and ran faster at night while most humans slept. So Dr. Knuth switched day into night, shifted his schedule by 12 hours and mapped his student appointments to Fridays from 8 p.m. to midnight. Dr. Broder recalled, "When I told my girlfriend that we can't do anything Friday night because Friday night at 10 I have to meet with my adviser, she thought, 'This is something that is so stupid it must be true.'"

... ... ...

Lucky, then, Dr. Knuth keeps at it. He figures it will take another 25 years to finish "The Art of Computer Programming," although that time frame has been a constant since about 1980. Might the algorithm-writing algorithms get their own chapter, or maybe a page in the epilogue? "Definitely not," said Dr. Knuth.

"I am worried that algorithms are getting too prominent in the world," he added. "It started out that computer scientists were worried nobody was listening to us. Now I'm worried that too many people are listening."

Scott Kim Burlingame, CA Dec. 18

Thanks Siobhan for your vivid portrait of my friend and mentor. When I came to Stanford as an undergrad in 1973 I asked who in the math dept was interested in puzzles. They pointed me to the computer science dept, where I met Knuth and we hit it off immediately. Not only a great thinker and writer, but as you so well described, always present and warm in person. He was also one of the best teachers I've ever had -- clear, funny, and interested in every student (his elegant policy was each student can only speak twice in class during a period, to give everyone a chance to participate, and he made a point of remembering everyone's names). Some thoughts from Knuth I carry with me: finding the right name for a project is half the work (not literally true, but he labored hard on finding the right names for TeX, Metafont, etc.), always do your best work, half of why the field of computer science exists is because it is a way for mathematically minded people who like to build things can meet each other, and the observation that when the computer science dept began at Stanford one of the standard interview questions was "what instrument do you play" -- there was a deep connection between music and computer science, and indeed the dept had multiple string quartets. But in recent decades that has changed entirely. If you do a book on Knuth (he deserves it), please be in touch.

IMiss America US Dec. 18

I remember when programming was art. I remember when programming was programming. These days, it is 'coding', which is more like 'code-spraying'. Throw code at a problem until it kind of works, then fix the bugs in the post-release, or the next update.

AI is a joke. None of the current 'AI' actually is. It is just another new buzz-word to throw around to people that do not understand it at all. We should be in a golden age of computing. Instead, we are cutting all corners to get something out as fast as possible. The technology exists to do far more. It is the human element that fails us.

Ronald Aaronson Armonk, NY Dec. 18

My particular field of interest has always been compiler writing and have been long awaiting Knuth's volume on that subject. I would just like to point out that among Kunth's many accomplishments is the invention of LR parsers, which are widely used for writing programming language compilers.

Edward Snowden Russia Dec. 18

Yes, \TeX, and its derivative, \LaTeX{} contributed greatly to being able to create elegant documents. It is also available for the web in the form MathJax, and it's about time the New York Times supported MathJax. Many times I want one of my New York Times comments to include math, but there's no way to do so! It comes up equivalent to: $e^{i\pi}+1$.

48 Recommend
henry pick new york Dec. 18

I read it at the time, because what I really wanted to read was volume 7, Compilers. As I understood it at the time, Professor Knuth wrote it in order to make enough money to build an organ. That apparantly happened by 3:Knuth, Searching and Sorting. The most impressive part is the mathemathics in Semi-numerical (2:Knuth). A lot of those problems are research projects over the literature of the last 400 years of mathematics.

Steve Singer Chicago Dec. 18

I own the three volume "Art of Computer Programming", the hardbound boxed set. Luxurious. I don't look at it very often thanks to time constraints, given my workload. But your article motivated me to at least pick it up and carry it from my reserve library to a spot closer to my main desk so I can at least grab Volume 1 and try to read some of it when the mood strikes. I had forgotten just how heavy it is, intellectual content aside. It must weigh more than 25 pounds.

Terry Hayes Los Altos, CA Dec. 18

I too used my copies of The Art of Computer Programming to guide me in several projects in my career, across a variety of topic areas. Now that I'm living in Silicon Valley, I enjoy seeing Knuth at events at the Computer History Museum (where he was a 1998 Fellow Award winner), and at Stanford. Another facet of his teaching is the annual Christmas Lecture, in which he presents something of recent (or not-so-recent) interest. The 2018 lecture is available online - https://www.youtube.com/watch?v=_cR9zDlvP88

Chris Tong Kelseyville, California Dec. 17

One of the most special treats for first year Ph.D. students in the Stanford University Computer Science Department was to take the Computer Problem-Solving class with Don Knuth. It was small and intimate, and we sat around a table for our meetings. Knuth started the semester by giving us an extremely challenging, previously unsolved problem. We then formed teams of 2 or 3. Each week, each team would report progress (or lack thereof), and Knuth, in the most supportive way, would assess our problem-solving approach and make suggestions for how to improve it. To have a master thinker giving one feedback on how to think better was a rare and extraordinary experience, from which I am still benefiting! Knuth ended the semester (after we had all solved the problem) by having us over to his house for food, drink, and tales from his life. . . And for those like me with a musical interest, he let us play the magnificent pipe organ that was at the center of his music room. Thank you Professor Knuth, for giving me one of the most profound educational experiences I've ever had, with such encouragement and humor!

Been there Boulder, Colorado Dec. 17

I learned about Dr. Knuth as a graduate student in the early 70s from one of my professors and made the financial sacrifice (graduate student assistantships were not lucrative) to buy the first and then the second volume of the Art of Computer Programming. Later, at Bell Labs, when I was a bit richer, I bought the third volume. I have those books still and have used them for reference for years. Thank you Dr, Knuth. Art, indeed!

Gianni New York Dec. 18

@Trerra In the good old days, before Computer Science, anyone could take the Programming Aptitude Test. Pass it and companies would train you. Although there were many mathematicians and scientists, some of the best programmers turned out to be music majors. English, Social Sciences, and History majors were represented as well as scientists and mathematicians. It was a wonderful atmosphere to work in . When I started to look for a job as a programmer, I took Prudential Life Insurance's version of the Aptitude Test. After the test, the interviewer was all bent out of shape because my verbal score was higher than my math score; I was a physics major. Luckily they didn't hire me and I got a job with IBM.

M Martínez Miami Dec. 17

In summary, "May the force be with you" means: Did you read Donald Knuth's "The Art of Computer Programming"? Excellent, we loved this article. We will share it with many young developers we know.

mds USA Dec. 17

Dr. Knuth is a great Computer Scientist. Around 25 years ago, I met Dr. Knuth in a small gathering a day before he was awarded a honorary Doctorate in a university. This is my approximate recollection of a conversation. I said-- " Dr. Knuth, you have dedicated your book to a computer (one with which he had spent a lot of time, perhaps a predecessor to PDP-11). Isn't it unusual?". He said-- "Well, I love my wife as much as anyone." He then turned to his wife and said --"Don't you think so?". It would be nice if scientists with the gift of such great minds tried to address some problems of ordinary people, e.g. a model of economy where everyone can get a job and health insurance, say, like Dr. Paul Krugman.

I was in a training program for women in computer systems at CUNY graduate center, and they used his obtuse book. It was one of the reasons I dropped out. He used a fantasy language to describe his algorithms in his book that one could not test on computers. I already had work experience as a programmer with algorithms and I know how valuable real languages are. I might as well have read Animal Farm. It might have been different if he was the instructor.

Doug McKenna Boulder Colorado Dec. 17

Don Knuth's work has been a curious thread weaving in and out of my life. I was first introduced to Knuth and his The Art of Computer Programming back in 1973, when I was tasked with understanding a section of the then-only-two-volume Book well enough to give a lecture explaining it to my college algorithms class. But when I first met him in 1981 at Stanford, he was all-in on thinking about typography and this new-fangled system of his called TeX. Skip a quarter century. One day in 2009, I foolishly decided kind of on a whim to rewrite TeX from scratch (in my copious spare time), as a simple C library, so that its typesetting algorithms could be put to use in other software such as electronic eBook's with high-quality math typesetting and interactive pictures. I asked Knuth for advice. He warned me, prepare yourself, it's going to consume five years of your life. I didn't believe him, so I set off and tried anyway. As usual, he was right.

Baddy Khan San Francisco Dec. 17

I have signed copied of "Fundamental Algorithms" in my library, which I treasure. Knuth was a fine teacher, and is truly a brilliant and inspiring individual. He taught during the same period as Vint Cerf, another wonderful teacher with a great sense of humor who is truly a "father of the internet". One good teacher makes all the difference in life. More than one is a rare blessing.

Indisk Fringe Dec. 17

I am a biologist, specifically a geneticist. I became interested in LaTeX typesetting early in my career and have been either called pompous or vilified by people at all levels for wanting to use. One of my PhD advisors famously told me to forget LaTeX because it was a thing of the past. I have now forgotten him completely. I still use LaTeX almost every day in my work even though I don't generally typeset with equations or algorithms. My students always get trained in using proper typesetting. Unfortunately, the publishing industry has all but largely given up on TeX. Very few journals in my field accept TeX manuscripts, and most of them convert to word before feeding text to their publishing software. Whatever people might argue against TeX, the beauty and elegance of a property typeset document is unparalleled. Long live LaTeX

PaulSFO San Francisco Dec. 17

A few years ago Severo Ornstein (who, incidentally, did the hardware design for the first router, in 1969), and his wife Laura, hosted a concert in their home in the hills above Palo Alto. During a break a friend and I were chatting when a man came over and *asked* if he could chat with us (a high honor, indeed). His name was Don. After a few minutes I grew suspicious and asked "What's your last name?" Friendly, modest, brilliant; a nice addition to our little chat.

Tim Black Wilmington, NC Dec. 17

When I was a physics undergraduate (at Trinity in Hartford), I was hired to re-write professor's papers into TeX. Seeing the beauty of TeX, I wrote a program that re-wrote my lab reports (including graphs!) into TeX. My lab instructors were amazed! How did I do it? I never told them. But I just recognized that Knuth was a genius and rode his coat-tails, as I have continued to do for the last 30 years!

Jack512 Alexandria VA Dec. 17

A famous quote from Knuth: "Beware of bugs in the above code; I have only proved it correct, not tried it." Anyone who has ever programmed a computer will feel the truth of this in their bones.

#### [Dec 11, 2018] John Taylor Gatto s book, The Underground History of American Education, lays out the sad fact of western education ; which has nothing to do with education; but rather, an indoctrination for inclusion in society as a passive participant. Docility is paramount in members of U.S. society so as to maintain the status quo

##### Neoliberalism looks like a cancer for the society... Unable to provide meaningful employment for people. Or at least look surprisingly close to one. Malignant growth.
###### Dec 11, 2018 | www.ianwelsh.net
• Lee Grove permalink April 25, 2016

Add one -- a BIG ONE–to your list: The utter destruction of the K-12 classroom learning environment: students spend the vast majority of their time trying to surreptitiously–or blatantly–use their cellphones in class; and if not actually using them, they are preoccupied with the thought of using them. It has been going on for almost a decade now, and we will start to see the results in that we will have a population where nobody can do anything that requires focus; it will be as if the entire upcoming population of college students has ADHD.

Welcome to the high-tech third world.

• V. Arnold permalink April 25, 2016

Lee Grove
April 25, 2016

Well Lee, you have a clue; but fail the really big picture regarding the abject failure of western education (which is a misnomer).
John Taylor Gatto's book, The Underground History of American Education, lays out the sad fact of "western education"; which has nothing to do with education; but rather, an indoctrination for inclusion in society as a passive participant.
Docility is paramount in members of U.S. society so as to maintain the status quo; working according to plan, near as I can tell

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#### [Sep 04, 2018] Kunstler Warns -Some Kind Of Epic National Restructuring Is In The Works

##### "... As with everything else on the table for debate, the reach and scope of US imperial arrangements has to be reduced. ..."
###### Sep 04, 2018 | www.zerohedge.com

Authored by James Howard Kunstler via Kunstler.com,

And so the sun seems to stand still this last day before the resumption of business-as-usual, and whatever remains of labor in this sclerotic republic takes its ease in the ominous late summer heat, and the people across this land marinate in anxious uncertainty.

What can be done?

Some kind of epic national restructuring is in the works. It will either happen consciously and deliberately or it will be forced on us by circumstance. One side wants to magically reenact the 1950s; the other wants a Gnostic transhuman utopia. Neither of these is a plausible outcome.

Most of the arguments ranging around them are what Jordan Peterson calls "pseudo issues." Let's try to take stock of what the real issues might be.

Energy

The shale oil "miracle" was a stunt enabled by supernaturally low interest rates, i.e. Federal Reserve policy. Even The New York Times said so yesterday ( The Next Financial Crisis Lurks Underground ).

For all that, the shale oil producers still couldn't make money at it. If interest rates go up, the industry will choke on the debt it has already accumulated and lose access to new loans. If the Fed reverses its current course - say, to rescue the stock and bond markets - then the shale oil industry has perhaps three more years before it collapses on a geological basis, maybe less. After that, we're out of tricks. It will affect everything.

The perceived solution is to run all our stuff on electricity, with the electricity produced by other means than fossil fuels , so-called alt energy. This will only happen on the most limited basis and perhaps not at all. (And it is apart from the question of the decrepit electric grid itself.) What's required is a political conversation about how we inhabit the landscape, how we do business, and what kind of business we do. The prospect of dismantling suburbia -- or at least moving out of it -- is evidently unthinkable. But it's going to happen whether we make plans and policies, or we're dragged kicking and screaming away from it.

Corporate tyranny

The nation is groaning under despotic corporate rule. The fragility of these operations is moving toward criticality. As with shale oil, they depend largely on dishonest financial legerdemain. They are also threatened by the crack-up of globalism, and its 12,000-mile supply lines, now well underway. Get ready for business at a much smaller scale.

Hard as this sounds, it presents great opportunities for making Americans useful again, that is, giving them something to do, a meaningful place in society, and livelihoods.

The implosion of national chain retail is already underway. Amazon is not the answer, because each Amazon sales item requires a separate truck trip to its destination, and that just doesn't square with our energy predicament. We've got to rebuild main street economies and the layers of local and regional distribution that support them. That's where many jobs and careers are.

Climate change is most immediately affecting farming. 2018 will be a year of bad harvests in many parts of the world. Agri-biz style farming, based on oil-and-gas plus bank loans is a ruinous practice, and will not continue in any case. Can we make choices and policies to promote a return to smaller scale farming with intelligent methods rather than just brute industrial force plus debt? If we don't, a lot of people will starve to death. By the way, here is the useful work for a large number of citizens currently regarded as unemployable for one reason or another.

Pervasive racketeering rules because we allow it to, especially in education and medicine. Both are self-destructing under the weight of their own money-grubbing schemes. Both are destined to be severely downscaled.

A lot of colleges will go out of business. Most college loans will never be paid back (and the derivatives based on them will blow up).

We need millions of small farmers more than we need millions of communications majors with a public relations minor. It may be too late for a single-payer medical system. A collapsing oil-based industrial economy means a lack of capital, and fiscal hocus-pocus is just another form of racketeering. Medicine will have to get smaller and less complex and that means local clinic-based health care. Lots of careers there, and that is where things are going, so get ready.

Government over-reach

The leviathan state is too large, too reckless, and too corrupt. Insolvency will eventually reduce its scope and scale. Most immediately, the giant matrix of domestic spying agencies has turned on American citizens.

It will resist at all costs being dismantled or even reined in. One task at hand is to prosecute the people in the Department of Justice and the FBI who ran illegal political operations in and around the 2016 election. These are agencies which use their considerable power to destroy the lives of individual citizens. Their officers must answer to grand juries.

As with everything else on the table for debate, the reach and scope of US imperial arrangements has to be reduced. It's happening already, whether we like it or not, as geopolitical relations shift drastically and the other nations on the planet scramble for survival in a post-industrial world that will be a good deal harsher than the robotic paradise of digitally "creative" economies that the credulous expect.

This country has enough to do within its own boundaries to prepare for survival without making extra trouble for itself and other people around the world. As a practical matter, this means close as many overseas bases as possible, as soon as possible.

As we get back to business tomorrow, ask yourself where you stand in the blather-storm of false issues and foolish ideas, in contrast to the things that actually matter.

#### [Jul 28, 2018] American Society Would Collapse If It Were not For These 8 Myths by Lee Camp

##### "... Try maintaining your privacy for a week without a single email, web search or location data set collected by the NSA and the telecoms. ..."
###### Jul 27, 2018 | www.zerohedge.com

Our society should've collapsed by now. You know that, right?

No society should function with this level of inequality (with the possible exception of one of those prison planets in a "Star Wars" movie). Sixty-three percent of Americans can't afford a $500 emergency . Yet Amazon head Jeff Bezos is now worth a record$141 billion . He could literally end world hunger for multiple years and still have more money left over than he could ever spend on himself.

Worldwide, one in 10 people only make 2 a day. Do you know how long it would take one of those people to make the same amount as Jeff Bezos has? 193 million years . (If they only buy single-ply toilet paper.) Put simply, you cannot comprehend the level of inequality in our current world or even just our nation. So shouldn't there be riots in the streets every day? Shouldn't it all be collapsing? Look outside. The streets aren't on fire. No one is running naked and screaming (usually). Does it look like everyone's going to work at gunpoint? No. We're all choosing to continue on like this. Why? Well, it comes down to the myths we've been sold. Myths that are ingrained in our social programming from birth, deeply entrenched, like an impacted wisdom tooth. These myths are accepted and basically never questioned. I'm going to cover eight of them. There are more than eight. There are probably hundreds. But I'm going to cover eight because (A) no one reads a column titled "Hundreds of Myths of American Society," (B) these are the most important ones and (C) we all have other shit to do. Myth No. 8 -- We have a democracy. If you think we still have a democracy or a democratic republic, ask yourself this: When was the last time Congress did something that the people of America supported that did not align with corporate interests? You probably can't do it. It's like trying to think of something that rhymes with "orange." You feel like an answer exists but then slowly realize it doesn't. Even the Carter Center and former President Jimmy Carter believe that America has been transformed into an oligarchy : A small, corrupt elite control the country with almost no input from the people. The rulers need the myth that we're a democracy to give us the illusion of control. Myth No. 7 -- We have an accountable and legitimate voting system. Gerrymandering, voter purging, data mining, broken exit polling, push polling, superdelegates, electoral votes, black-box machines, voter ID suppression, provisional ballots, super PACs, dark money, third parties banished from the debates and two corporate parties that stand for the same goddamn pile of fetid crap! What part of this sounds like a legitimate election system? No, we have what a large Harvard study called the worst election system in the Western world . Have you ever seen where a parent has a toddler in a car seat, and the toddler has a tiny, brightly colored toy steering wheel so he can feel like he's driving the car? That's what our election system is -- a toy steering wheel. Not connected to anything. We all sit here like infants, excitedly shouting, "I'm steeeeering !" And I know it's counterintuitive, but that's why you have to vote. We have to vote in such numbers that we beat out what's stolen through our ridiculous rigged system. Myth No. 6 -- We have an independent media that keeps the rulers accountable. Our media outlets are funded by weapons contractors, big pharma, big banks, big oil and big, fat hard-on pills. (Sorry to go hard on hard-on pills, but we can't get anything resembling hard news because it's funded by dicks.) The corporate media's jobs are to rally for war, cheer for Wall Street and froth at the mouth for consumerism. It's their mission to actually fortify belief in the myths I'm telling you about right now. Anybody who steps outside that paradigm is treated like they're standing on a playground wearing nothing but a trench coat. Myth No. 5 -- We have an independent judiciary. The criminal justice system has become a weapon wielded by the corporate state. This is how bankers can foreclose on millions of homes illegally and see no jail time, but activists often serve jail time for nonviolent civil disobedience. Chris Hedges recently noted , "The most basic constitutional rights have been erased for many. Our judicial system, as Ralph Nader has pointed out, has legalized secret law, secret courts, secret evidence, secret budgets and secret prisons in the name of national security." If you're not part of the monied class, you're pressured into releasing what few rights you have left. According to The New York Times , "97 percent of federal cases and 94 percent of state cases end in plea bargains, with defendants pleading guilty in exchange for a lesser sentence." That's the name of the game. Pressure people of color and poor people to just take the plea deal because they don't have a million dollars to spend on a lawyer. (At least not one who doesn't advertise on beer coasters.) Myth No. 4 -- The police are here to protect you. They're your friends . That's funny. I don't recall my friend pressuring me into sex to get out of a speeding ticket. (Which is essentially still legal in 32 states .) The police in our country are primarily designed to do two things: protect the property of the rich and perpetrate the completely immoral war on drugs -- which by definition is a war on our own people . We lock up more people than any other country on earth . Meaning the land of the free is the largest prison state in the world. So all these droopy-faced politicians and rabid-talking heads telling you how awful China is on human rights or Iran or North Korea -- none of them match the numbers of people locked up right here under Lady Liberty's skirt. Myth No. 3 -- Buying will make you happy. This myth (Buying will make you happy) is put forward mainly by the floods of advertising we take in but also by our social engineering. Most of us feel a tenacious emptiness, an alienation deep down behind our surface emotions (for a while I thought it was gas). That uneasiness is because most of us are flushing away our lives at jobs we hate before going home to seclusion boxes called houses or apartments. We then flip on the TV to watch reality shows about people who have it worse than we do (which we all find hilarious). If we're lucky, we'll make enough money during the week to afford enough beer on the weekend to help it all make sense. (I find it takes at least four beers for everything to add up.) But that doesn't truly bring us fulfillment. So what now? Well, the ads say buying will do it. Try to smother the depression and desperation under a blanket of flat-screen TVs, purses and Jet Skis. Now does your life have meaning? No? Well, maybe you have to drive that Jet Ski a little faster! Crank it up until your bathing suit flies off and you'll feel alive ! The dark truth is that we have to believe the myth that consuming is the answer or else we won't keep running around the wheel. And if we aren't running around the wheel, then we start thinking, start asking questions. Those questions are not good for the ruling elite, who enjoy a society based on the daily exploitation of 99 percent of us. Myth No. 2 -- If you work hard, things will get better. According to Deloitte's Shift Index survey : "80% of people are dissatisfied with their jobs" and "[t]he average person spends 90,000 hours at work over their lifetime." That's about one-seventh of your life -- and most of it is during your most productive years. Ask yourself what we're working for. To make money? For what? Almost none of us are doing jobs for survival anymore. Once upon a time, jobs boiled down to: I plant the food -- >I eat the food -- >If I don't plant food = I die. But nowadays, if you work at a café -- will someone die if they don't get their super-caf-mocha-frap-almond-piss-latte? I kinda doubt they'll keel over from a blueberry scone deficiency. If you work at Macy's, will customers perish if they don't get those boxer briefs with the sweat-absorbent-ass fabric? I doubt it. And if they do die from that, then their problems were far greater than you could've known. So that means we're all working to make other people rich because we have a society in which we have to work. Technological advancements can do most everything that truly must get done. So if we wanted to, we could get rid of most work and have tens of thousands of more hours to enjoy our lives. But we're not doing that at all. And no one's allowed to ask these questions -- not on your mainstream airwaves at least. Even a half-step like universal basic income is barely discussed because it doesn't compute with our cultural programming. Scientists say it's quite possible artificial intelligence will take away all human jobs in 120 years . I think they know that will happen because bots will take the jobs and then realize that 80 percent of them don't need to be done! The bots will take over and then say, "Stop it. Stop spending a seventh of your life folding shirts at Banana Republic." One day, we will build monuments to the bot that told us to enjoy our lives and leave the shirts wrinkly. And this leads me to the largest myth of our American society. Myth No. 1 -- You are free. ... ... ... Try sleeping in your car for more than a few hours without being harassed by police. Try maintaining your privacy for a week without a single email, web search or location data set collected by the NSA and the telecoms. Try signing up for the military because you need college money and then one day just walking off the base, going, "Yeah, I was bored. Thought I would just not do this anymore." Try explaining to Kentucky Fried Chicken that while you don't have the green pieces of paper they want in exchange for the mashed potatoes, you do have some pictures you've drawn on a napkin to give them instead. Try running for president as a third-party candidate. (Jill Stein was shackled and chained to a chair by police during one of the debates.) Try using the restroom at Starbucks without buying something while black. We are less free than a dog on a leash. We live in one of the hardest-working, most unequal societies on the planet with more billionaires than ever . Meanwhile, Americans supply 94 percent of the paid blood used worldwide. And it's almost exclusively coming from very poor people. This abusive vampire system is literally sucking the blood from the poor. Does that sound like a free decision they made? Or does that sound like something people do after immense economic force crushes down around them? (One could argue that sperm donation takes a little less convincing.) Point is, in order to enforce this illogical, immoral system, the corrupt rulers -- most of the time -- don't need guns and tear gas to keep the exploitation mechanisms humming along. All they need are some good, solid bullshit myths for us all to buy into, hook, line and sinker. Some fairy tales for adults. It's time to wake up. bobcatz -> powow Fri, 07/27/2018 - 16:43 Permalink Myth #9: America is not an Israeli colony DingleBarryObummer -> bobcatz Fri, 07/27/2018 - 16:49 Permalink #10: Muh 6 Gorillion #11: Building 7 bfellow -> DingleBarryObummer Fri, 07/27/2018 - 16:55 Permalink 815M people chronically malnourished according to the UN. Bezos is worth141B.

$141B / 815M people =$173 per person. That would definitely not feed them for "multiple years". And that's only if Bezos could fully liquidate the stock without it dropping a penny.

Author lost me right there.

Oldguy05 -> Oldguy05 Fri, 07/27/2018 - 22:25 Permalink

" Point is, in order to enforce this illogical, immoral system, the corrupt rulers -- most of the time -- don't need guns and tear gas to keep the exploitation mechanisms humming along. All they need are some good, solid bullshit myths for us all to buy into, hook, line and sinker. Some fairy tales for adults. "

Seems like there's tear gas in the air and guns are going to be used soon. The myths are dying on the tongues of the liars. Molon Labe!....and I'm usually a pacifist.

BennyBoy -> Nunny Fri, 07/27/2018 - 18:51 Permalink

"American Society Would Collapse If It Weren't For Invasions Of Foreign Countries, Murdering Their People, Stealing Their Oil Then Blaming Them For Making The US Do It."

Oldguy05 -> Nunny Fri, 07/27/2018 - 22:43 Permalink

Eisenhower's speeches were awesome and true. But he was right there doing the same shit. Was he feeling guilty in the end?

Proofreder -> vato poco Fri, 07/27/2018 - 18:39 Permalink

Freedom - just another word for nothing left to lose ...

east of eden -> vato poco Fri, 07/27/2018 - 18:55 Permalink

Well, in a world driven by oil, it is entirely bogus to suggest that citizens have to work their asses off. That was the whole point of the bill of goods that was sold to us in the late 70's and early 80'. More leisure time, more time for your family and personal interests.

Except! It never happened. All they fucking did was reduce real wages and force everyone from the upper middle class down, into a shit hole.

But, they will pay for their folly. Guaran-fucking-teed.

TheEndIsNear -> HopefulCynical Fri, 07/27/2018 - 18:33 Permalink

As one who has hoed many rows of cotton in 115F temperatures as well as picking cotton during my childhood and early adolescence during weekends and school holidays, I concur. It was a very powerful inducement to get a good education back when schools actually taught things and did not tolerate backtalk or guff from students instead of babysitting them. It worked, and I ended up writing computer software for spacecraft, which was much fun than working in the fields.

#### [Mar 12, 2018] There is no democracy without economic democracy by Jason Hirthler

##### "... The enduring lie is that there is no democracy without economic democracy. ..."

Part 3 - A False Promise

This 'Washington Consensus' is the false promise promoted by the West. The reality is quite different. The crux of neoliberalism is to eliminate democratic government by downsizing, privatizing, and deregulating it. Proponents of neoliberalism recognize that the state is the last bulwark of protection for the common people against the predations of capital. Remove the state and they'll be left defenseless .

Think about it. Deregulation eliminates the laws. Downsizing eliminates departments and their funding. Privatizing eliminates the very purpose of the state by having the private sector take over its traditional responsibilities.

Ultimately, nation-states would dissolve except perhaps for armies and tax systems. A large, open-border global free market would be left, not subject to popular control but managed by a globally dispersed, transnational one percent. And the whole process of making this happen would be camouflaged beneath the altruistic stylings of a benign humanitarianism.

Globalists, as neoliberal capitalists are often called, also understood that democracy, defined by a smattering of individual rights and a voting booth, was the ideal vehicle to usher neoliberalism into the emerging world. Namely because democracy, as commonly practiced, makes no demands in the economic sphere. Socialism does. Communism does. These models directly address ownership of the means of production. Not so democratic capitalism. This permits the globalists to continue to own the means of production while proclaiming human rights triumphant in nations where interventions are staged.

The enduring lie is that there is no democracy without economic democracy.

What matters to the one percent and the media conglomerates that disseminate their worldview is that the official definitions are accepted by the masses. The real effects need never be known. The neoliberal ideology (theory) thus conceals the neoliberal reality (practice). And for the masses to accept it, it must be mass produced. Then it becomes more or less invisible by virtue of its universality.

#### [Dec 22, 2017] Beyond Cynicism America Fumbles Towards Kafka s Castle by James Howard Kunstler

##### "... E.g. Germany. Germany is anything but perfect and its recent government has screwed up with its immigration policies. But Germany has a high standard of living, an educated work force (including unions and skilled crafts-people), a more rational distribution of wealth and high quality universal health care that costs 47% less per capita than in the U.S. and with no intrinsic need to maraud around the planet wasting gobs of taxpayer money playing Global Cop. ..."
##### "... The larger subtext is that the U.S. house of cards was planned out and constructed as deliberately as the German model was. Only the objective was not to maximize the health and happiness of the citizenry, but to line the pockets of the parasitic Elites. (E.g., note that Mitch McConnell has been a government employee for 50 years but somehow acquired a net worth of over $10 Million.) ..." ###### Dec 12, 2017 | www.theamericanconservative.com On America's 'long emergency' of recession, globalization, and identity politics. Can a people recover from an excursion into unreality? The USA's sojourn into an alternative universe of the mind accelerated sharply after Wall Street nearly detonated the global financial system in 2008. That debacle was only one manifestation of an array of accumulating threats to the postmodern order, which include the burdens of empire, onerous debt, population overshoot, fracturing globalism, worries about energy, disruptive technologies, ecological havoc, and the specter of climate change. A sense of gathering crisis, which I call the long emergency , persists. It is systemic and existential. It calls into question our ability to carry on "normal" life much farther into this century, and all the anxiety that attends it is hard for the public to process. It manifested itself first in finance because that was the most abstract and fragile of all the major activities we depend on for daily life, and therefore the one most easily tampered with and shoved into criticality by a cadre of irresponsible opportunists on Wall Street. Indeed, a lot of households were permanently wrecked after the so-called Great Financial Crisis of 2008, despite official trumpet blasts heralding "recovery" and the dishonestly engineered pump-up of capital markets since then. With the election of 2016, symptoms of the long emergency seeped into the political system. Disinformation rules. There is no coherent consensus about what is happening and no coherent proposals to do anything about it. The two parties are mired in paralysis and dysfunction and the public's trust in them is at epic lows. Donald Trump is viewed as a sort of pirate president, a freebooting freak elected by accident, "a disrupter" of the status quo at best and at worst a dangerous incompetent playing with nuclear fire. A state of war exists between the White House, the permanent D.C. bureaucracy, and the traditional news media. Authentic leadership is otherwise AWOL. Institutions falter. The FBI and the CIA behave like enemies of the people. Bad ideas flourish in this nutrient medium of unresolved crisis. Lately, they actually dominate the scene on every side. A species of wishful thinking that resembles a primitive cargo cult grips the technocratic class, awaiting magical rescue remedies that promise to extend the regime of Happy Motoring, consumerism, and suburbia that makes up the armature of "normal" life in the USA. They chatter about electric driverless car fleets, home delivery drone services, and as-yet-undeveloped modes of energy production to replace problematic fossil fuels, while ignoring the self-evident resource and capital constraints now upon us and even the laws of physics -- especially entropy , the second law of thermodynamics. Their main mental block is their belief in infinite industrial growth on a finite planet, an idea so powerfully foolish that it obviates their standing as technocrats. The non-technocratic cohort of the thinking class squanders its waking hours on a quixotic campaign to destroy the remnant of an American common culture and, by extension, a reviled Western civilization they blame for the failure in our time to establish a utopia on earth. By the logic of the day, "inclusion" and "diversity" are achieved by forbidding the transmission of ideas, shutting down debate, and creating new racially segregated college dorms. Sexuality is declared to not be biologically determined, yet so-called cis-gendered persons (whose gender identity corresponds with their sex as detected at birth) are vilified by dint of not being "other-gendered" -- thereby thwarting the pursuit of happiness of persons self-identified as other-gendered. Casuistry anyone? The universities beget a class of what Nassim Taleb prankishly called "intellectuals-yet-idiots," hierophants trafficking in fads and falsehoods, conveyed in esoteric jargon larded with psychobabble in support of a therapeutic crypto-gnostic crusade bent on transforming human nature to fit the wished-for utopian template of a world where anything goes. In fact, they have only produced a new intellectual despotism worthy of Stalin, Mao Zedong, and Pol Pot. In case you haven't been paying attention to the hijinks on campus -- the attacks on reason, fairness, and common decency, the kangaroo courts, diversity tribunals, assaults on public speech and speakers themselves -- here is the key take-away: it's not about ideas or ideologies anymore; it's purely about the pleasures of coercion, of pushing other people around. Coercion is fun and exciting! In fact, it's intoxicating, and rewarded with brownie points and career advancement. It's rather perverse that this passion for tyranny is suddenly so popular on the liberal left. Until fairly recently, the Democratic Party did not roll that way. It was right-wing Republicans who tried to ban books, censor pop music, and stifle free expression. If anything, Democrats strenuously defended the First Amendment, including the principle that unpopular and discomforting ideas had to be tolerated in order to protect all speech. Back in in 1977 the ACLU defended the right of neo-Nazis to march for their cause (National Socialist Party of America v. Village of Skokie, 432 U.S. 43). The new and false idea that something labeled "hate speech" -- labeled by whom? -- is equivalent to violence floated out of the graduate schools on a toxic cloud of intellectual hysteria concocted in the laboratory of so-called "post-structuralist" philosophy, where sundry body parts of Michel Foucault, Jacques Derrida, Judith Butler, and Gilles Deleuze were sewn onto a brain comprised of one-third each Thomas Hobbes, Saul Alinsky, and Tupac Shakur to create a perfect Frankenstein monster of thought. It all boiled down to the proposition that the will to power negated all other human drives and values, in particular the search for truth. Under this scheme, all human relations were reduced to a dramatis personae of the oppressed and their oppressors, the former generally "people of color" and women, all subjugated by whites, mostly males. Tactical moves in politics among these self-described "oppressed" and "marginalized" are based on the credo that the ends justify the means (the Alinsky model). This is the recipe for what we call identity politics, the main thrust of which these days, the quest for "social justice," is to present a suit against white male privilege and, shall we say, the horse it rode in on: western civ. A peculiar feature of the social justice agenda is the wish to erect strict boundaries around racial identities while erasing behavioral boundaries, sexual boundaries, and ethical boundaries. Since so much of this thought-monster is actually promulgated by white college professors and administrators, and white political activists, against people like themselves, the motives in this concerted campaign might appear puzzling to the casual observer. I would account for it as the psychological displacement among this political cohort of their shame, disappointment, and despair over the outcome of the civil rights campaign that started in the 1960s and formed the core of progressive ideology. It did not bring about the hoped-for utopia. The racial divide in America is starker now than ever, even after two terms of a black president. Today, there is more grievance and resentment, and less hope for a better future, than when Martin Luther King made the case for progress on the steps of the Lincoln Memorial in 1963. The recent flash points of racial conflict -- Ferguson, the Dallas police ambush, the Charleston church massacre, et cetera -- don't have to be rehearsed in detail here to make the point that there is a great deal of ill feeling throughout the land, and quite a bit of acting out on both sides. The black underclass is larger, more dysfunctional, and more alienated than it was in the 1960s. My theory, for what it's worth, is that the civil rights legislation of 1964 and '65, which removed legal barriers to full participation in national life, induced considerable anxiety among black citizens over the new disposition of things, for one reason or another. And that is exactly why a black separatism movement arose as an alternative at the time, led initially by such charismatic figures as Malcolm X and Stokely Carmichael. Some of that was arguably a product of the same youthful energy that drove the rest of the Sixties counterculture: adolescent rebellion. But the residue of the "Black Power" movement is still present in the widespread ambivalence about making covenant with a common culture, and it has only been exacerbated by a now long-running "multiculturalism and diversity" crusade that effectively nullifies the concept of a national common culture. What follows from these dynamics is the deflection of all ideas that don't feed a narrative of power relations between oppressors and victims, with the self-identified victims ever more eager to exercise their power to coerce, punish, and humiliate their self-identified oppressors, the "privileged," who condescend to be abused to a shockingly masochistic degree. Nobody stands up to this organized ceremonial nonsense. The punishments are too severe, including the loss of livelihood, status, and reputation, especially in the university. Once branded a "racist," you're done. And venturing to join the oft-called-for "honest conversation about race" is certain to invite that fate. Globalization has acted, meanwhile, as a great leveler. It destroyed what was left of the working class -- the lower-middle class -- which included a great many white Americans who used to be able to support a family with simple labor. Hung out to dry economically, this class of whites fell into many of the same behaviors as the poor blacks before them: absent fathers, out-of-wedlock births, drug abuse. Then the Great Financial Crisis of 2008 wiped up the floor with the middle-middle class above them, foreclosing on their homes and futures, and in their desperation many of these people became Trump voters -- though I doubt that Trump himself truly understood how this all worked exactly. However, he did see that the white middle class had come to identify as yet another victim group, allowing him to pose as their champion. The evolving matrix of rackets that prompted the 2008 debacle has only grown more elaborate and craven as the old economy of stuff dies and is replaced by a financialized economy of swindles and frauds . Almost nothing in America's financial life is on the level anymore, from the mendacious "guidance" statements of the Federal Reserve, to the official economic statistics of the federal agencies, to the manipulation of all markets, to the shenanigans on the fiscal side, to the pervasive accounting fraud that underlies it all. Ironically, the systematic chiseling of the foundering middle class is most visible in the rackets that medicine and education have become -- two activities that were formerly dedicated to doing no harm and seeking the truth ! Life in this milieu of immersive dishonesty drives citizens beyond cynicism to an even more desperate state of mind. The suffering public ends up having no idea what is really going on, what is actually happening. The toolkit of the Enlightenment -- reason, empiricism -- doesn't work very well in this socioeconomic hall of mirrors, so all that baggage is discarded for the idea that reality is just a social construct, just whatever story you feel like telling about it. On the right, Karl Rove expressed this point of view some years ago when he bragged, of the Bush II White House, that "we make our own reality." The left says nearly the same thing in the post-structuralist malarkey of academia: "you make your own reality." In the end, both sides are left with a lot of bad feelings and the belief that only raw power has meaning. Erasing psychological boundaries is a dangerous thing. When the rackets finally come to grief -- as they must because their operations don't add up -- and the reckoning with true price discovery commences at the macro scale, the American people will find themselves in even more distress than they've endured so far. This will be the moment when either nobody has any money, or there is plenty of worthless money for everyone. Either way, the functional bankruptcy of the nation will be complete, and nothing will work anymore, including getting enough to eat. That is exactly the moment when Americans on all sides will beg someone to step up and push them around to get their world working again. And even that may not avail. James Howard Kunstler's many books include The Geography of Nowhere, The Long Emergency, Too Much Magic: Wishful Thinking, Technology, and the Fate of the Nation , and the World Made by Hand novel series. He blogs on Mondays and Fridays at Kunstler.com . Whine Merchant December 20, 2017 at 10:49 pm Wow – is there ever negative! Celery , says: December 20, 2017 at 11:33 pm I think I need to go listen to an old-fashioned Christmas song now. The ability to be financially, or at least resource, sustaining is the goal of many I know since we share a lack of confidence in any of our institutions. We can only hope that God might look down with compassion on us, but He's not in the practical plan of how to feed and sustain ourselves when things play out to their inevitable end. Having come from a better time, we joke about our dystopian preparations, self-conscious about our "overreaction," but preparing all the same. Merry Christmas! Fran Macadam , says: December 20, 2017 at 11:55 pm Look at it this way: Germany had to be leveled and its citizens reduced to abject penury, before Volkswagen could become the world's biggest car company, and autobahns built throughout the world. It will be darkest before the dawn, and hopefully, that light that comes after, won't be the miniature sunrise of a nuclear conflagration. KD , says: December 21, 2017 at 6:02 am Eat, Drink, and be Merry, you can charge it on your credit card! Rock Stehdy , says: December 21, 2017 at 6:38 am Hard words, but true. Kunstler is always worth reading for his common-sense wisdom. Helmut , says: December 21, 2017 at 7:04 am An excellent summary and bleak reminder of what our so-called civilization has become. How do we extricate ourselves from this strange death spiral? I have long suspected that we humans are creatures of our own personal/group/tribal/national/global fables and mythologies. We are compelled by our genes, marrow, and blood to tell ourselves stories of our purpose and who we are. It is time for new mythologies and stories of "who we are". This bizarre hyper-techno all-for-profit world needs a new story. Liam , says: December 21, 2017 at 7:38 am "The black underclass is larger, more dysfunctional, and more alienated than it was in the 1960s. My theory, for what it's worth, is that the civil rights legislation of 1964 and '65, which removed legal barriers to full participation in national life, induced considerable anxiety among black citizens over the new disposition of things, for one reason or another." Um, forgotten by Kunstler is the fact that 1965 was also the year when the USA reopened its doors to low-skilled immigrants from the Third World – who very quickly became competitors with black Americans. And then the Boom ended, and corporate American, influenced by thinking such as that displayed in Lewis Powell's (in)famous 1971 memorandum, decided to claw back the gains made by the working and middle classes in the previous 3 decades. Peter , says: December 21, 2017 at 8:34 am I have some faith that the American people can recover from an excursion into unreality. I base it on my own survival to the end of this silly rant. SteveM , says: December 21, 2017 at 9:08 am Re: Whine Merchant, "Wow – is there ever negative!" Can't argue with the facts P.S. Merry Christmas. Dave Wright , says: December 21, 2017 at 9:22 am Hey Jim, I know you love to blame Wall Street and the Republicans for the GFC. I remember back in '08 you were urging Democrats to blame it all on Republicans to help Obama win. But I have news for you. It wasn't Wall Street that caused the GFC. The crisis actually had its roots in the Clinton Administration's use of the Community Reinvestment Act to pressure banks to relax mortgage underwriting standards. This was done at the behest of left wing activists who claimed (without evidence, of course) that the standards discriminated against minorities. The result was an effective repeal of all underwriting standards and an explosion of real estate speculation with borrowed money. Speculation with borrowed money never ends well. I have to laugh, too, when you say that it's perverse that the passion for tyranny is popular on the left. Have you ever heard of the French Revolution? How about the USSR? Communist China? North Korea? Et cetera. Leftism is leftism. Call it Marxism, Communism, socialism, liberalism, progressivism, or what have you. The ideology is the same. Only the tactics and methods change. Destroy the evil institutions of marriage, family, and religion, and Man's innate goodness will shine forth, and the glorious Godless utopia will naturally result. Of course, the father of lies is ultimately behind it all. "He was a liar and a murderer from the beginning." When man turns his back on God, nothing good happens. That's the most fundamental problem in Western society today. Not to say that there aren't other issues, but until we return to God, there's not much hope for improvement. NoahK , says: December 21, 2017 at 10:15 am It's like somebody just got a bunch of right-wing talking points and mashed them together into one incohesive whole. This is just lazy. Andrew Imlay , says: December 21, 2017 at 10:36 am Hmm. I just wandered over here by accident. Being a construction contractor, I don't know enough about globalization, academia, or finance to evaluate your assertions about those realms. But being in a biracial family, and having lived, worked, and worshiped equally in white and black communities, I can evaluate your statements about social justice, race, and civil rights. Long story short, you pick out fringe liberal ideas, misrepresent them as mainstream among liberals, and shoot them down. Casuistry, anyone? You also misrepresent reality to your readers. No, the black underclass is not larger, more dysfunctional, and more alienated now than in the 1960's, when cities across the country burned and machine guns were stationed on the Capitol steps. The "racial divide" is not "starker now than ever"; that's just preposterous to anyone who was alive then. And nobody I've ever known felt "shame" over the "outcome of the civil rights campaign". I know nobody who seeks to "punish and humiliate" the 'privileged'. I get that this column is a quick toss-off before the holiday, and that your strength is supposed to be in your presentation, not your ideas. For me, it's a helpful way to rehearse debunking common tropes that I'll encounter elsewhere. But, really, your readers deserve better, and so do the people you misrepresent. We need bad liberal ideas to be critiqued while they're still on the fringe. But by calling fringe ideas mainstream, you discredit yourself, misinform your readers, and contribute to stereotypes both of liberals and of conservatives. I'm looking for serious conservative critiques that help me take a second look at familiar ideas. I won't be back. peter in boston , says: December 21, 2017 at 10:48 am Love Kunstler -- and love reading him here -- but he needs a strong editor to get him to turn a formless harangue into clear essay. Someone in the crowd , says: December 21, 2017 at 11:07 am I disagree, NoahK, that the whole is incohesive, and I also disagree that these are right-wing talking points. The theme of this piece is the long crisis in the US, its nature and causes. At no point does this essay, despite it stream of consciousness style, veer away from that theme. Hence it is cohesive. As for the right wing charge, though it is true, to be sure, that Kunstler's position is in many respects classically conservative -- he believes for example that there should be a national consensus on certain fundamentals, such as whether or not there are two sexes (for the most part), or, instead, an infinite variety of sexes chosen day by day at whim -- you must have noticed that he condemned both the voluntarism of Karl Rove AND the voluntarism of the post-structuralist crowd. My impression is that what Kunstler is doing here is diagnosing the long crisis of a decadent liberal post-modernity, and his stance is not that of either of the warring sides within our divorced-from-reality political establishment, neither that of the 'right' or 'left.' Which is why, logically, he published it here. National Review would never have accepted this piece. QED. Jon , says: December 21, 2017 at 11:10 am This malaise is rooted in human consciousness that when reflecting on itself celebrating its capacity for apperception suffers from the tension that such an inquiry, such an inward glance produces. In a word, the capacity for the human being to be aware of his or herself as an intelligent being capable of reflecting on aspects of reality through the artful manipulation of symbols engenders this tension, this angst. Some will attempt to extinguish this inner tension through intoxication while others through the thrill of war, and it has been played out since the dawn of man and well documented when the written word emerged. The malaise which Mr. Kunstler addresses as the problem of our times is rooted in our existence from time immemorial. But the problem is not only existential but ontological. It is rooted in our being as self-aware creatures. Thus no solution avails itself as humanity in and of itself is the problem. Each side (both right and left) seeks its own anodyne whether through profligacy or intolerance, and each side mans the barricades to clash experiencing the adrenaline rush that arises from the perpetual call to arms. Joe the Plutocrat , says: December 21, 2017 at 11:27 am "Globalization has acted, meanwhile, as a great leveler. It destroyed what was left of the working class -- the lower-middle class -- which included a great many white Americans who used to be able to support a family with simple labor." And to whom do we hand the tab for this? Globalization is a word. It is a concept, a talking point. Globalization is oligarchy by another name. Unfortunately, under-educated, deplorable, Americans; regardless of party affiliation/ideology have embraced. And the most ironic part? Russia and China (the eventual surviving oligarchies) will eventually have to duke it out to decide which superpower gets to make the USA it's b*tch (excuse prison reference, but that's where we're headed folks). And one more irony. Only in American, could Christianity, which was grew from concepts like compassion, generosity, humility, and benevolence; be re-branded and 'weaponized' to further greed, bigotry, misogyny, intolerance, and violence/war. Americans fiddled (over same sex marriage, abortion, who has to bake wedding cakes, and who gets to use which public restroom), while the oligarchs burned the last resources (natural, financial, and even legal). The scientist 880 , says: December 21, 2017 at 11:48 am "Today, there is more grievance and resentment, and less hope for a better future, than when Martin Luther King made the case for progress on the steps of the Lincoln Memorial in 1963." Spoken like a white guy who has zero contact with black people. I mean, even a little bit of research and familiarity would give lie to the idea that blacks are more pessimistic about life today than in the 1960's. Black millenials are the most optimistic group of Americans about the future. Anyone who has spent any significant time around older black people will notice that you don't hear the rose colored memories of the past. Black people don't miss the 1980's, much less the 1950's. Young black people are told by their elders how lucky they are to grow up today because things are much better than when grandpa was our age and we all know this history.\ It's clear that this part of the article was written from absolute ignorance of the actual black experience with no interest in even looking up some facts. Hell, Obama even gave a speech at Howard telling graduates how lucky they were to be young and black Today compared to even when he was their age in the 80's! Here is the direct quote; "In my inaugural address, I remarked that just 60 years earlier, my father might not have been served in a D.C. restaurant -- at least not certain of them. There were no black CEOs of Fortune 500 companies. Very few black judges. Shoot, as Larry Wilmore pointed out last week, a lot of folks didn't even think blacks had the tools to be a quarterback. Today, former Bull Michael Jordan isn't just the greatest basketball player of all time -- he owns the team. (Laughter.) When I was graduating, the main black hero on TV was Mr. T. (Laughter.) Rap and hip hop were counterculture, underground. Now, Shonda Rhimes owns Thursday night, and Beyoncé runs the world. (Laughter.) We're no longer only entertainers, we're producers, studio executives. No longer small business owners -- we're CEOs, we're mayors, representatives, Presidents of the United States. (Applause.) I am not saying gaps do not persist. Obviously, they do. Racism persists. Inequality persists. Don't worry -- I'm going to get to that. But I wanted to start, Class of 2016, by opening your eyes to the moment that you are in. If you had to choose one moment in history in which you could be born, and you didn't know ahead of time who you were going to be -- what nationality, what gender, what race, whether you'd be rich or poor, gay or straight, what faith you'd be born into -- you wouldn't choose 100 years ago. You wouldn't choose the fifties, or the sixties, or the seventies. You'd choose right now. If you had to choose a time to be, in the words of Lorraine Hansberry, "young, gifted, and black" in America, you would choose right now. (Applause.)" https://www.politico.com/story/2016/05/obamas-howard-commencement-transcript-222931 https://www.google.com/amp/s/m.huffpost.com/us/entry/us_58cf1d9ae4b0ec9d29dcf283/amp Adam , says: December 21, 2017 at 11:57 am I love reading about how the Community Reinvestment Act was the catalyst of all that is wrong in the world. As someone in the industry the issue was actually twofold. The Commodities Futures Modernization Act turned the mortgage securities market into a casino with the underlying actual debt instruments multiplied through the use of additional debt instruments tied to the performance but with no actual underlying value. These securities were then sold around the world essentially infecting the entire market. In order that feed the beast, these NON GOVERNMENT loans had their underwriting standards lowered to rediculous levels. If you run out of qualified customers, just lower the qualifications. Government loans such as FHA, VA, and USDA were avoided because it was easier to qualify people with the new stuff. And get paid. The short version is all of the incentives that were in place at the time, starting with the Futures Act, directly led to the actions that culminated in the Crash. So yes, it was the government, just a different piece of legislation. SteveM , says: December 21, 2017 at 12:29 pm Kunstler itemizing the social and economic pathologies in the United States is not enough. Because there are other models that demonstrate it didn't have to be this way. E.g. Germany. Germany is anything but perfect and its recent government has screwed up with its immigration policies. But Germany has a high standard of living, an educated work force (including unions and skilled crafts-people), a more rational distribution of wealth and high quality universal health care that costs 47% less per capita than in the U.S. and with no intrinsic need to maraud around the planet wasting gobs of taxpayer money playing Global Cop. The larger subtext is that the U.S. house of cards was planned out and constructed as deliberately as the German model was. Only the objective was not to maximize the health and happiness of the citizenry, but to line the pockets of the parasitic Elites. (E.g., note that Mitch McConnell has been a government employee for 50 years but somehow acquired a net worth of over$10 Million.)

P.S. About the notionally high U.S. GDP. Factor out the TRILLIONS inexplicably hoovered up by the pathological health care system, the metastasized and sanctified National Security State (with its Global Cop shenanigans) and the cronied-up Ponzi scheme of electron-churn financialization ginned up by Goldman Sachs and the rest of the Banksters, and then see how much GDP that reflects the actual wealth of the middle class is left over.

One Guy , says: December 21, 2017 at 1:10 pm
Right-Wing Dittoheads and Fox Watchers love to blame the Community Reinvestment Act. It allows them to blame both poor black people AND the government. The truth is that many parties were to blame.
LouB , says: December 21, 2017 at 1:14 pm
One of the things I love about this rag is that almost all of the comments are included. You may be sure that similar commenting privilege doesn't exist most anywhere else.

Any disfavor regarding the supposed bleakness with the weak hearted souls aside, Mr K's broadside seems pretty spot on to me.

tzx4 , says: December 21, 2017 at 1:57 pm
I think the author overlooks the fact that government over the past 30 to 40 years has been tilting the playing field ever more towards the uppermost classes and against the middle class. The evisceration of the middle class is plain to see.

If the the common man had more money and security, lots of our current intrasocial conflicts would be far less intense.

Jeeves , says: December 21, 2017 at 2:09 pm
Andrew Imlay: You provide a thoughtful corrective to one of Kunstler's more hyperbolic claims. And you should know that his jeremiad doesn't represent usual fare at TAC. So do come back.

Whether or not every one of Kunstler's assertions can withstand a rigorous fact-check, he is a formidable rhetorician. A generous serving of Weltschmerz is just what the season calls for.

Wezz , says: December 21, 2017 at 2:44 pm
America is stupefied from propaganda on steroids for, largely from the right wing, 25? years of Limbaugh, Fox, etc etc etc Clinton hate x 10, "weapons of mass destruction", "they hate us because we are free", birtherism, death panels, Jade Helm, pedophile pizza, and more Clinton hate porn.

Americans have been taught to worship the wealthy regardless of how they got there. Americans have been taught they are "Exceptional" (better, smarter, more godly than every one else) in spite of outward appearances. Americans are under educated and encouraged to make decisions based on emotion from constant barrage of extra loud advertising from birth selling illusion.

Americans brain chemistry is most likely as messed up as the rest of their bodies from junk or molested food. Are they even capable of normal thought?

Donald Trump has convinced at least a third of Americans that only he, Fox, Breitbart and one or two other sources are telling the Truth, every one else is lying and that he is their friend.

Is it possible we are just plane doomed and there's no way out?

John Blade Wiederspan , says: December 21, 2017 at 4:26 pm
I loathe the cotton candy clown and his Quislings; however, I must admit, his presence as President of the United States has forced everyone (left, right, religious, non-religious) to look behind the curtain. He has done more to dis-spell the idealism of both liberal and conservative, Democrat and Republican, rich and poor, than any other elected official in history. The sheer amount of mind-numbing absurdity resulting from a publicity stunt that got out of control ..I am 70 and I have seen a lot. This is beyond anything I could ever imagine. America is not going to improve or even remain the same. It is in a 4 year march into worse, three years to go.
EarlyBird , says: December 21, 2017 at 5:23 pm
Sheesh. Should I shoot myself now, or wait until I get home?
dvxprime , says: December 21, 2017 at 5:46 pm
Mr. Kuntzler has an honest and fairly accurate assessment of the situation. And as usual, the liberal audience that TAC is trying so hard to reach, is tossing out their usual talking points whilst being in denial of the situation.

The Holy Bible teaches us that repentance is the first crucial step on the path towards salvation. Until the progressives, from their alleged "elite" down the rank and file at Kos, HuffPo, whatever, take a good, long, hard look at the current national dumpster fire and start claiming some responsibility, America has no chance of solving problems or fixing anything.

Slooch , says: December 21, 2017 at 7:03 pm
Kunstler must have had a good time writing this, and I had a good time reading it. Skewed perspective, wild overstatement, and obsessive cherry-picking of the rare checkable facts are mixed with a little eye of newt and toe of frog and smothered in a oar and roll of rhetoric that was thrilling to be immersed in. Good work!
jp , says: December 21, 2017 at 8:09 pm
aah, same old Kunstler, slightly retailored for the Trump years.

##### "... Sophomore Noell Conley lives there, too. She shows off the hotel-like room she shares with a roommate . ..."
##### "... "As you walk in, to the right you see our granite countertops with two sinks, one for each of the residents," she says. A partial wall separates the beds. Rather than trek down the hall to shower, they share a bathroom with the room next door. "That's really nice compared to community bathrooms that I lived in last year," Conley says. To be fair, granite countertops last longer. Tempur-Pedic is a local company - and gave a big discount. The amenities include classrooms and study space that are part of the dorm. Many of the residents are in the university's Honors program. But do student really need Apple TV in the lounges, or a smartphone app that lets them check their laundry status from afar? "Demand has been very high," says the university's Penny Cox, who is overseeing the construction of several new residence halls on campus. Before Central Hall's debut in August, the average dorm was almost half a century old, she says. That made it harder to recruit. " If you visit places like Ohio State, Michigan, Alabama," Cox says, "and you compare what we had with what they have available to offer, we were very far behind." Today colleges are competing for a more discerning consumer. Students grew up with fewer siblings, in larger homes, Cox says. They expect more privacy than previous generations - and more comforts. "These days we seem to be bringing kids up to expect a lot of material plenty," says Jean Twenge, a psychology professor at San Diego State University and author of the book "Generation Me." Those students could be in for some disappointment when they graduate , she says. "When some of these students have all these luxuries and then they get an entry-level job and they can't afford the enormous flat screen and the granite countertops," Twenge says, "then that's going to be a rude awakening." Some on campus also worry about the divide between students who can afford such luxuries and those who can't. The so-called premium dorms cost about $1,000 more per semester. Freshman Josh Johnson, who grew up in a low-income family and lives in one of the university's 1960s-era buildings, says the traditional dorm is good enough for him. ..." ##### "... "I wouldn't pay more just to live in a luxury dorm," he says. "It seems like I could just pay the flat rate and get the dorm I'm in. It's perfectly fine." In the near future students who want to live on campus won't have a choice. Eventually the university plans to upgrade all of its residence halls. ..." ##### "... Competition for students who have more sophisticated tastes than in past years is creating the perfect environment for schools to try to outdo each other with ever-more posh on-campus housing. Keeping up in the luxury dorm race is increasingly critical to a school's bottom line: A 2006 study published by the Association of Higher Education Facilities Officers found that "poorly maintained or inadequate residential facilities" was the number-one reason students rejected enrolling at institutions. PHOTO GALLERY: Click Here to See the 10 Schools with Luxury Dorms ..." ##### "... Private universities get most of the mentions on lists of schools with great dorms, as recent ratings by the Princeton Review, College Prowler, and Campus Splash make clear. But a few state schools that have invested in brand-new facilities are starting to show up on those reviews, too. ..." ##### "... While many schools offer first dibs on the nicest digs to upperclassmen on campus, as the war for student dollars ratchets up even first-year students at public colleges are living in style. Here are 10 on-campus dormitories at state schools that offer students resort-like amenities. ..." ##### "... Perhaps some students are afraid to protest for fear of being photographed or videographed and having their face and identity given to every prospective employer throughout America. Perhaps those students are afraid of being blackballed throughout the Great American Workplace if they are caught protesting anything on camera. ..." ##### "... Mao was perfectly content to promote technical education in the new China. What he deprecated (and fought to suppress) was the typical liberal arts notion of critical thinking. We're witnessing something comparable in the U.S. We're witnessing something comparable in the U.S. ..." ##### "... Many of the best students feel enormous pressure to succeed and have some inkling that their job prospects are growing narrower, but they almost universally accept this as the natural order of things. Their outlook: if there are 10 or 100 applicants for every available job, well, by golly, I just have to work that much harder and be the exceptional one who gets the job. ..." ##### "... I read things like this and think about Louis Althusser and his ideas about "Ideological State Apparatuses." While in liberal ideology the education is usually considered to be the space where opportunity to improve one's situation is founded, Althusser reached the complete opposite conclusion. For him, universities are the definitive bourgeois institution, the ideological state apparatus of the modern capitalist state par excellance . The real purpose of the university was not to level the playing field of opportunity but to preserve the advantages of the bourgeoisie and their children, allowing the class system to perpetuate/reproduce itself. ..." ##### "... My nephew asked me to help him with his college introductory courses in macroeconomics and accounting. I was disappointed to find out what was going on: no lectures by professors, no discussion sessions with teaching assistants; no team projects–just two automated correspondence courses, with automated computer graded problem sets objective tests – either multiple choice, fill in the blank with a number, or fill in the blank with a form answer. This from a public university that is charging tuition for attendance just as though it were really teaching something. All they're really certifying is that the student can perform exercises is correctly reporting what a couple of textbooks said about subjects of marginal relevance to his degree. My nephew understands exactly that this is going on, but still . ..." ##### "... The reason students accept this has to be the absolutely demobilized political culture of the United States combined with what college represents structurally to students from the middle classes: the only possibility – however remote – of achieving any kind of middle class income. ..." ##### "... Straight bullshit, but remember our school was just following the national (Neoliberal) model. ..." ###### Jun 26, 2015 | naked capitalism Yves here. In May, we wrote up and embedded the report on how NYU exploits students and adjuncts in "The Art of the Gouge": NYU as a Model for Predatory Higher Education. This article below uses that study as a point of departure for for its discussion of how higher education has become extractive. By David Masciotra, the author of Mellencamp: American Troubadour (University Press of Kentucky). He has also written for Salon, the Atlantic and the Los Angeles Review of Books. For more information visit www.davidmasciotra.com. Originally published at Alternet Higher education wears the cloak of liberalism, but in policy and practice, it can be a corrupt and cutthroat system of power and exploitation. It benefits immensely from right-wing McCarthy wannabes, who in an effort to restrict academic freedom and silence political dissent, depict universities as left-wing indoctrination centers. But the reality is that while college administrators might affix "down with the man" stickers on their office doors, many prop up a system that is severely unfair to American students and professors, a shocking number of whom struggle to make ends meet. Even the most elementary level of political science instructs that politics is about power. Power, in America, is about money: who has it? Who does not have it? Who is accumulating it? Who is losing it? Where is it going? Four hundred faculty members at New York University, one of the nation's most expensive schools, recently released a report on how their own place of employment, legally a nonprofit institution, has become a predatory business, hardly any different in ethical practice or economic procedure than a sleazy storefront payday loan operator. Its title succinctly summarizes the new intellectual discipline deans and regents have learned to master: "The Art of The Gouge." The result of their investigation reads as if Charles Dickens and Franz Kafka collaborated on notes for a novel. Administrators not only continue to raise tuition at staggering rates, but they burden their students with inexplicable fees, high cost burdens and expensive requirements like mandatory study abroad programs. When students question the basis of their charges, much of them hidden during the enrollment and registration phases, they find themselves lost in a tornadic swirl of forms, automated answering services and other bureaucratic debris. Often the additional fees add up to thousands of dollars, and that comes on top of the already hefty tuition, currently$46,000 per academic year, which is more than double its rate of 2001. Tuition at NYU is higher than most colleges, but a bachelor's degree, nearly anywhere else, still comes with a punitive price tag. According to the College Board, the average cost of tuition and fees for the 2014–2015 school year was $31,231 at private colleges,$9,139 for state residents at public colleges, and $22,958 for out-of-state residents attending public universities. Robert Reich, in his book Supercapitalism, explains that in the past 30 years the two industries with the most excessive increases in prices are health care and higher education. Lack of affordable health care is a crime, Reich argues, but at least new medicines, medical technologies, surgeries, surgery techs, and specialists can partially account for inflation. Higher education can claim no costly infrastructural or operational developments to defend its sophisticated swindle of American families. It is a high-tech, multifaceted, but old fashioned transfer of wealth from the poor, working- and middle-classes to the rich. Using student loan loot and tax subsidies backed by its$3.5 billion endowment, New York University has created a new administrative class of aristocratic compensation. The school not only continues to hire more administrators – many of whom the professors indict as having no visible value in improving the education for students bankrupting themselves to register for classes – but shamelessly increases the salaries of the academic administrative class. The top 21 administrators earn a combined total of $23,590,794 per year. The NYU portfolio includes many multi-million-dollar mansions and luxury condos, where deans and vice presidents live rent-free. Meanwhile, NYU has spent billions, over the past 20 years, on largely unnecessary real estate projects, buying property and renovating buildings throughout New York. The professors' analysis, NYU's US News and World Report Ranking, and student reviews demonstrate that few of these extravagant projects, aimed mostly at pleasing wealthy donors, attracting media attention, and giving administrators opulent quarters, had any impact on overall educational quality. As the managerial class grows, in size and salary, so does the full time faculty registry shrink. Use of part time instructors has soared to stratospheric heights at NYU. Adjunct instructors, despite having a minimum of a master's degree and often having a Ph.D., receive only miserly pay-per-course compensation for their work, and do not receive benefits. Many part-time college instructors must transform their lives into daily marathons, running from one school to the next, barely able to breathe between commutes and courses. Adjunct pay varies from school to school, but the average rate is$2,900 per course.

Many schools offer rates far below the average, most especially community colleges paying only $1,000 to$1,500. Even at the best paying schools, adjuncts, as part time employees, are rarely eligible for health insurance and other benefits. Many universities place strict limits on how many courses an instructor can teach. According to a recent study, 25 percent of adjuncts receive government assistance.

The actual scandal of "The Art of the Gouge" is that even if NYU is a particularly egregious offender of basic decency and honesty, most of the report's indictments could apply equally to nearly any American university. From 2003-2013, college tuition increased by a crushing 80 percent. That far outpaces all other inflation. The closest competitor was the cost of medical care, which in the same time period, increased by a rate of 49 percent. On average, tuition in America rises eight percent on an annual basis, placing it far outside the moral universe. Most European universities charge only marginal fees for attendance, and many of them are free. Senator Bernie Sanders recently introduced a bill proposing all public universities offer free education. It received little political support, and almost no media coverage.

In order to obtain an education, students accept the paralytic weight of student debt, the only form of debt not dischargeable in bankruptcy. Before a young person can even think about buying a car, house or starting a family, she leaves college with thousands of dollars in debt: an average of $29,400 in 2012. As colleges continue to suck their students dry of every dime, the US government profits at$41.3 billion per year by collecting interest on that debt. Congress recently cut funding for Pell Grants, yet increased the budget for hiring debt collectors to target delinquent student borrowers.

The university, once an incubator of ideas and entrance into opportunity, has mutated into a tabletop model of America's economic architecture, where the top one percent of income earners now owns 40 percent of the wealth.

"The One Percent at State U," an Institute for Policy Studies report, found that at the 25 public universities with the highest paid presidents, student debt and adjunct faculty increased at dramatically higher rates than at the average state university. Marjorie Wood, the study's co-author, explained told the New York Times that extravagant executive pay is the "tip of a very large iceberg, with universities that have top-heavy executive spending also having more adjuncts, more tuition increases and more administrative spending.

Unfortunately, students seem like passive participants in their own liquidation. An American student protest timeline for 2014-'15, compiled by historian Angus Johnston, reveals that most demonstrations and rallies focused on police violence, and sexism. Those issues should inspire vigilance and activism, but only 10 out of 160 protests targeted tuition hikes for attack, and only two of those 10 events took place outside the state of California.

Class consciousness and solidarity actually exist in Chile, where in 2011 a student movement began to organize, making demands for free college. More than mere theater, high school and college students, along with many of their parental allies, engaged the political system and made specific demands for inexpensive education. The Chilean government announced that in March 2016, it will eliminate all tuition from public universities. Chile's victory for participatory democracy, equality of opportunity and social justice should instruct and inspire Americans. Triumph over extortion and embezzlement is possible.

This seems unlikely to happen in a culture, however, where even most poor Americans view themselves, in the words of John Steinbeck, as "temporarily embarrassed millionaires." The political, educational and economic ruling class of America is comfortable selling out its progeny. In the words of one student quoted in "The Art of the Gouge," "they see me as nothing more than $200,000." washunate June 26, 2015 at 10:07 am Awesome question in the headline. At a basic level, I think the answer is yes, because on balance, college still provides a lot of privatized value to the individual. Being an exploited student with the College Credential Seal of Approval remains relatively much better than being an exploited non student lacking that all important seal. A college degree, for example, is practically a guarantee of avoiding the more unseemly parts of the US "justice" system. But I think this is changing. The pressure is building from the bottom as academia loses credibility as an institution capable of, never mind interested in, serving the public good rather than simply being another profit center for connected workers. It's actually a pretty exciting time. The kiddos are getting pretty fed up, and the authoritarians at the top of the hierarchy are running out of money with which to buy off younger technocratic enablers and thought leaders and other Serious People. washunate June 26, 2015 at 10:17 am P.S., the author in this post demonstrates the very answer to the question. He assumes as true, without any need for support, that the very act of possessing a college degree makes one worthy of a better place in society. That mindset is why colleges can prey upon students. They hold a monopoly on access to resources in American society. My bold: Adjunct instructors, despite having a minimum of a master's degree and often having a Ph.D., receive only miserly pay-per-course compensation for their work, and do not receive benefits. What does having a masters degree or PhD have to do with the moral claim of all human beings to a life of dignity and purpose? There are so many more job seekers per job opening now than, say, 20 or thirty years ago that a degree is used to sort out applications. Now a job that formerly listed a high school degree as a requirement may now list a college degree as a requirement, just to cut down on the number of applications. So, no, a B.A. or B.S. doesn't confer moral worth, but it does open more job doors than a high school diploma, even if the actual work only requires high school level math, reading, science or technology. I agree a phd often makes someone no more useful in society. However the behaviour of the kids is rational *because* employers demand a masters / phd. Students are then caught in a trap. Employers demand the paper, often from an expensive institution. The credit is abundant thanks to govt backed loans. They are caught in a situation where as a collective it makes no sense to join in, but as an individual if they opt out they get hurt also. Same deal for housing. It's a mad world my masters. What can we do about this? The weak link in the chain seems to me to be employers. Why are they hurting themselves by selecting people who want higher pay but may offer little to no extra value? I work as a programmer and I often think " if we could just 'see' the non-graduate diamonds in the rough". If employers had perfect knowledge of prospective employees *and* if they saw that a degree would make no difference to their performance universities would crumble overnight. The state will never stop printing money via student loans. If we can fix recruitment then universities are dead. washunate June 26, 2015 at 2:22 pm Why are they hurting themselves by selecting people who want higher pay but may offer little to no extra value? Yeah, I have thought a lot about that particular question of organizational behavior. It does make sense, conceptually, that somebody would disrupt the system and take people based on ability rather than credentials. Yet we are moving in the opposite direction, toward more rigidity in educational requirements for employment. For my two cents, I think the bulk of the answer lies in how hiring specifically, and management philosophy more generally, works in practice. The people who make decisions are themselves also subject to someone else's decisions. This is true all up and down the hierarchical ladder, from board members and senior executives to the most junior managers and professionals. It's true that someone without a degree may offer the same (or better) performance to the company. But they do not offer the same performance to the people making decisions, because those individual people also depend upon their own college degrees to sell their own labor services. To hire significant numbers of employees without degrees into important roles is to sabotage their own personal value. Very few people are willing to be that kind of martyr. And generally speaking, they tend to self-select away from occupations where they can meaningfully influence decision-making processes in large organizations. Absolutely, individual business owners can call BS on the whole scam. It is a way that individual people can take action against systemic oppression. Hire workers based upon their fit for the job, not their educational credentials or criminal background or skin color or sexual orientation or all of the other tests we have used. But that's not a systemic solution because the incentives created by public policy are overwhelming at large organizations to restrict who is 'qualified' to fill the good jobs (and increasingly, even the crappy jobs). Laaughingsong June 26, 2015 at 3:03 pm I am not so sure that this is so. So many jobs are now crapified. When I was made redundant in 2009, I could not find many jobs that fit my level of experience (just experience! I have no college degree), so I applied for anything that fit my skill set, pretty much regardless of level. I was called Overqualified. I have heard that in the past as well, but never more so during that stretch of job hunting. Remember that's with no degree. Maybe younger people don't hear it as much. But I also think life experience has something to do with it, you need to have something to compare it to. How many times did our parents tell us how different things were when they were kids, how much easier? I didn't take that on board, did y'all? sam s smith June 26, 2015 at 4:03 pm I blame HR. For various reasons, people seeking work these days, especially younger job applicants, might not possess the habits of mind and behavior that would make them good employees – i.e., punctuality, the willingness to come to work every day (even when something more fun or interesting comes up, or when one has partied hard the night before), the ability to meet deadlines rather than make excuses for not meeting them, the ability to write competently at a basic level, the ability to read instructions, diagrams, charts, or any other sort of necessary background material, the ability to handle basic computation, the ability to FOLLOW instructions rather than deciding that one will pick and choose which rules and instructions to follow and which to ignore, trainability, etc. Even if a job applicant's degree is in a totally unrelated field, the fact that he or she has managed to complete an undergraduate degree–or, if relevant, a master's or a doctorate – is often accepted by employers as a sign that the applicant has a sense of personal responsibility, a certain amount of diligence and educability, and a certain level of basic competence in reading, writing, and math. By the same token, employers often assume that an applicant who didn't bother going to college or who couldn't complete a college degree program is probably not someone to be counted on to be a responsible, trainable, competent employee. Obviously those who don't go to college, or who go but drop out or flunk out, end up disadvantaged when competing for jobs, which might not be fair at all in individual cases, especially now that college has been priced so far out of the range of so many bright, diligent students from among the poor and and working classes, and now even those from the middle class. Nevertheless, in general an individual's ability to complete a college degree is not an unreasonable stand-in as evidence of that person's suitability for employment. Roland June 27, 2015 at 5:14 pm Nicely put, Ben. Students are first caught in a trap of "credentials inflation" needed to obtain jobs, then caught by inflation in education costs, then stuck with undischargeable debt. And the more of them who get the credentials, the worse the credentials inflation–a spiral. It's all fuelled by loose credit. The only beneficiaries are a managerial elite who enjoy palatial facilities. As for the employers, they're not so bad off. Wages are coming down for credentialled employees due to all the competition. There is such a huge stock of degreed applicants that they can afford to ignore anyone who isn't. The credentials don't cost the employer–they're not spending the money, nor are they lending the money. Modern money makes it possible for the central authorities to keep this racket going all the way up to the point of general systemic collapse. Why should they stop? Who's going to make them stop? The only reason the universities can get away with it is easy money. When the time comes that students actually need to pay tuition with real money, money they or their parents have actually saved, then college tuition rates will crash back down to earth. Don't blame the universities. This is the natural and inevitable outcome of easy money. Yes, college education in the US is a classic example of the effects of subsidies. Eliminate the subsidies and the whole education bubble would rapidly implode. washunate June 26, 2015 at 11:03 am I'm very curious if anyone will disagree with that assessment. An obvious commonality across higher education, healthcare, housing, criminal justice, and national security is that we spend huge quantities of public money yet hold the workers receiving that money to extremely low standards of accountability for what they do with it. tegnost June 26, 2015 at 11:38 am Correct, it's not the universities, it's the culture that contains the universities, but the universities are training grounds for the culture so it is the universities just not only the universities Been remembering the song from my college days "my futures so bright i gotta wear shades". getting rich was the end in itself, and people who didn't make it didn't deserve anything but a whole lot of student debt,creating perverse incentives. And now we all know what the A in type a stands for at least among those who self identify as such, so yes it is the universities Chris in Paris June 26, 2015 at 12:07 pm I don't understand why the ability to accept guaranteed loan money doesn't come with an obligation by the school to cap tuition at a certain percentage over maximum loan amount? Would that be so hard to institute? Student loans are debt issuance. Western states are desperate to issue debt as it's fungible with money and marked down as growth. Borrow 120K over 3 years and it all gets paid into university coffers and reappears as "profit" now. Let some other president deal with low disposable income due to loan repayments. It's in a different electoral cycle – perfect. You can try to argue, but it will be hard to refute. If you give mortgages at teaser rates to anybody who can fog a mirror, you get a housing bubble. If you give student loans to any student without regard to the prospects of that student paying back the loan, you get a higher education bubble. Which will include private equity trying to catch as much of this money as they possibly can by investing in for profit educational institutions just barely adequate to benefit from federal student loan funds. A lot of background conditions help. It helps to pump a housing bubble if there's nothing else worth investing in (including saving money at zero interest rates). It helps pump an education bubble if most of the jobs have been outsourced so people are competing more and more for fewer and fewer. I don't disagree with the statement that easy money has played the biggest role in jacking up tuition. I do strongly disagree that we shouldn't "blame" the universities. The universities are exactly where we should place the blame. The universities have become job training grounds, and yet continue to droll on and on about the importance of noble things like liberal education, the pursuit of knowledge, the importance of ideas, etc. They cannot have it both ways. Years ago, when tuition rates started escalating faster than inflation, the universities should have been the loudest critics – pointing out the cultural problems that would accompany sending the next generation into the future deeply indebted – namely that all the noble ideas learned at the university would get thrown out the window when financial reality forced recent graduates to chose between noble ideas and survival. If universities truly believed that a liberal education was important; that the pursuit of knowledge benefitted humanity – they should have led the charge to hold down tuition. washunate June 26, 2015 at 12:47 pm I took it to mean blame as in what allows the system to function. I heartily agree that highly paid workers at universities bear blame for what they do (and don't do) at a granular level. It's just that they couldn't do those things without the system handing them gobs of resources, from tax deductability of charitable contributions to ignoring anti-competitive behavior in local real estate ownership to research grants and other direct funding to student loans and other indirect funding. Regarding blaming "highly paid workers at universities" – If a society creates incentives for dysfunctional behavior such a society will have a lot of dysfunction. Eliminate the subsidies and see how quicly the educational bubble pops. James Levy June 26, 2015 at 2:45 pm You are ignoring the way that the rich bid up the cost of everything. 2% of the population will pay whatever the top dozen or so schools will charge so that little Billy or Sue can go to Harvard or Stanford. This leads to cost creep as the next tier ratchet up their prices in lock step with those above them, etc. The same dynamic happens with housing, at least around wealthy metropolitan areas. Hi to you two, A European perspective on this: yep, that's true on an international perspective. I belong to the ugly list of those readers of this blog who do not fully share the liberal values of most of you hear. However, may I say that I can agree on a lot of stuff. US education and health-care are outrageously costly. Every European citizen moving to the states has a question: will he or she be sick whilst there. Every European parent with kids in higher education is aware that having their kids for one closing year in the US is the more they can afford (except if are a banquier d'affaires ). Is the value of the US education good? No doubt! Is is good value for money, of course not. Is the return on the money ok? It will prove disastrous, except if the USD crashed. The main reason? Easy money. As for any kind of investment. Remember that this is indeed a investment plan Check the level of revenues of "public sector" teaching staff on both sides of the ponds. The figure for US professionals in these area are available on the Web. They are indeed much more costly than, say, North-of-Europe counterparts, "public sector" professionals in those area. Is higher education in the Netherlands sub-par when compared to the US? Of course not. Yep financing education via the Fed (directly or not) is not only insanely costly. Just insane. The only decent solution: set up public institutions staffed with service-minded professionals that did not have to pay an insane sum to build up the curriculum themselves. Are "public services" less efficient than private ones here in those area, health-care and higher education. Yep, most certainly. But, sure, having the fed indirectly finance the educational system just destroy any competitive savings made in building a competitive market-orientated educational system and is one of the worst way to handle your educational system. Yep, you can do a worst use of the money, subprime or China buildings But that's all about it. US should forget about exceptionnalism and pay attention to what North of Europe is doing in this area. Mind you, I am Southerner (of Europe). But of course I understand that trying to run these services on a federal basis is indeed "mission impossible". Way to big! Hence the indirect Washington-decided Wall-Street-intermediated Fed-and-deficit-driven financing of higher education. Mind you: we have more and more of this bankers meddling in education in Europe and I do not like what I see. John Zelnicker June 27, 2015 at 1:36 pm @washunate – 6/26/15, 11:03 am. I know I'm late to the party, but I disagree. It's not the workers, it's the executives and management generally. Just like Wall Street, many of these top administrators have perfected the art of failing upwards. IMNSHO everyone needs to stop blaming labor and/or the labor unions. It's not the front line workers, teachers, retail clerks, adjunct instructors, all those people who do the actual work rather than managing other people. Those workers have no bargaining power, and the unions have lost most of theirs, in part due to the horrible labor market, as well as other important reasons. We have demonized virtually all of the government workers who actually do the work that enables us to even have a government (all levels) and to provide the services we demand, such as public safety, education, and infrastructure. These people are our neighbors, relatives and friends; we owe them better than this. /end of rant Roland June 27, 2015 at 5:20 pm Unionized support staff at Canadian universities have had sub-inflation wage increases for nearly 20 years, while tuition has been rising at triple the rate of inflation. So obviously one can't blame the unions for rising education costs. Spring Texan June 28, 2015 at 8:03 am Thanks for your rant! You said a mouthful. And could not be more correct. Adam Eran June 26, 2015 at 12:18 pm Omitted from this account: Federal funding for education has declined 55% since 1972. Part of the Powell memo's agenda. It's understandable too; one can hardly blame legislators for punishing the educational establishment given the protests of the '60s and early '70s After all, they were one reason Nixon and Reagan rose to power. How dare they propose real democracy! Harumph! To add to students' burden, there's the recent revision of bankruptcy law: student loans can no longer be retired by bankruptcy (Thanks Hillary!) It'll be interesting to see whether Hillary's vote on that bankruptcy revision becomes a campaign issue. I also wonder whether employers will start to look for people without degrees as an indication they were intelligent enough to sidestep this extractive scam. washunate June 26, 2015 at 1:54 pm I'd be curious what you count as federal funding. Pell grants, for example, have expanded both in terms of the number of recipients and the amount of spending over the past 3 – 4 decades. More generally, federal support for higher ed comes in a variety of forms. The bankruptcy law you mention is itself a form of federal funding. Tax exemption is another. Tax deductabiliity of contributions is another. So are research grants and exemptions from anti-competitive laws and so forth. There are a range of individual tax credits and deductions. The federal government also does not intervene in a lot of state supports, such as licensing practices in law and medicine that make higher ed gatekeepers to various fiefdoms and allowing universities to take fees for administering (sponsoring) charter schools. The Federal Work-Study program is probably one of the clearest specific examples of a program that offers both largely meaningless busy work and terrible wages. As far as large employers seeking intelligence, I'm not sure that's an issue in the US? Generally speaking, the point of putting a college credential in a job requirement is precisely to find people participating in the 'scam'. If an employer is genuinely looking for intelligence, they don't have minimum educational requirements. Laughingsong June 26, 2015 at 3:12 pm I heard that Congress is cutting those: http://www.washingtonpost.com/blogs/wonkblog/wp/2014/12/10/congress-cuts-federal-financial-aid-for-needy-students/ different clue June 28, 2015 at 3:06 am Why would tuition rates come down when students need to pay with "real money, money they or their parents have actually saved. . . " ? Didn't tuition at state universities begin climbing when state governments began boycotting state universities in terms of embargoing former rates of taxpayer support to them? Leaving the state universities to try making up the difference by raising tuition? If people want to limit or reduce the tuition charged to in-state students of state universities, people will have to resume paying former rates of taxes and elect people to state government to re-target those taxes back to state universities the way they used to do before the reductions in state support to state universities. Protest against exploitation and risk being black-listed by exploitative employers -> Only employers left are the ones who actually do want (not pretend to want) ethical people willing to stand up for what they believe in. Not many of those kind of employers around . What is the benefit? What are the risks? What is the benefit? What are the risks? I am not a progressive, yet, there is always risk for solidary progress. The author misrepresents the nature and demands of Chile's student movement. Over the past few decades, university enrollment rates for Chileans expanded dramatically in part due to the creation of many private universities. In Chile, public universities lead the pack in terms of academic reputation and entrance is determined via competitive exams. As a result, students from poorer households who attended low-quality secondary schools generally need to look at private universities to get a degree. And these are the students to which the newly created colleges catered to. According to Chilean legislation, universities can only function as non-profit entities. However, many of these new institutions were only nominally non-profit entities (for example, the owners of the university would also set up a real estate company that would rent the facilities to the college at above market prices) and they were very much lacking in quality. After a series of high-profile cases of universities that were open and shut within a few years leaving its students in limbo and debt, anger mounted over for-profit education. The widespread support of the student movement was due to generalized anger about and education system that is dearly lacking in quality and to the violation of the spirit of the law regulating education. Once the student movement's demands became more specific and morphed from opposing for profit institutions to demanding free tuition for everyone, the widespread support waned quickly. And while the government announced free tuition in public universities, there is a widespread consensus that this is a pretty terrible idea as it is regressive and involves large fiscal costs. In particular because most of the students that attend public universities come from relatively wealthy households that can afford tuition. The students that need the tuition assistance will not benefit under the new rules. I personally benefited from the fantastically generous financial aid systems that some private American universities have set up which award grants and scholarships based on financial need only. And I believe that it is desirable for the State to guarantee that any qualified student has access to college regardless of his or her wealth I think that by romanticizing the Chilean student movement the author reveals himself to be either is dishonest or, at best, ignorant. RanDomino June 27, 2015 at 12:23 pm The protests also involved extremely large riots. The Insider June 26, 2015 at 10:57 am Students aren't protesting because they don't feel the consequences until they graduate. One thing that struck me when I applied for a student loan a few years back to help me get through my last year of graduate school – the living expense allocation was surprisingly high. Not "student sharing an apartment with five random dudes while eating ramen and riding the bus", but more "living alone in a nice one-bedroom apartment while eating takeout and driving a car". Apocryphal stories of students using their student loans to buy new cars or take extravagant vacations were not impossible to believe. The living expense portion of student loans is often so generous that students can live relatively well while going to school, which makes it that much easier for them to push to the backs of their minds the consequences that will come from so much debt when they graduate. Consequently, it isn't the students who are complaining – it's the former students. But by the time they are out of school and the university has their money in its pocket, it's too late for them to try and change the system. lord koos June 26, 2015 at 11:42 am I'm sure many students are simply happy to be in college the ugly truth hits later. optimader June 26, 2015 at 12:39 pm http://www.marketplace.org/topics/life/education/compete-students-colleges-roll-out-amenities Sophomore Noell Conley lives there, too. She shows off the hotel-like room she shares with a roommate. "As you walk in, to the right you see our granite countertops with two sinks, one for each of the residents," she says. A partial wall separates the beds. Rather than trek down the hall to shower, they share a bathroom with the room next door. "That's really nice compared to community bathrooms that I lived in last year," Conley says. To be fair, granite countertops last longer. Tempur-Pedic is a local company - and gave a big discount. The amenities include classrooms and study space that are part of the dorm. Many of the residents are in the university's Honors program. But do student really need Apple TV in the lounges, or a smartphone app that lets them check their laundry status from afar? "Demand has been very high," says the university's Penny Cox, who is overseeing the construction of several new residence halls on campus. Before Central Hall's debut in August, the average dorm was almost half a century old, she says. That made it harder to recruit. "If you visit places like Ohio State, Michigan, Alabama," Cox says, "and you compare what we had with what they have available to offer, we were very far behind." Today colleges are competing for a more discerning consumer. Students grew up with fewer siblings, in larger homes, Cox says. They expect more privacy than previous generations - and more comforts. "These days we seem to be bringing kids up to expect a lot of material plenty," says Jean Twenge, a psychology professor at San Diego State University and author of the book "Generation Me." Those students could be in for some disappointment when they graduate, she says. "When some of these students have all these luxuries and then they get an entry-level job and they can't afford the enormous flat screen and the granite countertops," Twenge says, "then that's going to be a rude awakening." Some on campus also worry about the divide between students who can afford such luxuries and those who can't. The so-called premium dorms cost about$1,000 more per semester. Freshman Josh Johnson, who grew up in a low-income family and lives in one of the university's 1960s-era buildings, says the traditional dorm is good enough for him.

"I wouldn't pay more just to live in a luxury dorm," he says. "It seems like I could just pay the flat rate and get the dorm I'm in. It's perfectly fine."

In the near future students who want to live on campus won't have a choice. Eventually the university plans to upgrade all of its residence halls.

So I wonder who on average will fair better navigating the post-college lifestyle/job market reality check, Noell or Josh? Personally, I would bet on the Joshes living in the 60's vintage enamel painted ciderblock dorm rooms.

optimader June 26, 2015 at 12:47 pm

Universities responding to the market

Competition for students who have more sophisticated tastes than in past years is creating the perfect environment for schools to try to outdo each other with ever-more posh on-campus housing. Keeping up in the luxury dorm race is increasingly critical to a school's bottom line: A 2006 study published by the Association of Higher Education Facilities Officers found that "poorly maintained or inadequate residential facilities" was the number-one reason students rejected enrolling at institutions.

PHOTO GALLERY: Click Here to See the 10 Schools with Luxury Dorms

Private universities get most of the mentions on lists of schools with great dorms, as recent ratings by the Princeton Review, College Prowler, and Campus Splash make clear. But a few state schools that have invested in brand-new facilities are starting to show up on those reviews, too.

While many schools offer first dibs on the nicest digs to upperclassmen on campus, as the war for student dollars ratchets up even first-year students at public colleges are living in style. Here are 10 on-campus dormitories at state schools that offer students resort-like amenities.

Jerry Denim June 26, 2015 at 4:37 pm

Bingo! They don't get really mad until they're in their early thirties and they are still stuck doing some menial job with no vacation time, no health insurance and a monstrous mountain of debt. Up until that point they're still working hard waiting for their ship to come in and blaming themselves for any lack of success like Steinbeck's 'embarrassed millionaires.' Then one day maybe a decade after they graduate they realize they've been conned but they've got bills to pay and other problems to worry about so they solider on. 18 year-olds are told by their high school guidance councilors, their parents and all of the adults they trust that college while expensive is a good investment and the only way to succeed. Why should they argue? They don't know any better yet.

different clue June 28, 2015 at 3:09 am

Perhaps some students are afraid to protest for fear of being photographed or videographed and having their face and identity given to every prospective employer throughout America. Perhaps those students are afraid of being blackballed throughout the Great American Workplace if they are caught protesting anything on camera.

Today isn't like the sixties when you could drop out in the confidence that you could always drop back in again. Nowadays there are ten limpets for every scar on the rock.

seabos84 June 26, 2015 at 11:16 am

the average is such a worthless number. The Data we need, and which all these parasitic professional managerial types won't provide –
x axis would be family income, by $5000 increments. y axis would be the median debt level we could get fancy, and also throw in how many kids are in school in each of those income increments. BTW – this 55 yr. old troglodyte believes that 1 of the roles (note – I did NOT say "The Role") of education is preparing people to useful to society. 300++ million Americans, 7 billion humans – we ALL need shelter, reliable and safe food, reliable and safe water, sewage disposal, clothing, transportation, education, sick care, power, leisure, we should ALL have access to family wage jobs and time for BBQs with our various communities several times a year. I know plenty of techno-dweebs here in Seattle who need to learn some of the lessons of 1984, The Prince, and Shakespeare. I know plenty of fuzzies who could be a bit more useful with some rudimentary skills in engineering, or accounting, or finance, or stats, or bio, or chem I don't know what the current education system is providing, other than some accidental good things for society at large, and mainly mechanisms for the para$ite clae$to stay parasites. rmm. Adam Eran June 26, 2015 at 12:22 pm Mao was perfectly content to promote technical education in the new China. What he deprecated (and fought to suppress) was the typical liberal arts notion of critical thinking. We're witnessing something comparable in the U.S. This suppression in China led to an increase in Mao's authority (obviously), but kept him delusional. For example, because China relied on Mao's agricultural advice, an estimated 70 million Chinese died during peacetime. But who else was to be relied upon as an authority? Back the the U.S.S.A. (the United StateS of America): One Australian says of the American system: "You Yanks don't consult the wisdom of democracy; you enable mobs." Mao was perfectly content to promote technical education in the new China. What he deprecated (and fought to suppress) was the typical liberal arts notion of critical thinking. We're witnessing something comparable in the U.S. We're witnessing something comparable in the U.S. Mao liked chaos because he believed in continuous revolution. I would argue what we're experiencing is nothing comparable to what China experienced. (I hope I've understood you correctly.) I am pretty sure a tradition of protest to affect political change in the US is a rather rare bird. Most people "protest" by changing their behavior. As an example, by questioning the value of the 46,000 local private college tuition as opposed the the 15k and 9k tiered state college options. My daughter is entering the freshman class next year, we opted for the cheaper state option because, in the end, a private school degree adds nothing, unless it is to a high name recognition institution. I think, like housing, a downstream consequence of "the gouge" is not to question - much less understand - class relations, but to assess the value of the lifetyle choice once you are stuck with the price of paying for that lifestyle in the form of inflated debt repayments. Eventually "the folk" figure it out and encourage cheaper alternatives toward the same goal. There's probably little point in engaging in political protest. Most people maximise their chances of success by focusing on variables over which they have some degree of control. The ability of most people to have much effect on the overall political-economic system is slight and any returns from political activity are highly uncertain. How does anyone even expect to maintain cheap available state options without political activity? By wishful thinking I suppose? The value of a private school might be graduating sooner, state schools are pretty overcrowded, but that may not at all be worth the debt (I doubt it almost ever is on a purely economic basis). RabidGandhi June 27, 2015 at 7:57 pm Maybe if we just elect the right people with cool posters and a hopey changey slogan, they'll take care of everything for us and we won't have to be politically active. Of course refusal to engage politically because the returns to oneself by doing so are small really IS the tragedy of the commons. Thus one might say it's ethical to engage politically in order to avoid it. Some ethical action focuses on overcoming tragedy of the commons dilemmas. Of course the U.S. system being what it is I have a hard time blaming anyone for giving up. chairman June 26, 2015 at 11:37 am The middle class, working class and poor have no voice in politics or policy at all, and they don't know what's going on until it's too late. They've been pushed by all their high school staff that college is the only acceptable option - and often it is. What else are they going to do out of high school, work a 30 hour a week minimum wage retail job? The upper middle class and rich, who entirely monopolize the media, don't have any reason to care about skyrocketing college tuition - their parents are paying for it anyway. They'd rather write about the hip and trendy issues of the day, like trigger warnings. To the contrary, they're hardly advised by "their high school staff"; nonetheless, subway ads for Phoenix, Monroe, etc. have a significant influence. Uncle Bruno June 26, 2015 at 11:58 am They're too busy working Also Tinder. collegestudent June 26, 2015 at 12:39 pm Speaking as one of these college students, I think that a large part of the reason that the vast majority of students are just accepting the tuition rates is because it has become the societal norm. Growing up I can remember people saying "You need to go to college to find a good job." Because a higher education is seen as a necessity for most people, students think of tuition as just another form of taxes, acceptable and inevitable, which we will expect to get a refund on later in life. Pitchfork June 26, 2015 at 1:03 pm I teach at a "good" private university. Most of my students don't have a clue as to how they're being exploited. Many of the best students feel enormous pressure to succeed and have some inkling that their job prospects are growing narrower, but they almost universally accept this as the natural order of things. Their outlook: if there are 10 or 100 applicants for every available job, well, by golly, I just have to work that much harder and be the exceptional one who gets the job. Incoming freshmen were born in the late 90s - they've never known anything but widespread corruption, financial and corporate oligarchy, i-Pads and the Long Recession. But as other posters note, the moment of realization usually comes after four years of prolonged adolescence, luxury dorm living and excessive debt accumulation. Most Ph.D.'s don't either. I'd argue there have been times they have attempted to debate that exploitation is a good–for their employer and himself/herself–with linguistic games. Mind numbing . To be fair, they have a job. Gottschee June 26, 2015 at 1:34 pm I have watched the tuition double–double!–at my alma mater in the last eleven years. During this period, administrators have set a goal of increasing enrollment by a third, and from what I hear, they've done so. My question is always this: where is the additional tuition money going? Because as I walk through the campus, I don't really see that many improvements–yes, a new building, but that was supposedly paid for by donations and endowments. I don't see new offices for these high-priced admin people that colleges are hiring, and in fact, what I do see is an increase in the number of part-time faculty and adjuncts. The tenured faculty is not prospering from all this increased revenue, either. I suspect the tuition is increasing so rapidly simply because the college can get away with it. And that means they are exploiting the students. While still a student, I once calculated that it cost me$27.00/hour to be in class. (15 weeks x 20 "contact hours" per week =
300 hours/semester, $8000/semester divided by 300 hours =$27.00/hour). A crude calculation, certainly, but a starting point. I did this because I had an instructor who was consistently late to class, and often cancelled class, so much that he wiped out at least $300.00 worth of instruction. I had the gall to ask for a refund of that amount. I'm full of gall. Of course, I was laughed at, not just by the administrators, but also by some students. Just like medical care, education pricing is "soft," that is, the price is what you are willing to pay. Desirable students get scholarships and stipends, which other students subsidize; similarly, some pre-ACA patients in hospitals were often treated gratis. Students AND hospital patients alike seem powerless to affect the contract with the provider. Reform will not likely be forthcoming, as students, like patients, are "just passing through." Martin Finnucane June 26, 2015 at 2:10 pm Higher education wears the cloak of liberalism, but in policy and practice, it can be a corrupt and cutthroat system of power and exploitation. I find the "but" in that sentence to be dissonant. Mark Anderson June 26, 2015 at 3:12 pm The tuition at most public universities has quadrupled or more over the last 15 to 20 years precisely BECAUSE state government subsidies have been slashed in the meantime. I was told around 2005 that quadrupled tuition at the University of Minnesota made up for about half of the state money that the legislature had slashed from the university budget over the previous 15 years. It is on top of that situation that university administrators are building themselves little aristocratic empires, very much modeled on the kingdoms of corporate CEOs where reducing expenses (cutting faculty) and services to customers (fewer classes, more adjuncts) is seen as the height of responsibility and accountability, perhaps even the definition of propriety. Everyone should read the introductory chapter to David Graeber's " The Utopia of Rules: On Technology, Stupidity and the Secret Joys of Bureaucracy." In Chapter One of this book entitled "The Iron law of Liberalism and the Era of Total Bureaucratization" Graeber notes that the US has become the most rigidly credentialised society in the world where " in field after field from nurses to art teachers, physical therapists, to foreign policy consultants, careers which used to be considered an art (best learned through doing) now require formal professional training and a certificate of completion." Graeber, in that same chapter, makes another extremely important point. when he notes that career advancement in may large bureaucratic organizations demands a willingness to play along with the fiction that advancement is based on merit, even though most everyone know that this isn't true. The structure of modern power in the U.S., in both the merging public and private sectors, is built around the false ideology of a giant credentialized meritorcracy rather than the reality of arbitrary extraction by predatory bureaucratic networks. armchair June 26, 2015 at 3:27 pm Anecdote: I was speaking to someone who recently started working at as a law school administrator at my alma mater. Enrollment is actually down at law schools (I believe), because word has spread about the lame legal job market. So, the school administration is watching its pennies, and the new administrator says the administrators aren't getting to go on so many of the all expense paid conferences and junkets that they used to back in the heyday. As I hear this, I am thinking about how many of these awesome conferences in San Diego, New Orleans and New York that I'm paying back. Whatever happened to the metaphorical phrase: "when a pig becomes a hog, it goes to slaughter"? Another anecdote: I see my undergrad alma mater has demolished the Cold War era dorms on one part of campus and replaced it with tons of slick new student housing. MaroonBulldog June 26, 2015 at 7:15 pm No doubt those Cold War era dorms had outlived their planned life. Time for replacement. Hell, they had probably become inhabitable and unsafe. Meanwhile, has your undergraduate school replaced any of its lecture courses with courses presented same model as on-line traffic school? I have a pending comment below about how my nephew's public university "taught" him introductory courses in accounting and macroeconomics that way. Please be assured that the content of those courses was on a par with best practices in the on-line traffic school industry. It would be hilarious if it weren't so desperately sad. Roquentin June 26, 2015 at 5:04 pm I read things like this and think about Louis Althusser and his ideas about "Ideological State Apparatuses." While in liberal ideology the education is usually considered to be the space where opportunity to improve one's situation is founded, Althusser reached the complete opposite conclusion. For him, universities are the definitive bourgeois institution, the ideological state apparatus of the modern capitalist state par excellance. The real purpose of the university was not to level the playing field of opportunity but to preserve the advantages of the bourgeoisie and their children, allowing the class system to perpetuate/reproduce itself. It certainly would explain a lot. It would explain why trying to send everyone to college won't solve this, because not everyone can have a bourgeois job. Some people actually have to do the work. The whole point of the university as an institution was to act as a sorting/distribution hub for human beings, placing them at certain points within the division of labor. A college degree used to mean more because getting it was like a golden ticket, guaranteeing someone who got it at least a petit-bourgeois lifestyle. The thing is, there are only so many slots in corporate America for this kind of employment. That number is getting smaller too. You could hand every man, woman, and child in America a BS and it wouldn't change this in the slightest. What has happened instead, for college to preserve its role as the sorting mechanism/preservation of class advantage is what I like to call degree inflation and/or an elite formed within degrees themselves. Now a BS or BA isn't enough, one needs an Master's or PhD to really be distinguished. Now a degree from just any institution won't do, it has to be an Ivy or a Tier 1 school. Until we learn to think realistically about what higher education is as an institution little or nothing will change. Any credential is worthless if everybody has it. All information depends on contrast. It's impossible for everybody to "stand out" from the masses. The more people have college degrees the less value a college degree has. sid_finster June 26, 2015 at 5:49 pm When I was half-grown, I heard it said that religion is no longer the opiate of the masses, in that no one believes in God anymore, at least not enough for it to change actual behavior. Instead, buying on credit is the opiate of the masses. MaroonBulldog June 26, 2015 at 6:58 pm My nephew asked me to help him with his college introductory courses in macroeconomics and accounting. I was disappointed to find out what was going on: no lectures by professors, no discussion sessions with teaching assistants; no team projects–just two automated correspondence courses, with automated computer graded problem sets objective tests – either multiple choice, fill in the blank with a number, or fill in the blank with a form answer. This from a public university that is charging tuition for attendance just as though it were really teaching something. All they're really certifying is that the student can perform exercises is correctly reporting what a couple of textbooks said about subjects of marginal relevance to his degree. My nephew understands exactly that this is going on, but still . This is how 21st century America treats its young people: it takes people who are poor, in the sense that they have no assets, and makes them poorer, loading them up with student debt, which they incur in order to finance a falsely-so-called course of university study that can't be a good deal, even for the best students among them. I am not suggesting the correspondence courses have no worth at all. But they do not have the worth that is being charged for them in this bait-and-switch exercise by Ed Business. MaroonBulldog June 27, 2015 at 1:39 am After further thought, I'd compare my nephew's two courses to on-line traffic school: Mechanized "learning" – forget it all as soon as the test is over – Critical thinking not required. Except for the kind of "test preparation" critical thinking that teaches one to spot and eliminate the obviously wrong choices in objective answers–that kind of thinking saves time and so is very helpful. Not only is he paying full tuition to receive this treatment, but his family and mine are paying taxes to support it, too. Very useful preparation for later life, where we can all expect to attend traffic school a few times. But no preparation for any activity of conceivable use or benefit to any other person. Spring Texan June 28, 2015 at 8:07 am Good story. What a horrible rip-off! P. Fitzsimon June 27, 2015 at 12:26 pm I read recently that the business establishment viewed the most important contribution of colleges was that they warehoused young people for four years to allow maturing. Fred Grosso June 27, 2015 at 4:55 pm Where are the young people in all this? Is anyone going to start organizing to change things? Any ideas? Any interest? Are we going to have some frustrated, emotional person attempt to kill a university president once every ten years? Then education can appeal for support from the government to beef up security. Meanwhile the same old practices will prevail and the rich get richer and the rest of us get screwed. Come on people step up. Unorthodoxmarxist June 27, 2015 at 6:22 pm The reason students accept this has to be the absolutely demobilized political culture of the United States combined with what college represents structurally to students from the middle classes: the only possibility – however remote – of achieving any kind of middle class income. Really your choices in the United States are, in terms of jobs, to go into the military (and this is really for working class kids, Southern families with a military history and college-educated officer-class material) or to go to college. The rest, who have no interest in the military, attend college, much like those who wanted to achieve despite of their class background went into the priesthood in the medieval period. There hasn't been a revolt due to the lack of any idea it could function differently and that American families are still somehow willing to pay the exorbitant rates to give their children a piece of paper that still enables them to claim middle class status though fewer and fewer find jobs.$100k in debt seems preferable to no job prospects at all.

Colleges have become a way for the ruling class to launder money into supposed non-profits and use endowments to purchase stocks, bonds, and real estate. College administrators and their lackeys (the extended school bureaucracy) are propping up another part of the financial sector – just take a look at Harvard's $30+ billion endowment, or Yale's$17 billion – these are just the top of a very large heap. They're all deep into the financial sector. Professors and students are simply there as an excuse for the alumni money machine and real estate scams to keep running, but there's less and less of a reason for them to employ professors, and I say this as a PhD with ten years of teaching experience who has seen the market dry up even more than it was when I entered grad school in the early 2000s.

A Real Black Person purple monkey dishwasher June 28, 2015 at 9:13 pm

"Colleges have become a way for the ruling class to launder money into supposed non-profits and use endowments to purchase stocks, bonds, and real estate. "

Unorthodoxmarxist, I thought I was the only person who was coming to that conclusion. I think there's data out there that could support our thesis that college tuition inflation may be affecting real estate prices. After all, justification a college grad gave to someone who was questioning the value of a college degree was that by obtaining a "a degree" and a professional job, an adult could afford to buy a home in major metropolitan hubs. I'm not sure if he was that ignorant, (business majors, despite the math requirement are highly ideological people. They're no where near as objective as they like to portray themselves as) or if he hasn't been in contact with anyone with a degree trying to buy a home in a metropolitan area.

Anyways, if our thesis is true, then if home prices declined in 2009, then college tuition should have declined as well, but it didn't at most trustworthy schools. Prospective students kept lining up to pay more for education that many insiders believe is "getting worse" because of widespread propaganda and a lack of alternatives, especially for "middle class" women.

Pelham June 27, 2015 at 7:04 pm

It's hard to say, but there ought to be a power keg of students here primed to blow. And Bernie Sanders' proposal for free college could be the fuse.

But first he'd have the light the fuse, and maybe he can. He's getting huge audiences and a lot of interest these days. And here's a timely issue. What would happen if Sanders toured colleges and called for an angry, mass and extended student strike across the country to launch on a certain date this fall or next spring to protest these obscene tuitions and maybe call for something else concrete, like a maximum ratio of administrators to faculty for colleges to receive accreditation?

It could ignite not only a long-overdue movement on campuses but also give a big boost to his campaign. He'd have millions of motivated and even furious students on his side as well as a lot of motivated and furious parents of students (my wife and I would be among them) - and these are just the types of people likely to get out and vote in the primaries and general election.

Sanders' consistent message about the middle class is a strong one. But here's a solid, specific but very wide-ranging issue that could bring that message into very sharp relief and really get a broad class of politically engaged people fired up.

I'm not one of those who think Sanders can't win but applaud his candidacy because it will nudge Hillary Clinton. I don't give a fig about Clinton. I think there's a real chance Sanders can win not just the nomination but also the presidency. This country is primed for a sharp political turn. Sanders could well be the right man in the right place and time. And this glaring and ongoing tuition ripoff that EVERYONE agrees on could be the single issue that puts him front-and-center rather than on the sidelines.

Rosario June 28, 2015 at 1:18 am

I finished graduate school about three years ago. During the pre-graduate terms that I paid out of pocket (2005-2009) I saw a near 70 percent increase in tuition (look up KY college tuition 1987-2009 for proof).

Straight bullshit, but remember our school was just following the national (Neoliberal) model.

Though, realize that I was 19-23 years old. Very immature (still immature) and feeling forces beyond my control. I did not protest out of a) fear [?] (I don't know, maybe, just threw that in there) b) the sheepskin be the path to salvation (include social/cultural pressures from parent, etc.).

I was more affected by b). This is the incredible power of our current Capitalist culture. It trains us well. We are always speaking its language, as if a Classic. Appraising its world through its values.

I wished to protest (i.e. Occupy, etc.) but to which master? All of its targets are post modern, all of it, to me, nonsense, and, because of this undead (unable to be destroyed). This coming from a young man, as I said, still immature, though I fear this misdirection, and alienation is affecting us all.

NYU can gouge away. It's filled with Chinese students (spies) who pay full tuition.

#### [Oct 02, 2017] Techs push to teach coding isnt about kids success – its about cutting wages by Ben Tarnoff

##### "... Guest workers and wage-fixing are useful tools for restraining labor costs. But nothing would make programming cheaper than making millions more programmers. ..."
##### "... Silicon Valley has been unusually successful in persuading our political class and much of the general public that its interests coincide with the interests of humanity as a whole. But tech is an industry like any other. It prioritizes its bottom line, and invests heavily in making public policy serve it. The five largest tech firms now spend twice as much as Wall Street on lobbying Washington – nearly $50m in 2016. The biggest spender, Google, also goes to considerable lengths to cultivate policy wonks favorable to its interests – and to discipline the ones who aren't. ..." ##### "... Silicon Valley is not a uniquely benevolent force, nor a uniquely malevolent one. Rather, it's something more ordinary: a collection of capitalist firms committed to the pursuit of profit. And as every capitalist knows, markets are figments of politics. They are not naturally occurring phenomena, but elaborately crafted contraptions, sustained and structured by the state – which is why shaping public policy is so important. If tech works tirelessly to tilt markets in its favor, it's hardly alone. What distinguishes it is the amount of money it has at its disposal to do so. ..." ##### "... The problem isn't training. The problem is there aren't enough good jobs to be trained for ..." ##### "... Everyone should have the opportunity to learn how to code. Coding can be a rewarding, even pleasurable, experience, and it's useful for performing all sorts of tasks. More broadly, an understanding of how code works is critical for basic digital literacy – something that is swiftly becoming a requirement for informed citizenship in an increasingly technologized world. ..." ##### "... But coding is not magic. It is a technical skill, akin to carpentry. Learning to build software does not make you any more immune to the forces of American capitalism than learning to build a house. Whether a coder or a carpenter, capital will do what it can to lower your wages, and enlist public institutions towards that end. ..." ##### "... Exposing large portions of the school population to coding is not going to magically turn them into coders. It may increase their basic understanding but that is a long way from being a software engineer. ..." ##### "... All schools teach drama and most kids don't end up becoming actors. You need to give all kids access to coding in order for some can go on to make a career out of it. ..." ##### "... it's ridiculous because even out of a pool of computer science B.Sc. or M.Sc. grads - companies are only interested in the top 10%. Even the most mundane company with crappy IT jobs swears that they only hire "the best and the brightest." ..." ##### "... It's basically a con-job by the big Silicon Valley companies offshoring as many US jobs as they can, or "inshoring" via exploitation of the H1B visa ..." ##### "... Masters is the new Bachelors. ..." ##### "... I taught CS. Out of around 100 graduates I'd say maybe 5 were reasonable software engineers. The rest would be fine in tech support or other associated trades, but not writing software. Its not just a set of trainable skills, its a set of attitudes and ways of perceiving and understanding that just aren't that common. ..." ##### "... Yup, rings true. I've been in hi tech for over 40 years and seen the changes. I was in Silicon Valley for 10 years on a startup. India is taking over, my current US company now has a majority Indian executive and is moving work to India. US politicians push coding to drive down wages to Indian levels. ..." ###### Oct 02, 2017 | www.theguardian.com This month, millions of children returned to school. This year, an unprecedented number of them will learn to code. Computer science courses for children have proliferated rapidly in the past few years. A 2016 Gallup report found that 40% of American schools now offer coding classes – up from only 25% a few years ago. New York, with the largest public school system in the country, has pledged to offer computer science to all 1.1 million students by 2025. Los Angeles, with the second largest, plans to do the same by 2020. And Chicago, the fourth largest, has gone further, promising to make computer science a high school graduation requirement by 2018. The rationale for this rapid curricular renovation is economic. Teaching kids how to code will help them land good jobs, the argument goes. In an era of flat and falling incomes, programming provides a new path to the middle class – a skill so widely demanded that anyone who acquires it can command a livable, even lucrative, wage. This narrative pervades policymaking at every level, from school boards to the government. Yet it rests on a fundamentally flawed premise. Contrary to public perception, the economy doesn't actually need that many more programmers. As a result, teaching millions of kids to code won't make them all middle-class. Rather, it will proletarianize the profession by flooding the market and forcing wages down – and that's precisely the point. At its root, the campaign for code education isn't about giving the next generation a shot at earning the salary of a Facebook engineer. It's about ensuring those salaries no longer exist, by creating a source of cheap labor for the tech industry. As software mediates more of our lives, and the power of Silicon Valley grows, it's tempting to imagine that demand for developers is soaring. The media contributes to this impression by spotlighting the genuinely inspiring stories of those who have ascended the class ladder through code. You may have heard of Bit Source, a company in eastern Kentucky that retrains coalminers as coders. They've been featured by Wired , Forbes , FastCompany , The Guardian , NPR and NBC News , among others. A former coalminer who becomes a successful developer deserves our respect and admiration. But the data suggests that relatively few will be able to follow their example. Our educational system has long been producing more programmers than the labor market can absorb. A study by the Economic Policy Institute found that the supply of American college graduates with computer science degrees is 50% greater than the number hired into the tech industry each year. For all the talk of a tech worker shortage, many qualified graduates simply can't find jobs. More tellingly, wage levels in the tech industry have remained flat since the late 1990s. Adjusting for inflation, the average programmer earns about as much today as in 1998. If demand were soaring, you'd expect wages to rise sharply in response. Instead, salaries have stagnated. Still, those salaries are stagnating at a fairly high level. The Department of Labor estimates that the median annual wage for computer and information technology occupations is$82,860 – more than twice the national average. And from the perspective of the people who own the tech industry, this presents a problem. High wages threaten profits. To maximize profitability, one must always be finding ways to pay workers less.

Tech executives have pursued this goal in a variety of ways. One is collusion – companies conspiring to prevent their employees from earning more by switching jobs. The prevalence of this practice in Silicon Valley triggered a justice department antitrust complaint in 2010, along with a class action suit that culminated in a $415m settlement . Another, more sophisticated method is importing large numbers of skilled guest workers from other countries through the H1-B visa program. These workers earn less than their American counterparts, and possess little bargaining power because they must remain employed to keep their status. Guest workers and wage-fixing are useful tools for restraining labor costs. But nothing would make programming cheaper than making millions more programmers. And where better to develop this workforce than America's schools? It's no coincidence, then, that the campaign for code education is being orchestrated by the tech industry itself. Its primary instrument is Code.org, a nonprofit funded by Facebook, Microsoft, Google and others . In 2016, the organization spent nearly$20m on training teachers, developing curricula, and lobbying policymakers.

Silicon Valley has been unusually successful in persuading our political class and much of the general public that its interests coincide with the interests of humanity as a whole. But tech is an industry like any other. It prioritizes its bottom line, and invests heavily in making public policy serve it. The five largest tech firms now spend twice as much as Wall Street on lobbying Washington – nearly $50m in 2016. The biggest spender, Google, also goes to considerable lengths to cultivate policy wonks favorable to its interests – and to discipline the ones who aren't. Silicon Valley is not a uniquely benevolent force, nor a uniquely malevolent one. Rather, it's something more ordinary: a collection of capitalist firms committed to the pursuit of profit. And as every capitalist knows, markets are figments of politics. They are not naturally occurring phenomena, but elaborately crafted contraptions, sustained and structured by the state – which is why shaping public policy is so important. If tech works tirelessly to tilt markets in its favor, it's hardly alone. What distinguishes it is the amount of money it has at its disposal to do so. Money isn't Silicon Valley's only advantage in its crusade to remake American education, however. It also enjoys a favorable ideological climate. Its basic message – that schools alone can fix big social problems – is one that politicians of both parties have been repeating for years. The far-fetched premise of neoliberal school reform is that education can mend our disintegrating social fabric. That if we teach students the right skills, we can solve poverty, inequality and stagnation. The school becomes an engine of economic transformation, catapulting young people from challenging circumstances into dignified, comfortable lives. This argument is immensely pleasing to the technocratic mind. It suggests that our core economic malfunction is technical – a simple asymmetry. You have workers on one side and good jobs on the other, and all it takes is training to match them up. Indeed, every president since Bill Clinton has talked about training American workers to fill the "skills gap". But gradually, one mainstream economist after another has come to realize what most workers have known for years: the gap doesn't exist. Even Larry Summers has concluded it's a myth. The problem isn't training. The problem is there aren't enough good jobs to be trained for . The solution is to make bad jobs better, by raising the minimum wage and making it easier for workers to form a union, and to create more good jobs by investing for growth. This involves forcing business to put money into things that actually grow the productive economy rather than shoveling profits out to shareholders. It also means increasing public investment, so that people can make a decent living doing socially necessary work like decarbonizing our energy system and restoring our decaying infrastructure. Everyone should have the opportunity to learn how to code. Coding can be a rewarding, even pleasurable, experience, and it's useful for performing all sorts of tasks. More broadly, an understanding of how code works is critical for basic digital literacy – something that is swiftly becoming a requirement for informed citizenship in an increasingly technologized world. But coding is not magic. It is a technical skill, akin to carpentry. Learning to build software does not make you any more immune to the forces of American capitalism than learning to build a house. Whether a coder or a carpenter, capital will do what it can to lower your wages, and enlist public institutions towards that end. Silicon Valley has been extraordinarily adept at converting previously uncommodified portions of our common life into sources of profit. Our schools may prove an easy conquest by comparison. See also: "Everyone should have the opportunity to learn how to code. " OK, and that's what's being done. And that's what the article is bemoaning. What would be better: teach them how to change tires or groom pets? Or pick fruit? Amazingly condescending article. MrFumoFumo , 21 Sep 2017 14:54 However, training lots of people to be coders won't automatically result in lots of people who can actually write good code. Nor will it give managers/recruiters the necessary skills to recognize which programmers are any good. A valid rebuttal but could I offer another observation? Exposing large portions of the school population to coding is not going to magically turn them into coders. It may increase their basic understanding but that is a long way from being a software engineer. Just as children join art, drama or biology classes so they do not automatically become artists, actors or doctors. I would agree entirely that just being able to code is not going to guarantee the sort of income that might be aspired to. As with all things, it takes commitment, perseverance and dogged determination. I suppose ultimately it becomes the Gattaca argument. alfredooo -> racole , 24 Sep 2017 06:51 Fair enough, but, his central argument, that an overabundance of coders will drive wages in that sector down, is generally true, so in the future if you want your kids to go into a profession that will earn them 80k+ then being a "coder" is not the route to take. When coding is - like reading, writing, and arithmetic - just a basic skill, there's no guarantee having it will automatically translate into getting a "good" job. Wiretrip , 21 Sep 2017 14:14 This article lumps everyone in computing into the 'coder' bin, without actually defining what 'coding' is. Yes there is a glut of people who can knock together a bit of HTML and JavaScript, but that is not really programming as such. There are huge shortages of skilled developers however; people who can apply computer science and engineering in terms of analysis and design of software. These are the real skills for which relatively few people have a true aptitude. The lack of really good skills is starting to show in some terrible software implementation decisions, such as Slack for example; written as a web app running in Electron (so that JavaScript code monkeys could knock it out quickly), but resulting in awful performance. We will see more of this in the coming years... Taylor Dotson -> youngsteveo , 21 Sep 2017 13:53 My brother is a programmer, and in his experience these coding exams don't test anything but whether or not you took (and remember) a very narrow range of problems introduce in the first years of a computer science degree. The entire hiring process seems premised on a range of ill-founded ideas about what skills are necessary for the job and how to assess them in people. They haven't yet grasped that those kinds of exams mostly test test-taking ability, rather than intelligence, creativity, diligence, communication ability, or anything else that a job requires beside coughing up the right answer in a stressful, timed environment without outside resources. I'm an embedded software/firmware engineer. Every similar engineer I've ever met has had the same background - starting in electronics and drifting into embedded software writing in C and assembler. It's virtually impossible to do such software without an understanding of electronics. When it goes wrong you may need to get the test equipment out to scope the hardware to see if it's a hardware or software problem. Coming from a pure computing background just isn't going to get you a job in this type of work. waltdangerfield , 23 Sep 2017 14:42 All schools teach drama and most kids don't end up becoming actors. You need to give all kids access to coding in order for some can go on to make a career out of it. TwoSugarsPlease , 23 Sep 2017 06:13 Coding salaries will inevitably fall over time, but such skills give workers the option, once they discover that their income is no longer sustainable in the UK, of moving somewhere more affordable and working remotely. DiGiT81 -> nixnixnix , 23 Sep 2017 03:29 Completely agree. Coding is a necessary life skill for 21st century but there are levels to every skill. From basic needs for an office job to advanced and specialised. nixnixnix , 23 Sep 2017 00:46 Lots of people can code but very few of us ever get to the point of creating something new that has a loyal and enthusiastic user-base. Everyone should be able to code because it is or will be the basis of being able to create almost anything in the future. If you want to make a game in Unity, knowing how to code is really useful. If you want to work with large data-sets, you can't rely on Excel and so you need to be able to code (in R?). The use of code is becoming so pervasive that it is going to be like reading and writing. All the science and engineering graduates I know can code but none of them have ever sold a stand-alone software. The argument made above is like saying that teaching everyone to write will drive down the wages of writers. Writing is useful for anyone and everyone but only a tiny fraction of people who can write, actually write novels or even newspaper columns. DolyGarcia -> Carl Christensen , 22 Sep 2017 19:24 Immigrants have always a big advantage over locals, for any company, including tech companies: the government makes sure that they will stay in their place and never complain about low salaries or bad working conditions because, you know what? If the company sacks you, an immigrant may be forced to leave the country where they live because their visa expires, which is never going to happen with a local. Companies always have more leverage over immigrants. Given a choice between more and less exploitable workers, companies will choose the most exploitable ones. Which is something that Marx figured more than a century ago, and why he insisted that socialism had to be international, which led to the founding of the First International Socialist. If worker's fights didn't go across country boundaries, companies would just play people from one country against the other. Unfortunately, at some point in time socialists forgot this very important fact. xxxFred -> Tomix Da Vomix , 22 Sep 2017 18:52 SO what's wrong with having lots of people able to code? The only argument you seem to have is that it'll lower wages. So do you think that we should stop teaching writing skills so that journalists can be paid more? And no one os going to "force" kids into high-level abstract coding practices in kindergarten, fgs. But there is ample empirical proof that young children can learn basic principles. In fact the younger that children are exposed to anything, the better they can enhance their skills adn knowlege of it later in life, and computing concepts are no different. Tomix Da Vomix -> xxxFred , 22 Sep 2017 18:40 You're completely missing the point. Kids are forced into the programming field (even STEM as a more general term), before they evolve their abstract reasoning. For that matter, you're not producing highly skilled people, but functional imbeciles and a decent labor that will eventually lower the wages. Conspiracy theory? So Google, FB and others paying hundreds of millions of dollars for forming a cartel to lower the wages is not true? It sounds me that you're sounding more like a 1969 denier that Guardian is. Tech companies are not financing those incentives because they have a good soul. Their primary drive has always been money, otherwise they wouldn't sell your personal data to earn money. But hey, you can always sleep peacefully when your kid becomes a coder. When he is 50, everyone will want to have a Cobol, Ada programmer with 25 years of experience when you can get 16 year old kid from a high school for 1/10 of a price. Go back to sleep... Carl Christensen -> xxxFred , 22 Sep 2017 16:49 it's ridiculous because even out of a pool of computer science B.Sc. or M.Sc. grads - companies are only interested in the top 10%. Even the most mundane company with crappy IT jobs swears that they only hire "the best and the brightest." Carl Christensen , 22 Sep 2017 16:47 It's basically a con-job by the big Silicon Valley companies offshoring as many US jobs as they can, or "inshoring" via exploitation of the H1B visa - so they can say "see, we don't have 'qualified' people in the US - maybe when these kids learn to program in a generation." As if American students haven't been coding for decades -- and saw their salaries plummet as the H1B visa and Indian offshore firms exploded...... Declawed -> KDHughes , 22 Sep 2017 16:40 Dude, stow the attitude. I've tested code from various entities, and seen every kind of crap peddled as gold. But I've also seen a little 5-foot giggly lady with two kids, grumble a bit and save a$100,000 product by rewriting another coder's man-month of work in a few days, without any flaws or cracks. Almost nobody will ever know she did that. She's so far beyond my level it hurts.

And yes, the author knows nothing. He's genuinely crying wolf while knee-deep in amused wolves. The last time I was in San Jose, years ago , the room was already full of people with Indian surnames. If the problem was REALLY serious, a programmer from POLAND was called in.

If you think fighting for a violinist spot is hard, try fighting for it with every spare violinist in the world . I am training my Indian replacement to do my job right now . At least the public can appreciate a good violin. Can you appreciate Duff's device ?

So by all means, don't teach local kids how to think in a straight line, just in case they make a dent in the price of wages IN INDIA.... *sheesh*

Declawed -> IanMcLzzz , 22 Sep 2017 15:35
That's the best possible summarisation of this extremely dumb article. Bravo.

For those who don't know how to think of coding, like the article author, here's a few analogies :

A computer is a box that replays frozen thoughts, quickly. That is all.

Coding is just the art of explaining. Anyone who can explain something patiently and clearly, can code. Anyone who can't, can't.

Making hardware is very much like growing produce while blind. Making software is very much like cooking that produce while blind.

Imagine looking after a room full of young eager obedient children who only do exactly, *exactly*, what you told them to do, but move around at the speed of light. Imagine having to try to keep them from smashing into each other or decapitating themselves on the corners of tables, tripping over toys and crashing into walls, etc, while you get them all to play games together.

The difference between a good coder and a bad coder is almost life and death. Imagine a broth prepared with ingredients from a dozen co-ordinating geniuses and one idiot, that you'll mass produce. The soup is always far worse for the idiot's additions. The more cooks you involve, the more chance your mass produced broth will taste bad.

People who hire coders, typically can't tell a good coder from a bad coder.

Zach Dyer -> Mystik Al , 22 Sep 2017 15:18
Tech jobs will probably always be available long after your gone or until another mass extinction.
edmundberk -> AmyInNH , 22 Sep 2017 14:59
No you do it in your own time. If you're not prepared to put in long days IT is not for you in any case. It was ever thus, but more so now due to offshoring - rather than the rather obscure forces you seem to believe are important.
WithoutPurpose -> freeandfair , 22 Sep 2017 13:21
Bit more rhan that.
peter nelson -> offworldguy , 22 Sep 2017 12:44
Sorry, offworldguy, but you're losing this one really badly. I'm a professional software engineer in my 60's and I know lots of non-professionals in my age range who write little programs, scripts and apps for fun. I know this because they often contact me for help or advice.

So you've now been told by several people in this thread that ordinary people do code for fun or recreation. The fact that you don't know any probably says more about your network of friends and acquaintances than about the general population.

xxxFred , 22 Sep 2017 12:18
This is one of the daftest articles I've come across in a long while.
If it's possible that so many kids can be taught to code well enough so that wages come down, then that proves that the only reason we've been paying so much for development costs is the scarcity of people able to do it, not that it's intrinsically so hard that only a select few could anyway. In which case, there is no ethical argument for keeping the pools of skilled workers to some select group. Anyone able to do it should have an equal opportunity to do it.
What is the argument for not teaching coding (other than to artificially keep wages high)? Why not stop teaching the three R's, in order to boost white-collar wages in general?
Computing is an ever-increasingly intrinsic part of life, and people need to understand it at all levels. It is not just unfair, but tantamount to neglect, to fail to teach children all the skills they may require to cope as adults.
Having said that, I suspect that in another generation or two a good many lower-level coding jobs will be redundant anyway, with such code being automatically generated, and "coders" at this level will be little more than technicians setting various parameters. Even so, understanding the basics behind computing is a part of understanding the world they live in, and every child needs that.
Suggesting that teaching coding is some kind of conspiracy to force wages down is well, it makes the moon-landing conspiracy looks sensible by comparison.
timrichardson -> offworldguy , 22 Sep 2017 12:16
I think it is important to demystify advanced technology, I think that has importance in its own right.Plus, schools should expose kids to things which may spark their interest. Not everyone who does a science project goes on years later to get a PhD, but you'd think that it makes it more likely. Same as giving a kid some music lessons. There is a big difference between serious coding and the basic steps needed to automate a customer service team or a marketing program, but the people who have some mastery over automation will have an advantage in many jobs. Advanced machines are clearly going to be a huge part of our future. What should we do about it, if not teach kids how to understand these tools?
rogerfederere -> William Payne , 22 Sep 2017 12:13
tl;dr.
Mystik Al , 22 Sep 2017 12:08
As automation is about to put 40% of the workforce permanently out of work getting into to tech seems like a good idea!
timrichardson , 22 Sep 2017 12:04
This is like arguing that teaching kids to write is nothing more than a plot to flood the market for journalists. Teaching first aid and CPR does not make everyone a doctor.
Coding is an essential skill for many jobs already: 50 years ago, who would have thought you needed coders to make movies? Being a software engineer, a serious coder, is hard. IN fact, it takes more than technical coding to be a software engineer: you can learn to code in a week. Software Engineering is a four year degree, and even then you've just started a career. But depriving kids of some basic insights may mean they won't have the basic skills needed in the future, even for controlling their car and house. By all means, send you kids to a school that doesn't teach coding. I won't.
James Jones -> vimyvixen , 22 Sep 2017 11:41
Did you learn SNOBOL, or is Snowball a language I'm not familiar with? (Entirely possible, as an American I never would have known Extended Mercury Autocode existed we're it not for a random book acquisition at my home town library when I was a kid.)
William Payne , 22 Sep 2017 11:17
The tide that is transforming technology jobs from "white collar professional" into "blue collar industrial" is part of a larger global economic cycle.

Successful "growth" assets inevitably transmogrify into "value" and "income" assets as they progress through the economic cycle. The nature of their work transforms also. No longer focused on innovation; on disrupting old markets or forging new ones; their fundamental nature changes as they mature into optimising, cost reducing, process oriented and most importantly of all -- dividend paying -- organisations.

First, the market invests. And then, .... it squeezes.

Immature companies must invest in their team; must inspire them to be innovative so that they can take the creative risks required to create new things. This translates into high skills, high wages and "white collar" social status.

Mature, optimising companies on the other hand must necessarily avoid risks and seek variance-minimising predictability. They seek to control their human resources; to eliminate creativity; to to make the work procedural, impersonal and soulless. This translates into low skills, low wages and "blue collar" social status.

This is a fundamental part of the economic cycle; but it has been playing out on the global stage which has had the effect of hiding some of its' effects.

Over the past decades, technology knowledge and skills have flooded away from "high cost" countries and towards "best cost" countries at a historically significant rate. Possibly at the maximum rate that global infrastructure and regional skills pools can support. Much of this necessarily inhumane and brutal cost cutting and deskilling has therefore been hidden by the tide of outsourcing and offshoring. It is hard to see the nature of the jobs change when the jobs themselves are changing hands at the same time.

The ever tighter ratchet of dehumanising industrialisation; productivity and efficiency continues apace, however, and as our global system matures and evens out, we see the seeds of what we have sown sail home from over the sea.

Technology jobs in developed nations have been skewed towards "growth" activities since for the past several decades most "value" and "income" activities have been carried out in developing nations. Now, we may be seeing the early preparations for the diffusion of that skewed, uneven and unsustainable imbalance.

The good news is that "Growth" activities are not going to disappear from the world. They just may not be so geographically concentrated as they are today. Also, there is a significant and attention-worthy argument that the re-balancing of skills will result in a more flexible and performant global economy as organisations will better be able to shift a wider variety of work around the world to regions where local conditions (regulation, subsidy, union activity etc...) are supportive.

For the individuals concerned it isn't going to be pretty. And of course it is just another example of the race to the bottom that pits states and public sector purse-holders against one another to win the grace and favour of globally mobile employers.

As a power play move it has a sort of inhumanly psychotic inevitability to it which is quite awesome to observe.

I also find it ironic that the only way to tame the leviathan that is the global free-market industrial system might actually be effective global governance and international cooperation within a rules-based system.

Both "globalist" but not even slightly both the same thing.

Vereto -> Wiretrip , 22 Sep 2017 11:17
not just coders, it put even IT Ops guys into this bin. Basically good old - so you are working with computers sentence I used to hear a lot 10-15 years ago.
Sangmin , 22 Sep 2017 11:15
You can teach everyone how to code but it doesn't necessarily mean everyone will be able to work as one. We all learn math but that doesn't mean we're all mathematicians. We all know how to write but we're not all professional writers.

I have a graduate degree in CS and been to a coding bootcamp. Not everyone's brain is wired to become a successful coder. There is a particular way how coders think. Quality of a product will stand out based on these differences.

Vereto -> Jared Hall , 22 Sep 2017 11:12
Very hyperbolic is to assume that the profit in those companies is done by decreasing wages. In my company the profit is driven by ability to deliver products to the market. And that is limited by number of top people (not just any coder) you can have.
KDHughes -> kcrane , 22 Sep 2017 11:06
You realise that the arts are massively oversupplied and that most artists earn very little, if anything? Which is sort of like the situation the author is warning about. But hey, he knows nothing. Congratulations, though, on writing one of the most pretentious posts I've ever read on CIF.
offworldguy -> Melissa Boone , 22 Sep 2017 10:21
So you know kids, college age people and software developers who enjoy doing it in their leisure time? Do you know any middle aged mothers, fathers, grandparents who enjoy it and are not software developers?

Sorry, I don't see coding as a leisure pursuit that is going to take off beyond a very narrow demographic and if it becomes apparent (as I believe it will) that there is not going to be a huge increase in coding job opportunities then it will likely wither in schools too, perhaps replaced by music lessons.

Bread Eater , 22 Sep 2017 10:02
From their perspective yes. But there are a lot of opportunities in tech so it does benefit students looking for jobs.
Melissa Boone -> jamesbro , 22 Sep 2017 10:00
No, because software developer probably fail more often than they succeed. Building anything worthwhile is an iterative process. And it's not just the compiler but the other devs, oyur designer, your PM, all looking at your work.
Melissa Boone -> peterainbow , 22 Sep 2017 09:57
It's not shallow or lazy. I also work at a tech company and it's pretty common to do that across job fields. Even in HR marketing jobs, we hire students who can't point to an internship or other kind of experience in college, not simply grades.
Vereto -> savingUK , 22 Sep 2017 09:50
It will take ages, the issue of Indian programmers is in the education system and in "Yes boss" culture.

But on the other hand most of Americans are just as bad as Indians

Melissa Boone -> offworldguy , 22 Sep 2017 09:50
A lot of people do find it fun. I know many kids - high school and young college age - who code in the leisure time because they find it pleasurable to make small apps and video games. I myself enjoy it too. Your argument is like saying since you don't like to read books in your leisure time, nobody else must.

The point is your analogy isn't a good one - people who learn to code can not only enjoy it in their spare time just like music, but they can also use it to accomplish all kinds of basic things. I have a friend who's a software developer who has used code to program his Roomba to vacuum in a specific pattern and to play Candy Land with his daughter when they lost the spinner.

Owlyrics -> CapTec , 22 Sep 2017 09:44
Creativity could be added to your list. Anyone can push a button but only a few can invent a new one.
One company in the US (after it was taken over by a new owner) decided it was more profitable to import button pushers from off-shore, they lost 7 million customers (gamers) and had to employ more of the original American developers to maintain their high standard and profits.
Owlyrics -> Maclon , 22 Sep 2017 09:40
Masters is the new Bachelors.
Maclon , 22 Sep 2017 09:22
So similar to 500k a year people going to university ( UK) now when it used to be 60k people a year( 1980). There was never enough graduate jobs in 1980 so can't see where the sudden increase in need for graduates has come from.
PaulDavisTheFirst -> Ethan Hawkins , 22 Sep 2017 09:17

They aren't really crucial pieces of technology except for their popularity

It's early in the day for me, but this is the most ridiculous thing I've read so far, and I suspect it will be high up on the list by the end of the day.

There's no technology that is "crucial" unless it's involved in food, shelter or warmth. The rest has its "crucialness" decided by how widespread its use is, and in the case of those 3 languages, the answer is "very".

You (or I) might not like that very much, but that's how it is.

Julian Williams -> peter nelson , 22 Sep 2017 09:12
My benchmark would be if the average new graduate in the discipline earns more or less than one of the "professions", Law, medicine, Economics etc. The short answer is that they don't. Indeed, in my experience of professions, many good senior SW developers, say in finance, are paid markedly less than the marketing manager, CTO etc. who are often non-technical.

My benchmark is not "has a car, house etc." but what does 10, 15 20 years of experience in the area generate as a relative income to another profession, like being a GP or a corporate solicitor or a civil servant (which is usually the benchmark academics use for pay scaling). It is not to denigrate, just to say that markets don't always clear to a point where the most skilled are the highest paid.

I was also suggesting that even if you are not intending to work in the SW area, being able to translate your imagination into a program that reflects your ideas is a nice life skill.

AmyInNH -> freeandfair , 22 Sep 2017 09:05
Your assumption has no basis in reality. In my experience, as soon as Clinton ramped up H1Bs, my employer would invite 6 same college/degree/curriculum in for interviews, 5 citizen, 1 foreign student and default offer to foreign student without asking interviewers a single question about the interview. Eventually, the skipped the farce of interviewing citizens all together. That was in 1997, and it's only gotten worse. Wall St's been pretty blunt lately. Openly admits replacing US workers for import labor, as it's the "easiest" way to "grow" the economy, even though they know they are ousting citizens from their jobs to do so.
AmyInNH -> peter nelson , 22 Sep 2017 08:59
"People who get Masters and PhD's in computer science" Feed western universities money, for degree programs that would otherwise not exist, due to lack of market demand. "someone has a Bachelor's in CS" As citizens, having the same college/same curriculum/same grades, as foreign grad. But as citizens, they have job market mobility, and therefore are shunned. "you can make something real and significant on your own" If someone else is paying your rent, food and student loans while you do so.
Ethan Hawkins -> farabundovive , 22 Sep 2017 07:40
While true, it's not the coders' fault. The managers and execs above them have intentionally created an environment where these things are secondary. What's primary is getting the stupid piece of garbage out the door for Q profit outlook. Ship it amd patch it.
offworldguy -> millartant , 22 Sep 2017 07:38
Do most people find it fun? I can code. I don't find it 'fun'. Thirty years ago as a young graduate I might have found it slightly fun but the 'fun' wears off pretty quick.
Ethan Hawkins -> anticapitalist , 22 Sep 2017 07:35
In my estimation PHP is an utter abomination. Python is just a little better but still very bad. Ruby is a little better but still not at all good.

Languages like PHP, Python and JS are popular for banging out prototypes and disposable junk, but you greatly overestimate their importance. They aren't really crucial pieces of technology except for their popularity and while they won't disappear they won't age well at all. Basically they are big long-lived fads. Java is now over 20 years old and while Java 8 is not crucial, the JVM itself actually is crucial. It might last another 20 years or more. Look for more projects like Ceylon, Scala and Kotlin. We haven't found the next step forward yet, but it's getting more interesting, especially around type systems.

A strong developer will be able to code well in a half dozen languages and have fairly decent knowledge of a dozen others. For me it's been many years of: Z80, x86, C, C++, Java. Also know some Perl, LISP, ANTLR, Scala, JS, SQL, Pascal, others...

millartant -> Islingtonista , 22 Sep 2017 07:26
You need a decent IDE
millartant -> offworldguy , 22 Sep 2017 07:24

One is hardly likely to 'do a bit of coding' in ones leisure time

Why not? The right problem is a fun and rewarding puzzle to solve. I spend a lot of my leisure time "doing a bit of coding"

Ethan Hawkins -> Wiretrip , 22 Sep 2017 07:12
The worst of all are the academics (on average).
Ethan Hawkins -> KatieL , 22 Sep 2017 07:09
This makes people like me with 35 years of experience shipping products on deadlines up and down every stack (from device drivers and operating systems to programming languages, platforms and frameworks to web, distributed computing, clusters, big data and ML) so much more valuable. Been there, done that.
Ethan Hawkins -> Taylor Dotson , 22 Sep 2017 07:01
It's just not true. In SV there's this giant vacuum created by Apple, Google, FB, etc. Other good companies struggle to fill positions. I know from being on the hiring side at times.
TheBananaBender -> peter nelson , 22 Sep 2017 07:00
You don't work for a major outsourcer then like Serco, Atos, Agilisys
offworldguy -> LabMonkey , 22 Sep 2017 06:59
Plenty of people? I don't know of a single person outside of my work which is teaming with programmers. Not a single friend, not my neighbours, not my wife or her extended family, not my parents. Plenty of people might do it but most people don't.
Ethan Hawkins -> finalcentury , 22 Sep 2017 06:56
Your ignorance of coding is showing. Coding IS creative.
Ricardo111 -> peter nelson , 22 Sep 2017 06:56
Agreed: by gifted I did not meant innate. It's more of a mix of having the interest, the persistence, the time, the opportunity and actually enjoying that kind of challenge.

While some of those things are to a large extent innate personality traits, others are not and you don't need max of all of them, you just need enough to drive you to explore that domain.

That said, somebody that goes into coding purelly for the money and does it for the money alone is extremely unlikelly to become an exceptional coder.

Ricardo111 -> eirsatz , 22 Sep 2017 06:50
I'm as senior as they get and have interviewed quite a lot of programmers for several positions, including for Technical Lead (in fact, to replace me) and so far my experience leads me to believe that people who don't have a knack for coding are much less likely to expose themselves to many different languages and techniques, and also are less experimentalist, thus being far less likely to have those moments of transcending merely being aware of the visible and obvious to discover the concerns and concepts behind what one does. Without those moments that open the door to the next Universe of concerns and implications, one cannot do state transitions such as Coder to Technical Designer or Technical Designer to Technical Architect.

Sure, you can get the title and do the things from the books, but you will not get WHY are those things supposed to work (and when they will not work) and thus cannot adjust to new conditions effectively and will be like a sailor that can't sail away from sight of the coast since he can't navigate.

All this gets reflected in many things that enhance productivity, from the early ability to quickly piece together solutions for a new problem out of past solutions for different problems to, later, conceiving software architecture designs fittted to the typical usage pattern in the industry for which the software is going to be made.

LabMonkey , 22 Sep 2017 06:50
From the way our IT department is going, needing millions of coders is not the future. It'll be a minority of developers at the top, and an army of low wage monkeys at the bottom who can troubleshoot from a script - until AI comes along that can code faster and more accurately.
LabMonkey -> offworldguy , 22 Sep 2017 06:46

One is hardly likely to 'do a bit of coding' in ones leisure time

Really? I've programmed a few simple videogames in my spare time. Plenty of people do.

CapTec , 22 Sep 2017 06:29
Interesting piece that's fundamentally flawed. I'm a software engineer myself. There is a reason a University education of a minimum of three years is the base line for a junior developer or 'coder'.

Software engineering isn't just writing code. I would say 80% of my time is spent designing and structuring software before I even touch the code.

Explaining software engineering as a discipline at a high level to people who don't understand it is simple.

Most of us who learn to drive learn a few basics about the mechanics of a car. We know that brake pads need to be replaced, we know that fuel is pumped into an engine when we press the gas pedal. Most of us know how to change a bulb if it blows.

The vast majority of us wouldn't be able to replace a head gasket or clutch though. Just knowing the basics isn't enough to make you a mechanic.

Studying in school isn't enough to produce software engineers. Software engineering isn't just writing code, it's cross discipline. We also need to understand the science behind the computer, we need too understand logic, data structures, timings, how to manage memory, security, how databases work etc.

A few years of learning at school isn't nearly enough, a degree isn't enough on its own due to the dynamic and ever evolving nature of software engineering. Schools teach technology that is out of date and typically don't explain the science very well.

This is why most companies don't want new developers, they want people with experience and multiple skills.

Programming is becoming cool and people think that because of that it's easy to become a skilled developer. It isn't. It takes time and effort and most kids give up.

French was on the national curriculum when I was at school. Most people including me can't hold a conversation in French though.

Ultimately there is a SKILL shortage. And that's because skill takes a long time, successes and failures to acquire. Most people just give up.

offworldguy -> thecurio , 22 Sep 2017 06:19
There is a difference. When you teach people music you teach a skill that can be used for a lifetimes enjoyment. One might sit at a piano in later years and play. One is hardly likely to 'do a bit of coding' in ones leisure time.

The other thing is how good are people going to get at coding and how long will they retain the skill if not used? I tend to think maths is similar to coding and most adults have pretty terrible maths skills not venturing far beyond arithmetic. Not many remember how to solve a quadratic equation or even how to rearrange some algebra.

One more thing is we know that if we teach people music they will find a use for it, if only in their leisure time. We don't know that coding will be in any way useful because we don't know if there will be coding jobs in the future. AI might take over coding but we know that AI won't take over playing piano for pleasure.

If we want to teach logical thinking then I think maths has always done this and we should make sure people are better at maths.

Alex Mackaness , 22 Sep 2017 06:08
Am I missing something here? Being able to code is a skill that is a useful addition to the skill armoury of a youngster entering the work place. Much like reading, writing, maths... Not only is it directly applicable and pervasive in our modern world, it is built upon logic.

The important point is that American schools are not ONLY teaching youngsters to code, and producing one dimensional robots... instead coding makes up one part of their overall skill set. Those who wish to develop their coding skills further certainly can choose to do so. Those who specialise elsewhere are more than likely to have found the skills they learnt whilst coding useful anyway.

I struggle to see how there is a hidden capitalist agenda here. I would argue learning the basics of coding is simply becoming seen as an integral part of the school curriculum.

thecurio , 22 Sep 2017 05:56
The word "coding" is shorthand for "computer programming" or "software development" and it masks the depth and range of skills that might be required, depending on the application.

This subtlety is lost, I think, on politicians and perhaps the general public. Asserting that teaching lots of people to code is a sneaky way to commodotise an industry might have some truth to it, but remember that commodotisation (or "sharing and re-use" as developers might call it) is nothing new. The creation of freely available and re-usable software components and APIs has driven innovation, and has put much power in the hands of developers who would not otherwise have the skill or time to tackle such projects.

There's nothing to fear from teaching more people to "code", just as there's nothing to fear from teaching more people to "play music". These skills simply represent points on a continuum.

There's room for everyone, from the kid on a kazoo all the way to Coltrane at the Village Vanguard.

sbw7 -> ragingbull , 22 Sep 2017 05:44
I taught CS. Out of around 100 graduates I'd say maybe 5 were reasonable software engineers. The rest would be fine in tech support or other associated trades, but not writing software. Its not just a set of trainable skills, its a set of attitudes and ways of perceiving and understanding that just aren't that common.
offworldguy , 22 Sep 2017 05:02
I can't understand the rush to teach coding in schools. First of all I don't think we are going to be a country of millions of coders and secondly if most people have the skills then coding is hardly going to be a well paid job. Thirdly you can learn coding from scratch after school like people of my generation did. You could argue that it is part of a well rounded education but then it is as important for your career as learning Shakespeare, knowing what an oxbow lake is or being able to do calculus: most jobs just won't need you to know.
savingUK -> yannick95 , 22 Sep 2017 04:35
While you roll on the floor laughing, these countries will slowly but surely get their act together. That is how they work. There are top quality coders over there and they will soon promoted into a position to organise the others.

You are probably too young to remember when people laughed at electronic products when they were made in Japan then Taiwan. History will repeat it's self.

zii000 -> JohnFreidburg , 22 Sep 2017 04:04
Yes it's ironic and no different here in the UK. Traditionally Labour was the party focused on dividing the economic pie more fairly, Tories on growing it for the benefit of all. It's now completely upside down with Tories paying lip service to the idea of pay rises but in reality supporting this deflationary race to the bottom, hammering down salaries and so shrinking discretionary spending power which forces price reductions to match and so more pressure on employers to cut costs ... ad infinitum.
Labour now favour policies which would cause an expansion across the entire economy through pay rises and dramatically increased investment with perhaps more tolerance of inflation to achieve it.
ID0193985 -> jamesbro , 22 Sep 2017 03:46
Not surprising if they're working for a company that is cold-calling people - which should be banned in my opinion. Call centres providing customer support are probably less abuse-heavy since the customer is trying to get something done.
vimyvixen , 22 Sep 2017 02:04
I taught myself to code in 1974. Fortran, COBOL were first. Over the years as a aerospace engineer I coded in numerous languages ranging from PLM, Snowball, Basic, and more assembly languages than I can recall, not to mention deep down in machine code on more architectures than most know even existed. Bottom line is that coding is easy. It doesn't take a genius to code, just another way of thinking. Consider all the bugs in the software available now. These "coders", not sufficiently trained need adult supervision by engineers who know what they are doing for computer systems that are important such as the electrical grid, nuclear weapons, and safety critical systems. If you want to program toy apps then code away, if you want to do something important learn engineering AND coding.
Dwight Spencer , 22 Sep 2017 01:44
Laughable. It takes only an above-average IQ to code. Today's coders are akin to the auto mechanics of the 1950s where practically every high school had auto shop instruction . . . nothing but a source of cheap labor for doing routine implementations of software systems using powerful code libraries built by REAL software engineers.
sieteocho -> Islingtonista , 22 Sep 2017 01:19
That's a bit like saying that calculus is more valuable than arithmetic, so why teach children arithmetic at all?

Because without the arithmetic, you're not going to get up to the calculus.

JohnFreidburg -> Tommyward , 22 Sep 2017 01:15
I disagree. Technology firms are just like other firms. Why then the collusion not to pay more to workers coming from other companies? To believe that they are anything else is naive. The author is correct. We need policies that actually grow the economy and not leaders who cave to what the CEOs want like Bill Clinton did. He brought NAFTA at the behest of CEOs and all it ended up doing was ripping apart the rust belt and ushering in Trump.
Tommyward , 22 Sep 2017 00:53
So the media always needs some bad guys to write about, and this month they seem to have it in for the tech industry. The article is BS. I interview a lot of people to join a large tech company, and I can guarantee you that we aren't trying to find cheaper labor, we're looking for the best talent.

I know that lots of different jobs have been outsourced to low cost areas, but these days the top companies are instead looking for the top talent globally.

I see this article as a hit piece against Silicon Valley, and it doesn't fly in the face of the evidence.

finalcentury , 22 Sep 2017 00:46
This has got to be the most cynical and idiotic social interest piece I have ever read in the Guardian. Once upon a time it was very helpful to learn carpentry and machining, but now, even if you are learning those, you will get a big and indispensable headstart if you have some logic and programming skills. The fact is, almost no matter what you do, you can apply logic and programming skills to give you an edge. Even journalists.
hoplites99 , 22 Sep 2017 00:02
Yup, rings true. I've been in hi tech for over 40 years and seen the changes. I was in Silicon Valley for 10 years on a startup. India is taking over, my current US company now has a majority Indian executive and is moving work to India. US politicians push coding to drive down wages to Indian levels.

On the bright side I am old enough and established enough to quit tomorrow, its someone else's problem, but I still despise those who have sold us out, like the Clintons, the Bushes, the Googoids, the Zuckerboids.

liberalquilt -> yannick95 , 21 Sep 2017 23:45
Sure markets existed before governments, but capitalism didn't, can't in fact. It needs the organs of state, the banking system, an education system, and an infrastructure.
thegarlicfarmer -> canprof , 21 Sep 2017 23:36
Then teach them other things but not coding! Here in Australia every child of school age has to learn coding. Now tell me that everyone of them will need it? Look beyond computers as coding will soon be automated just like every other job.
Islingtonista , 21 Sep 2017 22:25
If you have never coded then you will not appreciate how labour intensive it is. Coders effectively use line editors to type in, line by line, the instructions. And syntax is critical; add a comma when you meant a semicolon and the code doesn't work properly. Yeah, we use frameworks and libraries of already written subroutines, but, in the end, it is all about manually typing in the code.

Which is an expensive way of doing things (hence the attractions of 'off-shoring' the coding task to low cost economies in Asia).

And this is why teaching kids to code is a waste of time.

Already, AI based systems are addressing the task of interpreting high level design models and simply generating the required application.

One of the first uses templates and a smart chatbot to enable non-tech business people to build their websites. By describe in non-coding terms what they want, the chatbot is able to assemble the necessary components and make the requisite template amendments to build a working website.

Much cheaper than hiring expensive coders to type it all in manually.

It's early days yet, but coding may well be one of the big losers to AI automation along with all those back office clerical jobs.

Teaching kids how to think about design rather than how to code would be much more valuable.

jamesbro -> peter nelson , 21 Sep 2017 21:31
Thick-skinned? Just because you might get a few error messages from the compiler? Call centre workers have to put up with people telling them to fuck off eight hours a day.
Joshua Ian Lee , 21 Sep 2017 21:03
Spot on. Society will never need more than 1% of its people to code. We will need far more garbage men. There are only so many (relatively) good jobs to go around and its about competing to get them.
canprof , 21 Sep 2017 20:53
I'm a professor (not of computer science) and yet, I try to give my students a basic understanding of algorithms and logic, to spark an interest and encourage them towards programming. I have no skin in the game, except that I've seen unemployment first-hand, and want them to avoid it. The best chance most of them have is to learn to code.
Evelita , 21 Sep 2017 14:35
Educating youth does not drive wages down. It drives our economy up. China, India, and other countries are training youth in programming skills. Educating our youth means that they will be able to compete globally. This is the standard GOP stand that we don't need to educate our youth, but instead fantasize about high-paying manufacturing jobs miraculously coming back.

Many jobs, including new manufacturing jobs have an element of coding because they are automated. Other industries require coding skills to maintain web sites and keep computer systems running. Learning coding skills opens these doors.

Coding teaches logic, an essential thought process. Learning to code, like learning anything, increases the brains ability to adapt to new environments which is essential to our survival as a species. We must invest in educating our youth.

cwblackwell , 21 Sep 2017 13:38
"Contrary to public perception, the economy doesn't actually need that many more programmers." This really looks like a straw man introducing a red herring. A skill can be extremely valuable for those who do not pursue it as a full time profession.

The economy doesn't actually need that many more typists, pianists, mathematicians, athletes, dietitians. So, clearly, teaching typing, the piano, mathematics, physical education, and nutrition is a nefarious plot to drive down salaries in those professions. None of those skills could possibly enrich the lives or enhance the productivity of builders, lawyers, public officials, teachers, parents, or store managers.

DJJJJJC , 21 Sep 2017 14:23

A study by the Economic Policy Institute found that the supply of American college graduates with computer science degrees is 50% greater than the number hired into the tech industry each year.

You're assuming that all those people are qualified to work in software because they have a piece of paper that says so, but that's not a valid assumption. The quality of computer science degree courses is generally poor, and most people aren't willing or able to teach themselves. Universities are motivated to award degrees anyway because if they only awarded degrees to students who are actually qualified then that would reflect very poorly on their quality of teaching.

A skills shortage doesn't mean that everyone who claims to have a skill gets hired and there are still some jobs left over that aren't being done. It means that employers are forced to hire people who are incompetent in order to fill all their positions. Many people who get jobs in programming can't really do it and do nothing but create work for everyone else. That's why most of the software you use every day doesn't work properly. That's why competent programmers' salaries are still high in spite of the apparently large number of "qualified" people who aren't employed as programmers.

#### [Oct 01, 2017] Neoliberal economic policies in the United States The impact of globalisation on a `Northern country by Kim Scipes

##### "... However, it is believed that the implementation of these neoliberal economic policies and the cultural wars to divert public attention are part of a larger, conscious political program by the elites within this country that is intended to prevent re-emergence of the collective solidarity among the American people that we saw during the late 1960s-early 1970s (see Piven, 2004, 2007) -- of which the internal breakdown of discipline within the US military, in Vietnam and around the world, was arguably the most crucial (see Moser, 1996; Zeiger, 2006) -- that ultimately challenged, however inchoately, the very structure of the established social order, both internationally and in the United States itself. ..."
###### Oct 01, 2017 | links.org.au

Most contemporary discussions of globalization, and especially of the impact of neoliberal economic policies, focus on the countries of the Global South (see, for example, Bond, 2005; Ellner and Hellinger, eds., 2003; a number of articles in Harris, ed., 2006; Klein, 2007; Monthly Review, 2007; and, among others, see Scipes, 1999, 2006b). Recent articles arguing that the globalization project has receded and might be taking different approaches (Bello, 2006; Thornton, 2007) have also focused on the Global South. What has been somewhat discussed (see Giroux, 2004; Piven, 2004; Aronowitz, 2005) but not systematically addressed, however, is what has been the impact of globalization and especially related neoliberal economic policies on working people in a northern country? [i]

This paper specifically addresses this question by looking at the impact of neoliberal economic policies on working people in the United States . Following Frances Fox Piven, "neoliberal economic policies" refers to the set of policies carried out, in the name of individualism and unfettered markets, for "the deregulation of corporations, and particularly of financial institutions; the rollback of public services and benefit programs; curbing labor unions; 'free trade' policies that would pry open foreign markets; and wherever possible the replacement of public programs with private markets" (Piven, 2007: 13).

The case of the United States is particularly useful to examine because its elites have projected themselves as "first among equals" of the globalization project ( Bello , 2006), and it is the place of the Global North where the neoliberal project has been pursued most resolutely and has advanced the farthest. In other words, the experiences of American workers illuminate the affects of the neoliberal project in the Global North to the greatest extent, and suggest what will happen to working people in other northern countries should they accept their respective government's adoption of such policies.

However, care must be taken as to how this is understood. While sociologically-focused textbooks (e.g., Aguirre and Baker, eds., 2008; Hurst, 2007) have joined together some of the most recent thinking on social inequality -- and have demonstrated that inequality not only exists but is increasing -- this has been generally presented in a national context; in this case, within the United States. And if they recognize that globalization is part of the reason for increasing inequality, it is generally included as one of a set of reasons.

This paper argues that we simply cannot understand what is happening unless we put developments within a global context: the United States effects, and is affected by, global processes. Thus, while some of the impacts can be understood on a national level, we cannot ask related questions as to causes -- or future consequences -- by confining our examination to a national level: we absolutely must approach this from a global perspective (see Nederveen Pieterse, 2004, 2008).

This also must be put in historical perspective as well, although the focus in this piece will be limited to the post-World War II world. Inequality within what is now the United States today did not -- obviously -- arise overnight. Unquestionably, it began at least 400 years ago in Jamestown -- with the terribly unequal and socially stratified society of England's colonial Virginia before Africans were brought to North America (see Fischer, 1989), much less after their arrival in 1619, before the Pilgrims. Yet, to understand the roots of development of contemporary social inequality in the US , we must understand the rise of " Europe " in relation to the rest of the world (see, among others, Rodney, 1972; Nederveen Pieterse, 1989). In short, again, we have to understand that the development of the United States has been and will always be a global project and, without recognizing that, we simply cannot begin to understand developments within the United States .

We also have to understand the multiple and changing forms of social stratification and resulting inequalities in this country. This paper prioritizes economic stratification, although is not limited to just the resulting inequalities. Nonetheless, it does not focus on racial, gender or any other type of social stratification. However, this paper is not written from the perspective that economic stratification is always the most important form of stratification, nor from the perspective that we can only understand other forms of stratification by understanding economic stratification: all that is being claimed herein is that economic stratification is one type of social stratification, arguably one of the most important types yet only one of several, and investigates the issue of economic stratification in the context of contemporary globalization and the neoliberal economic policies that have developed to address this phenomenon as it affects the United States.

Once this global-historical perspective is understood and after quickly suggesting in the "prologue" why the connection between neoliberal economic policies and the affects on working people in the United States has not been made usually, this paper focuses on several interrelated issues: (1) it reports the current economic situation for workers in the United States; (2) it provides a historical overview of US society since World War II; (3) it analyzes the results of US Government economic policies; and (4) it ties these issues together. From that, it comes to a conclusion about the affects of neoliberal economic policies on working people in the United States .

Prologue: Origins of neoliberal economic policies in the United States

As stated above, most of the attention directed toward understanding the impact of neoliberal economic policies on various countries has been confined to the countries of the Global South. However, these policies have been implemented in the United States as well. This arguably began in 1982, when the Chairman of the US Federal Reserve, Paul Volcker, launched a vicious attack on inflation -- and caused the deepest US recession since the Great Depression of the late 1920s-1930s.

However, these neoliberal policies have been implemented in the US perhaps more subtly than in the Global South. This is said because, when trying to understand changes that continue to take place in the United States, these economic policies are hidden "under" the various and sundry "cultural wars" (around issues such as drugs, premarital sex, gun control, abortion, marriages for gays and lesbians) that have been taking place in this country and, thus, not made obvious: most Americans, and especially working people, are not aware of the changes detailed below. [ii]

However, it is believed that the implementation of these neoliberal economic policies and the cultural wars to divert public attention are part of a larger, conscious political program by the elites within this country that is intended to prevent re-emergence of the collective solidarity among the American people that we saw during the late 1960s-early 1970s (see Piven, 2004, 2007) -- of which the internal breakdown of discipline within the US military, in Vietnam and around the world, was arguably the most crucial (see Moser, 1996; Zeiger, 2006) -- that ultimately challenged, however inchoately, the very structure of the established social order, both internationally and in the United States itself. Thus, we see both Democratic and Republican Parties in agreement to maintain and expand the US Empire (in more neutral political science-ese, a "uni-polar world"), but the differences that emerge within each party and between each party are generally confined to how this can best be accomplished. While this paper focuses on the economic and social changes going on, it should be kept in mind that these changes did not "just happen": conscious political decisions have been made that produced social results (see Piven, 2004) that make the US experience -- at the center of a global social order based on an "advanced" capitalist economy -- qualitatively different from experiences in other more economically-developed countries.

So, what has been the impact of these policies on workers in the US?

1) The current situation for workers and growing economic inequality

Steven Greenhouse of The New York Times published a piece on September 4, 2006, writing about entry-level workers, young people who were just entering the job market. Mr. Greenhouse noted changes in the US economy; in fact, there have been substantial changes since early 2000, when the economy last created many jobs.

• Median incomes for families with one parent age 25-34 fell 5.9 per cent between 2000-2005. It had jumped 12 per cent during the late '90s. (The median annual income for these families today is $48,405.) • Between 2000-2005, entry-level wages for male college graduates fell by 7.3 per cent (to$19.72/hr)
• Entry-level wages for female college graduates fell by 3.5 per cent (to $17.08) • Entry-level wages for male high school graduates fell by 3.3 per cent (to$10.93)
• Entry-level wages for female high school graduates fell by 4.9 per cent (to $9.08) Yet, the percentage drop in wages hides the growing gap between college and high school graduates. Today, on average, college grads earn 45 per cent more than high school graduates, where the gap had "only" been 23 per cent in 1979: the gap has doubled in 26 years (Greenhouse, 2006b). A 2004 story in Business Week found that 24 per cent of all working Americans received wages below the poverty line ( Business Week , 2004). [iii] In January 2004, 23.5 million Americans received free food from food pantries. "The surge for food demand is fueled by several forces -- job losses, expired unemployment benefits, soaring health-care and housing costs, and the inability of many people to find jobs that match the income and benefits of the jobs they had." And 43 million people were living in low-income families with children (Jones, 2004). A 2006 story in Business Week found that US job growth between 2001-2006 was really based on one industry: health care. Over this five-year period, the health-care sector has added 1.7 million jobs, while the rest of the private sector has been stagnant. Michael Mandel, the economics editor of the magazine, writes: information technology, the great electronic promise of the 1990s, has turned into one of the greatest job-growth disappointments of all time. Despite the splashy success of companies such as Google and Yahoo!, businesses at the core of the information economy -- software, semi-conductors, telecom, and the whole range of Web companies -- have lost more than 1.1 million jobs in the past five years. These businesses employ fewer Americans today than they did in 1998, when the Internet frenzy kicked into high gear (Mandel, 2006: 56) . In fact, "take away health-care hiring in the US, and quicker than you can say cardiac bypass, the US unemployment rate would be 1 to 2 percentage points higher" (Mandel, 2006: 57). There has been extensive job loss in manufacturing. Over 3.4 million manufacturing jobs have been lost since 1998, and 2.9 million of them have been lost since 2001. Additionally, over 40,000 manufacturing firms have closed since 1999, and 90 per cent have been medium and large shops. In labor-import intensive industries, 25 per cent of laid-off workers remain unemployed after six months, two-thirds of them who do find new jobs earn less than on their old job, and one-quarter of those who find new jobs "suffer wage losses of more than 30 percent" (AFL-CIO, 2006a: 2). The AFL-CIO details the US job loss by manufacturing sector in the 2001-05 period: • Computer and electronics: 543,000 workers or 29.2 per cent • Semiconductor and electronic components: 260,100 or 36.7 per cent • Electrical equipment and appliances: 152,500 or 26 per cent • Vehicle parts: 153,400 or 18.6 per cent • Machinery: 289,400 or 19.9 per cent • Fabricated metal products: 235,200 or 13.3 per cent • Primary metals: 144,800 or 23.5 per cent • Transportation equipment: 246,300 or 12.1 per cent • Furniture products: 58,500 or 13.4 per cent • Textile mills: 158,500 or 43.1 per cent • Apparel 220,000 or 46.6 per cent • Leather products: 24,700 or 38.3 per cent • Printing: 159,300 or 19.9 per cent • Paper products: 122,600 or 20.4 per cent • Plastics and rubber products: 141,400 or 15 per cent • Chemicals: 94,900 or 9.7 per cent • Aerospace: 46,900 or 9.1 per cent • Textiles and apparel declined by 870,000 jobs 1994-2006, a decline of 65.4 per cent (AFL-CIO, 2006a: 2). As of the end of 2005, only 10.7 per cent of all US employment was in manufacturing -- down from 21.6 per cent at its height in 1979 -- in raw numbers, manufacturing employment totaled 19.426 million in 1979, 17.263 million in 2000, and 14.232 million in 2005. [iv] The number of production workers in this country at the end of 2005 was 9.378 million. [v] This was only slightly above the 9.306 million production workers in 1983, and was considerably below the 11.463 million as recently as 2000 (US Bureau of Labor Statistics, 2006b). As one writer puts it, this is "the biggest long-term trend in the economy: the decline of manufacturing." He notes that employment in the durable goods (e.g., cars and cable TV boxes) category of manufacturing has declined from 19 per cent of all employment in 1965 to 8 per cent in 2005 (Altman, 2006). And at the end of 2006, only 11.7 per cent of all manufacturing workers were in unions (US Bureau of Labor Statistics, 2007). In addition, in 2004 and 2005, "the real hourly and weekly wages of US manufacturing workers have fallen 3 per cent and 2.2 per cent respectively" (AFL-CIO, 2006a: 2). The minimum wage level went unchanged for nine years: until recently when there was a small increase -- to$5.85 an hour on July 24, 2007 -- US minimum wage had remained at $5.15 an hour since September 1, 1997 . During that time, the cost of living rose 26 percent. After adjusting for inflation, this was the lowest level of the minimum wage since 1955. At the same time, the minimum wage was only 31 per cent of the average pay of non-supervisory workers in the private sector, which is the lowest share since World War II (Bernstein and Shapiro, 2006). In addition to the drop in wages at all levels, fewer new workers get health care benefits with their jobs: [vi] in 2005, 64 per cent of all college grads got health coverage in entry-level jobs, where 71 per cent had gotten it in 2000 -- a 7 per cent drop in just five years. Over a longer term, we can see what has happened to high school grads: in 1979, two-thirds of all high school graduates got health care coverage in entry-level jobs, while only one-third do today (Greenhouse, 2006b). It must be kept in mind that only about 28 per cent of the US workforce are college graduates -- most of the work force only has a high school degree, although a growing percentage of them have some college, but not college degrees. Because things have gotten so bad, many young adults have gotten discouraged and given up. The unemployment rate is 4.4 per cent for ages 25-34, but 8.2 per cent for workers 20-24. (Greenhouse, 2006b). Yet things are actually worse than that. In the US , unemployment rates are artificially low. If a person gets laid off and gets unemployment benefits -- which fewer and fewer workers even get -- they get a check for six months. If they have not gotten a job by the end of six months -- and it is taking longer and longer to get a job -- and they have given up searching for work, then not only do they loose their unemployment benefits, but they are no longer counted as unemployed: one doesn't even count in the statistics! A report from April 2004 provides details. According to the then-head of the US Federal Reserve System, Alan Greenspan, "the average duration of unemployment increased from twelve weeks in September 2000 to twenty weeks in March [2004]" (quoted in Shapiro, 2004: 4). In March 2004, 354,000 jobs workers had exhausted their unemployment benefits, and were unable to get any additional federal unemployment assistance: Shapiro (2004: 1) notes, "In no other month on record, with data available back to 1971, have there been so many 'exhaustees'." Additionally, although it's rarely reported, unemployment rates vary by racial grouping. No matter what the unemployment rate is, it really only reflects the rate of whites who are unemployed because about 78 per cent of the workforce is white. However, since 1954, the unemployment rate of African-Americans has always been more than twice that of whites, and Latinos are about 1 1/2 times that of whites. So, for example, if the overall rate is five percent, then it's at least ten per cent for African-Americans and 7.5 per cent for Latinos. However, most of the developments presented above -- other than the racial affects of unemployment -- have been relatively recent. What about longer term? Paul Krugman, a Nobel Prize-winning Princeton University economist who writes for The New York Times, pointed out these longer term affects: non-supervisory workers make less in real wages today (2006) than they made in 1973! So, after inflation is taken out, non-supervisory workers are making less today in real terms that their contemporaries made 33 years ago (Krugman, 2006b). Figures provided by Stephen Franklin -- obtained from the US Bureau of Statistics, and presented in 1982 dollars -- show that a production worker in January 1973 earned$9.08 an hour -- and $8.19 an hour in December 2005 (Franklin, 2006). Workers in 2005 also had less long-term job security, fewer benefits, less stable pensions (when they have them), and rising health care costs. [vii] In short, the economic situation for "average Americans" is getting worse. A front-page story in the Chicago Tribune tells about a worker who six years ago was making$29 an hour, working at a nuclear power plant. He got laid off, and now makes $12.24 an hour, working on the bottom tier of a two-tiered unionized factory owned by Caterpillar, the multinational earth moving equipment producer, which is less than half of his old wages. The article pointed out, "Glued to a bare bones budget, he saved for weeks to buy a five-pack of$7 T-shirts" ( Franklin , 2006).

As Foster and Magdoff point out:

Except for a small rise in the late 1990s, real wages have been sluggish for decades. The typical (median-income) family has sought to compensate for this by increasing the number of jobs and working hours per household. Nevertheless, the real (inflation-adjusted) income of the typical household fell for five years in a row through 2004 (Foster and Magdoff, 2009: 28).

A report by Workers Independent News (WIN) stated that while a majority of metropolitan areas have regained the 2.6 million jobs lost during the first two years of the Bush Administration, "the new jobs on average pay $9,000 less than the jobs replaced," a 21 per cent decline from$43,629 to $34,378. However, WIN says that "99 out of the 361 metro areas will not recover jobs before 2007 and could be waiting until 2015 before they reach full recovery" (Russell, 2006). At the same time, Americans are going deeper and deeper into debt. At the end of 2000, total US household debt was$7.008 trillion, with home mortgage debt being $4.811 trillion and non-mortgage debt$1.749 trillion; at the end of 2006, comparable numbers were a total of $12.817 trillion;$9.705 trillion (doubling since 2000); and $2.431 trillion (US Federal Reserve, 2007-rounding by author). Foster and Magdoff (2009: 29) show that this debt is not only increasing, but based on figures from the Federal Reserve, that debt as a percentage of disposable income has increased overall from 62% in 1975 to 96.8% in 2000, and to 127.2% in 2005. Three polls from mid-2006 found "deep pessimism among American workers, with most saying that wages were not keeping pace with inflation, and that workers were worse off in many ways than a generation ago" (Greenhouse, 2006a). And, one might notice, nothing has been said about increasing gas prices, lower home values, etc. The economic situation for most working people is not looking pretty. In fact, bankruptcy filings totaled 2.043 million in 2005, up 31.6 per cent from 2004 (Associated Press, 2006), before gas prices went through the ceiling and housing prices began falling in mid-2006. Yet in 1998, writers for the Chicago Tribune had written, " the number of personal bankruptcy filings skyrocketed 19.5 per cent last year, to an all-time high of 1,335,053, compared with 1,117,470 in 1996" (Schmeltzer and Gruber, 1998). And at the same time, there were 37 million Americans in poverty in 2005, one of out every eight. Again, the rates vary by racial grouping: while 12.6 per cent of all Americans were in poverty, the poverty rate for whites was 8.3 percent; for African Americans, 24.9 per cent were in poverty, as were 21.8 per cent of all Latinos. (What is rarely acknowledged, however, is that 65 per cent of all people in poverty in the US are white.) And 17.6 per cent of all children were in poverty (US Census Bureau, 2005). What about the "other half"? This time, Paul Krugman gives details from a report by two Northwestern University professors, Ian Dew-Becker and Robert Gordon, titled "Where Did the Productivity Growth Go?" Krugman writes: Between 1973 and 2001, the wage and salary income of Americans at the 90th percentile of the income distribution rose only 34 percent, or about 1 per cent per year. But income at the 99th percentile rose 87 percent; income at the 99.9th percentile rose 181 percent; and income at the 99.99th percentile rose 497 percent. No, that's not a misprint. Just to give you a sense of who we're talking about: the nonpartisan Tax Policy Center estimates that this year, the 99th percentile will correspond to an income of$402,306, and the 99.9th percentile to an income of $1,672,726. The Center doesn't give a number for the 99.99th percentile, but it's probably well over$6 million a year (Krugman, 2006a) .

But how can we understand what is going on? We need to put take a historical approach to understand the significance of the changes reported above.

(2) A historical look at the US social order since World War II

When considering the US situation, it makes most sense to look at "recent" US developments, those since World War II. Just after the War, in 1947, the US population was about six per cent of the world's total. Nonetheless, this six per cent produced about 48 per cent of all goods and services in the world! [viii] With Europe and Japan devastated, the US was the only industrialized economy that had not been laid waste. Everybody needed what the US produced -- and this country produced the goods, and sent them around the world.

At the same time, the US economy was not only the most productive, but the rise of the industrial union movement in the 1930s and '40s -- the CIO (Congress of Industrial Organizations) -- meant that workers had some power to demand a share of the wealth produced. In 1946, just after the war, the US had the largest strike wave in its history: 116,000,000 production days were lost in early 1946, as industry-wide strikes in auto, steel, meat packing, and the electrical industry took place across the United States and Canada , along with smaller strikes in individual firms. Not only that, but there were general strikes that year in Oakland , California and Stamford , Connecticut . Workers had been held back during the war, but they demonstrated their power immediately thereafter (Lipsitz, 1994; Murolo and Chitty, 2001). Industry knew that if it wanted the production it could sell, it had to include unionized workers in on the deal.

It was this combination -- devastated economic markets around the world and great demand for goods and services, the world's most developed industrial economy, and a militant union movement -- that combined to create what is now known as the "great American middle class." [ix]

To understand the economic impact of these factors, changes in income distribution in US society must be examined. The best way to illuminate this is to assemble family data on income or wealth [x] -- income data is more available, so that will be used; arrange it from the smallest amount to the largest; and then to divide the population into fifths, or quintiles. In other words, arrange every family's annual income from the lowest to the highest, and divide the total number of family incomes into quintiles or by 20 percents (i.e., fifths). Then compare changes in the top incomes for each quintile. By doing so, one can then observe changes in income distribution over specified time periods.

The years between 1947 and 1973 are considered the "golden years" of the US society. [xi] The values are presented in 2005 dollars, so that means that inflation has been taken out: these are real dollar values, and that means these are valid comparisons.

Figure 1: US family income, in US dollars, growth and istribution, by quintile, 1947-1973 compared to 1973-2001, in 2005 dollars

 Lowest 20% Second 20 % Third 20% Fourth 20% 95 th Percentile [xii] 1947 $11,758$18,973 $25,728$36,506 $59,916 1973$23,144 $38,188$53,282 $73,275$114,234 Difference (26 years) $11,386 (97%)$19,145 (100%) $27,554 (107%)$36,769 (101%) $54,318 (91%) 1973$23,144 $38,188$53,282 $73,275$114,234 2001 $26,467$45,355 $68,925$103,828 $180,973 Difference (28 years)$3,323 (14%) $7,167 (19%)$15,643 (29%) $30,553 (42%)$66,739 (58%)

Source: US Commerce Department, Bureau of the Census (hereafter, US Census Bureau) at www.census.gov/hhes/www/income/histinc/f01ar.html . All dollar values converted to 2005 dollars by US Census Bureau, removing inflation and comparing real values. Differences and percentages calculated by author. Percentages shown in both rows labeled "Difference" show the dollar difference as a percentage of the first year of the comparison.

Data for the first period, 1947-1973 -- the data above the grey line -- shows there was considerable real economic growth for each quintile . Over the 26-year period, there was approximately 100 per cent real economic growth for the incomes at the top of each quintile, which meant incomes doubled after inflation was removed; thus, there was significant economic growth in the society.

And importantly, this real economic growth was distributed fairly evenly . The data in the fourth line (in parentheses) is the percentage relationship between the difference between 1947-1973 real income when compared to the 1947 real income, with 100 per cent representing a doubling of real income: i.e., the difference for the bottom quintile between 1947 and 1973 was an increase of $11,386, which is 97 per cent more than$11,758 that the top of the quintile had in 1947. As can be seen, other quintiles also saw increases of roughly comparable amounts: in ascending order, 100 percent, 107 percent, 101 percent, and 91 percent. In other words, the rate of growth by quintile was very similar across all five quintiles of the population.

When looking at the figures for 1973-2001, something vastly different can be observed. This is the section below the grey line. What can be seen? First, economic growth has slowed considerably: the highest rate of growth for any quintile was that of 58 per cent for those who topped the fifth quintile, and this was far below the "lagger" of 91 per cent of the earlier period.

Second, of what growth there was, it was distributed extremely unequally . And the growth rates for those in lower quintiles were generally lower than for those above them: for the bottom quintile, their real income grew only 14 per cent over the 1973-2001 period; for the second quintile, 19 percent; for the third, 29 percent; for the fourth, 42 percent; and for the 80-95 percent, 58 percent: loosely speaking, the rich are getting richer, and the poor poorer.

Why the change? I think two things in particular. First, as industrialized countries recovered from World War II, corporations based in these countries could again compete with those from the US -- first in their own home countries, and then through importing into the US , and then ultimately when they invested in the United States . Think of Toyota : they began importing into the US in the early 1970s, and with their investments here in the early '80s and forward, they now are the largest domestic US auto producer.

Second cause for the change has been the deterioration of the American labor movement: from 35.3 per cent of the non-agricultural workforce in unions in 1954, to only 12.0 per cent of all American workers in unions in 2006 -- and only 7.4 per cent of all private industry workers are unionized, which is less than in 1930!

This decline in unionization has a number of reasons. Part of this deterioration has been the result of government policies -- everything from the crushing of the air traffic controllers when they went on strike by the Reagan Administration in 1981, to reform of labor law, to reactionary appointments to the National Labor Relations Board, which oversees administration of labor law. Certainly a key government policy, signed by Democratic President Bill Clinton, has been the North American Free Trade Act or NAFTA. One analyst came straight to the point:

Since [NAFTA] was signed in 1993, the rise in the US trade deficit with Canada and Mexico through 2002 has caused the displacement of production that supported 879,280 US jobs. Most of these lost jobs were high-wage positions in manufacturing industries. The loss of these jobs is just the most visible tip of NAFTA's impact on the US economy. In fact, NAFTA has also contributed to rising income inequality, suppressed real wages for production workers, weakened workers' collective bargaining powers and ability to organize unions, and reduced fringe benefits (Scott, 2003: 1).

These attacks by elected officials have been joined by the affects due to the restructuring of the economy. There has been a shift from manufacturing to services. However, within manufacturing, which has long been a union stronghold, there has been significant job loss: between July 2000 and January 2004, the US lost three million manufacturing jobs, or 17.5 percent, and 5.2 million since the historical peak in 1979, so that "Employment in manufacturing [in January 2004] was its lowest since July 1950" (CBO, 2004). This is due to both outsourcing labor-intensive production overseas and, more importantly, technological displacement as new technology has enabled greater production at higher quality with fewer workers in capital-intensive production (see Fisher, 2004). Others have blamed burgeoning trade deficits for the rise: " an increasing share of domestic demand for manufacturing output is satisfied by foreign rather than domestic producers" (Bivens, 2005). [xiii] Others have even attributed it to changes in consumer preferences (Schweitzer and Zaman, 2006). Whatever the reason, of the 50 states, only five (Nevada, North Dakota, Oregon, Utah, and Wyoming) did not see any job loss in manufacturing between 1993-2003, yet 37 lost between 5.6 and 35.9 per cent of their manufacturing jobs during this period (Public Policy Institute, 2004).

However, part of the credit for deterioration of the labor movement must be given to the labor movement itself: the leadership has been simply unable to confront these changes and, at the same time, they have consistently worked against any independent action by rank-and-file members. [xiv]

However, it must be asked: are the changes in the economy presented herein merely statistical manipulations, or is this indicating something real?

This point can be illustrated another way: by using CAGR, the Compound Annual Growth Rate. This is a single number that is computed, based on compounded amounts, across a range of years, to come up with an average number to represent the rate of increase or decrease each year across the entire period. This looks pretty complex, but it is based on the same idea as compound interest used in our savings accounts: you put in $10 today and (this is obviously not a real example) because you get ten per cent interest, so you have$11 the next year. Well, the following year, interest is not computed off the original $10, but is computed on the$11. So, by the third year, from your $10, you now have$12.10. Etc. And this is what is meant by the Compound Annual Growth Rate: this is average compound growth by year across a designated period.

Based on the numbers presented above in Figure 1, the author calculated the Compound Annual Growth Rate by quintiles (Figure 2). The annual growth rate has been calculated for the first period, 1947-1973, the years known as the "golden years" of US society. What has happened since then? Compare results from the 1947-73 period to the annual growth rate across the second period, 1973-2001, again calculated by the author.

Figure 2: Annual percentage of family income growth, by quintile, 1947-1973 compared to 1973-2001

 Population by quintiles 1947-1973 1973-2001 95th Percentile 2.51% 1.66% Fourth quintile 2.72% 1.25% Third quintile 2.84% .92% Second quintile 2.73% .62% Lowest quintile 2.64% .48%

Source: Calculated by author from gather provided by the US Census Bureau at www.census.gov/hhes/www/income/histinc/f01ar.html .

What we can see here is that while everyone's income was growing at about the same rate in the first period -- between 2.51 and 2.84 per cent annually -- by the second period, not only had growth slowed down across the board, but it grew by very different rates: what we see here, again, is that the rich are getting richer, and the poor poorer.

If these figures are correct, a change over time in the percentage of income received by each quintile should be observable. Ideally, if the society were egalitarian, each 20 per cent of the population would get 20 per cent of the income in any one year. In reality, it differs. To understand Figure 3, below, one must not only look at the percentage of income held by a quintile across the chart, comparing selected year by selected year, but one needs to look to see whether a quintile's share of income is moving toward or away from the ideal 20 percent.

Figure 3: Percentage of family income distribution by quintile, 1947, 1973, 2001.

 Population by quintiles 1947 1973 2001 Top fifth (lower limit of top 5percent, or 95th Percentile)-- $184,500 [xv] 43.0% 41.1% 47.7% Second fifth--$103,100 23.1% 24.0% 22.9% Third fifth--$68,304 17.0% 17.5% 15.4% Fourth fifth--$45,021 11.9% 11.9% 9.7% Bottom fifth--$25,616 5.0% 5.5% 4.2% Source: US Census Bureau at www.census.gov/hhes/www/income/histinc/f02ar.html . Unfortunately, much of the data available publicly ended in 2001. However, in the summer of 2007, after years of not releasing data any later than 2001, the Census Bureau released income data up to 2005. It allows us to examine what has taken place regarding family income inequality during the first four years of the Bush Administration. Figure 4: US family income, in US dollars, growth and distribution, by quintile, 2001-2005, 2005 US dollars  Lowest 20% Second 20% Middle 20% Fourth 20% Lowest level of top 5% 2001$26,467 $45,855$68,925 $103,828$180,973 2005 $25,616$45,021 $68,304$103,100 $184,500 Difference (4 years) -$851 (-3.2%) -$834 (-1.8%) -$621 (-.01%) -$728 (-.007%)$3,527 (1.94%)

Source: US Census Bureau at www.census.gov/hhes/www/income/histinc/f01ar.html . (Over time, the Census Bureau refigures these amounts, so they have subsequently converted amounts to 2006 dollar values. These values are from their 2005 dollar values, and were calculated by the Census Bureau.) Differences and percentages calculated by author.

Thus, what we've seen under the first four years of the Bush Administration is that for at most Americans, their economic situation has worsened: not only has over all economic growth for any quintile slowed to a minuscule 1.94 per cent at the most, but that the bottom 80 per cent actually lost income; losing money (an absolute loss), rather than growing a little but falling further behind the top quintile (a relative loss). Further, the decrease across the bottom four quintiles has been suffered disproportionately by those in the lowest 40 per cent of the society.

This can perhaps be seen more clearly by examining CAGR rates by period.

We can now add the results of the 2001-2005 period share of income by quintile to our earlier chart:

Figure 5: Percentage of income growth per year by percentile, 1947-2005

 Population by quintiles 1947-1973 1973-2001 2001-2005 Top 95 percentile 2.51% 1.66% .48% Fourth fifth 2.72% 1.25% -.18% Third fifth 2.84% .92% -.23% Second fifth 2.73% .62% -.46% Bottom fifth 2.64% .48% -.81%

Source: Calculated by author from data gathered from the US Department of the Census www.census.gov/hhes/www/income/histinc/f01ar.html .

As can be seen, the percentage of family income at each of the four bottom quintiles is less in 2005 than in 1947; the only place there has been improvement over this 58-year period is at the 95th percentile (and above).

Figure 6: Percentage of family income distribution by quintile, 1947, 1973, 2001, 2005.

 Population by quintiles 1947 1973 2001 2005 Top fifth (lower limit of top 5percent, or 95th Percentile)-- $184,500 43.0% 41.1% 47.7% 48.1% Second fifth--$103,100 23.1% 24.0% 22.9% 22.9% Third fifth--$68,304 17.0% 17.5% 15.4% 15.3% Fourth fifth--$45,021 11.9% 11.9% 9.7% 9.6% Bottom fifth--$25,616 5.0% 5.5% 4.2% 4.0% Source: U.S. Census Bureau at www.census.gov/hhes/www/income/histinc/f02ar.html . What has been presented so far, regarding changes in income distribution, has been at the group level; in this case, quintile by quintile. It is time now to see how this has affected the society overall. Sociologists and economists use a number called the Gini index to measure inequality. Family income data has been used so far, and we will continue using it. A Gini index is fairly simple to use. It measures inequality in a society. A Gini index is generally reported in a range between 0.000 and 1.000, and is written in thousandths, just like a winning percentage mark: three digits after the decimal. And the higher the Gini score, the greater the inequality. Looking at the Gini index, we can see two periods since 1947, when the US Government began computing the Gini index for the country. From 1947-1968, with yearly change greater or smaller, the trend is downward, indicating reduced inequality: from .376 in 1947 to .378 in 1950, but then downward to .348 in 1968. So, again, over the first period, the trend is downward. What has happened since then? From the low point in 1968 of .348, the trend has been upward. In 1982, the Gini index hit .380, which was higher than any single year between 1947-1968, and the US has never gone below .380 since then. By 1992, it hit .403, and we've never gone back below .400. In 2001, the US hit .435. But the score for 2005 has only recently been published: .440 (source: http://www.census.gov/hhes/www/income/histinc/f04.html ). So, the trend is getting worse, and with the policies established under George W. Bush, I see them only continuing to increase in the forthcoming period. [And by the way, this increasing trend has continued under both the Republicans and the Democrats, but since the Republicans have controlled the presidency for 18 of the last 26 years (since 1981), they get most of the credit -- but let's not forget that the Democrats have controlled Congress across many of those years, so they, too, have been an equal opportunity destroyer!] However, one more question must be asked: how does this income inequality in the US, compare to other countries around the world? Is the level of income inequality comparable to other "developed" societies, or is it comparable to "developing" countries? We must turn to the US Central Intelligence Agency (CIA) for our data. The CIA computes Gini scores for family income on most of the countries around the world, and the last time checked in 2007 (August 1), they had data on 122 countries on their web page and these numbers had last been updated on July 19, 2007 (US Central Intelligence Agency, 2007). With each country listed, there is a Gini score provided. Now, the CIA doesn't compute Gini scores yearly, but they give the last year it was computed, so these are not exactly equivalent but they are suggestive enough to use. However, when they do assemble these Gini scores in one place, they list them alphabetically, which is not of much comparative use (US Central Intelligence Agency, 2007). However, the World Bank categorizes countries, which means they can be compared within category and across categories. The World Bank, which does not provide Gini scores, puts 208 countries into one of four categories based on Gross National Income per capita -- that's total value of goods and services sold in the market in a year, divided by population size. This is a useful statistic, because it allows us to compare societies with economies of vastly different size: per capita income removes the size differences between countries. The World Bank locates each country into one of four categories: lower income, lower middle income, upper middle income, and high income (World Bank, 2007a). Basically, those in the lower three categories are "developing" or what we used to call "third world" countries, while the high income countries are all of the so-called developed countries. The countries listed by the CIA with their respective Gini scores were placed into the specific World Bank categories in which the World Bank had previously located them (World Bank, 2007b). Once grouped in their categories, median Gini scores were computed for each group. When trying to get one number to represent a group of numbers, median is considered more accurate than an average, so the median was used, which means half of the scores are higher, half are lower -- in other words, the data is at the 50th percentile for each category. The Gini score for countries, by Gross National Income per capita, categorized by the World Bank: Figure 7: Median Gini Scores by World Bank income categories (countries selected by US Central Intelligence Agency were placed in categories developed by the World Bank) and compared to 2004 US Gini score as calculated by US Central Intelligence Agency (CIA)  Income category Median Gini score Gini score, US (2004) Low income countries (less than$875/person/year) .406 .450 Lower-middle income countries (between $876-3,465/person/year) .414 .450 Upper-middle income countries (between$3,466-10,725/person/year .370 .450 Upper-income countries (over $10,726/person/year .316 .450 As can be seen, with the (CIA-calculated) Gini score of .450, the US family income is more unequal than the medians for each category, and is more unequal than some of the poorest countries on earth, such as Bangladesh (.318 -- calculated in 2000), Cambodia (.400, 2004 est.), Laos (.370-1997), Mozambique (.396, 1996-97), Uganda (.430-1999) and Vietnam (.361, 1998). This same finding also holds true using the more conservative Census Bureau-calculated Gini score of .440. Thus, the US has not only become more unequal over the 35 years, as has been demonstrated above, but has attained a level of inequality that is much more comparable to those of developing countries in general and, in fact, is more unequal today than some of the poorest countries on Earth. There is nothing suggesting that this increasing inequality will lessen anytime soon. And since this increasing income inequality has taken place under the leadership of both major political parties, there is nothing on the horizon that suggests either will resolutely address this issue in the foreseeable future regardless of campaign promises made. However, to move beyond discussion of whether President Obama is likely to address these and related issues, some consideration of governmental economic policies is required. Thus, he will be constrained by decisions made by previous administrations, as well as by the ideological blinders worn by those he has chosen to serve at the top levels of his administration. 3) Governmental economic policies There are two key points that are especially important for our consideration: the US Budget and the US National Debt. They are similar, but different -- and consideration of each of them enhances understanding. A) US budget. Every year, the US Government passes a budget, whereby governmental officials estimate beforehand how much money needs to be taken in to cover all expenses. If the government actually takes in more money than it spends, the budget is said to have a surplus; if it takes in less than it spends, the budget is said to be in deficit. Since 1970, when Richard Nixon was President, the US budget has been in deficit every year except for the last four years under Clinton (1998-2001), where there was a surplus. But this surplus began declining under Clinton -- it was$236.2 billion in 2000, and only $128.2 billion in 2001, Clinton 's last budget. Under Bush, the US has gone drastically into deficit: -$157.8 billion in 2002; -$377.6 billion in 2003; -$412.7 billion in 2004; -$318.3 billion in 2005; and "only"-$248.2 billion in 2006 (Economic Report of the President, 2007: Table B-78).

Now, that is just yearly surpluses and deficits. They get combined with all the other surpluses and deficits since the US became a country in 1789 to create to create a cumulative amount, what is called the National Debt.

B) US national debt. Between 1789 and1980 -- from Presidents Washington through Carter -- the accumulated US National Debt was $909 billion or, to put it another way,$.909 trillion. During Ronald Reagan's presidency (1981-89), the National Debt tripled, from $.9 trillion to$2.868 trillion. It has continued to rise. As of the end of 2006, 17 years later and after a four-year period of surpluses where the debt was somewhat reduced, National Debt (or Gross Federal Debt) was $8.451 trillion (Economic Report of the President, 2007: Table B-78). To put it into context: the US economy, the most productive in the world, had a Gross Domestic Product (GDP) of$13.061 trillion in 2006, but the National Debt was $8.451 trillion -- 64.7 per cent of GDP -- and growing (Economic Report of the President, 2007: Table B-1). In April 2006, one investor reported that "the US Treasury has a hair under$8.4 trillion in outstanding debt. How much is that? He put it into this context: " if you deposited one million dollars into a bank account every day, starting 2006 years ago, that you would not even have ONE trillion dollars in that account" (Van Eeden, 2006).

Let's return to the budget deficit: like a family budget, when one spends more than one brings in, they can do basically one of three things: (a) they can cut spending; (b) they can increase taxes (or obviously a combination of the two); or (c) they can take what I call the "Wimpy" approach.

For those who might not know this, Wimpy was a cartoon character, a partner of "Popeye the Sailor," a Saturday morning cartoon that was played for over 30 years in the United States . Wimpy had a great love for hamburgers. And his approach to life was summed up in his rap: "I'll gladly give you two hamburgers on Tuesday, for a hamburger today."

What is argued is that the US Government has been taking what I call the Wimpy approach to its budgetary problems: it does not reduce spending, it does not raise taxes to pay for the increased expenditures -- in fact, President Bush has cut taxes for the wealthiest Americans [xvi] -- but instead it sells US Government securities, often known as Treasuries, to rich investors, private corporations or, increasingly, to other countries to cover the budget deficit. In a set number of years, the US Government agrees to pay off each bond -- and the difference between what the purchaser bought them for and the increased amount the US Government pays to redeem them is the cost of financing the Treasuries, a certain percentage of the total value. By buying US Treasuries, other countries have helped keep US interest rates low, helping to keep the US economy in as good of shape as it has been (thus, keeping the US market flourishing for them), while allowing the US Government not to have to confront its annual deficits. At the end of 2006, the total value of outstanding Treasuries -- to all investors, not just other countries -- was $8.507 trillion (Economic Report of the President, 2007: Table B-87). It turns out that at in December 2004, foreigners owned approximately 61 per cent of all outstanding US Treasuries. Of that, seven per cent was held by China ; these were valued at$223 billion (Gundzik, 2005).

The percentage of foreign and international investors' purchases of the total US public debt since 1996 has never been less than 17.7 percent, and it has reached a high of 25.08 per cent in September 2006. In September 2006, foreigners purchased $2.134 trillion of Treasuries; these were 25.08 per cent of all purchases, and 52.4 per cent of all privately-owned purchases (Economic Report of the President, 2007: Table B-89). [xvii] Altogether, "the world now holds financial claims amounting to$3.5 trillion against the United States , or 26 per cent of our GDP" (Humpage and Shenk, 2007: 4).

Since the US Government continues to run deficits, because the Bush Administration has refused to address this problem, the United States has become dependent on other countries buying Treasuries. Like a junky on heroin, the US must get other investors (increasingly countries) to finance its budgetary deficits.

To keep the money flowing in, the US must keep interest rates high -- basically, interest rates are the price that must be paid to borrow money. Over the past year or so, the Federal Reserve has not raised interest rates, but prior to that, for 15 straight quarterly meetings, they did. And, as known, the higher the interest rate, the mostly costly it is to borrow money domestically, which means increasingly likelihood of recession -- if not worse. In other words, dependence on foreigners to finance the substantial US budget deficits means that the US must be prepared to raise interests rates which, at some point, will choke off domestic borrowing and consumption, throwing the US economy into recession. [xviii]

Yet this threat is not just to the United States -- according to the International Monetary Fund (IMF), it is a threat to the global economy. A story about a then-recently issued report by the IMF begins, "With its rising budget deficit and ballooning trade imbalance, the United States is running up a foreign debt of such record-breaking proportions that it threatens the financial stability of the global economy ." The report suggested that net financial obligations of the US to the rest of the world could equal 40 per cent of its total economy if nothing was done about it in a few years, "an unprecedented level of external debt for a larger industrial country" according to the report. What was perhaps even more shocking than what the report said was which institution said it: "The IMF has often been accused of being an adjunct of the United States , its largest shareholder" (Becker and Andrews, 2004).

Other analysts go further. After discussing the increasingly risky nature of global investing, and noting that "The investor managers of private equity funds and major banks have displaced national banks and international bodies such as the IMF," Gabriel Kolko (2007) quotes Stephen Roach, Morgan Stanley's chief economist, on April 24, 2007: "a major financial crisis seemed imminent and that the global institutions that could forestall it, including the IMF, the World Bank and other mechanisms of the international financial architecture, were utterly inadequate." Kolko recognizes that things may not collapse immediately, and that analysts could be wrong, but still concludes, "the transformation of the global financial system will sooner or later lead to dire results" (Kolko, 2007: 5).

What might happen if investors decided to take their money out of US Treasuries and, say, invest in Euro-based bonds? The US would be in big trouble, would be forced to raise its interest rates even higher than it wants -- leading to possibly a severe recession -- and if investors really shifted their money, the US could be observably bankrupt; the curtain hiding the "little man" would be opened, and he would be observable to all.

Why would investors rather shift their investment money into Euro-bonds instead of US Treasuries? Well, obviously, one measure is the perceived strength of the US economy. To get a good idea of how solid a country's economy is, one looks at things such as budget deficits, but perhaps even more importantly balance of trade: how well is this economy doing in comparison with other countries?

The US international balance of trade is in the red and is worsening: -$717 billion in 2005. In 1991, it was -$31 billion. Since 1998, the US trade balance has set a new record for being in the hole every year, except during 2001, and then breaking the all time high the very next year! -$165 B in 1998; -$263 B in 1999; -$378 B in 2000; only -$362 B in 2001; -$421 B in 2002; -$494 B in 2003; -$617 B in 2004; and -$717 B in 2005 (Economic Report of the President, 2007: Table B-103). According to the Census Department, the balance of trade in 2006 was -$759 billion (US Census Bureau, 2007). And the US current account balance, the broadest measure of a country's international financial situation -- which includes investment inside and outside the US in addition to balance of trade -- is even worse: it was -$805 B in 2005, or 6.4 per cent of national income. "The bottom line is that a current account deficit of this unparalleled magnitude is unsustainable and there is no hope of it being painlessly resolved through higher exports alone," according to one analyst (quoted in Swann, 2006). Scott notes that the current account deficit in 2006 was -$857 billion (Scott, 2007a: 8, fn. 1). "In effect, the United States is living beyond its means and selling off national assets to pay its bills" (Scott, 2007b: 1). [xix] In addition, during mid-2007, there was a bursting of a domestic "housing bubble," which has threatened domestic economic well-being but that ultimately threatens the well-being of global financial markets. There had been a tremendous run-up in US housing values since 1995 -- with an increase of more than 70 per cent after adjusting for the rate of inflation -- and this had created "more than$8 trillion in housing wealth compared with a scenario in which house prices had continued to rise at the same rate of inflation," which they had done for over 100 years, between 1890 and 1995 (Baker, 2007: 8).

This led to a massive oversupply of housing, accompanied with falling house prices: according to Dean Baker, "the peak inventory of unsold new homes of 573,000 in July 2006 was more than 50 per cent higher than the previous peak of 377,000 in May of 1989" (Baker, 2007: 12-13). This caused massive problems in the sub-prime housing market -- estimates are that almost $2 trillion in sub-prime loans were made during 2005-06, and that about$325 billion of these loans will default, with more than 1 million people losing their homes (Liedtke, 2007) -- but these problems are not confined to the sub-prime loan category: because sub-prime and "Alt-A" mortgages (the category immediately above sub-prime) financed 40 per cent of the housing market in 2006, "it is almost inevitable that the problems will spill over into the rest of the market" (Baker, 2007: 15). And Business Week agrees: "Subprime woes have moved far beyond the mortgage industry." It notes that at least five hedge funds have gone out of business, corporate loans and junk bonds have been hurt, and the leveraged buyout market has been hurt (Goldstein and Henry, 2007).

David Leonhardt (2007) agrees with the continuing threat to the financial industry. Discussing "adjustable rate mortgages" -- where interest rates start out low, but reset to higher rates, resulting in higher mortgage payments to the borrower -- he points out that about \$50 billion