Archive for Brian Dominick

Hierarchy on the Defensive

Mug reads: Boss, You're Fired

You might expect capitalism-centric media would react negatively to the recent buzz around Valve Software‘s innovative non-hierarchical structure. I was actually a little surprised about how un-reactionary the broad response was. The problem for industry media is, it’s really hard to defend hierarchy with actual research. Most behavioral economics research has uncovered big holes in the conventional workplace structure, which is of course maintained in order to foster and perpetuate class divisions, keeping a tiny owner class, a minority coordinator class, and the largest possible share remaining as fundamentally disempowered, disenfranchised worker bees.

I was actually wondering where the reaction to Valve’s novelty revelation of its innovative structure and policies was hiding. So much industry reportage had just treated it as a lark to note and move past. (Probably the wiser strategy.)

Then I saw Inc. magazine’s apologetics piece purportedly defending the virtues of hierarchy. I couldn’t wait to see what kind of contortions would be needed to try to undermine what is becoming more and more obvious: that workers thrive under conditions of empowerment, and that class divisions and disparities of wealth and income are causes of anxiety and dissatisfaction.

But I thought the establishment press would be able to come up with something a little better than this, at least.

Titled “Your employees like hierarchy (no, really)”, the short Inc. piece squirms for a minute then ends up praising Valve. The title addresses you as if the author knows who the fuck you and your employees are. It assumes they’re just like the subjects of a laughably conducted study that proves conclusively that people prefer the way a hierarchy looks on paper. Of course, the study purports to show that people appreciate being in a pecking order. But in fact, it does nothing of the sort.

Let’s not pick on the poor journalism in the Inc. article. The study’s own press release is shoddy enough.

The researchers apparently did not actually test whether their subects would like to work in a hierarchy. Not only did the study fail to examine actual workplaces of various structures and compare them, it didn’t even put the subjects in the hypothetical perspective of employees.

(c) 2006, Carol Simpson

In one of the five experiments used in the study, researchers had subjects react to pairs of photographs of people’s faces that had been independently analyzed for dominant vs. submissive features.

The results indicated that subjects consistently responded more quickly to the pair of photos consisting of a “dominant” face and a “submissive” face — what they termed the “hierarchy condition” — than to any other pair. They concluded that because people process pictures of hierarchies faster than pictures of equalities, hierarchies are easier for people to perceive.

Taking the results at face value (pun intended), what’s the point? I honestly don’t know. Ease of perception is supposed to correlate to preference, let alone actual validation? Nice try.

What’s next?

The second experiment sought to prove that people have an easier time remembering hierarchical relationships than equal ones, and therefore like them better.

To be fair, judging from the abstract, the researchers apparently surveyed the participants on their preference; they didn’t just infer it from ease of memorability of a seating chart (sometimes PR teams get a little carried away in relaying findings). But still, who cares if it takes someone slightly longer to learn the structure of a collective vs. a hierarchy? Has ease of memorability been independently correlated with long term appreciation? Is it even conceivable that you would list “how long it takes to learn the workplace structure” among your top 100 factors in choosing an employer, given you’ll likely spend years there after the few days or maybe weeks it takes to figure out who’s who?

The third experiment involved testing whether subjects more quickly memorized relationships of power hierarchy (boss/worker) over differentials in friendliness. Again, how could we possibly extrapolate a livelihood preference from such an exercise?

“The symmetric-orders condition, where people could give orders to the same people who gave them orders, was extremely hard for people to learn,” the study concluded. “This is interesting because sometimes organizations try to create equality by producing more symmetry; that is, by empowering people to give orders to one another and to take orders from one another. Yet, this kind of structure was confusing to our participants, and some even complained that these relationships did not make sense.”

They weren’t dealing with real people! Not even real fellow subjects, just fictitious people on paper. Of course it would be confusing. This experiment is not in the slightest way an analysis of how people behave in the real world, with real human beings.

I work every day in two flat workplaces. In both cases, team members regularly assign each other tasks. We use a project management system that’s configured to give everyone the power to do so. Sometimes we reassign tasks or even assign them back to the person that gave them to us, indicating we don’t have the capacity or we’re not the best specialist to do it. It’s not confusing. It’s empowering!

The fourth experiment was much more interesting and conceivably relevant.

Using their home computers, subjects were asked to read materials and provide recommendations for a fictitious company, whose goals included “downsize by 10 percent,” “phase out the Atlanta office,” and “increase the number of women in senior positions.” The materials contained spreadsheets of employees’ names, genders, ages, and performance ratings, as well as organizational charts showing their locations and positions.

That’s where the researchers manipulated the variable: some of the charts demonstrated little or no hierarchy, with a maximum of three levels per department, while others revealed a much more stratified structure, with highly differentiated job titles.

Next step: the participant got to do some firing! But all this experiment examined (by its own admission), is how outsiders would handle the challenge. And from what I’m able to see (I don’t have the actual model), it’s not clear that there was any attempt to actually familiarize the subjects with the way the organization worked. That said, the experiment does demonstrate the obvious: that someone from outside an organization will have a harder time analyzing a collective than a traditional hierarchy. So don’t bring in an outside firm to downsize your egalitarian workplace.

It’s also worth noting that in Experiment 4, the participants “expressed a much more positive view of the [hierarchical] firm and its employees”. This could have bearing on all sorts of matters, including prospective customer/client or partner or investor relationships for a company that eschews old-fashioned organizing in favor of a progress-aware approach.

Furthermore, it’s interesting that the charts used in Experiment 4 varied in two ways: stratification and job titles. There’s nothing about less-hierarchical workplaces that would suggest job titles can’t be significantly varied. It’s just bad methodology to change two variables when testing for one factor.

In the end, to a progressively minded person, these findings simply suggest there needs to be a shift in social attitudes towards organizations, away from judging how they’re structured, toward judging how and if they work. Indeed, if the study didn’t include outcome differentials, it’s that much more worthless. I suspect that testing four objects instead of two would have had revealing results. That is:

  • a successful collective
  • a successful hierarchy
  • a failed collective
  • a failed hierarchy

Who thinks success would not have five or more times the influence of the structure variable?

The fifth and final experiment is the real zinger. I find it frankly jaw-dropping that it is treated as anything but an impeachment of the first four experiments. Long story short, participants had an easier time recognizing — and indicated a preference for — hierarchies that were headed by a male as opposed to a female, all else being equal. That’s not very shocking, if you live on planet Earth, where sexism pervades.

What is disturbing is that the researchers don’t reject the first four subject preference equals objective superiority conclusions based on the findings in the fifth experiment. All they’re showing — at most — is that people raised in a messed-up society show messed-up, even self-defeating preferences. No duh.

The researchers were at best gleaning whether people objectively — that is, from the outside — preferred the look of a hierarchy vs. a flat structure. They found out how people who are also generally sexist (like most of us — male man, female woman, trans, whatever) perceive hierarchy. The subjects received no orientation, no special training, not even an explanation, as you would find in any halfway decent workplace, collective or otherwise. The study is a joke, and anyone using it to defend hierarchy looks very desperate.

All that being the case, I think it’s pretty obvious that not everyone would prefer a nonhierarchical workplace. Most people, understandably, are wary of change and newness. I’d love to see a survey of contrasting samples: those who work in collectives vs. those who work in hierarchies. Or, maybe tell us if participants who preferred male-dominated hierarchies are the same subjects that found hierarchy more comfortable in general. Then we’d know if people we should admire — those who did not show a recognition preference for male bosses — favor other forms of equality, too, at least from the outside.

(c) Carol Simpson

What’s funniest of all is that half the Inc. article is taken up introducing the reader to Valve Software’s alternative, horizontal structure, and is not particularly critical in its assessment. For more about Valve’s awesome bossless approach, check out this analysis and this narrative.


End-of-the-world Profiteering

the end of the world offers profit opportunities

the end of the world offers profit opportunities

This reminds me of a couple of posts from last year, particularly my reviews of “doom-and-gloom” financiers Jeremy Grantham and Nouriel Roubini.


Capitalism Makes Us Sick


I often enjoy reading Harvard economist Kenneth Rogoff’s commentaries. He strikes me as someone who kind of “gets it” about capitalism but who is unable, for whatever reason, to draw the logical conclusions. The final paragraphs of his column entries that point to some serious flaw in capitalist economic arrangements are almost always anticlimactic disappointments.

His latest piece, a brief exposé of how capitalist forces contribute to bad diets and poor health titled “Coronary Capitalism”, serves as a great example of his unsatisfying lessons. The piece starts off digging into an important economic matter. After noting that decreased life expectancy is bad for economic growth, he explains that making people fat and sick is probably a net boon to the economy, all aspects considered. Here’s the nut:

Highly processed corn-based food products, with lots of chemical additives, are well known to be a major driver of weight gain, but, from a conventional growth-accounting perspective, they are great stuff. Big agriculture gets paid for growing the corn (often subsidized by the government), and the food processors get paid for adding tons of chemicals to create a habit-forming – and thus irresistible – product. Along the way, scientists get paid for finding just the right mix of salt, sugar, and chemicals to make the latest instant food maximally addictive; advertisers get paid for peddling it; and, in the end, the health-care industry makes a fortune treating the disease that inevitably results.

Coronary capitalism is fantastic for the stock market, which includes companies in all of these industries. Highly processed food is also good for jobs, including high-end employment in research, advertising, and health care.

So, who could complain? Certainly not politicians, who get re-elected when jobs are plentiful and stock prices are up – and get donations from all of the industries that participate in the production of processed food. Indeed, in the US, politicians who dared to talk about the health, environmental, or sustainability implications of processed food would in many cases find themselves starved of campaign funds.

Okay, all of this rings true. But doesn’t it sound like the problem is pretty deep? Doesn’t the problem even seem inherent to capitalism?

Not for an economist steeped in the religion of markets — “free” or otherwise. For these cats, the market — regulated or not — has to form the basis of any solution to an economic problem… even when the market causes the problem in the first place. Rogoff is so conventional in his mindset, he seems to think market forces are actually an excuse for problems, rather than ever being able to draw the conclusion that markets are the problem. Look at the way he almost gives food pricing a pass:

True, market forces have spurred innovation, which has continually driven down the price of processed food, even as the price of plain old fruits and vegetables has gone up. That is a fair point, but it overlooks the huge market failure here.

[emphasis added]

Let’s explore the first sentence, which is so strangely structured as to imply that lowering food prices through subsidies, monocropping, and over-processing is a positive in any way — like, cheap food = good, so it counts for something. But let’s give Rogoff the benefit of the doubt. I think it’s fair to define “innovation” as developments that make something more economically efficient or profitable but not necessarily “better”. Still, I’d bet most people think of innovation as inherently “good”. It would make sense to take pause here and consider that in capitalism, innovation is something that helps capitalists. It may incidentally help workers, but usually it does not. And it doesn’t necessarily help consumers at all; it might even harm them. So finding cheaper ways to get junk food out to people is an innovation — one that is killing us.

But Rogoff acknowledges the “market failure” — so why am I picking on him for allegedly not recognizing that markets are the failure? Am I just nit-picking? Rogoff goes on:

… [P]roducers have few incentives to internalize the costs of the environmental damage that they cause. Likewise, consumers have little incentive to internalize the health-care costs of their food choices.

As far as I can discern, producers have no incentives to internalize the costs of environmental damage of their economic activity. I would love to see Rogoff’s list of the few incentives he thinks they do have. But where is this division coming from, concerning who has what incentives to internalize “externality” costs? This divide between producer and consumer is very real in our society, but how unimaginitive does an economist have to be — or how logically manipulative — to divvy up who bears what costs of bad economic behavior? Rogoff seems to be suggesting, by implication, that producers should have to internalize environmental costs and consumers should have to internalize health care costs of bad agricultural, food-processing, and dietary practices. Consumers somehow aren’t responsible for the production of their food, and producers aren’t responsible for the consumption of their goods (even though previously he notes that advertising is a significant force in the equation). This is the best analysis a conventionally “progressive” orientation on economics produces: bizarre, irrational surface conclusions drawn about a system that is fundamentally flawed at its core.

So what are Rogoff’s disappointing, vague, intangible suggestions for addressing the latest problem he has rightfully (if not rightly) exposed? Well, you can bet he will suggest reforming the “pathological regulatory-political-economic dynamic that characterizes” the food industry, for starters. It isn’t the market, you see; it’s our failure to regulate that pesky rascal. Indeed, Rogoff insists,

We need to develop new and much better institutions to protect society’s long-run interests.

That’s the only sentence we get on the matter, so we’re left to presume he’s talking about regulating bodies of some sort, to rein in the market, or manipulate it so that it works the way centuries-old magic-imbued dogmas suggest it should… you know, intervene to make markets do what they’re supposed to do precisely as long as we don’t intervene.

But even this cop-out directive comes with a familiar warning.

Of course, the balance between consumer sovereignty and paternalism is always delicate. But we could certainly begin to strike a healthier balance than the one we have by giving the public far better information across a range of platforms, so that people could begin to make more informed consumption choices and political decisions.

And that’s it. It’s all he offers. I don’t know Rogoff so I won’t presume to know what goes on in his mind, but it wouldn’t surprise me if the constraints of a neoclassical economics education, a current gig at Harvard, and a couple of stints at the IMF, have limited Rogoff’s imagination so that he can’t fathom there might be another way to manage production, consumption, and allocation in a modern society. Standard forms of centrally planning are too “paternal” to consider; I’d agree with that. And I’d even suggest that having a thoroughly undemocratic government like the United States republic intervene to coerce policy in a major sector of the economy would be rashly paternalistic, with mixed and confusing impact.

So what does that leave us with? Oh, if only there was a way to plan production, consumption, and allocation in a democratic manner, averting the paternalism problem altogether. Information for consumers is indeed a good start. But short of people actually organizing in their dual capacities as consumers and producers, let’s not pretend we can change much just by making smarter purchases. The idea of using the blunt instrument that is “voting with our dollars” to affect the agricultural and manufacturing policies of the handful of conglomerates that dominate our food supply is just plain ridiculous. Change will require collective action to tear down existing institutions and replace them with a foundation of alternatives.


Billionaires Smell Like Fear


Bloomberg News, often the mouthpiece of the elite, is revealing the soreness of .01% at the nascent excoriation movement dishonoring their special place in society as “job creators”. How dare we not be grateful for their large(ne)ss?

Read this. It’s stunning how bizarrely out of touch these folks are even when making deliberate statements to the press.

One example:

[John] Paulson, the New York hedge-fund manager who became a billionaire by betting against the U.S. housing market, has also said the rich benefit society.

This is actually pretty good reporting, but not as explicit as it should be. Paulson made money off of mass suffering and loss. It’s not a judgment, it’s a statement of fact.

Then there’s this:

Attacking the banking system is a mistake because it contributes to “a healthier economy,” [Blackstone Group CEO Stephen Schwarzman] said in the interview.

I honestly don’t know if these guys believe this stuff. A banking system could contribute toward a healthier economy, but the banking system we have? Not so much.

“If I hear a politician use the term ‘paying your fair share’ one more time, I’m going to vomit,” said billionaire founder of Paychex, Tom Golisano.

Fairness makes them sick.

Then a thinly veiled threat:

“It’s simply a fact that pretty much all the private- sector jobs in America are created by the decisions of ‘the 1 percent’ to hire and invest,” [Delphi Financial Group founder Robert] Rosenkranz, 69, said in an e-mail. “Since their confidence in the future more than any other factor will drive those decisions, it makes little sense to undermine their confidence by vilifying them.”

Read: “If you attack us, you’ll get hurt worst and first.” You seriously couldn’t make this stuff up if you were making comic-book villains out of these elitists.

Really, the whole article is chock-full of this stuff. I’m not even picking favorites here.

Okay, just one more:

[Home Depot co-founder Bernard Marcus, who also co-founded the 1 Percenter public relations group Job Creators Alliance] said he isn’t worried that speaking out might make him a target of protesters. “Who gives a crap about some imbecile?” Marcus said. “Are you kidding me?”

Right. He doesn’t give a crap; he just started a PR firm to respond to it. Other than that one move, he shows no sign of being bothered by the nationwide protests.


Down with (‘Occupy’) Materialism, Up with Diversity and Holism


It’s barely secret that numerous local Occupy groups have encountered allegations of internal racism and sexism. When people who are marginalized or sidelined in the outside world feel that happening inside movement groups, they tend to get upset. I don’t really have trouble seeing why that makes sense, but a lot of people do, so I’d like to explain as briefly as possible one main reason for it.

Activists hopefully understand that racism, sexism/heterosexism, and ageism in movement circles are rooted in their institutionalized counterparts in the rest of society. But what keeps them from effectively preventing or even addressing these problems’ reemergence in and between activist groups? I believe the problem is that many leftist intellectuals insist oppressions such as sexism and racism are secondary to classism: the exploitation, alienation, and subjugation of labor. The Occupy movement is fertile ground for this ignorance, and I’m glad that it’s being challenged in many quarters.

Slavoj Žižek’s recent column really brought this home for me. In his commentary, pop-left darling Žižek falsely identifies the Occupy phenomenon as a monist movement about economics alone. But he’s not that far off, actually; he may be more right than wrong.

Žižek is positively giddy that, in his perception, the Left seems to be abandoning its attachment to struggles against racism and sexism, finally getting back to the real work of fighting capitalism.

In a kind of Hegelian triad*, the western left has come full circle: after abandoning the so-called “class struggle essentialism” for the plurality of anti-racist, feminist, and other struggles, capitalism is now clearly re-emerging as the name of the problem.

Yes, the was italicized in the original. I think he really believes all other problems are not just subordinate to and exacerbated by exploitative economic relations, but that “racism, sexism, and other struggles” are strictly rooted in capitalism.

He’s not alone. Many hardcore Marxists, and even reformed Marxists as most style themselves these days, have long lamented the Left’s foray into “identity politics”, that murky expanse in which the “special interests” of people of color, women, queers, and sometimes even young folks are taken into account, or even raised to the same level of concern as workers’ grievances against capital. Those who believe economics is the central (or only) battlefield of struggle usually admit some or all of these groups are oppressed, but they add caveats. They say (1) people of color, women, queers, etc. are primarily oppressed as workers; and (2) capitalism is the root cause of all oppression, so surmounting it will naturally lead to universal liberation.

What’s really going on here? How is it that someone with a supposedly sophisticated mind like Žižek’s can believe that capitalism is really the only problem (“the problem”)?

Here’s the deal: capitalism is “reemerging as the name of the problem” because the OWS phenomenon started with a massive influx of people who are new to radicalism and radical ideas. These folks first came together mainly around economic concerns, i.e., Wall Street vs Main Street, 1% vs. 99%, etc. Then shifty Marxian ideologues swooped in to coopt Occupy Wall Street, along with its various manifestations and energy. The truth is, they did a pretty poor job of this, I gather largely because OWS and its offshoots were steadfastly anti-authoritarian. Still, as a social phenomenon that lacks the sophistication developed through generations of struggle and learned analysis, Occupy is highly susceptible to oversimplified ideologies and sectarianism. Craven Marxist hacks apparently cannot help but try to take advantage of this, even through the pages of mainstream newspapers.

Make no mistake: materialist fixation (also known as “economism” or “class struggle reductionism”, as Žižek noted) in North American movements means in practice writing off or at least subordinating major concerns of pretty much everyone outside the white, male so-called “middle class” (not to mention groups like young people, among whom consciousness raising of oppression is barely active). This doesn’t seem to matter to folks like Žižek, because they can draw the privileged into their camp with promises that the resulting vanguard will take care of women and people of color (who are technically welcome, after all) “after the revolution” (guided by the remaining white men who stay in board).

There’s nothing like an immature movement to make people with immature analysis feel righteous. And there’s nothing like a lack of real organizing experience to let someone believe exclusive ideologies won’t have exclusive effects on participation. At last, there’s nothing like being a straight white male to enable one to decide that racism and sexism are secondary to classism.

Even if you buy into a theory that poses a primacy of economics over cultural, interpersonal, and other social dynamics, consider the implications of organizing around class issues to the general exclusion of anti-racism, anti-sexism, anti-ageism, and so forth. This is what some incarnations of the Occupy phenomenon have tended toward; women and people of color (too many links to list) especially are taking notice. And they’re not just charging that the Wall Street-oriented focus doesn’t include their particular interests; they’re noting that traditional race, sex, and age-based hierarchies are appearing within Occupy groups.

To truly transform society, a social movement will need to be radical (seek out and strike at the roots of problems), and its approach to the array of oppressions will need to be holistic. To attract the kind of diverse participation that makes a movement worth really standing behind, it will need to be at least pluralistic in this crucial regard. Sidelining or subordinating the major, legitimate concerns of people from marginalized communities and identities all but guarantees a movement dominated by people with backgrounds and privileges in tune with the top 20% that really owns and runs society, if not the 1%. And even though Occupy might be under the impression that the 99% are one big happy monolith, reality begs to differ. Failing to acknowledge this reality is essentially terminal for any radical social movement in the US, Canada, or Western Europe.

The good news is, there are elements inside most Occupy manifestations that I’ve heard of — including straight white males — who are willing to challenge failures of inclusiveness. There are folks effectively making the case for holistic or at least pluralistic approaches. Occupy may well be headed in the right direction, not least because its failure to empower an official leadership has not allowed the narrowly, materially focused among them to heed typical calls of “let’s just move on” from matters of race, gender, and so forth. That said, the failure to have accountable leadership has enabled unofficial hierarchies to develop, and this militates in the wrong direction, almost no matter their character.

If you’re participating in an Occupy general assembly or working group and feel like calls for inclusiveness and diverse objectives are bogging down the process, I urge you to rethink. There is power in movement and organizational diversity, and there is something to the idea that addressing oppressions other than hierarchy and classism is critical to the endeavor of radical social transformation.

* (I wouldn’t worry too much if the meaning of “Hegelian triad” doesn’t jump out at you; it’s pretty clear with references of this nature that you aren’t Žižek’s intended audience. There’s no use for that phrase except as a wink to those steeped in the teachings of the pre-Marxian philosopher Hegel. He’s just talking to the academics and bookworms; he doesn’t mind if the rest miss his message. If you haven’t read Hegel, maybe you don’t really matter to Žižek.)

Photo credit: Will Stevens/AP


A Brief Animated History of the Near Economic Future


This video from the Post-Carbon Institute is pretty cool. I hope it goes viral and jars some folks out of complacency.





Are We Really All One Big Equally Unhappy 99%?


Radical economist Michael Albert has made a tremendous contribution to the so-called occupy movement by injecting nuanced class analysis. The 99% slogan has caught on, and it’s easy to understand why. But it’s not a good idea to accept the notion that everyone who isn’t super rich is in one unified camp, even setting ideology aside. The 99% can’t form an egalitarian society or anything close to it until we address internal structural matters… such as that pesky third class aside from workers and capitalists. I believe it’s downright dangerous, and that maybe my friend Mike understates the problem, if anything.

We Are The 99% – But Are We?



The Real People’s Budget

sign in front of capitol building says democracy community

I haven’t had a lot of time to blog lately, but I do have a good deal of stuff in the till that I’ll try to share in coming days.

I don’t know anything about the process by which this document from Occupy DC came into existence, but it’s worth reading even if it was just written by one person. It amalgamates a bunch of very interesting progressive and radical ideas. It doesn’t go far enough for my tastes, but if something like this could be popularized, I’d be thrilled to work on bringing it about. It would be a huge step in mostly the right direction.

“The 99%’s Deficit Proposal: How to create jobs, reduce the wealth divide and control spending”


The Generational Wealth Gap

IOU in a piggy bank

There’s been a social storm of intergenerational conflict on the horizon for a long time. Some say it’s merely hype meant to undermine Social Security and Medicare; others believe it’s the likely battlefield of future class conflict. I think it’s somewhere in the middle, but new research suggests the real-world rupture may be more severe than most of us have feared. That doesn’t mean we’re headed for a war between the ages; it just means we should pay attention and try to avert one.

study released last week by Pew suggests there’s been a drastic shift in the intergenerational wealth gap. Under an economic system like capitalism, which permits the accumulation of wealth, it’s only “natural” that older generations would accumulate greater net worth. But these figures point to a serious shift in that ages-old paradigm.

Pew doesn’t put it so bluntly, but basically what we’re looking at is a significant transfer of wealth from young to old in a way atypical of human history.

chart of generational net worth by age group, comparing 1984 to 2009.

Make sure you take a good, long look at those figures. Occupy Wall Street folks clamoring about how the so-called 1% are the only ones to have gained as a class in recent decades might want to take note: Baby Boomers and older folks did better as a class, too. And they seemingly did it on the backs of younger generations. They’re not alchemists, so their wealth came from somewhere, and it’s no coincidence that younger generations have less relative to what their elders had when they were young. Make no mistake, the super-rich capitalist class did way better than the “elderly” class has done over these same years. But these findings are still alarming.

Pew produced few hard figures detailing what’s behind the shift. I suspect much if not most change in the gap can be accounted for by debt; mainly student loans and relatively new mortgages. The benefit of this widened predation disproportionately went to the ultra-rich, of course, but pretty much anyone with 401k or pension fund investments was likely gaining off the trend of more young people getting into more debt. (I do not have data on hand to back this up, so I’d love to hear if I’m wrong.)

During the period in question, elites among Baby Boomers and their parents, the so-called Greatest Generation, managed to undermine blue collar labor across North America, which forced more and more young people to seek college educations. These elites were meanwhile hurting their own age peers, but overall the impact was far greater on those who had little or no established wealth to speak of. They emerged with crippling debt that their degrees aren’t paying back so quickly, and now the white collar jobs and wages they were seeking are basically going the same way or aren’t as secure as promised. They bought homes to provide financial security, but a housing bubble stripped them of equity.

It has long been accepted that each generation is supposed to leave the following generation better off in every possible way; it’s supposed to be “the American way”. That trend has ended. Wealth has been shifted in the wrong direction, as has the burden.

In case the above isn’t staggering enough, look at this switcheroo.

poverty shifts from old to young over the decades

Now, the progressive line on this is that these figures are inaccurate/relatively meaningless and being spun as a case against Social Security and Medicare. (Actually, I haven’t seen much addressing the poverty factor illustrated above, but I’m talking about the more widely publicized Pew findings about net worth and income.)

Well, I’m certainly not trying to start an “intergenerational war” (talk about overhyping; folks, nobody said leftists don’t know how to use alarming language), and I’m certainly not against Social Security or Medicare, and I don’t fall for the bullshit conservative arguments against them. But that doesn’t mean these findings are not significant and illustrative of a real social problem.

My point in reporting and analyzing these figures is not to engender intergenerational animosity. I certainly don’t think this was a plot by the older generations. If anything, it represents the results of a values split that probably started during the early postwar era, when commercialism and an erosion of interpersonal class solidarity redefined what Americans care about. I’m not saying my generation has been or will be any different in this regard, which is to show a severe disregard for those coming up behind us.

I don’t even think older folks are aware of this apparent shift. More research needs to be done on it. But if it is as real as it seems (and as frankly logic dictates it would be), then it’s something that needs to be addressed along with pressing the 1%. Those in the more politically influential generations need to reverse the shift by investing accumulated wealth in younger generations. There doesn’t need to be a war; once the misplaced burden is identified, redistributing it fairly would be a way to alleviate any bubbling resentment.

photo by: Images_of_Money

Naomi Klein Takes on Climate Change, Capitalism

Naomi Klein

Author and journalist Naomi Klein has done it again. She has written a sensible, perhaps seminal, and truly accessible treatise on what climate change and resource scarcity really mean for the coming decades. I do not fully agree with her conclusions, mainly because she shies away from condemning all markets to the dustbin of history (where she rightly notes the “free market” belongs). But I don’t want to gripe with the piece until after you’ve read it; I think it’s that important. Naomi has clearly spent the last several months much as I have, studying the implications of climate science and resource limits on the future of our economies, but I bow readily to her presentation.

So please, take the time to read “Capitalism vs. the Climate” in The Nation magazine right now.

Pretty impressive, right? Okay, now on to my misgivings, first reiterating that I am overwhelmingly fond of Naomi’s take. I’m just going to address my main concern, then briefly praise Naomi for a daring step in the right direction on another matter.

I am in favor of economic planning. And while Naomi didn’t provide a real framework for how she’d like to see it happen, she did note that participatory engagement in local-level planning would be on her preferred agenda.

In the cities and towns that have taken this responsibility seriously, the process has opened rare spaces for participatory democracy, with neighbors packing consultation meetings at city halls to share ideas about how to reorganize their communities to lower emissions and build in resilience for tough times ahead.

There’s nothing wrong with the above statement; it lays out the basics of what needs to happen society-wide, worldwide, and is already happening in places that overuse resources today (North America, Europe, etc), and places that will suffer the earliest and the most severely from climate change (Asia, Africa, etc).

Local-level planning will definitely be inadequate. It’s clear that Naomi fully understands this, as she advocates for big steps such as agricultural planning and reining in corporations, which no community could ever really do on its own.

But she doesn’t state that over-arching planning (at state, regional, national, and international levels) will have to address differences in capacity, privilege, and other factors that will make it harder or less necessary for some localities to “transition” the way others will have to. That is, communities privileged in terms of geography or wealth will benefit from the marginal advantages of slower and less-thorough transition periods. To the extent planning is based around markets, discrepancies of these kinds will be stark. I wouldn’t actually expect this to be covered in a short piece like Naomi’s, but it’s an implication that deserves to be noted.

Far worse, Naomi’s framework seems to accept that existing governments somehow have the capacity to engage in sensible planning. It’s not clear to me that any polity can responsibly engage in economic planning. Politics is truly a different sphere, dealing with matters of morality and justice; it starts to fail even just with regard to managing production and consumption of public goods. Intervening in the private sector is not the forte of institutions designed and overseen by politicians, especially as they are in turn funded by the industries they’re charged with regulating.

Naomi spends a lot of time in her article noting that market fundamentalists are right about the implications of climate science on the manifestations of their political economic ideology. It is a threat (hence their denial of the science). But so-called libertarians are also at least partly right about government’s inadequacy when it comes to intervening in economies; polities, politicians, and political bureaucrats make ham-fisted planners, at best. When society truly accepts climate change as a catastrophic reality, those arguing that Earth’s collection of profoundly inept governments and literally ridiculous bodies like the United Nations or the World Trade Organization can address matters by meddling with market economies will sound like clowns. Indeed, that’s how it sounds to me today.

Libertarians remain wrong about how profoundly awful markets are. If the contest were only between unregulated markets and regulated markets, the latter should win, but we should also all resign ourselves to a planet ablaze with suffering. Fortunately, those aren’t our only two options, and the alternatives are not limited to central planning, either.

What is needed is a direct-democratically planned economy managed by the population writ large as workers and consumers with more indicative data at their fingertips than simply market prices. It should be essentially autonomous of government, and it should allow for the systematic pricing of externalities, including those affecting ecology, public health, labor, and oppressed communities.

You can imagine then how massive this problem is in my view. First, the kind of transformation needed has to happen at all levels, as Naomi acknowledges. Second, it does not make a wit of sense to leave markets intact, as there is no way to responsibly plan (or do anything that concerns the environment) with markets at work. Third, the planning process cannot sensibly be carried out by government institutions; a separate technocracy is required free of the perverse interests of government, and more sensibly structured to facilitate the kind of ideal, consumer- and worker-influenced economic forces I think many people (very wrongly) romanticize the free market as being able to foster.

As a final note, kudos to Naomi Klein for being willing to grapple with the unnecessarily touchy issues of resource depletion, peak oil, and the cult of economic growth. Many conventionally trained progressive economists (which does not include the likes of Naomi or me) seem not to grasp the very real threat of these impending crises. In my experience, even some of the most radical economists exhibit a rather bizarre faith in capitalism’s ability to innovate its way through nearly any crisis, not to mention an almost mystic belief that the earth’s resources are essentially infinite. As I’ve noted before, there’s not overwhelming sense in concluding peak oil is going to collapse our economy in a precipitous fashion, but denying it will have a severe impact is indicative of a blind spot I simply cannot fathom. Mainstreaming acceptance that these factors will have a tremendous influence on any future economy is a terrific contribution.