Star Trek Economics

 

Today, while shoveling, I heard Paul Ryan condemn Obamacare because it would give people more freedom to choose whether or not to work, and how many hours.

When I came in from shoveling, my sister Yael Fischman had shared this article with me about an economy where no one actually has to work.

I want to live in the Federation!

https://medium.com/editors-picks/29bab88d50

Social Cohesion: It's a Gift

Marcel Mauss' classic The Gift is a time capsule left to us from another era, and yet it is still widely quoted today. I think there are two types of people who cite its authority. 

The cynics take Mauss to be saying that there are no disinterested gifts: that all presents and sacrifices are intended to show off the giver's power and put the recipient in the  giver's  debt.  You can find traces of this argument in the book, certainly.  But Mauss would say that this is missing the point, and missing it in a way that's peculiar to modern society.

His larger argument is that gift-giving is not at base a personal but a social act.  In what he calls "archaic societies," that is self-evident.  People in those societies are engaged in a constant circulation of gifts.  Sometimes it is cooperative and friendly.  Sometimes it is competitive and even aggressive.  Often, it is both.  But the expectation that gifts will be given, accepted, and reciprocated binds people together.  Mauss insinuates that we still act like that in our supposedly individualistic societies much more than we let on...and to the extent that we have abandoned the ways of earlier social systems, he thinks we ought to see about bringing them back.

Socialists have liked Mauss' book for its insistence that the self-interested, calculating actor in the dramas written by economists is a recent invention.  That implies to some (including Mauss) that we could easily reinvent ourselves.  To me, that is far too optimistic.  Social change does not happen just because people like old ways better.  The ways we live, we are forced to live by the institutions we have to live under.  But at least it gives the lie to the ideology that people just have to be motivated by economic self-interest now and forever.  "Cast thy bread upon the waters and it shall return to thee in many days" is not a business plan.  It is a hopeful moral statement about how we should live.

So When IS the Right Time?

You may have noticed a certain audacious argument coming from elite circles about why we shouldn't be letting the Bush era tax cuts expire. The argument is that in the middle of a recession, it's the wrong time to ask people (even very rich people) to pay more in taxes. They need to have more cash in hand so as to spend more, which means industry will produce more, which means they'll hire more people...a virtuous circle leading to economic recovery.

It's funny how corporations, bankers and politicians who used to think they could control the economy simply by raising or lowering interest rates have rediscovered John Maynard Keynes just when they might have to fork over more in taxes. But the audacity of the argument is that it can be used at any time. If we are in recession, we don't want to raise taxes lest it make things worse. If the economy is improving, that's the wrong time, too: do you want to choke off the recovery before it really takes effect? And if the economy is going great guns, why raise taxes and ruin the great thing you've got going? It's as if the whole purpose of government were to avoid taxing people--not to spend taxes wisely for the public good.

Now we are hearing a similar argument about putting people out of work. It seems it's always a good time to "downsize" and never a good time to make sure more people have jobs. "That's the story at State Street Corp., which recently announced the elimination of 1,400 jobs, including 400 in Massachusetts. Those jobs are gone, even though State Street last reported profits of $427 million, up about 20 percent from a year ago," reports Joan Vennochi in the Boston Globe.

There's a word for this in Yiddish: chutzpah. The old joke said that chutzpah means murdering your parents and asking the court for mercy because you're an orphan. The new joke is the chutzpah of corporate fat cats who justify their huge profits because they "give us jobs"--and then increase their profits by taking those jobs away.

Happy New Year

Hello again. I haven't been posting very much this past year, and not at all in the last few months. That's partly because it's been the busiest year of my life at work. Because of thre recession and because of economic stimulus funding, we've been able to add new programs and help many more people who were about to lose their homes, or who needed food stamps and fuel assistance to make sure they could both heat and eat...or who took the longer view and enrolled in our job readiness course, believing that sooner or later, jobs would be available again. That's all to the good, of course--but it has meant I have personally been responsible for submitting four times as many reports to Washington as in 2008. I came home each day and felt more like going to bed than like writing a blog.

I have to admit, though, that what really held me back was the sinking feeling that nobody was listening. I am not so vain, or so enamored of the sound of my own voice, as to send my words out to the blogosphere just for my own satisfaction. Making a difference has always been my passion. Feeling as if I made no difference whatever has kept me from trying, and therefore, I failed to make the small impact it is in my power to make. I am sorry for that. I will try to do better.

I feel a little bit like Peter Pan asking this, but if you want to see more writing from me, please clap your hands--I mean, show your support. Comment on what I've written. Repost pieces you think your friends will want to read. Keep the conversation going. As we begin a new school year and a new year on the Jewish calendar, I hope we can write a new chapter in this book of life.

The Real Economy is People

Note: This entry first appeared as a column in the Somerville Journal.

They say the economy is improving. But you can’t tell it by Anne.

Anne is a graphic designer in her mid-50s. She has made her own living all her life, either in her chosen field or in general office work. She hasn’t been able to find a steady job for the past year. Anne came to the Community Action Agency of Somerville (CAAS), the anti-poverty agency where I work, to apply for the Supplemental Nutrition Assistance Program, or what most of us still call “food stamps.” She was denied. Having a little bit of savings for her retirement meant Anne was poor, but not poor enough for benefits.

They say the economy is improving. But you can’t tell it by Matt.

Matt is one year out of college with a degree in mathematics. He is working in a corporate mailroom, as a temp. Matt has the skills to do a lot more. His first temp job had him troubleshooting a web site designed to let middle school students study math at their own pace. He had hoped a few months’ temp work would put him in line to use his skills in a permanent entry-level job. No one was hiring. For now, he is sorting the mail.

They say the economy is improving. But you can’t tell it by the Blanco family.
Antonio and Maria Blanco have lived in Somerville since 1988. They have gone to church here and raised their three children here. They both commute into Boston where he works as a janitor and she as a nurse’s aide. Two full-time jobs are not enough to support a family in Somerville. So, four nights a week, Antonio comes home for dinner and a quick hello to his children. Then he heads out again to his second job as a night watchman in an office building. With two-and-a-half full-time jobs, the Blancos are still living at the poverty level.

For whom is the economy improving? Not for tenants living in buildings where the owner can’t pay his mortgage and the bank is taking over and evicting the tenants. Not for disabled people, who have a harder time finding work than average even when the economy is sound. Not for most of the people we call our neighbors. A few are fortunate to work in high-income jobs. Most are struggling to get by.

At CAAS, we are on the side of the struggling. We can help people narrow the gap between what they have and what they need, with services like job readiness training, housing and benefits advocacy, and early childhood education and daycare through our Head Start program. But human service agencies cannot do it alone. If life is really going to improve, all of us, in Somerville and across the country, have to change the way we think about “the economy.”

The real economy is not corporations, nor the stock market, nor the price of real estate. The real economy is people. How many people have jobs that pay a living wage? How many families can pay for the necessities of food, clothing, shelter, healthcare, transportation and childcare without working all day and all night? Who has a sense that they really belong, as a respected member of this community? Who can look forward to a better future?

These are the questions we must ask ourselves. These are the goals we should set for our city and our country. We will know we live in a better economy when the answer to each question is, “We are all doing better, together.”

Recession-proof but Not Bullet-Proof

In a recession, there are certain things people do to get by. They pinch pennies. They leave the work force and take the time to get more education. They go into the military.

One of these things is not like the others.

When you cut back on spending, it slows the economy down even further. Eventually, though, the economy recovers and you have more savings (or less debt).

Similarly, going to grad school during a recession takes you out of the work force at a time when there's less demand for workers. When demand picks up again, you have more knowledge and better credentials. You might be able to get a better job.

When people went into the military for the war in Iraq, as previously pointed out in this blog:

Young Americans came home with grave mental health problems.

The military tried its best to deny them medical coverage.

Many had problems adjusting to nonviolent civilian life.

Vets came home with Post-Traumatic Stress Disorder. They will be at greater risk for heart attack than the rest of us as they grow older.

The military also tried to cheat returning veterans out of their costly GI benefits, or "bait and switch," giving vets much less than they were promised when they joined.

Women in the military were sexually harassed and, too often, raped by their fellow soldiers.

KBR, a Halliburton subsidiary, exposed soldiers to sodium dichromate, "one of the most potent carcinogens" known to man while they guarded a water treatment plant in Iraq that the company was repairing.

Military contractors suffered the same mental and physical wounds as soldiers.

"Typically a bad economy has worked to the benefit of the military," retired Navy Rear Admiral John D. Hutson told the Boston Globe. But it's worked to the injury of the people who joined the military.

Interpreting the Dream Today: Joseph in Egypt and Obama in the White House

The leader of a great and powerful nation looks ahead and sees economic disaster looming. He searches for an adviser who can help him create sweeping change and provide hope to the land. The qualifications of the person he elects are 1) that he has shown good judgment before in interpreting visions of life and death, and 2) that he comes from a group that was previously denigrated and despised in his country--to the point that the majority would not even sit down and eat with them at the same table.

This is the story of Joseph in Egypt, too.

In Parshat Miketz, which we read in synagogue a few weeks ago, the Pharaoh (or king) has a dream that seven fat cows are feeding by the great river of Egypt--and seven lean, emaciated cows come and swallow them up. He has the same dream again, only with ears of corn instead of cattle. The only one who can make sense of his dreams is Joseph, the enslaved Hebrew being held prisoner in Pharaoh's dungeon. Pharaoh's butler had met Joseph in prison, when he had been sent there in political disgrace, and Joseph had correctly predicted his return to a position of influence.

On the butler's recommendation, Pharaoh listened to Joseph's dream interpretation: that seven years of prosperity would be swallowed up by seven years of famine, and that it was time to begin preparing now. Pharaoh makes Joseph his famine czar: "Thou shalt be over my house, and according unto thy word shall all my people be ruled; only in the throne will I be greater than thou."

Barack Hussein Obama is the Joseph who has become the Pharaoh. After the eight relatively fat years of the Clinton administration, we have seen eight lean years, all of which were recession years for the poor of this country (and disasters for our rights and liberties). Obama famously showed good judgment in denouncing the Iraq war. Since his father was from Kenya and his wife's family includes the descendants of slaves, he is also associated with African Americans, who have not had such influence in Washington since the days of Reconstruction. Joseph (for good and for ill) centralized control at the national level. Obama promises to move in that direction too.

As an American Pharaoh who has been treated as a god by many of his followers to date, will Obama choose his own advisers as well as the Egyptian Pharaoh did? His appointments do not look promising. On foreign policy, many of them are the same people who helped George W. Bush get us into Iraq in the first place. On economic policy, they are the same people who helped Bill Clinton fritter away America's "social contract with its citizens," leading us to the awful state we're in.

The best we can hope for is that Obama will challenge his inner butler. He must remember where he came from--a community organizer who spent time with average people in the prison of poverty--and listen to the voices that tell him, "Make mention of me unto Pharaoh, and bring me out of this house."

The best we can do is to organize, pressure him, and make it so. Pharaoh cannot be Moses, and Obama cannot be a movement leader from the White House. We need to lead from here.