Thoughts on the Senate Passage of the Tax Cut Bill

The mechanics of an advanced capitalist economy hold a number of important contradictions within them that make it likely that economic growth (in this country) will continue to slow down, that fewer workers will be desired (here) by capitalist enterprises, more mechanization, computerization will replace workers, that wages will continue to stagnate or even decline. These changes are embedded in the essential nature of unfettered capitalism, and can only be altered by choosing to modify capitalism, to make decisions based on human welfare and NOT on profit (the essence of capitalism). 

There is also an essential contradiction between the need for a capitalist enterprise to grow, expanding markets and demand, and the finite nature of material resources. Moreover, that growth and expansion coupled with short-term profitability decisions, increasing the level of waste and its attendant pollution. Growth is an inherent requirement of capitalism and it cannot continue forever in a finite reality. So, therefore, capitalism cannot continue forever in a finite reality. 

Somewhere in our countries future we will hit a series of "walls" - a point at which standards of living have eroded past what is tolerable to maintain a free society, where environmental degradation (including global warming) will begin taking an even greater toll than it already does (wildfires, floods, hurricanes, extreme weather events). 

If we were to moderate our economic system now, make progressive changes that provide more (rather than less) support for the poor, the middle class, improve health care access, improved educational access, put people to work doing things that need doing rather than just what is profitable for investors (like we did during the Great Depression), we might possibly create a people and a society that will have the resilience needed to survive the shocks that our economy and environment will inevitably throw at us. 

But instead we have a government today, that is engaging in firesale tactics. We're stripping away supports and safety nets, not enhancing them. What I fear is that even if years from now we do elect people with a better vision, it will be too late. We will hit those "walls" full speed, head on and be smashed to bits as a society. 

That, unfortunately, is my vision for this countries future.

Zombie America - Installment 7

It appears that economists have finally glommed on to something that sociologists have been talking about for 30 years: the middle class is disappearing and there is a great divide between haves and have-nots in America. 

MIT economist Peter Temin is getting rave reviews for his new book The Vanishing Middle Class: Prejudice and Power in a Dual Economy. While Temin certainly has some updated data, the phenomenon he is describing- the hollowing out of the American middle class and the increasing divide between affluent and those scraping by - has been in progress for decades at least since the deindustrialization of American began in earnest in the late 1970's. Sociologist Katherine Newman aptly described the early stages of the decline of the middle class in Falling From Grace: Downward Mobility in the Age of Affluence in the 1980's.

Many social scientists, policy makers, and politicians have noted the decline of the "rust belt," but blithely assumed that new industries (especially in high tech fields) would replace the older manufacturing centers. They offered up condolences to industrial communities devasted by the closing of steel mills, automobile factories, and coal mines, but have done little of substance to change the decline of those communities.  The old economy workers who cannot be retrained for the new economy are members of the "unnecessariate" - disposable people who do not figure as workers in the new economy but become the fodder for the careers of law enforcement, prison guards, social workers, doctors, and therapists.  It is not terribly surprising that so many of them voted for the one politician that appeared to care about them, speak to them directly, and tell them they were worth something.

The cavalier abandonment of so many small cities and towns in America, who have not made the transition to the new economy is a major indicator of the rot in our society.  However, the real problem is that the new economy itself is divisive and destructive to American society.

Seattle with its booming tech/internet economy is an excellent example of how economic success contributes to the increasing divide in American society. Not all of the jobs of the new economy are "good" jobs - lots of lower paid, dead end warehouse and service sector jobs come out of the same economic developments that provide high paying tech jobs. Moreover, influxes of higher paying jobs can push up housing costs, tax rates, strain transportation, and other public services, increasing the cost of living on those who do not have the "good" jobs.  Nestor Ramos, a Boston Globe reporter describes the benefits and pitfalls of a booming high tech economy. An article intended as a cautionary tale to those communities that might be bidding for a new Amazon headquarters.