It's Labor Day: Why Am I Not Feeling Energized?

There he was, too pale and much too chubby to pass as an old salt but nonetheless perched proudly on the foredeck of his sparkling new Newport yacht, the aptly-named Numbers: one Daniel M. Meyers, a founder of First Marblehead Corp. and one of the leading players in the $20 billion student loan industry.

Why should I begin a Labor Day post with this sorry image from Sunday's New York Times business section? Because the piece reports casually, in the context of charting the spectacular profits of companies like Meyers', that the average debt level carried by newly-minted college graduates has more than doubled over the past decade.

The Times piece on the student loan business also reports that this lucrative racket could end up looking a lot like the subprime mortgage racket: i.e., the sharks move in, they feast themselves, and they swim away before their victims quite realize they have limbs missing and before various Congressional sock puppets (happy for now to take money from the sharks) start clearing their exquisite throats to deplore the sorry mess.

It's the borrowers I am most interested in. They are the ones who, most often with their economically-stressed parents' concurrence, take the big gamble and go deeply into hock in the expectation that their dearly-purchased degrees will allow them not only to pay off their college debt but also achieve a comfortable middle-class life within just a few years.

I don't want to bet against them, obviously, but on this Labor Day weekend I have to wonder whether it might be time to replace "Pomp and Circumstance" with Chopin's "Marche funebre" at university graduations. What real evidence is there that tomorrow's knowledge workers-those earnest and motivated college grads-will actually enjoy a middle-class standard of living as that standard has commonly been understood?

While many policymakers and commentators focus on the sorry fate of low-skilled workers with high school educations or less, fewer have had much to say much about the disturbing earnings picture facing today's college grads--especially once that picture has been properly adjusted by subtracting the handful of stars who head off from ivy-draped campuses to pursue blessed careers in investment banking, Hollywood, and the like.

Last week's comprehensive Census Bureau report contained the sobering but no longer surprising news that the only population group whose 2006 incomes exceeded their 2000 incomes were those households in the top five percent of the earnings distribution. For everyone else, incomes were lower.

Add to declining or flatlining median earnings the fact that college grads now make up a growing part of the 47 million Americans living without health insurance and also the fact that grads paying off those crushing college debts are extremely unlikely to be saving for retirement. What you will get is a really dismal sense of the American prospect.

Back in the days when Labor Day represented the start of serious presidential campaigning, candidates would routinely exalt the dignity of work itself, laud the virtues of working people, hail the importance of honoring those whose productive labors generate far-reaching prosperity, and denounce "malefactors of great wealth" and "economic royalists." (Admittedly, not many went as far as the Roosevelt cousins.)

Production was the keynote then. Today the U.S. has wandered blindly down a road where consumption is what matters and the fate of worker-producers is relegated to the tender mercies of quasi-divinized "market forces" that are never seriously challenged by those in the political class. Our politicians deal only with issues at the margins-insuring a few more children, legislating family-friendly leave policies, and raising the minimum wage so that it now can supply around half of what it actually takes to live in most major metropolitan areas. But none is willing to start a new public conversation about the kind of society we actually might want. None is willing to ask whether "market forces" is just another name for unlimited predation by the sharks or whether leaving the future of 350 million Americans to such forces is really such a good idea.

I note in passing that the absence of a real conversation also left a huge vacancy in the center of the late and not-very-great great immigration debate. Why was it that none of our so-called progressive leaders called for a serious examination of the role of NAFTA in immiserating Mexico to the point that its people must now migrate to survive? The fact is that the NAFTA signatories (sadly, not even Canada) cared or cares very much about its producers-about the people who must work for a living, as against the people who get to invest for a fabulous living. I can understand why the DLC types and the Clintonistas would not want to challenge NAFTA's premises. What I cannot understand is how leaders calling themselves politically progressive could focus only on immigrant rights without demanding the repeal of NAFTA and its replacement by serious bilateral job-creation and job-retention measures on both sides of the Rio Grande. Instead, they spent and still spend their energy excoriating those who might dare to suggest that the presence 13 million undocumented workers could possibly be holding back U.S. wage growth.

I guess the main reason I am in dirge mode this weekend is that I see no hope that any of the elites-those five percenters, including the politicians kept in their seraglios-will have any interest in starting a real conversation. The persistence of the non-conversation is the main burden of Matt Bai's The Argument; it also explains why no one takes seriously books like Robert Reich's new one critiquing turbocharged capitalism.

That leaves it to the workers-yes, the workers!-to mount a new conversation from below. But such a hope presupposes that workers will have real-time opportunities to talk to each other about what is happening in their lives. And that is not going to happen as long as these same workers are putting in ever-longer hours and spending what remains of their time consuming themselves to oblivion. Surely no one should expect our debt-ridden college grads to be the first to demand a serious rethinking of where things are headed.

As a religious leader, I still foster the hope that a radical critique of a society organized around the worship of wealth and the heedless pursuit of wealth can emerge against all odds from faith communities taking seriously their own core teachings. But that is now the only hope I see out there. Please someone: tell me that I'm just stewing in my own cynical juices. Point out to me the next Sam Gompers or Mother Jones or Gene Debs who has both the guts and the chops to get a real national conversation going. I'm waiting.

Comments

[LewisWalsh]

Come on people, we know what the problem is. How about putting the pledge where your mouth is.

Legislators are unlikely to approve legislation that would limit terms of office. And, if such a law were to pass, the Supreme Court is likely to strike it down. We can clean up the mess in Washington if we individually take action to limit congressional terms. The most skillful of the wealthy minority and the most unethical of the permanent political class can not stop action taken by the Six Years and Out movement because it is citizen imposed. We need no legal or judicial concurrence.

Six Years and Out, The Pledge:

With the recognition that there are huge numbers of intelligent, talented and qualified citizens who are prepared to limit their public service. I hereby pledge that I will not vote a second term for any United States Senator and no more three terms for any United States Congressman.

[shoelessjoe]

1)Unions are for the protection of workers, not a guarantee of wages and retirement benefits and other perks. Ask the Auto workers?
2)What ever happened to working and going to school, does that cut too much into student's party time?
3)How about putting the blame where it belongs, on ourselves for wanting everything and wanting someone else to pay for it. We are too quick to allocate blame and unwilling to accept responsibility.
4)How about changing things by pushing our leaders - phone calls, e-mails, letters and protest are far more efficient means of change, blogs should be for educating and informing, not venting and name calling.
5)Start being less dependant on Uncle Sam - government cannot solve "most" of our problems. We can, if we unite as a people, not as Dems or Reps, not as black or white, but united for all.
6)Quit blaming China for producing all the crap WE buy, we made the decision to buy the cheapest product available and charge it.

Ok, I have had my say, go back to slamming everyone and blaming someone else. I am going back to fixing things that I have control over.

[EngineerBill]

Shoelessjoe I know many, if not most students work and go to school, including my own wife and daughter. I think the problem is not that we want "...someone else to pay for it". I think that people just don't think through the consequences of demanding the lowest prices for things without any regard for how that came about. If the people said, "we would rather pay twice as much for that computer or home theater or the clothes on the rack if we were insured that the people who produced the products were paid and treated fairly and decently" we could make the world a better place.

[flagwaver]

I am so sick of hearing that all our problems are caused by the illegals.
How about looking at all the companies that have outsourced their jobs overseas. Good jobs such as reservations with airlines and car rentals. These used to be jobs that had decent pay and benefits.
Blame the corporations and their greed. I just called Washington Mutual banks 1800 number, something I do a couple times a week to check on my account. I noticed last week everytime I called the person had an accent. I finally asked where they were based and she said the Phillipines.
The corporations are getting away with "doing in America" and we are still crying and blaming the illegals.
Do something for America...,call Washington Mutual and complain. Do something for this country. Tell Washington Mutual happy Labor Day and thank them for taking jobs out of America.

[Quaoar]

"As a religious leader, I still foster the hope that a radical critique of a society organized around the worship of wealth and the heedless pursuit of wealth can emerge against all odds from faith communities taking seriously their own core teachings."

Nice sentiment, but many of your fellow Christians don't seem to feel that way. Change may have to come from outside of the communities of faith.

[CharliePfromHB]

The problems in Mexico "way" preceeded NAFTA. If you want to lift world economies, redefine the paradigms for our time...low cost, clean, energy and water. Yet, Oil is the leading industry in Mexico. Is it trickling down? Doesn't seem like it does it! Don't build walls, build economies. Whether it's the USA, Mexico, Russia, China, Saudi Arabia, or Pakistan, change the energy/water mix, economically, ecololgically, or politically and you will change the world. What about the corruption, cartels, military industrial complex and power of the status quo? If the needed populist movement rises up with their votes and consumer spending, the process of changing the mix will put all the issues in your face to deny or overcome. Core values insist on true free markets, and true freedom, and true morality, instead of the faux captialism and faux democracy being sold by the lobbyists for the status quo. So back to the basics. Do we want rising economies on both sides of our borders? Then insist on integrity within and between nations, and low cost, clean water and energy. This is because when you focus on those two resources, including it's implictions on world health, ecology, and yes even civil wars in Africa and elsewhere (ie. famine, energy, and control of resources), all the other issues, including the "Junk capitalism" promoted by the oligopolies that are manipulating politicians throughout the world, will come to the fore. Don't stare down NAFTA, stare down the denial and hypocrisy. Facing the reality that in a world approaching seven billion people, if we don't redefine the roads to the twenty first century, the paradigms of survival, and yes, economic growth, require clean, low cost, energy and water. Especially in the USA and Mexico. Who is the largest user of desalination
in the world? Saudi Arabia! Why? They need the water and they can afford the fuel. Where is civil war and miltarism producing genocide? East Africa! Why? Struggle for control over resources. Where is the US building a wall? Why? Back to the basics!

[mamacat]

Much of what you say is correct.

However, no matter what is done in Mexico to correct their problems, until something is done to allow and encourage the people to stop having so many babies, many of their problems will continue to be unsolvable.

We had a conversation with a distant relative who quit his civil service job in Mexico City. Part of his job was trying to deal with the hundreds of new-born babies that are abandoned everyday by the impoverished in the city. The young man was unable to find a way to keep more than a very few of the babies alive, and could not handle just watching them die, so he quit his job.

Along with all of the other problems in Mexico and other developing countries, the consequence of overpopulation is the elephant in the room that people don't like to talk about. If the very rapid growth in population could somehow morally be brought under control, it would should be possible to solve Mexico's economic, social, and political problems.

[shoelessjoe]

The Catholic Church doesn't allow birt control, what do you expect?

[swkidder]

Well there are voices like yours out there, and like Andy Stern's, and - God willing someday - enough others that we will begin a real discussion of what it will take to share the wealth we produce in this nation. I'm a business development consultant (primarily in healthcare) with a reasoned attachment to Triple Bottom Line ROI calculations - shareholders (includes employees), customers & "The Planet."
I've watched so many businesses run by men who just don't get it - selfishness and greed only seem to "work" in the short run. In the long run the thing that really does work is investing in our real values - sharing, connection, and some level of prosperity for everyone. Henry Ford had the model right back in the 20's and his vision remains the only attitude, intention, and approach that is capable of growing sustainable value in any business - whether that be for profit or not for profit. LOVE your piece.

[gobble]

I grew up middle class. My mother stayed home and my father sold furniture. There was always food on the table, a car in the driveway, and a roof over our heads. We ate in nice restaurants, bought nice clothes, and gave a lot of money to charity. My friends parents did the same. When I married, my first house was $30,000.00, my little Pinto cost me $2,000.00, I had no college tuition to pay back because my comfortable middle class parents paid the $2,000.00 per year to send me to college. Life was good. What happened?
I see mothers and fathers struggling with jobs and parenting. Though college educated, both family members must put their one and two year olds in day care and head off to work. And this is just to pay for the house, 200,000.00 plus, car 15,000.00 plus, and all the other necessities. What happened to our lives in this country. My heart goes out to the young generation trying to make a good life for themselves and their families.

And the Republicans call themselves the "family value" people. They revere the "stay at home moms". Yet they do nothing for these younger families. Health Care. Forget it. Not even for the children. Up the minimum wage. Forget it.

As others have commented, Many jobs are being shipped to New Delhi. And don't tell me that its only the lower paying jobs. Foreigners are handling our money, helping with our technology. We call them to straighten out our invoices, fix our computers, and many other types of needs. Don't tell me that these aren't at least 30-40,000 a year jobs that can't be given to our educated people in the US.

What happened to the Country I knew?

[FOXYLADY]

GOBBLE....what happened? "POLITICIANS AND POLITICS"...aaahhh, for the good old days. I remember the times when all were kinda poor during the 30's and we were really "happy" and helping each other...now it's dog eat dog as people have no time to feel for their neighbors as they fight to survive and take care of their families. Big government doesn't mean what it used to....it now just "politics as usual"

[EdwardUlyssesCate]

This article and the comments thus far are all well said. It is just that the majority has been lied to (by omission) for so long that only lying and stealing, and sometimes murder, is celebrated and rewarded. This allows sociopaths to control our destiny, rather than us control our own. This did not happen overnight. High positions of education, religion and government were sold out for a few dollars more. By their sociopathic efforts our own natural self-defense of mind, body and soul have been short-circuited. Once this is realized, and the majority says no more, things can change. Hopefully, we do not wake up too late and find the cage door welded shut. More is posted at GreatRedDragon.com and sincerely hope it helps.

[WOLFWARRIOR]

You boy's and girl's ever wonder what Jesus ment by - those who are first shall be last - and those that are last shall be first?

When something is built like a top - and becomes too heavy at the top - it will only spin till it fall's - and the bottom then becomes the top.

Look at most of the south american countries - they were built being top heavey - those at the bottom killed off - but they always still failed - and there gov's been replaced how many time's?

Now look at how soon iraq failed being top heavy.

Thats why the framer's built a balanced Constitution - but as weve seen it has been under attack the last 50 or so year's.

Now Mexico is doing the same thing - and the US is headed that way.

SO rejoice - soon it will be too top heavy - Then you can say mana from heaven - The top come's tumbling down..

[wild1a]

An excellent article and analysis of the excesses of unregulated capitalism and its' effects on our society. Only briefly, in the early part of the 20th century, were laws passed that benefited workers and were instrumental in generating a burgeoning middle class. Now our government panders to the wealthiest among us, neglecting to pursue avenues that would be beneficial to the majority and indeed, supporting policies that are predatory to the average member of society needing access to housing, education, medical needs, etc. In our government the emphasis on blind power gained through accomodating the desires of the wealthiest has replaced legislation of benefit to society as a whole. Ignoring the "masses" in the long run can be a dangerous game.

[FOXYLADY]

AAHH, WHY DID I WAKE UP THIS MORNING FEELING WORSE THAN EVER? TIME GOES SO QUICKLY AND OUR WORLD IS NOT GETTING ANY BETTER. EVEN IF THE NEXT PRESIDENTIAL ELECTION PUTS SOMEONE INTELLIGENT AND "FOR THE PEOPLE" IN OFFICE, HOW LONG WILL IT TAKE TO GET THE UNITED STATES OF AMERICA BACK ON TRACK? THIS OLD PERSON IS THINKING OF THE "FUTURE" OF OUR GRANDCHILDREN. IT IS TOO LATE FOR ME NOW, BUT I HOPE AND PRAY THAT THEIR FUTURE IS MUCH BETTER THAN THINGS ARE NOW WITH THIS BUSH ECONOMY AND THE TRAVESTY OF AN IRAQI WAR. WILL MY GRANDSONS HAVE TO FIGHT FOR THE FOOL BUSH'S AMBITIONS?

[glitzqueen]

The main problem with getting such a conversation going is that our corporatist media have a vested interest in avoiding it and continuing to mislead us (and let's remember media conglomeration, like NAFTA, was a Clinton gift).

As for people who are trying desperately to get the truth out, John Edwards, Dennis Kucinich and Bill Moyers spring immediately to mind. There are also plenty of bloggers (including myself) who've been raising hell about this issue regularly -- and, lamentably, talking to ourselves.

So what more can we do? Maybe we should start photocopying our blogs and putting them under windshield wipers outside WalMart.

[ihavenobias]

You're dead on about Clinton and media consolidation.

That's another issue progressives ignore or strangely seem to be unaware of when they recall how great Clinton was.

I'm referring to the Telecom Act of 1996.

[bernice14]

Rev. Laarman: It is the borrowers I too am most interested in. As a mother of a 26-year old and a lifelong educator delivering the message of the Framers that the key to a successful Democracy is an "educated electorate," I fear greatly for these 20-somethings and following generations. Obviously, since Reagan, the privatization of everything our Constitution holds dear has supported profits over people and country, and in turn CEO's and Shareholders over the people "under them" actually doing the work. It IS time to look at NAFTA, along with every other lobbyist-backed policy of the last 27 years, and hire (aka vote for) Senators and Representatives who will stand up for us and our children.

[rabun666]

Reagoon got his start in California by being anti-education. He gutted the University of Calif., once one of the great institutions of higher education in the world.Of course, being anti-education has great appeal in the south where education is disdained.With 30% of the population only Emory University's School of Divinity is ranked in the top 10 for the county. A common reply when posed the question "would you rather have an educated idiot or an uneducated idiot elected" the reply is to go for the uneducated idiot because their families are full of the uneducated. Is their any wonder why the country is such dire straits.

[Kendo Nagasaki]

Our whole educational system needs updating.

Why go to college?

You can get a degree online from home.

Why not ?

[FOXYLADY]

Kendo....have you checked into how much that on'line education costs??? It take thousands upon thousands of dollars to get a degree. Before you recommend doing so, get all the facts. My son is just finishing up a doctorate degree in education and will be paying for it for years on his "cards"....is now practice teaching but not making much at all....subbing pays only $10.00/hr. = less than a temp worker

[joekonn]

You can get a degree online, but you cannot duplicate a real education that way. Perhaps, that doesn't matter, no corporation is interested in having an educated work force, trained, but not educated. That is why corporations are run by Ivy Leaguers, but populated by graduates of local degree mills and soon by online degree holders.

[mamacat]

"A rising tide raises all boats equally."
What about those who can't afford to buy a yacht, and are trying to tread water? How does a rising tide help them?
Doesn't hyper- inflation, like we have experienced under the fiscally irresponsible Republicans, hurt those who cannot arbitrarily raise their own wages?
Are we still supposed to believe in the benefits of a trickle down economy, even when most investments from the super-rich are reported to be going overseas?
Thank you for a very thought provoking blog.

[rabun666]

You know that most American don't even realize the $dollar has been devalued 40% since Bush.

[FOXYLADY]

SO TRUE, RABUN666....the American middle class and working poor are getting royally screwed. They don't have the time or energy to, most times, read the paper or just relax watching TV. Too many have two jobs and have families to take care of when they come home from working a poor paying job. Damn Bush and all his minions...AAHHH FOR THE GOOD OLD CLINTON DAYS!!!!!!!!