Archive for Current Issues

Robots Will Waste You

robot advisor

I couldn’t really run a blog called Future Economy if I didn’t love talking about robots. Well, over the last several days, my RSS feed was like Shark Week for radical econ geeks.

Humans as Wasted Capital

First up, Frances Coppola with an interesting commentary on “The Wastefulness of Automation”. If it’s just dawning on you that the perpetual automation game is rigged against working people, you can go through some of the phases of grief with Coppola (though, to her credit, I think she doesn’t make it past “bargaining” here).

It starts out on an odd note for someone as highly schooled in economics as Coppola:

But what if capitalists DON’T want a large labour supply? What if automation means that what capitalists really want is a very small, highly skilled workforce to control the robots that do all the work? What if paying people enough to live on simply is not cost-effective compared to the running costs of robots?

First thing’s first. A large labor supply means lots of people willing and able to work. The more of them available, the cheaper they’ll sell their hours. Of course capitalists want a large labor supply — they get to pick and choose from that supply which ones can come off the 95% unemployment list.

But Coppola struck on the core conundrum — the contradiction hopefully keeping the worst-conceivable future off the table. Do capitalists want a large, active workforce?

If only a small number of people can afford to buy the products produced by all these robots, then unless there is a vibrant export market for those products – which requires the majority of people in other countries to be doing rather better than merely surviving on a basic subsistence income – producers have a real problem.

Okay, well, phew — capitalists will always need us workers. Problem averted, right?

Coppola notes the current trend of automation happening in middle-skilled office jobs, where labor is costly enough that automation is most attractive, while automating the lowest-skilled jobs is of lesser priority to the cost-cutting capitalist happy to pay slave wages for picking and skinning, maybe even lifting and sorting.

But we can’t lose sight of the reason “white collar” jobs pay more; it is because the people in the market for those jobs have comparative bargaining power. It is not because the jobs themselves are more valuable, or have a marginal advantage to the purchase of labor, compared to lower-paying jobs. They’re just more costly due to irrational market forces.

Therefore, such jobs are worth spending more to eliminate.

If the future is that the majority of people will do unskilled, insecure jobs for very low wages, then this amounts to a shocking waste of human capital. And if the more distant future is that even these jobs will eventually be automated, and working for a living will become the privilege of a few, then it is an even bigger waste.

Well, no. Under capitalism, human resources are only “wasted” if they could otherwise be put to better use. There has to be an opportunity cost to their disuse. In the dread scenario Coppola lays out, it’s not clear all this excess potential could do anything the capitalists would value. And since capitalists in the scenario have nearly all the demand power (not just an insanely disproportionate share, as now), who else would capitalism dictate has the prerogative to be valued? Who would a skilled worker be to argue that her talents and passion are being “wasted”?

In these conditions, a “waste of human capital” would be someone who could outwork a robot for wages amounting to less than the cost of the droid’s inputs but who, by some accident, doesn’t get put on the assembly line working shoulder-to-shoulder with X9-5R112. What a shame, the capitalist would think if he ever learned of the case. But someone who can make great art or engineer a way to feed the poor is of no value in this scenario if they can’t do it in a way that makes money for capitalists.

That skilled worker withering away in a tomato patch is only a “problem” if you’re unfortunate enough to possess morals that suggest human suffering is somehow wrong, per se. It is demonstrably not something markets can be bothered by.

Crucially, this isn’t some “Egads! There’s a flaw!” aberration of capitalism. This is one of the market’s more elegant features, if you set aside the hardship blah blah blah. It’s what you get when you put your faith in a system that values people precisely for their ability to (1) invest capital, (2) consume products, or (3) produce valuable goods and services at market rate. What else would you expect?

If you have no money and can’t compete with robots, according to capitalism you’re not a “waste of human capital”; you’re a waste of carbon and water. Coppola can’t seem to get over this shocking notion that capitalism has this built-in anti-sanity attribute:

A labour market that is skewed towards unskilled jobs when the workforce is more highly skilled and educated is malfunctioning. People who are in the wrong jobs are less productive than they should be: therefore, when most of the workforce is in the wrong job, we inevitably have an economy that is less productive than it should be.

No. What you’re actually seeing is that markets don’t care about your skills. And they’re not supposed to. That’s not their job! You either outwork a robot while matching its obedience and loyalty, all while asking for less… or you can go rot in a gutter. At best, you can go do something that’s not yet cost-effective to automate. Oh, and don’t forget, the capitalist gets to keep the robot’s wages; you’ll probably get all selfish and only give your wages back to him in exchange for some kind of commodity or service.

Now, the quote above about the labor market “malfunctioning” if it is “skewed towards unskilled jobs when the workforce is more highly skilled and educated” is true about an economy if and only if you believe an economy’s mandate is to take care of human needs. But it is not true of a market, which has the mandate of moving products to sources of demand. You ask for an invisible hand, you don’t get to whine or call it a “malfunction” when it predictably turns into a fist and squashes you and everyone you love the way it’s been abusing so many for so long.

Robots don’t eliminate jobs; markets do.

Cartoon by Carol Simpson - Robots gather for employee empowerment seminar

Coppola’s revelations continue:

Looking ahead, the only way in which such extensive outright subsidy of wages can be sustained in the longer term is through heavy taxation of profits and wealth – which rather undermines the purpose of forcing down labour costs, from capitalists’ point of view.

Exactly. The capitalists’ only choice would be to pay people just to buy stuff. As neat as that might be for a dystopian novel setting, there’s a flaw in the concept: it would be way more sensible for them to pay robots to buy stuff. Why bother with consumer markets when you can program demand? (Everywhere you look, those damn robots…)

Anyway, we know this isn’t a practical scenario. So Coppola tries to bring us back to reality:

It seems to me that providing people with a reasonable income while they find or create for themselves the right job (not just any job), or to enable them to do creative and/or socially useful things that are currently unpaid, or to study and develop new skills, might be a good investment for the future, improving the productivity of human capital which over the longer term benefits the economy.

This is certainly the right general attitude to have about the future. But then you have to stop using the term “human capital”. As long as humans are capital, their “productivity” will be measured by the value of their output in the market. Only sounds about two-thirds insane… until you remember: robots. And then continuing to advocate markets sounds three-thirds insane.

You also have to rethink what it means to serve an economy. If the mandate of the economy is to produce goods and services for anything with demand power, there’s no way that “benefiting the economy” means “benefiting society”.

How They’ll Do it to Us

Martin Ford of EconoFuture blog is on a similar tip, but he’s been thinking hard about this issue for a very long time, and is probably the leading harbinger of the very real possibility that hyper-automation will create structural unemployment, with predictable shock waves throughout economies. Ford’s latest contribution is a primer on just how contemporary automation may encroach more permanently on the workforce.

Of course, people have cried wolf about technological developments throughout the modern era, yet from prior periods of egg-cracking disruption, omelets have usually emerged. So what’s different now?

Well, what if innovations started targeting more and more costly lines of work, as Ms. Coppola noted above? What if they started doing creative work? What if they start innovating, even upgrading themselves? Would that be fundamentally different from the steam engine? (Yes. Yes it would.)

Ford notes that the trend of automation is to replace routine functions carried out by workers. We see this everywhere. Workers welcome it when it means making their job a little easier — sometimes to their own peril down the line. Now innovators are seeking to automate more complex forms of routines.

Our definition of what constitutes a “routine” job is by no means static. At one time, the jobs at risk from automation were largely confined to the assembly line. … Machine learning … is in essence a way to use statistical analysis of historical data to transform seemingly non-routine tasks into routine operations that can be computerized. As progress continues, it seems certain that more and more jobs and tasks will move from the “non-routine” column to the “routine” column, and as a result, an ever-increasing share of work will become susceptible to automation.

So what are the implications for you and me?

Rather than simply acquiring new skills and moving to another routine job, workers will have to instead migrate to an occupation that is genuinely non-routine and therefore protected from automation—and they may have to do this rapidly and repeatedly in order to remain ahead of the advancing frontier.

Okay, but my job can’t be automated, you say… Well,

Lawyers and paralegals have been displaced by e-discovery software that can rapidly determine which electronic documents are relevant to court cases. More routine forms of journalism—such as basic sports and business writing—have been successfully automated.

If you’re starting to wonder if anybody is safe from the rise of the robots…

Not Brain Surgery, Right?

I imagine if I were a brain surgeon, I’d have trouble believing I could be replaced by a machine, even as I bragged about the jaw-dropping technological innovations being made in my field.

So I’m going to excuse the limits of Dr. Garnette Sutherland’s inability to see the writing on the wall as he regales us with stories of new and near-future technologies that are revolutionizing neurosurgery.

My favorite line is this:

What robots lack is the human brain’s executive capacity. Given that comprehending – and reacting appropriately to – the immense number of variables that can arise during surgery would require enormous computing power, surgical robots aim to integrate human experience and decision-making ability with mechanized accuracy.

Yeah, good luck with that, Doc. Neurosurgery will be a prime target for automation. Of course computers have an executive capacity; try playing one in Backgammon, Chess, or Texas Hold’em. If in the middle of a surgery, a not-yet-programmed decision needs to get made, the on-call surgeon will be able to cover several robot surgeries at once. Maybe several hundred. From across the Internet.

And talk about high-cost routines! Before the good doctor knows it, robots will be explaining how the human brain utterly lacks the capacity to aggregate the compound experiences of multiple units (in real time, no less!), and how its error rate is N times that of robots, and how it can only perform one surgery at a time, and how it needs to sleep and play golf, and go to conferences, and… you get the point.


A Millennial Strikes Back

Matt Bors infographic-style comic about demonization and scapegoating of Millennials

This is an amazing infographic-style cartoon from Matt Bors, a cartoonist who used to contribute regularly to my old project The NewStandard. I found it on, where I also read that Matt was nominated for a Pulitzer in 2012. You can follow him on Twitter.

Matt Bors infographic-style comic about demonization and scapegoating of Millennials


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.


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

Making Wall Street Pay


My friend Lonnie Atkinson’s latest track. This song needs to be heard. Let’s make it viral!

How we gonna make Wall Street pay (with Anitek) by Lonnie Ray Atkinson


Liberating Possibilities

occupy atlanta assembly

I was quite heartened to read Yotam Marom’s recent ZNet contribution, “Liberating the Impossible”. It’s a succinct and probably superior expression of a commentary I had been working on to share my wishes for the real potential of the so-called “occupy” movement that has swept the country and offered even the most pessimistic and cynical among decent people at least a glimmer of hope.

Any cursory glance at the occupy manifestations nationwide can see that they offer a promising model for subjective social change. That is, they are transforming the participants in very concrete ways, raising consciousness and empowering people with real skills for participating in social change. Of course, they’re not really making much objective change yet. The occupy actions are already influencing society’s understanding of itself, while perhaps inspiring some hope. But OWS and its offshoots haven’t really made reforms, let alone the kind of structural social changes that will be necessary to address the roots of the laundry list of legitimate complaints offered by the diverse array of occupy participants.

Yotam’s portrayal of what needs to happen for the occupation movement to become a real force for actual, objective change in society is astute. In his words, what is called for is a new “dual power” movement that is

able to prefigure the values of a participatory, egalitarian and solidaristic society in new and liberated institutions, while simultaneously toppling the old, oppressive structures that exploit and constrain. We must build the new and fight the old at the same time. We must do it all while telling the story of the world we are creating, to defeat the story told by the masters of the status quo.

I have been saying stuff like this for a long time (since 1996 really), but I never said it this well. In these few sentences, Yotam has captured the crux of what I call “grassroots dual power strategy”, with a terrific emphasis on the need for inspirational vision.

Right now, thousands of North Americans are living in ad-hoc communities that could be the seeds of a new society. But of course, the occupation sites themselves cannot form the literal foundation of a new society. That basis for change absolutely must be intertwoven with the fabric of the society we have today until it can create an alternative foundation and the worst auspices of anti-social (i.e. oppressive) institutions can be toppled and replaced whole cloth. If we want to pull the proverbial rug out from under institutions like capitalism and government, we need to have at least a convincing patchwork of an alternative carpet mostly in place.

Zuccoti Park and its hundreds of local spinoffs can hardly better serve as the headquarters of a mass movement for social change than could some remote commune or compound. This is because the movement needs more than the popular appeal achieved by the occupy encampments; it must make real connections to the everyday lives of people throughout society. It must not just be relevant to our hearts; it has to become relevant to many more people’s economic, cultural, political, and even personal lives by seeping into the spaces where the rest of the so-called 99 percent spend most of our time.

The headquarters of a successful social change movement for real social liberation will be found in the the workplace, the marketplace, the campus, the town hall, the neighborhood, the congregation, the festival, the home. Only when the movement pervades all of these places and more — offering alternative ways to relate and meet our real-world needs as well as practical ways to fight back or stand in solidarity with fellow resisters — will its true potential become evident to people who today don’t feel a direct connection to the occupy encampments.

I’ve been biting my tongue on these matters since the occupy protests started gaining real steam. Having spent about half my life studying, pondering, discussing, writing, and lecturing on matters of large-scale social change strategy, I hesitate to offer specific ideas for getting from this consciousness-raising stage (which I never knew how to achieve) to the institution-building phase. Those of us looking on from the outside, or coming out of past movements that never accomplished over years a consciousness-raising or imagination-stimulating achievements that the occupiers have already managed, should continue observing and not offering more than encouragement and support during this critical phase. Outsiders using the iconic “human microphone” to say “Go home and start organizing your communities” would rightly be no more welcome than sectarians urging the movement to join some obscure party.

But this fledgling movement has to (and I believe can) make that transition to a dual power. It may come as a natural, evolutionary outgrowth of the occupy phase. Or maybe it will be a leap from spectacular encampment to the far-less-sexy community and workplace organizing activities. Sooner or later, I hope movement participants will recognize a mid-term objective of forming a real dual power capable not only of challenging the dominant system but offering real-world alternatives.

But then again, I think Yotam already said this even better than I can after all these years. And his words are probably going to ring truer with his generation, hopefully more so than mine ever did in my own time. I love the way Yotam portrays the potential for a subsequent phase that would mark the manifestation of a dual-power movement:

We will make a real impact when we re-open the abandoned hospitals and put doctors in them; when we bring the occupation to the schools and the schools to the occupation; when we liberate foreclosed homes not just for a day, but to move families back into them. We will make a real impact when the government sessions where they continue to pass new austerity measures behind our backs are interrupted by our active resistance to them; when the arms trucks can’t get across the bridges because we’ve blocked them; when the banks have to close not their branch lobbies, but their headquarters, because those they have disenfranchised have risen up to barricade their doorways.

Do yourself the favor of reading the rest of his short incitement.


Could ‘Squatters’ Really Hold the Economy Down?


I love squatters. Thought to be fading into history as a self-conscious class, these intrepid refuseniks have not made much news for the past decade or thereabout. So when a friend sent me a link to a Time/Moneyland story about a new breed of squatters, I couldn’t wait to see what they were up to.

Despite being ridiculously titled “Is America Becoming a Nation of Squatters?” (hyperbole much?), the piece by Tara-Nicholle Nelson starts off good, introducing the phenomenon of squatting and the seemingly anomalous legal concept known as “adverse possession”, a doctrine under which in some states squatters can acquire legal title to real property simply by residing on it without permission for a certain period of years (usually ten). This is interesting stuff, and over the generations, lots of housing activists have made the case that squatting is a valuable social phenomenon. (Not a hard case to make, given that people need housing and so much of it is vacant.)

Nelson then introduces a “new class of squatters” — homeowners who default on their mortgages but stay in their houses. This is not exactly a social movement, and it’s kind of a no-brainer (if you’re broke but not yet being physically forced out of the structure you call “home”, where all your stuff is… why would you leave?), but it’s an interesting socioeconomic phenomenon, if you will.

What really threw me for a loop was the writer’s conclusion. I honestly did not see it coming. Nelson — notably a lawyer and a real-estate broker — suggests that this “squatting” phenomenon may be adversely affecting the housing market because it could taint Americans’ attitudes toward what she calls “the inherent rightness of paying for the right to live in a place”.

WOW! What a phrase, and what an overarching idea.

My objections are manifold. First, people cheerleading for housing values to rise again need to sit in the corner wearing a “real-estate agent” dunce cap. Second, people who suggest rights can be bought should sit in the corner with a “lawyer” dunce cap on. Third, get real — there is (unfortunately) no real “threat” of an attitude shift toward access to real property. Fourth, even if there were such a prospect, its impact would probably be immeasurably small, given that it would come up against the reality of how property is treated in our society. And it would only serve to anchor housing prices in ways that aren’t all bad.

Let’s take the philosophical point first and dispense with this notion that one can purchase rights. There is sadly no right to housing in this country. One can purchase the legal prerogative to occupy a dwelling either by obtaining deed or lease. Otherwise, with few exceptions, one has no expectation of any legal or even philosophical right to shelter. Overturning this would be a good thing; maybe not for the real estate market, depending on how it was implemented, but definitely a win for the human condition.

On to the threat of an attitudinal shift anchoring the housing market, which Nelson considers unhealthy. She writes:

I suspect this harm will manifest most evidently in consumers’ mindsets, as widespread squatting threatens to upend basic, important social beliefs about the inherent rightness of paying for the right to live in a place. If consumers perceive that a primary advantage of being a homeowner is that you can stick around for years without making a payment, strategic default and foreclosure rates might never decline back to their pre-recession rarity.

[…] The real danger is to our social norms and financial belief systems which, in turn, threaten a lasting recovery and future prosperity.

Economic recovery and (material) prosperity are indeed tied to the housing market. When the housing bubble predictably burst in 2008, the consumer credit system took a massive hit. Our economy is 70% consumer-driven. It depends on growth, and growth depends on credit. So while the stagnant housing market is probably (for now) holding back severe inflation as the Fed pushes a credit- and government-spending-based recovery dependent on an increased currency/reserves supply, that same moribund market is holding back the real flow of consumer credit. This everybody acknowledges.

Where onlookers differ is in the real social quality of this anchoring effect. First, the more affordable housing is, the better off society is, generally speaking. That’s not an economistic view — it’s just another of my pesky humanistic views. If our economic system gave a damn about sheltering Americans, we would be happy to see a gentler rate of increase in housing costs.

But besides this, holding back growth in a society that has too much housing (however misallocated) and too much consumption in terms of resource use and pollution/greenhouse-gas output, is not in and of itself a bad thing. An economic system that causes suffering when aggregate production contracts or even slows will tempt all of us to cheer for growth. But growth has severe consequences; it is not inherently good. The cost of ameliorating present economic misery for working and unemployed Americans may build in too many problems associated with overconsumption. These will hurt down the road. Severely.

The housing market needs never to return to unsustainable growth. It is amazing that this has to be said in a post-burst world, but apparently some people haven’t figured it out, including self-interested homeowners and real-estate brokers. As long as credit is made readily available and energy costs are artificially low (as they do not include the real environmental and social costs of hydrocarbon-based production and consumption), there will be a tendency for real estate prices to bubble, not just threatening sudden harm to the economy again, but also excluding poor people from decent housing.

This is why the notion that attitudes of entitlement to housing will hurt the market is absurd. First, this attitude isn’t going to come about by some spontaneous collective realization. It would take an organized social movement to reevaluate the concept of housing as a right (that can’t be purchased).

Besides, the market has too many systemic upward pressures; nuances that tamp it down have an upside, even if it really sucks for people who made poor real-estate investment choices in the last decade. We really don’t want to reinflate the bubble just to give those bad investments new life and prop up the credit-based overconsumption frenzy that put us in this sad state to begin with.

Now back to philosophy for a moment. This is just my own belief, to counter Nelson’s appreciation for the idea that people should pay market prices for the “right” to occupy a home. Shelter is a human right, and anyone who contributes to society should have comparable access to stable, secure, desirable housing. Shattering arcane notions that a suitable home is a privilege one must purchase would be good not just in terms of anchoring the housing market, but to transform this society into a halfway decent alternative.

Carol Simpson cartoon -- real estate agent shows family a homeless shelter.

Cartoon by Carol Simpson.


‘Stay Angry at the Plutonomists’

begger approaches rich man

Writing for the New Economic Foundation blog, Josh Ryan-Collins encourages us to “stay angry” at the tiny group of powerful Americans CitiGroup says enjoy the special status of “plutonomy” — you know, the people who matter.

Citigroup believed that we had moved in to a new kind of macro-economy, where growth was primarily driven by the rich and enjoyed by the rich.  Everyone else was fairly irrelevant, as was the global imbalance in trade between the US and everyone else and the strength of the dollar.  The fact that inequality was massively widening was not seen as a big issue – the important thing was to keep the rich and their stocks, getting richer.

Ryan-Collins is referring to the content of two leaked reports that should have been more widely embarrassing for Citigroup. It probably helps that Citi’s brands/subsidiaries advertise widely in American news media, or we might have seen more from the troublingly candid document.