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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 ;-)  Index 2017 2016 2015 2014 2013 2012 2011 2010 2009 #### [Feb 15, 2019] Losing a job in your 50s is especially tough. Here are 3 steps to take when layoffs happen by Peter Dunn ##### Unemployment usually is just six month or so; this is the time when you can plan you "downsizing". You do not need to rush. ##### Often losing job logically requires selling your home and moving to a modest apartment, especially if no children are living with you. At 50 it is abut time... You need to do it later anyway, so why not now. ##### But that's a very tough decision to make... Still, if the current housing market is close to the top, this is one of the best moves you can make. Getting from your house several hundred thousand dollars allows you to create kind of private pension to compensate for losses in income till you hit your Social Security check, which currently means 66. #####$300K investment in A quality bonds that returns 3% per year are enough to provides you with $24K per year "pension" from 50 to age of 66. That allows you to pay for the apartment and amenities. The food is extra... ##### This way you can take lower paid job and survive. ##### And in this case you 401k remains intact and can supplement your SS income later on. Simple Excel spreadsheet can provide you with a complete picture of what you can afford and what not. Actually ability to walk of fresh air for 3 or more hours each day worth a lot of money ;-) ##### Notable quotes: ##### "... Losing a job in your 50s is a devastating moment, especially if the job is connected to a long career ripe with upward mobility. As a frequent observer of this phenomenon, it's as scary and troublesome as unchecked credit card debt or an expensive chronic health condition. This is one of the many reasons why I believe our 50s can be the most challenging decade of our lives. ..." ##### "... The first thing you should do is identify the exact day your job income stops arriving ..." ##### "... Next, and by next I mean five minutes later, explore your eligibility for unemployment benefits, and then file for them if you're able. ..." ##### "... Grab your bank statement, a marker, and a calculator. As much as you want to pretend its business as usual, you shouldn't. Identify expenses that don't make sense if you don't have a job. Circle them. Add them up. Resolve to eliminate them for the time being, and possibly permanently. While this won't necessarily lengthen your fuse, it could lessen the severity of a potential boom. ..." ###### Feb 15, 2019 | finance.yahoo.com ... ... ... Losing a job in your 50s is a devastating moment, especially if the job is connected to a long career ripe with upward mobility. As a frequent observer of this phenomenon, it's as scary and troublesome as unchecked credit card debt or an expensive chronic health condition. This is one of the many reasons why I believe our 50s can be the most challenging decade of our lives. Assuming you can clear the mental challenges, the financial and administrative obstacles can leave you feeling like a Rube Goldberg machine. Income, health insurance, life insurance, disability insurance, bills, expenses, short-term savings and retirement savings are all immediately important in the face of a job loss. Never mind your Parent PLUS loans, financially-dependent aging parents, and boomerang children (adult kids who live at home), which might all be lurking as well. When does your income stop? From the shocking moment a person learns their job is no longer their job, the word "triage" must flash in bright lights like an obnoxiously large sign in Times Square. This is more challenging than you might think. Like a pickpocket bumping into you right before he grabs your wallet, the distraction is the problem that takes your focus away from the real problem. This is hard to do because of the emotion that arrives with the dirty deed. The mind immediately begins to race to sources of money and relief. And unfortunately that relief is often found in the wrong place. The first thing you should do is identify the exact day your job income stops arriving . That's how much time you have to defuse the bomb. Your fuse may come in the form of a severance package, or work you've performed but have't been paid for yet. When do benefits kick in? Next, and by next I mean five minutes later, explore your eligibility for unemployment benefits, and then file for them if you're able. However, in some states severance pay affects your immediate eligibility for unemployment benefits. In other words, you can't file for unemployment until your severance payments go away. Assuming you can't just retire at this moment, which you likely can't, you must secure fresh employment income quickly. But quickly is relative to the length of your fuse. I've witnessed way too many people miscalculate the length and importance of their fuse. If you're able to get back to work quickly, the initial job loss plus severance ends up enhancing your financial life. If you take too much time, by your choice or that of the cosmos, boom. The next move is much more hands-on, and must also be performed the day you find yourself without a job. What nonessentials do I cut? Grab your bank statement, a marker, and a calculator. As much as you want to pretend its business as usual, you shouldn't. Identify expenses that don't make sense if you don't have a job. Circle them. Add them up. Resolve to eliminate them for the time being, and possibly permanently. While this won't necessarily lengthen your fuse, it could lessen the severity of a potential boom. The idea of diving into your spending habits on the day you lose your job is no fun. But when else will you have such a powerful reason to do so? You won't. It's better than dipping into your assets to fund your current lifestyle. And that's where we'll pick it up the next time. We've covered day one. In my next column we will tackle day two and beyond. Peter Dunn is an author, speaker and radio host, and he has a free podcast: "Million Dollar Plan." Have a question for Pete the Planner? Email him at AskPete@petetheplanner.com. The views and opinions expressed in this column are the author's and do not necessarily reflect those of USA TODAY. #### [Feb 13, 2019] Microsoft patches 0-day vulnerabilities in IE and Exchange ##### It is unclear how long this vulnerability exists, but this is pretty serious staff that shows how Hillary server could be hacked via Abedin account. As Abedin technical level was lower then zero, to hack into her home laptop just just trivial. ###### Feb 13, 2019 | arstechnica.com Microsoft also patched Exchange against a vulnerability that allowed remote attackers with little more than an unprivileged mailbox account to gain administrative control over the server. Dubbed PrivExchange, CVE-2019-0686 was publicly disclosed last month , along with proof-of-concept code that exploited it. In Tuesday's advisory , Microsoft officials said they haven't seen active exploits yet but that they were "likely." #### [Feb 13, 2019] Death of the Public University Uncertain Futures for Higher Education in the Knowledge Economy ##### Notable quotes: ##### "... This assault on academic freedom by neoliberalism justifies itself by calling for "transparency" and "accountability" to the taxpayer and the public. But it operates used utter perversion of those terms. In the Neoliberal context, they mean "total surveillance" and "rampant rent-seeking. ..." ###### Feb 11, 2019 | www.amazon.com skeptic, February 11, 2019 The eyes opening, very important for any student or educator book This book is the collection of more than dozen of essays of various authors, but even the Introduction (Privatizing the Public University: Key Trends, Countertrends, and Alternatives) is worth the price of the book Trends in neo-liberalization of university education are not new. But recently they took a more dangerous turn. And they are not easy to decipher, despite the fact that they are greatly affect the life of each student or educator. In this sense this is really an eyes-opening book. In Europe previously higher education as assessable for free or almost free, but for talented student only. Admission criteria were strict and checked via written and oral entrance exams on key subjects. Now the tend is to view university as business that get customers, charge them exorbitant fees and those customers get diploma as hamburgers in McDonalds at the end for their money. Whether those degree are worth money charged, or not and were suitable for the particular student of not (many are "fake" degrees with little or no chances for getting employment) is not university business. On the contrary, marketing is used to attract as many students as possible and many of those student now remain in debt for large part of their adult life. In other words, the neoliberalization of the university in the USA creates new, now dominant trend -- the conversion of the university into for-profit diploma mills, which are essentially a new type of rent-seeking (and they even attract speculative financial capital and open scamsters, like was in case of "Trump University" ). Even old universities with more than a century history more and more resemble diploma mills. This assault on academic freedom by neoliberalism justifies itself by calling for "transparency" and "accountability" to the taxpayer and the public. But it operates used utter perversion of those terms. In the Neoliberal context, they mean "total surveillance" and "rampant rent-seeking. " Neoliberalism has converted education from a public good to a personal investment in the future, a future conceived in terms of earning capacity. As this is about your future earning potential, it is logical that for a chance to increase it you need to take a loan. Significantly, in the same period per capita, spending on prisons increased by 126 percent (Newfield 2008: 266). Between the 1970s and 1990s there was a 400 percent increase in charges in tuition, room, and board in U.S. universities and tuition costs have grown at about ten times the rate of family income (ibid.). What these instances highlight is not just the state's retreat from direct funding of higher education but also a calculated initiative to enable private companies to capture and profit from tax-funded student loans. The other tendency is also alarming. Funds now are allocated to those institutions that performed best in what has become a fetishistic quest for ever-higher ratings. That creates the 'rankings arms-race.' It has very little or nothing to do with the quality of teaching of students in a particular university. On the contrary, the curriculums were "streamlined" and "ideologically charged courses" such as neoclassical economics are now required for graduation even in STEM specialties. In the neoliberal university professors are now under the iron heel of management and various metrics were invented to measure the "quality of teaching." Most of them are very perverted, or can be perverted as when a measurement becomes a target teachers start to focus their resources and activities primarily on what 'counts' rather than on their wider competencies, professional ethics and societal goals (see Kohn and Shore, this volume). Administration bloat and academic decline is another prominent feature of the neoliberal university. University presidents now view themselves as CEO and want similar salaries. The same is true for the growing staff of university administrators. The recruitment of administrators has far outpaced the growth in the number of faculty – or even students. Meanwhile, universities claim to be struggling with budget crises that force to reduce permanent academic posts, and widely use underpaid and overworked adjunct staff – the 'precariat' paid just a couple of thousand dollars per course and often existing on the edge of poverty, or in real poverty. Money now is the key objective and the mission changed from cultural to "for profit" business including vast expenses on advancement of the prestige and competitiveness of the university as an end in itself. Ability to get grants is now an important criteria of getting the tenure. #### [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 12, 2019] The Neoliberal University ##### Notable quotes: ##### "... Neoliberalism has transformed education from a social good into a production process where the final product is a reserve army of workers for the information economy. What David Harvey calls the "state-finance nexus" pushes universities to play the part by withholding state funds until they expand their enrollment and increase the number of college graduates entering the workforce.[13] In 2012, the Obama Administration identified increasing the number of undergraduate STEM degrees by one million over the next decade as a 'Cross-Agency Priority Goal' on the recommendation of the President's Council of Advisors on Science and Technology (PCAST). ..." ##### "... The present relationship between the university and the state flows from the dynamics of financialization. As financialization transforms the role of the United States in the global economy, it appropriates higher education to suit the needs of finance capital. Compared to the ever-expanding administrative apparatus responsible for managing contracts and investments, programs outside of STEM and business fields are considered superfluous. Humanities programs are often downsized and tenure tracks closed to push professors into permanent part-time employment arrangements.[15] Meanwhile, schools like Northeastern and MIT are surrounded by high-tech and business firms that rely on students and research facilities for cheap labor and productive capital. ..." ##### "... The position of financial and credit institutions as the financiers of America's productive infrastructure has far-reaching consequences for social institutions like universities with the potential to absorb surplus capital in the form of credit or produce the 21st-century 'information' workforce. Students, and faculty at universities like Northeastern will struggle against market pressures on universities to attract outside investors while downsizing education for as long as the U.S. economy is dominated by finance. ..." ###### Feb 12, 2019 | www.nupoliticalreview.com Last month at Northeastern University, the adjunct union reached a tentative agreement with the university administration to avert a planned walkout after more than a year of unsuccessful negotiations. Those familiar with the adjunct campaign know that adjunct professors are contingent workers who comprise more than half of the teaching staff at Northeastern and are paid a couple thousand dollars for each class that they teach.[1] From a budgetary standpoint, contingent workers are economical because they are easily replaced and therefore can be paid less. Still, at a school like Northeastern University with an operating budget of more than$2.2 billion, it is hard to argue that more than half of all professors need to earn poverty wages for the school to remain profitable.[2]

In today's neoliberal landscape -- a term which refers to the coordinated effort by capital and financial interests after the 1980s to privatize public institutions and deregulate markets -- Northeastern is not unusual in its treatment of adjunct professors. The neoliberal university model of high tuitions, bloated administrative departments, and upscale student facilities -- along with assaults on the job security and pay of professors -- is the new norm. It is the image of a thoroughly financialized economy that has transformed the relationship between universities and the state.

From the 19th century through the 1970s, the relationship between universities and the state remained constant. There was an informal arrangement of mutual independence: Academics operated autonomously with state funding on the understanding that they were willing to pursue research in which the state had an interest, such as medicine or space exploration.[3] Underlying this arrangement was the assumption that as a social good, education should drive public research and development.

The story of how universities became neoliberalized begins with the economic crisis of the 1970s and the subsequent free-market discourse that invoked capitalism's insatiable need for economic growth in order to equate the interests of working people with the interests of financiers.

In the three decades after World War II, the U.S. established economic hegemony over the global capitalist world. The Fordist compromise between strong manufacturers and a strong, suburbanizing working class yielded unprecedented wage growth.[4] However, the Fordist model could not last forever. As a general rule, whenever compound economic growth falls below three percent, people begin to get scared . In order to sustain three percent compound growth, there must be no barriers to the continuous expansion and reinvestment of capital.

The suburbanization of postwar America did sustain high demand for American-made automobiles and home products, but reinvestment in manufacturing eventually became difficult for capital because a widely-unionized and militant working class created a labor shortage (i.e. near-full employment) which drove up wages and hurt profitability.[5][6] To the extent that productivity could be improved by technological innovations, organized labor insisted on "productivity agreements" that ensured that machines would not be used to undermine wages or benefits. To make matters worse for U.S. manufacturers, monopolies like the Big Three auto companies were broken by foreign imports from a newly rebuilt Europe and Japan.[7]

In The Grundrisse , Karl Marx remarked that "every limit [to capital accumulation] appears as a barrier to be overcome."[8] For Marx, sustained capital accumulation requires an "industrial reserve army" to keep the cost of labor (i.e. wages) from impeding profitability. To restore profits, American capital had to discipline labor by drawing from the global working population. The Immigration and Nationality Act of 1965 addressed U.S. labor scarcity by abolishing immigration quotas based on nationality so that cheap labor would flood the market and drive down wages.[9] However, it proved more effective for manufacturing capital to simply relocate to countries with cheaper labor, and throughout the 1970s and 1980s capital did just that -- first to South Korea and Thailand, and then to China as wages in those countries became too high.[10]

"Globalization" entailed removing barriers to international capital relocation such as tariffs and quotas in order to construct a global market where liquid money capital could flow internationally to wherever it yielded the most profits. Of course, wage suppression eventually lowers consumer demand. The neoliberal solution was for financial institutions to sustain middle-class purchasing power through credit. In The Enigma of Capital , David Harvey writes that "the demand problem was temporarily bridged with respect to housing by debt-financing the developers as well as the buyers. The financial institutions collectively controlled both the supply of, and demand for, housing!"[11]

The point of this history though, is that the financialization of the American economy, through which financial markets came to dominate other forms of industrial and agricultural capital, served as the backdrop for the transformation of higher education into what it is today. Neoliberal ideology reframed the social value of higher education as a tool for building the next workforce to serve the new "information economy" -- a term that emerged in the midst of globalization to describe the role of U.S. suburban professionals in the global economy. Simultaneously, finance capital repurposed universities as points of capital accumulation and investment.

The discourse around the information economy sought to rationalize the offshoring of manufacturing from the U.S. The idea was that due to globalization, America has reached a stage of development where its participation in the global economy is as a white-collar work force, specializing in technology and the spread of information.[12] In this telling, there is nothing to critique about the deindustrialization of the American economy because it was inevitable. It was then simple to realign the social goals of universities with the economic goals of Wall Street because the state repression of radical civil rights movements on the Left and the emergent free-market discourse of the Right formed a widespread perception of the state as inherently problematic . State research and development at universities was easily dismissed as inefficient, which cleared space for a neoliberal redefinition of higher education.

Neoliberalism has transformed education from a social good into a production process where the final product is a reserve army of workers for the information economy. What David Harvey calls the "state-finance nexus" pushes universities to play the part by withholding state funds until they expand their enrollment and increase the number of college graduates entering the workforce.[13] In 2012, the Obama Administration identified increasing the number of undergraduate STEM degrees by one million over the next decade as a 'Cross-Agency Priority Goal' on the recommendation of the President's Council of Advisors on Science and Technology (PCAST).

At the same time that neoliberalism transforms education into a production process for high-tech workers, it transforms the university itself into a site for surplus capital absorption through the construction of new labs, facilities, and houses to draw wealthy students and faculty capable of attracting federal grants. In December 2015, Northeastern filed a letter of intent with the Boston Redevelopment Authority to propose building a residence hall for approximately 800 students. The Boston Globe reported that the project is currently under review by American Campus Communities, the largest developer of private student housing in the U.S. To an economizing university administrator, private developers are very appealing because they assume the debt generated by construction projects. The circular process whereby a large university endowment comprised of financial assets is used to contract a debt-financed independent developer reveals how neoliberalism integrates universities into the circulatory system of capital as circuits of accumulation and investment.[14]

The present relationship between the university and the state flows from the dynamics of financialization. As financialization transforms the role of the United States in the global economy, it appropriates higher education to suit the needs of finance capital. Compared to the ever-expanding administrative apparatus responsible for managing contracts and investments, programs outside of STEM and business fields are considered superfluous. Humanities programs are often downsized and tenure tracks closed to push professors into permanent part-time employment arrangements.[15] Meanwhile, schools like Northeastern and MIT are surrounded by high-tech and business firms that rely on students and research facilities for cheap labor and productive capital.

The position of financial and credit institutions as the financiers of America's productive infrastructure has far-reaching consequences for social institutions like universities with the potential to absorb surplus capital in the form of credit or produce the 21st-century 'information' workforce. Students, and faculty at universities like Northeastern will struggle against market pressures on universities to attract outside investors while downsizing education for as long as the U.S. economy is dominated by finance.

#### [Feb 12, 2019] The neoliberal university is making us sick Who's to blame by Jodie-Lee Trembath

###### Feb 12, 2019 | thefamiliarstrange.com

June 14, 2018

Trigger warning: This post contains the discussion of depression and other mental health issues, and suicide. If you or anyone you know needs help or support for a mental health concern, please don't suffer in silence. Many countries have confidential phone helplines (in Australia you can call Lifeline on 13 11 14, for example); this organisation provides worldwide support, while this website compiles a number of helpline sites from around the world.

I am writing today from a place of anger; from a rage that sits, simmering on the surface of a deep well of sadness. I didn't know Dr. Malcolm Anderson, the senior accountancy lecturer from Cardiff University whose death, after falling from the roof of his university building, was last week ruled a suicide . I obviously have no way to know the complexity of his feelings or what sequence of events led up to his decision to end his own life. However, according to the results of an inquest, we can know what Dr. Anderson wanted his university to understand about his death – that it was, at least in part, because of the pressures of his academic work.

The media reports that Dr. Anderson had recently been appointed to Deputy Head of his department, significantly increasing his administrative load. Nonetheless, he was still teaching 418 students and needed to mark their work within a 20-day turnaround. To meet that deadline, he would have needed to work approximately 9 hours a day without food or toilet breaks, for 20 days straight, and not do ANY other kind of work during that time (such as the admin that comes with being a Deputy Head). Practically impossible, given he was also a human being, with a home life, and physical needs like food, in addition to work responsibilities.

His wife, Diane, has been quoted saying that Dr. Anderson worked very long hours and often took marking to family events. She has said that although he was a passionate educator who won teaching awards every year, he had been showing signs of stress and had spoken to his managers about his difficulty meeting deadlines. A colleague told the inquest that he was given the same response each time he asked for help, and staffing cuts had continued.

A Marked Problem

... ... ...

And look, I get it. To someone outside the academy, I'm sure the perception remains that academics sit in leather armchairs, gazing out the gilded windows of our ivory towers, thinking all day.

That has not been my experience, nor that of anyone I know.

My colleagues and peers have, however , experienced levels of anxiety and depression that are six times higher than experienced in the general population (Evans et al. 2018). They report higher levels of workaholism , the kind that has a negative and unwanted effect on relationships with loved ones (Torp et al. 2018). The picture is often even bleaker for women , people of colour , and other non-White, non-middle-class, non-males. So whether you think academics are 'delicate woeful souls' or not, it's difficult to deny that there is a real problem to be tackled here.

Obviously, marking load is only one issue amongst many faced in universities the world over. But it's not bad as an illustration, partly because it's quantifiable . It's somewhat ironic that the neoliberal metrics that we rail against, the audit culture that causes these kinds of examples to happen, could also help us describe to others why they are a problem for us. So quantifiability brings us to neoliberalism. How did neoliberalism become so pervasive that it's almost impossible to imagine how the world could look different?

Neoliberalism, then and now

These last two weeks I've been working out of the Stockholm Centre for Organisational Research in Sweden, which, by coincidence, is where Professor Cris Shore , anthropologist of policy and the guest on our next podcast episode is currently based. I was chatting to him the other day about the interview we recorded last December, which centres around many of the ideas I'm discussing in this blog post. I had to admit, I hadn't realised until we did that interview how angry many people still feel towards the Thatcher government for introducing neoliberal ideologies and practices into the public sector. Despite doing a Ph.D. about modern university life, it hadn't fully registered for me that events of the past , specifically the histories of politics and economics in 'the West', were such active players in the theatre of higher education's present .

To understand today's neoliberal universities, let's explore a little history in the UK and the US, two of the biggest influencers in the global higher education sector today. In 1979, Margaret Thatcher rose to power on a platform of reviving the stagnant British economy by introducing market-style competition into the public sector. This way, she claimed, she was ensuring, that "the state's power [was] reduced and the power of the people, enhanced" (Edwards, 2017) . For universities, this meant increased "accountability" and quality assurance measures that would drag universities out of their complacency .

Meanwhile, in the US, Ronald Reagan was also arriving at neoliberalism via a different path. Americans historically don't trust central government (Roberts, 2007) , so in 1981, Reagan introduced tax cuts (especially for the rich) for the first time in American history, therefore "protecting" the American people from the rapacious spending habits of the state (Prasad, 2012) . In American universities, this manifested over the next 30 years in reduced public spending on higher education, transferring the costs for tuition to student-consumers, and encouraging partnerships with industry and endorsements from philanthropists (often with agendas) to cover research costs (Shumway, 2017) .

Then in the 90s, there was a moral panic about the public sector caused by scandals such as " the collapse of Barings Bank in 1995 , the failures of the medical profession revealed by investigations into the serial murders by Dr Harold Shipman , and the numerous cases of child abuse that have plagued the Catholic Church " (Shore, 2008) . Frankly, it seems pretty understandable that people were looking for greater transparency, a bit of accountability, and a whole lot less of, "leave it to the professionals, they seem like alright blokes, don't they?" from their public sector.

However, an ideology that had originally looked so promising to the public began, over time, to create a new set of problems. As Cris Shore points out in his seminal 2008 article, ' Audit culture and Illiberal governance: Universities and the politics of accountability ':

The official rationale for [neoliberal ideologies and actions] appears benign and incontestable: to improve efficiency and transparency and to make these institutions more accountable to the taxpayer and public (and no reasonable person could seriously challenge such commonsensical and progressive objectives). The problem, however, is that audit confuses 'accountability' with 'accountancy' so that 'being answerable to the public' is recast in terms of measures of productivity, 'economic efficiency' and delivering 'value for money' (VFM).

The trouble with neoliberalism and its offshoot, New Public Management , is that much like the Newspeak of Orwell's 1984 , the words that were used to sell it – quality, accountability, transparency etc. – in practice, mean the opposite of what they appear to mean. For example, as Chris Lorenz (2012) points out in an article that convincingly compares New Public Management in universities to the outcomes of a Communist regime , there has been no evidence, statistical or otherwise, that increasing 'quality control measures' in universities has actually improved quality in universities by any objective criteria – and often just the opposite.

What has "improved" in universities because of neoliberal practices is efficiency, often through measures like restructures and reviews. Again, taking steps to save money and time sounds like a positive. However, the problem with 'efficiency' is that, unlike its counterpart 'effectiveness' (the ability to bring about a specific effect), 'efficiency' has no end point – it is a goal unto itself. As Lorenz phrases it, "efficient, therefore, is never efficient enough," (2012, p. 607).

Bringing this back, then, to issues of mental health and increasing workloads on campus. Liz Morrish of Academic Irregularities pointed out last week that when tragedies such as the death of Malcolm Anderson occur in universities, the most common response is for said university to announce a review. As anticipated, two days after the results of Dr. Anderson's inquest were first reported in the media, Cardiff University announced that they would be reviewing the 'support, information, advice and specialist counselling' available to all staff, but also urged any academic "who has any concerns regarding workload, to raise them with their line manager, in the first instance, so all available advice and support can be offered."

This platitude has been taken by many online as exactly that – a platitude. Several commenters on Twitter have pointed out that providing more mental health support doesn't actually reduce workload, while others have noted that there has been no discussion by Cardiff U of attempting to fix the underlying cause. I agree with them, and it's part of the reason I'm so angry. Malcolm Anderson could easily be any one of us.

Yet, I have to admit, I'd also hate to be part of the executive team at Cardiff University right now. Can you imagine the anguish of knowing that someone had taken their life, and held you directly responsible? You'd have to feel so helpless, so powerless in the shadow of neoliberal forces that permeate every last aspect of the global higher education sector. I don't know, I haven't been a Vice Chancellor, maybe you wouldn't have to feel that way. But it's easy to imagine how one could.

The path to neoliberal hell is paved with good intentions

So, what's the answer? I wish I knew. What I do know is that anthropological thinking has a lot to offer in the exploration of big immutable mobiles 2 like neoliberalism. As Sherry Ortner asks in her 2016 article " Dark anthropology and its others: Theory since the eighties ", who better to question the power structures inherent in 'dark' topics such as neoliberalisation or colonialism than anthropologists? Yet, she urges an approach that also acknowledges the possibility of goodness in the world, quoting from the opening to Michael Lambek's Ordinary Ethics as rationale:

Ethnographers commonly find that the people they encounter are trying to do what they consider right or good, are being evaluated according to criteria of what is right and good, or are in some debate about what constitutes the human good. Yet anthropological theory tends to overlook all this in favor of analyses that emphasize structure, power, and interest. (Lambeck, 2010, p. 1)

And this is where I have to deviate from the majority of the neoliberal university critiques I've read. In these pieces, it's all too common to read criticisms of academic managers, or administrators, or university 'service providers' as if they are The Reason that neoliberal ideologies get enacted in university contexts. But usually, they're just human beings too, also subject to KPIs and managerial demands and neoliberal ideologies.

Having worked at different times as an educator, a researcher, and a communications manager in various universities for more than 10 years, and now having conducted fieldwork at a university for my PhD, I have had the chance to observe and conduct research on at least nine different university campuses, in at least five countries. Based on those experiences, I am in complete agreement with Lambek: the majority 3 of non-academics that I have encountered, in every type of department, and at every level of universities from Level 1 administrative officers to Presidents and Vice Chancellors, "are trying to do what they consider right or good" (2010, p. 1).

They demonstrate, both through words and their actions, their beliefs that education is valuable, and that students are important as human beings, not just as cash cows. They are often working long hours themselves, trying to keep up with the demands that neoliberal university life is placing on them. I just can't get on board with the idea that they are, universally, the villains of the neoliberal horror story.

It seems much more likely, to me, that neoliberal ideologies continue to get enacted and reinforced by academic managers because these practices have become the norm. Throughout and because of the historical growth pattern neoliberalism has experienced, these ideologies have put down roots, and these roots have become so entangled with other aspects of university life as to be inseparable. For many working-aged people, neoliberalism is the water we were born swimming in. Even presented with its inadequacies, it's difficult to imagine an alternative.

What I can agree with the critics about, however, is that non-academics often don't understand or appreciate – or perhaps remember (if they had worked in that capacity in the past) – the demands of being an academic, just like academics don't tend to understand or appreciate the demands that non-academics within the university are facing.

In their recently published book Death of the Public University (2017), Susan Wright and Cris Shore refer to the idea of 'Faculty Land' – a place synonymous with 'La La Land', where non-academic employees of universities think academics live. This really resonates with what I saw on fieldwork at an international university in Vietnam, but not only from administrators – academics too.

As I've said in a previous post , all the actors in universities are trying to abrogate responsibility sideways or upwards until they can only blame 'the neoliberal agenda', and once they get there, all they can see is a towering, monolithic idea , and it becomes like trying to have a fist fight with a cloud. Most people don't ever get to that point though, because the world feels more controllable if we believe that there is another human to blame .

The thing is though, blaming others almost never works . It doesn't make things better, it just creates a greater divide between groups, encourages isolationism and othering, and decreases the likelihood that either side will ever want to work together to fix the problem.

Dr Anderson's tragic death, and the similarly tragic statistics that tell us that the collective mental health of our academics is in crisis, should be a wake up call to all of us who work or study in universities, in any capacity. Whether it will be remains to be seen.

Again: If you or anyone you know needs help or support for a mental health concern, please don't suffer in silence . Sometimes talking about things with an objective outsider can help.

• If you work in a university with a counselling service, consider seeking them out. Many have emergency sessions set aside each day.
• Many countries have confidential phone helplines (in Australia you can call Lifeline on 13 11 14, for example).
• Befrienders.org provides worldwide support.
• The International Bipolar Foundation has compiled a number of helpline sites from around the world .
• If you (or your department) have the financial means, psychologists who specialise in working with HDR students and academics, such as Dr Shari Walsh of Growth Psychology sometimes offer Skype appointments. (I have had Skype sessions with Shari myself; she's lovely. PS. I don't get anything out of plugging her services, I just think what she offers is valuable.)

Yes, I know, this is a structural problem and we shouldn't have to take care of it as individuals (see Grace Krause's moving poem about this here ). But in the meantime, while we work on that, please seek help if you need it .

#### [Feb 12, 2019] Death of the Public University Uncertain Futures for Higher Education in the Knowledge Economy (Higher Education

##### "... London Metropolitan's near-bankruptcy opened the possibility of a second method of privatization; a 'fire sale' of a university and its prized degree-awarding powers, to one of the many U.S. for profit education providers that had been seeking entry into the market ..."
###### Feb 12, 2019 | www.amazon.com

Higher Education in Critical Perspective: Practices and Policies

Series editors: Susan Wright, Aarhus University; Penny Welch, Wolverhampton University

INTRODUCTION Privatizing the Public University: Key Trends, Countertrends and Alternatives

CRIS SHORE AND SUSAN WRIGHT

Since the 1980s, public universities have undergone a seemingly unending series of reforms designed to make them more responsive both to markets and to government priorities. Initially, the aim behind these reforms was to render universities more economic, efficient and effective. However, by the 1990s, prompted by the Organization for Economic Cooperation and Development (OECD 1998) and other international agencies, many national governments adopted the idea that the future lay in a 'global knowledge economy'. To these ends, they implemented policies to repurpose higher education as the engine for producing the knowledge, skills and graduates to generate the intellectual property and innovative products that would make their countries more globally competitive.

These reforms were premised on neoliberal ideas about turning universities into autonomous and entrepreneurial 'knowledge organizations' by promoting competition, opening them up to private investors, making educational services contribute to economic competitiveness, and enabling individuals to maximize their skills in global labour markets.

These policy narratives position universities as static entities within an all-encompassing market economy, but alternatively, the university can be seen as a dynamic and fluid set of relations within a wider 'ecology' of diverse interests and organizations (Hansen this volume; Wright 2016). The boundaries of the university are constantly being renegotiated as its core values and distinctive purpose rub up against those predatory market forces, or what Slaughter and Leslie (1997) term 'academic capitalism'. Under pressure to produce 'excellence', quality research and innovative teaching, improve world rankings, forge business links and attract elite, fee-paying students, many universities struggle to maintain their traditional mandate to be 'inclusive', foster social cohesion, improve social mobility and challenge received wisdom – let alone improve the poor records on gender, diversity and equality.

This book examines how public universities engage with these dilemmas and the implications for the future of the public university as an ideal and set of institutional practices. The book has arisen from a four-year programme of knowledge exchange between three research groups in Europe and the Asia Pacific, which focused on the future of public universities in contexts of globalization and regionalization. 1 The groups were based in the U.K. and Denmark, chosen as European countries whose public universities have quite different histories and current reform policies, and New Zealand, as a country at the forefront of developing 'entrepreneurial' public universities, and with networks to other university researchers in Australia and Asia. Through a series of six workshops, four conferences and over thirty individual exchange visits, the project developed an extended discussion between the three groups of researchers. This enabled us to generate a new approach and methodology for analysing the challenges facing public universities. As a result, this book asks:

• How are higher education institutions being reconfigured as 'entrepreneurial' and as 'knowledge' organizations, and with what effects?

• In what ways are new management systems and governance regimes transforming the culture of academia?

• How are universities responding to these often contradictory policy agendas?

• How are national and international reforms impacting on the social purposes of the university and its relationship to society?

• What possibilities are there for challenging current trends and developing alternative university futures?

Mapping the Major Trends

Nowhere are the above trends more evident than in the English-speaking universities, particularly in the U.K., Australia and New Zealand. These countries have been a laboratory for testing out a new model of the neoliberal entrepreneurial university. At least seven key features characterize these reforms.

1. State Disinvestment in Universities – or Risk-free Profits for Private Providers?

The first feature is a progressive withdrawal of government support for higher education. In the U.K., for example, the Dearing Report (1997) showed that during the previous twenty years, a period of massive university expansion, state funding per student had declined by 40 percent. While Tony Blair's New Labour government of 1997 proclaimed 'education, education, education' as its key priority, it did so by introducing cost-sharing, in the form of student tuition fees, as a way to reduce the annual deficit in the funding of university teaching.

In 2010, the British Conservative–Liberal government under David Cameron went even further by removing all state funding for teaching except in the STEM subjects (science, technology, engineering and mathematics).

Instead, students were now to pay fees of £9,000 per annum (a three-fold increase) for which state-funded loans were made available. From the government's perspective, the genius of this shifting of state funding from teaching to loans was that private for-profit education providers could now access taxpayers' money – and this transfer of funds was further justified ideologically as providing competition and creating a 'level playing field' between public and private education providers.

Other countries have also decided to withdraw state funding for higher education. For example, in September 2015, Japan's education minister Hakobyan Shimomura wrote to all of the country's eighty-six national universities calling on them to 'take active steps to abolish [social science and humanities] organizations or to convert them to serve areas that better meet society's needs' (Grove 2015b).

These measures echo the wider global trend set by advocates of Milton Friedman and the Chicago School's brand of neoliberal economics. In the 1980s, the 'Chicago boys' carried out their most radical experiments in Chile, removing the state's direct grants to universities, funding teaching only through students' tuition fees, and making government loans available to students so that they could pay those fees (Bekhradnia 2015).

In the United States, the same policies have been adopted. For example, in California between 1984 and 2004, state spending per capita on higher education declined by 12 percent.

Significantly, in the same period per capita spending on prisons increased by 126 percent (Newfield 2008: 266). Between the 1970s and 1990s there was a 400 percent increase in charges in tuition, room and board in U.S. universities and tuition costs have grown at about ten times the rate of family income (ibid.). What these instances highlight is not just the state's retreat from direct

funding of higher education but also a calculated initiative to enable private companies to capture and profit from tax-funded student loans.

2. New Regimes for Promoting Competitiveness

A second major trend that has reshaped higher education has been the creation of funding and assessment regimes designed to increase productivity and competition between universities, both nationally and globally. What began in the 1980s as an exercise to assure the 'quality' of research in British universities had morphed, by the end of the 1990s, into ever-more invasive systems for ranking institutions, disciplines, departments, and even individuals.

The results were used to allocate funds to those institutions that performed best in what has become a fetishistic quest for ever-higher ratings and 'world class' status, or what Hazelkorn (2008: 209) has termed the 'rankings arms-race'.

Where some rankings are focused on research performance (such as the U.K.'s Research Excellence Framework, the Excellence in Research for Australia, and New Zealand's Performance Based Research Framework), others rank whole institutions (the Shanghai Jiao Tong Index, the QS and THE World University Rankings). Significantly, these ranking systems have especially negative impacts on minority groups and women (see Blackmore, Curtis, Grant and Lucas, this volume). This obsession with auditing and measuring performance also includes systems for evaluating teaching quality, surveying student satisfaction and measuring student engagement. 2

Even though vice chancellors and university managers ridicule ranking methodologies, they have learned to their cost to take them extremely seriously, as the financial viability of a university increasingly hinges on the reputational effects of these measures of performance (Sauder and Espeland 2009; Wright 2012).

3. Rise of Audit Culture: Performance and Output Measures

Third, running alongside the growth of these ranking systems has been the proliferation of performance and output measurements and indicators designed to foster transparency, efficiency and 'value for money'. This is part of a wider phenomenon called 'audit culture' and its growing presence throughout the public and private sectors, including higher education (Shore and Wright 2015; Strathern 2000). Driven by financial imperatives and the rhetoric of 'value for money' – and justified by a political discourse about the virtues of transparency and accountability – these technologies have been particularly instrumental

in promoting the logics of risk management, financialization and managerialism (see Dale, and Lewis and Shore, this volume). In Denmark, time has become a key metric and instrument for the efficient throughput of students and the accountability of institutions, but as Nielsen and Sarauw (this volume) show, these measures affect the very nature of education. Audits do not simply or passively measure performance; they actively reshape the institutions into which they are introduced (Power 1997; Shore and Wright 2015). When a measurement becomes a target, institutional environments are restructured so that they focus their resources and activities primarily on what 'counts' to funders and governors rather than on their wider professional ethics and societal goals (see Kohn and Shore, this volume).

The fourth key development during this period has been the extraordinary growth in the number and status of university managers and administrators. For the first time in history, as figures from the U.K.'s Higher Education Statistics Agency (HESA) show, support staff now outnumber academic staff at 71 percent of higher education institutions (Jump 2015). In Denmark, there has been an equally large increase in the number of administrators and the increased percentage of annual expenditure on administrators in just five years alone was equivalent to 746 new lectureships (Wright and Boden 2010). The figures from the U.S. are even more dramatic. Federal figures for the period 1987 to 2011/2012 show that the number of college and university administrators and professional employees has more than doubled in the last twenty-five years; an increase of 517,636 people – or an average of eight-seven new administrators every working day (Marcus 2014). The recruitment of administrators has far outpaced the growth in the number of faculty – or even students. Meanwhile, universities claim to be struggling with budget crises that force them to reduce permanent academic posts, and the temporarily employed teaching assistants – the 'precariat' – have undergone a massive increase in numbers.

This astonishing increase in management and administration is partly due to the pressures universities now face to produce data and statistics for harvesting by the ranking industries. Universities themselves often attribute the growth of their administrative and technical units to the enormous rise in government regulations. As the President of the American Association of University Administrators recently explained, 'there are "thousands" of regulations governing the distribution of

financial aid alone' and every university that is accredited probably has at least one person dedicated to that. However, the proliferation of administrators and managers has also been fuelled by the universities themselves, as they have taken on new functions and pursued new income streams. This is particularly evident in the U.S.:

Since 1987, universities have also started or expanded departments devoted to marketing, diversity, disability, sustainability, security, environmental health, recruiting, technology and fundraising, and added new majors and graduate and athletics programs, satellite campuses, and conference centers (Marcus 2014).

These trends are captured with exceptional clarity in Benjamin Ginsberg's book, The Fall of the Faculty (2011a). Ginsberg's thesis is that the new professional managers 'make administration their life's work', to the detriment of the universities' core functions. They have little or no faculty experience and promoting teaching and research is less important than expanding their own administrative domains: 'under their supervision, the means have become the end' (ibid.: 2). Every year, writes Ginsberg: hosts of administrators and staffers are added to college and university payrolls, even as schools claim to be battling budget crises that are forcing them to reduce the size of their full-time faculties. As a result, universities are filled with armies of functionaries -- vice presidents, associate vice presidents, assistant vice presidents, provosts, associate provosts, vice provosts, assistant provosts, deans, deanlets, deanlings, each commanding staffers and assistants -- who, more and more, direct the operations of every school. Backed by their administrative legions, university presidents and other senior administrators have been able, at most schools, to dispense with faculty involvement in campus management and, thereby to reduce the faculty's influence in university affairs (Ginsberg 2011a: 2).

One of the weaknesses in these statistics is that they fail to distinguish between administrative staff who support the teaching and research and those who do not. Support staff are crucial to enabling academics to carry out effective research, teaching and scholarship – the traditional mission of the university. Likewise, universities need managers who support academics in fulfilling these key functions of the university, but the statistics are rarely sufficiently refined to make these distinctions. Interestingly, many universities have dropped the term 'support staff' in favour of terms like 'senior administrators' and

'professional staff'. This move reflects the way that many university managers now see their role – which is no longer to provide support for academics but, rather, to manage them as 'human capital' and a resource. From the perspective of many university managers and human resources (HR) departments, academics are increasingly portrayed as a reluctant, unruly and undisciplined workforce that needs to be incentivized or cajoled to meet management's targeted outputs and performance indicators.

5. Institutional Capture: the Power of the 'Administeriat'

The budgetary reallocation from academic to administrative salaries is linked to a fifth major trend: the rise of the 'administeriat' as a new governing class and the corresponding shift in power relations within the university. Whereas in the past the main cleavage in universities was between the arts and the sciences, or what C.P. Snow (1956) famously termed 'the two cultures', today the main division is between academics and managers.

Collini (2013) attributes this shift in power to the way all university activities are now reduced to a common managerial metric. As he puts it, the 'terms that suit [managers'] activities are the terms that have triumphed'. Scholars now spend increasing amounts of their working day accounting for their activities in the 'misleading' and 'alienating' language and categories of managers. This 'squeezing out' of the true use-value of scholarly labour accounts for the 'pervasive sense of malaise, stress and disenchantment within British universities' (Collini 2013).

Professor of Critical Management Studies Rebecca Boden compares the way that university managers expand their increasingly onerous regulations to the way that 'cuckoos lay their eggs in the nests of other birds, and how the young cuckoos then evict the nest-builders' offspring' (cited in Havergal 2015). This cuckoo-in-the-nest metaphor might seem somewhat overblown, but it highlights the important fact that managers and administrators have usurped power in what were formerly more collegial, self-governing institutions . Yet many of these managers would not succeed as professionals in industry. Levin and Greenwood (2016) argue that, if universities were indeed business corporations, they would soon collapse, as their work organization currently violates nearly every one of the practices that characterize successful and dynamic high-tech areas and service industries. It is a short step from here to managers' appropriation of the identity of the university, with managers increasingly claiming not only to speak for the

university but to be the university (Ørberg 2007; Readings 1996; Shore and Taitz 2010). Today, rather than being treated as core members of a professional community, academics are constantly being told by managers and senior administrators what 'the university' expects of them, as if they were somehow peripheral or subordinate to 'the university'.

6. New Income Streams and the Rise of the 'Entrepreneurial University'

Faced with diminishing state funding and year-on-year cuts to national budgets for higher education, universities have been compelled to seek alternative income streams. This has entailed fostering more lucrative and entrepreneurial partnerships with industry; conducting commissioned research for businesses and government; partnering up with venture capitalists; commercializing the university's intellectual property through patents and licences; developing campus spin-out (and spin-in) companies; engaging proactively in city development programmes; and maximizing university assets including real estate, halls of residence, conference facilities and industrial parks. Equally important has been the raising of student tuition fees and the relentless drive to recruit more high-fee-paying international students . This project has given rise to the moniker 'export education', a sector of the economy and foreign-currency earner of growing importance to many countries. For example, in Canada, expenditures of international education students (tuition, accommodation, living costs and so on) infused $6.5 billion into the Canadian economy, surpassing exports of coniferous lumber (CAN$5.1 billion) and coal (CAN$6.1 billion) and gave employment to 83,00 Canadians (Roslyn Kunin and Associates, Inc 2009). Similarly, 'educational services' has become one of Australia's leading export industries such that, by 2008, it had become Australia's third-largest generator of export earnings with over AU$12.6 billion (Olds 2008). Along with Australia and Canada, the U.S.A., U.K. and New Zealand dominate the trade in international students (OECD 2011; chart 3.3) and the global demand for international student places is estimated to rise to 5.8 million by 2020 (Bohm et al. 2004).

The relentless pursuit of these new income streams has had a transformative effect on universities. Almost two decades ago Marginson and Considine (2000) coined the term the 'enterprise university' to describe the model in which: the economic and academic dimensions are both subordinated to something else. Money is a key objective, but it is also the means to a more fundamental mission: to advance the prestige and competitiveness of the university as an end in itself (ibid. 2000: 5).

However, it would be misleading to suggest that all these changes are simply a consequence of the pressures that governments have placed on universities to refashion themselves as pseudo-business corporations. Some of the more entrepreneurially hawkish university rectors, vice chancellors and presidents have enthusiastically welcomed these changes. Many have benefitted from the enormous executive salaries that have become the norm for university 'CEOs', and they undoubtedly enjoy their vaulted status and the opportunities this provides to mingle with world leaders at prestigious summits and receptions, airport VIP lounges and gala fundraising events. For example, the Times Higher Education annual review of vice chancellors' pay shows that average salary and benefits for university vice chancellors in the U.K. rose by between £8,397 and £240,794 in 2013–2014. This constituted a 3.6 percent rise, whereas in the same period, other university staff received an increase of only 1 per cent (Grove 2015a).

A study by economists Bachan and Reilly (2015), from Brighton Business School, found that in the past two decades, vice chancellors have seen their salaries soar by an eye-watering 59 percent (Henry 2015), but concluded that these increases could not be justified in terms of their university's performance criteria, such as widening participation or bringing in income such as grants for teaching and research and capital funding. Rather, the study found that the presence of other high-paid administrative staff was pushing up vice chancellors' pay. Both the U.K.'s House of Commons' Public Accounts Committee and the former Minister for Business and Employment, Vince Cable, have condemned this 'substantial upward drift' of salaries among vice chancellors. However, this annual ritual of chastisement has little perceivable impact.

7. Higher Education as Private Investment Versus Public Good

The seventh major trend is recasting university education as a private and positional investment rather than a public good. The idea that gained prominence in the post-war era was that higher education was a public investment that benefits the economy and society as well as contributing to personal growth and social mobility (Morgan this volume). In the 1990s, this idea – and the Keynesian model that sustained it – was displaced by the Chicago School's economic doctrine and the notion that individuals, not the state, should take responsibility

for repeatedly investing in their education and skills in order to sustain and improve their position in a fast-changing competitive and global labour market. This is what the OECD termed 'new human capital theory' (Henry et al. 2001), an idea that came to dominate government thinking about growth and investment. However, several recent studies challenge the premises upon which this model is based (Ashton, Lauder and Brown 2011; Wright and Ørberg this volume).

Arising from this new way of conceptualizing higher education as a private individual good and the reduction of government funding for the sector, has been the replacement of student grants with loans. This has been coupled with a massive hike in student fees – or what is euphemistically called 'cost-sharing' by ministers and World Bank experts. There are several bizarre paradoxes in this way of financing higher education. First, as McGettigan (2013) shows, government funding of student loans to pay fees is likely to cost the taxpayer more than the previous system of funding universities directly for their teaching. Second, as Vernon (2010) points out, most students and their families can only afford to pay for the costs of their higher education through the kinds of debt-financing that governments across the world now condemn as reckless and inappropriate for themselves. Third, whereas the scale of national debt in many countries has become so severe that it has required emergency austerity measures to combat, the level of household debt is even more perilously high, peaking to 110 percent of GDP in 2009 in the U.K. (Jones 2013).

This was before the government transferred even more of the costs of higher education to families and tripled university fees. These policies are justified on the grounds that degree-holders gain a lifetime premium in earning: hence the catchphrase 'learn to earn'. In New Zealand, however, which has the seventh-highest university fees among developed countries, the OECD survey found that the value of a university degree in terms of earning power is the lowest in the world. The net value of a New Zealand tertiary education for a man is just $63,000 over his working life (compared with$395,000 in the U.S.). For a woman, it is even lower: 38,000 over her working life (Edmunds 2012). As Brown and Hesketh (2004) also show for the U.S., graduates' imagined future incomes are largely illusory. Yet students and parents are encouraged to take out what is effectively a 'subprime loan', in the gamble that it will eventually pay off by enhancing their future job prospects and earning power: it is a 'hedge against their future security' (Vernon 2008). In other words, higher education is now being modelled on the same types of financial speculation that produced the 2010 global financial crisis. The Death of the Public University? Do the seven trends outlined above spell the end of the public university? From the earliest beginnings of these developments, there has been an extensive literature foretelling the demise of the university. According to historians Sheldon Rothblatt and Bjorn Wittrock (1993: 1), the university is the second-longest unbroken institution in Western civilization, after the Catholic Church. Today, however, the university – or what John Henry Newman termed the 'idea of a university' – does indeed look broken. Or is this an unduly pessimistic conclusion? Jean-Francoise Lyotard set the agenda with his provocative book The Postmodern Condition: A Report on Knowledge . Noting the collapse of the university's traditional authority in producing legitimate knowledge, he wrote: The question (overt or implied) now asked by the professionalist student, the State, or institutions of higher education is no long 'Is it true?' but 'What use is it?' In the context of the mercantilization of knowledge, more often than not this question is equivalent to: 'Is it saleable?' And in the context of power-growth: 'Is it efficient?' (Lyotard 1994: 51). Following this line of reasoning, Bill Readings' book The University in Ruins (1996), noted both the decline of the university as the cultural arm of nation building and the administrators' eclipse of the scholar-teacher as the central figure in the university story. As he gloomily argued, the grand narrative of the university 'centred on the production of a liberal reasoning subject is no longer readily available to us (1996: 9). If, for Readings, the university was in a state of 'ruin', for David Mills, writing in 2003, it is locked in a state of permanent 'scaffolding'; an ongoing and ambiguous project of both maintenance and repair, construction and demolition. Thus 'crumbling bastions of social and intellectual elitism' are combined 'with shiny new campuses espousing lifelong access to 24/7 education for all' (Mills 2003). These contradictory trends have both positive and negative dimensions for universities and the project of higher education. On the one hand, access to universities has been massively increased and technological innovations, including Mass Open Online Courses (MOOCs), have allowed more distance learning. But on the other hand, universities and their staff have been subjected to an almost continuous process of reforms and restructurings designed both to recast higher education institutions as transnational business corporations and to open up the sector to more private-sector involvement. The complaint often voiced by academics is that universities – like hospitals, libraries and other local community services – are undergoing a process of 'death by a thousand cuts'. But chronic underfunding of public institutions also reflects a wider and arguably more purposeful political agenda that aims to fundamentally transform the public sector. One of the greatest threats to the university today lies in the 'unbundling' of its various research, teaching and degree-awarding functions into separate, profit-making activities that can then be outsourced and privatized. This agenda is articulated clearly in the recent report entitled 'An Avalanche is Coming: Higher Education and the Revolution Ahead' (Barber et al. 2013), published by the London-based think tank, the Institute for Public Policy Research. Its principal authors are Sir Michael Barber, Chief Education Advisor for Pearson PLC (a British-owned multinational education provider and publisher) and two of Pearson's executive directors. The report's central argument, captured in its 'avalanche' metaphor, is that the current system of higher education is untenable and will be swept away unless bold and radical steps are taken: The next 50 years could see a golden age for higher education, but only if all the players in the system, from students to governments, seize the initiative and act ambitiously. If not, an avalanche of change will sweep the system away. Deep, radical and urgent transformation is required in higher education. The biggest risk is that as a result of complacency, caution or anxiety the pace of change is too slow and the nature of change is too incremental. The models of higher education that marched triumphantly across the globe in the second half of the 20th century are broken (Barber, Donnelly and Rizvi 2013: 5). A series of forces that lie 'under the surface' threatens to transform the landscape of higher education. These include: a changing world economy in which the centre of gravity is shifting towards the Asia-Pacific region; a global economy still struggling to recover from the trauma of the global financial crash of 2007–2008; and the escalating costs of higher education, which are vastly outstripping inflation and household income. These are coupled with the declining value of a degree and a technological shift that makes information ubiquitous. Universities no longer hold a monopoly over knowledge production and distribution and face growing competition from the emergence of new universities and from 'entirely new models of university' that Pearson itself has been spearheading to exploit the new environment of globalization and the digital revolution (ibid. 2013: 9–21). The Barber report is part of a growing literature which seeks to 'remake the university' as an altogether different kind of institution (see Bokor 2012). Epochal and prophetic in tone and often claiming to be diagnostic and neutral, this literature proposes solutions that are anything but impartial or disinterested. Pearson, for example, makes no secret of its ambition to acquire a larger share of the higher education market and the rents that can be captured from its various activities. In 2015, Pearson sold off its major publishing interests to restructure the company around for-profit educational provision both in England and worldwide. Pearson also has a primary listing on the London Stock Exchange and a secondary listing on the New York Stock Exchange. Writing in the preface to the Barber reports, former president of Harvard University Lawrence Summers underscores its central ambition when he writes that in this new 'phase of competitive intensity', all of the university's core functions can be 'unbundled and increasingly supplied, perhaps better, by providers that are not universities at all' (Barber 2013: 1). As John Morgan (this volume) shows, higher education has long been – and continues to be – a site of ideological struggle between competing interests and their vision of society. Towards the Privatization of English Universities In England, these processes have been taken to an extreme. Events since the Conservative–Liberal coalition took office in 2010 suggest a tipping point may have been reached in the transformation of the public university. Research by the legal firm Eversheds (2009) revealed that no legislation was needed for public universities to be transferred to the private for-profit sector, either by a management buyout or by outside interests buying-in (Wright 2015). London Metropolitan University was an early contender. It advertised a tender worth £74 million over five years for a partner who would create a for-profit 'special services vehicle' to deliver all the university's functions and services – everything except academic teaching and the Vice Chancellor's powers. Such 'special services vehicles' are a way for private investors to buy into the university's activities. This plan was only stymied because civil servants found major administrative failings, and the resulting fines and repayments pushed the university close to bankruptcy. But this 'special services vehicle' model has been implemented by other universities, including Falmouth and Exeter, where a private company runs not only catering, estate maintenance and services on the two campuses, but also its entire academic support services (libraries, IT, academic skills and disability support services) (University and College Union 2013). London Metropolitan's near-bankruptcy opened the possibility of a second method of privatization; a 'fire sale' of a university and its prized degree-awarding powers, to one of the many U.S. for profit education providers that had been seeking entry into the market (Wright 2015). Privatization was only avoided thanks to the successful actions of its new Vice Chancellor. However, one university with a charter and degree-awarding powers has been transferred to the for-profit sector. In 2006, the Department of Business, Innovation and Science rushed through approval to give the College of Law in London degree-awarding powers and university status. This was just in time for its sale to finance company Montagu Private Equity. To maintain that university's charitable (tax-favourable) status and provide bursaries for students, the institution divided itself into a for-profit company with all the education and training activities, and an educational foundation. Montagu Private Equity made a leveraged buyout of the university: £177 million of the £200 million purchase price was borrowed and then put on the university's balance sheet, making it responsible for paying the debt and interest from its cash flow. A few years later, Montagu announced it was selling the university's buildings, in what was a clear case of asset stripping. The legal firm Eversheds recommended that other public universities follow this model and either sell stakes in their institution or be sold outright to financiers. As the University of Law example shows, such investors' prime interest is the short-term extraction of profit and liquidization of assets, rather the long-term future of higher education. Indeed, in June 2015, Montagu sold the University of Law to Aaron Etingen, founder and chief executive officer of Global University Systems (GUS), which owns a network of for-profit colleges worldwide (Morgan 2015). #### [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. #### [Feb 11, 2019] Universities in the neoliberal age by Rafael Winkler ##### Notable quotes: ##### "... Higher education was being made to conform to the norms of efficiency, value for money, customer service, audit and performance targets. One of the consequences of this was the substitution of the authority of the academic, which is based on his or her professional knowledge of the discipline, for the authority of the line manager. ..." ##### "... I don't think that there has been a more sinister assault on academic freedom than this colonisation of higher education by neoliberalism. It justifies itself by calling for "transparency" and "accountability" to the taxpayer and the public. But it operates with a perverted sense of these words (since what it really means is "discipline and surveillance" and "value for money"). ..." ##### "... Let me explain. One of the central aspects of neoliberalism is the disappearance of the distinction between the worker and the capitalist. In the neoliberal setting, the worker is not a partner of exchange with the capitalist. She does not sell her labour-power for a wage. ..." ##### "... The labourer's ability to work, her skill, is an income stream. It is an investment on which she receives a return in the form of wages. The worker is capital for herself. She is a source of future earnings. In the neoliberal market, as Michel Foucault remarks, everyone is a capitalist. ..." ##### "... Neoliberalism has converted education from a public good to a personal investment in the future, a future conceived in terms of earning capacity. ..." ###### Sep 14, 2018 | mg.co.za Many of the students I have taught in Britain and South Africa see higher education as a place where they "invest" in themselves in the financial sense of the word. "Going to university," one student said, was a way of "increasing" his "value" or employability in the labour market. This perception of the university has not arisen by chance. Capitalism entered a new phase with the Thatcher and Reagan governments in Britain and the United States during the 1980s. The managerial practices used to run businesses were applied to the public sector, in particular to education and healthcare. This reform of the public sector (called "new public management") introduced a new way of thinking about the university. Higher education was being made to conform to the norms of efficiency, value for money, customer service, audit and performance targets. One of the consequences of this was the substitution of the authority of the academic, which is based on his or her professional knowledge of the discipline, for the authority of the line manager. Since then, everything has come to depend on audits and metric standards of so-called quality assessment (student satisfaction, pass rates, league tables, et cetera). Academics have little, if any, say on whether departments should continue to exist, what degrees and courses should be on offer and even what kind of assessment methods should be used. I don't think that there has been a more sinister assault on academic freedom than this colonisation of higher education by neoliberalism. It justifies itself by calling for "transparency" and "accountability" to the taxpayer and the public. But it operates with a perverted sense of these words (since what it really means is "discipline and surveillance" and "value for money"). Its effect, if not its aim, has been to commodify higher education and produce a new kind of social identity. This is the identity of the self as entrepreneur. Let me explain. One of the central aspects of neoliberalism is the disappearance of the distinction between the worker and the capitalist. In the neoliberal setting, the worker is not a partner of exchange with the capitalist. She does not sell her labour-power for a wage. The labourer's ability to work, her skill, is an income stream. It is an investment on which she receives a return in the form of wages. The worker is capital for herself. She is a source of future earnings. In the neoliberal market, as Michel Foucault remarks, everyone is a capitalist. Neoliberalism has converted education from a public good to a personal investment in the future, a future conceived in terms of earning capacity. How did we get to this situation? The modern university came into existence at the start of the 19th century as an extension of the state. The aim of the state during the colonial and imperial age was to constitute the identity of the national subject. As a public institution, the university was designed to teach students to see their life in a specific way. They would learn to see that it is only as members of a national community and culture that their individual life has a meaning and worth. This was the aim of the educational programme that German philosophers such as Wilhelm von Humboldt and Johann Gottlieb Fichte envisaged for the University of Berlin. For them, science was in the service of the moral and intellectual education of the nation. Established in 1810, the University of Berlin was the first modern university. It was founded on the principles of academic freedom, the unity of research and teaching, and the primacy of research over vocational training. It functioned as the prototype for universities in both the United States and Europe during the second half of the 19th century. Once transnational corporations started to control more capital than nation-states in the 1980s, the university ceased to be one of its principal organs. It lost its ideological mission and entered the market as a corporation. It started to encourage students to think of themselves as customers rather than as members of a nation. This history shows that the university is today the site of two competing social identities. • On the one hand, because of globalisation, the student who enters university sees herself as someone who is there to increase her human capital, as an enterprise to invest in. It must be remarked that, for the entrepreneur (taken as a social figure) who invests in herself, differences of class, religion, ethnicity or race are phantasms of a bygone age. The differences in the name of which wars were waged and social movements organised in the past have no more meaning in her eyes than cheap advertising. There is, for her, something improper or inauthentic about them, as Giorgio Agamben says of the new petty bourgeoisie in The Coming Community. Like Britain's former prime minister, David Cameron, she is sceptical of multiculturalism. • On the other hand, the university has not ceased to draw on its modern role as a producer, protector and inculcator of national identity and culture. Much of what is going on today in South African universities under the name of decolonisation and Africanisation draws on this heritage and understanding of the modern university, even if tacitly. That is why students will politicise themselves by identifying with an ethnicity or nationality. Nationalism was an emancipatory political project during the anti-colonial struggles of the second half of the 20th century. It was not tribalist or communalist. According to Eric Hobsbawm in Nations and Nationalism since 1780, its aim was to extend the size of the social, cultural and political group. It was not to restrict it or to separate it from others. Nationalism was a political programme divorced from ethnicity. Is this political nationalism a viable way of resisting neoliberalism today? Can it gainsay the primacy of economic rationality and the culture of narcissist consumerism, and restore meaning to the political question concerning the common good? Or has nationalism irreversibly become an ethnic, separatist project? It is not easy to say. So far, we have witnessed one kind of response to the social insecurities generated by the global spread of neoliberalism. This is a return to ethnicity and religion as havens of safety and security. When society fails us owing to job insecurity, and, concomitantly, with regard to housing and healthcare, one tends to fall back on one's ethnicity or religious identity as an ultimate guarantee. Moreover, nationalism as a political programme depends on the idea of the state. It holds that a group defined as a "nation" has the right to form a territorial state and exercise sovereign power over it. But given the decline of the state, there are reasons to think that political nationalism has withdrawn as a real possibility. By the "decline of the state" I do not mean that it no longer exists. The state has never been more present in the private life of individuals. It regulates the relations between men and women. It regulates their birth and death, the rearing of children, the health of individuals and so forth. The state is, today, ubiquitous. What some people mean by the "decline of the state" is that, with the existence of transnational corporations, it is no longer the most important site of the reproduction of capital. The state has become managerial. Its function is to manage obstacles to liberalisation and free trade. Perhaps that is one of the challenges of the 21st century. How is a "nation" possible, a "national community" that is not defined by ethnicity, on the one hand, and, on the other, that forsakes the desire to exercise sovereign power in general and, in particular, over a territorial state? The university is perhaps the place where such a community can begin to be thought. Rafael Winkler is an associate professor in the philosophy department at the University of Johannesburg #### [Feb 05, 2019] Capitalists need their options regulated and their markets ripped from their control by the state. Profits must be subject to use it to a social purpose or heavily taxed. Dividends executive comp and interest payments included ###### Feb 05, 2019 | economistsview.typepad.com Mr. Bill -> Mr. Bill... , January 31, 2019 at 08:22 PM Is anyone else tired of the longest, least productive waste of war in American history ? What have we achieved, where are we going with this ? More war. Mr. Bill -> Mr. Bill... , January 31, 2019 at 08:31 PM We are being fed a fairy tale of war about what men, long dead, did. And the reason they did it. America is being strangled by the burden of belief that now is like then. Mr. Bill -> Mr. Bill... , January 31, 2019 at 08:46 PM By the patrician men and women administrators, posturing as soldiers like the WW2 army, lie for self profit. Why does anyone believe them ? Korea, Vietnam, Iraq, each an economic decision, rather than a security issue. Mr. Bill -> Mr. Bill... , January 31, 2019 at 08:48 PM America is dying on the same sword as Rome, for the same reason. Plp -> JF... , January 31, 2019 at 07:28 AM Capitalists need their options regulated and their markets ripped from their control by the state. Profits must be subject to use it to a social purpose or heavily taxed. Dividends executive comp and interest payments included Julio -> mulp ... , January 31, 2019 at 08:58 AM Well done! Much clearer than your usual. There are several distinct motivations for taxes. We have been far enough from fairness to workers, for so long, that we need to use the tax system to redistribute the accumulated wealth of the plutocrats. So I would say high marginal rates are a priority, which matches both objectives. Wealth tax is needed until we reverse the massive inequality supported by the policies of the last 40 years. Carbon tax and the like are a different thing, use of the tax code to promote a particular policy and reduce damage to the commons. Gerald -> Julio ... , January 31, 2019 at 04:14 PM "...we need to use the tax system to redistribute the accumulated wealth of the plutocrats. So I would say high marginal rates are a priority..." Forgive me, but high marginal rates (which I hugely favor) don't "redistribute the accumulated wealth" of the plutocrats. If such high marginal rates are ever enacted, they'll apply only to the current income of such plutocrats. Julio -> Gerald... , January 31, 2019 at 06:22 PM You merged paragraphs, and elided the next one. The way I see it, high rates are a prerequisite to prevent the reaccumulation of obscene wealth, and its diversion into financial gambling. But yes that would be a very slow way to redistribute what has already accumulated. Gerald -> Julio ... , February 01, 2019 at 04:48 AM Didn't mean to misinterpret what you were saying, sorry. High rates are not only "a prerequisite to prevent the reaccumulation of obscene wealth," they are also a reimposition of fair taxation on current income (if it ever happens, of course). Global Groundhog -> Julio ... , February 02, 2019 at 01:39 PM Wealth tax is needed until we reverse the massive inequality supported by the policies of the last 40 years. Carbon tax and the like are a different thing, use of the tax code to promote a particular policy and reduce damage to the commons. " more wisdom as usual! Although wealth tax will be unlikely, it could be a stopgap; could also be a guideline to other taxes as well. for example, Elizabeth points out that billionaires pay about 3% of their net worth into their annual tax bill whereas workers pay about 7% of their net worth into their annual tax bill. Do you see how that works? it doesn't? this Warren argument gives us a guideline. it shows us where other taxes should be adjusted to even out this percentage of net worth that people are taxed for. Ceu, during the last meltdown 10 years or so ago, We were collecting more tax from the payroll than we were from the income tax. this phenomenon was a heavy burden on those of low net worth. All this needs be resorted. we've got to sort this out. and the carbon tax? may never be; but it indicates to us what needs to be done to make this country more efficient. for example some folks, are spending half a million dollars on the Maybach automobile, about the same amount on a Ferrari or a Alfa Romeo Julia quadrifoglio, but the roads are built for a mere 40 miles an hour, full of potholes. What good is it to own a fast car like that when you can't drive but 40 -- 50 miles an hour? and full of traffic jams. something is wrong with taxation incentives. we need to get a better grid-work of roads that will get people there faster. Meanwhile most of those sports cars just sitting in the garage. we need a comprehensive integrated grid-work of one way streets, roads, highways, and interstates with no traffic lights, no stop signs; merely freeflow ramp-off overpass interchanges. thanks, Julio! thanks again .! JF -> Global Groundhog... , February 04, 2019 at 05:42 AM Wonderful to see the discussion about public finance shifting to use net worth proportions as the focus and metric. Wonderful. Let us see if press/media stories and opinion pieces use this same way of talking about the financing of self-government. Mr. Bill -> anne... , February 03, 2019 at 08:15 PM Jesus Christ said, in so many words, that a man's worth will be judged by his generosity and his avarice. " 24And the disciples were amazed at His words. But Jesus said to them again, "Children, how hard it is to enter the kingdom of God! 25It is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of God." 26They were even more astonished and said to one another, "Who then can be saved?" #### [Jan 31, 2019] Linus Torvalds and others on Linux's systemd by By Steven J. Vaughan-Nichols ##### Notable quotes: ##### "... I think some of the design details are insane (I dislike the binary logs, for example) ..." ##### "... Systemd problems might not have mattered that much, except that GNOME has a similar attitude; they only care for a small subset of the Linux desktop users, and they have historically abandoned some ways of interacting the Desktop in the interest of supporting touchscreen devices and to try to attract less technically sophisticated users. ..." ##### "... If you don't fall in the demographic of what GNOME supports, you're sadly out of luck. (Or you become a second class citizen, being told that you have to rely on GNOME extensions that may break on every single new version of GNOME.) ..." ##### "... As a result, many traditional GNOME users have moved over to Cinnamon, XFCE, KDE, etc. But as systemd starts subsuming new functions, components like network-manager will only work on systemd or other components that are forced to be used due to a network of interlocking dependencies; and it may simply not be possible for these alternate desktops to continue to function, because there is [no] viable alternative to systemd supported by more and more distributions. ..." ###### Sep 19, 2014 | www.zdnet.com So what do Linux's leaders think of all this? I asked them and this is what they told me. Linus Torvalds said: "I don't actually have any particularly strong opinions on systemd itself. I've had issues with some of the core developers that I think are much too cavalier about bugs and compatibility, and I think some of the design details are insane (I dislike the binary logs, for example) , but those are details, not big issues." Theodore "Ted" Ts'o, a leading Linux kernel developer and a Google engineer, sees systemd as potentially being more of a problem. "The bottom line is that they are trying to solve some real problems that matter in some use cases. And, [that] sometimes that will break assumptions made in other parts of the system." Another concern that Ts'o made -- which I've heard from many other developers -- is that the systemd move was made too quickly: "The problem is sometimes what they break are in other parts of the software stack, and so long as it works for GNOME, they don't necessarily consider it their responsibility to fix the rest of the Linux ecosystem." This, as Ts'o sees it, feeds into another problem: " Systemd problems might not have mattered that much, except that GNOME has a similar attitude; they only care for a small subset of the Linux desktop users, and they have historically abandoned some ways of interacting the Desktop in the interest of supporting touchscreen devices and to try to attract less technically sophisticated users. If you don't fall in the demographic of what GNOME supports, you're sadly out of luck. (Or you become a second class citizen, being told that you have to rely on GNOME extensions that may break on every single new version of GNOME.) " Ts'o has an excellent point. GNOME 3.x has alienated both users and developers . He continued, " As a result, many traditional GNOME users have moved over to Cinnamon, XFCE, KDE, etc. But as systemd starts subsuming new functions, components like network-manager will only work on systemd or other components that are forced to be used due to a network of interlocking dependencies; and it may simply not be possible for these alternate desktops to continue to function, because there is [no] viable alternative to systemd supported by more and more distributions. " Of course, Ts'o continued, "None of these nightmare scenarios have happened yet. The people who are most stridently objecting to systemd are people who are convinced that the nightmare scenario is inevitable so long as we continue on the same course and altitude." Ts'o is "not entirely certain it's going to happen, but he's afraid it will. What I find puzzling about all this is that even though everyone admits that sysvinit needed replacing and many people dislike systemd, the distributions keep adopting it. Only a few distributions, including Slackware , Gentoo , PCLinuxOS , and Chrome OS , haven't adopted it. It's not like there aren't alternatives. These include Upstart , runit , and OpenRC . If systemd really does turn out to be as bad as some developers fear, there are plenty of replacements waiting in the wings. Indeed, rather than hear so much about how awful systemd is, I'd rather see developers spending their time working on an alternative. #### [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 29, 2019] Bilderberg 2015: where criminals mingle with ministers by Charlie Skelton ##### Notable quotes: ##### "... The Bilderberg set call people like you either their "dogs" (if you are in politics or the military) or the "dead." ..." ##### "... What do you mean "where criminals mingle with ministers". That is assuming that ministers are not criminals. Considering that there will be ministers from the USA, Canada, France, Germany, Italy, Japan and the UK, I'd suggest that there is a near 100% certainty that some, if not all, the ministers there are criminals. ..." ##### "... That one group of almost-certainly-criminals meets another group of almost-certainly-criminals is hardly surprising. That the whole shebang is protected by the host's police force is even less so ..." ###### Jun 12, 2015 | The Guardian Convicted criminals. Such as disgraced former CIA boss, David Petraeus, who's just been handed a100,000 (£64,000) fine and two years' probation for leaking classified information.

Petraeus now works for the vulturous private equity firm KKR, run by Henry Kravis, who does arguably Bilderberg's best impression of Gordon Gecko out of Wall Street. Which he cleverly combines with a pretty good impression of an actual gecko.

... ... ...

"Can I go now?" Another no. So I continued my list of criminals. I moved on to someone closer to home: René Benko, the Austrian real estate baron, who had a conviction for bribery upheld recently by the supreme court. Which didn't stop him making the cut for this year's conference. "You know Benko?" The cop nodded. It wasn't easy to see in the glare of the searchlight, but he looked a little ashamed.

... ... ...

I decided to reward their vigilance with a chat about HSBC. The chairman of the troubled banking giant, Douglas Flint, is a regular attendee at Bilderberg, and he's heading here again this year, along with a member of the bank's board of directors, Rona Fairhead. Perhaps most tellingly, Flint is finding room in his Mercedes for the bank's busiest employee: its chief legal officer, Stuart Levey.

A Guardian editorial this week branded HSBC "a bank beyond shame" after it announced plans to cut 8,000 jobs in the UK, while at the same time threatening to shift its headquarters to Hong Kong. And having just been forced to pay £28m in fines to Swiss regulators investigating money-laundering claims. The big question, of course, is how will the chancellor of the exchequer, George Osborne, respond to all this? Easy – he'll go along to a luxury Austrian hotel and hole up with three senior members of HSBC in private. For three days.

High up on this year's conference agenda is "current economic issues", and without a doubt, one of the biggest economic issues for Osborne at the moment is the future and finances of Europe's largest bank. Luckily, the chancellor will have plenty of time at Bilderberg to chat all this through through with Flint, Levey and Fairhead. And the senior Swiss financial affairs official, Pierre Maudet, a member of the Geneva state council in charge of the department of security and the economy. It's all so incredibly convenient.

... ... ...

consumersunite -> MickGJ 12 Jun 2015 15:23

Let's see, maybe because we have read over their leaked documents from the 1950s in which they discussed currency manipulation and GATT. Everything they have discussed in their meetings over the past decades has almost come to fruition. There are elected officials meeting with criminals such as HSBC. Did you even read the article? If you did, and you are not het up or whatever you call it, then you are of a peasant mentality, and there is no use talking to you.

The Bilderberg set call people like you either their "dogs" (if you are in politics or the military) or the "dead." I won't be looking for your response because you have confirmed that you do not matter.

Carpasia -> MickGJ 12 Jun 2015 10:52

Thank you for your comment, my good man. Hatred is human, and helps us all to avoid pain, for pain, especially unnecessary pain, is allowed to be hated by the agreement of all, if nothing else is. I would hate to be beaten by Nazis. Thus, I would avoid going to a place where that could occur. That is how hatred works for me. It is the only way it can work, and not be pernicious to the self and others.

I distrust the international order as it is the means, harnessed by money, whether corporate or state or individual or monarchical, by which this world is being destroyed. Could things have been better? Jesus is on one end of the spectrum, and Lord Acton on the other, of the spectrums of viewpoints from which that could be properly assessed.

If the corruption at the heart of the international order is not regulated properly, this world will come to an end, not the end of the world itself, but the end of the world as we know it. This is happening now. The world is finite.

I am not a xenophobe. In my experience, the people that are most likely to hurt me, and thus deserve fear, are those closest. Perhaps that is a cynical way of describing it, but anyone who thinks honestly about it would accede to the notion that it is the people who "love" us that hurt us the most, for we agree too be vulnerable to them. It is the matrix of love.

As for Austria and Bavaria, I have visited both places and they were, both, the cleanest locales I have ever seen, with Switzerland having to be mentioned in the same breath, of course.

I take a certain liberty in writing. I am not damning the human race, or strangers to me. If I did not entertain, but caused offence, I apologize to you. I do not possess omniscience, and my words will have to speak for themselves.

Thank you, again.

DemonicWarlordSlayer 12 Jun 2015 08:02

"How Geo Bush's Grandfather Helped Hitler's Rise to Power" in the UK Guardian >

"Did Geo H W Bush Coordinate a JFK Hit Team" at Veterans Today >

"9/11 Conspiracy Solved, Names, Connections, Details" on youtube....dot-to-dot of the

Demonic Warlord's Crimes Against Humanity....end feudalism.

Carpasia 12 Jun 2015 07:09

Excellent article.

I visited Austria once, and I know of what he speaks. It was the one place I have ever visited that I thought I would be jailed if I littered. I was wandering at the time, but I tentatively had a meal of chicken and departed henceforth.

Austrians are an interesting lot, to be sure. That they are perfect goes without saying. Their main virtue is that they do not travel, and that strangers, which we call tourists these days, are not welcomed. If only we were all like that, the world would be a far better place.

Austrians do everything well, including crime. Some of the greatest crimes in the world have been committed by Austrians, but their crimes did not include not having their papers.

During World War 2, and I pass over Hitler, the German machine of death had an unusually high proportion of Austrians in commanding roles assisting it. It can not be explained away by saying they were some kind of faux Germans, and so it matters not. Indeed, if anything, Germans are faux Austrians, looked at in the broad brush of history. Men of many nations joined the Germans and adorned themselves with the Death's Head, but many Austrians might as well have tattooed it onto their foreheads. I know of what I speak, for I read on it, and will justify if questioned.

Reinhard Heydrich is an epitome of this, in the true sense of the word. Kurt Waldheim was another, too young too rise too far before the Ragnarok of May of 1945, but government of the world was not out of his reach, a man who had materially assisted the transportation of the Jews of Thessaloniki to the gas chambers of Auschwitz and, when challenged, was unrepentant, not as a racist, but as something worse even, as a man whose great virtue was that he followed orders. It is order that the Austrians value over everything. Even crime is ordered.

In the common-law west we think criminals are disordered beasts to be locked up. We do not give them papers. They are registered only to warn us of their existence, and we do not like to let them travel, as much as we could benefit by their absence, because we think they flee to license, and we think it wrong to inflict them upon innocents abroad. In Austria, the criminal is the man with no papers. If he has papers, all is well, and he is no criminal, whatever he has done.

colingorton 12 Jun 2015 03:19

What do you mean "where criminals mingle with ministers". That is assuming that ministers are not criminals. Considering that there will be ministers from the USA, Canada, France, Germany, Italy, Japan and the UK, I'd suggest that there is a near 100% certainty that some, if not all, the ministers there are criminals.

That one group of almost-certainly-criminals meets another group of almost-certainly-criminals is hardly surprising. That the whole shebang is protected by the host's police force is even less so.

How far can all this mutual back scratching go? It seems that the only alternative left is far too drastic, but there really seems to be no place for a legal alternative, does there?

#### [Jan 29, 2019] 7th Circuit Rules Age Discrimination Law Does Not Include Job Applicants

##### "... Most of the positions in science and engineering fields now are basically "gig" positions, lasting a few months to a year. ..."
###### Jan 29, 2019 | www.nakedcapitalism.com

By Jerri-Lynn Scofield, who has worked as a securities lawyer and a derivatives trader. She is currently writing a book about textile artisans.

The US Court of Appeals for the Seventh Circuit decided in Kleber v. CareFusion Corporation last Wednesday that disparate impact liability under the Age Discrimination in Employment Act (ADEA) applies only to current employees and does not include job applicants.

The case was brought by Dale Kleber, an attorney, who applied for a senior position in CareFusion's legal department. The job description required applicants to have "3 to 7 years (no more than 7 years) of relevant legal experience."

Kleber was 58 at the time he applied and had more than seven years of pertinent experience. CareFusion hired a 29-year-old applicant who met but did not exceed the experience requirement.

Kleber filed suit, pursuing claims for both disparate treatment and disparate impact under the ADEA. The Chicago Tribune notes in Hinsdale man loses appeal in age discrimination case that challenged experience caps in job ads that "Kleber had out of work and job hunting for three years" when he applied for the CareFusion job.

Some Basics

Let's start with some basics, as the US Equal Employment Opportunity Commission (EEOC) set out in a brief primer on basic US age discrimination law entitled Questions and Answers on EEOC Final Rule on Disparate Impact and "Reasonable Factors Other Than Age" Under the Age Discrimination in Employment Act of 1967 . The EEOC began with a brief description of the purpose of the ADEA:

The purpose of the ADEA is to prohibit employment discrimination against people who are 40 years of age or older. Congress enacted the ADEA in 1967 because of its concern that older workers were disadvantaged in retaining and regaining employment. The ADEA also addressed concerns that older workers were barred from employment by some common employment practices that were not intended to exclude older workers, but that had the effect of doing so and were unrelated to job performance.

It was with these concerns in mind that Congress created a system that included liability for both disparate treatment and disparate impact. What's the difference between these two concepts?

According to the EEOC:

[The ADEA] prohibits discrimination against workers because of their older age with respect to any aspect of employment. In addition to prohibiting intentional discrimination against older workers (known as "disparate treatment"), the ADEA prohibits practices that, although facially neutral with regard to age, have the effect of harming older workers more than younger workers (known as "disparate impact"), unless the employer can show that the practice is based on an [Reasonable Factor Other Than Age (RFAO)]

The crux: it's much easier for a plaintiff to prove disparate impact, because s/he needn't show that the employer intended to discriminate. Of course, many if not most employers are savvy enough not to be explicit about their intentions to discriminate against older people as they don't wish to get sued.

District, Panel, and Full Seventh Circuit Decisions

The district court dismissed Kleber's disparate impact claim, on the grounds that the text of the statute- (§ 4(a)(2))- did not extend to outside job applicants. Kleber then voluntarily dismissed his separate claim for disparate treatment liability to appeal the dismissal of his disparate impact claim. No doubt he was aware – either because he was an attorney, or because of the legal advice received – that it is much more difficult to prevail on a disparate treatment claim, which would require that he establish CareFusion's intent to discriminate.

Or at least that was true before this decision was rendered.

Unfortunately, the seventh circuit has now held that the disparate impact section of the ADEA does not extend to job applicants. .Judge Michael Scudder, a Trump appointee, wrote the majority 8-4 opinion, which reverses an earlier 2-1 panel ruling last April in Kleber's favor that had initially overruled the district court's dismissal of Kleber's disparate impact claim.

The majority ruled:

By its terms, § 4(a)(2) proscribes certain conduct by employers and limits its protection to employees. The prohibited conduct entails an employer acting in any way to limit, segregate, or classify its employees based on age. The language of § 4(a)(2) then goes on to make clear that its proscriptions apply only if an employer's actions have a particular impact -- "depriv[ing] or tend[ing] to deprive any individual of em- ployment opportunities or otherwise adversely affect[ing] his status as an employee." This language plainly demonstrates that the requisite impact must befall an individual with "status as an employee." Put most simply, the reach of § 4(a)(2) does not extend to applicants for employment, as common dictionary definitions confirm that an applicant has no "status as an employee." (citation omitted)[opinion, pp. 3-4]

By contrast, in the disparate treatment part of the statute (§ 4(a)(1)):

Congress made it unlawful for an employer "to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privi- leges of employment, because of such individual's age."[opinion, p.6]

The court compared the disparate treatment section – § 4(a)(1) – directly with the disparate impact section – § 4(a)(2):

Yet a side-by-side comparison of § 4(a)(1) with § 4(a)(2) shows that the language in the former plainly covering appli-cants is conspicuously absent from the latter. Section 4(a)(2) says nothing about an employer's decision "to fail or refuse to hire any individual" and instead speaks only in terms of an employer's actions that "adversely affect his status as an employee." We cannot conclude this difference means nothing: "when 'Congress includes particular language in one section of a statute but omits it in another' -- let alone in the very next provision -- the Court presumes that Congress intended a difference in meaning." (citations omitted)[opinion, pp. 6-7]

The majority's conclusion:

In the end, the plain language of § 4(a)(2) leaves room for only one interpretation: Congress authorized only employees to bring disparate impact claims.[opinion, p.8]

Greying of the Workforce

Older people account for a growing percentage of the workforce, as Reuters reports in Age bias law does not cover job applicants: U.S. appeals court :

People 55 or older comprised 22.4 percent of U.S. workers in 2016, up from 11.9 percent in 1996, and may account for close to one-fourth of the labor force by 2022, according to the Bureau of Labor Statistics.

The greying of the workforce is "thanks to better health in older age and insufficient savings that require people to keeping working longer," according to the Chicago Tribune. Yet:

numerous hiring practices are under fire for negatively impacting older applicants. In addition to experience caps, lawsuits have challenged the exclusive use of on-campus recruiting to fill positions and algorithms that target job ads to show only in certain people's social media feeds.

Unless Congress amends the ADEA to include job applicants, older people will continue to face barriers to getting jobs.

The Chicago Tribune reports:

The [EEOC], which receives about 20,000 age discrimination charges every year, issued a report in June citing surveys that found 3 in 4 older workers believe their age is an obstacle in getting a job. Yet hiring discrimination is difficult to prove and often goes unreported. Only 3 percent have made a formal complaint. Allowing older applicants to challenge policies that have an unintentionally discriminatory impact would offer another tool for fighting age discrimination, Ray Peeler, associate legal counsel at the EEOC, has said.

How will these disparate impact claims now fare?

The Bottom Line

FordHarrison, a firm specialising in human relations law, noted in Seventh Circuit Limits Job Applicants' Age Discrimination Claims :

The decision narrowly applies to disparate impact claims of age discrimination under the ADEA. It is important to remember that job applicants are protected under the disparate treatment portion of the statute. There is no split among the federal appeals courts on this issue, making it an unlikely candidate for Supreme Court review, but the four judges in dissent read the statute as being vague and susceptible to an interpretation that includes job applicants.

Their conclusion: "a decision finding disparate impact liability for job applicants under the ADEA is unlikely in the near future."

Alas, for reasons of space, I will not consider the extensive dissent. My purpose in writing this post is to discuss the majority decision, not to opine on which side made the better arguments.

antidlc , January 27, 2019 at 3:28 pm

8-4 opinion. Which judges ruled for the majority? Which judges ruled for the minority opinion?

Sorry,,,don't have time to research right now. It says a Trump appointee wrote the majority opinion. Who were the other 7?

grayslady , January 27, 2019 at 6:09 pm

There were 3 judges who dissented in whole and one who dissented in part. Of the three full dissensions, two were Clinton appointees (including the Chief Justice, who was one of the dissenters) and one was a Reagan appointee. The partial dissenter was also a Reagan appointee.

run75441 , January 27, 2019 at 11:25 pm

ant: Not your law clerk, read the opinion. Easterbook and Wood dissented. Find the other two and and you can figure out who agreed.

YankeeFrank , January 27, 2019 at 3:58 pm

"depriv[ing] or tend[ing] to deprive any individual of employment opportunities or otherwise adversely affect[ing] his status as an employee."

–This language plainly demonstrates that the requisite impact must befall an individual with "status as an employee."

So they totally ignore the first part of the sentence -- "depriv[ing] or tend[ing] to deprive any individual of employment opportunities " -- "employment opportunities" clearly applies to applicants.

Its as if these judges cannot make sense of the English language. Hopefully the judges on appeal will display better command of the language.

Alfred , January 27, 2019 at 5:56 pm

I agree. "Employment opportunities," in the "plain language" so meticulously respected by the 7th Circuit, must surely refer at minimum to 'the chance to apply for a job and to have one's application fairly considered'. It seems on the other hand a stretch to interpret the phrase to mean only 'the chance to keep a job one already has'. Both are important, however; to split them would challenge even Solomonic wisdom, as I suppose the curious decision discussed here demonstrates. I am less convinced that the facts as presented here establish a clear case of age discrimination. True, they point in that direction. But a hypothetical 58-year old who only earned a law degree in his or her early 50s, perhaps after an earlier career in paralegal work, could have legitimately applied for a position requiring 3 to 7 years of "relevant legal experience." That last phrase, is of course, quite weasel-y: what counts as "relevant" and what counts as "legal" experience would under any circumstances be subject to (discriminatory) interpretation. The limitation of years of experience in the job announcement strikes me as a means to keep the salary within a certain budgetary range as prescribed either by law or collective bargaining.

Almost like the willful misunderstanding of "A well regulated militia being necessary to the security of a free State "? Of course, that militia also meant slave patrols and the occasional posse to put down the native "savages," but still.

> "depriv[ing] or tend[ing] to deprive any individual of employment opportunities or otherwise adversely affect[ing] his status as an employee."

Says "or." Not "and."

Magic Sam , January 27, 2019 at 5:53 pm

They are failing to find what they don't want to find.

Magic Sam , January 27, 2019 at 5:58 pm

Being pro-Labor will not get you Federalist Society approval to be nominated to the bench by Trump. This decision came down via the ideological makeup of the court, not the letter of the law. Their stated pretext is obviously b.s.. It contradicts itself.

Mattie , January 27, 2019 at 6:05 pm

Yep. That is when their Utah et al property mgt teams began breaking into homes, tossing contents – including pets – outside & changing locks

Even when borrowers were in approved HAMP, etc. pipelines

PLUG: If you haven't yet – See "The Florida Project"

nothing but the truth , January 27, 2019 at 7:18 pm

as an aging "stem" (cough coder) worker who typically has to look for a new "gig" every few years, i am trembling at this.

Luckily, i bought a small business when I had a few saved up, so I won't starve.

Health insurance is another matter.

I forbade my kids to study programming.

Plumbing. Electrical work. Permaculture. Get those kids Jackpot-ready!

Joe Well , January 28, 2019 at 11:40 am

I'm re reading the classic of Sociology Ain't No Makin It by Jay MacLeod, in which he studies the employment prospects of youths in the 1980s and determined that even then there was no stable private sector employment and your best option is a government job or to have an excellent "network" which is understandably hard for most people to achieve. So I'm genuinely interested in what possible options there are for anyone entering the job market today or God help you, re-entering. I am guessing the barriers to entry to those trades are quite high but would love to be corrected.

what is the point of being jackpot ready if you can't even support yourself today? To fantasize about collapse while sleeping in a rented closet and driving for Uber? In that case one's personal collapse has already happened, which will matter a lot more to an individual than any potential jackpot.

Plumbers and electricians can make money now of course (although yea barriers to entry do seem high, don't you kind of have to know people to get in those industries?). But permaculture?

Ford Prefect , January 28, 2019 at 1:00 pm

I think the trick is to study something and programming, so the programming becomes a tool rather than an end. A couple of my kids used to ride horses. One of the instructors and stable owners said that a lot of people went to school for equine studies and ended up shoveling horse poop for a living. She said the thing to do was to study business and do the equestrian stuff as a hobby/minor. That way you came out prepared to run a business and hire the equine studies people to clean the stalls.

Do you actually see that many jobs requiring something and programming though? I haven't really. There seems no easy transition out of software work which that would make possible either. Might as well just study the "something".

Programming is a means to an end, not the end itself. If all you do is program, then you are essentially a machine lathe operator, not somebody creating the products the lathe operators turn out.

Understanding what needs to be done helps with structured programs and better input/output design. In turn, structured programming is a good tool to understand the basics of how to manage tasks. At the higher level, Fred Brooks book "The Mythical Man-Month" has a lot of useful project management information that can be re-applied for non computer program development.

We are doing a lot of work with mobile computing and data collection to assist in our regular work. The people doing this are mainly non-computer scientists that have learned enough programming to get by.

The engineering programs that we use are typically written more by engineers than by programmers as the entire point behind the program is to apply the theory into a numerical computation and presentation system. Programmers with a graphic design background can assist in creating much better user interfaces.

If you have some sort of information theory background (GIS, statistics, etc.) then big data actually means something.

nothing but the truth , January 28, 2019 at 7:02 pm

the problem is it is almost impossible to exit the programming business and join another domain. Anyone can enter it. (evidence – all the people with "engineering" degrees from India) Also my wages are now 50% of what i made 10 years ago (nominal). Also I notice that almost no one is doing sincere work. Most are just coasting, pretending to work with the latest toy (ie, preparing for the next interview).

Now almost every "interview" requires writing a coding exam. Which other profession will make you write an exam for 25-30 year veterans? Can you write your high school exam again today? What if your profession requires you to write it a couple of times almost every year?

Hepativore , January 28, 2019 at 2:56 pm

I am an "aging" former STEM worker (histology researcher) as well. Much like the IT landscape, you are considered "over-the-hill" at 35, which I turn on the 31st. While I do not have children and never intend to get married, many biotech companies consider this the age at which a worker is getting long in the tooth. This is because there is the underlying assumption that is when people start having familial obligations.

Most of the positions in science and engineering fields now are basically "gig" positions, lasting a few months to a year. A lot of people my age are finding how much harder it is to find any position at all in these areas as there is a massive pool of people to choose from, even for permatemp work simply because serfs in their mid-30s might get uppity about benefits like family health plans or 401k

I am 59 and do not mind having employers discriminate against me due to age. ( I also need a job) I had my own business and over the years got quite damaged. I was a contractor specializing in older (historical) work.

I was always the lead worker with many friends and other s working with me. At 52 I was given a choice of very involved neck surgery or quit. ( no small businesses have disability insurance!)

I shut down everything and helped my friends who worked for me take some of the work or find something else. I was also a nationally published computer consultant a long time ago and graphic artist.

Reality is I can still do many things but I do nothing as well as I did when I was younger and the cost to employers for me is far higher than a younger person. I had my chance and I chose poorly. Younger people, if that makes them abetter fit, deserve a chance now more than I do.

Joe Well , January 27, 2019 at 7:49 pm

I'm sorry for your predicament. Do you mean you chose poorly when you chose not to get neck surgery? What was the choice you regret?

My career choices. Choosing to close my business to possibly avoid the surgery was actually a good choice.

Joe Well , January 28, 2019 at 11:47 am

I'm sorry for your challenges but I don't think there were many good careers you could have chosen and it would have required a crystal ball to know which were the good ones. Americans your age entered the job market just after the very end of the Golden Age of labor conditions and have been weathering the decline your entire working lives. At least I entered the job market when everyone knew for years things were falling apart. It's not your fault. You were cheated plain and simple.

> I had my chance and I chose poorly.

I don't see how it's possible to predict the labor market years in advance. Why blame yourself for poor choices when so much chance is involved?

With a Jobs Guarantee, such questions would not arise. I also don't think it's only a question of doing, but a question of sharing ("experience, strength, and hope," as AA -- a very successful organization! -- puts it, in a way of thinking that has wide application).

Dianne Shatin , January 27, 2019 at 7:46 pm

Unelected plutocrat and his international syndicate funded by former IBM artificial intelligence developer and social darwinian. data manipulation electronic platforms and social media are at the levels of power in the USA. Anti justice, anti enlightenment, etc.

Since the installation of GW Bush by the Supreme Court, almost 20 yrs. ago, they have tunneled deeply, speaking through propaganda machines such as Rush Limbaugh gaining traction .making it over the finish line with KGB and Russian oligarch backing. The net effect on us? The loss of all built on the foundation of the enlightenment and an exceptional nation no king, a nation of, for and by the people, and the rule of law. There is nothing Judeo-Christian about social darwinism but is eerily similar to National Socialism (Nazis). The ruling againt the plaintiff by the 7th circuit in the U.S. and their success in creating chaos in Great Britain vis a vis "Brexit" by fascist Lafarge Inc. are indicators how easy their ascent.
ows how powerful they have become.

anon y'mouse , January 27, 2019 at 9:19 pm

They had better get ready to lower the SSI retirement age to 55, then. Or I predict blood in the streets.

I wish it was so. They just expect the older crowd to die quietly.

How is it legal , January 27, 2019 at 10:04 pm

Where are the Bipartisan Presidential Candidates and Legislators on oral and verbal condemnation of Age Discrimination , along with putting teeth into Age Discrimination Laws, and Tax Policy. – nowhere to be seen , or heard, that I've noticed; particularly in Blue ™ California, which is famed for Age Discrimination of those as young as 36 years of age, since Mark Zuckerberg proclaimed anyone over 35, over the hill in the early 2000's , and never got crushed for it by the media, or the Politicians, as he should have (particularly in Silicon Valley).

I know those Republicans are venal, but I dare anyone to show me a meaningful Age Discrimination Policy Proposal, pushed by Blue Obama, Hillary, even Sanders and Jill Stein. Certainly none of California's Nationally known (many well over retirement age) Gubernatorial and Legislative Democratic Politicians: Jerry Brown, Gavin Newsom, Dianne Feinstein, Barbara Boxer, Nancy Pelosi, Kamala Harris, and Ro Khanna (or the lesser known California Federal State and Local Democratic Politicians) have ever addressed it; despite the fact that homelessness deaths of those near 'retirement age' have been frighteningly increasing in California's obscenely wealthy homelessness 'hotspots,' such as Silicon Valley.

Such a tragic issue, which has occurred while the last over a decade of Mainstream News and Online Pundits, have Proclaimed 50 to be the new 30. Sadistic. I have no doubt this is linked to the ever increasing Deaths of Despair and attempted and successful suicides of those under, and just over retirement age– while the US has an average Senate age of 65, and a President and 2020 Presidential contenders, over 70 (I am not at all saying older persons shouldn't be elected, nor that younger persons shouldn't be elected, I'm pointing out the imbalance, insanity, and cruelty of it).

Further, age discrimination has been particularly brutal to single, divorced, and widowed females , whom have most assuredly made far, far less on the dollar than males (if they could even get hired for the position, or leave the kids alone, and housekeeping undone, to get a job):

Patrick Button, an assistant economics professor at Tulane University, was part of a research project last year that looked at callback rates from resumes in various entry-level jobs. He said women seeking the positions appeared to be most affected.

"Based on over 40,000 job applications, we find robust evidence of age discrimination in hiring against older women, especially those near retirement age, but considerably less evidence of age discrimination against men," according to an abstract of the study.

Jacquelyn James, co-director of the Center on Aging and Work at Boston College, said age discrimination in employment is a crucial issue in part because of societal changes that are forcing people to delay retirement. Moves away from defined-¬benefit pension plans to less assured forms of retirement savings are part of the reason.

> "Based on over 40,000 job applications, we find robust evidence of age discrimination in hiring against older women, especially those near retirement age, but considerably less evidence of age discrimination against men," according to an abstract of the study.

Well, these aren't real women, obviously. If they were, the Democrats would already be taking care of them.

From the article: The greying of the workforce is "thanks to better health in older age and insufficient savings that require people to keeping working longer," according to the Chicago Tribune.

Get on the clue train Chicago Tribune, because your like W and Trump not knowing how a supermarket works, that's how dense you are. Even if one saved, and even if one won the luck lottery in terms of job stability and adequate income to save from, healthcare alone is a reason to work, either to get employer provided if lucky, or to work without it and put most of one's money toward an ACA plan or the like if not lucky. Yes the cost of almost all other necessities has also increased greatly, but even parts of the country without a high cost of living have unaffordable healthcare.

Enquiring Mind , January 27, 2019 at 11:07 pm

Benefits may be 23-30% or so of payroll and represent another expense management opportunity for the diligent executive. One piece of low-hanging fruit is the age-related healthcare cost. If you hire young people, who under-consume healthcare relative to older cohorts, you save money, ceteris paribus. They have lower premiums, lower loss experience and they rebound more quickly, so you hit a triple at your first at-bat swinging at that fruit. Yes, metaphors are fungible along with every line on the income statement.

If your company still has the vestiges of a pension or similar blandishment, you may even back-load contributions more aggressively, of course to the extent allowable. That added expense diligence will pay off when those annuated employees leave before hitting the more expensive funding years.

NB, the above reflects what I saw and heard at a Fortune 500 company.

Another good reason for a Canadian style single payer system. That turns a deciding factor into a non-factor.

Jack Hayes , January 28, 2019 at 8:15 am

A reason why the court system is overburdened is lack of clarity in laws and regulations. Fix the disparity between the two sections of the law so that courts don't have to decide which section rules.

Polarization has made tweaks and repairs of laws impossible.

Jeff N , January 28, 2019 at 10:17 am

Yep. Many police departments *legally* refuse to hire anyone over 35 years old (exceptions for prior police experience or certain military service)

Joe Well , January 28, 2019 at 12:36 pm

It amazes me how often the government will give itself exemptions to its own laws and principles, and also how often "progressive" nonprofits and political groups will also give themselves such exemptions, for instance, regarding health insurance, paid overtime, paid training, etc. that they are legally required to provide.

Ford Prefect , January 28, 2019 at 2:27 pm

There are specific physical demands in things like policing. So it doesn't make much sense to hire 55 year old rookie policemen when many policemen are retiring at that age.

Arthur Dent , January 28, 2019 at 2:59 pm

Its an interesting quandary. We have older staff that went back to school and changed careers. They do a good job and get paid at a rate similar to the younger staff with similar job-related experience. However, they will be retiring at about the same time as the much more experienced staff, so they will not be future succession replacements for the senior staff.

So we also have to hire people in their 20s and 30s because that will be the future when people like me retire in a few years. That could very well be the reason for the specific wording of the job opening (I haven't read the opinion). I know of current hiring for a position where the firm is primarily looking for somebody in their 20s or early 30s for precisely that reason. The staff currently doing the work are in their 40s and 50s and need to start bringing up the next generation. If somebody went back to school late and was in their 40s or 50s (so would be at a lower billing rate due to lack of job related experience), they would be seriously considered. But the firm would still be left with the challenge of having to hire another person at the younger age within a couple of years to build the succession. Once people make it past 5 years at the firm, they tend to stay for a long time with senior staff generally having been at the firm for 20 years or more, so hiring somebody really is a long-term investment.

#### [Jan 25, 2019] Davos Elites Love to Advocate for Equality - So Long As Nothing Gets Done -

##### "... Branko Milanovic is the author of Global Inequality: A New Approach for the Age of Globalization and of the forthcoming Capitalism, Alone, both published by Harvard University Press. He is senior scholar at the Stone Center on Socio-Economic Inequality at the Graduate Center, City University of New York. An earlier version of this post has previously appeared in Milanovic's blog . ..."
###### Jan 25, 2019 | promarket.org

The return to the industrial relations and tax policies of the early 19th century has been spearheaded by people who speak the language of equality, respect, participation, and transparency.

but slow to take any step.

-- Euripides, Hecuba

Thousands of people with a combined wealth of several hundred billion dollars, perhaps even close to a trillion, are gathering this week in Davos. Never in world history, quite possibly, has the amount of wealth per square foot been so high. This year, for the seventh or eighth consecutive time, one of the principal topics addressed by these captains of industry, billionaires, employers of thousands of people across the four corners of the globe, is inequality. Even the new "hot" topics of the day -- trade wars and populism -- are in turn related, or even caused by inequality of income, wealth, or political power.

Only in passing, and probably on the margins of the official program, will the global elites gathered in Davos get into a discussion of the tremendous monopoly and monopsony power their companies have. Neither will they publicly mention companies' ability to play one jurisdiction against another in order to avoid taxes, ban organized labor within their ranks, use government ambulance services to carry workers who have fainted from the heat (to save expenses on air conditioning), make their workforce complement its wages through private charity donations, or perhaps pay an average tax rate of between 0-12 percent.

Some participants, if they are from the emerging market economies, can also exchange experiences on how to delay payments of wages for several months while investing these funds at high interests rates, save on labor protection standards, or buy privatized companies for a song and then set up shell companies in the Caribbean or Channel Islands.

It is just that somehow, the "masters of the universe" who gather annually in Davos never managed to find enough money, or time, or perhaps willing lobbyists to help with the policies many will agree, during the official sessions, should be adopted. For example, increasing taxes on the top 1 percent and on large estates, providing decent wages or not impounding wages, reducing gaps between CEO compensation and average pay, spending more money on public education, making access to financial assets more attractive to the middle and working class, equalizing taxes on capital and labor, reducing corruption in government contracts and privatizations.

Actually, when policies that are supposed to make some headway in counteracting rising inequality are finally proposed, such as the one made by Rep. Alexandria Ocasio-Cortez (D-NY) of 70 percent marginal tax on extra high-incomes (above $10 million annually), they are quick to argue that such policies will do more harm than good. One is left, to put it mildly, puzzled: If they are against a most obvious and rather modest proposal, what policies do they have in mind to fight inequality? In reality they have none, except for the vacuous talk of "social inclusion," "prosperity for all" and "trickle-down economics." Not surprisingly, nothing has been done since the Global Financial Crisis to address inequality. Rather, the opposite has happened. Donald Trump has, as promised, passed a historic tax cut for the wealthy; Emmanuel Macron has discovered the attraction of latter-day Thatcherism; the Chinese government has slashed taxes on the rich and imprisoned the left-wing students at Peking University who supported striking workers. In Brazil, Jair Bolsonaro seems to consider praise for torture and the rising stock market as the ideal mélange of modern capitalism. Bizarrely, this return to the industrial relations and tax policies of the early 19th century has been spearheaded by people who speak the language of equality, respect, participation, and transparency. The annual gathering in Davos, in that regard, is not just a display of the elites' financial superiority. It is also supposed to showcase their moral superiority. This is in line with a longstanding trend: Over the past fifty years, the language of equality has been harnessed in the pursuit of the most structurally inegalitarian policies. It is much easier (and profitable), apparently, to call journalists and tell them about nebulous schemes whereby 90 percent of wealth will be -- over an unknown number of years and under unknowable accounting practices -- given away as charity than to pay suppliers and workers reasonable rates or stop selling user data. They are loath to pay a living wage, but they will fund a philharmonic orchestra. They will ban unions, but they will organize a workshop on transparency in government. And next year, as inequality continues to rise and the state of Western middle classes continues to deteriorate, the same elites will be back in Davos, talking about inequality and populism in grave tones. A new record in dollar wealth per square foot may be reached, but the topics of discussion within the conference halls, and on the margins, will remain the same. Branko Milanovic is the author of Global Inequality: A New Approach for the Age of Globalization and of the forthcoming Capitalism, Alone, both published by Harvard University Press. He is senior scholar at the Stone Center on Socio-Economic Inequality at the Graduate Center, City University of New York. An earlier version of this post has previously appeared in Milanovic's blog . #### [Jan 20, 2019] Note on students debt peonage ###### Jan 20, 2019 | www.truthdig.com RW: Well at this point I think it really depends on what indexes you're looking at. The biggest thing that's kept this economy going in the last few years should make everybody tremble. It's called debt, let me give you just a couple of examples. Ten years ago, at the height of the crash, the total debt carried by students in the United States was in the neighborhood of$700 billion, an enormous sum. What is it today? Over twice that, one-and-a-half trillion dollars. The reason part of our economy hasn't collapsed is that students have taken up an enormous amount of debt that they cannot afford, in order to get degrees which will let them get jobs whose incomes will not allow them to pay back the debts. And forget about getting married, forget about having a family.

We have paid an enormous price in hobbling the generation of people who would have otherwise lifted this economy and made us more productive. It is a disastrous mistake historically, and if you face that, and if you add to it the increased debt of our businesses, and the increased debt of our government, you see an economy that is held up by a monstrous increase in debt, not in underlying productivity, not in more jobs that really produce anything, but in debt.

That should frighten us because it was the debt bubble that burst in 2008 and brought us the crash. It is as if we cannot learn in our system to do other than we've always done and that's taking us into another crash coming now.

LC: Yeah. This is the land of the free, but it seems like most of us are chained down by debt peonage.

#### [Jan 20, 2019] Degeneration of the US neoliberal elite can be partially attributed to the conversion of neoliberal universities into indoctrination mechanism, rather then institutions for fostering critical thinking

##### "... As their more recent alumni move into government, media and cultural production, the primitiveness of their views and their inability to think -- to say nothing of their fundamental ignorance about our civilization other than that it is bad and evil -- begin to have real effect. ..."
###### Jan 20, 2019 | www.theamericanconservative.com

Paul Reidinger, January 17, 2019 at 2:03 pm

An excellent piece. I would add only that the so-called elites mentioned by Mr Bacevich are largely the products of the uppermost stratum of colleges and universities, at least in the USA, and that for a generation or more now, those institutions have indoctrinated rather than educated.

As their more recent alumni move into government, media and cultural production, the primitiveness of their views and their inability to think -- to say nothing of their fundamental ignorance about our civilization other than that it is bad and evil -- begin to have real effect. The new dark age is no longer imminent. It is here, and it is them. I see no way to rectify the damage. When minds are ruined young, they remain ruined.

#### [Jan 17, 2019] Elizabeth Warren is demanding that Wells Fargo be kicked off college campuses, a market the bank has said is among its fastest-growing

##### "... "When granted the privilege of providing financial services to students through colleges, Wells Fargo used this access to charge struggling college students exorbitant fees," Warren said in a statement. "These high fees, which are an outlier within the industry, demonstrate conclusively that Wells Fargo does not belong on college campuses." ..."
###### Jan 17, 2019 | www.bloomberg.com

Elizabeth Warren is demanding that Wells Fargo & Co. be kicked off college campuses, a market the bank has said is among its fastest-growing.

The Democratic senator from Massachusetts and likely presidential candidate said Thursday that she requested more information from Wells Fargo Chief Executive Officer Tim Sloan and from 31 colleges where the bank does business. The inquiry follows a Consumer Financial Protection Bureau report said that Wells Fargo charged students the highest fees of 573 banks examined.

"When granted the privilege of providing financial services to students through colleges, Wells Fargo used this access to charge struggling college students exorbitant fees," Warren said in a statement. "These high fees, which are an outlier within the industry, demonstrate conclusively that Wells Fargo does not belong on college campuses."

Warren has been a vocal critic of Wells Fargo -- including repeatedly calling for Sloan's ouster -- since a series of consumer issues at the company erupted more than two years ago with a phony-accounts scandal.

Wells Fargo is "continually working to improve how we serve our customers," a bank spokesman said in an emailed statement Thursday. "Before and since the CFPB's review on this topic, we have been pursuing customer-friendly actions that support students," including waiving service fees on some checking accounts offered to them.

A reputation for overcharging students could further harm Wells Fargo's consumer-banking strategy. The San Francisco-based bank has identified college-age consumers as a growth opportunity, and John Rasmussen, head of personal lending, said last year that Wells Fargo may expand into the refinancing of federal student loans.

#### [Jan 17, 2019] The financial struggles of unplanned retirement

##### People who are kicked out of their IT jobs around 55 now has difficulties to find even full-time McJobs... Only part time jobs are available. With the current round of layoff and job freezes, neoliberalism in the USA is entering terminal phase, I think.
###### Jan 17, 2019 | finance.yahoo.com

A survey by Transamerica Center for Retirement Studies found on average Americans are retiring at age 63, with more than half indicating they retired sooner than they had planned. Among them, most retired for health or employment-related reasons.

... ... ...

On April 3, 2018, Linda LaBarbera received the phone call that changed her life forever. "We are outsourcing your work to India and your services are no longer needed, effective today," the voice on the other end of the phone line said.

... ... ...

"It's not like we are starving or don't have a home or anything like that," she says. "But we did have other plans for before we retired and setting ourselves up a little better while we both still had jobs."

... ... ...

Linda hasn't needed to dip into her 401(k) yet. She plans to start collecting Social Security when she turns 70, which will give her the maximum benefit. To earn money and keep busy, Linda has taken short-term contract editing jobs. She says she will only withdraw money from her savings if something catastrophic happens. Her husband's salary is their main source of income.

"I am used to going out and spending money on other people," she says. "We are very generous with our family and friends who are not as well off as we are. So we take care of a lot of people. We can't do that anymore. I can't go out and be frivolous anymore. I do have to look at what we spend - what I spend."

Vogelbacher says cutting costs is essential when living in retirement, especially for those on a fixed income. He suggests moving to a tax-friendly location if possible. Kiplinger ranks Alaska, Wyoming, South Dakota, Mississippi, and Florida as the top five tax-friendly states for retirees. If their health allows, Vogelbacher recommends getting a part-time job. For those who own a home, he says paying off the mortgage is a smart financial move.

... ... ...

Monica is one of the 44 percent of unmarried persons who rely on Social Security for 90 percent or more of their income. At the beginning of 2019, Monica and more than 62 million Americans received a 2.8 percent cost of living adjustment from Social Security. The increase is the largest since 2012.

With the Social Security hike, Monica's monthly check climbed $33. Unfortunately, the new year also brought her a slight increase in what she pays for Medicare; along with a$500 property tax bill and the usual laundry list of monthly expenses.

"If you don't have much, the (Social Security) raise doesn't represent anything," she says with a dry laugh. "But it's good to get it."

#### [Jan 14, 2019] Beware of billionaires and bankers bearing gifts: In education, philanthropy means Billionaires buying the policies they want

##### "... quelle surprise ..."
###### Jan 14, 2019 | www.nakedcapitalism.com

"Winners Take All" is one of several recently published books raising difficult questions about how the world's biggest donors approach their giving. As someone who studies, teaches and believes in philanthropy, I believe these writers have started an important debate that could potentially lead future donors to make make a bigger difference with their giving.

Giridharadas to a degree echoes Ford Foundation President Darren Walker , who has made a stir by denouncing a " paradox of privilege " that "shields (wealthy people) from fully experiencing or acknowledging inequality, even while giving us more power to do something about it."

Like Walker , Giridharadas finds it hard to shake the words of Martin Luther King Jr., who spoke of "the circumstances of economic injustice which make philanthropy necessary."

To avoid changes that might endanger their privileges, mega-donors typically seek what they call win-win solutions. But however impressive the quantifiable results of those efforts may seem, according to this argument, those outcomes will always fall short. Fixes that don't threaten the powers that be leave underlying issues intact.

Avoiding Win-Lose Solutions

In Giridharadas's view, efforts by big funders , such as The Bill and Melinda Gates Foundation and the Walton Family Foundation , to strengthen public K-12 education systems by funding charter schools look past the primary reason why not all students learn at the same pace: inequality .

As long as school systems are funded locally, based on property values, students in wealthy communities will have advantages over those residing in poorer ones. However, creating a more equal system to pay for schools would take tax dollars and advantages away from the rich. The wealthy would lose, and the disadvantaged would win.

So it's possible to see the nearly $500 million billionaires and other rich people have pumped into charter schools and other education reform efforts over the past dozen years as a way to dodge this problem. Charters have surely made a difference for some kids, such as those in rural Oregon whose schools might otherwise have closed. But since the bid to expand charters doesn't address childhood poverty or challenge the status quo – aside from diluting the power of teacher unions and raising the stakes in school board elections – this approach seems unlikely to help all schoolchildren. Indeed, years into the quest to fix this problem without overhauling school Paying for Tuition Bloomberg's big donation raises a similar question. He aims to make a Johns Hopkins education more accessible for promising low-income students. When so many Hopkins alumni have enjoyed success in a wide range of careers, what can be wrong with that? Well, paying tuition challenges millions of Americans, not just the thousands who might attend Hopkins . Tuition, fees, room and board at the top-ranked school cost about$65,000 a year.

Only 5 percent of colleges and universities were affordable , according to the Institute for Higher Education Policy, a nonpartisan global research and policy center, for students from families earning $69,000 a year or less. Like Giridharadas, the institute argues paying for college is "largely a problem of inequity." Bloomberg's gift will certainly help some people earn a Hopkins degree. But it does nothing about the bigger challenge of making college more affordable for all in a country where student debt has surpassed$1.5 trillion .

One alternative would be to finance advocacy for legislative remedies to address affordability and inequity. For affluent donors, Giridharadas argues, this could prove to be a nonstarter. Like most of what he calls " win-lose solutions ," taking that route would lead to higher taxes for the wealthy.

Subsidies for Gifts from the Rich

Similarly, who could quibble with Bezos spending $2 billion to fund preschools and homeless shelters? Although he has not yet made clear what results he's after, I have no doubt they will make a difference for countless Americans. No matter how he goes about it, the gesture still raises questions. As Stanford University philanthropy scholar Rob Reich explains in his new book " Just Giving ," the tax break rich Americans get when they make charitable contributions subsidizes their favorite causes. Or, to phrase it another way, the federal government gives initiatives supported by Bezos and other wealthy donors like him preferential treatment. Does that make sense in a democracy? Reich says that it doesn't. me title= The elected representatives in democracies should decide how best to solve problems with tax dollars, not billionaires who are taken with one cause or another, the Stanford professor asserts. That's why I think it's so important to ask the critical questions that Giridharadas and Reich are raising, and why the students taking my philanthropy classes this semester will be reading "Winners Take All" and "Just Giving." Editor's note: Johns Hopkins University Press provides funding as a member of The Conversation US, which also has a grant from the Walton Family Foundation. The Gates Foundation is a funder of The Conversation Media Group. tongorad , January 11, 2019 at 10:35 am In education, philanthropy means Billionaires buying the policies they want. Re Bill Gates, Eli Broad, DeVos, etc, Adam Eran , January 11, 2019 at 12:47 pm None of the common tactics of the "reformers" have scientific backing. So (union-busting) charter schools, merit pay (because teachers are motivated by money), and testing kids until their eyeballs bleed are all bogus, and do not have an impact on educational outcomes. The plutocrats have even funded a propaganda film called "Waiting for Superman" in which Michelle Rhee applies "tough love" to reform failing Washington D.C. schools, firing lots of teachers because their students' test scores didn't make the cut, etc. Waiting for Superman touts the Finnish schools as the ones to emulate and they are very good ones, too. Omitted from their account is the fact that Finnish teachers are tenured, unionized, respected and quite well paid. So what does correlate with educational outcomes? Childhood poverty. In Finland, only 2% of their children are poor. In the U.S. it's 23%. The problem is systemic, not the teachers, or the types of schools. In some sense this is nothing new. Back when Pittsburgh was a network of steel mills and mine tailings Carnegie funded meuseums, libraries, arboretums, and strike-breakers who shot workers that complained. He was public about the need to "give back" and made a point of demanding that the places were open on Sundays because he forced his workers to do 12 hour days six days a week. No doubt he may have felt he was helping, and no doubt the institutions have been and still are a positive benefit, but they also did nothing to attack the root cause of the suffering nor did they make any fundamental change in society. That would upset his apple cart. By the same token the fact that private donors needed to fund public institutions was based upon the simple fact that they had all the money. It is also notable that some of the more recent endeavors such as Gates' tech-driven charter schools, or Facebook's donation to the same, or for that matter Apple's donation of iPads to LAUSD have a direct commercial component. The intial gift may be free but in the end it is market-making as much of the cash routes back to the company. They may genuinely believe in the solution but the financial connection is also clear. More interesting though Pierre Omidyar who combined his business and "philanthropy" more directly by putting money into a foundation that then invests in startups he runs which "do social good" or which sell technology to those that do so. Ultimately Bill Gates and Jeff Bezos may have more to play with than Carnegie ever dreamed of but at the end of the day much of what they are doing is the same, starving necessary institutions of funds, smoothing out the rough edges of their PR (especially when, like Bezos, they are in the crosshairs), and then peddling "solutions" that look good but only reinforce the conditions that make them rich. JerryDenim , January 11, 2019 at 12:42 pm " have a direct commercial component. The intial gift may be free but in the end it is market-making as much of the cash routes back to the company." How true, but you might not even be cynical enough. Back in 2012 (I believe) there was reportage about large banks quitely lobbying Bloomberg to make big cuts to the New York City's funding of local charities and non-profits. Several million dollars were cut as a result of the austerity lobbying by the banks. The same week the food pantry where I volunteered, which lost$40,000 of City funding if memory serves me correctly, received a "generous" gift of a folding table from Citibank. My wife who at the time worked at a large non-profit dedicated to community issues in the South Bronx, had to attend a presentation by a Citibank employee with a name like "How the Nonprofit Community Has Failed the Community". Her attendance was a courtesy demanded in exchange for a several thousand dollar donation from Citibank to her nonprofit. Her non-profit lost much more in funding from the City due to the banks' lobbying efforts, and surprise surprise, what was the main thrust of the Citibank presentation? How micro-finance lending can help historically marginalized communities of course! My wife's organization was engaged in several programs aimed at encouraging and aiding entrepreneurship and financial literacy. Citibank saw local non-profits that were helping the community keep their collective heads above the water as competition. Their programatic work was harmful to the bank's business model of luring people into odious debt by promulgating an environment of despair and desperation.

Beware of billionaires and bankers bearing gifts. Their vast fortunes should be trimmed down to size with taxation/force and distributed democratically according to the needs of the community, not the whims of the market or the misguided opinions of non-expert, know-it-all billionaires who have never lived nor worked in the communities they claim to care about.

Montanamaven , January 11, 2019 at 1:31 pm

Charity makes people supplicants which is a form of servitude. "Thank you kindly, sir, for you gracious gift." That is not a "free" society. We should have a society where no one needs some good folks' trickle downs. A basic guaranteed income might work better than the system we have now especially with an affordable heath care system. It would eliminate food banks and homeless shelters and jobs involving making lists and forms and graphs for the Medical Insurance Business. And it would eliminate a lot of other stupid and bullsh*t jobs. Yes, I've been rereading David Graeber's "Bullsh*t Jobs."

chuck roast , January 11, 2019 at 4:36 pm

Several years ago I collected signatures for Move to Amend, an organizations which advocates for an anti-corporate personhood amendment to the US Constitution. I learned two things:
1. ordinary citizens 'get it' about corporations running the show, and they are enthusiastic about bringing them to heel, and
2. ordinary citizens who work in 501(c)3 non-profits are far less enthusiastic about the possible withering away of their cozy corporate dole.
So, while the giant vampire squids of the world drift lazily along on a fine current of their own making, keep in mind that there are huge schools of pilot fish that depend on their leavings for survival. All of these small fish will surely resist any effort to tenderize this calamari.

drHampartzunk , January 11, 2019 at 4:43 pm

No one said it better than William Jewett Tucker, a contemporary critic of Carnegie:

"I can conceive of no greater mistake, more disastrous in the end to religion if not to society, than of trying to make charity do the work of justice."

David in Santa Cruz , January 11, 2019 at 8:28 pm

This was a terrific post on a very important issue.

Even in my insignificant little burg we have experienced this problem first-hand. A local Charter School was doing a very good job of "keeping out the brown people" and publishing a "walk of shame" of all who made "voluntary" contributions to their coffers, thus "outing" those who didn't (the California constitution forbids schools that spend public money from requiring fees). They even went so far as to hire a Head of School from one of the last Mississippi Segregation Acadamies, just in case their "mission" wasn't clear. Admission was by lottery ("because lotteries are fair!"), unless you happened to be on their massively bloated and self-appointed Board (including influential local officials, quelle surprise !). Those with learning differences or languages other than English were "strongly discouraged" from even applying.

The Charter covered their operating budget with all those "voluntary" contributions, and had sequestered all the cash squeezed out of the local public schools, in order to buy an office building (because kids just love preparing for the world of work by going to school in office buildings!). A local billionaire whose name rhymes with "Netflix" bailed them out with a $10M donation for the building when it appeared that some in authority might look askance at who would be the beneficiaries of this insider real estate deal using skimmed-off public monies. Scratch a Charter School and 9 times out of 10 there's a real estate deal underlying it ("Because, the children !"). Billionaires should have no more influence than any other individual voter in making public policy. orange cats , January 13, 2019 at 9:45 am Grrrrr, Charter Schools are making me angry. The real estate deal(s), you mention are absolutely true. Here's another sweet scheme in Arizonia: "The Arizona Republic has reported that Rep. Eddie Farnsworth stands to make about$30 million from selling three charter schools he built with taxpayer money.
The toothless Arizona State Board for Charter Schools approved the transfer of his for-profit charter school to a new, non-profit company. He might collect up to $30 million -- and maybe even continue running the operation in addition to retaining a$3.8 million share in the new for-profit company.

The Benjamin Franklin charter schools operate in wealthy neighborhoods. The 3,000 students have good scores and the schools have a B rating. But that's not surprising, since most of the parents have high incomes and college educations. If the schools are like most charters in the state, they're more racially segregated than the campuses in the surrounding school districts. The state pays the charter schools $2,000 per student more than it pays traditional school districts like Payson -- which is supposedly to make up for the charter's inability to issue bonds and such. However, converting the charters to a non-profit company will enable the schools to avoid property taxes and qualify for federal education funds. Taxpayers will essentially end up paying for the same schools twice, since taxpayers have footed the bills for the lease payments to the tune of about$5 million annually. Now, the new owners will use taxpayer money to finance the purchase of buildings already paid for by taxpayers."

drHampartzunk , January 11, 2019 at 9:08 pm

Stevenson school in Mountain View CA, a public school with PACT (parents and children together), has a lottery. Its students are 70% white. Across the street, Theuerkauf, which does not have PACT, is 30% white and no lottery. And a huge difference in the two schools test scores. Smells illegal.

Also, Google took the former building of the former PACT program hosting school, which resulted in this grotesque distortion of the supposed public service the school district provides.

Michael Fiorillo , January 12, 2019 at 9:09 am

As a former NYC public school teacher who fought against the billionaire-funded hostile takeover of public education for two decades, I'm gratified to see the beginnings of a harsher critique of so-called philanthropy, in education and everywhere else.

But the next hurdle is to overcome the tic of always qualifying critique and pushback with talk of the "good intentions" of these Overclass gorgons. Their intention are not "good" in the way most human beings construe that word, and are the same as they've always been: accumulation and establishing the political wherewithal to maintain/facilitiate the same. This hustle does the added trick of getting the public to subsidize it's own impoverishment and loss of political power (as in Overclass ed reformers funding efforts to eliminate local school boards).

When there is near-total congruence between your financial/political interests and the policies driven by your "philanthropy," the credibility of your "good intentions" transacts at an extremely high discount, no matter how much you try to dress it up with vacuous and insipid social justice cliches. For a case in point, just spend five minutes researching the behavior and rhetoric of Teach For America.

Malanthropy (n): the systemic use of non-profit, tax-exempt entities to facilitate the economic and political interests of their wealthy endowers, to the detriment of society at large. See also, Villainthropy.

Mattski , January 12, 2019 at 11:07 am

The critical thing, I have found, is to see "philanthropy" and charitable endeavor as a cornerstone of capitalism, without which the system would–without any doubt–fail. Engels and others documented, contemporary scholars have continued to document, the way that the wives of the first factory owners established almshouses and lying in hospitals where the deserving poor were separated from the undeserving, dunned with religion and political cant, and channelled into various forms of work, including reproductive labor. A very big piece of the neoliberal puzzle involves the rise of the NGO during the Clinton/Blair period, and its integration with works of the like of the IMF and USAID, the increasing sophistication of this enterprise which has at times also included union-busting (see Grenada in the aftermath of the US invasion) and worse. As a State Department function, the Peace Corps integrates the best of charity, grassroots capitalism, and good old Protestant cant.

Spring Texan , January 12, 2019 at 5:54 pm

I've read the Winners Take All book and it's terrific! Even if you understand the general outlines, the author will make you see things differently because of his intimate knowledge of how this ecosystem works. Highly recommended! Also recommend his twitter account, @AnandWrites ‏

He's really good on "pinkerizing" too, and "Thought Leaders" and how they comfort the comfortable.

#### [Jan 12, 2019] Tucker Carlson Mitt Romney supports the status quo. But for everyone else, it's infuriating Fox News

##### "... 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 about $22 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. Video 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 ##### Highly recommended! ##### Tucker Carlson sounds much more convincing then Trump: See Tucker Leaders show no obligation to American voters and Tucker The American dream is dying ##### Notable quotes: ##### "... 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 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. ..." ##### "... The Two-Income Trap: Why Middle-Class Parents Are Growing Broke ..." ##### "... 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." ..." ##### "... "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?" ..." ##### "... 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." ..." ##### "... 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. ..." ##### "... Ocasio-Cortez wants a 70-80% income tax on the rich. I agree! Start with the Koch Bros. -- and also make it WEALTH tax. ..." ##### "... "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." ..." ##### "... 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. ..." ##### "... 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. ..." ##### "... Hillbilly Elegy ..." ##### "... 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. #### [Jan 06, 2019] Neocons in US niversities: Everything Madeleine Albright Doesn t Like is Fascism ##### Notable quotes: ##### "... The fact that obviously deranged fanatic hack has students is a testimony to a sewer level of the US "elite-producing" machine and a pathetic sight contemporary US "elite" represents. ..." ##### "... "political science" is not a science but pseudo-academic field for losers who do not want to study real history or take courses which actually develop intellect and provide fundamental knowledge. ..." ###### Jan 06, 2019 | www.unz.com Early on in her book, Albright says: My students remarked that the Fascist chiefs we remember best were charismatic Marked in bold is the most terrifying thing about Albright's book and I am not even going to read her pseudo-intellectual excrement. The fact that obviously deranged fanatic hack has students is a testimony to a sewer level of the US "elite-producing" machine and a pathetic sight contemporary US "elite" represents. This is apart from the fact that "political science" is not a science but pseudo-academic field for losers who do not want to study real history or take courses which actually develop intellect and provide fundamental knowledge. #### [Jan 04, 2019] A whopping 84 percent of all stocks owned by Americans belong to the wealthiest 10 percent of households. And that includes everyone's stakes in pension plans, 401(k)'s and individual retirement accounts, as well as trust funds, mutual funds and college savings programs like 529 plans. ###### Jan 04, 2019 | economistsview.typepad.com anne -> anne... , January 01, 2019 at 12:58 PM https://www.nytimes.com/2018/02/08/business/economy/stocks-economy.html February 8, 2018 We All Have a Stake in the Stock Market, Right? Guess Again By PATRICIA COHEN Take a deep breath and relax. The riotous market swings that have whipped up frothy peaks of anxiety over the last week -- bringing the major indexes down more than 10 percent from their high -- have virtually no impact on the income or wealth of most families. The reason: They own little or no stock. A whopping 84 percent of all stocks owned by Americans belong to the wealthiest 10 percent of households. And that includes everyone's stakes in pension plans, 401(k)'s and individual retirement accounts, as well as trust funds, mutual funds and college savings programs like 529 plans. "For the vast majority of Americans, fluctuations in the stock market have relatively little effect on their wealth, or well-being, for that matter," said Edward N. Wolff, an economist at New York University who recently published new research * on the topic.... Tom aka Rusty said in reply to anne... , January 02, 2019 at 12:13 PM I am skeptical of the 84% if only because 401(k) plans have gotten so large. Darrell in Phoenix said in reply to Tom aka Rusty... , January 03, 2019 at 01:50 PM What I could find says 401(k)s have$5.6T, IRAs have $2.5T, and when you add in pensions, the total is$29 trillion. Not sure when those numbers are from.

Hard to know what part of that is stocks vs. bonds.

As of last April, US stock markets had $34 trillion and the rest of the world$44 trillion equiv.

So, if IRA, 401(k) and retirement plans have almost as much wealth as the total of us stocks, and that is 16% of all stocks... does that mean we
1) Americans own a lot more foreign stocks than foreigners own american stocks
or
2) 84% of retirement assets are bonds?

There is, what? $50 trillion is US debt, much of it backed by bonds. So,$30 trillion retirement assets, $24.5T bonds and$5.5 trillion stocks... such that $5.5T is 16% of$34T?

That doesn't "smell right" to me.

point , January 01, 2019 at 12:37 PM
Meh.

"And it certainly made most Americans poorer. While 2/3 of the corporate tax cut may have gone to U.S. residents, 84 percent of stocks are held by the wealthiest 10 percent of the population. Everyone else will see hardly any benefit."

Wildly unsubstantiated first sentence, though the rest seems likely true. Whether the bulk went to tax cuts for domestic or foreign national or into the furnace, there was indeed some sliver that actually went to the rest of us.

anne -> point... , January 01, 2019 at 01:05 PM
Wildly unsubstantiated...

[ Correct and documented, as always. ]

Plp -> anne... , January 01, 2019 at 01:41 PM
"And it certainly made most Americans poorer"

" everyone else will see hardly any
Benefit "

Well which is it

Poorer or a very little benefit ?

Sloppy righteousness

Plp -> Plp... , January 01, 2019 at 01:55 PM
Here's the PK finesse

"since the tax cut isn't paying for itself

it will eventually have to be paid for some other way "

Nonsense !

" either by raising other taxes
or by cutting spending on programs people value"

This pretends the federal government is a household

Not a self determining
sovereign economy

Plp -> Plp... , January 01, 2019 at 02:01 PM
Sovereign debt in the sovereign's own currency

Has no intrinsic real value

Example

The burden of that debt on society
can become zero
Once the rate of intetest
On the whole stock of debt is cycled
into a zero real rate status

The Fed could start that process at any time

Once it's zero real it can stay zero real forever

EMichael -> Plp... , January 02, 2019 at 04:38 AM
It's about efficiency, not just the printing press.

And even the MMT people realize there are limits.

RC AKA Darryl, Ron said in reply to EMichael... , January 02, 2019 at 06:29 AM
Efficiency of what, I might ask? Efficiency of shipping goods halfway around the world from where people work for less in less safe environments is really the efficiency of theft by capitalists, not the efficiency of production. Taking from the land and sea and dumping waste into the land, sea, and air is the efficiency of theft by capitalists too, not the efficiency of resource use. We are very efficient at making billionaires from externalized costs. We continue to cheaply sell ourselves out because the price is right. Ask Paine what lies hidden in the price?
EMichael -> RC AKA Darryl, Ron... , January 02, 2019 at 06:47 AM
Yeah, I got that business and government can both be inefficient in many ways.

My point is that when you reduce the cost of doing business, or reduce the credit worthiness of a borrower, you will see greater inefficiency.

Digging holes and filling them in is one way to spend money. Building a road or a building is another.

Which would you prefer?

RC AKA Darryl, Ron said in reply to EMichael... , January 02, 2019 at 07:21 AM
I would prefer unhiding externalized costs and allocating domestic labor to pay those costs, not with taxes, but with production of domestic goods and the elimination of pollutants and managed use of limited resources. That's just me and entirely off the subject when it comes to macroeconomics.

In any case, I am also for Paine's KLV full employment macroeconomics. If anything KLV macro is more accessible both politically and intellectually than the kinds of price movements that would be required to place environmentally sustainable caps on carbon emissions or the commercial menhaden catch. A nominal interest rate for interbank lending that was maintained by the Fed to persist at just the rate of inflation except for lower when necessary to recover from a recession is not a terrible thing. The consequence of braking the economy just to avoid hitting some inflation target is reckless driving. As we know the crash victims are always labor.

EMichael -> RC AKA Darryl, Ron... , January 02, 2019 at 07:41 AM
I'd prefer all of that, and a pony.

You need to separate Paine's economics from his politics. He believes a peoples' party can deliver that. It cannot. It will not. As efficiency goes out the door when a small, unregulated group controls everything. Not to say our version of capitalism has anywhere near the government regulation I think it needs to reach your(and my) goals. But it is light years ahead of Paine's dreams.

RC AKA Darryl, Ron said in reply to EMichael... , January 02, 2019 at 07:51 AM
Paine's economics are insightful and useful. Paine's politics are bifurcated. Paine is as much for a progressive liberal democrat as he is for an enlightened communist dictator. Which do you think has a greater chance of actually ever existing in this century?
EMichael -> RC AKA Darryl, Ron... , January 02, 2019 at 08:03 AM
I'm all in on Paine's economics, but I believe his politics make him an opponent to ever coming up with progressive liberal democrats running the country.

All or nothing with him, and that makes it beyond hard to move towards that goal. Many in here like that. I admire them for going through their life without once ever settling for anything but perfect. I never had that opportunity.

A bunch of small steps are necessary, as the Founders insured that. Raging against those facts are immense negatives. And it is why Reps win elections.

Christopher H. said in reply to EMichael... , January 02, 2019 at 09:21 AM
lol the Founders F!@#ed up. They gave us the Senate and electoral college.
RC AKA Darryl, Ron said in reply to EMichael... , January 02, 2019 at 09:33 AM
I am largely in concurrence with you, but I do have some specific caveats.

At least in my part of the country Paine's far left politics are not representative of anything that we come into contact with in public life. Your politics are bit left of us here. I am the far left in these parts. Paine's more populous left side is barely represented by any group in my reality. So, for me, Paine is a unique curiosity reminiscent of my socialist friends from the 60's and early 70's for which I have seen no analog since the introduction of Disco and double-knit leisure suits.

The EV crowd in general is a microcosm of nerdiness rather than a microcosm of well informed constituencies of the US unrepresentative "democracy." There is nothing unsettling about it. This crowd is as normal as the characters of "Big Bang Theory."

Republicans win elections because they get the most votes. The VA voter turnout for 2018 was almost 60%, well above 2014 and 2010 midterms which were just above 40%. Most people think that Trump is the most politically divisive POTUS in history, but I think nothing in my life has done more to unify the Democratic Party given they can curb their enthusiasm about beating Trump in 2020 enough to not rip the party apart over who gets the spoils.

Turnout for POTUS election in VA has been above and sometimes well above 70% for every POTUS election since 1975 except for 2000. Turnout for VA gubernatorial elections has been between 40% and 50% for each election from 1997 up through 2017, but ran much higher before motor voter stopped the purging of voter registration rolls. VA elects state legislators in off years for statewide elections with just over 30% of voters showing up.

https://www.elections.virginia.gov/resultsreports/registration-statistics/registrationturnout-statistics/index.html

Tom aka Rusty said in reply to EMichael... , January 02, 2019 at 12:12 PM
Common sense can still be applied to politics.

Going all flaming leftist is a recipe for losing elections. We need to elect more Democrats.

EMichael -> Tom aka Rusty... , January 02, 2019 at 04:39 PM
Understand. But flaming leftist will help the working class.
RC AKA Darryl, Ron said in reply to EMichael... , January 02, 2019 at 07:44 AM
"...My point is that when you reduce the cost of doing business, or reduce the credit worthiness of a borrower, you will see greater inefficiency.

Digging holes and filling them in is one way to spend money. Building a road or a building is another.

Which would you prefer?"

[While I would prefer bridges to digging holes and filling them, my hesitation in answering this question was with the assumption that lower interest rates generate more wasteful investment, despite that I know it to be true in some contexts. Speculation is the problem more than real projects by far. Diversity among investments can be a very good thing. Failure in this context is just a consequence of innovation by trial and error, one of the more efficient means. Besides, for private investment the risk spread limits useless excursions, while the state needs conscious limits on pork perhaps, but pork is also a useful medium of political exchange. Uncle's discretionary spending is a very small pot of gold.]

EMichael -> RC AKA Darryl, Ron... , January 02, 2019 at 08:05 AM
Lower interest make business plans much easier. In doing so, risks are taken that should not be taken, thus increasing inefficiency.

This is especially true when the planners carry absolutely no financial risk themselves on a project.

Christopher H. said in reply to EMichael... , January 02, 2019 at 09:17 AM
" Many in here like that. I admire them for going through their life without once ever settling for anything but perfect. I never had that opportunity.

A bunch of small steps are necessary, as the Founders insured that. Raging against those facts are immense negatives. And it is why Reps win elections."

The New Deal.

The Great Society.

Social Security. Medicare. Medicaid.

EMichael would have argued against all of them as overreaching.

His excuse for the Democrats was that past Presidents had large majorities in Congress.

He would say the country is too conservative and racist. But they like those programs now.

Christopher H. said in reply to EMichael... , January 02, 2019 at 09:19 AM
During the golden age of social democracy during the post War period, when entrepreneurs failed they had a safety net and could try again.

EMichael has this weird puritanical streak. Just like mulp, another crank on the Interent.

He wants his failed red state family member to wallow in bitterness.

RC AKA Darryl, Ron said in reply to EMichael... , January 02, 2019 at 09:48 AM
"Lower interest make business plans much easier. In doing so, risks are taken that should not be taken, thus increasing inefficiency.

This is especially true when the planners carry absolutely no financial risk themselves on a project."

[I understood what you were going for and do not doubt that you have specific instances for which you are sure that is true. For a few years prior to 2008 then I am sure that was true, but those "animal spirits" were drunk on more than just low interest rates. There was a specific sequence of events that played out over a long period of time bringing the US economy to the precipice of financial system euphoria over the infallibility of markets. Lenders and borrowers and especially middlemen stared down into the abyss and then kept on truckin'. Then we all heard a big splat!

Now is not then. Some future now may be then again if we forget about then, but it takes a lot of stupid to get there, not just low interest rates. Taking a bit more risk, but without the stupid is how we learn from failure to achieve greater success.

RC AKA Darryl, Ron said in reply to RC AKA Darryl, Ron... , January 02, 2019 at 09:52 AM
If either the dot.com splat or the mortgage splat were not clearly visible at least three or four years before the splat then either you need a new prescription for your eye glasses or you need to step out of that fog that you were living in.
Darrell in Phoenix said in reply to RC AKA Darryl, Ron... , January 02, 2019 at 10:27 AM
"success through failure" has become a norm of American business, with the PotUS as the perfect example.

He never got into the casino, steak, wine, water, university, etc. businesses with intent on making money in those businesses. Heck, he barely breaks even on the condo and golf businesses.

He creates the towers and golf resorts to promote the name, and promotes the name to be able to lease it to doomed businesses which he starts with the intent of losing money on the leasing of his name. I suspect the most profitable thing he's ever done was "realty tv" host and having a book ghost-written in his name.

And yes, low interest rates DO create easy money, and much of it does find its way into "success through failure" investments. Why would you loan money to a business that you know was a scam just created to accumulate debt then go bust? Because you can securitize the debt and sell it off to Main Street suckers to eat the loss.

Why else "success through failure". Well, I've worked for a company that dumped a lot of money into a venture it knew was doomed long-term. Why? Because it intended to go IPO, and it needed the (unprofitable) revenue from the doomed venture to pump its price in the IPO.

I think we'd all agree that "success through failure" is terrible and wish it would go away. Problem is, it works.

RC AKA Darryl, Ron said in reply to Darrell in Phoenix... , January 02, 2019 at 12:18 PM
Regarding "Success through failure" I was thinking in terms of the dot.com boom from which sprang the broadband Internet and Amazon. Out there in Phoenix AZ where you and EMichael live things must be really crazy. Back in 70's Phoenix was the yuppy Mecca. What happened?
Darrell in Phoenix said in reply to RC AKA Darryl, Ron... , January 02, 2019 at 01:18 PM
True, not all of the dot.com was bad investment. Just most.

We got a lot of housing built during the housing boom too. Too bad most of it was 2000-3000 sqft McMansions on golf courses, 50 miles from any jobs.

"Out there in Phoenix AZ where you and EMichael live things must be really crazy."

1970 Phoenix metro had 1 million people. Today we're at 4.75 million.

Politics are a mess. Big money is pushing to constantly lower taxes, but now people are pushing back wanting more funding for schools. Surprisingly, we've passed phased in $12 minimum wage and medical marijuana (recreational failed by less than 1%), and now have split representation at the federal level indicating a move toward liberal. And yet, we'll still very Republican in the state house and go highly conservative on many other issues such as animal rights. A recent "green energy initiative" failed ugly. So, to sum it up... Pretty Liberal, but Very CONservative, with a HUGE swing vote that goes this-way-and-that in random directions and on different issues... ...but in general want low taxes, are hate big government... ...except on the things like Social Security, Medicare, Medicaid, Defense, education, transportation, police, fire, courts, justice system, boarder security, anti-terrorism, and the rest of stuff government actually spends almost all of its money on... ... but are all for getting rid of all the wasteful government that practically doesn't really exist... ... and we definitely want religious freedom, as long as that religion is Christianity and the freedom is to force their views onto others, and not allow other religions to have a place in society. Hope that clarifies what happened. RC AKA Darryl, Ron said in reply to Darrell in Phoenix... , January 03, 2019 at 07:57 AM "...1970 Phoenix metro had 1 million people. Today we're at 4.75 million... ...Hope that clarifies what happened." [In spades, Dude. THANKS!] EMichael -> RC AKA Darryl, Ron... , January 02, 2019 at 04:42 PM Adequate regulation would have stopped that. No one notices that the biggest factor in the housing bubble was bush ordering the OCC to take regulation of national banks out of the hands of the states. The bubble would have been much, much less. RC AKA Darryl, Ron said in reply to EMichael... , January 03, 2019 at 07:58 AM Oh, butt for the winged frog... Darrell in Phoenix said in reply to EMichael... , January 03, 2019 at 08:56 AM "Adequate regulation would have stopped that." The population increase? People would have to be somewhere, and unlike coastal California with those stupid oceans, bays and mountains... Phoenix has plenty of open space. 2000-3000 sqft mcmansions 50 miles from jobs? Probably true. Without the housing bubble we would have hit the wall on housing and caused massive rent spike a decade ago instead of a few years ago. With that massive rent increase then instead of now, meaning that a decade ago we would have seen the in-building of small apartments and condos that we are now getting. Net, we probably would have been better off with more in-building of smaller, multi-family units instead of massive sprawl of McMansions. RC AKA Darryl, Ron said in reply to Darrell in Phoenix... , January 03, 2019 at 09:41 AM Don't complain too much. The "massive sprawl of McMansions" is a sure sign of widespread prosperity. Here in eastern Henrico County VA we have the massive sprawl of McCracker boxes instead although not just crackers live in them. McMansions are usually on at least 1/2 acre lots, while McCracker boxes are built so close together that most of the time there was not room left for a driveway and people park on the street except that some of those streets are actually the highways to the neighboring cracker box town. On street parking is just one sign of poverty. There are also drug related shootings just like in the big city. In eastern Henrico there are only a few small McMansion developments in prime real estate overlooking the flood plain of the James River where there is any such high ground in eastern Henrico near the river. Chesterfield County across the James River has the advantage of very high ground near the James River at River's Bend, a.k.a, Meadowville, where there is plenty room for a golf course and marina as well as loads of McMansions and high-end apartment buildings. High and dry western Henrico County is where they build the McMansions along with all the exclusive high end shopping. The "Sad-eyed Lady of the Lowlands" was probably sad because her basement flooded whenever it rained:<) Darrell in Phoenix said in reply to RC AKA Darryl, Ron... , January 03, 2019 at 10:50 AM "Don't complain too much." I wasn't complaining. I was adding a tad to the "inefficiencies" discussion caused by disconnecting loan origination from loss risk. I got my piece of the giant federal government giveaway needed to clean up the mess. In 2011 I bought a 1000 sqft condo for$48K that I now have leased out for a nice cash-flow positive $600+ a month and true after-tax profit of about the same$600 a month (add $100 of the payment that is principal reduction, then subtract 22% income tax on$500 a month ($700 profit -$200 depreciation)).

If you notice the purchase price doesn't match the depreciation, yeah, I've done over $20K in additional capital improvements that increase the base including new roof, new HVAC, replaced all aluminum windows and doors with high-E, gutted and replaced the kitchen and both baths. Summer cooling bill was cut by more than half from ~$300 to ~$125 by the new windows and doors and more efficient HVAC, increasing the monthly rent accordingly. I've only been spending abut$400 of that $600 profit, letting the rest accumulate for maintenance, repairs, upgrades. Oh, I also save about$250 a month on the mortgage of my primary by locking in 3% interest rate.

Not big deals in the grand scheme, but the boom->crash->rent squeeze worked out okay for me personally.... for now.

Darrell in Phoenix said in reply to Darrell in Phoenix... , January 03, 2019 at 11:10 AM
As for the cracker houses, we got a lot of those in the 80's and 90's before the big McMansion boom.

Like these 1990s beauties with almost, but not quite enough room in the driveway to park a car without blocking the sidewalk.

https://www.zillow.com/homes/for_sale/globalrelevanceex_sort/33.540639,-112.146931,33.538696,-112.149814_rect/18_zm/

To be perfectly honest, it is exactly those kinds of houses that the Phoenix market needs a lot more of.

Switching from those to McMansions, then hardly any construction at all for 6 or 7 years, is why there is such a crunch on housing, and skyrocketing rents and house prices now.

Even now they aren't building many of those small single family homes.

They are building redevelopment/in-fill condos in downtown/near ASU in Tempe and apartments in the middle-burbs.

anne -> anne... , January 01, 2019 at 01:43 PM
https://www.nytimes.com/2018/11/14/opinion/the-tax-cut-and-the-balance-of-payments-wonkish.html

November 14, 2018

The Tax Cut and the Balance of Payments (Wonkish)
Lots of financial maneuvering, signifying nothing
By Paul Krugman

What tax cuts were supposed to do

A tax cut for corporations looks, on its face, like a big giveaway to stockholders, mainly bypassing ordinary families: of stocks held by Americans, 84 percent are held by the wealthiest 10 percent; * 35 percent of U.S. stocks are held by foreigners. **

The claim by tax cut advocates was, however, that the tax cut would be passed through to workers, because we live in an integrated global capital market. There were multiple reasons not to believe this argument in practice, but it's still worth working through its implications....

anne -> anne... , January 01, 2019 at 01:52 PM
https://www.nytimes.com/2019/01/01/opinion/the-trump-tax-cut-even-worse-than-youve-heard.html

The key point to realize is that in today's globalized corporate system, a lot of any country's corporate sector, our own very much included, is actually owned by foreigners, either directly because corporations here are foreign subsidiaries, or indirectly because foreigners own American stocks. Indeed, roughly a third of U.S. corporate profits basically flow to foreign nationals – which means that a third of the tax cut flowed abroad, rather than staying at home. This probably outweighs any positive effect on GDP growth. So the tax cut probably made America poorer, not richer.

And it certainly made most Americans poorer. While 2/3 of the corporate tax cut may have gone to U.S. residents, 84 percent of stocks are held by the wealthiest 10 percent of the population. Everyone else will see hardly any benefit....

-- Paul Krugman

Tom aka Rusty said in reply to anne... , January 02, 2019 at 12:10 PM
It will not make them poorer, but will not make many better off, there is a difference.
Tom aka Rusty said in reply to point... , January 02, 2019 at 12:08 PM
As my first tax professor said, "the best first answer to most tax questions is IT DEPENDS."

In the pro formas I have done not everyone in the middle class is getting a tax cut. Some a slight tax increase, most not too much impact at all.

We will know a lot more by April.

anne , January 01, 2019 at 12:50 PM
http://cepr.net/blogs/beat-the-press/steven-rattner-s-charts-in-the-nyt-don-t-show-he-says-they-show

December 31, 2018

Steven Rattner's Charts in the New York Times Don't Show He Says They Show
By Dean Baker

Steven Rattner used his New York Times column * to present a number of charts to show Donald Trump's failures as president. While some, like the drop in enrollments in the health care exchanges, do in fact show failure, others do not really make his case.

For example, he has a chart with a headline "paltry raise for the middle class." What his chart actually shows is that middle class wages, adjusted for inflation, fell sharply in the recession, but have been rising roughly 1.0 percent a year since 2014. They recovered their pre-recession levels in 2017 and now are almost a percentage point above the 2008 level. This is not a great story, but the picture under Trump is certainly better than under Obama. (This wasn't entirely Obama's fault, since he inherited an economy that was failing.)

The chart shows more rapid growth at the bottom of the pay ladder and a modest downturn under Trump for those at the top. By recent standards, this is not a bad picture, even if Trump does not especially deserve credit for it. (He came in with an unemployment rate that was low and falling.)

Rattner also presents as a bad sign projections for fewer Federal Reserve rate hikes. While one basis for projecting fewer rate hikes is that the economy now looks weaker for 2019 than had been thought earlier in the year (but still stronger than had been projected in 2016), another reason is that inflation is lower than expected. Economists have consistently over-estimated the impact that low unemployment would have on the inflation rate. With inflation coming in lower than projected, there is less reason for the Fed to raise rates.

Contrary to what Rattner is implying, this is a good development. It means that the unemployment rate can continue to fall and workers at the middle and the bottom of the pay ladder can continue to see real wage gains.

Rattner also shows us how growth projections for the U.S. and the world have been lowered since June of 2018. It's not clear how much Trump can be held responsible for growth in the EU (try blaming the European Commission's austerity drive) and the rest of the world, but his argument about the U.S. is pretty weak. The 2.4 percent growth projection from December 2018 is actually up 0.1 percentage point from the June projection. More importantly, it is up from a projection of 1.7 percent from January of 2017, the month Trump took office.

Then we have the chart showing the rise in the debt relative to GDP. While Rattner is right that the tax cuts to the rich were a waste of resources, the higher debt to GDP ratio is basically meaningless. (Japan's debt to GDP ratio is almost 250 percent and the current interest rate on its long-term bonds is 0.00 percent.)

If anyone is seriously concerned about the debt that the government is passing on to future generations then it is also necessary to include the rents associated with patent and copyright monopolies. These monopolies are alternative mechanisms to direct funding that the government uses to pay for services (i.e. research and creative work).

To take the most important case, suppose the government were the replace the $70 billion (0.35 percent of GDP) in patent monopoly supported research that the pharmaceutical industry conducts each year with direct funding of$70 billion. All research findings could then be placed in the public domain and new drugs would sell at generic prices.

Rattner and his crew would count the $70 billion in addition spending as an addition to the debt and deficit. However, when the industry is able to charge the public an extra$360 billion ** (1.8 percent of GDP) a year in higher drug prices due to patent monopolies and related protections, Rattner and company choose to ignore the burden. This sort of groundless debt fear mongering deserves only ridicule; it is not serious economic analysis.

Trump has done many awful things as president and threatens to do many more. But this is not a reason to adopt Trumpian tactics, the data provide plenty of grounds to attack his performance without playing games with it.

anne -> anne... , January 01, 2019 at 02:41 PM
https://fred.stlouisfed.org/graph/?g=mv7B

January 15, 2018

Real Median Weekly Earnings, * 1992-2018

* All full time wage and salary workers

(Percent change)

January 15, 2018

Real Median Weekly Earnings, * 1992-2018

* All full time wage and salary workers

(Indexed to 1992)

anne -> anne... , January 01, 2019 at 02:41 PM
https://fred.stlouisfed.org/graph/?g=mm0s

January 15, 2018

Real Median Weekly Earnings for men and women, * 1992-2018

* All full time wage and salary workers

(Percent change)

January 15, 2018

Real Median Weekly Earnings for men and women, * 1992-2018

* All full time wage and salary workers

(Indexed to 1992)

anne , January 01, 2019 at 12:50 PM
http://cepr.net/blogs/beat-the-press/e-j-dionne-provides-classic-example-of-liberals-missing-the-boat

December 31, 2018

E.J. Dionne Provides Classic Example of Liberals Missing the Boat
By Dean Baker

I often rail against liberals who wring their hands over the unfortunate folks who have been left behind by globalization and technology. E.J. Dionne gave us a classic example * of such hand-wringing in his piece today on the need to help the left behinds to keep them from becoming flaming reactionaries.

For some reason, it is difficult for many liberals to grasp the idea that the bad plight of tens of millions of middle class workers did not just happen, but rather was deliberately engineered. Longer and stronger patent and copyright protection did not just happen, it was deliberate policy. Subjecting manufacturing workers to global competition, while largely protecting doctors, dentists, and other highly paid professionals was also a policy decisions. Saving the Wall Street banks from the consequences of their own greed and incompetence was also conscious policy.

I know it's difficult for intellectuals to grasp new ideas, but if we want to talk seriously about rising inequality, then it will be necessary for them to try. (Yeah, I'm advertising my - free - book "Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer" ** again.) Anyhow, let's hope that in 2019 we can actually talk about the policies that were put in place to redistribute income upward and not just pretend that Bill Gates and his ilk getting all the money was a natural process.

Plp -> anne... , January 01, 2019 at 01:27 PM
The way forward is not taking the path that got us here in reverse till its say 1976 again

Because once there where do we go next
Where do we go from there
that doesn't by twist and turn
lead back here in another post 2008
Quagmired earth

Christopher H. said in reply to Plp... , January 01, 2019 at 01:27 PM
The Nordic countries have gone further than 1976 - and it works!

But even they have been backsliding.

They key is rising living standards for everyone. That means eradicating poverty & financial precariousness and rising incomes up the income ladder.

End the Dem's fascination with means testing. Make big programs everyone supports. Republican party needs to be destroyed as Jane Curtin said on CNN.

#### [Jan 03, 2019] Piketty's World Inequality Review- A Critical Analysis - naked capitalism

##### "... World Inequality Report ..."
###### Jan 03, 2019 | www.nakedcapitalism.com

Yves here. It's surprising to see Piketty and even more so, one of this co-authors, Gabriel Zucman, make such strong claims for tax data as a way to measure income inequality. The rich and super rich engage in tax avoidance and evasion, to the degree that Zucman has estimated that 6% of the world's wealth is hidden. First, that wealth was hidden to avoid paying taxes on it and/or to hide its criminal origins (such as looting governments). Second, the income on hidden wealth is also by nature hidden.

By James K. Galbraith, Lloyd M. Bentsen Jr. Chair in Government and Business Relations, University of Texas at Austin. Originally published at the Institute of New Economic Thinking website

Thomas Piketty and his colleagues [1] have produced a new exposition of their empirical work, entitled the World Inequality Report 2018 (hereafter: WIR). Their purpose is to showcase the exploration of income and wealth inequalities begun with the World Top Incomes Database (Atkinson and Piketty 2010) and theorized in Piketty's epic Capital in the XXI Century (2014) . In particular the WIR concentrates on the presentation of measures and evidence; the stated goal is to inform a "deliberative process" with "more rigorous and transparent information on income and wealth" than has been available to date. In a review article published on-line and open access in Development and Change on December 24, 2018, I initiate this "deliberative process" by examining the WIR data and the claims made for it.

The ground-breaking, systematic and transparent methodology on which the WIR rests is largely the use of tax records–specifically income tax records–mined to show the income shares of tranches of the income-earning population: top one percent, top ten percent, next forty percent, and bottom fifty percent are the usual divisions. These Piketty and his colleagues argue are more complete, comprehensive, and comparable across countries and through time than the generally-used alternative, which is household or person-based surveys.

The WIR authors write disparagingly of the "Gini index" -- the inequality measure most prevalent in such surveys -- which they find too "technical" and not sufficiently intuitive. But they also object to survey methods: "The main problem with household surveys, however, is that they usually rely entirely on self-reported information about income and wealth. As a consequence, they misrepresent top income and wealth levels, and therefore overall inequality." (p. 29) This sweeping critique carries on for several pages, brushing aside a body of research comprising thousands of papers and millions of survey observations, including the work of the Luxembourg Income Studies, the World Bank, Eurostat, the Economic Commission for Latin America, and the United States Census Bureau among scores of national data-collection agencies. It is a repudiation of what almost every previous researcher has done in this field over fifty years.

But are tax data really better? Where survey and tax measures both exist, and report different results, should one systematically prefer a measure based on taxes? The answer depends in part on the quality of the survey measures. But it also must depend in part on the quality, consistency, length and continuity of the national tax record, and in particular of the income tax. The WIR authors acknowledge that tax data have limits, in particular they cannot cover income and wealth hidden from tax authorities in tax havens. But the question of the quality of tax records goes much further than this.

My new essay examines the question from three points of view: the coverage provided by tax data in the world economy, the consistency of tax data with other sources of information on income inequality, and the peculiarities of tax-based measurement of inequality in the United States. It goes on to make a comparison with measures drawn from other forms of administrative data -- specifically payroll records, used by the University of Texas Inequality Project -- which are generally more consistent with records of inequality measured in household surveys than are the WIR's tax records.

In brief summary, the review shows that by comparison with payroll and survey data, available records from tax files are relatively sparse, and biased toward wealthier countries and those that were once British colonies, which imposed income tax. It shows that tax data are far less consistent with survey and payroll records than are the latter two with each other. And it shows that even within the United States, a country with good tax records by world standards, changes in tax law distort the WIR's measures of changes in the top income shares, while a misunderstanding of the nature of low-income tax filers in the US leads to a dramatic but nonsensical claim that the earnings of the bottom 50 percent of Americans have "collapsed" in recent decades.

Overall, the review casts doubt on claims by the authors of the World Inequality Report to have produced major advances in the study of world economic inequality, and documents that many of the findings touted in the Report as new and unprecedented have in fact been reported in the literature for years, even decades in some cases.

[1] The credited co-authors are Facundo Alvaredo, Lucas Chancel, Thomas Piketty, Emmanuel Saez and Gabriel Zucman.

Figure 1 Top One Percent Shares from the World Inequality Database, showing an unacknowledged data break due to the US Tax Reform Act of 1986. Adjusting the data for the change in the tax definition of income would show that the US top share tracks the UK and Canada very closely. Low numbers for France and Italy are likely due to inferior tax recording of high income persons, not an underlying condition of less inequality.

I do not see your and the essay's point about tax evasion impacting actual reported income more harshly than surveys. Even in cases where answers to surveys are required by law, the penalties and effort undertaken by enforcement agencies are going to be several orders of magnitude greater in cases of tax evasion compared to incorrect survey answers. Furthermore income taxes are frequently automated which makes correct or at least some reporting the default case while the default state of surveys is no data at all. Only by taking action is any data generated. While it is theoreticaly possible that surveys are more accurate because the incentive of lower taxes is also stronger, the logic argument given here is not self-evident and actual empirical data is needed for prove.

The critic regarding change in tax reporting over time is quite correct altough I am far from certain that neither survey methods nor questions haven't changed over the last century. A feature not talked about at all is samplesize which always favours actual tax data over surveys given that everyone with an income over a small threshold must pay taxes.

The only empirical evidence provided in the essay is self-referential. If one proxy (survey data) is faulty correlation between it and another proxy (payroll records) does not prove that the first proxy is correct because it remains possible that both proxies have the same deficiencies and are therefore correlated – instead of both being a good approximation of reality.

This is not to say that the essay must be wrong or Piketty et al's assertions must be right, but with only the information provided here a lack of evidence still exists in my opinion.

CanCyn , January 3, 2019 at 12:36 pm

this line towards the end: " nonsensical claim that the earnings of the bottom 50 percent of Americans have "collapsed" in recent decades." is nonsensical itself. Anyone who doesn't believe that low and middle income earners' incomes have collapsed is living in a very opaque bubble, head firmly planted up *ss.

I earned $12.00 per hour in retail with only a high school education in the early 1980s. I'm Canadian but I don't think the two countries are so different in this regard. In 2018 dollars, according to the Bank of Canada inflation calculator that is$26.00 per hour!! Do you know anyone in retail with only a high school education earning $26.00 per hour today? My husband, again, no high school, was making twice that amount in a steel mill in the eighties. Know anyone earning almost$60 per hour in any kind of factory work today? I sure don't. That includes the people who work in that factory now, it is mostly precarious contract work, at much lower wages, the union having been busted long ago

Further, I went back to school in the late 80s and ended with my Masters in Library Science, my first full-time job in the early 90s had me earning the 1990ish equivalent of that $12.00 per hour, things were already going south. It took me quite a few more years to outpace that 1980 retail wage. My husband and I are living proof that wages have collapsed. I don't care how anecdotal that is, I know the truth, just by looking around and talking to people. It is beyond frustrating to have to argue against this stuff. CanCyn , January 3, 2019 at 2:57 pm one correction, that should be "only high school" not "no high school" with regard to my husband's education. One question for the author. How do you account for the fact that payroll records, at least as I understand them, generally omit capital gains which is where the upper income generally get most of their real wealth. Stock buybacks and share disbursements are not generally considered "payroll" as I understand it. The advantage of tax is that it should, at least in theory, show money received by individuals rather than just money sent out in one category. There's a lot more to inequality than money,,, #### [Dec 27, 2018] The Yoda of Silicon Valley by Siobhan Roberts ##### Highly recommended! ##### Although he is certainly a giant, Knuth will never be able to complete this monograph - the technology developed too quickly. Three volumes came out in 1963-1968 and then there was a lull. January 10, he will be 81. At this age it is difficult to work in the field of mathematics and system programming. So we will probably never see the complete fourth volume. ##### This inability to finish the work he devoted a large part of hi life is definitely a tragedy. The key problem here is that now it is simply impossible to cover the whole area of ​​system programming and related algorithms for one person. But the first three volumes played tremendous positive role for sure. ##### Also he was distracted for several years to create TeX. He needed to create a non-profit and complete this work by attracting the best minds from the outside. But he is by nature a loner, as many great scientists are, and prefer to work this way. ##### His other mistake is due to the fact that MIX - his emulator was too far from the IBM S/360, which became the standard de-facto in mid-60th. He then realized that this was a blunder and replaced MIX with more modem emulator MIXX, but it was "too little, too late" and it took time and effort. So the first three volumes and fragments of the fourth is all that we have now and probably forever. ##### Not all volumes fared equally well with time. The third volume suffered most IMHO and as of 2019 is partially obsolete. Also it was written by him in some haste and some parts of it are are far from clearly written ( it was based on earlier lectures of Floyd, so it was oriented of single CPU computers only. Now when multiprocessor machines, huge amount of RAM and SSD hard drives are the norm, the situation is very different from late 60th. It requires different sorting algorithms (the importance of mergesort increased, importance of quicksort decreased). He also got too carried away with sorting random numbers and establishing upper bound and average run time. The real data is almost never random and typically contain sorted fragments. For example, he overestimated the importance of quicksort and thus pushed the discipline in the wrong direction. ##### Notable quotes: ##### "... 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. ..." ##### "... 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. Nadine NYC Dec. 17 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 23, 2018] Trump proposes cutting food stamps for over 700,000 people just before Christmas by Matthew Rozsa ###### Dec 20, 2018 | www.salon.com President Donald Trump is planning on using his executive powers to cut food stamps for more than 700,000 Americans. The United States Department of Agriculture is proposing that states should only be allowed to waive a current food stamps requirement -- namely, that adults without dependents must work or participate in a job-training program for at least 20 hours each week if they wish to collect food stamps for more than three months in a three-year period -- on the condition that those adults live in areas where unemployment is above 7 percent, according to The Washington Post . Currently the USDA regulations permit states to waive that requirement if an adult lives in an area where the unemployment rate is at least 20 percent greater than the national rate. In effect, this means that roughly 755,000 Americans would potentially lose their waivers that permit them to receive food stamps. The current unemployment rate is 3.7 percent. The Trump administration's decision to impose the stricter food stamp requirements through executive action constitutes an end-run around the legislative process. Although Trump is expected to sign an$870 billion farm bill later this week -- and because food stamps goes through the Agriculture Department, it contains food stamp provisions -- the measure does not include House stipulations restricting the waiver program and imposing new requirements on parents with children between the ages of six and 12. The Senate version ultimately removed those provisions, meaning that the version being signed into law does not impose a conservative policy on food stamps, which right-wing members of Congress were hoping for.

"Congress writes laws, and the administration is required to write rules based on the law," Sen. Debbie Stabenow, D-Mich., told The New York Times (Stabenow is the top Democrat on the Senate's agriculture committee). "Administrative changes should not be driven by ideology. I do not support unilateral and unjustified changes that would take food away from families."

Matthew Rozsa is a breaking news writer for Salon. He holds an MA in History from Rutgers University-Newark and is ABD in his PhD program in History at Lehigh University. His work has appeared in Mic, Quartz and MSNBC.

#### [Dec 17, 2018] Withouth the USSR as a countervailing force the level of inequality in Western societies will always rise to the level on which riots will start and then will fluctuates around this level.

###### Dec 17, 2018 | discussion.theguardian.com

AmyInNH -> Riever , 23 Aug 2016 10:00

Swing between extremes, however, consistent in US history, economic predatory dependence on free/ultra cheap labor with no legal rights. Current instantiation, offshored and illegal and "temporary" immigrant labor. Note neither party in the US is proposing "immigration reform" is green card upon hire. Ds merely propose green card for time served for those over X number of years donated as captive/cheap.
The entitled to cheap/captive now want it in law, national laws and trade agreements.
All privilege/no responsibilities, including taxes.
Doesn't scale. 1929 says so, 2008 says so.
CivilDiscussion , 23 Aug 2016 10:25
Liberals, the Left, Progressives -- whatever you want to call them suffer from a basic problem. They don't work together and have no common goals. As the article stated they complain but offer no real solutions that they can agree on. Should we emphasize gay pride or should we emphasize good-paying jobs and benefits with good social welfare benefits? Until they can agree at least on priorities they will never reform the current corrupt system -- it is too entrenched. Even if the Capitalist Monstrosity we have now self-destructs as the writer indicates -- nothing good will replace it until the Left get their act together.
AmyInNH -> Juillette , 23 Aug 2016 10:16
"Lesser of two evils" needs to go on the burn pile.
Encumbent congress needs a turn over.
Not showing up to vote is not okay. If people can't think of someone they want to write-in, "none of the above" is a protest vote. Not voting is silence, which equals consent.
Local elections, beat back Koch/ALEC, hiding on ballots as "Libertarian". "Privatize everything" is their mantra, so they can further profitize via inescapeable taxes, while gutting "regulation" - safety and market integrity, with no accountability.
Corporation 101: limited liability. While means we are left holding the bag. As in bailout - $125 billion in 1990, up to$7.7 trillion in 2008.
Dave_P -> Isiodore , 23 Aug 2016 09:59
Anything the Economist presents as the overriding choice is probably best relegated to one factor among many. I respect Milanovic's work, but he's seeing things from where we are now. Remember we've seen populist surges come and go from the witch-burnings and religious panics of the 17th century to 1890s Bryanism and the 1930s far right, and each time they've yielded to a more articulate vision, though the last time it cost sixty million dead - not something we want to see repeated. This time it's hard because dissent still clings to a "post-ideological" delusion that those on top never succumbed to. But change will come as what I'd term "post-rational" alternatives fail to deliver. Let's hope it's sooner rather than later.
willpodmore , 23 Aug 2016 09:53
"Brexit, too, was primarily a working-class revolt." Thank you Martin, at least someone writing in the Guardian has got the point!
We voted against the EU's unelected European Central Bank, its unelected European Commission, its European Court of Justice, its Common Agricultural Policy and its Common Fisheries Policy.
We voted against the EU's treaty-enshrined 'austerity' (= depression) policies, which have impoverished Greece, Spain, Portugal and Italy.
We voted against the EU/US Transatlantic Trade and Investment Partnership, which would privatise all our public services, which threatens all our rights, and which discriminates against the countries of Africa, Asia and Latin America.
We voted against the EU's tariffs against African farmers' cheaper produce.
We opposed the City of London Corporation, the Institute of Directors, the CBI, the IMF, Citigroup, Goldman Sachs, JP Morgan, Citigroup and Morgan Stanley, which all wanted us to stay in the EU.
We voted against the EU's undemocratic trilogue procedure and its pro-austerity Semester programme. We voted to leave this undemocratic, privatisation-enforcing, austerity-enforcing body.
AmyInNH -> ciaofornow , 23 Aug 2016 10:39
Bailout was because that was public savings, pensions, 401ks, etc. the banks were playing with, and lost. Bailout is billing all of us for it. Bad, letting the banks/financial "services" not only survive but continue the exact same practices.

Or

##### "... In 2011-2012, 50% of bachelor's degree recipients from for-profit institutions borrowed more than $40,000 and about 28% of associate degree recipients from for-profit institutions borrowed more than$30,000 (College Board, 2015a). ..."
###### Dec 12, 2018 | www.amazon.com

Despite tthe fact that necoliberalism brings poor economic growth, inadequate availability of jobs and career opportunities, and the concentration of economic and social rewards in the hands of a privileged upper class resistance to it, espcially at universities, remain weak to non-existant.

The first sign of high levels of dissatisfaction with neoliberalism was the election of Trump (who, of course, betrayed all his elections promises, much like Obma before him). As a result, the legitimation of neoliberalism based on references to the efficient
and effective functioning of the market (ideological legitimation) is
exhausted while wealth redistribution practices (material legitimation) are
not practiced and, in fact, considered unacceptable.

Despite these problems, resistance to neoliberalism remains weak.
Strategics and actions of opposition have been shifted from the sphere of
labor to that of the market creating a situation in which the idea of the
superiority and desirability of the market is shared by dominant and
oppositional groups alike. Even emancipatory movements such as women,
race, ethnicity, and sexual orientation have espoused individualistic,
competition-centered, and meritocratic views typical of ncolibcral dis-
courses. Moreover, corporate forces have colonized spaces and discourses
that have traditionally been employed by oppositional groups and move-
ments. However, as systemic instability' continues and capital accumulation
needs to be achieved, change is necessary. Given the weakness of opposi-
tion, this change is led by corporate forces that will continue to further
their interests but will also attempt to mitigate socio-economic contra-
dictions. The unavailability of ideological mechanisms to legitimize
ncolibcral arrangements will motivate dominant social actors to make
marginal concessions (material legitimation) to subordinate groups. These
changes, however, will not alter the corporate co-optation and distortion of
discourses that historically defined left-leaning opposition. As contradic-
tions continue, however, their unsustainability will represent a real, albeit
difficult, possibility for anti-neoliberal aggregation and substantive change.

Connolly (2016) reported that a poll shows that some graduated student loan borrowers would willingly go to extremes to pay off outstanding student debt. Those extremes include experiencing physical pain and suffering and even a reduced lifespan. For instance, 35% of those polled would take one year off life expectancy and 6.5% would willingly cut off their pinky finger if it meant ridding themselves of the student loan debt they currently held.

Neoliberalism's presence in higher education is making matters worse for students and the student debt crisis, not better. In their book Structure and Agency in the Neoliberal University, Cannan and Shumar (2008) focus their attention on resisting, transforming, and dismantling the neoliberal paradigm in higher education. They ask how can market-based reform serve as the solution to the problem neoliberal practices and policies have engineered?

It is like an individual who loses his keys at night and who decides to look only beneath the street light. This may be convenient because there is light, but it might not be where the keys are located. This metaphorical example could relate to the student debt crisis. What got us to where we are (escalating tuition costs, declining state monies, and increasing neoliberal influence in higher education) cannot get us out of the SI.4 trillion problem. And yet this metaphor may, in fact, be more apropos than most of us on the right, left, or center are as yet seeing because we mistakenly assume the market we have is the only or best one possible.

As Lucille (this volume) strives to expose, the systemic cause of our problem is "hidden in plain sight," right there in the street light for all who look carefully enough to see. We only have to realize that the emperor has no clothes and reveal this reality. If and when a critical mass of us do, systemic change in our monetary exchange relations can and, we hope, will become our funnel toward a sustainable and socially, economically, and ecologically just future where public education and democracy can finally become realities rather than merely ideals.

Indeed, the approach our money-dependent and money-driven legislators and policymakers have employed has been neoliberal in form and function, and it will continue to be so unless we help them to see the light or get out of the way. This book focuses on the $1.4+ trillion student debt crisis in the United States. It doesn't share hard and fast solutions per se. Rather, it addresses real questions (and their real consequences). Are collegians overestimating the economic value of going to college? What are we, they, and our so-called elected leaders failing or refusing to sec and why? This critically minded, soul-searching volume shares territory with, yet pushes beyond, that of Akers and Chingos (2016), Baum (2016), Goldrick-Rab (2016), Graebcr (2011), and Johannscn (2016) in ways that we trust those critically minded authors -- and others concerned with our mess of debts, public and private, and unfulfilled human potential -- will find enlightening and even ground-breaking. ... ... ... In the meantime, college costs have significantly increased over the past fifty years. The average cost of tuition and fees (excluding room and board) for public four-year institutions for a full year has increased from 52,387 (in 2015 dollars) for the 1975-1976 academic year, to 59,410 for 2015-2016. The tuition for public two-year colleges averaged$1,079 in 1975-1976 (in 2015 dollars) and increased to $3,435 for 2015-2016. At private non-profit four-year institutions, the average 1975-1976 cost of tuition and fees (excluding room and board) was$10,088 (in 2015 dollars), which increased to $32,405 for 2015-2016 (College Board, 2015b). The purchasing power of Pell Grants has decreased. In fact, the maximum Pell Grants coverage of public four-year tuition and fees decreased from 83% in 1995-1996 to 61% in 2015-2016. The maximum Pell Grants coverage of private non-profit four-year tuition and fees decreased from 19% in 1995-1996 to 18% in 2015-2016 (College Board, 2015a). ... ... .... ... In 2013-2014, 61% of bachelor's degree recipients from public and private non-profit four-year institutions graduated with an average debt of$16,300 per graduate. In 2011-2012, 50% of bachelor's degree recipients from for-profit institutions borrowed more than $40,000 and about 28% of associate degree recipients from for-profit institutions borrowed more than$30,000 (College Board, 2015a).

Rising student debt has become a key issue of higher education finance among many policymakers and researchers. Recently, the government has implemented a series of measures to address student debt. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (2005) was passed, which barred the discharge of all student loans through bankruptcy for most borrowers (Collinge, 2009). This was the final nail in the bankruptcy coffin, which had begun in 1976 with a five-year ban on student loan debt (SLD) bankruptcy and was extended to seven years in 1990. Then in 1998, it became a permanent ban for all who could not clear a relatively high bar of undue hardship (Best 6c Best, 2014).

By 2006, Sallie Mae had become the nation's largest private student loan lender, reporting loan holdings of $123 billion. Its fee income collected from defaulted loans grew from$280 million in 2000 to $920 million in 2005 (Collinge, 2009). In 2007, in response to growing student default rates, the College Cost Reduction Act was passed to provide loan forgiveness for student loan borrowers who work full-time in a public service job. The Federal Direct Loan will be forgiven after 120 payments were made. This Act also provided other benefits for students to pay for their postsecondary education, such as lowering interest rates of GSL, increasing the maximum amount of Pell Grant (though, as noted above, not sufficiently to meet rising tuition rates), as well as reducing guarantor collection fees (Collinge, 2009). In 2008, the Higher Education Opportunity Act (2008) was passed to increase transparency and accountability. This Act required institutions that are participating in federal financial aid programs to post a college price calculator on their websites in order to provide better college cost information for students and families (U.S. Department of Education |U.S. DoE|, 2015a). Due to the recession of 2008, the American Opportunity Tax Credit of 2009 (AOTC) was passed to expand the Hope Tax Credit program, in which the amount of tax credit increased to 100% for the first$2,000 of qualified educational expenses and was reduced to 25% of the second $2,000 in college expenses. The total credit cap increased from$1,500 to 2,500 per student. As a result, the federal spending on education tax benefits had a large increase since then (Crandall-Hollick, 2014), benefits that, again, are reaped only by those who file income taxes. #### [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 ##### Highly recommended! ##### Creation of docility is what neoliberal education is about. Too specialized slots, as if people can't learn something new. Look at requirements for the jobs at monster or elsewhere: they are so specific that only people with previous exactly same job expertise can apply. Especially oputragious are requernets posted by requetng firm. There is something really Orvallian in them. That puts people into medieval "slots" from which it is difficult to escape. ##### I saw recently the following requirements for a sysadmin job: "Working knowledge of: Perl, JavaScript, PowerShell, BASH Script, XML, NodeJS, Python, Git, Cloud Technologies: ( AWS, Azure, GCP), Microsoft Active Directory, LDAP, SQL Server, Structured Query Language (SQL), HTML, Windows OS, RedHat(Linux), SaltStack, Some experience in Application Quality Testing." ##### When I see such job posting i think that this is just a covert for H1B hire: there is no such person on the planet who has "working knowledge" of all those (mostly pretty complex) technologies. It is clearly designed to block potential candidates from applying. ##### 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 Linux Administrator at Adept Solutions clinton, NJ Responsibilities  Good work experience in Puppet with L2/L3 Linux administration skills Ability to manage UNIX/Linux configuration management using Puppet Ability to understand the existing Puppet environment, modules, manifests, classes and troubleshoot them Ability to classify and manage different UNIX/Linux variants in Puppet Work experience with GIT Good work experience in Redhat Satellite environment Work experience in blade / enclosure hardware systems Volume manager Administration (VERITAS Volume Manager/Linux LVM) File system Administration (VERTIAS File system/ VERITAS Cluster FS/ext3/ext4) Troubleshooting the OS performance related issues Providing the production support, maintenance, administration & Implementation Upgrading the System/HBA ´s firmware Nice To Have Oracle Virtualization Manager (LDOM)/L2 Linux Administration Skills Administration of Solaris Zones/Containers EMC power path software Administration Administering the VERITAS Cluster AIX Server Administration Knowledge / work experience in IBM PowerHA / HMC / LPAR and VIOs Mandatory Functional Skills IT-IS Linux Administrator with Puppet Skillset Veritas Volume Manager, Veritas Cluster Solaris Administration (L2/L3), Solaris Zones/Containers AIX Administration with PowerHA knowledge Total Experience Required 5 to 7 Plus years of experience in Linux Administration with indepth knowledge in Puppet • Unix Midrange Engineer at ACE Insured, Whitehouse Station, NJ Position Summary: rd level support of Chubb's UNIX, storage, and backup and recovery systems. • Knowledge, Skills and Competencies: #### [Dec 08, 2018] Americans don't "meekly allow fincancial crimes," No, Americans hugely endorse them. More students keep enrolling in all the biz schools all the time -- much more than any other field of study -- health care being a distant second ##### As long as RICO statute is not applied to big banks that current situation will continue. ##### And under neoliberalism it will be never be applied. Universities will continue helping big banks to recruit new talent. Like in poor neibophood gang leaders recruit street fighter. ##### Notable quotes: ##### "... The students not only continue to flock to the amorality skills courses, but also put themselves into mega-debt by student loans to turn themselves not just imaginatively and ethically over to the corporate idolatries, but also to do another double whammy on themselves. ..." ###### Dec 08, 2018 | www.alternet.org kyushuphil -> Neo Conned 6 years ago , People don't "meekly allow these crimes," Neo. Americans hugely endorse them. The students not only continue to flock to the amorality skills courses, but also put themselves into mega-debt by student loans to turn themselves not just imaginatively and ethically over to the corporate idolatries, but also to do another double whammy on themselves. They accept the servitude of massive student loan debt, and ensure by prolonged interest payments on that debt to keep bloating all the most cynically immoral of high finance. And then all the other departments of corporate academe have seen how smoothly work the most rank of corporate habits to ensure most mediocrity for most rank careerisms -- and all have only increased departmentalism protocols over recent years. Tenure now means nothing more than max award for most-narrowed specialist minds and for all most-max conformists in all those niched fields. Nuthin' "meek" about all this, Neo. The corporate disease, the cubicle culture, the deference to plutocracy, the reduced literacy, the tracking to numbers -- all has been only steroided since Citizens United quite flagrantly legally underlined what most genteel in corporate ed have been doing for years. willymack > kyushuphil • 6 years ago Well said, and sadly, TRUE. zonmoy > kyushuphil • 6 years ago and how have students been pushed into those programs and the problems pushed on them by the corporate crooks that own everything including our government. #### [Dec 06, 2018] Understanding Society Sexual harassment in academic contexts ###### Dec 06, 2018 | understandingsociety.blogspot.com Sexual harassment in academic contexts Sexual harassment of women in academic settings is regrettably common and pervasive, and its consequences are grave. At the same time, it is a remarkably difficult problem to solve. The "me-too" movement has shed welcome light on specific individual offenders and has generated more awareness of some aspects of the problem of sexual harassment and misconduct. But we have not yet come to a public awareness of the changes needed to create a genuinely inclusive and non-harassing environment for women across the spectrum of mistreatment that has been documented. The most common institutional response following an incident is to create a program of training and reporting, with a public commitment to investigating complaints and enforcing university or institutional policies rigorously and transparently. These efforts are often well intentioned, but by themselves they are insufficient. They do not address the underlying institutional and cultural features that make sexual harassment so prevalent. The problem of sexual harassment in institutional contexts is a difficult one because it derives from multiple features of the organization. The ambient culture of the organization is often an important facilitator of harassing behavior -- often enough a patriarchal culture that is deferential to the status of higher-powered individuals at the expense of lower-powered targets. There is the fact that executive leadership in many institutions continues to be predominantly male, who bring with them a set of gendered assumptions that they often fail to recognize. The hierarchical nature of the power relations of an academic institution is conducive to mistreatment of many kinds, including sexual harassment. Bosses to administrative assistants, research directors to post-docs, thesis advisors to PhD candidates -- these unequal relations of power create a conducive environment for sexual harassment in many varieties. In each case the superior actor has enormous power and influence over the career prospects and work lives of the women over whom they exercise power. And then there are the habits of behavior that individuals bring to the workplace and the learning environment -- sometimes habits of masculine entitlement, sometimes disdainful attitudes towards female scholars or scientists, sometimes an underlying willingness to bully others that finds expression in an academic environment. (A recent issue of the Journal of Social Issues ( link ) devotes substantial research to the topic of toxic leadership in the tech sector and the "masculinity contest culture" that this group of researchers finds to be a root cause of the toxicity this sector displays for women professionals. Research by Jennifer Berdahl, Peter Glick, Natalya Alonso, and more than a dozen other scholars provides in-depth analysis of this common feature of work environments.) The scope and urgency of the problem of sexual harassment in academic contexts is documented in excellent and expert detail in a recent study report by the National Academies of Sciences, Engineering, and Medicine ( link ). This report deserves prominent discussion at every university. The study documents the frequency of sexual harassment in academic and scientific research contexts, and the data are sobering. Here are the results of two indicative studies at Penn State University System and the University of Texas System: The Penn State survey indicates that 43.4% of undergraduates, 58.9% of graduate students, and 72.8% of medical students have experienced gender harassment, while 5.1% of undergraduates, 6.0% of graduate students, and 5.7% of medical students report having experienced unwanted sexual attention and sexual coercion. These are staggering results, both in terms of the absolute number of students who were affected and the negative effects that these experiences had on their ability to fulfill their educational potential. The University of Texas study shows a similar pattern, but also permits us to see meaningful differences across fields of study. Engineering and medicine provide significantly more harmful environments for female students than non-STEM and science disciplines. The authors make a particularly worrisome observation about medicine in this context: The interviews conducted by RTI International revealed that unique settings such as medical residencies were described as breeding grounds for abusive behavior by superiors. Respondents expressed that this was largely because at this stage of the medical career, expectation of this behavior was widely accepted. The expectations of abusive, grueling conditions in training settings caused several respondents to view sexual harassment as a part of the continuum of what they were expected to endure. (63-64) The report also does an excellent job of defining the scope of sexual harassment. Media discussion of sexual harassment and misconduct focuses primarily on egregious acts of sexual coercion. However, the authors of the NAS study note that experts currently encompass sexual coercion, unwanted sexual attention, and gender harassment under this category of harmful interpersonal behavior. The largest sub-category is gender harassment: "a broad range of verbal and nonverbal behaviors not aimed at sexual cooperation but that convey insulting, hostile, and degrading attitudes about" members of one gender ( Fitzgerald, Gelfand, and Drasgow 1995 , 430). (25) The "iceberg" diagram (p. 32) captures the range of behaviors encompassed by the concept of sexual harassment. (See Leskinen, Cortina, and Kabat 2011 for extensive discussion of the varieties of sexual harassment and the harms associated with gender harassment.) The report emphasizes organizational features as a root cause of a harassment-friendly environment. By far, the greatest predictors of the occurrence of sexual harassment are organizational. Individual-level factors (e.g., sexist attitudes, beliefs that rationalize or justify harassment, etc.) that might make someone decide to harass a work colleague, student, or peer are surely important. However, a person that has proclivities for sexual harassment will have those behaviors greatly inhibited when exposed to role models who behave in a professional way as compared with role models who behave in a harassing way, or when in an environment that does not support harassing behaviors and/or has strong consequences for these behaviors. Thus, this section considers some of the organizational and environmental variables that increase the risk of sexual harassment perpetration. (46) Some of the organizational factors that they refer to include the extreme gender imbalance that exists in many professional work environments, the perceived absence of organizational sanctions for harassing behavior, work environments where sexist views and sexually harassing behavior are modeled, and power differentials (47-49). The authors make the point that gender harassment is chiefly aimed at indicating disrespect towards the target rather than sexual exploitation. This has an important implication for institutional change. An institution that creates a strong core set of values emphasizing civility and respect is less conducive to gender harassment. They summarize this analysis in the statement of findings as well: Organizational climate is, by far, the greatest predictor of the occurrence of sexual harassment, and ameliorating it can prevent people from sexually harassing others. A person more likely to engage in harassing behaviors is significantly less likely to do so in an environment that does not support harassing behaviors and/or has strong, clear, transparent consequences for these behaviors. (50) So what can a university or research institution do to reduce and eliminate the likelihood of sexual harassment for women within the institution? Several remedies seem fairly obvious, though difficult. • Establish a pervasive expectation of civility and respect in the workplace and the learning environment • Diffuse the concentrations of power that give potential harassers the opportunity to harass women within their domains • Ensure that the institution honors its values by refusing the "star culture" common in universities that makes high-prestige university members untouchable • Be vigilant and transparent about the processes of investigation and adjudication through which complaints are considered • Create effective processes that ensure that complainants do not suffer retaliation • Consider candidates' receptivity to the values of a respectful, civil, and non-harassing environment during the hiring and appointment process (including research directors, department and program chairs, and other positions of authority) • Address the gender imbalance that may exist in leadership circles As the authors put the point in the final chapter of the report: Preventing and effectively addressing sexual harassment of women in colleges and universities is a significant challenge, but we are optimistic that academic institutions can meet that challenge--if they demonstrate the will to do so. This is because the research shows what will work to prevent sexual harassment and why it will work. A systemwide change to the culture and climate in our nation's colleges and universities can stop the pattern of harassing behavior from impacting the next generation of women entering science, engineering, and medicine. (169) #### [Nov 29, 2018] Literature, language, history are essential for a truly cultured human. ##### Notable quotes: ##### "... They are from the social sciences like Political Science or International Relations which are empty of real content. ..." ##### "... They throw in sometimes some "game theory" to give that an aura of "science", but most of it is BS. ..." ##### "... Tucker Carlson is the only media individual left that is brave enough to state the truth. So by implication the United States has zero democracy when it comes to our foreign policy. ..." ###### Nov 29, 2018 | turcopolier.typepad.com Being on the affected side as a historian please let me add, that the students' majority studies microhistory, family, company, or even family members' personal events that is, which adds very little to our understanding of the world. It is overly and openly supported currently in most universities for a number of reasons. This is why obviously ideologically biased works about major correspondences such as Piketty's or Niall Ferguson's, not to mention that young Israeli guy (Yair??) has so much effect. Because basically they are the only ones, or at least the ones with the chance to publish, who take the great effort of choosing the harder way and making the necessary research. There are too few willing to take the harder path. Scientification, or should I say natural scientification of social sciences also does not help, because it promotes the 'publish or perish' principle. But social sciences aren't like natural sciences, where X hours in a laboratory or experimenting yields surely X or X/2 publications. And on the top of that Marxist thinkers and intelligentsia, cast away from all meaningful positions to universities in the 50's and 60's fearing a communist influence have completely overtaken the higher education in the Western Hemisphere. In the Eastern European countries they managed to keep their positions. To sum it up while most of your criticism is valid, international relations e.g. has its merit, but are taught mostly by neoliberals and Marxists, with the known results. smoothieX12 -> Pat Lang , 17 hours ago They are from the social sciences like Political Science or International Relations which are empty of real content. Fully concur. They throw in sometimes some "game theory" to give that an aura of "science", but most of it is BS. If, just in case, I am misconstrued as fighting humanities field--I am not fighting it. Literature, language, history are essential for a truly cultured human. When I speak about "humanities" I personally mean namely Political "Science". Eric Newhill -> Pat Lang , 18 hours ago Sir, I stand corrected on the humanities into govt assertion. I do tend to get humanities and social sciences jumbled in my numbers/cost/benefit based thinking. I am open to people telling me how to do tasks that they have more experience performing and that I might need to know about. And I have curiosities about people's experiences and perspectives on how the world of men works, but I'm not so concerned about the world of men that I lose my integrity or soul or generally get sucked into their reality over my own. Of course that's just me. Someone like Trump seeks approval and high rank amongst men. So, yes, I guess he is susceptible; though I still think somewhat less than others. This is evident in how he refuses to follow the conventions and expectations of what a president should look and act like. He is a defiant sort. I like that about him. Of course needing to be defiant is still a need and therefore a chink in his armor. Pat Lang Mod -> Eric Newhill , 17 hours ago He is in thrall to the Israelis, their allies, the neocons, political donors and the popular media. An easy mark for skilled operators. Harlan Easley -> Pat Lang , 14 hours ago I agree with you and I believe their influence has deepen over the two years. The only pro neocon policy he ran on was regime change in Iran. Terrible idea no doubt. The vote was either potential regime change in Iran or a dangerous escalation with Russia in Syria. I voted for more time. He seemed to have some sense on Syria and Russia at the time. Of course Clinton was promising Apocalypse Now. You've stated the Neocon's have insinuated themselves into both parties. R2P and such. They basically control the foreign policy of both parties due to control by donors, organizational control of DNC, RNC, the moronic narrative, think tanks, media, probably security services, etc. Tucker Carlson is the only media individual left that is brave enough to state the truth. So by implication the United States has zero democracy when it comes to our foreign policy. As far as I can tell the United States policy toward Russia continues toward escalation. Two current examples being the absurd Mueller "investigation" into collusion and the Ukraine provocation in the Sea of Azov. Are we heading into the last war? Richard Higginbotham -> Pat Lang , 18 hours ago Engineer here, "worked" on myself and not even by very skilled people. Manipulative people are hard to counteract, if you're not manipulative yourself the thought process is not intuitive. If you spend most of your life solving problems, you think its everyone's goal. As I've gotten older I've only solidified my impression that as far as working and living outside of school, the best "education" to have would be history. Preferably far enough back or away to limit any cultural biases. I'm not sure that college classes would fill the gap though. Any advice to help the "marks" out there? Mark Logan -> Richard Higginbotham , 10 hours ago I'll pitch in with a suggestion for those who are for whatever reason not fond of reading: An old history education series called The Western Tradition. Eugene Weber. A shrewd old guy who was interested in motivations which drove our history and culture. Will get your kids solid A's in history if nothing else, if you can get them hooked on it. Insightful narrative as opposed to dry facts helps retention. There are much worse starting points. Moreover, the most of books which I believe constitute a canon of sorts are mentioned and points made in them brought to bear. Leviathan, The Prince, Erasmus, how they affected general thought, which makes the viewer want to read them. Re-reading TE Lawrence at the moment. What to watch a "pro" work? Scary good, he was. TTG -> Pat Lang , 10 hours ago To this day, my favorite college course was "The Century of Darwin" taught by Dr. Brown in the history department of RPI in 1973. Dr. Brown was a bespectacled, white haired little man who looked like everyone's idea of a history professor. The course examined the history of scientific discovery, evolving and competing religious and scientific ideas leading up to the general acceptance of Darwin's works. It was a history of everything course, an intellectually exhilarating experience. I still have the textbooks. I heartedly recommend those books. "Darwin's Century" by Loren Eiseley came out in 1958 and was reprinted in 2009 with a new forward by Stephan Bertman. "The Death of Adam" by John Green first came out in 1960 and was reprinted in 1981. "Genesis and Geology" by Charles C. Gillespie came out in 1951. My paperback edition was published in 1973 and cost2.45 new.

English Outsider -> Pat Lang , an hour ago
Colonel - Boswell's life of Johnson. A giant of a man seen through the eyes of a clever and observant pygmy. And they both know it.

That makes it an odd book, that interplay between the two. It's also the ultimate in tourism. One is dumped in the middle of eighteenth century London and very soon it becomes a second home.

For a long time that's all I got out of the book. Johnson himself emerges only slowly. A true intellectual giant with a flawless acuity of perception, an elephantine memory, and the gift of turning out the perfect exposition, whether a long argument or one of his famous pithy comments, is the starting point only.

As a person he can easily be read as a slovenly bully, at one time even as an unapologetic hired gun turning out the propaganda of the day. He was subject to long fits of depression alternating with periods of great industry. As he got older the industry fell away and he spent much of his time in the coffee house. It was there, often, that Boswell gathered up the materials - a fragment here, a disquisition there - that allow us to see through to Johnson's outlook.

It was an outlook, or one could call it a philosophy of life, that could not be more needed at this time of frantic and one sided ideological war.

It was no tidily worked-up outlook. Intensely patriotic yet ever conscious of the failings of his country. Honorable yet accepting that he lived at a time of great corruption. Loyal yet always yearning after an older dispensation. Robust common sense but fully recognizing the Transcendent. Narrowly prejudiced yet open to other cultures, recognizing their equal validity and worth while remaining rooted in his own.

It's an outlook that today would be despised by many because, as far as I can tell, he had no ideology, no millenarian solution into which all problems can be jammed. Merely a broad and humane normality and a recognition that, ultimately, each pilgrim must find his own way.

#### [Nov 28, 2018] Colonel Lang on importance of taking elective courses in Humanities (using Trump as a counterexample)

##### "... Unlike your brother a good recruiting case officer would never ignore you except maybe at the beginning as a tease. That also works with women that you want personally. ..."
###### Nov 28, 2018 | turcopolier.typepad.com

Yes. Trump says that is how he "rolls." The indicators that this is true are everywhere. He does not believe what the "swampies" tell him. He listens to the State Department, the CIA, DoD, etc. and then acts on ill informed instinct and information provided by; lobbies, political donors, foreign embassies, and his personal impressions of people who have every reason to want to deceive him. As I wrote earlier he sees the world through an entrepreneurial hustler's lens.

He crudely assigns absolute dollar values to policy outcomes and actions which rarely have little to do with the actual world even if they might have related opposed to the arena of contract negotiations.

He evidently learned about balance sheets at the Wharton School of Business at the University of Pennsylvania and wishes to apply the principle of the bottom line to everything. I will guess that he resisted taking elective courses in the Humanities as much as he could believing them to be useless. That is unfortunate since such courses tend to provide context for present day decisions.

I have known several very rich businessmen of similar type who sent their children to business school with exactly that instruction with regard to literature, history, philosophy, etc. From an espionage case officer's perspective he is an easy mark. If you are regular contact with him all that is needed to recruit him is to convince him that you believe in the "genius" manifested in his mighty ego and swaggering bluster and then slowly feed him what you want him to "know."

That does not mean that he has been recruited by someone or something but the vulnerability is evident. IMO the mistake he has made in surrounding himself with neocons and other special pleaders, people like Pompeo and Bolton is evidence that he is very controllable by the clever and subtle. pl

Col. Lang, I appreciate your insight on his personality which you have written about often and dead on for awhile.
The Cage , 3 hours ago
I have an aged wire haired Jack Russel Terrier. He is well past his time. He is almost blind, and is surely deaf. In his earlier days he was a force of nature. He still is now, but only in the context of food. He is still obsessed with it at every turn. Food is now his reality and he will not be sidetracked or otherwise distracted by any other stimuli beyond relieving himself when and where he sees fit. He lives by his gut feeling and damn everything else. There is no reason, no other calculus for him. Trump's trusting his "gut" is just about as simplistic and equally myopic. My dog is not a tragedy, he shoulders no burden for others and when he gets to the point of soiling himself or is in pain, he will be held in my arms and wept over for the gift he has been when the needle pierces his hide. Trump, well, he is a tragedy. He does shoulder a responsibility to millions and millions and for those to follow after he is long dead and gone. His willful ignorance in the face of reason and science reminds me of the lieutenant colonel of 2/7 Cav. you spoke of at LZ Buttons.

The number of folks who will pay the price for this are legion in comparison. His accomplices and "advisers" as you intone, will be deemed worthy of a Nuremburg of sorts when viewed in posterity. "Character must under grid talent or talent will cave in." His gut stove pipes him as a leader. I love and respect my dog. He follows his gut, because that is his end-state. It's honest. I will mourn the passing of one and and already rue the day the other was born.

Pat Lang Mod -> The Cage , 2 hours ago
Were you at LZ Buttons?
exSpec4Chuck , 4 hours ago
Just after I looked at this post I went to Twitter and this came up. I don't know how long it's been since Jeremy Young was in grad school but a 35% decline drop in History dissertations is shocking even if it's over a span of 3-4 decades. View Hide
Pat Lang Mod -> exSpec4Chuck , 4 hours ago
Yes. It's either STEM or Social Sciences these days and that is almost as bad as Journalism or Communications Arts. Most media people are Journalism dummies.
VietnamVet , 4 hours ago
Colonel,

Donald Trump is a Salesman. He stands out in the Supreme Court photo: https://www.washingtonpost....

He survived as a New York City Boss. He has the same problem as Ronald Reagan. He believes the con. In reality, since the restoration of classical economics, sovereign states are secondary to corporate plutocrats. Yes, he is saluted. He has his finger on the red button. But, he is told what they want them to hear. There are no realists within a 1000 yards of him. The one sure thing is there will be a future disaster be it climate change, economic collapse or a world war. He is not prepared for it.

Pat Lang Mod -> VietnamVet , 4 hours ago
You are a one trick pony. There are other forces that are effective in addition to plutocrats and they are mostly bad.
JerseyJeffersonian , 5 hours ago
Falling under the sway of those who know the price of everything, but the value of nothing is an unenviable estate. The concentrated wisdom discoverable through a clear-eyed study of the humanities can serve as a corrective, and if one is lucky, as a prophylaxis against thinking of this type.

I am commending study of the humanities as historically understood, not the "humanities" of contemporary academia, which is little better than atheistic materialism of the Marxist variety, out of which any place for the genuinely spiritual has been systematically extirpated in favor of the imposition of some sort of sentimentalism as an ersatz substitute.

Eric Newhill , 6 hours ago
My response to flattery, even if subtle, is, "Yeah? Gee thanks. Now please just tell me what you're really after". I'd think any experienced man should have arrived at the same reaction at least by the time he's 35. Ditto trusting anyone in an atmosphere where power and money are there for the taking by the ambitious and clever. As for a balance sheet approach, IMO, there is a real need for that kind of thinking in govt. Perhaps a happy mix of it + a humanities based perspective.

A lot of people come out of humanities programs and into govt with all kinds of dopey notions; like R2P, globalism, open borders, etc.

Pat Lang Mod -> Eric Newhill , 6 hours ago
That is what the smart guys all say before really skilled people work on them. Eventually they ask you to tell them what is real. The Humanities thing stung? I remember the engineer students mocking me at VMI over this.
smoothieX12 -> Pat Lang , 4 hours ago
They are from the social sciences like Political Science or International Relations which are empty of real content.

Fully concur. They throw in sometimes some "game theory" to give that an aura of "science", but most of it is BS. If, just in case, I am misconstrued as fighting humanities field--I am not fighting it. Literature, language, history are essential for a truly cultured human. When I speak about "humanities" I personally mean namely Political "Science".

Grazhdanochka -> smoothieX12 , 2 hours ago
As I wrote earlier the Issue in those Courses is they are actually pure and concentrated Fields...... Political Science, International Relations are ambigious enough that a candidate can appeal to many Sectors and it is accepted, expected they will be competent.... Whether that be Governance/Diplomacy, Business, Travel etc...

Thus if you have no Idea what you want - those Fields are good to study, learning relatively little.....

If you know what you want - you have a Path.... You can study more concentrated Fields, but you damn well have to hope there is a Job at the end of the Rainbow (Known at least a couple People who studied only to be told almost immediately - you will not find Jobs domestically)

Pat Lang Mod -> Grazhdanochka , an hour ago
No. PS and the other SS are artificial constructs in our universities that posit views of mankind that are false.
Pat Lang Mod -> smoothieX12 , 3 hours ago
"Political Science" as we understand it here is not among the Humanities. It is pseudo science invented in the 19th Century.
Pat Lang Mod -> Pat Lang , 3 hours ago
The Humanities as they have been known. https://en.wikipedia.org/wi...
Eric Newhill -> Pat Lang , 5 hours ago
Sir, I stand corrected on the humanities into govt assertion. I do tend to get humanities and social sciences jumbled in my numbers/cost/benefit based thinking. I am open to people telling me how to do tasks that they have more experience performing and that I might need to know about. And I have curiosities about people's experiences and perspectives on how the world of men works, but I'm not so concerned about the world of men that I lose my integrity or soul or generally get sucked into their reality over my own. Of course that's just me. Someone like Trump seeks approval and high rank amongst men. So, yes, I guess he is susceptible; though I still think somewhat less than others. This is evident in how he refuses to follow the conventions and expectations of what a president should look and act like. He is a defiant sort. I like that about him. Of course needing to be defiant is still a need and therefore a chink in his armor.
Pat Lang Mod -> Eric Newhill , 3 hours ago
He is in thrall to the Israelis, their allies, the neocons, political donors and the popular media. An easy mark for skilled operators.
Richard Higginbotham -> Pat Lang , 5 hours ago
Engineer here, "worked" on myself and not even by very skilled people. Manipulative people are hard to counteract, if you're not manipulative yourself the thought process is not intuitive. If you spend most of your life solving problems, you think its everyone's goal. As I've gotten older I've only solidified my impression that as far as working and living outside of school, the best "education" to have would be history. Preferably far enough back or away to limit any cultural biases. I'm not sure that college classes would fill the gap though.
Any advice to help the "marks" out there?
Pat Lang Mod -> Richard Higginbotham , 3 hours ago
David Solomon -> Pat Lang , 2 hours ago
How about William H. McNeill's Rise of the West.
Pat Lang Mod -> David Solomon , 2 hours ago
Yup. More suggestions please you all.
dilbertdogbert , 5 hours ago
I started developing my BS filter when I recognized that when my older brother was being nice, he wanted something. His normal approach was to ignore me.
Pat Lang Mod -> dilbertdogbert , 5 hours ago
Unlike your brother a good recruiting case officer would never ignore you except maybe at the beginning as a tease. That also works with women that you want personally.

#### [Nov 19, 2018] Student loans. Now there's a naked fleecing scam by the moneychangers. High interest, zero risk, no forgiveness. A great racket if you can get it, like Medical Insurance, profiteering guaranteed by Obamacare.

##### "... Student loans. Now there's a naked fleecing scam by the moneychangers. High interest, zero risk, no forgiveness. A great racket if you can get it, like Medical Insurance, profiteering guaranteed by Obamacare. ..."
###### Nov 19, 2018 | www.nakedcapitalism.com

Doug Hillman , , November 16, 2018 at 10:58 am

Wonder the same about bankruptcy. IIRC, think the moneychangers' bankruptcy "reform" under the Bush II regime turned it into a virtual debtors' prison, excluding several kinds of debt from discharge, including student loans.

Student loans. Now there's a naked fleecing scam by the moneychangers. High interest, zero risk, no forgiveness. A great racket if you can get it, like Medical Insurance, profiteering guaranteed by Obamacare.

Hudson perceives things that should be but aren't obvious -- about money, power, and freedom. The love of money may be the root of all evil, but it's ultimately a weapon wielded in an insatiable lust for power, absolute, utterly corrupt power, the ownership and enslavement of others. Inequality is not a flaw of rigged-market cannibalism; it's a feature, a feature those at the top of the food chain have no intention of "fixing". The US empire, imo, is the nadir of this evil, a kleptocracy dependent on perpetual mass-murder. The paradox is, they may be more enslaved to their narcotic than anyone.

"Freedom's just another word for nothin' left to lose." Janis Joplin

#### [Nov 07, 2018] Stuxnet 2.0? Iran claims Israel launched new cyber attacks

###### Nov 07, 2018 | arstechnica.com

President Rouhani's phone "bugged," attacks against network infrastructure claimed.

Sean Gallagher - 11/5/2018, 5:10 PM

Last week, Iran's chief of civil defense claimed that the Iranian government had fought off Israeli attempts to infect computer systems with what he described as a new version of Stuxnet -- the malware reportedly developed jointly by the US and Israel that targeted Iran's uranium-enrichment program. Gholamreza Jalali, chief of the National Passive Defense Organization (NPDO), told Iran's IRNA news service, "Recently, we discovered a new generation of Stuxnet which consisted of several parts... and was trying to enter our systems."

On November 5, Iran Telecommunications Minister Mohammad-Javad Azari Jahromi accused Israel of being behind the attack, and he said that the malware was intended to "harm the country's communication infrastructures." Jahromi praised "technical teams" for shutting down the attack, saying that the attackers "returned empty-handed." A report from Iran's Tasnim news agency quoted Deputy Telecommunications Minister Hamid Fattahi as stating that more details of the cyber attacks would be made public soon.

Jahromi said that Iran would sue Israel over the attack through the International Court of Justice. The Iranian government has also said it would sue the US in the ICJ over the reinstatement of sanctions. Israel has remained silent regarding the accusations .

The claims come a week after the NPDO's Jalali announced that President Hassan Rouhani's cell phone had been "tapped" and was being replaced with a new, more secure device. This led to a statement by Iranian Supreme Leader Ayatollah Ali Khamenei, exhorting Iran's security apparatus to "confront infiltration through scientific, accurate, and up-to-date action."

While Iran protests the alleged attacks -- about which the Israeli government has been silent -- Iranian hackers have continued to conduct their own cyber attacks. A recent report from security tools company Carbon Black based on data from the company's incident-response partners found that Iran had been a significant source of attacks in the third quarter of this year, with one incident-response professional noting, "We've seen a lot of destructive actions from Iran and North Korea lately, where they've effectively wiped machines they suspect of being forensically analyzed."

SymmetricChaos </> , 2018-11-05T17:16:46-05:00 I feel like governments still think of cyber warfare as something that doesn't really count and are willing to be dangerously provocative in their use of it. ihatewinter , 2018-11-05T17:27:06-05:00 Another day in international politics. Beats lobbing bombs at each other. +13 ( +16 / -3 ) fahrenheit_ak </> , 2018-11-05T17:46:44-05:00

corey_1967 wrote:
The twin pillars of Iran's foreign policy - America is evil and Wipe Israel off the map - do not appear to be serving the country very well.

They serve Iran very well, America is an easy target to gather support against, and Israel is more than willing to play the bad guy (for a bunch of reasons including Israels' policy of nuclear hegemony in the region and historical antagonism against Arab states).
revision0 , 2018-11-05T17:48:22-05:00 Israeli hackers?

Go on!

Quote:

Israeli hackers offered Cambridge Analytica, the data collection firm that worked on U.S. President Donald Trump's election campaign, material on two politicians who are heads of state, the Guardian reported Wednesday, citing witnesses.

https://www.haaretz.com/israel-news/isr ... -1.5933977

Quote:

For 20M, These Israeli Hackers Will Spy On Any Phone On The Planet https://www.forbes.com/sites/thomasbrew ... -ulin-ss7/ Quote: While Israelis are not necessarily number one in technical skills -- that award goes to Russian hackers -- Israelis are probably the best at thinking on their feet and adjusting to changing situations on the fly, a trait essential for success in a wide range of areas, including cyber-security, said Forzieri. "In modern attacks, the human factor -- for example, getting someone to click on a link that will install malware -- constitutes as much as 85% of a successful attack," he said. http://www.timesofisrael.com/israeli-ha ... ty-expert/ +5 ( +9 / -4 ) ihatewinter </> , 2018-11-05T17:52:15-05:00 dramamoose wrote: thorpe wrote: The pro-Israel trolls out in front of this comment section... You don't have to be pro-Israel to be anti-Iran. Far from it. I think many of Israel's actions in Palestine are reprehensible, but I also know to (rightly) fear an Islamic dictatorship who is actively funding terrorism groups and is likely a few years away from having a working nuclear bomb, should they resume research (which the US actions seem likely to cause). The US created the Islamic Republic of Iran by holding a cruel dictator in power rather than risking a slide into communism. We should be engaging diplomatically, rather than trying sanctions which clearly don't work. But I don't think that the original Stuxnet was a bad idea, nor do I think that intense surveillance of what could be a potentially very dangerous country is a bad one either. If the Israelis (slash US) did in fact target civilian infrastructure, that's a problem. Unless, of course, they were bugging them for espionage purposes. Agree. While Israel is not about to win Humanitarian Nation of the year Award any time soon, I don't see it going to Iran in a close vote tally either. #### [Nov 05, 2018] The Limits of Neoliberalism (Theory, Culture Society) by William Davies ##### Notable quotes: ##### "... In this book, I provide a somewhat cumbersome definition of neoliberalism and a pithier one, both of which inform the argument running throughout this book. The cumbersome one is as follows: 'the elevation of marked-based principles and techniques of evaluation to the level of state-endorsed norms'. ..." ###### Nov 05, 2018 | www.amazon.com In this book, I provide a somewhat cumbersome definition of neoliberalism and a pithier one, both of which inform the argument running throughout this book. The cumbersome one is as follows: 'the elevation of marked-based principles and techniques of evaluation to the level of state-endorsed norms'. What this intends to capture is that, while neoliberal states have extended and liberated markets in certain areas (for instance, via privatisation and anti-union legislation), the neoliberal era has been marked just as much by the reform of non-market institutions, so as to render them market-like or business-like. Consider how competition is deliberately injected into socialised healthcare systems or universities. Alternatively, how protection of the environment is pursued by calculating a proxy price for natural public goods, in the expectation that businesses will then value them appropriately (Fourcade, 2011). It is economic calculation that spreads into all walks of life under neoliberalism, and not markets as such. This in turn provides the pithier version: neoliberalism is 'the disenchantment of politics by economics'. The crisis of neoliberalism has reversed this ordering. 2008 was an implosion of technical capabilities on the part of banks and financial regulators, which was largely unaccompanied by any major political or civic eruption, at least until the consequences were felt in terms of public sector cuts that accelerated after 2010, especially in Southern Europe. The economic crisis was spookily isolated from any accompanying political crisis, at least in the beginning. The eruptions of 2016 therefore represented the long-awaited politicization and publicisation of a crisis that, until then, had been largely dealt with by the same cadre of experts whose errors had caused it in the first place. Faced with these largely unexpected events and the threat of more, politicians and media pundits have declared that we now need to listen to those people 'left behind by globalization'. Following the Brexit referendum, in her first speech as Prime Minister, Theresa May made a vow to the less prosperous members of society, 'we will do everything we can to give you more control over your lives. When we take the big calls, we'll think not of the powerful, but you.' This awakening to the demands and voices of marginalized demographics may represent a new recognition that economic policy cannot be wholly geared around the pursuit of 'national competitiveness' in the 'global race', a pursuit that in practice meant seeking to prioritise the interests of financial services and mobile capital. It signals mainstream political acceptance that inequality cannot keep rising forever. But it is still rooted in a somewhat economistic vision of politics, as if those people 'left behind by globalisation' simply want more material wealth and opportunity', plus fewer immigrants competing for jobs. What this doesn't do is engage with the distinctive political and cultural sociology of events such as Brexit and Trump, which are fuelled by a spirit of rage, punishment and self-punishment, and not simply by a desire to get a slightly larger slice of the pie. This is where, 1 think, we need to pay close attention to a key dimension of neoliberalism, which 1 focus on at length in this book, namely competition. One of my central arguments here is that neoliberalism is not simply reducible to 'market fundamentalism', even if there are areas (such as financial markets) where markets have manifestly attained greater reach and power since the mid1970s. Instead, the neoliberal state takes the principle of competition and the ethos of competitiveness (which historically have been found in and around markets), and seeks to reorganise society around them. Quite how competition and competitiveness are defined and politically instituted is a matter for historical and theoretical exploration, which is partly what The Limits of Neoliberalism seeks to do. But at the bare minimum, organising social relations in terms of 'competition' means that individuals, organisations, cities, regions and nations are to be tested in terms of their capacity to out-do each other. Not only that, but the tests must be considered fair in some way, if the resulting inequalities are to be recognised as legitimate. When applied to individuals, this ideology is often known as 'meritocracy''. The appeal of this as a political template for society is that, according to its advocates, it involves the discovery of brilliant ideas, more efficient business models, naturally talented individuals, new urban visions, successful national strategies, potent entrepreneurs and so on. Even if this is correct (and the work of Thomas Piketty on how wealth begets wealth is enough to cast considerable doubt on it) there is a major defect: it consigns the majority of people, places, businesses and institutions to the status of'losers'. The normative and existential conventions of a neoliberal society stipulate that success and prowess are things that are earned through desire, effort and innate ability, so long as social and economic institutions are designed in such a way as to facilitate this. But the corollary of this is that failure and weakness are also earned: when individuals and communities fail to succeed, this is a reflection of inadequate talent or energy on their part. This has been critically noted in how 'dependency' and 'welfare' have become matters of shame since the conservative political ascendency of the 1980s. But this is just one example of how a culture of obligatory competitiveness exerts a damaging moral psychology, not only in how people look down on others, but in how they look down on themselves. A culture which valorises 'winning' and 'competitiveness' above all else provides few sources of security or comfort, even to those doing reasonably well. Everyone could be doing better, and if they're not, they have themselves to blame. The vision of society as a competitive game also suggests that anyone could very quickly be doing worse. Under these neoliberal conditions, remorse becomes directed inwards, producing the depressive psychological effect (or what Freud termed 'melancholia') whereby people search inside themselves for the source of their own unhappiness and imperfect lives (Davies, 2015). Viewed from within the cultural logic of neoliberalism, uncompetitive regions, individuals or communities are not just 'left behind by globalisation', but are discovered to be inferior in comparison to their rivals, just like the contestants ejected from a talent show. Rising household indebtedness compounds this process for those living in financial precarity, by forcing individuals to pay for their own past errors, illness or sheer bad luck (Davies, Montgomerie & Wallin, 2015). In order to understand political upheavals such as Brexit, we need to perform some sociological interpretation. We need to consider that our socio-economic pathologies do not simply consist in the fact that opportunity and wealth are hoarded by certain industries (such as finance) or locales (such as London) or individuals (such as the children of the wealthy), although all of these things are true. We need also to reflect on the cultural and psychological implications of how this hoarding has been represented and justified over the past four decades, namely that it reflects something about the underlying moral worth of different populations and individuals. One psychological effect of this is authoritarian attitudes towards social deviance: Brexit and Trump supporters both have an above-average tendency to support the death penalty, combined with a belief that political authorities are too weak to enforce justice (Kaufman, 2016). However, it is also clear that psychological and physical pain have become far more widespread in neoliberal societies than has been noticed by most people. Statistical studies have shown how societies such as Britain and the United States have become afflicted by often inexplicable rising mortality rates amongst the white working class, connected partly to rising suicide rates, alcohol and drug abuse (Dorling, 2016). The Washington Post identified close geographic correlations between this trend and support for Donald Trump (Guo, 2016). In sum, a moral-economic system aimed at identifying and empowering the most competitive people, institutions and places has become targeted, rationally or otherwise, by the vast number of people, institutions and places that have suffered not only the pain of defeat but the punishment of defeat for far too long. NEOLIBERALISM: DEAD OR ALIVE? The question inevitably arises, is thus thing called 'neoliberalism' now over? And if not, when might it be and how would we know? In the UK, the prospect of Brexit combined with the political priority of reducing immigration means that the efficient movement of capital (together with that of labour) is being consciously impeded in a way that would have been unthinkable during the 1990s and early 2000s. 1'he re-emergence of national borders as obstacles to the flow of goods, finance, services and above all people, represents at least an interruption in the vision of globalisation that accompanied the heyday of neoliberal policy making between 1989-2008. If events such as Brexit signal the first step towards greater national mercantilism and protectionism, then we may be witnessing far more profound transformations in our model of political economy, the consequences of which could become very ugly. Before we reach that point, it is already possible to identify a reorientation of national economic policy making away from some core tenets of neoliberal doctrine. One of the main case studies of this book is antitrust law and policy, which has been a preoccupation for neoliberal intellectuals, reformers and lawyers ever since the 1930s. The rise of the Chicago School view of competition (which effectively granted far greater legal rights to monopolists, while also being tougher on cartels) in the American legal establishment from the 1970s onwards, later repeated in the European Commission, meant that market commitments to neoliberal policy goals is still less than likely. Free trade areas such as NAETA, policies designed to attract and please mobile capital, the search for global hegemony surrounding international markets (as opposed to naked, mercantilist self-interest) may then continue for a few more years. But the collapse of legitimacy or popularity of these agendas will not be reversed. Meanwhile, the inability of the Republican Party to defend these policies any longer signals the ultimate divorce between the political and economic wings of neoliberalism: the conservative coalition that came into being as Keynesianism declined post-1968, and which got Ronald Reagan to power, no longer functions in its role of rationalising and de-politicising economic policy making. If neoliberalism is the 'disenchantment of politics by economics', then economics is no longer performing its role in rationalising public life. Politics is being re-enchanted, by images of nationhood, of cultural tradition, of'friends' against enemies, ot race ana religion, une ot me many political miscalculations mat lea to Brexit was to under-estimate how many UK citizens would vote for the first time in their lives, enthralled by the sudden sovereign power that they had been granted in the polling booth, which was entirely unlike the ritual of representative democracy with a first-past-the-post voting system that renders most votes irrelevant. The intoxication of popular power and of demagoguery is being experienced in visceral ways for the first time since 1968, or possibly longer. Wendy Brown argues that neoliberalism is a 'political rationality'' that was born in direct response to Fascism during the 1930s and '40s (Brown, 2015). While it would be an exaggeration to say that the end of neoliberalism represents the re-birth of Fascism, clearly there were a number of existential dimensions of'the political' that the neoliberals were right to fear, and which we should now fear once more. While there is plenty of evidence to suggest that 2016 is a historic turning point indeed as I've argued here, possibly the second 'book-mark' in the crisis of neoliberalism we need also to recognise how the seeds of this recent political rupture were sown over time. Indeed, we can learn a lot about policy paradigms from the way they' go into decline, for they always contain, tolerate and even celebrate the very activities that later overwhelm or undermine them. Clearly, the 2008 financial crisis was triggered by activities in the banking sector that were not fundamentally different from those which had been viewed as laudable for the previous 20 years. Equally, as we witness the return of mercantilism, protectionism, nationalism and charismatic populism, we need to remember the extent to which neoliberalism accommodated some of this, up to a point. The second major case study in this book, in addition to anti-trust policy, is of strategies for 'national competitiveness'. The executive branch of government has traditionally been viewed as a problem from the perspective of economic liberalism, seeing as powerful politicians will instinctively seek to privilege their own territories vis-a-vis others. This is the threat of mercantilism, which can spin into resolutely anti-liberal policies such as trade tariffs and the subsidisation of indigenous industries and 'national champions'. These forms of mercantilism may now be returning, however, the logic of neoliberalism was never quite as antipathetic to them as orthodox market liberals might have been. Instead, I suggest in Chapter 4, rather than simply seek to thwart or transcend nationalist politics, neoliberalism seizes and reimagines the nation as one competitive actor amongst many, in a global contest for 'competitiveness', as evaluated by business gurus such as Michael Porter and think tanks such as the World Economic Eorum. To be sure, these gurus and think tanks have never been anything but hostile to protectionism; but nevertheless, they have encouraged a form of mild nationalism as the basis for strategic thinking in economic policy. As David Harvey has argued, 'the neoliberal state needs nationalism of a certain sort to survive': it draws on aspects of executive power and nationalist sentiment, in order to steer economic activity towards certain types of competitive strategies, culture and behaviours and away from others (Harvey, 2005: 85). There is therefore a deep-lying tension within the politics of neoliberalism between a 'liberal' logic, which seeks to transcend geography, culture and political difference, and a more contingent, 'violent' logic that seeks to draw on the energies of nationhood and combat, in the hope of diverting them towards competitive, entrepreneurial production. These two logics are in conflict with each other, but the story I tell in this book is of how the latter gradually won out over the long history of neoliberal thought and policy making. Where the neoliberal intellectuals of the 1930s had a deep commitment to liberal ideals, which they believed the market could protect, the rise of the post-war Chicago School of economics and the co-option of neoliberal ideas by business lobbies and conservatives, meant that (what 1 term) the 'liberal spirit' was gradually lost. There is thus a continuity at work here, in the way that the crisis of neoliberalism has played out. Written in 2012-13, the book suggests that neoliberalism has now entered a 'contingent' state, in which various failures of economic rationality are dealt with through incorporating an ever broader range of cultural and political resources. The rise of behavioural economics, for example, represents an attempt to preserve a form of market rationality in the face of crisis, by incorporating expertise provided by psychologists and neuroscientists. A form of 'neo-communitarianism' emerges, which takes seriously the role of relationships, environmental conditioning and empathy in the construction of independent, responsible subjects. This remains an economistic logic, inasmuch as it prepares people to live efficient, productive, competitive lives. But by bringing culture, community and contingency within the bounds of neoliberal rationality, one might see things like behavioural economics or 'social neuroscience' and so on as early symptoms of a genuinely post-liberal politics. Once governments (and publics) no longer view economics as the best test of optimal policies, then opportunities for post-liberal experimentation expand rapidly, with unpredictable and potentially frightening consequences. It was telling that, when the British Home Secretary, Amber Kudd, suggested in October 2016 that companies be compelled to publicly list their foreign workers, she defended this policy as a 'nudge'. The Limits of Neoliberalism is a piece of interpretive sociology. It starts from the recognition that neoliberalism rests on claims to legitimacy, which it is possible to imagine as valid, even for critics of this system. Inspired by Luc Boltanski, the book assumes that political-economic systems typically need to offer certain limited forms of hope, excitement and fairness in order to survive, and cannot operate via domination and exploitation alone. For similar reasons, we might soon find that we miss some of the normative and political dimensions of neoliberalism, for example the internationalism that the IiU was founded to promote and the cosmopolitanism that competitive markets sometimes inculcate. There may be some elements of neoliberalism that critics and activists need to grasp, refashion and defend, rather than to simply denounce: this book's Afterword offers some ideas of what this might mean. But if the book is to be read in a truly post-neoliberal world, 1 hope that in its Interpretive aspirations, it helps to explain what was internally and normalively coherent about the political economy known as 'neoliberalism', but also why the system really had no account of its own preconditions or how to preserve them adequately. The attempt to reduce all of human life to economic calculation runs up against limits. A political rationality that fails to recognise politics as a distinctive sphere of human existence was always going to be dumbfounded, once that sphere took on its own extra-economic life. As Bob Dylan sang to Mr Jones, so one might now say to neoliberal intellectuals or technocrats: 'something is happening here, but you don't know what it is'. ... ... ... Most analyses of neoliberalism have focused on its commitment to 'free markets, deregulation and trade. I shan't discuss the validity of these portrayals here, although some have undoubtedly exaggerated the similarities between 'classical' nineteenth-century liberalism and twentieth-century neoliberalism. The topic addressed here is a different one the character of neoliberal authority, on what basis does the neoliberal state demand the right to be obeyed, if not on substantive political grounds? To a large extent, it is on the basis of particular economic claims and rationalities, constructed and propagated by economic experts. The state does not necessarily (or at least, not always) cede power to markets, but comes to justify its decisions, policies and rules in terms that are commensurable with the logic of markets. Neoliberalism might therefore be defined as the elevation of market-based principles and techniques of evaluation to the level of state-endorsed norms (Davies, 2013: 37). The authority of the neoliberal state is heavily dependent on the authority of economics (and economists) to dictate legitimate courses of action. Understanding that authority and its present crisis requires us to look at economics, economic policy experts and advisors as critical components of state institutions. Since the banking crisis of 2007-09, public denunciations of 'inequality' have increased markedly. These draw on a diverse range of moral, critical, theoretical, methodological and empirical resources. Marxist analyses have highlighted growing inequalities as a symptom of class conflict, which neoliberal policies have greatly exacerbated (Harvey, 2011; Therborn, 2012). Statistical analyses have highlighted correlations between different spheres of inequality', demonstrating how economic inequality influences social and psychological wellbeing (Wilkinson & Pickett, 2009). Data showing extreme concentrations of wealth have led political scientists to examine the US political system, as a tool through which inequality is actively increased (Hacker & Pierson, 2010). Emergent social movements, such as Occupy, draw a political dividing line between the '99%' and the '1%' who exploit them. Political leaders and public intellectuals have adopted the language of'fairness' in their efforts to justify and criticize the various policy interventions which influence the distribution of economic goods (e.g. Hutton, 2010). It is important to recognize that these critiques have two quite separate targets, although the distinction is often blurred. Firstly, there is inequality that exists within reasonably delineated and separate spheres of society. This means that there are multiple inequalities, with multiple, potentially incommensurable measures. The inequality that occurs within the market sphere is separate from the inequality that occurs within the cultural sphere, which is separate from the inequality' that occurs within the political sphere, and so on. Each sphere can either unwelcome politically, or impractical (Davies, 2013). Hayek's support for the welfare state, Simons' commitment to the nationalization of key industries, the ordo-liberal enthusiasm for the 'social market' demonstrate that the early neoliberals were offering a justification for what Walzer terms 'monopoly' (separate inequalities in separate spheres) and not 'dominance' (the power of one sphere over all others). As the next chapter explores, it was Coasian economics (in tandem with the Chicago School) that altered this profoundly. The objective perspective of the economist implicitly working for a university or state regulator would provide the common standard against which activity could be judged. Of course economics does not replace the price system, indeed economics is very often entangled with the price system (Callon, 1998; Caliskan, 2010), but the a priori equality of competitors becomes presumed, as a matter of economic methodology, which stipulates that all agents are endowed with equal psychological capacities of calculation. It is because this assumption is maintained when evaluating all institutions and actions that it massively broadens the terrain of legitimate competition, and opens up vast, new possibilities for legitimate inequality and legitimate restraint. Walzerian dominance is sanctioned, and not simply monopoly. The Coasian vision of fair competition rests on an entirely unrealistic premise, namely that individuals share a common capacity' to calculate and negotiate, rendering intervention by public authorities typically unnecessary: the social reality of lawyers' fees is alone enough to undermine this fantasy. Yet in one sense, this is a mode of economic critique that is imbued with the 'liberal spirit' described earlier. It seeks to evaluate the efficiency of activities, on the basis of the assumed equal rationality of all, and the neutrality of the empirical observer. Like Coase, Schumpeter facilitates a great expansion of the space and time in which the competitive process takes place. Various 'social' and 'cultural' resources become drawn into the domain of competition, with the goal being to define the rules that all others must play by. Monopoly is undoubtedly the goal of competitiveness. But unlike Coase's economics, Schumpeter's makes no methodological assumption regarding the common rationality' of all actors. Instead, it makes a romantic assumption regarding the inventive power of some actors (entrepreneurs), and the restrictive routines of most others. Any objective judgements regarding valid or invalid actions will be rooted in static methodologies or rules. Entrepreneurs have no rules, and respect no restraint. They seek no authority or validation for what they do, but are driven by a pure desire to dominate. In this sense their own immanent authority comes with a 'violent threat', which is endorsed by the neoliberal state as Chapter 4 discusses. These theories of competition are not 'ideological' and nor are they secretive. They are not ideological because they do not seek to disguise how reality is actually constituted or to distract people from their objective conditions. They have contributed to the construction and constitution of economic reality, inasmuch as they provide objective and acceptable reports on what is going on, that succeed in coordinating various actors. Moreover, they are sometimes performative, not least because of how they inform and format modes of policy, regulation and governance. Inequality has not arisen by accident or due to the chaos of capitalism or 'globalization'. Theories and methodologies, which validate certain types of dominating and monopolistic activity, have provided the conventions within which large numbers of academics, business people and policy makers have operated. They make a shared world possible in the first place. But nor are any of these theories secret either. They have been published in peer-reviewed journals, spread via policy papers and universities. Without shared, public rationalities and methodologies, neoliberalism would have remained a private conspiracy. Inequality can be denounced by critics of neoliberalism, but it cannot be argued that in an era that privileges not only market competition but competitiveness in general inequality is not publicly acceptable. These theories of competition are not 'ideological' and nor are they secretive. They are not ideological because they do not seek to disguise how reality is actually constituted or to distract people from their objective conditions. They have contributed to the construction and constitution of economic reality, inasmuch as they provide objective and acceptable reports on what is going on, that succeed in coordinating various actors. Moreover, they are sometimes performative, not least because of how they inform and format modes of policy, regulation and governance. Inequality has not arisen by accident or due to the chaos of capitalism or 'globalization'. Theories and methodologies, which validate certain types of dominating and monopolistic activity, have provided the conventions within which large numbers of academics, business people and policy makers have operated. They make a shared world possible in the first place. But nor are any of these theories secret either. They have been published in peer-reviewed journals, spread via policy papers and universities. Without shared, public rationalities and methodologies, neoliberalism would have remained a private conspiracy. Inequality can be denounced by critics of neoliberalism, but it cannot be argued that in an era that privileges not only market competition but competitiveness in general inequality is not publicly acceptable. The contingent neoliberalism that we currently live with is in a literal sense unjustified. It is propagated without the forms of justification (be they moral or empirical) that either the early neoliberals or the technical practitioners of neoliberal policy had employed, in order to produce a reality that 'holds together', as pragmatist sociologists like to say. The economized social and political reality now only just about 'holds together', because it is constantly propped up, bailed out, nudged, monitored, adjusted, data-mincd, and altered by those responsible for rescuing it. It does not survive as a consensual reality: economic judgements regarding 'what is going on' are no longer 'objective' or 'neutral', to the extent that they once were. The justice of inequality can no longer be explained with reference to a competition or to competitiveness, let alone to a market. Thus, power may be exercised along the very same tramlines that it was during the golden neoliberal years of the 1990s and early millennium, and the same experts, policies and agencies may continue to speak to the same public audiences. But the sudden reappearance of those two unruly uneconomic actors, the Hobbesian sovereign state and the psychological unconscious, suggests that that the project of disenchanting politics by economics has reached its limit. And yet crisis and critique have been strategically deferred or accommodated. What resources are there available for this to change, and to what extent are these distinguishable from neoliberalism's own critical capacities? ... ... ... Neoliberalism, as this book has sought to demonstrate, is replete with its own internal modes of criticism, judgement, measurement and evaluation, which enable actors to reach agreements about what is going on. These are especially provided by certain traditions of economics and business strategy, which privilege competitive processes, on the basis that those processes are uniquely able to preserve an element of uncertainty in social and economic life. The role of the expert be it in the state, the think tank or university within this programme is to produce quantitative facts about the current state of competitive reality, such that actors, firms or whole nations can be judged, compared and ranked. For Hayek and many of the early neoliberals, markets would do this job instead of expert authorities, with prices the only facts that were entirely necessary. But increasingly, under the influence of the later Chicago School and business strategists, the 'winners' and the 'losers' were to be judged through the evaluations of economics (and associated techniques and measures), rather than of markets as such. Certain forms of authority are therefore necessary for this game' to be playable. Economized law is used to test the validity of certain forms of competitive conduct; audits derived from business strategy are used to test and enthuse the entrepreneurial energies of rival communities. But the neoliberal programme initially operated such that these forms of authority could be exercised in a primarily technical sense, without metaphysical appeals to the common good, individual autonomy or the sovereignty of the state that employed them. As the previous chapter argued, various crises (primarily, but not exclusively, the 2007-09 financial crisis) have exposed neoliberalism's tacit dependence on both executive sovereignty and on certain moral-psychological equipment on the part of individuals. A close reading of neoliberal texts and policies would have exposed this anyway. In which case, the recent 'discovery' that neoliberalism depends on and justifies power inequalities, and not markets as such, may be superficial in nature. Witnessing the exceptional measures that states have taken to rescue the status quo simply confirms the state-centric nature of neolibcralism, as an anti-political mode of politics. As Zizek argued in relation to the Wikileaks' exposures of 2011, 'the real disturbance was at the level of appearances: we can no longer pretend we don't know what everyone knows we know' (Zizek, 2011b). Most dramatically, neoliberalism now appears naked and shorn of any pretence to liberalism, that is, it no longer operates with manifest a priori principles of equivalence, against which all contestants should be judged. Chapter 2 identified the 'liberal spirit' of neoliberalism with a Rawlsian assumption that contestants are formally equal before they enter the economic 'game'. Within the Kantian or 'deontological' tradition of liberalism, this is the critical issue, and it played a part in internal debates within the early neoliberal movement. For those such as the ordoliberals, who feared the rationalizing potential of capitalist monopoly, the task was to build an economy around such an a priori liberal logic. Ensuring some equality of access to the economic game', via the active regulation of large firms and 'equality of opportunity' for individuals, is how neoliberalism's liberalism has most commonly been presented politically. As Chapter 3 discussed, the American tradition of neoliberalism as manifest in Chicago Law and Economics abandoned this sort of normative liberalism, in favour of a Benthamite utilitarianism, in which efficiency claims trumped formal arguments. The philosophical and normative elements of neoliberalism have, in truth, been in decline since the 1950s. The 'liberal spirit' of neoliberalism was kept faintly alive by the authority that was bestowed upon methodologies, audits and measures of efficiency analysis. The liberal a priori just about survived in the purported neutrality of economic method (of various forms), to judge all contestants equally, even while the empirical results of these judgements have increasingly benefited alreadydominant competitors. This notion relied on a fundamental epistemological inconsistency of neoliberalism, between the Hayekian argument that there can be no stable or objective scientific perspective on economic activity, and the more positivist argument that economics offers a final and definitive judgement. American neoliberalism broadens the 'arena' in which competition is understood to take place, beyond definable markets, and beyond the sphere of the 'economy', enabling cultural, social and political resources to be legitimately dragged into the economic 'game', and a clustering of various forms of advantage in the same hands. Monopoly, in Walter's terms, becomes translated into dominance. The loss of neoliberalisms pretence to liberalism transforms the type of authority that can be claimed by and on behalf of power, be it business, financial or state power. It means the abandonment of the globalizing, universalizing, transcendental branch of neoliberalism, in which certain economic techniques and measures (including, but not only, prices) would provide a common framework through which all human difference could be mediated and represented. Instead, cultural and national difference potentially leading to conflict now animates neoliberalism, but without a commonly recognized principle against which to convert this into competitive inequality. What I have characterized as the 'violent threat' of neoliberalism has come to the fore, whereby authority in economic decision making is increasingly predicated upon the claim that 'we' must beat 'them'. This fracturing of universalism, in favour of political and cultural particularism, may be a symptom of how capitalist crises often play out (Gamble, 2009). One reason why neoliberalism has survived as well as it has since 2007 is that it has always managed to operate within two rhetorical registers simultaneously, satisfying both the demand for liberal universalism and that for political particularism, so when the former falls apart, a neoliberal discourse of competitive nationalism and the authority of executive decision is already present and available. One lesson to be taken from neoliberalism, for political movements which seek to challenge it, is that both individual agency and collective institutions need to be criticized and invented simultaneously. Political reform does not have to build on any 'natural' account of human beings, but can also invent new visions of individual agency. The design and transformation of institutions, such as markets, regulators and firms, do not need to take place separately from this project, but in tandem and in dialogue with it. A productive focus of critical economic enquiry would be those institutions which neolibcral thought has tended to be entirely silent on. These are the institutions and mechanisms of capitalism which coerce and coordinate individuals, thereby removing choices from economic situations. The era of applied neoliberal policy making has recently started to appear as one of rampant 'financialisation' (Krippner, 2012). So it is therefore peculiar how little attention is paid within neoliberal discourse to institutions of credit and equity, other than that they should be priced and distributed via markets. Likewise, the rising power of corporations has been sanctioned by theories that actually say very little about firms, management, work or organization, but focus all their attention on the incentives and choices confronting a few 'agents' and 'leaders' at the very top. Despite having permeated our cultural lives with visions of competition, and also permeated political institutions with certain economic rationalities, the dominant discourse of neoliberalism actually contains very little which represents the day-to-day lives and experiences of those who live with it. This represents a major empirical and analytical shortcoming of the economic theories that are at work in governing us, and ultimately a serious vulnerability. A further lesson to be taken from neoliberalism, for the purposes of a critique of neoliberalism, is that restrictive economic practices need to be strategically and inventively targeted and replaced. In the 1930s and 1940s, 'restrictive economic practices' would have implied planning, labour organization and socialism. Today our economic freedoms are restricted in very different ways, which strike at the individual in an intimate way, rather than at individuals collectively. In the twenty-first century, the experience of being an employee or a consumer or a debtor is often one of being ensnared, not one of exercising any choice or strategy. Amidst all of the uncertainty of dynamic capitalism, this sense of being trapped into certain relations seems eminently certain. Releasing individuals from these constraints is a constructive project, as much as a critical one: this is what the example of the early neoliberals demonstrates. Lawyers willing to rewrite the rules of exchange, employment and finance (as, for instance the ordo-liberals redrafted the rules of the market) could be one of the great forces for social progress, if they were ever to mobilize in a concerted w'ay. A form of collective entrepreneurship, which like individual entrepreneurs saw' economic nonnativity as fluid and changeable, could produce new forms of political economy, with alternative valuation systems. The reorganization of state, society, institutions and individuals in terms of competitive dynamics and rules, succeeded to the extent that it did because it offered both a vision of the collective and a vision of individual agency simultaneously. It can appear impermeable to critique or political transformation, if only challenged on one of these terms. For instance, if a different vision of collective organization is proposed, the neoliberal rejoinder is that this must involve abandoning individual 'choice' or freedom. Or if a different vision of the individual is proposed, the neoliberal rejoinder is that this is unrealistic given the competitive global context. Dispensing with competition, as the template for all politics and political metaphysics, is therefore only possible if theory proceeds anew, with a political-economic idea of individual agency and collective organization, at the same time. What this might allow is a different basis from which to speak of human beings as paradoxically the same yet different. The problem of politics is that individuals are both private, isolated actors, with tastes and choices, and part of a collectivity, with rules and authorities. An alternative answer to this riddle needs to be identified, other than simply more competition and more competitiveness, in which isolated actors take no responsibility for the collective, and the collective is immune to the protestations of those isolated actors. #### [Nov 05, 2018] Tax heavens and inequality ##### Notable quotes: ##### "... creates a parallel society in the countryside that never see these money, but are the pros of having that money there and contributing to the economy outweigh these cons? It would if the money were invested with a view of making a profit from a factory, but I don't think that happens in this case. What do you think? ..." ##### "... The result is what we Australians call a two-speed economy or a split economy, where one sub-economy caters for the very rich (real estate agents specialising in luxury properties, lots of luxury hotels and playgrounds, boutique shops and restaurants) and the other sub-economy is hidden away, made up of local people who have to rent their homes because they can't afford to buy their own homes, who have to hold down two or more jobs to survive and who supply the staff for the hotels, shops and restaurants frequented by the rich. Eventually the local people start disappearing to find better-paying jobs and the hotels, restaurants, etc start bringing in foreign labour to replace them. ..." ###### Nov 05, 2018 | thenewkremlinstooge.wordpress.com blatnoi November 5, 2018 at 3:06 am I've lately been wondering about the economics of being a big tax haven like the UK. A place like the Bahamas, I think benefits from it since there are so few citizens and it's easy to bribe them, and it costs a lot less than paying taxes back home. But then you move on to Panama, and the grey area starts. Someone is getting rich there, but the population of Panama is a lot bigger than that of the Bahamas, and that population is not exactly rich. Does it create bigger class divisions and also retards politics in terms of trying to develop their own unique economy not dependent on servicing the rich foreign tax thieves? Then you get to London and the UK, with their absolutely enormous population. Most of the people outside of London will never see any of this money, and in London it creates a runaway housing crisis as the best investment for laundered money is thought to be real estate. Obviously there is investment in the local economy other than that, such as buying football clubs and stores, but I don't think that money goes towards funding a pharma start-up or buying stock in a local car company. So it exacerbates inequality sure (London real estate is insane and out of reach of most locals), and creates a parallel society in the countryside that never see these money, but are the pros of having that money there and contributing to the economy outweigh these cons? It would if the money were invested with a view of making a profit from a factory, but I don't think that happens in this case. What do you think? Mark Chapman November 5, 2018 at 3:20 am I think it is an extremely interesting discussion point; one that I would not venture into without doing a bit of research, but right now I have to leave for work. It's definitely something we could chew over for a bit, and I imagine Jen will have something for us on it. Jen November 5, 2018 at 2:00 pm Blatnoi, if you get hold of the Nicholas Shaxson book I mentioned before, I recall there's a chapter that discusses the effect of being a tax haven has on the Channel Islands economy and Jersey Island in particular. The money that ends up there is in the pockets of a very few people who use it to buy and real estate as if it were shares on the stock market. The result is what we Australians call a two-speed economy or a split economy, where one sub-economy caters for the very rich (real estate agents specialising in luxury properties, lots of luxury hotels and playgrounds, boutique shops and restaurants) and the other sub-economy is hidden away, made up of local people who have to rent their homes because they can't afford to buy their own homes, who have to hold down two or more jobs to survive and who supply the staff for the hotels, shops and restaurants frequented by the rich. Eventually the local people start disappearing to find better-paying jobs and the hotels, restaurants, etc start bringing in foreign labour to replace them. I certainly agree with you that a two-speed economy creates and exacerbates class divisions, and moreover destroys not only local economies in the areas where it operates but also local societies and cultures. Aha I Googled "Shaxson", "economy" and "Jersey" and out of what Google threw at me, I found this account by Bram Wanrooij of his time living in Jersey with his family for six years: An excerpt from Wanrooij's post: ".. I have never been so aware of wealth discrepancies as I have in Jersey. And that says a lot, as I have lived in places like Kenya and Sudan when I was younger. Disparity is on full display, in combination with a shameless promotion of greed and privilege. Range Rovers wizz past you, their 4×4 engines sputtering out clouds of pollution, utterly useless on a small island with a decent infrastructure and no real elevation to speak of. You even see flashy sports cars; quite amusing when you consider the speed limit is 40 at most. What are these people trying to prove? The island caters to the very wealthy, especially reflected in everyday expenses and housing and travel costs. Getting off the island becomes ever more impossible as your family grows, with flights to England ridiculously expensive and ferries charging a small fortune for carrying you across the channel. In this way, Jersey has quickly become a financial and geographical prison for middle and low earners. In the six years I've lived here, my family has had to move six times and every time we had to rent a house which was slightly beyond our budget, even though both my wife and I are hard workers with honest professions. I have seen qualified, talented people leave because of this, a phenomenon which makes no sense, neither on a social, nor an economic level " Comparisons between the Jersey-style financial two-speed economy and economies afflicted with so-called Dutch disease (typically economies like Saudi Arabia and others dependent on oil, gas and mineral exploitation) have been made. Characteristics of such economies are outlined in detail at this link: https://www.economicshelp.org/blog/11977/oil/dutch-disease/ Fern November 5, 2018 at 5:25 pm I've lived on the outskirts of London for many years and what I've seen is the city becoming increasingly hollowed out. You can walk around street after street at night and everywhere is in darkness – the lights are out because no-one is home, not that evening, not ever. London is permanently under construction; huge numbers of new buildings have gone up in recent years – all of them beyond the purchasing power of most Londoners – and huge numbers of those new buildings have been purchased off plan by overseas investors with no intention or interest in living in them. When the money moves in existing communities disintegrate, local councils seek to dump those in social housing on other, less fashionable boroughs (thus exacerbating housing problems in those areas) or even outside London so housing can be razed and the land sold to developers, those renting in the private sector are priced out, local businesses close down – their market has gone plus insane rent and rates increases etc etc. London used to have a bit of a 'village' feel to it – distinct areas with settled communities, traditional butcher-baker-candlestick maker high streets, a sense of community. All gone or going. Moscow Exile November 5, 2018 at 3:51 am 'Billionaires Row': inside Hampstead palaces left empty for decades On The Bishops Avenue houses worth tens of millions of pounds lay derelict in a spectacular example of waste and profligacy The multimillion-pound wrecks are evidence of a property culture in which the world's richest people see British property as investments. One Hyde Park, a block of apartments in Knightsbridge, is another example where more than half the flats are registered with the council as empty or second homes. Rinat Akhmetov pays record £136.4m for apartment at One Hyde Park Ukraine's richest man spends record amount for a UK home after buying two Knightsbridge flats totalling 25,000 sq ft He just loves the weather there! Northern Star November 5, 2018 at 2:35 pm Hmmm .. https://en.wikipedia.org/wiki/Rinat_Akhmetov#Political_activity Jen November 5, 2018 at 3:46 pm Buying properties in hot-spot areas and leaving them empty – because you plan to trade and sell them if and when the prices rocket up to levels you want – would be typical behaviour of people who treat property portfolios like share portfolios. You want to be ready to sell when the price is right so you don't move tenants into them. Getting rid of tenants can be a hassle if you want to sell quickly. Also buying property and deliberately leaving it to rot is a way of using it as a tax shelter to minimise land and other taxes, lower your income or claim a tax rebate on losses you make because you're forking out more in land taxes, council rates and other rates than you are making on the property, depending on the taxation jurisdiction prevailing in the area or country where you have bought the property. Evgeny November 5, 2018 at 3:59 am Thanks for a great article, Mark! Apparently, the U.S. authorities believe that by squeezing the corrupt Russian money out of the Great Britain, they would force those corrupt rich Russians to return their money home and remake the Russia as a modern Western nation with the rule of law and checks and balances. At least, that's what I have heard at anti-Putin forums. So -- and especially so in view of your article -- that ought to be taken with a grain of salt. But if that's indeed the idea -- I'm skeptical that it would work. Definitely, it sounds alright, and if it were implemented, say, 30 years ago -- it might have sort of worked, by preventing the corrupt Russians to move their assets abroad. Now, I think, they would just move their fortunes into some other friendly jurisdiction outside of the reach of Uncle Sam and Russia's authorities. If getting at dirty money was that easy, I doubt that China would ever need to resort to such a complex operation as the "Fox Hunt". Moscow Exile November 5, 2018 at 4:25 am Well it seems that Rusal has said "Kiss my arse goodbye!" to the bounteous, tax-free-zoned West. Sanctions-hit Rusal decides to move from Jersey to Russia November 05, 9:24 updated at: November 05, 10:24 UTC+3 That's Jersey the British Channel Island and not "New Jersey", the former British colony. Mark Chapman November 5, 2018 at 3:36 pm Another kick in the sack for Britain, caused by Washington but for which Washington will suffer no penalty. That Special Relationship certainly is something, isn't it? Mark Chapman November 5, 2018 at 3:32 pm I think you're probably right – although I never thought of such a devious motive as forcing Putin's enemies (in some cases) back to Russia, where they would presumably start financing the opposition and making trouble, I agree it likely would not work according to plan. Very likely all it would accomplish is the withdrawal of their money from London, to be hidden somewhere else. #### [Nov 05, 2018] How neoliberals destroyed University education and then a large part of the US middle class and the US postwar social order by Edward Qualtrough ##### Notable quotes: ##### "... Every academic critique of neoliberalism is an unacknowledged memoir. We academics occupy a crucial node in the neoliberal system. Our institutions are foundational to neoliberalism's claim to be a meritocracy, insofar as we are tasked with discerning and certifying the merit that leads to the most powerful and desirable jobs. Yet at the same time, colleges and universities have suffered the fate of all public goods under the neoliberal order. We must therefore "do more with less," cutting costs while meeting ever-greater demands. The academic workforce faces increasing precarity and shrinking wages even as it is called on to teach and assess more students than ever before in human history -- and to demonstrate that we are doing so better than ever, via newly devised regimes of outcome-based assessment. In short, we academics live out the contradictions of neoliberalism every day. ..." ##### "... Whereas classical liberalism insisted that capitalism had to be allowed free rein within its sphere, under neoliberalism capitalism no longer has a set sphere. We are always "on the clock," always accruing (or squandering) various forms of financial and social capital. ..." ###### Aug 24, 2016 | www.amazon.com Every academic critique of neoliberalism is an unacknowledged memoir. We academics occupy a crucial node in the neoliberal system. Our institutions are foundational to neoliberalism's claim to be a meritocracy, insofar as we are tasked with discerning and certifying the merit that leads to the most powerful and desirable jobs. Yet at the same time, colleges and universities have suffered the fate of all public goods under the neoliberal order. We must therefore "do more with less," cutting costs while meeting ever-greater demands. The academic workforce faces increasing precarity and shrinking wages even as it is called on to teach and assess more students than ever before in human history -- and to demonstrate that we are doing so better than ever, via newly devised regimes of outcome-based assessment. In short, we academics live out the contradictions of neoliberalism every day. ... ... ... On a more personal level it reflects my upbringing in the suburbs of Flint, Michigan, a city that has been utterly devastated by the transition to neoliberalism. As I lived through the slow-motion disaster of the gradual withdrawal of the auto industry, I often heard Henry Ford s dictum that a company could make more money if the workers were paid enough to be customers as well, a principle that the major US automakers were inexplicably abandoning. Hence I find it [Fordism -- NNB] to be an elegant way of capturing the postwar model's promise of creating broadly shared prosperity by retooling capitalism to produce a consumer society characterized by a growing middle class -- and of emphasizing the fact that that promise was ultimately broken. By the mid-1970s, the postwar Fordist order had begun to breakdown to varying degrees in the major Western countries. While many powerful groups advocated a response to the crisis that would strengthen the welfare state, the agenda that wound up carrying the day was neoliberalism, which was most forcefully implemented in the United Kingdom by Margaret Thatcher and in the United States by Ronald Reagan. And although this transformation was begun by the conservative part)', in both countries the left-of-centcr or (in American usage) "liberal"party wound up embracing neoliberal tenets under Tony Blair and Bill Clinton, ostensibly for the purpose of directing them toward progressive ends. With the context of current debates within the US Democratic Party, this means that Clinton acolytes are correct to claim that "neoliberalism" just is liberalism but only to the extent that, in the contemporary United States, the term liberalism is little more than a word for whatever the policy agenda of the Democratic Party happens to be at any given time. Though politicians of all stripes at times used libertarian rhetoric to sell their policies, the most clear-eyed advocates of neoliberalism realized that there could be no simple question of a "return" to the laissez-faire model. Rather than simply getting the state "out of the way," they both deployed and transformed state power, including the institutions of the welfare state, to reshape society in accordance with market models. In some cases creating markets where none had previously existed, as in the privatization of education and other public services. In others it took the form of a more general spread of a competitive market ethos into ever more areas of life -- so that we are encouraged to think of our reputation as a "brand," for instance, or our social contacts as fodder for "networking." Whereas classical liberalism insisted that capitalism had to be allowed free rein within its sphere, under neoliberalism capitalism no longer has a set sphere. We are always "on the clock," always accruing (or squandering) various forms of financial and social capital. #### [Nov 03, 2018] Is Red Hat IBM's 'Hail Mary' pass ##### Notable quotes: ##### "... if those employees become unhappy, they can effectively go anywhere they want. ..." ##### "... IBM's partner/reseller ecosystem is nowhere near what it was since it owned the PC and Server businesses that Lenovo now owns. And IBM's Softlayer/BlueMix cloud is largely tied to its legacy software business, which, again, is slowing. ..." ##### "... I came to IBM from their SoftLayer acquisition. Their ability to stomp all over the things SoftLayer was almost doing right were astounding. I stood and listened to Ginni say things like, "We purchased SoftLayer because we need to learn from you," and, "We want you to teach us how to do Cloud the right way, since we spent all these years doing things the wrong way," and, "If you find yourself in a meeting with one of our old teams, you guys are gonna be the ones in charge. You are the ones who know how this is supposed to work - our culture has failed at it." Promises which were nothing more than hollow words. ..." ##### "... Next, it's a little worrisome that the author, now over the whole IBM thing is recommending firing "older people," you know, the ones who helped the company retain its performance in years' past. The smartest article I've read about IBM worried about its cheap style of "acquiring" non-best-of-breed companies and firing oodles of its qualified R&D guys. THAT author was right. ..." ##### "... Four years in GTS ... joined via being outsourced to IBM by my previous employer. Left GTS after 4 years. ..." ##### "... The IBM way of life was throughout the Oughts and the Teens an utter and complete failure from the perspective of getting work done right and using people to their appropriate and full potential. ..." ##### "... As a GTS employee, professional technical training was deemed unnecessary, hence I had no access to any unless I paid for it myself and used my personal time ... the only training available was cheesy presentations or other web based garbage from the intranet, or casual / OJT style meetings with other staff who were NOT professional or expert trainers. ..." ##### "... As a GTS employee, I had NO access to the expert and professional tools that IBM fricking made and sold to the same damn customers I was supposed to be supporting. Did we have expert and professional workflow / document management / ITIL aligned incident and problem management tools? NO, we had fricking Lotus Notes and email. Instead of upgrading to the newest and best software solutions for data center / IT management & support, we degraded everything down the simplest and least complex single function tools that no "best practices" organization on Earth would ever consider using. ..." ##### "... And the people management paradigm ... employees ranked annually not against a static or shared goal or metric, but in relation to each other, and there was ALWAYS a "top 10 percent" and a "bottom ten percent" required by upper management ... a system that was sociopathic in it's nature because it encourages employees to NOT work together ... by screwing over one's coworkers, perhaps by not giving necessary information, timely support, assistance as needed or requested, one could potentially hurt their performance and make oneself look relatively better. That's a self-defeating system and it was encouraged by the way IBM ran things. ..." ###### Nov 03, 2018 | www.zdnet.com Brain drain is a real risk IBM has not had a particularly great track record when it comes to integrating the cultures of other companies into its own, and brain drain with a company like Red Hat is a real risk because if those employees become unhappy, they can effectively go anywhere they want. They have the skills to command very high salaries at any of the top companies in the industry. The other issue is that IBM hasn't figured out how to capture revenue from SMBs -- and that has always been elusive for them. Unless a deal is worth at least1 million, and realistically \$10 million, sales guys at IBM don't tend to get motivated.

The 5,000-seat and below market segment has traditionally been partner territory, and when it comes to reseller partners for its cloud, IBM is way, way behind AWS, Microsoft, Google, or even (gasp) Oracle, which is now offering serious margins to partners that land workloads on the Oracle cloud.

IBM's partner/reseller ecosystem is nowhere near what it was since it owned the PC and Server businesses that Lenovo now owns. And IBM's Softlayer/BlueMix cloud is largely tied to its legacy software business, which, again, is slowing.

... ... ...

But I think that it is very unlikely the IBM Cloud, even when juiced on Red Hat steroids, will become anything more ambitious than a boutique business for hybrid workloads when compared with AWS or Azure. Realistically, it has to be the kind of cloud platform that interoperates well with the others or nobody will want it.

geek49203_z , Wednesday, April 26, 2017 10:27 AM

Ex-IBM contractor here...

1. IBM used to value long-term employees. Now they "value" short-term contractors -- but they still pull them out of production for lots of training that, quite frankly, isn't exactly needed for what they are doing. Personally, I think that IBM would do well to return to valuing employees instead of looking at them as expendable commodities, but either way, they need to get past the legacies of when they had long-term employees all watching a single main frame.

2. As IBM moved to an army of contractors, they killed off the informal (but important!) web of tribal knowledge. You know, a friend of a friend who new the answer to some issue, or knew something about this customer? What has happened is that the transaction costs (as economists call it) have escalated until IBM can scarcely order IBM hardware for its own projects, or have SDM's work together.

M Wagner geek49203_z , Wednesday, April 26, 2017 10:35 AM
geek49203_z Number 2 is a problem everywhere. As long-time employees (mostly baby-boomers) retire, their replacements are usually straight out of college with various non-technical degrees. They come in with little history and few older-employees to which they can turn for "the tricks of the trade".
Shmeg , Wednesday, April 26, 2017 10:41 AM
I came to IBM from their SoftLayer acquisition. Their ability to stomp all over the things SoftLayer was almost doing right were astounding. I stood and listened to Ginni say things like, "We purchased SoftLayer because we need to learn from you," and, "We want you to teach us how to do Cloud the right way, since we spent all these years doing things the wrong way," and, "If you find yourself in a meeting with one of our old teams, you guys are gonna be the ones in charge. You are the ones who know how this is supposed to work - our culture has failed at it." Promises which were nothing more than hollow words.
geek49203_z , Wednesday, April 26, 2017 10:27 AM
Ex-IBM contractor here...

1. IBM used to value long-term employees. Now they "value" short-term contractors -- but they still pull them out of production for lots of training that, quite frankly, isn't exactly needed for what they are doing. Personally, I think that IBM would do well to return to valuing employees instead of looking at them as expendable commodities, but either way, they need to get past the legacies of when they had long-term employees all watching a single main frame.

2. As IBM moved to an army of contractors, they killed off the informal (but important!) web of tribal knowledge. You know, a friend of a friend who new the answer to some issue, or knew something about this customer? What has happened is that the transaction costs (as economists call it) have escalated until IBM can scarcely order IBM hardware for its own projects, or have SDM's work together.

M Wagner geek49203_z , Wednesday, April 26, 2017 10:35 AM
geek49203_z Number 2 is a problem everywhere. As long-time employees (mostly baby-boomers) retire, their replacements are usually straight out of college with various non-technical degrees. They come in with little history and few older-employees to which they can turn for "the tricks of the trade".
Shmeg , Wednesday, April 26, 2017 10:41 AM
I came to IBM from their SoftLayer acquisition. Their ability to stomp all over the things SoftLayer was almost doing right were astounding. I stood and listened to Ginni say things like, "We purchased SoftLayer because we need to learn from you," and, "We want you to teach us how to do Cloud the right way, since we spent all these years doing things the wrong way," and, "If you find yourself in a meeting with one of our old teams, you guys are gonna be the ones in charge. You are the ones who know how this is supposed to work - our culture has failed at it." Promises which were nothing more than hollow words.
cavman , Wednesday, April 26, 2017 3:58 PM
In the 1970's 80's and 90's I was working in tech support for a company called ROLM. We were doing communications , voice and data and did many systems for Fortune 500 companies along with 911 systems and the secure system at the White House. My job was to fly all over North America to solve problems with customers and integration of our equipment into their business model. I also did BETA trials and documented systems so others would understand what it took to make it run fine under all conditions.

In 84 IBM bought a percentage of the company and the next year they bought out the company. When someone said to me "IBM just bought you out , you must thing you died and went to heaven." My response was "Think of them as being like the Federal Government but making a profit". They were so heavily structured and hide bound that it was a constant battle working with them. Their response to any comments was "We are IBM"

I was working on an equipment project in Colorado Springs and IBM took control. I was immediately advised that I could only talk to the people in my assigned group and if I had a question outside of my group I had to put it in writing and give it to my manager and if he thought it was relevant it would be forwarded up the ladder of management until it reached a level of a manager that had control of both groups and at that time if he thought it was relevant it would be sent to that group who would send the answer back up the ladder.

I'm a Vietnam Veteran and I used my military training to get things done just like I did out in the field. I went looking for the person I could get an answer from.

At first others were nervous about doing that but within a month I had connections all over the facility and started introducing people at the cafeteria. Things moved quickly as people started working together as a unit. I finished my part of the work which was figuring all the spares technicians would need plus the costs for packaging and service contract estimates. I submitted it to all the people that needed it. I was then hauled into a meeting room by the IBM management and advised that I was a disruptive influence and would be removed. Just then the final contracts that vendors had to sign showed up and it used all my info. The IBM people were livid that they were not involved.

By the way a couple months later the IBM THINK magazine came out with a new story about a radical concept they had tried. A cover would not fit on a component and under the old system both the component and the cover would be thrown out and they would start from scratch doing it over. They decided to have the two groups sit together and figure out why it would not fit and correct it on the spot.

Another great example of IBM people is we had a sales contract to install a multi node voice mail system at WANG computers but we lost it because the IBM people insisted on bundling in AS0400 systems into the sale to WANG computer. Instead we lost a multi million dollar contract.

Eventually Siemens bought 50% of the company and eventually full control. Now all we heard was "That is how we do it in Germany" Our response was "How did that WW II thing work out".

Stockholder , Wednesday, April 26, 2017 7:20 PM
The author may have more loyalty to Microsoft than he confides, is the first thing noticeable about this article. The second thing is that in terms of getting rid of those aged IBM workers, I think he may have completely missed the mark, in fairness, that may be the product of his IBM experience, The sheer hubris of tech-talking from the middle of the story and missing the global misstep that is today's IBM is noticeable. As a stockholder, the first question is, "Where is the investigation to the breach of fiduciary duty by a board that owes its loyalty to stockholders who are scratching their heads at the 'positive' spin the likes of Ginni Rometty is putting on 20 quarters of dead losses?" Got that, 20 quarters of losses.

Next, it's a little worrisome that the author, now over the whole IBM thing is recommending firing "older people," you know, the ones who helped the company retain its performance in years' past. The smartest article I've read about IBM worried about its cheap style of "acquiring" non-best-of-breed companies and firing oodles of its qualified R&D guys. THAT author was right.

IBM's been run into the ground by Ginni, I'll use her first name, since apparently my money is now used to prop up this sham of a leader, who from her uncomfortable public announcement with Tim Cook of Apple, which HAS gone up, by the way, has embraced every political trend, not cause but trend from hiring more women to marginalizing all those old-time white males...You know the ones who produced for the company based on merit, sweat, expertise, all those non-feeling based skills that ultimately are what a shareholder is interested in and replaced them with young, and apparently "social" experts who are pasting some phony "modernity" on a company that under Ginni's leadership has become more of a pet cause than a company.

Finally, regarding ageism and the author's advocacy for the same, IBM's been there, done that as they lost an age discrimination lawsuit decades ago. IBM gave up on doing what it had the ability to do as an enormous business and instead under Rometty's leadership has tried to compete with the scrappy startups where any halfwit knows IBM cannot compete.

The company has rendered itself ridiculous under Rometty, a board that collects paychecks and breaches any notion of fiduciary duty to shareholders, an attempt at partnering with a "mod" company like Apple that simply bolstered Apple and left IBM languishing and a rejection of what has a track record of working, excellence, rewarding effort of employees and the steady plod of performance. Dump the board and dump Rometty.

jperlow Stockholder , Wednesday, April 26, 2017 8:36 PM
Stockholder Your comments regarding any inclination towards age discrimination are duly noted, so I added a qualifier in the piece.
Gravyboat McGee , Wednesday, April 26, 2017 9:00 PM
Four years in GTS ... joined via being outsourced to IBM by my previous employer. Left GTS after 4 years.

The IBM way of life was throughout the Oughts and the Teens an utter and complete failure from the perspective of getting work done right and using people to their appropriate and full potential. I went from a multi-disciplinary team of engineers working across technologies to support corporate needs in the IT environment to being siloed into a single-function organization.

My first year of on-boarding with IBM was spent deconstructing application integration and cross-organizational structures of support and interwork that I had spent 6 years building and maintaining. Handing off different chunks of work (again, before the outsourcing, an Enterprise solution supported by one multi-disciplinary team) to different IBM GTS work silos that had no physical spacial relationship and no interworking history or habits. What we're talking about here is the notion of "left hand not knowing what the right hand is doing" ...

THAT was the IBM way of doing things, and nothing I've read about them over the past decade or so tells me it has changed.

As a GTS employee, professional technical training was deemed unnecessary, hence I had no access to any unless I paid for it myself and used my personal time ... the only training available was cheesy presentations or other web based garbage from the intranet, or casual / OJT style meetings with other staff who were NOT professional or expert trainers.

As a GTS employee, I had NO access to the expert and professional tools that IBM fricking made and sold to the same damn customers I was supposed to be supporting. Did we have expert and professional workflow / document management / ITIL aligned incident and problem management tools? NO, we had fricking Lotus Notes and email. Instead of upgrading to the newest and best software solutions for data center / IT management & support, we degraded everything down the simplest and least complex single function tools that no "best practices" organization on Earth would ever consider using.

And the people management paradigm ... employees ranked annually not against a static or shared goal or metric, but in relation to each other, and there was ALWAYS a "top 10 percent" and a "bottom ten percent" required by upper management ... a system that was sociopathic in it's nature because it encourages employees to NOT work together ... by screwing over one's coworkers, perhaps by not giving necessary information, timely support, assistance as needed or requested, one could potentially hurt their performance and make oneself look relatively better. That's a self-defeating system and it was encouraged by the way IBM ran things.

The "not invented here" ideology was embedded deeply in the souls of all senior IBMers I ever met or worked with ... if you come on board with any outside knowledge or experience, you must not dare to say "this way works better" because you'd be shut down before you could blink