Hold me backHold me back
“You don’t need people to tell you you’re right all the time. You need people to tell you that you’re wrong.” – John Bogle (interviewed by Michael Regan in Bloomberg Markets)
Category: Economics
The temple of Mammon is open for businessThe temple of Mammon is open for business
“If you shift the formula a bit and substitute for God some other power, for instance the world or money, you get a complete picture of Western man—assiduous, fearful, devout, self-abasing, enterprising, greedy, and violent in his pursuit of the goods of this world: Possessions, health, knowledge, technical mastery, public welfare, political power, conquest, and so on. What are the great popular movements of our time? Attempts to grab the money or property of others and to protect our own. The mind is chiefly employed in devising suitable ‘isms’ to hide the real motives or to get more loot.” – Carl Gustav Jung, “Eastern and Western Thinking” (trans. R.F.C. Hull) (emphases in original)
Nailing jelly to the wallNailing jelly to the wall
“The trick never ages; the illusion never wears off. Vote to stop abortion; receive a rollback in capital gains taxes. Vote to make our country strong again; receive deindustrialization. Vote to screw those politically correct college professors; receive electricity deregulation. Vote to get government off our backs; receive conglomeration and monopoly everywhere from media to meat-packing. Vote to stand tall against terrorists; receive Social Security privatization. Vote to strike a blow against elitism; receive a social order in which wealth is more concentrated than ever before in our lifetimes, in which workers have been stripped of power and CEOs are rewarded in a manner beyond imagining.” – Thomas Frank, What’s the Matter with Kansas?
Pay to playPay to play
“Intellectual progress, which reveals itself in the growth of art and science and the spread of more liberal views, cannot be dissociated from industrial or economic progress, and that in its turn receives an immense impulse from conquest and empire. It is no mere accident that the most vehement outbursts of activity of the human mind have followed close on the heels of victory, and that the great conquering races of the world have commonly done most to advance and spread civilization, thus healing in peace the wounds they inflicted in war.” – Sir James George Frazer, The Golden Bough
Babies for the stateBabies for the state
“The socialization of reproduction completed the process begun by the socialization of production itself—that is, by industrialization. Having expropriated the worker’s tools and concentrated production in the factory, industrialists in the opening decades of the twentieth century proceeded to expropriate the worker’s technical knowledge as well. By means of ‘scientific management,’ they broke down production into its component parts, assigned a specific function on the assembly line to each worker, and kept to themselves the knowledge of the productive process as a whole. In order to administer this knowledge, they created a vastly enlarged managerial apparatus, an army of engineers, technicians, personnel managers, and industrial psychologists drawn from the same pool of technical experts that simultaneously staffed the ‘helping professions.’ Knowledge became an industry in its own right, while the worker, deprived of the craft knowledge by which he had retained practical control of production even after the introduction of the factory system, sank into passive dependence. Eventually, industry organized management itself along industrial lines, splitting up the production of knowledge into routinized operations carried on by semiskilled clerical labor: secretaries, typists, computer card punchers, and other lackeys. The socialization of production—under the control of private industry—proletarianized the labor force in the same way that the socialization of reproduction proletarianized parenthood, by making parents unable to provide for their own needs without the supervision of trained experts.” – Christopher Lasch, The Minimal Self
Efficiency and productivityEfficiency and productivity
“I started out my working life as a waiter. There is a saying in the restaurant business: ‘Full hands in and full hands out.’ It means that you never enter the kitchen without bringing an empty plate or glass with you, and you never leave the kitchen without grabbing a plate that needs to be delivered to a table. It’s a simple rule that creates quite a bit of efficiency during busy shifts. I’ve always tried to apply the same rule to my law practice. If I’m taking a trip downtown for one client, I make sure to look for two or three other things that can also be accomplished in the same trip.” – Mark Unger, Attorney-at-Law
Thor of the boardroomThor of the boardroom
“Modern culture has produced a distinctive character-type, our equivalent of the Homeric warrior-hero, the Athenian gentleman-citizen, the Christian saint, the 18th-century honnete homme. The defining activity of this character-type is manipulation; its most common embodiments are the aesthete, the therapist and, above all, the manager. All three express their culture’s understanding of social relations as primarily instrumental: by the consumption of other people as interesting sensations, or by the deployment of morally neutral expertise to achieve organizational goals. In a developed society that has renounced the ideal of virtue, of universal, rationally justifiable norms, this is the form taken by the war of all against all, and these characters are its warrior-heroes.” – George Scialabba, “After Virtue”
What it’s aboutWhat it’s about
“In theory, the outcome of elections in the United States reflects, with only minor distortions, the political preferences of the electorate. That’s what representative democracy is supposed to mean. Only it doesn’t work out that way. More precisely: the range of choices over which the American electorate is allowed to exercise its preference is sharply and systematically constrained. Electoral politics is dominated by two major parties, whose programs, to the extent they differ, correspond to the needs and goals of opposing sectors of the business community. The goals and ground rules that all sectors of business agree on constitute the framework of public policy, rarely or never challenged in the electoral arena. Policy proposals that fall outside this framework — i.e., good new ideas from the left — remain invisible and inaudible. This is not a conspiracy theory. Business leaders do not meet in secret to decide how best to delude the public mind and thwart the public will. They don’t need to. In a capitalist democracy, business control over the state is assured structurally. There are two reasons for this. First, since most people are economically vulnerable — they depend on employment rather than on ownership or some other entitlement to survive — the best predictor of their voting behavior is likely to be the state of the economy at election time. Overall, the state of the economy is determined by the level of investment. Since investment decisions in a capitalist economy are made privately, governments must nurture that most delicate of blossoms, ‘investor confidence.’ The second reason for business dominance is that political participation in a mass society costs a lot of money. Voting may be free, but setting the agenda is enormously expensive. To work out and put forth a detailed political program at the national level requires information, organization, and publicity, and all these require cash. Since the only people with spare money are capitalists, they have an effective monopoly on political speech.” – George Scialabba, “Right Turn”
What you can get away withWhat you can get away with
“There is a difference between a damage caused by continued vibrations of trains which are performing a necessary public service, and a damage caused by a single blast set off on the private property of another. It is such differences which make law not mainly the product of logic, but of experience, social necessity and distribution of the cost of consequences. Our common existence may require the law to hold that damage to property caused by unavoidable vibrations of passing trains is damnum absque injuria whilst to permit one owner, by a blast on his own property to shake down the house of another, requires a rule which recognizes that however free from negligence the first may be the second innocent person should not suffer. The very essence of fairness seems to suggest that if one, in order to obtain a certain type of use or enjoyment of his own property, is compelled to blast, he must, as part of the cost of such use or enjoyment, pay the damages he causes to his innocent neighbor.” – Justice James H. Wolfe, Madsen v. East Jordan Irr. Co.
Just lie back and relaxJust lie back and relax
“The tendency of every utopian movement is totalitarian: when perfectibility is the assumption, coercion must be the result.” – George Scialabba, “The Crooked Timber of Humanity”
Freedom isn’t freeFreedom isn’t free
“Whatever else liberal democratic societies have had in common, there’s this: they’ve all been rich. The two pillars of liberal ideology—the right to undisturbed enjoyment of one’s property and the right to a fair share of society’s resources, at least enough for a decent subsistence—may be fundamentally inconsistent, but the contradiction has usually remained implicit. There’s generally been enough money around to keep everyone off the streets, except for a minority of desperate or adventurous souls, quickly crushed by the National Guard and the secret police. In a society that makes more promises than it can keep, prosperity is the root of all harmony. When prosperity fails and those promises are called in, choices have to be made.” – George Scialabba, “Liberalism Reconsidered”
Imagine all the peopleImagine all the people
“Culture and psychology are central to politics. But cultural politics must reckon with our psychic ecology: the sum of our adaptations, over the course of two million years, to infantile dependence, territoriality, scarcity, mortality, and the other hitherto inescapable limits of human existence. We are organisms; we cannot flourish at just any tempo, pressure, or scale. Imagination itself is an evolutionary adaptation, whereby we master a threatening environment when young by binding or investing fantasy within nearby entities – parents, neighborhood, church, ethnic group. These intense primary identifications can and should be gradually left behind, but they cannot be skipped, on pain of shallowness, instability, and – paradoxically – an inability in later life to stand firm against authority. Cultural politics should aim to reform rather than abolish marriage, the family, hierarchy, authority, morality, and law. These institutions and practices evolved to serve essential purposes. They are not purely, or even primarily, strategies of exploitation. To consider them prisons rather than temporary outposts is not radical but superficial, like considering religion and myth mere lies rather than inadequate attempts at explanation. Cultural radicals will sometimes, in fact, need to defend these institutions; i.e., insist that some way be found to achieve their formative or protective purposes. As the global economy and mass culture lay siege to inwardness, plow up our psychic root system, and alter the very grain and contour of our being, conservation increasingly becomes a radical imperative.” – George Scialabba, “Don’t Think, Smile”
You can’t get there from hereYou can’t get there from here
“Utopia, then, is in the future. Why is this worth emphasizing? Revolutionists and abolitionists, utopia’s false friends, insist that it can be constructed out of present materials through a heroic act of will. This is to underestimate recklessly the depth and subtlety of the necessary changes and the intricacy and inertia of every moral culture. Utopia is impossible unless, among an overwhelming majority, solidarity and trust are nearly instinctive; responsibility, self-reliance, initiative, honesty, and other civic virtues are practiced much more widely than now; and democratic habits of self-confidence, candor, and tact are far better developed. Channels of communication and public information are as yet rudimentary. And let’s not forget rhetorical skills like wit, fluency, and concision: without a vast improvement in the general level of these, attendance at all the necessary meetings on the way to utopia will result in an epidemic of premature brain death. With all these moral and psychological changes in place, we can make a start on the technical problem – no less complex, probably – of reconciling equity and efficiency in production and distribution. Obviously such drastic and intimate changes, on the requisite scale, without undemocratic coercion or divine intervention, cannot be accomplished in a generation, or probably even in a few generations. Carrying off a general strike may be a fine thing, but creating a new moral ecology is an infinitely more difficult and valuable thing.” – George Scialabba, “The End of Utopia”
Divided we standDivided we stand
“Is it necessary to choose between cosmopolitanism and agrarian populism? Let us hope not. The liberal virtues and the republican virtues are both indispensable. But that does not mean they are, at this moment, equally urgent or equally vulnerable. The apparently irresistible thrust of global capitalism threatens the latter virtues far more than the former, rootedness and psychological integrity far more than mobility and personal growth, perhaps even — to stretch a point — independence and self-reliance more than impartial benevolence. The ‘heroic ideal’ and the ‘tragic sense’: these phrases already sound archaic. But our civilization has not outgrown what they signify; it has merely forgotten. Cultural amnesia is not the same thing as progress.” – George Scialabba, “Cultivating Humanity”
Not to mention everything elseNot to mention everything else
“The truth about human nature is very bad news for socialism.” – William Barrett, The Truants
The simple thingsThe simple things
“What we want is . . . bread for the people, rest for the people, immunity from robbery and scorn for the people, hope for them, enjoyment, equal respect and consideration, life and aspiration, instead of drudgery and despair.” – George Bernard Shaw
The long way downThe long way down
“America has no real alternative to continuing imperial decline: the big questions are simply how fast and how peacefully. The problem is that the arms industries will fund any and every Presidential candidate and, whoever wins, those industries will demand to be fed. It is unclear, though, whether Americans at large are willing to accept the sacrifices this may entail. As the American debt grows, the choice will become stark: paying off the debt—or, mare realistically, never paying more than the interest on the debt—will require either large tax increases, or a deep recession, or a huge inflation. The American public will vote for inflation as the least painful solution: somewhere out there in the years to come there is a giant inflation of almost Weimar proportions waiting to happen. But the banks will hate that, as will virtually all the other business interests (including the arms manufacturers) who are full voting members of the American democracy.” – E. G. Johnson, Heroes and Villains
Making America Great AgainMaking America Great Again
“Safe, simple, effective, and relatively cheap ways to increase intelligence and longevity in the American population include mounting the equivalent of the antismoking educational campaign against the high levels of fat, sugar, and salt in our national diet; encouraging physical activity, for example by forcing ourselves, through gasoline taxes and urban rezoning, to walk more, if only to get to public transportation; implementing national health insurance, or at least universal free health care for children under five; and subsidizing public radio and television. Reducing economic insecurity and environmental degradation also offers virtually unlimited opportunities for enhancing our beleaguered selves.” – George Scialabba, “Our Posthuman Future”
There doesn’t seem to be a shadowThere doesn’t seem to be a shadow
“The summer would be celebrated by people of every nation in the city. People marauding after work, discontented. Thugs surfing on the sides of cars, flagging. Going into the garbage cans and throwing bottles in the street. Immigrants working, forever working, watching people go by who have days off, time off, while they don’t. Trying to stay cool. Families with five young children going to Dunkin Donuts for a night out together in the air conditioning. The littered floors, the strange lone males reading the newspaper. Cabdrivers and dysfunctional individuals sitting in the window of the all-night Tropical. Messed-up guys with Puerto Rican flag hats talking to waitresses, high-fiving them, saying when do you get off? Spanish girls with Indian blood, slave blood, mopping floors at three a.m. Caribbeans saying we were brought here as slaves from India. We got together with the blacks and threw the British out. Now we listen to dub step. Let me tell you where it’s hot like fire burning. Where the party’s at. Where you can get robbed, stuck, shook, bucked and maybe fucked down on one hundred and ninth going towards Far Rockaway. Where no one’s gonna feel bad for you if you have problems. The Wenzhounese will sit outside in folding chairs in their pajamas on Cromellin Street, talking on the steps, fanning themselves in the gleaming night. The women will be pregnant and still they will be taking out the garbage, collecting bags of recycling, saving little fistfuls of money, little investments that, like children, will turn into something later. But for now, we’ll all have to deal with the heat first—all of us no matter where we’re from.” – Atticus Lish, Preparation for the Next Life
Score’s thirty-love, loveScore’s thirty-love, love
“You can love the game, but the game loves no one.” – Atticus Lish, Preparation for the Next Life
Yer gonna help us out, see?Yer gonna help us out, see?
“CIA officers prevailed upon an Austrian woman, Martha Schneider, a onetime resident of River Edge, New Jersey, to help them with safe houses. Schneider signed leases on apartments in Vienna and Salzberg that the CIA used in its activities from early 1969 through 1973. The agency apparently left her with broken leases and unpaid rent, for which landlords held her responsible. Schneider rejected a CIA offer of three thousand dollars to settle her claims, gained support from New Jersey legislators, and in September 1976 finally collected fifteen thousand dollars in cash from an associate general counsel of the CIA.” – John Prados, “First Freeze of the Cold War”
But the rich have gotten richer, that’s a startBut the rich have gotten richer, that’s a start
“Despite some success, the industrialized world has done relatively little to alleviate poverty, not just in the Arab and Muslim world, but globally. Indifference is not the full reason. In absolute terms, significant sums are given over to poverty reduction by contributors to multilateral development banks and by bilateral donors. The ineffectuality of aid programs is an equally important explanation for the persistence of poverty. Recipient countries do not have the financial, legal, and social institutions that would allow them to transform financial assistance into lasting economic gains, and donors do not know how to create these institutions. The governments receiving the aid resist the necessary structural reforms because their hold on power is often too fragile to subject their publics to the supposedly short-term pain of reform. The potential recriminations are not worth the uncertain long-term benefits.” – Daniel Benjamin and Steven Simon, The Age of Sacred Terror
Decline and fallDecline and fall
“History, scholars say, is written in three stages: heroic, with the narratives of great individuals and their feats; revisionist, which turns those accounts on their head; and tragic, where we see how events conspired to bring about an end beyond the reckoning of most actors of the time.” – Daniel Benjamin and Steven Simon, The Age of Sacred Terror
Making art safeMaking art safe
“Contemporary society, and in particular contemporary criticism, has tamed the arts, gradually deprived them of their prophetic and subversive possibilities. There’s no place in modern life for the mystical or the unpredictable; the arts have been institutionalized and are now managed by a cultural bureaucracy of scholars, critics, patrons, businessmen, and publicists. . . . The techniques of modern management are various: the blockbuster phenomenon and the star system, with their accompanying publicity machines; the centralization of public patronage; the recruitment of artists into universities.” – George Scialabba, “The Arts Without Mystery”
It’s a free countryIt’s a free country
“A four-letter word beginning with ‘f’ has tragically corrupted the minds of countless innocent Americans. I mean ‘free,’ in the expressions ‘free market’ and ‘free enterprise.’ It is a glorious word, of course, but its association with these morally neutral abstractions generally serves to obscure their often harsh and irrational consequences.” – George Scialabba, “The Market System”
Day of locustsDay of locusts
“Humanity today is living in a large brothel! One has only to glance at its press, films, fashion shows, beauty contests, ballrooms, wine bars, and broadcasting stations! Or observe its mad lust for naked flesh, provocative pictures, and sick, suggestive statements in literature, the arts, and mass media! And add to all this the system of usury which fuels man’s voracity for money and engenders vile methods for its accumulation and investment, in addition to fraud, trickery, and blackmail dressed up in the garb of law.” – Sayyid Qutb (quoted by Daniel Benjamin and Steven Simon in The Age of Sacred Terror)
A well-founded opinionA well-founded opinion
“The rejection of facts; the rejection of reason and science—that is the path to decline.” – President Barack Obama, Rutgers University Commencement Speech, 2016
It’s not in the budgetIt’s not in the budget
“Generals are a happily blessed race who radiate confidence and power. They feed only on ambrosia and drink only nectar, except when they are drinking bourbon. In peace, they stride confidently and can invade a world simply by sweeping their hands grandly over a map, pointing their fingers decisively up terrain corridors and blocking defiles and obstacles with the side of their hands. In war, they must stride more slowly because each general has a logistician riding on his back and he knows that, at any moment, the logistician may lean forward and whisper, ‘No, you can’t do that!’ ” – Anonymous, “How Many Logisticians Do You Want?” (quoted by John M. Collins in U.S.-Soviet Military Balance, 1960-1980)
Tell it like it isTell it like it is
“A true war story is never moral. It does not instruct, nor encourage virtue, nor suggest models of proper human behavior, nor restrain men from doing the things men have always done. If a story seems moral, do not believe it. If at the end of a war story you feel uplifted, or if you feel that some small bit of rectitude has been salvaged from the larger waste, then you have been made the victim of a very old and terrible lie. There is no rectitude whatsoever. There is no virtue. As a first rule of thumb, therefore, you can tell a true war story by its absolute and uncompromising allegiance to obscenity and evil.” – Tim O’Brien, “How to Tell a True War Story”
Slipping awaySlipping away
“In his attempt to keep planning for the war as closely held as possible, Lyndon Johnson would not give accurate economic projections, would not ask for a necessary tax raise, and would in fact have his own military planners be less than candid with his own economic planners . . . . The reasons for Johnson’s unwillingness to be straightforward about the financing were familiar. He was hoping that the worst would not come true, that it would remain a short war, and he feared that if the true economic cost of the war became visible to the naked eye, he would lose his Great Society programs. The result was that his economic planning was a living lie . . . the Great Society programs were passed but never funded on any large scale.” – David Halberstam, The Best and the Brightest (emphasis in original)