Tag Archives: economics: capitalism

Opinions on Economic Inequality Driven by Ideology, not Income

A majority of both Democrats and Republicans believe that economic inequality in the U.S. has grown, but they disagree as to its causes and the best solutions, according to a new survey from the Pew Research Center.  While 61% of Republicans and 68% of Democrats say inequality has widened, only 45% of Republicans say that the government should do something about it, compared to 90% of Democrats.  A study using the General Social Survey has confirmed the findings.

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Republicans and Democrats also disagree about what the best interventions would be.  At least three-quarters of Democrats favor taxes on the wealthy and programs for the poor, but 65% of Republicans think that helping the poor does more harm than good.Screenshot (25)

The differences may be related to beliefs about the cause of poverty.  Republicans are much more likely to endorse an individualist explanation (e.g., people are poor because they are lazy), whereas Democrats are more likely to offer a structural explanation (e.g., it matters where in the class structure you begin and how we design the economic system).

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Interestingly, answers to these questions vary much more by political affiliation than social class.  Using data from the survey, I put together this table comparing the number of percentage points that separated the average answers to various questions.  On the left is the difference by political party and, on the right, income (click to enlarge).

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Clearly political affiliation drives opinions on the explanation for and right solutions to income inequality more so than income itself.

This is a great example of hegemony.  A hegemonic ideology is one that is widely supported, even by people who are clearly disadvantaged by it.  In this case, whatever you think of our economic system, it is pretty stunning that only there is only a six point gap between the percent of high income people saying it’s fair and the percent of low income people saying so.  That’s the power of ideology — in this case, political affiliation — to shape our view of the world, even going so far as to influence people to believe in and perhaps vote for policies that are not in their best interest.

Cross-posted at Pacific Standard.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Teachers Offered Personal Loans to Buy School Supplies

If you’re looking for just one image that says a thousand words about what’s wrong with America, here’s a contender.  It is a screenshot of the website for the Silver State Schools Credit Union:

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Yep, it’s an invitation to K-12 teachers to go into debt to do their job.

Speechless.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

My Two Cents on Feminism and Miley Cyrus

We’re celebrating the end of the year with our most popular posts from 2013, plus a few of our favorites tossed in.  Enjoy!

Oddly, three high profile female musicians find themselves in a public debate about what it means to be a feminist.  We can thank Miley Cyrus for the occasion.  After claiming that the video for Wrecking Ball was inspired by Sinead O’Connor’s Nothing Compares to You, O’Connor wrote an open letter to the performer.  No doubt informed by Cyrus’ performance at the VMAs, she argued that the music industry would inevitably exploit Cyrus’ body and leave her a shell of a human being.  Amanda Palmer, another strong-minded female musician, responded to O’Connor.  She countered with the idea that all efforts to control women’s choices, no matter how benevolent, were anti-feminist.

I keep receiving requests to add my two cents.  So, here goes: I think they’re both right, but only half right.  And, when you put the two sides together, the conclusion isn’t as simple as either of them makes it out to be.  Both letters are kind, compelling, and smart, but neither capture the deep contradictions that Cyrus – indeed all women in the U.S. – face every day.

Cyrus in Wrecking Ball:

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O’Connor warns Cyrus that the music industry is patriarchal and capitalist.  In so many words, she explains that the capitalists will never pay Cyrus what she’s worth because doing so leaves nothing to skim off the top.  The whole point is to exploit her.  Meanwhile, her exploitation will be distinctly gendered because sexism is part of the very fabric of the industry.  O’Connor writes:

The music business doesn’t give a shit about you, or any of us. They will prostitute you for all you are worth… and when you end up in rehab as a result of being prostituted, “they” will be sunning themselves on their yachts in Antigua, which they bought by selling your body…

Whether Cyrus ends up in rehab remains to be seen but O’Connor is, of course, right about the music industry. This is not something that requires argumentation, but is simply true in a patriarchal, capitalist society.  For-profit industries are for profit.  You may think that’s good or bad, but it is, by definition, about finding ways to extract money from goods and services and one does that by selling it for more than you paid for it.  And media companies of all kinds are dominated at almost all levels by (rich, white) men. These are the facts.

Disagreeing, Palmer claims that O’Connor herself is contributing to an oppressive environment for women.  All women’s choices, Palmer argues, should be considered fair game.

I want to live in a world where WE as women determine what we wear and look like and play the game as our fancy leads us, army pants one minute and killer gown the next, where WE decide whether or not we’re going to play games with the male gaze…

In Palmer’s utopia, no one gets to decide what’s best for women.  The whole point is to have all options on the table, without censure, so women can pick and choose and change their mind as they so desire.

This is intuitively pleasing and seems to mesh pretty well with a decent definition of “freedom.”  And women do have more choices – many, many more choices – than recent generations of women. They are now free to vote in elections, wear pants, smoke in public, have their own bank accounts, play sports, go into men’s occupations and, yes, be unabashedly sexual.  Hell they can even run for President.  And they get to still do all the feminine stuff too!  Women have it pretty great right now and Palmer is right that we should defend these options.

So, both are making a feminist argument.  What, then, is the source of the disagreement?

O’Connor and Palmer are using different levels of analysis.  Palmer’s is straightforwardly individualistic: each individual woman should be able to choose what she wants to do.  O’Connor’s is strongly institutional: we are all operating within a system – the music industry, in this case, or even “society” – and that system is powerfully deterministic.

The truth is that both are right and, because of that, neither sees the whole picture.  On the one hand, women are making individual choices. They are not complete dupes of the system.  They are architects of their own lives.   On the other hand, those individual choices are being made within a system.  The system sets up the pros and cons, the rewards and punishments, the paths to success and the pitfalls that lead to failure.  No amount of wishing it were different will make it so.  No individual choices change that reality.

So, Cyrus may indeed be “in charge of her own show,” as Palmer puts it.  She may have chosen to be a “raging, naked, twerking sexpot” all of her own volition.  But why?  Because that’s what the system rewards.  That’s not freedom, that’s a strategy.

In sociological terms, we call this a patriarchal bargain.  Both men and women make them and they come in many different forms. Generally, however, they involve a choice to manipulate the system to one’s best advantage without challenging the system itself.  This may maximize the benefits that accrue to any individual woman, but it harms women as a whole.  Cyrus’ particular bargain – accepting the sexual objectification of women in exchange for money, fame, and power – is a common one.  Serena Williams, Tila Tequila, Kim Kardashian, and Lady Gaga do it too.

We are all Miley, though.  We all make patriarchal bargains, large and small.  Housewives do when they support husbands’ careers on the agreement that he share the dividends.  Many high-achieving women do when they go into masculinized occupations to reap the benefits, but don’t challenge the idea that occupations associated with men are of greater value.  None of us have the moral high ground here.

So, is Miley Cyrus a pawn of industry patriarchs?  No.  Can her choices be fairly described as good for women?  No.

That’s how power works. It makes it so that essentially all choices can be absorbed into and mobilized on behalf of the system.  Fighting the system on behalf of the disadvantaged – in this case, women – requires individual sacrifices that are extraordinarily costly.  In Cyrus’ case, perhaps being replaced by another artist who is willing to capitulate to patriarchy with more gusto.  Accepting the rules of the system translates into individual gain, but doesn’t exactly make the world a better place.  In Cyrus’ case, her success is also an affirmation that a woman’s worth is strongly correlated with her willingness to commodify her sexuality.

Americans want their stories to have happy endings.  I’m sorry I don’t have a more optimistic read.  If the way out of this conundrum were easy, we’d have fixed it already.  But one thing’s for sure: it’s going to take collective sacrifice to bring about a world in which women’s humanity is so taken-for-granted that no individual woman’s choices can undermine it.  To get there, we’re going to need to acknowledge the power of the system, recognize each other as conscious actors, and have empathy for the difficult choices we all make as we try to navigate a difficult world.

Cross-posted at Pacific Standard.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Militarizing Santa: Then and Now

Since 1958, the North American Aerospace Defense Command (NORAD) has entertained kids with an annual Christmas-themed Santa-tracking program.  Kids keep an eye on where in the world Santa is delivering his gifts and everyone thinks it’s jolly.

Well, not this year.  Earlier this month we learned that Santa will be joined by two military fighter jets.  Some objected to the new twist on the tradition, arguing that it militarized Santa, essentially brainwashing kids into romanticizing the ugly necessity of defense and the aggression of war.

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Is it pro-U.S. military propaganda?

If it is, it’s nothing new.  Ben Ostrowsky sent us this World War II-era propaganda poster. It was part of a series produced by the labor union and corporation-led War Production Board in 1942.  The aim was to engage as many civilians and companies in weapon production as they could.  “Santa Claus has gone to War!” it exclaims.  Maybe he needs those fighter jets along for the ride after all.

1P.S. In case anyone is still debating: this proves not only that Santa Claus is white, but that he’s an American too.  Team America!

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

1/3 of People Say Commercialism is the Worst Part of Christmas

In Pew Research Center data collected earlier this month, only 4% of respondents said that the thing they liked best about Christmas was the gift exchange. Only 1% said they most liked shopping or good deals and only 2% said it was the food.  Instead, the majority (69%) said it was the family and friend time that they most appreciated, followed by religious reflection (11%), and general happiness and joy (7%).  My pet suspicion, that people really like it for the vacation, came in at only 3%.

What do they like the least?  Commercialism and materialism top the list (33%), the expense comes in second (22%), and shopping comes in third (10%).

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There may be some response bias here — that’s when people say what they think the researcher wants to hear instead of the truth — but, if the data are good, it reveals why marketers have to try so damn hard every season to convince us that the gifts, decorations, and food are what make the holiday special.  What would happen to spending if we all decided to do Christmas the way we wanted instead of the way it is in toy and jewelry commercials?  There are lots of monied forces that don’t want us to find out.

1All images from a Google search for “Christmas marketing.”

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

A Short History of Santa Claus

Posted last year, but I love it, so here it is again!

In this fun four minute history of Santa Claus, CGP Gray explains how the character evolved, the role of Coca Cola, his conquest of the globe (i.e., Santa’s cultural imperialism), and the ongoing debates about where, exactly, he lives.

Also from CGP Gray:

Via Blame It On The Voices.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

U.S. Corporations are Hoarding Wealth at Highest Rate Since 1971

The dominant firms in the U.S. and other major capitalist counties are happily making profits, but they aren’t interested in investing them in new plants and equipment that increase productivity and create jobs.  Rather they prefer to use their earnings to acquire other firms, reward their managers and shareholders, or increase their holdings of cash and other financial assets.

The chart below, taken from a Michael Burke post in the Irish Left Review, shows trends in both U.S profits and investment .

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As you can see the increase in profits (in orange) has swamped the increase in investment (in blue) over the relevant time period; in fact, investment in current dollars has actually been falling.

Looking at the ratio between these two variables helps us see even more clearly the growth in firm reluctance to channel profits into investment.  The investment ratio (investment/profits) was 62% in 1971, peaked at 69% in 1979, fell to 61% in 2000 and 56% in 2008, and dropped to an even lower 46% in 2012.

According to Burke,  if U.S. firms were simply to invest at the level they did in 1979, not even the peak, the increase in investment in the American economy would exceed $1.5 trillion, close to 10% of GDP.

The same dynamic is observable in the other main capitalist economies:

In 1995 the investment ratio in the Euro Area was 51.7% and by 2008 it was 53.2%. It fell to 47.1% in 2012. In Britain the investment ratio peaked at 76% in 1975 but by 2008 had fallen to 53%. In 2012 it was just 42.9% (OECD data).

So what are firms doing with their money? As Burke explains:

The uninvested portion of firms’ surplus essentially has only two destinations, either as a return to the holders of capital (both bondholders and shareholders), or is hoarded in the form of financial assets. In the case of the U.S. and other leading capitalist economies both phenomena have been observed. The nominal returns to capital have risen (even while the investment ratio has fallen) and financial assets including cash balances have also risen.

So, with firms seeing no privately profitable outlet for their funds, despite great societal needs, their owners appear content to reward themselves and sock away the rest in the financial system.  In many ways this turns out to be a self-reinforcing dynamic.  No wonder things are so bad for so many.

Cross-posted at Reports from the Economic Front.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Does History Repeat Itself, But With More Porn?

In 1990 I was still an American Culture major in college, but I was getting ready to jump ship for sociology. That’s when Madonna’s “Justify My Love” video was banned by MTV, which was a thing people used to use to watch videos. And network TV used to be a major source of exposure.

I was watching when Madonna went on Nightline for an interview.  The correspondent intoned:

…nudity, suggestions of bisexuality, sadomasochism, multiple partners. Finally, MTV decided Madonna has gone to far.

They showed the video, preceded by a dire parental warning (it was 11:30 p.m., and there was no way to watch it at any other time).  In the interview, Forrest Sawyer eventually realize he was being played:

Sawyer: This was a win-win for you. If they put the video on, you would get that kind of play. And if they didn’t you would still make some money. It was all, in a sense, a kind of publicity stunt. … But in the end you’re going to wind up making even more money than you would have.

Madonna: Yeah. So, lucky me.

The flap over Miley Cyrus completely baffles me. This is a business model (as artistic as any other commercial product), and it hasn’t changed much, just skinnier, with more nudity and (even) less feminism. I don’t understand why this is any more or less controversial than any other woman dancing naked. Everyone does realize that there is literally an infinite amount of free hardcore porn available to every child in America, right? There is no “banning” a video. (Wrecking Ball is pushing 250 million views on YouTube.)
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No one is censoring Miley Cyrus — is there some message I’m missing? When she talked to Matt Lauer he asked, “Are you surprised by the attention you’re getting right now?” And she said, “Not really. I mean, it’s kind of what I want.”

I think the conversation has slid backward. In Lisa Wade’s excellent comment, she draws on a 1988 article, “Bargaining With Patriarchy,” which concluded:

Women strategize within a set of concrete constraints, which I identify as patriarchal bargains. Different forms of patriarchy present women with distinct “rules of the game” and call for different strategies to maximize security and optimize life options with varying potential for active or passive resistance in the face of oppression.

I think it applies perfectly to Miley Cyrus, if you replace “security” and “life options” with “celebrity” and “future island-buying potential.” Lisa is 1,000-times more plugged in to kids these days than I am, and the strategies-within-constraints model is well placed. But that article is from 1988, and it applies just as well to Madonna. So where’s the progress here?

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Interviewed by Yahoo!, Gloria Steinem said, “I wish we didn’t have to be nude to be noticed … But given the game as it exists, women make decisions.” That is literally something she could have said in 1990.

The person people are arguing about has (so far) a lot less to say even than Madonna did. When Madonna was censored by MTV, Camile Paglia called her “the true feminist.”

She exposes the puritanism and suffocating ideology of American feminism, which is stuck in an adolescent whining mode. Madonna has taught young women to be fully female and sexual while still exercising total control over their lives. She shows girls how to be attractive, sensual, energetic, ambitious, aggressive and funny — all at the same time.

When Miley Cyrus caused a scandal on TV, Paglia could only muster, “the real scandal was how atrocious Cyrus’ performance was in artistic terms.”

Madonna was a bonafide challenge to feminists, for the reasons Paglia said, but also because of the religious subversiveness and homoerotic stuff. Madonna went on, staking her claim to the “choice” strand of feminism:

I may be dressing like the typical bimbo, whatever, but I’m in charge. You know. I’m in charge of my fantasies. I put myself in these situations with men, you know, and… people don’t think of me as a person who’s not in charge of my career or my life, okay. And isn’t that what feminism is all about, you know, equality for men and women? And aren’t I in charge of my life, doing the things I want to do? Making my own decisions?

And she embraced some other feminist themes. When Madonna was asked on Nightline, “Where do you draw the line?” she answered, “I draw the line with violence, and humiliation and degradation.”

I’m not saying there hasn’t been any progress since 1990. It’s more complicated than that. On matters of economic and politics gender has pretty well stalled. The porn industry has made a lot of progress. Reported rape has become less common, along with other forms of violence.

But — and please correct me if I’m wrong — I don’t see the progress in this conversation about whether it’s feminist or anti-feminist for a women to use sex or nudity to sell her pop music. As Lisa Wade says, “Because that’s what the system rewards. That’s not freedom, that’s a strategy.” So I would skip that debate and ask whether the multi-millionaire in question is adding anything critical to her product, or using her sex-plated platform for some good end.  Madonna might have. So far Miley Cyrus isn’t.

Cross-posted at Family Inequality and Pacific Standard.

Philip N. Cohen is a professor of sociology at the University of Maryland, College Park, and writes the blog Family Inequality. You can follow him on Twitter or Facebook.