A bloated overclass can drag down a society as surely as a swelling underclass. A great deal of the wealth at the top is built on the low-wage labor of the poor.
June 13, 2007
By Barbara Ehrenreich
Twenty years ago it was risky to point out the growing inequality in America. I did it in a New York Times essay and was quickly denounced, in the Washington Times, as a “Marxist.” If only. I’ve never been able to get through more than a couple of pages of Das Kapital, even in English, and the Grundrisse functions like Rozerem.
But it no longer takes a Marxist, real or alleged, to see that America is being polarized between the super-rich and the sub-rich everyone else. In Sunday’s New York Times magazine we learn that Larry Summers, the centrist Democratic economist and former Harvard president, is now obsessed with the statistic that, since 1979, the share of pretax income going to the top 1 percent of American households has risen by 7 percentage points, to 16 percent. At the same time, the share of income going to the bottom 80 percent has fallen by 7 percentage points.
As the Times puts it: “It’s as if every household in that bottom 80 percent is writing a check for $7,000 every year and sending it to the top 1 percent.” Summers now admits that his former cheerleading for the corporate-dominated global economy feels like “pretty thin gruel.”
But the moderate-to-conservative economic thinkers who long refused to think about class polarization have a fallback position, sketched out by Roger Lowenstein in an essay in the same issue of the New York Times magazine that features Larry Summers’ sobered mood.
Briefly put: As long as the middle class is still trudging along and the poor are not starving flamboyantly in the streets, what does it matter if the super-rich are absorbing an ever larger share of the national income?
In Lowenstein’s view: “…whether Roger Clemens, who will get something like $10,000 for every pitch he throws, earns 100 times or 200 times what I earn is kind of irrelevant. My kids still have health care, and they go to decent schools. It’s not the rich people who are pulling away at the top who are the problem…”
Well, there is a problem with the super-rich, several of them in fact. A bloated overclass can drag down a society as surely as a swelling underclass.
First, the Clemens example distracts from the reality that a great deal of the wealth at the top is built on the low-wage labor of the poor. Take Wal-Mart, our largest private employer and premiere exploiter of the working class: Every year, 4 or 5 of the people on Forbes magazine’s list of the ten richest Americans carry the surname Walton, meaning they are the children, nieces, and nephews of Wal-Mart’s founder.
You think it’s a coincidence that this union-busting low-wage retail empire happens to have generated a $200 billion family fortune?
Second, though a lot of today’s wealth is being made in the financial industry, by means that are occult to the average citizen and do not seem to involve much labor of any kind, we all pay a price, somewhere down the line. All those late fees, puffed up interest rates and exorbitant charges for low-balance checking accounts do not, as far as I can determine, go to soup kitchens.
Third, the overclass bids up the price of goods that ordinary people also need — housing, for example. Gentrification is dispersing the urban poor into overcrowded suburban ranch houses, while billionaires’ horse farms displace the rural poor and middle class. Similarly, the rich can swallow tuitions of $40,000 and up, making a college education increasingly a privilege of the upper classes.
Finally, and perhaps most importantly, the huge concentration of wealth at the top is routinely used to tilt the political process in favor of the wealthy. Yes, we should acknowledge the philanthropic efforts of exceptional billionaires like George Soros and Bill Gates.
But if we don’t end up with universal health insurance in the next few years, it won’t be because the average American isn’t pining for relief from escalating medical costs. It may well turn out to be because Hillary Clinton is, as The Nation reports, “the number-one Congressional recipient of donations from the healthcare industry.” And who do you think demanded those Bush tax cuts for the wealthy — the AFLCIO.
Lowenstein notes, that “if the very upper crust were banished to a Caribbean island, the America that remained would be a lot more egalitarian.”
Well, duh. The point is that it would also be more prosperous, at the individual level, and democratic. In fact, why give the upper crust an island in the Caribbean? After all they’ve done for us recently, I think the Aleutians should be more than adequate.
June 29, 2007
The Supreme Court ruled 53 years ago in Brown v. Board of Education that segregated education is inherently unequal, and it ordered the nation’s schools to integrate. Yesterday, the court switched sides and told two cities that they cannot take modest steps to bring public school students of different races together. It was a sad day for the court and for the ideal of racial equality.
Since 1954, the Supreme Court has been the nation’s driving force for integration. Its orders required segregated buses and public buildings, parks and playgrounds to open up to all Americans. It wasn’t always easy: governors, senators and angry mobs talked of massive resistance. But the court never wavered, and in many of the most important cases it spoke unanimously.
Yesterday, the court’s radical new majority turned its back on that proud tradition in a 5-4 ruling, written by Chief Justice John Roberts. It has been some time since the court, which has grown more conservative by the year, did much to compel local governments to promote racial integration. But now it is moving in reverse, broadly ordering the public schools to become more segregated.
Justice Anthony Kennedy, who provided the majority’s fifth vote, reined in the ruling somewhat by signing only part of the majority opinion and writing separately to underscore that some limited programs that take race into account are still acceptable. But it is unclear how much room his analysis will leave, in practice, for school districts to promote integration. His unwillingness to uphold Seattle’s and Louisville’s relatively modest plans is certainly a discouraging sign.
In an eloquent dissent, Justice Stephen Breyer explained just how sharp a break the decision is with history. The Supreme Court has often ordered schools to use race-conscious remedies, and it has unanimously held that deciding to make assignments based on race “to prepare students to live in a pluralistic society” is “within the broad discretionary powers of school authorities.”
Chief Justice Roberts, who assured the Senate at his confirmation hearings that he respected precedent, and Brown in particular, eagerly set these precedents aside. The right wing of the court also tossed aside two other principles they claim to hold dear. Their campaign for “federalism,” or scaling back federal power so states and localities have more authority, argued for upholding the Seattle and Louisville, Ky., programs. So did their supposed opposition to “judicial activism.” This decision is the height of activism: federal judges relying on the Constitution to tell elected local officials what to do.
The nation is getting more diverse, but by many measures public schools are becoming more segregated. More than one in six black children now attend schools that are 99 to 100 percent minority. This resegregation is likely to get appreciably worse as a result of the court’s ruling.
There should be no mistaking just how radical this decision is. In dissent, Justice John Paul Stevens said it was his “firm conviction that no Member of the Court that I joined in 1975 would have agreed with today’s decision.” He also noted the “cruel irony” of the court relying on Brown v. Board of Education while robbing that landmark ruling of much of its force and spirit. The citizens of Louisville and Seattle, and the rest of the nation, can ponder the majority’s kind words about Brown as they get to work today making their schools, and their cities, more segregated.
plus:
Failed States Index Scores 2007 from the Fund For Peace… it’s instructive to note that the United States is not in the “Sustainable” category, but in the “Moderate” category… i bet most people you ask wouldn’t know that…
I have, and read most of them. Having a government that ignores the law, even as it is sworn to execute it faithfully, does not make for even a republic. It’s certainly not representing the people. Perhaps it is a republic of corporations now, then…?
see my previous entry for more reasons why this is happening… 8P
Isn’t it nice to know that our neighbor to the north is considered more sustainable than us?
With the way that certain amendments have been passing in the states, I guess the SCOTUS decided that now was the time to remove race-based assistance. Pairing this with No Child Left Behind will probably do what some people ahve wanted for a while now – to keep poor and minority children ignorant, so they can work for Wal-Mart at a wage they can’t live on.