News Dump Wednesday: You've Got The Economy Backwards Edition

Robots aren't coming for your shitty job

As the New York Times's Neil Irwin points out, this is not just a left-wing diagnosis -- the Hoover Institution and the American Enterprise Institute also recently published studies claiming that growth had been stymied by a lack of investment in automation.

Mr. Mason adds that this idea has some big implications for how to think about growth in worker compensation in the current economic environment. There has been a glaring contradiction around how much American workers’ wages can, or should, be rising.

“On Mondays and Wednesdays, economists argue that wages are low because robots are taking people’s jobs. On Tuesdays and Thursdays, it’s that we can’t have wages rise because productivity growth is low,” said Mr. Mason, an economist at John Jay College. “Both can’t be true.”

In other words, instead of worrying so much about robots taking away jobs, maybe we should worry more about wages being too low for the robots to even get a chance.

You are too poor to save the planet

If you’re not rich, Roberts concludes, the best thing you can do for the planet is get together with other people and try and change policy and elect people to office who aren’t in bed with the fossil fuel industry, among other things. Thinking about lifestyle choices really only makes sense, then, if you add an understanding of class politics into the mix.

To really get this, it’s important to state just how skewed responsibility for the climate crisis—like most other societal crises—really is. A Carbon Majors Report recently found that just 100 companies have been responsible for some 71 percent of global emissions since 1988. 71 percent.
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As the Carbon Majors Report underscores, though, we arrived at the place we are now thanks to the actions of a small and incredibly wealthy substratum of the population and their control over the economy’s modes of production, which define how we live and work and consume. Many people worldwide and in our own country simply don’t consume enough for their lifestyle choices to matter. As climate scientist Kevin Anderson puts it, “By the time the poor have sufficient income to use lots of energy, the transition to a low-carbon energy system will need to have been completed.” That we’re all somehow failing to do our part is a convenient narrative to the small minority of people who are actually responsible for fueling this crisis. Climate change is already hitting the people who’ve contributed least to it, and whose living standards and levels of consumption should increase rather than decrease.

“Eco-consumerism may be able to expiate your guilt. But it’s only mass movements that have the power to alter the trajectory of the climate crisis,” Guardian writer Martin Lukacs argued this week. “This requires of us first a resolute mental break from the spell cast by neoliberalism: to stop thinking like individuals.”

Danger of exposing the unemployment rate lie

Unemployment in Britain is now just 4.5%. There are only 1.49 million unemployed people in the UK, versus 32 million people with jobs.

This is almost unheard of. Unemployment was most recently this low in December 1973, when the UK set an unrepeated record of just 3.4%.

The problem with this record is that the statistical definition of "unemployment" relies on a fiction that economists tell themselves about the nature of work. As the rate gets lower and lower, it tests that lie. Because — as anyone who has studied basic economics knows — the official definition of unemployment disguises the true rate. In reality, about 21.5% of all working-age people (defined as ages 16 to 64) are without jobs, or 8.83 million people, according to the Office for National Statistics.

We are all passionate quitters now

In the early 1990s, career advice in the United States changed. A new social philosophy, neoliberalism, was transforming society, including the nature of employment, and career counsellors and business writers had to respond. The Soviet Union had recently collapsed, and much as communist thinkers had tried to apply Marxist ideas to every aspect of life, triumphant US economic intellectuals raced to implement the ultra-individualist ideals of Friedrich Hayek, Milton Friedman and other members of the Mont Pelerin Society, far and wide. In doing so for work, they developed a metaphor – that every person should think of herself as a business, the CEO of Me, Inc. The metaphor took off, and has had profound implications for how workplaces are run, how people understand their jobs, and how they plan careers, which increasingly revolve around quitting.
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In a way new to the world, and begun by the re-orientation of companies to maximise shareholder value, quitting work is now central to what it means to have a job in the first place. People apply for jobs with the conscious plan to quit, with an eye toward what other jobs the job for which they are applying might help them get. Managers welcome new employees by promising to position them as advantageously as possible to quit in a few years. Co-workers, the ones who like you, are now hoping you will quit – since if you do, you might help them get a good job somewhere else. As is often the case, history brings unintended consequences, even to doctrinaire and theoretical ideas. Hayek’s philosophy has led to workers thinking of themselves as the CEO of Me, Inc; and to survive in the neoliberal world of work, the CEO of Me, Inc must be a quitter.

They didn't privatize hope

Remarkably, this generation—raised, educated, and shaped to neatly fit what Zygmunt Bauman calls “individualized society”—is thinking, aspiring, and acting collectively. They are repudiating spurious but once-galvanizing Reaganite claims to limited government and personal responsibility, turning their backs on Margaret Thatcher’s goal of replacing the “collectivist society” with a “personal society.” In the latest election, the new social democrats/democratic socialists demonstrated that three decades of concerted effort have not changed “the heart and soul of the nation” in quite the way that Thatcher wished for.

They were brought up to be self-seeking entrepreneurs, not to feel responsible for each other. They were primed to accept that every last corner of the world, and their own lives, would be organized by the logic of the market. They were taught to see social contradictions as personal, not political problems—to live by Thatcher’s dictum that “there are individual men and women and there are families…. There is no such thing as society.” Yet, instead of becoming cynical free agents, young people are drawn to the sincerity of Corbyn and Sanders. Against the flashy marketing of their opponents, these men express the humility of old-fashioned values such as fairness and equality. As recent surveys show, young people raised to ensure capitalism’s future have become deeply skeptical of it and many are instead drawn to something called “socialism.”

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Pricknick's picture

by convincing them that "socialism" was a bad word.
g john, I understand why they told you to sit down while all you did was highlight the bullshit.
What a bad, bad person you are.
This dab's for you.

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Regardless of the path in life I chose, I realize it's always forward, never straight.

snoopydawg's picture

The comments on my local news website are highly against the government being involved with our health care. They say that all that's needed is for the free market to have control and insurance rates will go down.
And they constantly say that any form of government health care is a form of socialism that is bad for people. "Just look at how long people in countries that have socialized health care have to wait for surgery or any other treatment.
The Canadians come to our country to get treatment because the wait times are so long".
I have no where they get that information unless they are only repeating what they have heard others say it and they believe it's true.
People can point out all the things that are "socialized" and they still won't believe that it's good for us.

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Which AIPAC/MIC/pharma/bank bought politician are you going to vote for? Don’t be surprised when nothing changes.

thanatokephaloides's picture

@snoopydawg

"Just look at how long people in countries that have socialized health care have to wait for surgery or any other treatment.
The Canadians come to our country to get treatment because the wait times are so long".

1: False, as I'm sure you know, snoopydawg!

2: Not only are we not flooded with Canadians coming to our country to get treatment. but we're also not being inundated by Brits, Cubans, French, Germans, Bolivians, Swedes, Norwegians, Danes, Mexicans, or Costa Ricans to get medical treatment either.

It's all about Big Insurance's profits. Nothing else.

Diablo

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"US govt/military = bad. Russian govt/military = bad. Any politician wanting power = bad. Anyone wielding power = bad." --Shahryar

"All power corrupts absolutely!" -- thanatokephaloides

@thanatokephaloides
the US for healthcare is the implication that Canadians are so fucking rich that a meaningful number of them can drop a hundred grand on an uninsured coronary bypass.

sure, i believe that there are wealthy Canadians who "barge the queue" by paying for American surgery. from the perspective of the 99%, that's not a feature of the American system, it's a flaw -- the rich can afford what they want when they want, and the rest be damned.

there's nothing wrong with Canadian healthcare that wouldn't be solved by driving the conservatives into the political wilderness, where they could not longer beaver away at the task that as absorbed them for over 50 years now: destroying the single payer system.

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The earth is a multibillion-year-old sphere.
The Nazis killed millions of Jews.
On 9/11/01 a Boeing 757 (AA77) flew into the Pentagon.
AGCC is happening.
If you cannot accept these facts, I cannot fake an interest in any of your opinions.

@snoopydawg Not claiming to be an expert, but I have the benefit of having had this conversation with friends from countries with socialized medicine. They aren't wealthy by any means but they have much better care than I do by a large margin.

When I mention that to people repeating the stock lines and ask them if they have ever had a conversation with someone living in a country with socialized medicine, well, you can guess how that goes.

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Idolizing a politician is like believing the stripper really likes you.

@Dr. John Carpenter this article a while back (not even going to attempt to find it now). It was about a couple in England (or maybe it was France, not sure). She was from there and he was an American there on some kind of temporary basis for work.

They were on a weekend getaway in a different part of the country from where they lived and the guy realized he forgot his meds (it was some important daily med like blood pressure or thyroid, something that can't be missed).

Their hotel happened to be right across the street from a giant hospital.

HER: Oh great, there's a hospital right there. You can just go get a few of your pills to hold you over until we get home.

HIM: What are you talking about!? You can't just walk into a random hospital and get 3 pills.

They went back and forth for awhile, and each thought the other's take was ridiculous.

HER: It's a huge hospital, it's only 3 stupid little pills you need, you know they have them there. Why wouldn't they give them to you!?

HIM: I'm not a patient there, my doctor isn't there. They don't know me. You think they're just going to let some random guy walk in just to get three pills?

Imagine the world of shit you'd have to go through in the U.S. if you live in LA and find yourself in Boston without your pills. You'd spend most of your vacation on the phone talking about in-network vs. out-of-network and who your primary doctor is and blah, blah, blah. Your best bet would probably be to go to an urgent care, get a doctor to believe you're actually on this medication, get him to write a perscription for 3 pills, and bypass your insurance company by paying cash for everything.

So back to the couple. Of course she was right. They went into the hospital, started at the Information window and explained the situation. His ID was checked, his prescription verified, and 3 pills were dispensed to him at the pharmacy window a few feet away. The cost was nominal and they were in and out of the giant hospital in 15 minutes.

What happens talking to people from other countries about the US health care system is that they are completely baffled by it. It doesn't make any sense to them. "Wait, so your doctor says you need it but he can't give it to you until somebody else who is not your doctor approves it?"

It doesn't make any sense to them because it doesn't make any sense. We're the warped ones.

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Lily O Lady's picture

@Dopeman

visiting our daughter in Texas. He realized he forgotten his meds among them his blood-thinner which he's taking for Deep Vein Thrombosis. He tried getting Express Scripts to send him enough medicine to tide him over until we returned home. While advising him not to stop taking his blood-thinner nor his blood pressure med, they couldn't get medicine to him in time for him to keep up the dosage. Luckily, our son was still at home and overnighted his meds to us.

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"The object of persecution is persecution. The object of torture is torture. The object of power is power. Now do you begin to understand me?" ~Orwell, "1984"

@Dopeman who went to Italy and the wife had forgotten her insulin. They had to get it and so they found a pharmacy, took all of about 20 minutes and cost less than in the US. I don't think they've quite made the connection yet, but the wife did comment how painless that was. And how surprising it was that it was that easy.

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Only a fool lets someone else tell him who his enemy is. Assata Shakur

k9disc's picture

The article from the last link was pretty enlightening to me.

When you're training a critter using positive and reinforcement and environmental management a key element is to allow the critter to choose. That concept of choice, skillfully offered, creates a critter that believes they are in control.

The decisions are always something like,"You can do what I want and get this fat piece of steak, or you can do whatever you want and get nothing. The choice is yours..." or "You can vote for Hillary or Drumpf."

But Hillary vs Drumpf was desperate. When a handler gets desperate, the choices and behaviors cease to be real or bonafide. The train becomes a joke and the critter disengages. The more frantic and arm wavy the handler gets, the more desperate they look.

I think to the newly trained, the handlers are looking mighty desperate -- they are looking that way to me.

Super interesting.

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“Tactics without strategy is the noise before defeat.” ~ Sun Tzu

CB's picture

have no qualms about socializing funding for national "security" to the tune of over ONE TRILLION dollars per year. In contrast, funding for healthcare, infrastructure repair, education and other social needs is hotly contested and usually gutted if they do gain a modicum of traction.


The Hidden Costs of “National Security”

Ten Ways Your Tax Dollars Pay for War -- Past, Present, and Future
William Hartung • July 25, 2017

You wouldn’t know it, based on the endless cries for more money coming from the military, politicians, and the president, but these are the best of times for the Pentagon. Spending on the Department of Defense alone is already well in excess of half a trillion dollars a year and counting. Adjusted for inflation, that means it’s higher than at the height of President Ronald Reagan’s massive buildup of the 1980s and is now nearing the post-World War II funding peak. And yet that’s barely half the story. There are hundreds of billions of dollars in “defense” spending that aren’t even counted in the Pentagon budget.

Under the circumstances, laying all this out in grisly detail — and believe me, when you dive into the figures, they couldn’t be grislier — is the only way to offer a better sense of the true costs of our wars past, present, and future, and of the funding that is the lifeblood of the national security state. When you do that, you end up with no less than 10 categories of national security spending (only one of which is the Pentagon budget). So steel yourself for a tour of our nation’s trillion-dollar-plus “national security” budget. Given the Pentagon’s penchant for wasting money and our government’s record of engaging in dangerously misguided wars without end, it’s clear that a large portion of this massive investment of taxpayer dollars isn’t making anyone any safer.
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Here's what these tax dollars paid for. The ONLY fucking thing America is now exceptional at is destruction.

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as if it were a religious creed, or an indisputable principle like the second law of thermodynamics. Meanwhile paying little or no attention to the actual, and obviously devastating effects of unrestrained capitalistic rapaciousness. They sincerely believe that "The Free Market" describes a purely natural process, as innocently impartial as the force of gravity, and as universally beneficial to humankind as the water of life itself. This doctrine insists that "The Market" constitutes a sort of semi-divine force, or even a makeshift god-principle perhaps, that must inevitably direct the sum of human affairs to an optimal conclusion.

This touching Faith is somewhat akin to Joseph Smith's teaching that every devout Mormon man will be blessed with an entire planet all for himself after he dies. It's a very pleasant, and often useful expectation, but it bears no relation whatsoever to factual reality. Likewise "The Free Market" is an attractive fiction that does not in fact exist, and never has existed. Markets of all kinds have always been defined and delimited by forces that have nothing to do with open competition, and whatever "freedom" they have enjoyed has always been more or less rigorously circumscribed. This is as true today as it ever was. Nonetheless, the mythology surrounding A Free Market persists, long after what should have been its its "sell by" date.

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native

@native that every person who ever lived will be brought back to learn Jehovah's truth and if they accept it, will live forever in the new earthly paradise!

Just think about the logistics of that belief. How many people could a planet this size support, even if everything was perfect? No relation to reality here either.

Sigh.

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Yaldabaoth, Saklas I'm calling you. Samael. You're not alone. I said, you're not alone, in your darkness. You're not alone, baby. You're not alone. "Original Sinsuality" Tori Amos

@Dark UltraValia
and then convince enough people that they can get a piece of it, you'll be on your way to fame and fortune. Maybe Capitalism isn't quite as crazy as Jehovah's Witnesses or Scientology, but it's not exactly rational either.

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native

@native Smile

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Yaldabaoth, Saklas I'm calling you. Samael. You're not alone. I said, you're not alone, in your darkness. You're not alone, baby. You're not alone. "Original Sinsuality" Tori Amos