And the Collapse of the Middle Class
Cross-posted from TomDispatch.com
“Class happens when some men, as a result of common experiences (inherited or shared), feel and articulate the identity of their interests as between themselves, and as against other men whose interests are different from (and usually opposed to) theirs.”
-- E.P. Thompson, The Making of the English Working Class
The “other men” (and of course women) in the current American class alignment are those in the top 1% of the wealth distribution -- the bankers, hedge-fund managers, and CEOs targeted by the Occupy Wall Street movement. They have been around for a long time in one form or another, but they only began to emerge as a distinct and visible group, informally called the “super-rich,” in recent years.
Extravagant levels of consumption helped draw attention to them: private jets, multiple 50,000 square-foot mansions, $25,000 chocolate desserts embellished with gold dust. But as long as the middle class could still muster the credit for college tuition and occasional home improvements, it seemed churlish to complain. Then came the financial crash of 2007-2008, followed by the Great Recession, and the 1% to whom we had entrusted our pensions, our economy, and our political system stood revealed as a band of feckless, greedy narcissists, and possibly sociopaths.
Still, until a few months ago, the 99% was hardly a group capable of (as Thompson says) articulating “the identity of their interests.” It contained, and still contains, most “ordinary” rich people, along with middle-class professionals, factory workers, truck drivers, and miners, as well as the much poorer people who clean the houses, manicure the fingernails, and maintain the lawns of the affluent.
It was divided not only by these class differences, but most visibly by race and ethnicity -- a division that has actually deepened since 2008. African-Americans and Latinos of all income levels disproportionately lost their homes to foreclosure in 2007 and 2008, and then disproportionately lost their jobs in the wave of layoffs that followed. On the eve of the Occupy movement, the black middle class had been devastated. In fact, the only political movements to have come out of the 99% before Occupy emerged were the Tea Party movement and, on the other side of the political spectrum, the resistance to restrictions on collective bargaining in Wisconsin.
But Occupy could not have happened if large swaths of the 99% had not begun to discover some common interests, or at least to put aside some of the divisions among themselves. For decades, the most stridently promoted division within the 99% was the one between what the right calls the “liberal elite” -- composed of academics, journalists, media figures, etc. -- and pretty much everyone else.
As Harper’s Magazine columnist Tom Frank has brilliantly explained, the right earned its spurious claim to populism by targeting that “liberal elite,” which supposedly favors reckless government spending that requires oppressive levels of taxes, supports “redistributive” social policies and programs that reduce opportunity for the white middle class, creates ever more regulations (to, for instance, protect the environment) that reduce jobs for the working class, and promotes kinky countercultural innovations like gay marriage. The liberal elite, insisted conservative intellectuals, looked down on “ordinary” middle- and working-class Americans, finding them tasteless and politically incorrect. The “elite” was the enemy, while the super-rich were just like everyone else, only more “focused” and perhaps a bit better connected.
Of course, the “liberal elite” never made any sociological sense. Not all academics or media figures are liberal (Newt Gingrich, George Will, Rupert Murdoch). Many well-educated middle managers and highly trained engineers may favor latte over Red Bull, but they were never targets of the right. And how could trial lawyers be members of the nefarious elite, while their spouses in corporate law firms were not?
A Greased Chute, Not a Safety Net
“Liberal elite” was always a political category masquerading as a sociological one. What gave the idea of a liberal elite some traction, though, at least for a while, was that the great majority of us have never knowingly encountered a member of the actual elite, the 1% who are, for the most part, sealed off in their own bubble of private planes, gated communities, and walled estates.
The authority figures most people are likely to encounter in their daily lives are teachers, doctors, social workers, and professors. These groups (along with middle managers and other white-collar corporate employees) occupy a much lower position in the class hierarchy. They made up what we described in a 1976 essay as the “professional managerial class.” As we wrote at the time, on the basis of our experience of the radical movements of the 1960s and 1970s, there have been real, longstanding resentments between the working-class and middle-class professionals. These resentments, which the populist right cleverly deflected toward “liberals,” contributed significantly to that previous era of rebellion’s failure to build a lasting progressive movement.
As it happened, the idea of the “liberal elite” could not survive the depredations of the 1% in the late 2000s. For one thing, it was summarily eclipsed by the discovery of the actual Wall Street-based elite and their crimes. Compared to them, professionals and managers, no matter how annoying, were pikers. The doctor or school principal might be overbearing, the professor and the social worker might be condescending, but only the 1% took your house away.
There was, as well, another inescapable problem embedded in the right-wing populist strategy: even by 2000, and certainly by 2010, the class of people who might qualify as part of the “liberal elite” was in increasingly bad repair. Public-sector budget cuts and corporate-inspired reorganizations were decimating the ranks of decently paid academics, who were being replaced by adjunct professors working on bare subsistence incomes. Media firms were shrinking their newsrooms and editorial budgets. Law firms had started outsourcing their more routine tasks to India. Hospitals beamed X-rays to cheap foreign radiologists. Funding had dried up for nonprofit ventures in the arts and public service. Hence the iconic figure of the Occupy movement: the college graduate with tens of thousands of dollars in student loan debts and a job paying about $10 a hour, or no job at all.
These trends were in place even before the financial crash hit, but it took the crash and its grim economic aftermath to awaken the 99% to a widespread awareness of shared danger. In 2008, “Joe the Plumber’s” intention to earn a quarter-million dollars a year still had some faint sense of plausibility. A couple of years into the recession, however, sudden downward mobility had become the mainstream American experience, and even some of the most reliably neoliberal media pundits were beginning to announce that something had gone awry with the American dream.
Once-affluent people lost their nest eggs as housing prices dropped off cliffs. Laid-off middle-aged managers and professionals were staggered to find that their age made them repulsive to potential employers. Medical debts plunged middle-class households into bankruptcy. The old conservative dictum -- that it was unwise to criticize (or tax) the rich because you might yourself be one of them someday -- gave way to a new realization that the class you were most likely to migrate into wasn’t the rich, but the poor.
And here was another thing many in the middle class were discovering: the downward plunge into poverty could occur with dizzying speed. One reason the concept of an economic 99% first took root in America rather than, say, Ireland or Spain is that Americans are particularly vulnerable to economic dislocation. We have little in the way of a welfare state to stop a family or an individual in free-fall. Unemployment benefits do not last more than six months or a year, though in a recession they are sometimes extended by Congress. At present, even with such an extension, they reach only about half the jobless. Welfare was all but abolished 15 years ago, and health insurance has traditionally been linked to employment.
In fact, once an American starts to slip downward, a variety of forces kick in to help accelerate the slide. An estimated 60% of American firms now check applicants' credit ratings, and discrimination against the unemployed is widespread enough to have begun to warrant Congressional concern. Even bankruptcy is a prohibitively expensive, often crushingly difficult status to achieve. Failure to pay government-imposed fines or fees can even lead, through a concatenation of unlucky breaks, to an arrest warrant or a criminal record. Where other once-wealthy nations have a safety net, America offers a greased chute, leading down to destitution with alarming speed.
Making Sense of the 99%
The Occupation encampments that enlivened approximately 1,400 cities this fall provided a vivid template for the 99%’s growing sense of unity. Here were thousands of people -- we may never know the exact numbers -- from all walks of life, living outdoors in the streets and parks, very much as the poorest of the poor have always lived: without electricity, heat, water, or toilets. In the process, they managed to create self-governing communities.
General assembly meetings brought together an unprecedented mix of recent college graduates, young professionals, elderly people, laid-off blue-collar workers, and plenty of the chronically homeless for what were, for the most part, constructive and civil exchanges. What started as a diffuse protest against economic injustice became a vast experiment in class building. The 99%, which might have seemed to be a purely aspirational category just a few months ago, began to will itself into existence.
Can the unity cultivated in the encampments survive as the Occupy movement evolves into a more decentralized phase? All sorts of class, racial, and cultural divisions persist within that 99%, including distrust between members of the former “liberal elite” and those less privileged. It would be surprising if they didn’t. The life experience of a young lawyer or a social worker is very different from that of a blue-collar worker whose work may rarely allow for biological necessities like meal or bathroom breaks. Drum circles, consensus decision-making, and masks remain exotic to at least the 90%. “Middle class” prejudice against the homeless, fanned by decades of right-wing demonization of the poor, retains much of its grip.
Sometimes these differences led to conflict in Occupy encampments -- for example, over the role of the chronically homeless in Portland or the use of marijuana in Los Angeles -- but amazingly, despite all the official warnings about health and safety threats, there was no “Altamont moment”: no major fires and hardly any violence. In fact, the encampments engendered almost unthinkable convergences: people from comfortable backgrounds learning about street survival from the homeless, a distinguished professor of political science discussing horizontal versus vertical decision-making with a postal worker, military men in dress uniforms showing up to defend the occupiers from the police.
Class happens, as Thompson said, but it happens most decisively when people are prepared to nourish and build it. If the “99%” is to become more than a stylish meme, if it’s to become a force to change the world, eventually we will undoubtedly have to confront some of the class and racial divisions that lie within it. But we need to do so patiently, respectfully, and always with an eye to the next big action -- the next march, or building occupation, or foreclosure fight, as the situation demands.
Barbara Ehrenreich, TomDispatch regular, is the author of Nickel and Dimed: On (Not) Getting By in America (now in a 10th anniversary edition with a new afterword).
John Ehrenreich is professor of psychology at the State University of New York, College at Old Westbury. He wrote The Humanitarian Companion: A Guide for International Aid, Development, and Human Rights Workers.
This is a joint TomDispatch/Nation article and appears in print at the Nation magazine.
Bob Burnett: 2011: The Year Corporations Attacked Democracy
Nicholas Carroll: The Mainstream Spin on OWS: Lies, Damn Lies and Statistics
Orlando Jones: No Offense But....
We do not have that. Not even close.
The entire system is rigged for the rich and powerful. Equal opportunity, equal protections and equitable sharing of productive wealth cut into rich men's obscene profits.
It's labor that produces the actual wealth of this nation, not Wall Street gamblers throwing dice - they simply gamble with the proceeds. That's why WE had to bail them out.
And Wall Street has not equitably shared the legitimate productive wealth produced by labor, hence the massive, unconscionable rich-poor divide.
The 99% are, in fact, being systematically CHEATED of the fair share they've produced and have been for the past 30 years.
That's why unions are so crucial - they help level the playing field. They were/are the ONLY organizations strong enough to stand up to organized power and exploitation at the top.
OWS has got it 100% correct.
Please. Come to NYC.
But I am the 99%. I am an adjunct professor who earns about $2,600 per class. So even if I get to teach 7 classes per years (if I'm lucky), that's a total of $18,200 per year, with no contract, no benefits, and no guarantee of returning employment. And even though adjunct means part-time, believe me -- this is a full-time job.
So I have to have another part-time job where I go into an office, work under my bosses very specific instructions, using the office computers and supplies, and get paid hourly. But I am considered a "contractor" and not an employee so I have to pay both the employee's and employer's taxes, and again, receive no benefits, sick leave or vacation.
And I feel lucky I am employed at all.
I think my story is fairly common. So although I might be considered a "liberal elite" by the President, I am certainly part of the 99%, and definitely not happy about the plutocracy this country is becoming.
Don't get in debt.
Unfortunately, in personal conversation, there are still alot of people who are more afraid of the government helping an "undeserving" person than there are those who are righteously PO'ed at the financial elite and a government bought by corporations.
OWS is saying that the 1% have done many nasty and bad things to get to that place in this country. It's true they have had parents and mentors perhaps for many generations that looked at how money power wealth and keeping it is made and done and then worked towards those goals.
In the middle ages the noble family's never allowed marriage between unequal simply to make sure their wealth and power grew. Today it is the same but added to that is the ability of choice by a individual to see how to make wealth and keep it.
OWS is good but not in the way they are being portrayed. The are telling the new generation and the now generation that they have made poor choices and are mad at themselves. They are saying if you want a better life look at where and how power and wealth is made. They are also saying that they feel it is wrong they do not have more of the pie and government should take from the few so the many can have it-I am not sure I completely agree with that. I am willing to agree that OWS will make changes in Congress.
That said, there are safer investments and investing in the stock market isn't safe. So if you had your entire nest egg in the stock market it sucks to be you.
The OWS movement wasn't about making the individuals in the movement wealthy, it wa about erasing the highest and lowest classes so that we didn't have people with so much money and power that the rest inevitably spiraled downward. So that people COULD take care of themselves and not need handouts.
It certainly wasn't saying that the people in the movement or the rest of the 99% made poor choices, it was saying that the 1% made selfish choices that robbed the 99% of what they worked for, so that even when they made all the right choices they still suffered because of the cruel whims of a few fiscal dictators.
OWS was speaking to our common struggles and the truth that it only got this bad because the 1% intentionally slanted everything about the system for their benefit at the cost of everyone else, and it was calling for changes to fix the disproportionate influence and benefits so that this could be a land of opportunity for ALL and not just for the 1% most willing to screw their fellow man.
Contrast this with the shift in the "education elite" by the time of Enron. Here also we find business and political leaders from the same ivy leagues but their drive and message seemed to have become different. Sometimes we forget the deep influence of the educational institutions had in shaping society . Of course, its not good to stereotype but worth thinking about....
All this comes to something that happened in our Leadership. A shift in thinking and practice of what leadership really means at the top institutions in our government.
Also allowing foreclosures would encourage banks to lend money again.
It would also drive down the price of leases.
Stopping the foreclosures, while touted by Democrats as a worthy measure, actually artifically supports a system where housing is out of reach for most middle class.
It's a terrible thing to be homeless. To feel beaten and hopeless. This is really the only solution.
I'd bet the people being foreclosed upon becausee their jobs vanished or their medical bills skyrocketed or their due to the economic situation would disagree with you too that having their homes taken away from them would be a good thing.
Remember logic: if you take away a family's home ostensibly to let the homeless get houses, you add at least one homeless family for every family you may potentially, in the foreseeable future, possibly enable to afford housing. It's a zero net gain proposition until the point where the housing values plummet to next to nothing and "everyone" without homes can afford one.
Of course, then all the families who still own their homes and are making all their payments even if they have to scrimp and starve suddenly owe EVEN MORE over their actual home values so that they would be even more in the red if they tried to sell so that they, too, would likely lose their homes to foreclosure.
...Didn't think that one through very well, did you?