Posts Tagged ‘Economic inequality’
This is not ‘rocket science’!
We all live on one, finite, planet. Full stop!
When putting together the short item for yesterday, Sunday, I was taken by the power of such simple concepts as beauty, harmony, love, the natural world. Then I came across an article published by Tom Engelhardt, of TomDispatch fame, a little over two weeks ago. It was a guest essay by Chip Ward and is reproduced below.
Learning from Dogs is about integrity. In the sense that dogs, both literally and metaphorically, offer mankind an alternative, and more integrous, way of living. As I wrote in one of the background items to Learning from Dogs, over two years ago,
Because of this closeness between dogs and man, we (as in man!) have the ability to observe the way they live. Now I’m sure that scientists would cringe with the idea that the way that a dog lives his life sets an example for us humans, well cringe in the scientific sense. But man seems to be at one of those defining stages in mankind’s evolution where the forces bearing down on the species homo sapiens have the potential to cause very great harm. If the example of dogs can provide a beacon of hope, a incentive to change at a deep cultural level, then the quicker we ‘get the message’, the better it will be.
Dogs:
- are integrous ( a score of 210) according to Dr David Hawkins
- don’t cheat or lie
- don’t have hidden agendas
- are loyal and faithful
- forgive
- love unconditionally
- value and cherish the ‘present’ in a way that humans dream of achieving
- are, by eons of time, a more successful species than man.
So with those thoughts in mind, please read Chip’s essay as published on TomDispatch. It is reproduced with the written permission of Tom Engelhardt
Someone Got Rich and Someone Got Sick
Nature Is the 99%, Too
By Chip WardWhat if rising sea levels are yet another measure of inequality? What if the degradation of our planet’s life-support systems — its atmosphere, oceans, and biosphere — goes hand in hand with the accumulation of wealth, power, and control by that corrupt and greedy 1% we are hearing about from Zuccotti Park? What if the assault on America’s middle class and the assault on the environment are one and the same?
Money Rules: It’s not hard for me to understand how environmental quality and economic inequality came to be joined at the hip. In all my years as a grassroots organizer dealing with the tragic impact of degraded environments on public health, it was always the same: someone got rich and someone got sick.
In the struggles that I was involved in to curb polluters and safeguard public health, those who wanted curbs, accountability, and precautions were always outspent several times over by those who wanted no restrictions on their effluents. We dug into our own pockets for postage money, they had expense accounts. We made flyers to slip under the windshield wipers of parked cars, they bought ads on television. We took time off from jobs to visit legislators, only to discover that they had gone to lunch with fulltime lobbyists.
Naturally, the barons of the chemical and nuclear industries don’t live next to the radioactive or toxic-waste dumps that their corporations create; on the other hand, impoverished black and brown people often do live near such ecological sacrifice zones because they can’t afford better. Similarly, the gated communities of the hyper-wealthy are not built next to cesspool rivers or skylines filled with fuming smokestacks, but the slums of the planet are. Don’t think, though, that it’s just a matter of property values or scenery. It’s about health, about whether your kids have lead or dioxins running through their veins. It’s a simple formula, in fact: wealth disparities become health disparities.
And here’s another formula: when there’s money to be made, both workers and the environment are expendable. Just as jobs migrate if labor can be had cheaper overseas, I know workers who were tossed aside when they became ill from the foul air or poisonous chemicals they encountered on the job.
The fact is: we won’t free ourselves from a dysfunctional and unfair economic order until we begin to see ourselves as communities, not commodities. That is one clear message from Zuccotti Park.
Polluters routinely walk away from the ground they poison and expect taxpayers to clean up after them. By “externalizing” such costs, profits are increased. Examples of land abuse and abandonment are too legion to list, but most of us can refer to a familiar “superfund site” in our own backyard. Clearly, Mother Nature is among the disenfranchised, exploited, and struggling.
Democracy 101: The 99% pay for wealth disparity with lost jobs, foreclosed homes, weakening pensions, and slashed services, but Nature pays, too. In the world the one-percenters have created, the needs of whole ecosystems are as easy to disregard as, say, the need the young have for debt-free educations and meaningful jobs.
Extreme disparity and deep inequality generate a double standard with profound consequences. If you are a CEO who skims millions of dollars off other people’s labor, it’s called a “bonus.” If you are a flood victim who breaks into a sporting goods store to grab a lifejacket, it’s called looting. If you lose your job and fall behind on your mortgage, you get evicted. If you are a banker-broker whodesigned flawed mortgages that caused a million people to lose their homes, you get a second-home vacation-mansion near a golf course.
If you drag heavy fishnets across the ocean floor and pulverize an entire ecosystem, ending thousands of years of dynamic evolution and depriving future generations of a healthy ocean, it’s called free enterprise. But if, like Tim DeChristopher, you disrupt an auction of public land to oil and gas companies, it’s called a crime and you get two years in jail.
In campaigns to make polluting corporations accountable, my Utah neighbors and I learned this simple truth: decisions about what to allow into the air we breathe, the water we drink, and the food we eat are soon enough translated into flesh and blood, bone and nerve, and daily experience. So it’s crucial that those decisions, involving environmental quality and public health, are made openly, inclusively, and accountably. That’s Democracy 101.
The corporations that shred habitat and contaminate your air and water are anything but democratic. Stand in line to get your 30 seconds in front of a microphone at a public hearing about the siting of a nuclear power plant, the effluent from a factory farm, or the removal of a mountaintop and you’ll get the picture quickly enough: the corporations that profit from such ecological destruction are distant, arrogant, secretive, and unresponsive. The 1% are willing to spend billions impeding democratic initiatives, which is why every so-called environmental issue is also about building a democratic culture.
First Kill the EPA, Then Social Security: Beyond all the rhetoric about freedom from the new stars of the Republican Party, the strategy is simple enough: obstruct and misinform, then blame the resulting dysfunction on “government.” It’s a great scam. Tell the voters that government doesn’t work and then, when elected, prove it. And first on the list of government outfits they want to sideline or kill is the Environmental Protection Agency, so they can do away with the already flimsy wall of regulation that stands between their toxins and your bloodstream.
Poll after poll shows that citizens understand the need for environmental rules and safeguards. Mercury is never put into the bloodstreams of nursing mothers by consensus, nor are watersheds fracked until they are flammable by popular demand. But the free market ideologues of the Republican Party are united in opposition to any rule or standard that impedes the “magic” of the marketplace and unchecked capital.
The same bottom-line quarterly-report fixation on profitability that accepts oil spills as inevitable also accepts unemployment as inevitable. Tearing apart wildlife habitat to make a profit and doing the same at a workplace are just considered the price of doing business. Clearcutting a forest and clearcutting a labor force are two sides of the same coin.
Beware of Growth: Getting the economy growing has been the refrain of the Obama administration and the justification for every bad deal, budget cut, and unbalanced compromise it’s made. The desperate effort to grow the economy to solve our economic woes is what keeps Timothy Geithner at the helm of the Treasury and is what stalls the regulation of greenhouse gasses. It’s why we are told we must sacrifice environmental quality for pipelines and why young men and women are sacrificed to protect access to oil, the lubricant for an acquisitive economic engine. The financial empire of the one percenters and the political order it has shaped are predicated on easy and relentless growth. How, we are asked, will there be enough for everyone if we don’t keep growing?
The fundamental contradiction of our time is this: we have built an all-encompassing economic engine that requires unending growth. A contraction of even a percent or two is a crisis, and yet we are embedded in ecosystems that are reaching or have reached their limits. This isn’t complicated: There’s only so much fertile soil or fresh water available, only so many fish in the ocean, only so much CO2 the planet can absorb and remain habitable.
Yes, you can get around this contradiction for a while by exploiting your neighbor’s habitat, using technological advances to extend your natural resources, and stealing from the future — that is, using up soil, minerals, and water your grandchildren (someday to be part of that same 99%) will need. But the limits to those familiar and, in the past, largely successful strategies are becoming more evident all the time.
At some point, we’ll discover that you can’t exist for long beyond the boundaries of the natural world, that (as with every other species) if you overload the carrying capacity of your habitat, you crash. Warming temperatures, chaotic weather patterns, extreme storms, monster wildfires, epic droughts, Biblical floods, anavalanche of species extinction… that collapse is upon us now. In the human realm, it translates into hunger and violence, mass migrations and civil strife, failed states and resource wars.
Like so much else these days, the crash, as it happens, will not be suffered in equal measure by all of us. The one percenters will be atop the hill, while the 99% will be in the flood lands below swimming for their lives, clinging to debris, or drowning. The Great Recession has previewed just how that will work.
An unsustainable economy is inherently unfair, and worse is to come. After all, the car is heading for the cliff’s edge, the grandkids are in the backseat, and all we’re arguing about is who can best put the pedal to the metal.
Occupy Earth: Give credit where it’s due: it’s been the genius of the protesters in Zuccotti Park to shift public discourse to whether the distribution of economic burdens and rewards is just and whether the economic system makes us whole or reduces and divides us. It’s hard to imagine how we’ll address our converging ecological crises without first addressing the way accumulating wealth and power has captured the political system. As long as Washington is dominated and intimidated by giant oil companies, Wall Street speculators, and corporations that can buy influence and even write the rules that make buying influence possible, there’s no meaningful way to deal with our economy’s addiction to fossil fuels and its dire consequences.
Nature’s 99% is an amazingly diverse community of species. They feed and share and recycle within a web of relationships so dynamic and complex that we have yet to fathom how it all fits together. What we have excelled at so far is breaking things down into their parts and then reassembling them; that, after all, is how a barrel of crude oil becomes rocket fuel or a lawn chair.
When it comes to the more chaotic, less linear features of life like climate, ecosystems, immune systems, or fetal development, we are only beginning to understand thresholds and feedback loops, the way the whole becomes greaterthan the sum of its parts. But we at least know that the parts matter deeply and that, before we even fully understand them, we’re losing them at an accelerating rate. Forests are dying, fisheries are going, extinction is on steroids.
Degrading the planet’s operating systems to bolster the bottom line is foolish and reckless. It hurts us all. No less important, it’s unfair. The 1% profit, while the rest of us cough and cope.
After Occupy Wall Street, isn’t it time for Occupy Earth?
Chip Ward co-founded and led Families Against Incinerator Risk and HEAL Utah. A TomDispatch regular, he wrote about campaigns to make polluters accountable in Canaries on the Rim: Living Downwind in the West and about visionary conservationists in Hope’s Horizon: Three Visions for Healing the American Land.
Copyright 2011 Chip Ward
Words fail one
Income inequality, when it becomes excessive, is very corrosive to a society.
This is clearly a complex subject because one man’s excess is another man’s just reward for building a successful business that employs his fellow citizens.
Nonetheless, I do want to touch on this sensitive area because, to my mind, they are connected with the tragic story that is the point of this article.
But first, a couple of quotes from an article by Prof. G. William Domhoff of the Sociology Department of the University of California at Santa Cruz. It was entitled Wealth, Income, Power.
This document presents details on the wealth and income distributions in the United States, and explains how we use these two distributions as power indicators.
Some of the information may come as a surprise to many people. In fact, I know it will be a surprise and then some, because of a recent study (Norton & Ariely, 2010) showing that most Americans (high income or low income, female or male, young or old, Republican or Democrat) have no idea just how concentrated the wealth distribution actually is.
Later on, Prof. Domhoff writes:
The Wealth Distribution
In the United States, wealth is highly concentrated in a relatively few hands. As of 2007, the top 1% of households (the upper class) owned 34.6% of all privately held wealth, and the next 19% (the managerial, professional, and small business stratum) had 50.5%, which means that just 20% of the people owned a remarkable 85%, leaving only 15% of the wealth for the bottom 80% (wage and salary workers). In terms of financial wealth (total net worth minus the value of one’s home), the top 1% of households had an even greater share: 42.7%. Table 1 and Figure 1 present further details drawn from the careful work of economist Edward N. Wolff at New York University (2010).
That table and the whole article is powerful and a well-worth reading. Read it here.
Stay with me a little longer. Here’s an extract from an article from Nicholos Kristof of the New York Times written in November last year.
In my reporting, I regularly travel to banana republics notorious for their inequality. In some of these plutocracies, the richest 1 percent of the population gobbles up 20 percent of the national pie.
But guess what? You no longer need to travel to distant and dangerous countries to observe such rapacious inequality. We now have it right here at home — and in the aftermath of Tuesday’s election, it may get worse.
The richest 1 percent of Americans now take home almost 24 percent of income, up from almost 9 percent in 1976. As Timothy Noah of Slate noted in an excellent series on inequality, the United States now arguably has a more unequal distribution of wealth than traditional banana republics like Nicaragua, Venezuela and Guyana.
C.E.O.’s of the largest American companies earned an average of 42 times as much as the average worker in 1980, but 531 times as much in 2001. Perhaps the most astounding statistic is this: From 1980 to 2005, more than four-fifths of the total increase in American incomes went to the richest 1 percent.
By the way, Kristof has his own blog site and added material from him about this topic and readers’ comments are here.
Now to the core of this article on Learning from Dogs which, I passionately believe, is closely tied in to the background theme already expressed here. It’s from the blogsite Corrente and, once again, I am indebted to Naked Capitalism for having it in a recent set of links.
It concerns Jack, his family and their house.
The House that Jack’s Bank Took
Jack was a friendly man, who always had a pleasant word and a smile and handshake for everyone. The men hung with him at barbeques and discussed sports. He was strong, had a belly, and always wore a baseball cap. He was married to his high school sweetheart, Mary. He was good to his 4 kids and took care of his oldest child when he had a breakdown in his early twenties. He went to all school and family events and encouraged his children in their dreams. He took care of the family needs and finances. He was a small business owner and had invented his product, which a short while ago became outmoded. He always decorated the house with lots of Christmas decorations and candles. They are still up. He lost his house to foreclosure and the family was given 3 days to move out.
He drove into the deep woods and drank poison to make sure he was dead. I knew him. My family knew him; he lived within walking distance of one of us. At his funeral his childhood sweetheart and their children told a lot of Jack stories. The family did their best to resurrect him to our eyes. One of his kids sang and the eldest read a poem he’d written. Mary said she didn’t know what she was going to do and that she would now have to rely on those from town sitting in the packed chapel pews. There are other houses nearby that haven’t been foreclosed on but Jack’s house was nice and had a good view. The bank has now given Mary 3 weeks to move out.
It was written on the 15th February, 2011; you can read it here. Click on the link and read some of the comments expressed – very powerful.
Wish I could think of something apt to say but I can’t. All I can feel is great sadness and a horrible feeling in the pit of my stomach that this ‘Jack’ story is being echoed in many other places.
Fairness in society
Very difficult times ahead but a fairer social order could be one outcome.
As is so often the case, a number of different lines of thought come together once again to highlight the pressures on society and my belief that we are in the ‘zone of change’ between the last 40 or 50 years and what is ahead for western societies. There is no question that these are very difficult times as, I presume, all phases of change have been over many centuries.
On the 28th October there was a Post on Learning from Dogs about the recent book from Will Hutton, Them and Us. That book masterfully articulates the core issues in British society arising out of some fundamental economic policy errors and the very difficult times that are being experienced right now.
The British are a lost tribe – disoriented, brooding and suspicious. They have lived through the biggest bank bail-out in history and the deepest recession since the 1930s, and they are now being warned that they face a decade of unparalleled public and private austerity.
As if to underline the fact that the economic situation is far from recovery, despite what is being promoted, here’s a recent article from Washington’s Blog. Almost impossible to take an extract that conveys the essence of this powerful (and scary) article – so just go here and read it. Or if you haven’t the time here’s a taste:
SATURDAY, NOVEMBER 27, 2010
It’s Not Just the “Peripheral” European Countries … Financial Contagion Could Spread to “Core” Eurozone Countries and the U.S.CNN notes:
Americans will not be spared if there’s a recession in Europe, even if U.S. bank exposure to European government debt is relatively limited.
SNIP
The European Union is the second largest market for U.S. exports, behind only Canada. The EU bought about $175 billion in U.S. goods in the first three quarters of this year. That’s up about 8% from a year ago.
So worsening problems in Europe will clearly be a drag on the U.S. as well.
Niall Ferguson, Marc Faber, and SocGen’s Edwards and Grice predicted 9 months ago that the European debt crisis would eventually spread to America.But the question of what country the “contagion” might spread to next is really the wrong question altogether.
The real question is whether the wealth of the people around the world will continue to be shoveled into the bottomless pit of debts held by the big banks, or whether the people will prevail and the giant banks and bondholders will be forced to take a haircut. See this, this and this.
So back to the issue of fairness. There is no escaping the consequences, still playing out, of the ‘spend now, pay tomorrow’ culture of the last 30 or 40 years so then the main issue is how do we mitigate the consequences for those who are most exposed to some of less prettier aspects of modern life. Ponder on that question while you read this recent piece from Open Democracy.
Fairness and the cost of life for the poor in Britain
Brian Landers, 26 November 2010Most Britons had “never had it so good” despite the “so-called recession” declared Lord Young of Graffham. His words were immediately disowned by David Cameron, who fired him. But in reality Young was only articulating what he and his circle are experiencing and privately believe.
For example, on the BBC’s Sunday morning Broadcasting House on 21 November, Lord Charles Powell who was Margaret Thatcher’s advisor, complained, “unfortunately he said the wrong thing. In terms of fact what he said was probably right, with interests rates low people are not particularly badly off at the moment. But some people are very badly off and it is insensitive, I suppose, to suggest that everyone is not doing too badly at this time. It does show that you can’t speak the truth in politics anymore you have to defer to what is politically correct”.
Well, there is another truth: that for thousands of pensioners and not just “some” of them, negative real interest rates on their savings are becoming a disaster. Even though for the heavily mortgaged wealthy, low interest rates do indeed make them much better off.
What Young’s comments illustrate, therefore, is that when we consider equality and inequality we need to look at expenditure patterns, which can be just as important as differences in income.
Historically debates on social equality focus overwhelmingly and inevitably on inequalities of income. We read, for example, that according to a study by Incomes Data Services chief executives of the UK’s 100 largest companies are now paid on average 88 times the pay of typical full-time workers and that this ratio is getting worse. Last year the multiple was 81 times and ten years ago top bosses took home 47 times the average wage.
But in addition to their income being a lot lower the poor also suffer more because life costs them more. There are two issues, one obvious, one less so.
The primary issue is one of fairness. Three for the price of two supermarket offers are great value only for those who can afford to buy two; those who can only afford one end up paying 50% more per unit. Is that fair?
Another supermarket example which received widespread but soon-forgotten newspaper coverage earlier this year is more subtle. Tesco owns three convenience store brands in this country: Tesco Express, Tesco Metro and One Stop. An enquiry in 2006 found that the corporation was charging more than 20% more for the same products in its One Stop stores than in its Tesco branded stores. Tesco responded that it was bringing prices down in One Stop but in 2010 further research showed that One Stop prices were still 14% higher than prices for the same product in the rest of Tesco. One Stop typically operated in less attractive (that is poorer) areas where there was no competition from other mega-corporations and where therefore significantly higher prices could be charged. Again that raises issues of fairness.
If such unfairness is somehow familiar there is a further layer that goes beyond fairness: we live in a society where in many tiny ways the poor actually subsidise the better off through the way patterns of expenditure are organised by the market place, (i.e., not just by providing cheap labour).
Consider for example the cost of owning a car. Bernard Jullien of the University of Bordeaux analysed published data on household expenditure and trade data from car distributors (See Competition and Change 6, 2002). He showed that richer consumers were being cross-subsidised by poorer consumers. Distributors in France (and almost certainly elsewhere) were following a conscious policy of keeping new car prices lower to increase their market share. Then then marked up the prices of spare parts and maintenance to maintain their overall profit levels. Jullien found that the unintended consequence was that well off customers, who were more likely to buy new cars, ended up being subsidised by less well off customers who typically bought second hand cars that needed more frequent repair.
There are more examples if the term “well off” is extended to include corporations. The cost of producing and distributing the electricity needed to power a light bulb is the same whether the bulb is in a private house or in the office of a mega-corporation – and yet the corporation will undoubtedly pay far less. Quantity discounts typically reflect the purchasing power of the buyer rather than any scale economies for the seller.
What are apparently rational pricing strategies have the unintended consequence of ensuring that poor people pay more than the well off in ensuring the overall profits corporations need.
Then there is time. Time budget surveys have shown, for example, that the poor take much longer per mile to get to work than the rich because the forms of transport they use are typically much slower. Similarly the poor have to devote more time to food shopping and a host of other activities.
There is nothing conspiratorial about the way that the poor fare worse than the rich. Often it is just the accidental by-product of perfectly sensible business decisions. Indeed in some cases there may even be wider social benefits. Improved stock control with Just-In-Time inventory techniques and Call-Off procurement contracts has ensured that waste in many industries has been sharply reduced; it is unfortunate that in food retailing one consequence is that end-of-day price reductions on perishable products are now less common, again hurting the poor more than the rich.
What can be done to mitigate these expenditure inequalities? First, they deserve to be highlighted, if only because, like so much else, they are beyond the experience of the multimillionaires in and around the cabinet. Second, and especially if we are going to talk about Big Society and us being ‘all in it together’, we need to think about economic models that build into their measures of success their consequences for all of us.
[Published with the permission of Brian Landers and openDemocracy.net under a Creative Commons licence.]
By Paul Handover


