Sunday, June 4, 2023
The Burned-Out Bulb of Bright Ideas
Sunday, May 14, 2023
Clear Air At Last?
Sunday, April 23, 2023
A Short Spring Break, and a Few More Observations on Precarity
Sunday, April 16, 2023
The Educated Precariat - A Preview
- What was the original purpose of college? Note that the word "college" comes from the Latin word collegium, defined by Wiktionary as "colleagueship (connection of associates, colleagues, etc.", guild, corporation, company, ... (persons united by the same office or calling or living by some common set of rules), college (several senses), school ..."
- What did the world's first colleges look like? You may not know this, but one of the world's oldest continuously operating universities is the University of Ez-Zitouna, which was founded in Tunisia on the African Continent. What was the mission of the world's first and earliest universities, and how was that mission funded and carried out? How did the roles of education and research interact?
- What was the origin of the system of public universities in the United States? (For instance, what was the role of the presidency of Abraham Lincoln in the birth of American public universities?)
- What are the origins of the for-profit college or university, and how did these institutions cause the purpose of college to mutate over time?
- How has the decline in public and private funding for basic research affected the employment landscape for academics? (You may not know this, but the United States no longer has any major corporately-funded laboratories dedicated to pure research. Bell Labs, which was responsible for the discovery of radio astronomy and many other scientific breakthroughs, is now a wholly-owned subsidiary of Nokia, a Finnish corporation.)
- What is the impact of declining numbers of youth and declining college enrollment on universities and colleges?
- How will the defunding of public colleges and universities affect the future of those nations such as the United States which pursue rabidly conservative "free-market" principles? See, for instance, "Modeling research universities: Predicting probable futures of public vs. private and large vs. small research universities", 2018.
- What can college-educated members of the precariat (especially those college-educated who have been historically marginalized, such as people of color) do both individually and collectively to create a better situation for themselves? For the present-day contraction of opportunities for the college-educated is being orchestrated by the present masters of our society in an attempt to maintain and amplify existing inequality. What steps can we therefore take to create our own alternative spaces of collective self-reliance?
Sunday, April 9, 2023
Precarity, American-Style: The American Enterprise Institute and Small Businesses
This post is a continuation of my series of posts on economic precarity and the precariat. Past posts explored the manifestation of precarity in Russia and China, two nations which returned to the capitalist fold at the end of the 20th century after abandoning free-market capitalism during the early and middle decades of the 20th century. More recent posts have explored the spread of precarity in the United States, a nation which has been characterized from its birth by a cultural emphasis on laissez-faire, free-market capitalism and the defense of the "property rights" of those who are wealthy. This post continues the exploration of precarity in the United States.
"It is a common belief among entrepreneurs and policymakers that small businesses arethe fountainhead of job creation and the engine of economic growth. However, it hasbecome increasingly apparent that the conventional wisdom obscures many importantissues. It is an important consideration because many government spending programs, taxincentives, and regulatory policies that favor the small business sector are justified by therole of small businesses in creating jobs and is the raison d’etre of an entire governmentagency: the Small Business Administration (SBA). This paper concludes that there is noreason to base our policies on the idea that small businesses are more deserving ofgovernment favor than big companies. And absent other inefficiencies that would hindersmall businesses performances, there is no legitimate argument for their preferentialtreatment. Hence the paper suggests ending all small businesses’ subsidies." [Emphasis added.]
The paper sought to make a case for eliminating all government agencies and programs that support or incubate small businesses, both at the Federal and State levels. It twisted a number of statistics in its attempt to make its case, attempting for instance to convince readers that the net gains in job creation should be ignored in favor of gross job creation when analyzing the impact of small businesses during any time period of analysis. This position, by the way, is proven false by the fact that reputable agencies such as the World Bank do count the impact of net job creation in evaluating economic performance. For an example of the paper's mishandling of statistics, consider the part where the author tries to use gross job gains and gross job losses to "prove" that employment in the small business sector was much less stable than in large companies during the year 2000. The author neglected to notice that during the time period in question, the net addition of jobs by small businesses was always positive, and for firms between 1 and 49 employees, exceeded 10 percent. Lastly, I would point out the laughably false claim made by the paper that "... larger employers offer greater job security. For both new jobs and the typical existing job, job durability increases with employer size." (That has definitely not been my experience as a working stiff and cubicle rat! I guess the author of the paper never heard of the words "downsizing" or "redundancy"!)
"... the real job growth comes not from people dreaming of being small business owners but from people committed to building big companies." [Emphasis added.]
"The paper will examine whether the pervasiveness of the belief that small businesses are the economy’s main source of job creation is warranted. Section 2 will show how this belief is the foundation for many government policies. Section 3 will expose the statistical fallacies that lead people to see job creation patterns where none exist. Besides it shouldn’t matter. Although job creation receives enormous attention in policy discussions, it is rather misplaced. The mere creation of jobs is not by itself an appropriate economic policy objective. Economic growth whether it takes the form of additional jobs or increase of productivity in existing jobs is all that matters. The paper concludes that there is no reason to base policies on the idea that small businesses are more deserving of government favor than big companies." [Emphasis added.]
In other words, the AEI has backed a policy which favors the continued growth of large companies, and the continued growth of American economic productivity even when that growth is not accompanied by the growth of jobs. We have already seen the results of such a policy in action, namely, in the jobless "recoveries" from economic crises which occurred during the presidencies of Ronald Reagan and both Bushes. Such "recoveries" left a lot of people out of work for a long time, while those who still had jobs were subjected to ever-increasing demands on their time from their employers in the name of increasing productivity. To put it another way, these "jobless recoveries" resulted in ever-increasing concentrations of wealth among the richest members of society while drastically increasing economic precarity among everyone else. It is quite telling that the AEI has pushed so hard for the elimination of all government help for small businesses even though large corporations are the biggest recipients of corporate welfare from both Federal, State and local governments.
- How many really big companies can exist in a society whose economy is of finite size?
- Why should most people rally behind continued economic growth if the fruits of that growth are not fairly and equitably distributed?
- Who wants to volunteer to be one of the many poor, disenfranchised, and unemployed who are produced by a system in which the fruits of increased productivity are not fairly distributed?
- Who wants to volunteer to be a member of the salariat in such an economy if the only way to be a member of the salariat class is to work 80-hour weeks?
Sunday, March 26, 2023
Precarity, American-Style: Causative Factors
- The decline of small businesses in the U.S. This has been due to "the tilting of the playing field to favor massive companies over small businesses," as reported in a 2020 article by Business Insider. (See also "Monopoly Power And The Decline of Small Business" for a 2016 snapshot of the problem.) Note that the laws passed by the U.S. Congress and the executive orders issued under the Trump administration only made this worse. However, the Biden administration has begun taking steps to reverse small business decline by helping small businesses compete for Federal work, as reported by the Federal News Network in a 2023 article.
- The shifting of tax burdens from the rich to the poor. A striking case in point is the number of states (red states, particularly) whose legislatures and governors have turned them into tax havens for the rich. (See also, "How the Ultrawealthy Devise Ways to Not Pay Their Share of Taxes," NPR, August 2022.) Thus these states have come to resemble enclaves of dirty money that are found in the Cayman Islands. Note that the U.S has recently surpassed the Caymans to become the "world's biggest enabler of financial secrecy" as reported by the international Consortium of Investigative Journalists in May 2022. But these are merely one part of the overall shift of tax burdens away from the rich which began in the 1980's under Ronald Reagan.
- The use of monopoly and oligopoly power to create monopsony and oligopsony labor markets. We all know that a monopoly is a state in which there is only one supplier of a particular good or service which is needed by many buyers. The monopolist can therefore charge whatever price he wants, even if the price is horribly unfair. Oligopoly is the condition in which there is more than one supplier, yet the total number of suppliers is very small. Examples of oligopoly include Airbus and Boeing among aircraft manufacturers, or Microsoft and Brave and Alphabet (owner of Google) among Internet search providers, or CVS and Walgreens and Rite-Aid among drugstores and pharmacies. A monopsony, by contrast, is a situation in which there is only one buyer of a good or service which is offered by many suppliers. An example of this is a situation in which there is only one employer who can offer jobs to people in a large geographical area. Thus the many people in this area become horribly dependent on the one large employer, and if that employer uses his power maliciously or suddenly goes out of business or decides suddenly to cut costs, many people will be devastated. Oligopsony works the same way. Monopsony and oligopsony are the natural outcome of monopoly and oligopoly.
- The shifting of regulatory burdens from large businesses to small businesses. A prime example of this is the case of trying to use your own personal car to earn money by giving people rides. Most cities and states have laws that prevent you from doing this as a private individual. In this case, there are only two legal ways you can earn money by giving people rides: go to work for a taxi company, or become an "independent contractor" for a multibillion-dollar ride-hailing service such as Uber or Lyft. The regulatory burden on these ride-hailing services is very small, as seen in the cases of ride-hailing drivers who are injured on the job, or passengers who are sometimes assaulted by the ride-hailing drivers. Regulatory burdens are now crafted by state and local legislators for the purpose of expanding opportunities for big businesses by smothering small businesses who can't afford the costs of regulatory compliance.
- The innovation-depressing strategies of big businesses. It can be argued that once a monopoly or oligopoly economy is established, the big players in such an economy will tend to fear innovation, since innovations can be disruptive and can even destroy the pre-existing monopoly or oligopoly arrangement. Thus it is no surprise that large businesses (and wanna-be large business owners) have evolved egregious strategies to stifle any potential innovations that might threaten their interests. One such strategy is the misuse of the "non-compete agreement." These are agreements which employees force new hires to sign, in which the new hire typically agrees not to work for any other business or start their own business within a certain time frame and within a certain geographical area. Certain versions of these non-compete agreements also force the employee to give up all rights to any invention or intellectual product which the employee may devise while employed by his employer and for a certain time period after the employee stops working for the employer. (If you work for such an employer, I can understand why you would not be motivated to think very much while on the job!) The abuse of non-compete clauses in employment contracts has moved the Biden administration to start taking steps to ban them (see this also), which should provide immediate relief from employers who want to try to turn their employees into personal property.
Sunday, March 19, 2023
Precarity, American-Style: Introduction
The Journal of Cultural Anthropology describes precarity as ". . . an emerging abandonment that pushes us away from a livable life . . . [It is] the politically induced condition in which certain populations suffer from failing social and economic networks . . . becoming differentially exposed to injury, violence, and death." The University of Georgia has an article on its "Neoliberalism Guide for Educators" webpage which describes precarity in concrete human terms, starting with the questions "Have you ever or do you currently live paycheck to paycheck? Do you work 40 hours a week or more and still can't afford rent?"
The University of Georgia webpage cited above describes how precarity was not always a feature of modern American life. That page describes how under President Lyndon Johnson, the United States began to construct a social safety net that actually worked to bring economic advancement to all Americans and not just the rich. The page also describes how wealthy business interests organized from the 1970's onward to begin to unravel that safety net in order to protect and expand their dominance over the American economy. Today's post will explore how the resulting increase in precarity spread throughout the United States. We will see that, to use a word picture, many of those who thought that they would make out all right by being friends of wolves wound up becoming lamb chops themselves.
- Material rewards - that is, the relative adequacy or inadequacy of wages
- Work time arrangements - that is, how long a person has to work as well as how much control the worker has over his or her own schedule
- Stability - that is, whether the job has a stable employment contract or whether it is unstable (as in temporary, seasonal, contracted limited-time, etc.)
- Workers' rights - that is, whether the employer offers benefits such as health insurance or retirement, as well as protection of workers from exploitation
- Collective organization or empowerment - that is, whether employees are helped or hindered in their attempts to organize themselves for collective bargaining power
- Interpersonal relations - that is, whether workers have to deal with toxic bosses or bosses who don't allow the workers to control how they do their jobs
- Training and employability opportunities - that is, whether there is room for growth and advancement in the job
"The guilt of falling into . . . predatory hands . . . [lies] in the oppressed society and, thus, the solution and liberation need to come from that society transformed through its work, education, and civility. Victims and the seemingly disempowered are thus their own liberators as long as they pursue self-organization, self-attainment, and development of their communities."
Or, to quote from Alex Soojung Kim-Pang,
"Collective action is the most powerful form of self-care." (Emphasis added.)