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Aloha New York (or, Escape from New York)
It’s always the little things that tell the story. For me and New York, it is the dog poop.I keep wanting to love this city but it keeps fighting back. I finally realized it became an abusive relationship and it was time to leave. I no longer live there. My adult kids and quite a few of my neighbors bailed out months ago.
The final straw was everywhere underfoot. I lived in a “nice” neighborhood. The fact that we so easily accept that we have nice and bad neighborhoods butted up against each other is part of the problem, too. But my neighborhood was nice, mostly residential, with a lot of pets. There was dog poop everywhere such that you learned to look down as you walked and developed a kind of skip and slide move to quickly reroute. You saw the brown skid marks where someone did not nail their landing.
We had human excrement, too. A nice neighborhood means “good” edible garbage for the leagues of Third World homeless who live off our trash. A lot of people tend to throw out their recyclable cans instead of taking them to the recycle point for coins. The spud boy variety homeless who graze these streets can often scrounge up a few bucks in cans each night. Then they have to poop and there are no public toilets. After corporate Starbucks ordered all its stores to make restrooms available to customers and others, many in sketchy areas just locked up their toilets and stuck on a sign saying “Out of Order.”
But I can’t blame the dogs for us leveling down. The issue is with the people walking those dogs who decision by decision choose not to pick up the crap. Every day so many neighbors decide not to pick up, leaving it for the people they live near to deal with. “I only care about me,” there is no better summation of why I left New York.
But alongside the little things are of course the big ones. New York is a failed experiment. Massive public housing estates were built up the east side and northern end of Manhattan, as well as in the outer boroughs, starting in the 1950s. What was once seen as an expedient to get people back on their feet (alongside food stamps and the other A-Z of social welfare) morphed into inter-generational poverty, generations of people who have never really worked and exist on the taxes of those who do. Knowledge of how to best exploit these systems is passed on the way a father might once have passed on his skills as a carpenter to a son.
Though the causes are complex, the reality is very simple. Poverty lines, like most of the city geographically, are sharply racial in division. People proudly claim New Yorkers speak 70 some languages, but in truth not often with each other. Broadly NYC is one of the most racially diverse places in America, but people live close but not together. Everyone knows where the white-black-brown lines are, usually by street (96th Street near me is a marker) but sometimes by housing complex.
Even the magnificent Central Park is racially divided. Check real estate prices at the southern end of the Park, the so-called Billionaires Row, versus the northern end where the Park is capped by liquor stores with bars on the windows and walkup tenements poor people have been swapping out since 1900. Chinatown and Greektown sound fun for tourists, but nobody is comfortable admitting we also have Hebrew Village, Caucasianland, and Blacktown.
The underlying financial system is unsustainable, far too few people (less now with COVID flight) paying too many taxes to support indefinitely too many others. The wealthy still enjoy NYC as long as they stay in their own layer, living hundreds of feet above the city, taking advantage of cheap labor for their needs, and scuttling to cultural events in towncars like cockroaches when the kitchen light flips on. They don’t live in NY, they float above it. Many play at liberalism, supporting the cause of the day espoused by the Daily Show and donating to PBS, but they really have no way to care. They literally do not even see what is happening around them.
New York had great pizza, enough to have America’s only professional pizza tour guide (though the city has fallen to a disgraceful third place nationally for pizza.) Amazing bagels. Shopping to die for, the museums, the energy. Broadway. But the list of what one has to put up with on a usual and customary basis to access all that grows worryingly longer, even without factoring in COVID. Street crime. Homelessness. A deteriorating public transportation system that gets more expensive to use proportionally as it gets less pleasant to use.
Take a non-rush hour bus ride and you will almost certainly be forced to navigate someone with mental illness. A police force that has either pretty much given up doing anything more than keeping the combatants apart or is a racist invading army, depending on where you think. I love a great slice of pizza, but I also got beat up on my own block in what the cops said was some sort of gang initiation and I was damn lucky not to get seriously hurt.
Add in the black slush lagoons that form on every street corner after a heavy snow as the plowed snow accumulates in vast heaps. The co-op apartment system where each building is like a mini-Vatican with its own rules and eccentricities. Some of the highest taxes in the country. Creaky infrastructure that leaks water, steam, gas, and electricity, sometimes all at once, to blend with the street gravy of the homeless.
And what is the city government focused on? Doing away with the rigorous entrance exams at its elite high schools in hopes of balancing them racially. And of course defunding the police and realigning pronouns. The inmates are literally in charge; NYC did away with bail in favor of catch-and-release in most cases.
That NYC’s problems exist in some form in other cities across America is nothing to be proud of. Rather, the prevalence is symbolic of America’s stubborn and globally unique insistence on not providing universal healthcare, of maintaining a tax-stock-economic system which brews economic inequality, not controlling its immigration, and of not creating infrastructure jobs to bust poverty. The focus remains on NYC in part because of the city’s constant bleating that it is the greatest in the world.
New York has never in its history pretended to be a warm and fuzzy place. It has always challenged its residents to accept a certain amount of guff in return for the shoulder tab “New Yorker.” But the line between that and watching people suffer in the streets is one now for me too far. I’m not alone; people are neither moving in to the city nor staying. A realtor friend in Florida says every phone call these days is from someone in Boston, Chicago, New York or the like. “They ask about schools,” he said. In the last year over 33,000 New Yorkers moved to Florida, a 32 percent increase from the same period the prior year. A drop in the bucket some may say until they realize about that same number of high earners pay 40 percent of the taxes in the city. Florida has no income tax.
If I sound frustrated, like I should be doing a Jeep commercial for next year’s Super Bowl, it’s because I am. I was born here in New York, and have seen these up and down cycles before. This one seems like it will stick for a awhile. That’s enough right there. But this round, driven by a near completely terrible series of COVID decisions, is so clearly man-made. Most of it did not need to happen but it did. Living through it, I can’t say it made me a better man, a happier man, a more caring man. I don’t like what it did to me. Us.
New York, like other large cities in the U.S. fails to understand what was done to it via COVID is no temporary change, even if some of the tourists dribble back in. No one will blow a whistle or yell “cut” and everything resets to March 2020. A profound change occurred in America. For the first time in history, where one lives and where one works have been decoupled. New York City no longer holds the record for most billionaires resident. That’s in Beijing now.
I’ll miss some of the hustle, as well as the symphony of overheard interactions which end with “And f*ck you, too!” And I know New York will be back in some form post-COVID, but it will need in the interim to have a hard conversation with itself along the way. Playground for the rich? Island prison for the poor? Stumbling social experiment while the towers literally deteriorate around us all? As that famous song goes, “it’s up to you New York, Neeeeew Yoooork!” Just do it without me.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
The Future is Hawaii
I have seen the future. It looks a lot like Hawaii. What I saw there (absent the beautiful beaches, confused tourists, and incredible nature) was a glimpse of the future for much of America.
COVID paved the way for internal travel restrictions — Americans moving around inside their own country — never before thought possible, or even constitutional. Hawaii, an American state, had to decide if they accepted American me, much as a foreign country controls its borders and decides which outsiders may enter.
Hawaii required a very specific COVID test, from a “trusted partner” company they contract with, at the cost of $119 (no insurance accepted.) To drive home the Orwellian aspects of this all, after receiving the test kit I had to spit into the test tube during a Zoom call, some large head onscreen peeping into my bedroom watching to ensure it was indeed my spit. And now of course, after clicking Accept several times, my DNA information is in Hawaiian government hands along with whoever else’s name was buried in pages of Terms of Service. I was rewarded with the Scooby snack of an QR code on my phone.
Hawaii used to offer the option of skipping the test and doing quarantine on-island. However, they now pre-screen at major airports and so no QR code, no boarding. And for those who don’t think good, today it’s a COVID test, tomorrow other criteria may be applied. Aloha!
I will add that all the extra health screening at the airport made me a little nostalgic when I finally got to the bombs and weapons detecting set up by TSA. Just like the good old days when we worried about Muslim terrorists instead of each other turning our planes into flying death tubes, I was checked to make sure I was not carrying more than 3 ounces of shampoo. It felt… quaint to remove my shoes alongside everyone else, millions of pairs a day, all because some knucklehead failed to explode his shoe bomb and was subdued by other passengers 12 freaking years ago. For old times’ sake I prepared mentally to subdue my fellow cabin mates. The nostalgia was driven home as the TSA screener made everyone remove their mask for a moment to verify the face matched the ID picture except Muslim women, ensuring every non-Muslim woman passenger got to exhale a couple of COVID-era breaths into the crowd. Viva!
The future in Hawaii strikes you as soon as you clear the airport into that beautiful Pacific air. It smells good in patches, but in fact there are growing masses of homeless people everywhere; the unsheltered homeless population is up 12 percent on Oahu. Coming from NYC I am certainly not surprised by the zombie armies, but these people live outside. You can’t escape them by surrendering control of the subway system, or by creating shelters in someone else’s neighborhood. The homeless here live in tents, some in gleefully third world shacks made of found materials, others in government-paid shanties creatively called “tiny houses.”
Some make solo camp sites alone on the sidewalk, some create mini-Burning Man encampments in public parks. I’d like to say the latter resemble the migratory camps in Grapes of Wrath, but the Joad family could still afford an old jalopy and these people cannot. The Joads were also headed to find work; these people have burrowed in, with laundry hanging out, dogs running among the trash, rats and bugs happily exploring the host-parasite relationship. These folks stake out areas once full of tourists on Waikiki, and in public spaces once enjoyed more by locals. Drugs are a major problem and whether a homeless person will hassle you depends on which drug he favors, the kind that makes him aggressive or the kind that makes him sleep standing up at the bus stop.
The future is built around the homeless, literally. My business was in the Kakaako area, once a warehouse district between Waikiki and downtown Honolulu, now home to a dozen or more 40 story condos. They are all built like fortresses against the homeless. Each tower sits on a pedestal with parking inside, such that the street view of most places is a four story wall. There is an entrance (with security) but in fact the “first floor” for us is already four floors above ground. Once you’re up there, the top of the pedestal usually features a pool, a garden, BBQ, kiddie play area, dog walking space, all safely out of reach from whatever ugly is going on down below.
If you look out the windows from the upper, most expensive floors, you can see the ocean and sand but not the now tiny homeless people. They become invisible if you’re rich enough. Don’t be offended or shocked — what did you think runaway economic inequality was gonna end up doing to us? Macroeconomics isn’t a morality play. But for most of the wealthy the issue isn’t confronting the reality of inequality, it is navigating the society it has created. Never mind stuff like those bars on park benches that make it impossible to lay down. The architects in Kakaako have stepped it up.
These heavily defended apartments can run lots of millions of dollars, with most owners either coming from the mainland U.S. or Asia. They will live a nice life. Most of them work elsewhere, or own businesses elsewhere, which is good, because the future in Hawaii does not look good for the 99 percent below. It’s inevitable in a society that is constantly adding to its homeless population while simultaneously lacking any comprehensive way to provide medical treatment, all the while smoothing over the bumps on the street with plentiful supplies of alcohol and opioids.
Hawaii’s economy may be the future. Very little is made here. As making steel and cars left the Midwest in the late 2oth century, so did Hawaii’s old economy based on agriculture. It was cheaper to grow food elsewhere and import it to the mainland. The bulk of pineapple consumed in the United States now comes from Mexican, Central and South American growers same as steel now comes from China, and the few pineapple fields in Hawaii are for tourists. Hawaii now depends on two industries: tourism and defense spending. And both are controlled by government.
Tourism accounts directly for 24 percent of the state’s economy, more if one factors in secondary spending. The industry currently does not exist in viable form, with arrivals down some 75 percent. Unemployment Hawaii-wide is 24 percent, much more if you add in those who long ago gave up looking or are underemployed frying burgers. Much is driven by COVID. Will those ever recede? No one knows. When might things get better? No one knows. The decisions which control lives are made largely in secret, by the governor or “scientists,” and are not subject to public debate or a state congressional vote. One imagines a Dickensonian kid in hula skirt asking “Please sir, may we have jobs?”
Everyone knows Pearl Harbor, not only once a major tourist destination but also a part of direct Pentagon spending which pumps $7.2 billion into Hawaii’s economy, about 7.7 percent of the state’s GDP. Hawaii is second in the United States for the highest defense spending as a share of state GDP, and that’s just the overt stuff. Rumor has it the NSA has multiple facilities strewn around western Oahu with thousands of employees. All those government personnel, uniformed or covert, do a lot of personal spending in the local economy, much as they do in the shanty towns which ring American bases abroad. Everyone relies on local utilities like water, power, and sewers, and those bases need engineers, plumbers, electricians and others. Many are local residents either directly employed by DoD or working through contracts with private companies. The point is even more then tourism, this large sector of the economy is controlled by the government. At least they’re still working.
Another important sector of the Hawaiian economy is also government controlled, those who live entirely on public benefits. Benefits in Hawaii are the highest in the nation, an average of $49,175 and untaxed. For the last 9 years Hawaii spent more on public welfare benefits, about 20 percent of the state budget, then it did on education. More than one out ten people in Hawaii get food stamps (SNAP), though the number is higher if you include free lunches at school and for the elderly. Fewer working people means fewer tax paying people, so this is unsustainable into the future.
Who owns the future? The government in Hawaii owns the land. The Federal government owns about 20 percent of everything, and the state of Hawaii owns some 50 percent of the rest. Do Not Enter – U.S. Government Property signs are everywhere if you take a drive out of town. There are also plenty of private roads and gated communities to separate the rich from the poor, but the prize goes to Oracle owner Larry Ellison who owns almost the entire island of Lanai, serving as a gatekeeper inside another gatekeeper’s turf. For the rest of the people, homeownership rates in Hawaii are some of the lowest in the nation.
The good news (for some…) is in the future whites will be a minority race in all of America. They already are in Hawaii. Asians not including Native Hawaiians make up 37 percent of the population, with whites tagging in at 25 percent. Local government, some 55 percent of the jobs, is dominated by people of Japanese heritage. Japanese heritage people also have the highest percentage of homeownership, 70 percent. Almost all have a high school diploma, and about a third have a four-year college degree.
The well-loved mainland concept of “people of color” fades quickly in Hawaii, where Japanese color people are a majority over everyone else. And unlike in some minds, people in Hawaii are very aware that the concept of “Asian” is racist as hell, and know the differences among Japanese, Korean, Chinese, and Vietnamese. Things are such that local Caucasian and Hawaii Democratic Congressman Ed Case said he was an “Asian trapped in a white body” and meant it as, and was understood in Hawaii as, a good thing and was echoed by Case’s Japanese-American wife.
White supremacy has clearly been defeated here, though I am not sure BLM would be happy with how that actually worked out without them. On a personal note, I will say as a white-identifying minority I was well-treated by the police and others. I was not forced to wear one of those goofy shirts or add an apostrophe to words while in Hawai’i against my cultural mores, so there may be hope yet in the future I saw.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
America in Black and White
The New York Times was startled to learn pre-COVID America’s 614 billionaires were worth a combined $2.95 trillion. As the Dow hit record highs last week, there are now 650 billionaires and their combined wealth was now close to $4 trillion.It is kind of neat that big-names in places like the NYT have finally noticed the state of economic inequality in America, albeit for all the wrong reasons (something else endemic to instead blame on Trump as he goes out the door.)
In the worst economic crisis since the 1930s, American billionaires’ wealth grew by a third during the worst of COVID. Where’d all their new money come from? You, paying interest up to the Lord of Manor. For example, Dan Gilbert, chair of Quicken Loans, was worth $7 billion in March; he now has $43 billion. It takes a lot of poor people to sustain that amount of wealth at the top. Listen for the sucking sound as the cash moves.
If like the NYT you are only figuring this out now you are way too far behind to really matter. A tiny percentage of Americans own, control, and benefit from most everything; call it one percent but a large number of the one percent are just slugs and remoras (hedge fund managers, corporate lawyers, etc.) who feed off the crumbs left by the .01 percent You know a handful of the real rich names — Bezos, Gates, Buffet — but only because they own public facing companies. Most of the others prefer less public lives while they control the public. And silly you, you worried that it was the Russians who stole the election.
Now to talk about conspiracy theories is to imply that something “different” happened, that the system did not work as usual and as intended; for example, instead of an election the president was assassinated to change of who was in charge. The term conspiracy has kind of a bad feel to it. So let’s not call whatever happened this autumn to elect Joe Biden a conspiracy. But here is what happened, so see if you have a better word.
The corporate media owned by that .01% spent four years attacking Trump. Then it sent information about Hunter Biden that would have changed the election down the memory hole, and policed social media to Joe’s advantage. Corporate pharma, also owned by the same people, held back announcement of Covid vaccines until just after the election. And guess what — “something” happened again in Democratic primaries that started with some of the most progressive candidates since Henry Wallace to instead push a politician known as the Senator from Mastercard into the White House, where he promptly filled his Cabinet with the same old thinkers corporate America liked from the Obama years. A highlight is Janet Yellen at Treasury, who helped run the massive corporate bailout that created the .01 percent out of the one percent after the Great Recession. No wonder Biden told donors “nothing would fundamentally change” for the wealthy when he’s in charge.
One of the reasons economic inequality has ramped up to where it is after a slow remaking of society in the 1970s has been a clever manipulation of the people most impacted by it. Naturally, they first need to be divided so they will not work together. That was so simple it is genius: poor people of color are victims of racism and can’t climb up until that’s all cleared up, while poor white people are too lazy and stupid to lift themselves up by their bootstraps. Encourage the POC to feel jealous of the chances the dumbs whites throw away and blame the whites for racism. Get the white folks to believe POC live off handouts. A trick as old as mud, set two sides against each other. As long as racism, the fate of the Rust Belt, and economic inequality are separate topics talked about by different people (blacks, whites, and socialist hippies) nothing changes.
Please don’t think this is too original a thought. Lyndon Johnson pretty much gave the basic thesis statement in 1960 years before he kicked off the War on Poverty, in Appalachia, for the poor white people who were then the Democratic base. Johnson said “If you can convince the lowest white man he’s better than the best colored man, he won’t notice you’re picking his pocket.” The final step is to make it impossible to talk about any of this.
There’s a new book out, Big White Ghetto: Dead Broke, Stone-Cold Stupid, and High on Rage in the Dank Woolly Wilds of the “Real America.” There’s a new movie out of an old book, Hillbilly Elegy. The National Review has its own white trash story and the MSM has made parachuting its elite columnists into the Heartland to write thought pieces into a sub-genre that could sit aside Business and Sports on the masthead. Whatever all those writers think their point is, their point ends up being poor whites are very different than poor blacks.
The whole poverty-class cosplay industry got a meth-like boost in 2016 when east coast liberals tried to find another reason why Donald Trump won after their friends and fellow journalists snatched up Russian interference. Blaming Putin of course petered out after a three year run, about as long as Hillbilly Elegy took to move from book to movie. Why the fascination with white trash?
Poor white people are a stand in for poor blacks. Kinda by proxy, the way the movie M*A*S*H* set in Korea was really criticism of America’s war in Vietnam. White liberals can say anything they want about Appalachians, stuff they can’t get away with saying about blacks.
Nick Kristof of the New York Times, visiting Jackson, Kentucky, was shocked by parents who were taking their children out of school because improved academic performance would threaten $700-a-month Social Security disability benefits. These benefits have accrued over various feel-good administration gestures to the point where they are are paid out for nebulous afflictions such as loosely defined learning disorders in eight-year-olds. But Kristof wins for accidental honesty: “This is painful for a liberal to admit, but conservatives have a point when they suggest that America’s safety net can sometimes entangle people in a soul-crushing dependency.”
Next up is Kevin Williamson, because his Big White Ghetto is one of the newest books which says the same thing as all the others. Williamson writes, for example, without controversy “welfare has made Appalachia into a big and sparsely populated housing project — too backward to thrive, but just comfortable enough to keep the underclass in place.” Now imagine the exact sentence with a little tweak — “welfare has made parts of New York City into a big and sparsely populated housing project — too backward to thrive, but just comfortable enough to keep the black underclass in place” and imagine all hell breaking loose on Maddow that night. Imagine if Ta Nehisi Coates, instead of making a career out of cataloging black victimhood, said “Get off your asses, brothers. They hiring at KFC.”
Or try this one: “The government gives people checks, but nobody teaches them how to live,” says a former high-school principal who spoke with Williamson in Kentucky.” Imagine your favorite conservative talk radio host saying “the problem among blacks is the government gives them checks, but never teaches them how to live.” Shall we talk about single moms in Appalachia whose baby daddies cook meth or shall we talk about deadbeat black dads who cook meth in the South Bronx? Write a book about the former and you’ll vie for a Pulitzer. Try that with the latter without making it a how-to on victimhood and Oprah will skin you alive on the TV.
Here’s some evocative street scene talk about Appalachians: “Jimmy is attached to one of the clusters of unbusy men who lounge in front of the public buildings in Booneville — ‘old-timers with nothing to do,’ one observer calls them, though some of those ‘old-timers’ do not appear to have reached 30 yet, and while their Mossy Oak camouflage outfits say ‘Remington,’ their complexions say ‘Nintendo.’” How far would a writer get with: “Tyron’e is attached to one of the clusters of unbusy men who lounge in front of the hookah shops in Compton — ‘old-timers with nothing to do,’ one observer calls them, though some of those ‘old-timers’ do not appear to have reached 30 yet, and while their NBA jerseys say “LeBron” their complexions say “Nintendo.”
Or less serious but basically a taste of the same, remember SNL’s serial skits of Appalachian Emergency Room, featuring comical rednecks with comical injuries; one ongoing character came in with all sorts of things stuck up his anus. It was as if the Beverly Hillbillies image of rural people had never been updated. Imagine if Amos and Andy were still on, or maybe just a new series called Ghetto Emergency Room featuring hilarious episodes of gunshots and ODs.
A forced viewing of Hillbilly Elegy showed it is to truth what hemorrhoids are to pleasant mornings. Just when you would think they had exhausted every “hick in the big city” cliche they pull out the old one where the protagonist gets invited to a fancy dinner party and is intimidated by which of the multiple forks to use. “What to Do” with all the forks was fully explained in the movie Titanic dinner scene, where the exact same scenario took place. Also there is always the church trick, just kneel when other people do. Or figure a guy like the main character in Elegy who went through an undergrad education, the Marine Corps, and got into Yale would puzzle it all out. This use of cliche for poor, dumb, white characters is routine. I wonder how many movies that feature poor, dumb, POC trying to make it would dare do the same. That’s be racist, right, mocking a ghetto kid for not knowing White Manners, whereas anything goes with slack jawed yokels. Even street-smart Eddie Murphy in Trading Places ultimately turned his lack of White Manners into an advantage. Imagine the Elegy guy saving the day at Yale in a tobacco spitting contest!
Among the other terrible things about the Elegy movie (and the book, but less so) is a near total lack of empathy for any of the characters. They are all presented as terrible people, and all their problems are their own fault and made worse by their own actions. They are not presented in any way as victims of larger forces (such as racism or urban gentrification), as is common in stories like this about POC (think Boyzz in the Hood or Do the Right Thing.) There is no leavening poor white problems. Even the shared drug problem, same stuff, cheap crank, is treated differently. Black folk are victims of some white conspiracy, maybe even the CIA, to keep them down by flooding the ‘hood with narcotics. White trash? They have no self-restraint. Same as them using abortion as a cure for recreational sex.
We tend to forget the War on Poverty started in Appalachia, under Lyndon Johnson in 1965, aimed at poor whites. It failed to help them, as it failed to help blacks as the program later grew. Too much welfare of the wrong kind without real jobs to back it just created generational dependencies. But we can only talk about one demographic group that way.
That seems to be the take away from another new book, The Upswing: How America Came Together a Century Ago and How We Can Do It Again. After an exhaustive study of decades of data, author Robert Putnam concludes the many gaps between blacks and whites — education, health, employment, financial — narrowed between 1940 and 1970, driven by the Great Migration into northern industrial jobs. Then around 1970 black life fell into a decline which continues today. Putnam is right as far as he goes, but he misses the big picture in his race to blame racism. From 1940 to 1970 the lives of all lower class Americans of all races improved, especially up north where what became the Rust Belt was once the manufacturing center of the universe. Everyone rose, and fell, the same. Real, adjusted wages were never higher for all Americans then in 1972. But the The Upswing only follows part of the crowd down.
Putnam and so many others ignore how economic insecurity engulfs more than 76 percent of white adults by the time they turn 60. Pessimism among whites about their economic future is today at its highest point since 1987. More than 19 million whites fall below the poverty line of $23,021 for a family of four, accounting for more than 41 percent of the nation’s destitute, nearly double the number of poor blacks. Buchanan County, 99 percent white in southwest Virginia, is among the nation’s most destitute places, with poverty at 24 percent.
So today we are allowed to mock one failed group as dumb Trump rednecks and treat them as subjects of a nature documentary. Blacks, they’re victims with the president elect still two-stepping around comments on reparations due. Don’t expect much progress for either group until we are allowed to talk openly about both. Try saying all American lives matter and you risk a broken nose. And wake me when a book called Urban Elegy becomes a best seller.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
Economic Disparity and COVID in New York City
The separateness in this city, New York, and by extension much of the nation curled around it from America’s eastern edge, stands out. There are the hyper-wealthy and there are the multi-generational permanent poor. New York has more of each than any other city in America. In writing about them it has been easy to stress how far apart they live, even though the mansions of the Upper West Side are less than a mile from the crack dealers uptown. The rich don’t ride public transportation, they don’t send their kids to public schools, they shop and dine in very different places with private security to ensure everything stays just far enough apart to keep it all together.
But that misses the dependencies that until now have simply been a given in the ecosystem. The traditional view of this applied to New York has been the rich need the poor to exploit as cheap labor, textbook economic inequality. But with COVID as the spark, the bomb of economic inequality may soon Beruit America’s greatest city. Things are changing and New York needs to ask itself what it wants to be when it grows up.
It’s simple. New York is populated by the incredibly wealthy and the incredibly poor. The wealthy and the companies they work for pay most of the taxes. The poor do not work, or are underemployed, and consume most of the taxes through social programs. COVID is driving the wealthy and their offices out of the city. No one will be left to pay for the poor, who are stuck here, and the city will collapse in the transition. A classic failed state scenario. The new social contract.
New York City is home to 118 billionaires, more than any other American city. New York City is also home to nearly one million millionaires, more than any other city in the world. Among those millionaires some 8,865 are classified as “high net worth,” with more than $30 million each.
They pay the taxes. The top one percent of NYC taxpayers pay nearly 50 percent of all personal income taxes collected in New York. Personal income tax in the New York Metro-Region accounts for 59 percent of all revenues. Property taxes property taxes amount to more than billion dollars a year in revenue, about half of that from office space.
Now for how the other half lives. Below those wealthy people in every sense of the word city has the largest homeless population of any American metropolis, to include 114,000 children. The number of New Yorkers living below the poverty line is larger than the population of Philadelphia, and would be the country’s 7th largest city. More than 400,000 New Yorkers reside in public housing. Another 235,000 receive rent assistance. The Queensbridge Houses in Long Island City is North America’s largest housing project with 3,142 apartments.
That all costs a lot of money. The New York City Housing Authority says it needs $24 billion over the next decade just for vital repairs. That’s on top of a standing cost approaching $4 billion a year just to keep current housing operating. A lot of the money used to come from the Federal government before a multibillion-dollar decline in federal Section 9 funds. Today there is a shortfall and repairs, including lead removal, are being put off.
NYC also has a $34 billion budget for public schools, many of which function as distribution points for child food aid, medical care, day care, and a range of social services. Costs for unemployment payouts are up dramatically because of COVID. The budget for a city as complex as New York is huge, a mess of federal, state, and local funding sources, multi-year grants. It can be sliced and diced many ways, but the one that matters is the simplest: the people and companies who pay for New York’s poor are leaving. The city is already facing a $7.4 billion tax revenue hit from the initial effects of the coronavirus. The money is there; New York’s wealthiest individuals have increased their net worth by $44.9 billion during the pandemic. It’s just not here.
New York’s Governor Andrew Cuomo has seen a bit of the iceberg in the distance. He recently took to MSNBC to beg the city’s wealthy, who fled the coronavirus outbreak, to return. Cuomo said he was extremely worried about New York City weathering COVID if too many of the well-heeled taxpayers who fled decide there is no need to move back. “They are in their Hamptons homes, or Hudson Valley or Connecticut. I talk to them literally every day. I say. ‘When are you coming back? I’ll buy you a drink. I’ll cook. But they’re not coming back right now. And you know what else they’re thinking, if I stay there, they pay a lower income tax because they don’t pay the New York City surcharge. So, that would be a bad place if we had to go there.”
Included in the surcharge are not only NYC’s notoriously high taxes. The recent repeal of the federal allowance for state and local tax deductions (SALT) costs New York’s high earner tax filers some $15 billion in additional federal taxes annually.
“They don’t want to come back to the city,” Partnership for NYC President Kathryn Wylde warned. “It’s hard to move a company… but it’s much easier for individuals to move,” she said, noting that most offices plan to allow remote work indefinitely. “It’s a big concern that we’re going to lose more of our tax base then we’ve already lost.”
While overall only 5 percent of residents left the city as of May, in the city’s very wealthiest blocks residential population decreased by 40 percent or more. Across the city the higher-earning a neighborhood is, the more likely it is to have emptied out. Even the amount of trash collected in wealthy neighborhoods has dropped, a tell-tale sign no one is home. A real estate agent told me she estimates about a third of the apartments in my mid-range 300 unit building are empty. The ones for sale or rent attract few customers. She says it’s worse than post-9/11 because at least then the mood was “How do we get NYC back?” instead of now, when we just stand over the body and tsk tsk through our masks.
Enough New Yorkers are running toward the exits that it has shaken up the area’s housing market. Another real estate agent describes the frantic, hypercompetitive bidding in the nearby New Jersey suburbs as a “blood sport.” “We are seeing 20 offers on houses. We are seeing things going 30 percent over the asking price. It’s kind of insane.”
Fewer than one-tenth of Manhattan office workers have returned to the workplace a month after New York gave businesses the green light to return to the buildings they ran from in March. Having had several months to notice what not paying Manhattan office rents might do for their bottom line, large companies are virtually leaving. Despite the folky image of New York as a paradise of Mom and Pop restaurants and quaint shops, about 50 percent of those who pay most of the taxes work for large firms. More Fortune 500 companies, 71, have their headquarters in NYC, than any other city in America. They are keeping their employees working from home. Conde Nast, the publishing company and majority client in the signature new World Trade Center, is moving out. Since the coronavirus hit the office has largely been vacant anyway and the publisher has given no indication when workers will return.
It is no better in other sectors. A third of NYC’s small businesses are closing. On Madison Avenue in the ultra-rich 60s and 70s blocks most lux stores are closed. Retail foot traffic is down 85 percent from a year ago. The former customers are in Connecticut and the Hamptons, and so major art galleries have shuttered their city locations to open branches where the rich have relocated. Neiman Marcus is closing its flagship store in Hudson Yards. Tourism, once worth $70 billion a year, has fallen to near zero.
Meanwhile, progressive Mayor De Blasio has lost touch with his city. After years of failing to address economic inequality by simply throwing free money to the poor and limiting the ability of the police to protect them, and us, from rising crime, his COVID focus has been on shutting down schools and converting 139 luxury hotels to filthy homeless shelters. Alongside AOC, he has called for higher taxes and more federal funds, neither of which is coming. As for the wealthy who have paid for his social justice experiments to date, he says “We don’t make decisions based on a wealthy few. Some may be fair-weathered friends, but they will be replaced by others.”
What others? The concentration of major corporations once pulled talent to the city from across the globe; if you wanted to work for JP Morgan on Wall Street, you had to live here. That’s why NYC has skyscrapers; a lot of people once needed to live and especially work in the same place. Not any more. Technology and work-at-home changes have eliminated geography.
For the super wealthy, New York once topped the global list of desirable places to live based on four factors: wealth, investment, lifestyle and future. The first meant a desire to live among other wealthy people (we know where that’s headed), investment returns on real estate (not looking great, if you can even find a buyer), lifestyle (now destroyed with bars, restaurants, shopping, museums, and theatres closed indefinitely, coupled with rising crime) and…
The future. New York pre-COVID had the highest projected GDP growth of any city. Now we’re left with the question if COVID continues to hollow out the city, who will be left to pay for New York? As one commentator said, NYC risks leading America into becoming “Brazil with Nukes,” a future of constant political and social chaos, with a ruling class content to wall itself off from the greater society’s problems.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
An Entire Generation is Likely to See Its Standard of Living Regress
It is modern feudalism, happening in a slow motion crash as we watch, aware of what is coming down, but at first unwilling and likely now unable to stop it.
Welcome to the Third WorldWe are living in so-called first world societies where economic disparity is trending toward developing world levels. Some numbers you can argue about individually if you like (and how does your head feel buried in the sand?), but the aggregate situation is beyond debate:
— The one percent holds 35.6 percent of all private wealth, more than the bottom 95 percent combined.
— The 400 wealthiest individuals globally have more wealth than the bottom 150 million Americans.
— Between 1983 and 2009, over 40 percent of all wealth gains flowed to the one percent and 82 percent of wealth gains went to the top five percent. The bottom 60 percent lost wealth over this same period.
— A significant amount of the redistribution of wealth, redistributed upward, took place following the 2008 market collapses in the United States as bailouts, shorts, repossession of home and land, and new laws helped the top end of the economy at cost to the bottom. More and more of government is controlled directly by corporations.
— The world’s one percent own $42.7 trillion dollars, more than the bottom three billion residents of earth.
— A rising tide lifts all yachts, as historian Morris Berman observed. Less than half of Americans do not own any stock at all. The wealthiest of Americans own over 80 percent of all stock, and 40 percent of America’s land.
It’s Getting Worse
Now add to that grim tally new information that shows the problem of gross income and wealth inequality is getting worse.
A report from McKinsey finds that in developed economies such as the United States two-thirds of all households experienced “flat or falling” incomes over the past decade, from 2005-2014. In the U.S., the portion was even worse: 81 percent.
“While the recession and slow recovery after the 2008 global financial crisis were a significant contributor to this lack of income advancement, other long-run factors played a role — and will continue to do so,” McKinsey notes. “They include demographic trends of aging and shrinking household sizes as well as labor-market shifts such as the falling wage share of GDP.”
Capital Beats Labor Every TimeAs predicted by economists from Karl Marx to Thomas Piketty, this is the natural progression of capital (making money by owning things) over labor (making money by working.) It represents the same basic economic world of the Middle Ages, land-owning kings and serfs who have no option but to work the fields.
It is statistically likely that you won’t live a better life than your parents did. The economic world of your parents and grandparents was an aberration, a one time exception that was called the American Dream. And even that was largely limited the white people.
Do enjoy that gig economy youngsters, and hope Uber doesn’t put you out of an income by flooding the market with more drivers.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
What Are The NAFTA and TPP Trump and Clinton Fought About in the Debate?
In the presidential debates, Trump and Clinton referenced the NAFTA and TPP trade deals. What are they and are they good, or bad, for America?
What Are NAFTA and TPP?The North American Free Trade Agreement (NAFTA), which went into force in 1994, and the Trans-Pacific Partnership (TPP), which is still pending ratification in the U.S. and elsewhere, are international trade agreements.
Trump is unambiguously, totally, absolutely, hugely opposed to both deals and any others in the future. He has held that position from Day One.
Clinton, less so. NAFTA was pushed through by Bill, and Hillary continues to defend it. As Secretary of State she strongly advocated for the TPP. She continued that advocacy during the first part of her campaign, right up until Bernie Sanders started to score points against her by opposing it. Hillary then shifted to also opposing it. No one knows what her stance will be if she is elected.
Meanwhile, the Obama administration is still hoping to force TPP through a lame duck Congress following the election. Hillary would then be free to shrug her shoulders come January and claim the TPP is not her responsibility.
The Basics Of TradeInternational deals like NAFTA and the TPP are designed to promote more trade, more goods and services, and sometimes more workers, moving across borders. The deals typically reduce taxes and tariffs, change visa rules, and sometimes soften regulations that keep foreign products out. The phrase used most often is “lower the barriers.”
So, if widgets made at a higher cost in the U.S. can be made more cheaply in Vietnam and then imported into the U.S., something like TPP can facilitate that by lowering American tariffs on widgets. Meanwhile, Vietnam might be required to change its agricultural import system to allow American genetically modified fruit into Hanoi’s supermarkets.
Looking at You, NAFTA
NAFTA is a good place to start in learning more, as it involves three countries — the U.S., Canada, and Mexico — that generally get along, play reasonably fair, and already had a robust cross-border trade. Lots of non-variables there. Plus, since NAFTA’s been around for over 20 years, there should be a decent consensus on how it worked. That will provide a real world example to weigh against a newcomer like the TPP.
You wish.
There are numbers. For example, the U.S. Chamber of Commerce says increased trade from NAFTA supports about five million U.S. jobs. Unemployment was 7.1% in the decade before NAFTA, and 5.1% from 1994 to 2007. But then again unemployment from 2008 to 2012 has been significantly higher.
You can find similar ups and downs on imports and exports, the value of goods, and the like. Some are clearer than others; since 1993, U.S. exports to Canada and Mexico have climbed 201 percent and 370 percent. The problem is trying to attribute them. Global economics is a complex business, and pointing to a singularity of cause and effect like NAFTA is tough. And NAFTA, remember, was just three countries. The TPP would draw in 12 nations.
Cui Bono?
The Latin phrase cui bono means “who benefits?,” and is used by detectives to imply that whoever appears to have the most to gain from a crime is probably the culprit. More generally, it’s used to question the advantage of carrying something out. In the case of things like NAFTA and TPP, the criminal context might be more applicable.
NAFTA made certain products cheaper for American consumers, as manufacturing costs are lower in Mexico than Idaho. American companies who found new export markets abroad also saw a rising tide of new money. That’s the good part (for a few.)
However, allowing American firms to make things abroad and import them into the U.S. free or cheap moves jobs out of the United States. A current case cited by Trump is Carrier. Carrier sent 1,400 jobs making furnaces and heating equipment to Mexico. Mexican workers typically earn about $19 a day, less than what many on Carrier’s former Indiana assembly line used to make in an hour.
Carrier will see higher profits due to lower costs. They put Americans out of work.
The Losers
Economists will often claim that such job losses are part of the invisible hand, how capitalism works, duh. The laid off workers need to learn to code and build web pages, migrate to employment hot spots such as California like a modern day Tom Joads. But pay a visit to nearly anywhere in what we now blithely call America’s Rust Belt, and see how that’s working out.
Retraining industrial workers just does not happen overnight, even if there was free, quality education (there’s not.) Indeed, since the beginnings of the hollowing out of America, it has not happened at all.
The risk is also that retraining takes unemployed, unskilled people and turns them into unemployed, skilled people. Training is only of value when it is connected to a job. Remember, even if all those unemployed Carrier people somehow learn to build web pages, America’s colleges are churning out new workers, digital natives, who already have the skills. Even Silicon Valley’s needs are finite.
Everybody Wins, Except for Most of Us
Economist Robert Scott claims over the last 20 years, trade and investment deals have increased U.S. trade deficits and cost Americans their jobs. For example, the agreement allowing China into the World Trade Organization led to trade deficits that eliminated 3.2 million jobs between 2001 and 2013. Meanwhile, the United States already faces a trade deficit with countries in the proposed Trans-Pacific Partnership that cost two million U.S. jobs in 2015.
In his 2008 book, Everybody Wins, Except for Most of Us, Josh Bivens showed increased global integration harms working Americans. Bivens estimated that the growth of trade with low-wage countries reduced the median wage for full-time workers without a college degree by about $1,800 per year in 2011.
A Broader ViewIf one is asking whether or not international trade agreements are good for America, one needs to think bigger. On a whole-of-society level, economics is about people. We all want American companies to make money. It’s also great that Walmart is full of low-cost consumer electronics from Asia, or Carrier air conditioners fresh from Mexico, but you need money — a job — to buy them.
Think broader, and you’ll see economics is about people. Let that answer the question for you about whether international trade agreements are good or bad for America.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
You Can’t Earn a Living on the Minimum Wage
When presidential candidate Bernie Sanders talks about income inequality, and when other candidates speak about the minimum wage and food stamps, what are they really talking about?
Whether they know it or not, it’s something like this.
My Working Life Then
A few years ago, I wrote about my experience enmeshed in the minimum-wage economy, chronicling the collapse of good people who could not earn enough money, often working 60-plus hours a week at multiple jobs, to feed their families. I saw that, in this country, people trying to make ends meet in such a fashion still had to resort to food benefit programs and charity. I saw an employee fired for stealing lunches from the break room refrigerator to feed himself. I watched as a co-worker secretly brought her two kids into the store and left them to wander alone for hours because she couldn’t afford childcare. (As it happens, 29% of low-wage employees are single parents.)
At that point, having worked at the State Department for 24 years, I had been booted out for being a whistleblower. I wasn’t sure what would happen to me next and so took a series of minimum wage jobs. Finding myself plunged into the low-wage economy was a sobering, even frightening, experience that made me realize just how ignorant I had been about the lives of the people who rang me up at stores or served me food in restaurants. Though millions of adults work for minimum wage, until I did it myself I knew nothing about what that involved, which meant I knew next to nothing about twenty-first-century America.
I was lucky. I didn’t become one of those millions of people trapped as the “working poor.” I made it out. But with all the election talk about the economy, I decided it was time to go back and take another look at where I had been, and where too many others still are.
My Working Life Now
I found things were pretty much the same in 2016 as they were in 2012, which meant — because there was no real improvement — that things were actually worse.
This time around, I worked for a month and a half at a national retail chain in New York City. While mine was hardly a scientific experiment, I’d be willing to bet an hour of my minimum-wage salary ($9 before taxes) that what follows is pretty typical of the New Economy.
Just getting hired wasn’t easy for this 56-year-old guy. To become a sales clerk, peddling items that were generally well under $50 a pop, I needed two previous employment references and I had to pass a credit check. Unlike some low-wage jobs, a mandatory drug test wasn’t part of the process, but there was a criminal background check and I was told drug offenses would disqualify me. I was given an exam twice, by two different managers, designed to see how I’d respond to various customer situations. In other words, anyone without some education, good English, a decent work history, and a clean record wouldn’t even qualify for minimum-wage money at this chain.
And believe me, I earned that money. Any shift under six hours involved only a 15-minute break (which cost the company just $2.25). Trust me, at my age, after hours standing, I needed that break and I wasn’t even the oldest or least fit employee. After six hours, you did get a 45-minute break, but were only paid for 15 minutes of it.
The hardest part of the job remained dealing with… well, some of you. Customers felt entitled to raise their voices, use profanity, and commit Trumpian acts of rudeness toward my fellow employees and me. Most of our “valued guests” would never act that way in other public situations or with their own coworkers, no less friends. But inside that store, shoppers seemed to interpret “the customer is always right” to mean that they could do any damn thing they wished. It often felt as if we were penned animals who could be poked with a stick for sport, and without penalty. No matter what was said or done, store management tolerated no response from us other than a smile and a “Yes, sir” (or ma’am).
The store showed no more mercy in its treatment of workers than did the customers. My schedule, for instance, changed constantly. There was simply no way to plan things more than a week in advance. (Forget accepting a party invitation. I’m talking about childcare and medical appointments.) If you were on the closing shift, you stayed until the manager agreed that the store was clean enough for you to go home. You never quite knew when work was going to be over and no cell phone calls were allowed to alert babysitters of any delay.
And keep in mind that I was lucky. I was holding down only one job in one store. Most of my fellow workers were trying to juggle two or three jobs, each with constantly changing schedules, in order to stitch together something like a half-decent paycheck.
In New York City, that store was required to give us sick leave only after we’d worked there for a full year — and that was generous compared to practices in many other locales. Until then, you either went to work sick or stayed home unpaid. Unlike New York, most states do not require such a store to offer any sick leave, ever, to employees who work less than 40 hours a week. Think about that the next time your waitress coughs.
Minimum Wages and Minimum Hours
Much is said these days about raising the minimum wage (and it should be raised), and indeed, on January 1, 2016, 13 states did raise theirs. But what sounds like good news is unlikely to have much effect on the working poor.
In New York, for instance, the minimum went from $8.75 an hour to the $9.00 I was making. New York is relatively generous. The current federal minimum wage is $7.25 and 21 states require only that federal standard. Presumably to prove some grim point or other, Georgia and Wyoming officially mandate an even lower minimum wage and then unofficially require the payment of $7.25 to avoid Department of Labor penalties. Some Southern states set no basement figure, presumably for similar reasons.
Don’t forget: any minimum wage figure mentioned is before taxes. Brackets vary, but let’s knock an even 10% off that hourly wage just as a reasonable guess about what is taken out of a minimum-wage worker’s salary. And there are expenses to consider, too. My round-trip bus fare every day, for instance, was $5.50. That meant I worked most of my first hour for bus fare and taxes. Keep in mind that some workers have to pay for childcare as well, which means that it’s not impossible to imagine a scenario in which someone could actually come close to losing money by going to work for short shifts at minimum wage.
In addition to the fundamental problem of simply not paying people enough, there’s the additional problem of not giving them enough hours to work. The two unfortunately go together, which means that raising the minimum rate is only part of any solution to improving life in the low-wage world.
At the store where I worked for minimum wage a few years ago, for instance, hours were capped at 39 a week. The company did that as a way to avoid providing the benefits that would kick in once one became a “full time” employee. Things have changed since 2012 — and not for the better.
Four years later, the hours of most minimum-wage workers are capped at 29. That’s the threshold after which most companies with 50 or more employees are required to pay into the Affordable Care Act (Obamacare) fund on behalf of their workers. Of course, some minimum wage workers get fewer than 29 hours for reasons specific to the businesses they work for.
It’s Math Time
While a lot of numbers follow, remember that they all add up to a picture of how people around us are living every day.
In New York, under the old minimum wage system, $8.75 multiplied by 39 hours equaled $341.25 a week before taxes. Under the new minimum wage, $9.00 times 29 hours equals $261 a week. At a cap of 29 hours, the minimum wage would have to be raised to $11.77 just to get many workers back to the same level of take-home pay that I got in 2012, given the drop in hours due to the Affordable Care Act. Health insurance is important, but so is food.
In other words, a rise in the minimum wage is only half the battle; employees need enough hours of work to make a living.
About food: if a minimum wage worker in New York manages to work two jobs (to reach 40 hours a week) without missing any days due to illness, his or her yearly salary would be $18,720. In other words, it would fall well below the Federal Poverty Line of $21,775. That’s food stamp territory. To get above the poverty line with a 40-hour week, the minimum wage would need to go above $10. At 29 hours a week, it would need to make it to $15 an hour. Right now, the highest minimum wage at a state level is in the District of Columbia at $11.50. As of now, no state is slated to go higher than that before 2018. (Some cities do set their own higher minimum wages.)
So add it up: The idea of raising the minimum wage (“the fight for $15”) is great, but even with that $15 in such hours-restrictive circumstances, you can’t make a loaf of bread out of a small handful of crumbs. In short, no matter how you do the math, it’s nearly impossible to feed yourself, never mind a family, on the minimum wage. It’s like being trapped on an M.C. Escher staircase.
The federal minimum wage hit its high point in 1968 at $8.54 in today’s dollars and while this country has been a paradise in the ensuing decades for what we now call the “One Percent,” it’s been downhill for low-wage workers ever since. In fact, since it was last raised in 2009 at the federal level to $7.25 per hour, the minimum has lost about 8.1% of its purchasing power to inflation. In other words, minimum-wage workers actually make less now than they did in 1968, when most of them were probably kids earning pocket money and not adults feeding their own children.
In adjusted dollars, the minimum wage peaked when the Beatles were still together and the Vietnam War raged.
Who Pays?
Many of the arguments against raising the minimum wage focus on the possibility that doing so would put small businesses in the red. This is disingenuous indeed, since 20 mega-companies dominate the minimum-wage world. Walmart alone employs 1.4 million minimum-wage workers; Yum Brands (Taco Bell, Pizza Hut, KFC) is in second place; and McDonald’s takes third. Overall, 60% of minimum-wage workers are employed by businesses not officially considered “small” by government standards, and of course carve-outs for really small businesses are possible, as was done with Obamacare.
Keep in mind that not raising wages costs you money.
Those minimum wage workers who can’t make enough and need to go on food assistance? Well, Walmart isn’t paying for those food stamps (now called SNAP), you are. The annual bill that states and the federal government foot for working families making poverty-level wages is $153 billion. A single Walmart Supercenter costs taxpayers between $904,542 and $1.75 million per year in public assistance money, and Walmart employees account for 18% of all food stamps issued. In other words, those everyday low prices at the chain are, in part, subsidized by your tax money.
If the minimum wage goes up, will spending on food benefits programs go down? Almost certainly. But won’t stores raise prices to compensate for the extra money they will be shelling out for wages? Possibly. But don’t worry — raising the minimum wage to $15 an hour would mean a Big Mac would cost all of 17 cents more.
Time Theft
My retail job ended a little earlier than I had planned, because I committed time theft.
You probably don’t even know what time theft is. It may sound like something from a sci-fi novel, but minimum-wage employers take time theft seriously. The basic idea is simple enough: if they’re paying you, you’d better be working. While the concept is not invalid per se, the way it’s used by the mega-companies reveals much about how the lowest wage workers are seen by their employers in 2016.
The problem at my chain store was that its in-store cafe was a lot closer to my work area than the time clock where I had to punch out whenever I was going on a scheduled break. One day, when break time on my shift came around, I only had 15 minutes. So I decided to walk over to that cafe, order a cup of coffee, and then head for the place where I could punch out and sit down (on a different floor at the other end of the store).
We’re talking an extra minute or two, no more, but in such operations every minute is tabulated and accounted for. As it happened, a manager saw me and stepped in to tell the cafe clerk to cancel my order. Then, in front of whoever happened to be around, she accused me of committing time theft — that is, of ordering on the clock. We’re talking about the time it takes to say, “Grande, milk, no sugar, please.” But no matter, and getting chastised on company time was considered part of the job, so the five minutes we stood there counted as paid work.
At $9 an hour, my per-minute pay rate was 15 cents, which meant that I had time-stolen perhaps 30 cents. I was, that is, being nickel and dimed to death.
Economics Is About People
It seems wrong in a society as wealthy as ours that a person working full-time can’t get above the poverty line. It seems no less wrong that someone who is willing to work for the lowest wage legally payable must also give up so much of his or her self-respect and dignity as a kind of tariff. Holding a job should not be a test of how to manage life as one of the working poor.
I didn’t actually get fired for my time theft. Instead, I quit on the spot. Whatever the price is for my sense of self-worth, it isn’t 30 cents. Unlike most of this country’s working poor, I could afford to make such a decision. My life didn’t depend on it. When the manager told a handful of my coworkers watching the scene to get back to work, they did. They couldn’t afford not to.
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
Wealth Therapists Now Exist to Help Super Rich Cope with Hardships
Sure, 99 percent of us have problems: Can we feed our kids? Will we lose our home to predatory lending? How can we access decent healthcare? That sort of thing.But rich people have problems, too. Luckily, a group of brave psychiatric professionals, dubbed “wealth therapists,” have emerged to come to their aid.
The UK Guardian (America’s best newspaper) profiled Clay Cockrell, a former Wall Street worker turned therapist, who spends his days helping New York’s wealthiest people.
So what issues are America’s One Percent struggling with? Cockrell tells us there is guilt over being rich in the first place, which makes the rich feel that they have to hide the fact that they are rich. And then there is the isolation – being in the One Percent, it turns out, can be lonely.
And the problem is growing. According to Oxfam, the richest One Percent have seen their share of global wealth increase from only 44 percent in 2009 to 48 percent in 2014. It will break 51 percent by next year.
The wealth therapists also say things have only gotten worse for their clients since the debate over income inequality that has been spurred on by movements like Occupy Wall Street.
“The Occupy Wall Street movement singled out the One Percent and painted them globally as something negative,” said Jamie Traeger-Muney, another wealth psychologist. “I am not necessarily comparing it to what people of color have to go through, but it really is making value judgments about a particular group of people as a whole.”
Traeger-Muney specializes in the unique issues inheritors face. “You can come up with lot of words and sayings about inheritors, and not one of them is positive: spoiled brat, born with a silver spoon in their mouth, trust fund babies, all these things,” she said, adding “I am shocked by things that people say. If you substitute in the word Jewish or black, you would never say something like that.”
Hyper-wealthy, we all feel your pain. Thus, today, we are all part of the One Percent. #WealthyLivesMatter (say the wealthy.)
Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.
Pigs: The More Wealth One Accumulates, the More Complicated Life Can Become
Don’t we all know it? The more wealth one accumulates, the more complicated life can become.Luckily, if you’re among the 1 percent, you are not alone. Repeat that: YOU ARE NOT ALONE. There are people ready to help you with the complications of owning more than 99 percent of your fellow citizens.
One such resource in your time of need is Bessemer Trust, a “Private Client Wealth Management” company. As a way of reaching out, they ran this print ad in the Sunday New York Times:
At Bessemer Trust, we believe maintaining wealth from generation to generation is the true art of wealth management. So we have a team of specialists targeted at precisely that… Our client advisory team helps prepare the next generation to responsibly guide your wealth… Our tax strategists help fend off a significant threat to your wealth… Let’s face it, history is littered with family names once associated with great wealth that now are mere footnotes. Everything we do is designed to keep you from becoming one of them. Call us. Minimum relationship $10 million.
Bessemer Trust is There for You
Indeed, on the company’s website, they do warn “Ironically, the more wealth one accumulates, the more complicated life can become.” So, here are some of actual quotes from the company about easing those complications:
— “Whether you are interested in creating a Family Mission Statement, setting up trusts, or establishing a foundation, we can work with you to reflect your family’s core values in your legacy plan.”
— “Reducing the erosion of wealth by implementing planning techniques designed to minimize taxes.”
— “Raising children with the skills, knowledge, and motivation to be financially independent is a complex task for any parent, but wealthy families face a unique set of challenges… Do your children have the financial knowledge to manage wealth? Do members understand the family’s wealth plan?”
— “Engaging and educating the next generation on wealth management issues can be a powerful way to prepare them for the challenges and opportunities life may offer.”
— ”Naming the potential risks to your family and property can be uncomfortable. But not taking the steps necessary to minimize your exposure can prove more onerous in the end.”
— “For many wealthy families, concentrated holdings are a source of pride and a symbol of success.”
The company also arranges “intimate gatherings with other families who face common issues” and has a special advisory service on Yachts and Private Aircraft to “help you understand and assess your personal travel options.” They can also “assist in evaluating the ever-increasing and complex club and resort travel programs.”
One Percent Problems
See, while you struggle with simple problems like paying the rent and scavenging dented cans of hobo beans to feed your feral children, the One Percent have real issues.
Apparently one of the most pressing issues for the wealthy, while admonishing the rest of us to work harder, stop being lazy and pull ourselves up by our bootstraps, is how to make sure their money gets passed on to their kids, so those kiddies do not have to work harder, stop being lazy or pull themselves up by their bootstraps. This assures that while most of us struggle against glass ceilings of one sort or another to rise, rich kids are held safe by marble floors that prevent them from falling. And all thanks to folks like Bessemer Trust!
And kids today, amiright? While many of us hope to pass on skills to our own like how to kite a check and where to redeem aluminum cans for scrap value, the rich face the task of teaching their off-spring how to stay rich.
Another issue for the rich is making sure they and their children don’t have to actually work. That’s the whole idea cited above about “concentrated holdings are a source of pride and a symbol of success.” That means owning stuff, primarily stock. You most likely don’t have this problem, because less than half of Americans don’t own any stock at all. The wealthiest five percent of Americans meanwhile hold some 70 percent of all stock. Bump the “top” group to the wealthiest ten percent of Americans and they own over 80 percent of all stock.
However, it is Bessemer Trust’s special services that really get to the heart of why being super rich is such a grind. I mean, who really has time to personally evaluate “the ever-increasing and complex club and resort travel programs.” Daaady, can you help me with my homework? It’s not fair, I have to evaluate all these club and resort programs by tomorrow and they’re so stupid and complex!!!
I for one am glad I don’t have to deal with stuff like that, and worry about whether my kids are prepared to continue my exploitation of the workers I
ownemploy. What a load off.
BONUS: All of the above is what companies like Bessemer Trust say without shame in public. Imagine what goes on behind their closed doors: “Welcome Mr. Van Buren. Please just leave your satchels of bullion over there next to the complimentary blood of virgins bar. Let me introduce Klaus, who will guide you through the ever-increasing and complex programs for acquiring fresh human organs for your next transplant. Oh, and I understand your daughter would very much like to see a poor child ritually slaughtered for her eighth birthday party. That would be Marie, who sorts those things out for our clients. Refreshment? We feature today a chilled glass of orphan tears.”
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