It seems certain that the political economy textbooks of the future will include a chapter on the experience of Greece in 2015.

On July 5, 2015, the people of Greece overwhelmingly voted “NO” to the austerity ultimatum demanded by what is colloquially being called the Troika, the three institutions that have the power to shape Greece’s future: the European Commission, the International Monetary Fund, and the European Central Bank.

The people of Greece have stood up for the rights of working people everywhere.

Background

Greece has experienced six consecutive years of recession and the social costs have been enormous.  The following charts provide only the barest glimpse into the human suffering:

Infographics / Unemployment
Infographics / Unemployment
Infographics / Social Impact
Infographics / Social Impact
Infographics / Poverty
Infographics / Poverty

While the Troika has been eager to blame this outcome on the bungling and dishonesty of successive Greek governments and even the Greek people, the fact is that it is Troika policies that are primarily responsible. In broad brush, Greece grew rapidly over the 2000s in large part thanks to government borrowing, especially from French and German banks.  When the global financial crisis hit in late 2008, Greece was quickly thrown into recession and the Greek government found its revenue in steep decline and its ability to borrow sharply limited. By 2010, without its own national currency, it faced bankruptcy.

Enter the Troika. In 2010, they penned the first bailout agreement with the Greek government. The Greek government received new loans in exchange for its acceptance of austerity policies and monitoring by the IMF. Most of the new money went back out of the country, largely to its bank creditors. And the massive cuts in public spending deepened the country’s recession.

By 2011 it had become clear that the Troika’s policies were self-defeating. The deeper recession further reduced tax revenues, making it harder for the Greek government to pay its debts. Thus in 2012 the Troika again extended loans to the Greek government as part of a second bailout which included . . . wait for it . . . yet new austerity measures.

Not surprisingly, the outcome was more of the same. By then, French and German banks were off the hook. It was now the European governments and the International Monetary Fund that worried about repayment. And the Greek economy continued its downward ascent.

Significantly, in 2012, IMF staff acknowledged that the its support for austerity in 2010 was a mistake. Simply put, if you ask a government to cut spending during a period of recession you will only worsen the recession. And a country in recession will not be able to pay its debts. It was a pretty clear and obvious conclusion.

But, significantly, this acknowledgement did little to change Troika policies toward Greece.

By the end of 2014, the Greek people were fed up. Their government had done most of what was demanded of it and yet the economy continued to worsen and the country was deeper in debt than it had been at the start of the bailouts. And, once again, the Greek government was unable to make its debt payments without access to new loans. So, in January 2015 they elected a left wing, radical party known as Syriza because of the party’s commitment to negotiate a new understanding with the Troika, one that would enable the country to return to growth, which meant an end to austerity and debt relief.

Syriza entered the negotiations hopeful that the lessons of the past had been learned. But no, the Troika refused all additional financial support unless Greece agreed to implement yet another round of austerity. What started out as negotiations quickly turned into a one way scolding. The Troika continued to demand significant cuts in public spending to boost Greek government revenue for debt repayment. Greece eventually won a compromise that limited the size of the primary surplus required, but when they proposed achieving it by tax increases on corporations and the wealthy rather than spending cuts, they were rebuffed, principally by the IMF.

The Troika demanded cuts in pensions, again to reduce government spending. When Greece countered with an offer to boost contributions rather than slash the benefits going to those at the bottom of the income distribution, they were again rebuffed. On and on it went. Even the previous head of the IMF penned an intervention warning that the IMF was in danger of repeating its past mistakes, but to no avail.

Finally on June 25, the Troika made its final offer. It would provide additional funds to Greece, enough to enable it to make its debt payments over the next five months in exchange for more austerity.  However, as the Greek government recognized, this would just be “kicking the can down the road.” In five months the country would again be forced to ask for more money and accept more austerity. No wonder the Greek Prime Minister announced he was done, that he would take this offer to the Greek people with a recommendation of a “NO” vote.

The Referendum

Almost immediately after the Greek government announced its plans for a referendum, the leaders of the Troika intervened in the Greek debate. For example, as the New York Times reported:

By long-established diplomatic tradition, leaders and international institutions do not meddle in the domestic politics of other countries. But under cover of a referendum in which the rest of Europe has a clear stake, European leaders who have found [Greece Prime Minister] Tsipras difficult to deal with have been clear about the outcome they prefer.

Many are openly opposing him on the referendum, which could very possibly make way for a new government and a new approach to finding a compromise. The situation in Greece, analysts said, is not the first time that European politics have crossed borders, but it is the most open instance and the one with the greatest potential effect so far on European unity…

Martin Schulz, a German who is president of the European Parliament, offered at one point to travel to Greece to campaign for the “yes” forces, those in favor of taking a deal along the lines offered by the
creditors.

On Thursday, Mr. Schulz was on television making clear that he had little regard for Mr. Tsipras and his government. “We will help the Greek people but most certainly not the government,” he said.

European leaders actively worked to distort the terms of the referendum. Greeks were voting on whether to accept or reject Troika austerity policies yet the Troika leaders falsely claimed the vote was on whether Greece should remain in the Eurozone. In fact, there is no mechanism for kicking a country out of the Eurozone and the Greek government was always clear that it was not seeking to leave the zone.

Having whipped up popular fears of an end to the euro, some Greeks began talking their money out of the banks. On June 28, the European Central Bank then took the aggressive step of limiting its support to the Greek financial system.

This was a very significant and highly political step. Eurozone governments do not print their own money or control their own monetary systems. The European Central Bank is in charge of regional monetary policy and is duty bound to support the stability of the region’s financial system. By limiting its support for Greek banks it forced the Greek government to limit withdrawals which only worsened economic conditions and heightened fears about an economic collapse. This was, as reported by the New York Times, a clear attempt to influence the vote, one might even say an act of economic terrorism:    

Some experts say the timing of the European Central Bank action in capping emergency funding to Greek banks this week appeared to be part of a campaign to influence voters.

“I don’t see how anybody can believe that the timing of this was coincidence,” said Mark Weisbrot, an economist and a co-director of the Center for Economic and Policy Research in Washington. “When you restrict the flow of cash enough to close the banks during the week of a referendum, this is a very deliberate move to scare people.”

Then on July 2, three days before the referendum, an IMF staff report on Greece was made public. Echos of 2010, the report made clear that Troika austerity demands were counterproductive. Greece needed massive new loans and debt forgiveness. The Bruegel Institute, a European think tank, offered a summary and analysis of the report, concluding that “the creditors negotiated with Greece in bad faith” and used “indefensible economic logic.”

The leaders of the Troika were insisting on policies that the IMF’s own staff viewed as misguided.  Moreover, as noted above, European leaders desperately but unsuccessfully tried to kill the report. Only one conclusion is possible: the negotiations were a sham.

The Troika’s goals were political: they wanted to destroy the leftist, radical Syriza because it represented a threat to a status quo in which working people suffer to generate profits for the region’s leading corporations. It apparently didn’t matter to them that what they were demanding was disastrous for the people of Greece. In fact, quite the opposite was likely true: punishing Greece was part of their plan to ensure that voters would reject insurgent movements in other countries, especially Spain.

The Vote

And despite, or perhaps because of all of the interventions and threats highlighted above, the Greek people stood firm. As the headlines of a Bloomberg news story proclaimed: “Varoufakis: Greeks Said ‘No’ to Five Years of Hypocrisy.”

The Greek vote was a huge victory for working people everywhere.

Now, we need to learn the lessons of this experience. Among the most important are: those who speak for dominant capitalist interests are not to be trusted. Our strength is in organization and collective action. Our efforts can shape alternatives.

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.

There is new research from the National Center for Education Statistics (NCES), written up by Susan Dynarsky at the New York Times Upshot. The striking finding is that poor children in the top quartile on high school math scores have a 41% chance of finishing a BA degree by their late twenties — the same chance as children from the second-lowest quartile in math scores who are high-socioeconomic status (SES). Poor children from the third-highest quartile in high school math have graduation about equal to the worst-scoring children form the richest group. Here’s the figure:

777

The headline on the figure is misleading, actually, since SES is not measured by wealth, but by a combination of parental education, occupation, and income. (Low here means the bottom quartile of SES, Middle is the 25th to 75th percentile, and High is 75th and up.)

One possible mechanism for the disparity in college completion rates is education expectations. Dynarsky mentions expectations measured in the sophomore year of high school, which was 2002 for this cohort. What she doesn’t mention is how much those expectations changed by senior year. Going to the NCES source for that data (here) I found this chart, which I annotated in red:

Print

Between sophomore and senior year, the percentage expecting to finish a BA degree or more decreased and the percentage expecting to go to two-year college increased, across SES levels. But the change was much greater for lower SES students. So the gap in expecting to go to two-year college between high- and low-SES students grew from 6 to 17 percentage points; that is, from 9% versus 3% in the sophomore year to 22% versus 6% in the senior year.

That’s a big crushing of expectations that happened in the formative years at the end of high school.

Cross-posted at Family Inequality.

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

There was a great article in The Nation last week about social media and ad hoc credit scoring. Can Facebook assign you a score you don’t know about but that determines your life chances?

Traditional credit scores like your FICO or your Beacon score can determine your life chances. By life chances, we generally mean how much mobility you will have. Here, we mean a number created by third party companies often determines you can buy a house/car, how much house/car you can buy, how expensive buying a house/car will be for you. It can mean your parents not qualifying to co-sign a student loan for you to pay for college. These are modern iterations of life chances and credit scores are part of it.

It does not seem like Facebook is issuing a score, or a number, of your creditworthiness per se. Instead they are limiting which financial vehicles and services are offered to you in ads based on assessments of your creditworthiness.

One of the authors of The Nation piece (disclosure: a friend), Astra Taylor, points out how her Facebook ads changed when she started using Facebook to communicate with student protestors from for-profit colleges. I saw the same shift when I did a study of non-traditional students on Facebook.

You get ads like this one from DeVry:

2 (1)

Although, I suspect my ads were always a little different based on my peer and family relations. Those relations are majority black. In the U.S. context that means it is likely that my social network has a lower wealth and/or status position as read through the cumulative historical impact of race on things like where we work, what jobs we have, what schools we go to, etc. But even with that, after doing my study, I got every for-profit college and “fix your student loan debt” financing scheme ad known to man.

Whether or not I know these ads are scams is entirely up to my individual cultural capital. Basically, do I know better? And if I do know better, how do I come to know it?

I happen to know better because I have an advanced education, peers with advanced educations and I read broadly. All of those are also a function of wealth and status. I won’t draw out the causal diagram I’ve got brewing in my mind but basically it would say something like, “you need wealth and status to get advantageous services offered you on the social media that overlays our social world and you need proximity wealth and status to know when those services are advantageous or not”.

It is in interesting twist on how credit scoring shapes life chances. And it runs right through social media and how a “personalized” platform can never be democratizing when the platform operates in a society defined by inequalities.

I would think of three articles/papers in conversation if I were to teach this (hint, I probably will). Healy and Fourcade on how credit scoring in a financialized social system shapes life chances is a start:

providers have learned to tailor their products in specific ways in an effort to maximize rents, transforming the sources and forms of inequality in the process.

And then Astra Taylor and Jathan Sadowski’s piece in The Nation as a nice accessible complement to that scholarly article:

Making things even more muddled, the boundary between traditional credit scoring and marketing has blurred. The big credit bureaus have long had sidelines selling marketing lists, but now various companies, including credit bureaus, create and sell “consumer evaluation,” “buying power,” and “marketing” scores, which are ingeniously devised to evade the FCRA (a 2011 presentation by FICO and Equifax’s IXI Services was titled “Enhancing Your Marketing Effectiveness and Decisions With Non-Regulated Data”). The algorithms behind these scores are designed to predict spending and whether prospective customers will be moneymakers or money-losers. Proponents claim that the scores simply facilitate advertising, and that they’re not used to approve individuals for credit offers or any other action that would trigger the FCRA. This leaves those of us who are scored with no rights or recourse.

And then there was Quinn Norton this week on The Message talking about her experiences as one of those marketers Taylor and Sadowski allude to. Norton’s piece summarizes nicely how difficult it is to opt-out of being tracked, measured and sold for profit when we use the Internet:

I could build a dossier on you. You would have a unique identifier, linked to demographically interesting facts about you that I could pull up individually or en masse. Even when you changed your ID or your name, I would still have you, based on traces and behaviors that remained the same — the same computer, the same face, the same writing style, something would give it away and I could relink you. Anonymous data is shockingly easy to de-anonymize. I would still be building a map of you. Correlating with other databases, credit card information (which has been on sale for decades, by the way), public records, voter information, a thousand little databases you never knew you were in, I could create a picture of your life so complete I would know you better than your family does, or perhaps even than you know yourself.

It is the iron cage in binary code. Not only is our social life rationalized in ways even Weber could not have imagined but it is also coded into systems in ways difficult to resist, legislate or exert political power.

Gaye Tuchman and I talk about this full rationalization in a recent paper on rationalized higher education. At our level of analysis, we can see how measurement regimes not only work at the individual level but reshape entire institutions. Of recent changes to higher education (most notably Wisconsin removing tenure from state statute causing alarm about the role of faculty in public higher education) we argue that:

In short, the for-profit college’s organizational innovation lies not in its growth but in its fully rationalized educational structure, the likes of which being touted in some form as efficiency solutions to traditional colleges who have only adopted these rationalized processes piecemeal.

And just like that we were back to the for-profit colleges that prompted Taylor and Sadowski’s article in The Nation.

Efficiencies. Ads. Credit scores. Life chances. States. Institutions. People. Inequality.

And that is how I read. All of these pieces are woven together and its a kind of (sad) fun when we can see how. Contemporary inequalities run through rationalized systems that are being perfected on social media (because its how we social), given form through institutions, and made invisible in the little bites of data we use for critical minutiae that the Internet has made it difficult to do without.

Tressie McMillan Cottom is an assistant professor of sociology at Virginia Commonwealth University.  Her doctoral research is a comparative study of the expansion of for-profit colleges.  You can follow her on twitter and at her blog, where this post originally appeared.

1
Cartoon by Tony Auth for the Philadelphia Inquirer, featured at The Santa Cruz Comic News.

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.

At the New York Times, Ross Douthat has called out liberals who think, and declare, that churches today are more focused on “culture war” issues like abortion and homosexuality than on poverty.

Ridiculous, says Douthat. Religious organizations spend only “a few hundred million dollars” on pro-life causes and “traditional marriage” but tens of billions on charities, schools, and hospitals. Douthat and his sources, though, lump all spending together rather than separating domestic U.S. budgets from those going to the developing world.  But even in the U.S. and other wealthy countries, abortion and gay marriage are largely legislative and legal matters. Building schools and hospitals and then keeping them running – that takes real money.

Why then do liberals get this impression about the priorities of religious organizations? Douthat blames the media. He doesn’t do a full O’Reilly and accuse the media (liberal, it goes without saying) and others of ganging up in a war on religion, but that’s the subtext.

Anyone who tells you that America’s pastors are obsessed with homosexuality or abortion only hears them through a media filter. You can attend Masses or megachurches for months without having those issues intrude.

Actually, the media do not report on the sermons and homilies of local clergy at all, whether they are urging their flocks to live good lives, become wealthy, help the needy, or oppose gay marriage. Nor is there a data base of these Sunday texts, so we don’t know precisely how much American chuchgoers are hearing about any of these topics. Only a handful of clergy get media coverage, and that coverage focuses on their pronouncements about controversial issues.  As Douthat says, liberals are probably reacting to “religious leaders who make opposition to abortion more of a political priority than publicly-funded antipoverty efforts.”

Of his own Catholic church, Douthat adds, “You can bore yourself to tears reading denominational statements and bishops’ documents (true long before Pope Francis) with a similar result.” Maybe he has done this reading, and maybe he does think that his Church does not let “those issues intrude.” Or as he puts it, “The belief that organized religion is organized around culture war is largely a conceit of the irreligious.”

But here, thanks to the centralized and hierarchical structure of the Church, we can get data that might reveal what the Church is worried about. As Douthat implies, the previous pope (Benedict XVI, the former Joseph Ratzinger), was more concerned about culture-war issues than is the current pope.

How concerned? I went to Lexis-Nexis. I figured that papal pronouncements on these issues would be issued in masses, in official statements, and in addresses.  For each of those three terms, I searched for “Pope Benedict” with four “culture-war” terms (Abortion, Homosexuality, Condom, and Birth control) and Poverty.

3 2 2 (1)
Abortion was the big winner.  Poverty was referred to in more articles than were the other individual culture-war terms.  But if those terms are combined into a single bar, its clear that poverty as a papal concern is dwarfed by the attention to these other issues. The graph below shows the data for “mass.”

1b
This is not the best data. It might reflect the concerns of the press more than those of the Church. Also, some of those Lexis-Nexis articles are not direct hits. They might reference an “address” or “statement” by someone else. But there’s no reason to think that these off-target citations are skewed towards Abortion and away from Poverty.So it’s completely understandable that liberals, and perhaps non-liberals as well, have the impression that Big Religion has a big concern with matters of sex and reproduction.Cross-posted at Montclair SocioBlog and Pacific Standard.

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.

Chris Christie’s net worth (at least $4 million) is 50 times that of the average American. His household income of $700,000 (his wife works in the financial sector) is 13 times the national median.  But he doesn’t think he’s rich.

I don’t consider myself a wealthy man. . . . and I don’t think most people think of me that way.

That’s what he told the Manchester Union-Leader on Monday when he was in New Hampshire running for president.

Of course, being out of touch with reality doesn’t automatically disqualify a politician from the Republican nomination, even at the presidential level, though misreading the perceptions of “most people” may be a liability.

But I think I know what Christie meant. He uses the term “wealth,” but what he probably has in mind is class.  He says, “Listen, wealth is defined in a whole bunch of different ways . . . ”  No, Chris. Wealth is measured one way – dollars. It’s social class that is defined in a whole bunch of different ways.

One of those ways, is self-perception.

“If you were asked to use one of four names for your social class, which would you say you belong in: the lower class, the working class, the middle class, or the upper class?”

That question has been part of the General Social Survey since the start in 1972. It’s called “subjective social class.” It stands apart from any objective measures like income or education. If an impoverished person who never got beyond fifth grade says that he’s upper class, that’s what he is, at least on this variable. But he probably wouldn’t say that he’s upper class.

Neither would Chris Christie. But why not?

My guess is that he thinks of himself as “upper middle class,” and since that’s not one of the GSS choices, Christie would say “middle class.”  (Or he’d tell the GSS interviewer where he could stick his lousy survey. The governor prides himself on his blunt and insulting responses to ordinary people who disagree with him.)

1c

This  self-perception as middle class rather than upper can result from “relative deprivation,” a term suggesting that how you think about yourself depends on who are comparing yourself with.* So while most people would not see the governor as “deprived,” Christie himself travels in grander circles. As he says, “My wife and I . . . are not wealthy by current standards.” The questions is “Which standards?”  If the standards are those of the people whose private jets he flies on, the people he talks with in his pursuit of big campaign donations – the Koch brothers, Ken Langone (founder of Home Depot), Sheldon Adelson, Jerry Jones, hedge fund billionaires, et al. – if those are the people he had in mind when he said, “We don’t have nearly that much money,” he’s right. He’s closer in wealth to you and me and middle America than he is to them.

I also suspect that Christie is thinking of social class not so much as a matter of money as of values and lifestyle – one of  that bunch of ways to define class. To be middle class is to be one of those solid Americans – the people who, in Bill Clinton’s phrase, go to work and pay the bills and raise the kids. Christie can see himself as one of those people. Here’s a fuller version of the quote I excerpted above.

Listen, wealth is defined in a whole bunch of different ways and in the end Mary Pat and I have worked really hard, we have done well over the course of our lives, but, you know, we have four children to raise and a lot of things to do.

He and his wife go to work; if they didn’t, their income would drop considerably. They raise the kids, probably in conventional ways rather than sloughing that job off on nannies and boarding schools as upper-class parents might do. And they pay the bills. Maybe they even feel a slight pinch from those bills. The $100,000 they’re shelling out for two kids in private universities may be a quarter of their disposable income, maybe more. They are living their lives by the standards of “middle-class morality.” Their tastes too are probably in line with those of mainstream America. As with income, the difference between the Christies and the average American is one of degree rather than kind. They prefer the same things; they just have a pricier version. Seats at a football game, albiet in the skyboxes, but still drinking a Coors Light. It’s hard to picture the governor demanding a glass of Haut Brion after a day of skiing on the slopes at Gstaad, chatting with (God forbid) Euorpeans.

Most sociological definitions of social class do not include values and lifestyle, relying on more easily measured variables like income, education, and occupation. But for many people, including the governor, morality and consumer preference may weigh heavily in perceptions and self-perceptions of social class.

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.

1,007,000 Americans working full-time earn the federal minimum wage of $7.25 per hour. All of that pay, to all of those people, for all of 2014 adds up to $14 billion dollars. And that is less than half of what employees on Wall Street earned in bonuses alone.

This is your image of the week:

4

Source: Institute for Policy Studies.

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.

Every year the National Priorities Project helps Americans understand how the money they paid in federal taxes was spent. Here’s the data for 2014:

2

Since the 1940s, individual Americans have paid 40-50% of the federal government’s bills through taxes on income and investment. Another chunk (about 1/3rd today) is paid in the form of payroll taxes for things like social security and medicare. This year, corporate taxes made up only about 11% of the federal government’s revenue; this is way down from a historic high of almost 40% in 1943.

3

Visit the National Priorities Project here and find out where state tax dollars went, how each state benefits from federal tax dollars, and who gets the biggest tax breaks. Or fiddle around with how you would organize American priorities.

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.