economics: corporations

Housing is a serious issue across the country, and here in Minneapolis there has been a big discussion about new zoning policies that could be a model for cities everywhere. 

In true midwestern fashion, the favored way to fight this out on the ground is the passive-aggressive yard sign. Homeowners kicked it off, followed by a pro-development crowd seeking more affordable housing.

Regardless of where you stand on the issue, both groups draw grassroots support from local residents who live in Minneapolis and have a stake in how it might change. Just recently, though, someone else jumped on the bandwagon. A new set of shiny yard signs started popping up all over my neighborhood. Someone had coordinated an overnight drop, putting out three or more signs every block with this slogan:

Many of the signs were outside apartment buildings, and it turns out that they came from a group of landlords organizing against protections for renters. I came home to my apartment one day to find three signs posted in the front yard of the building. Nobody told us these signs were going up, and many of them were removed the following week.

This is a classic example of what social scientists call “astroturfing”—a practice where business leaders copy grassroots activism strategies to advocate for their political interests. According to sociologist Edward Walker, full-on astroturfing where a business relies on deception to suggest grassroots support is pretty rare. This is a risky practice that can backfire if they get caught. Instead, business are getting much more savvy by adopting other kinds of grassroots organizing tactics to drive attention to their interests.

These signs show the power of astroturfing, because we usually assume a lawn sign is a pretty direct statement—one that represents the person who lives behind it. Sure, landlords can lobby just like everyone else, but do they have a right to do it in front of where their tenants live, especially if they might disagree? A counter-mobilization effort is already underway in the neighborhood.

Evan Stewart is an assistant professor of sociology at University of Massachusetts Boston. You can follow his work at his website, on Twitter, or on BlueSky.

Originally posted at There’s Research on That!

With a group of coal miners standing behind him, President Donald Trump signed an executive order in his first 100 days reversing Obama-era climate change policies, claiming that he would bring back coal while putting miners to work. Yet, can or will coal mining jobs come back, and will this lead to economic and social development in places like Appalachia?

Probably not.

Much research has shown that the loss of mining jobs in the U.S. is largely due to mechanization and labor-cutting management practices — not environmental protections. Thus, placing the blame on climate change policies is unfounded. Instead, it’s used to scapegoat environmentalists and draw our attention away from corporations and changes in the global economy.

Even if Trump’s executive order could bring back the jobs, it might not have the effects coal miners are hoping for. Researchers find that mining does not always lead to economic growth and well-being. Thus, keeping coal mines open does not guarantee economic prosperity and well-being. A study found that in West Virginia the counties with coal mines have some of the highest poverty and unemployment rates compared to surrounding counties without active mines.

Moreover, sociologist William Freudenberg argues that economies based solely around mining are prone to booms and busts, subject to the whims of the industry. Towns in Appalachian coal country and the Bakken oil fields of North Dakota become “addicted” to extraction. But dependence on fossil fuel industries is economically precarious.

Why don’t these facts change miners’ deep ties to mining as a way of life? Because many have strong cultural connections to mining, often coming from multiple generations of miners. Through her experiences working in a coal mine, anthropologist Jessica Smith Roylston saw how the miner identity connects with masculine ideals of hard work and providing for one’s family.

Photo by nottsexminer; flickr creative commons.

Industry has tapped into these sentiments to generate public support and weave the industry into the fabric of community life. Mining companies, particularly in Appalachia, have actively worked to create a positive image through public relations and other cultural and political tactics, such as sponsoring high school football tournaments and billboard ads.

These corporate strategies place the blame on outsiders and environmentalists, provide a cover for environmentally destructive and job-cutting industry practices, and keep coal politically relevant.

Erik Kojola is a PhD student in the Department of Sociology at the University of Minnesota interested in the environment, labor, social movements and political economy.

Sometimes you have to take the long view.

This week Bill O’Reilly — arguably the most powerful political commentator in America — was let go from his position at Fox News. The dismissal came grudgingly. News broke that he and Fox had paid out $13 million dollars to women claiming O’Reilly sexually harassed them; Fox didn’t budge. They renewed his contract. There was outcry and protests. The company yawned. But when advertisers started dropping The O’Reilly Factor, they caved. O’Reilly is gone.

Fox clearly didn’t care about women — not “women” in the abstract, nor the women who worked at their company — but they did care about their bottom line. And so did the companies buying advertising space, who decided that it was bad PR to prop up a known sexual harasser. Perhaps the decision-makers at those companies also thought it was the right thing to do. Who knows.

Is this progress?

Donald Trump is on record gleefully explaining that being a celebrity gives him the ability to get away with sexual battery. That’s a crime, defined as unwanted contact with an “intimate part of the body” that is done to sexually arouse, gratify, or abuse. He’s president anyway.

And O’Reilly? He walked away with $25 million in severance, twice what all of his victims together have received in hush money. Fox gaves Roger Ailes much more to go away: $40 million. Also ousted after multiple allegations of sexual harassment, his going away present was also twice what the women he had harassed received.

Man, sexism really does pay.

But they’re gone. Ailes and O’Reilly are gone. Trump is President but Billy Bush, the Today host who cackled when Trump said “grab ’em by the pussy,” was fired, too.  Bill Cosby finally had some comeuppance after decades of sexual abuse and rape. At the very least, his reputation is destroyed. Maybe these “victories” — for women, for feminists, for equality, for human decency — were driven purely by greed. And arguably, for all intents and purposes, the men are getting away with it. Trump, Ailes, O’Reilly, Bush, and Cosby are all doing fine. Nobody’s in jail; everybody’s rich beyond belief.

But we know what they did.

Until at least the 1960s, sexual harassment — along with domestic violence, stalking, sexual assault, and rape — went largely unregulated, unnoticed, and unnamed. There was no language to even talk about what women experienced in the workplace. Certainly no outrage, no ruined reputations, no dismissals, and no severance packages. The phrase “sexual harassment” didn’t exist.

In 1964, with the passage of the Civil Rights Act, it became illegal to discriminate against women at work, but only because the politicians who opposed the bill thought adding sex to race, ethnicity, national origin, and religion would certainly tank it. That’s how ridiculous the idea of women’s rights was at the time. But that was then. Today almost no one thinks women shouldn’t have equal rights at work.

What has happened at Fox News, in Bill Cosby’s hotel rooms, in the Access Hollywood bus, and on election day is proof that sexism is alive and well. But it’s not as healthy as it once was. Thanks to hard work by activists, politicians, and citizens, things are getting better. Progress is usually incremental. It requires endurance. Change is slow. Excruciatingly so. And this is what it looks like.Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Late last year Covergirl announced a new spokesmodel, a 17-year-old named James Charles. Their Instagram announcement currently boasts over 53,000 likes, though the comments on the post were decidedly mixed. They ranged from “I will never buy another (coverGIRL) because of this” to  “love love love” and “the world is coming to equality and acceptingness.”

In my circles, the overwhelming response was enthusiasm. Charles’ ascendance to Covergirl status was evidence that gender flexibility was going mainstream. And, I suppose it is.

I am always suspicious, though, of corporate motives. Covergirl’s decision to feature Charles does serve to break down the gender binary, but it does other things, too. Most notably, if makeup companies could convince boys and men that their product is as essential for them as it is for girls and women, it would literally double the size of their market.

That this hasn’t happened yet, in fact, is evidence of the triumph of gender ideology over capitalism. Either companies have decided that there’s (almost) no market in men or men have resisted what marketing has been applied. It’s an impressive resistance to what seems like an obvious expansion. There’s just no money in men thinking their faces look just fine as they are; the fact that we’ve allowed them to do so thus far is actually pretty surprising when you think about it.

If Covergirl had its way, though, I have no doubt that it would make every 17-year-old boy in America into a James Charles. Such a change would contribute to breaking down the gender binary, at least as we know it (though no doubt there are more and less feminist ways of doing this). Of course, if it was advantageous to do so, Covergirl would claim that it had something to do with feminism. But, I wouldn’t buy it.Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

Last month one media behemoth, AT&T, stated it would purchase another, Time Warner, for $85.4 million. AT&T provides a telecommunications service, while Time Warner provides content. The merger represents just one more step in decades of media consolidation, the placing of control over media and media provision into fewer and fewer hands. This graphic, from the Wall Street Journal, illustrates the history of mergers for the latest companies to propose a merger:

4

The purchase raises several issues regarding consumer protections – particularly over privacy, competition, price hikes, and monopoly power in certain markets – and one of these is related to race.

A third of the American population identifies as Latino, African American, Asian American, and Native American, yet members of these groups own only 5% of television stations and 7% of radio stations. Large-scale mergers like the proposed one between AT&T and Time Warner exacerbate this exclusion. Minority-owned media companies tend to be smaller and mergers make it even harder to compete with larger and larger media conglomerates. As a result, minority-owned companies close or are sold and the barriers to entry get raised as well. The research is clear: media consolidation is bad for media diversity.

After the #OscarsSoWhite controversy, the Academy of Motion Picture Arts and Sciences committed to increasing diversity on screen and technology companies have vowed to increase their workforce diversity, but such commitments have done relatively little to improve representation. Such “gentlemen’s agreements” are largely voluntary and are mostly false promises for communities of color.

Advocacy groups and federal authorities should not rely on Memorandum of Understandings to advance inclusion goals. When the AT&T/Time Warner deal gets to the Federal Communications Commission, scrutiny in the name of “public interest” should include the issue of minorities’ inclusion in both the media and technology industries. As a diverse nation struggling with ongoing racial injustices, leaving underrepresented communities out of media merger debates is a disservice not only to those communities, but to us all.

Jason A. Smith is a PhD candidate in the Public Sociology program at George Mason University. His research focuses on race and the media. He recently co-edited the book Race and Contention in Twenty-first Century U.S. Media (Routledge, 2016). He tweets occasionally.

According to this graphic by NPR, “truck driver” is the most common occupation in most US states:

4

But truck driving isn’t what it used to be. In 1980, truckers made the equivalent of $110,000 annually; today, the average trucker makes $40,000. What happened to this omnipresent American occupation?

At the Atlantic, sociologist Steve Viscelli describes his research on truckers. He took an entry level long-haul trucking job, interviewed workers, and studied its history. He found that the industry had essentially eviscerated worker pay, largely by turning truckers into independent contractors, misleading them about the benefits of this arrangement, and locking them into punitive contracts.

Viscelli argues that few truckers are fully informed as to what it means to be an independent contractor, at least at first. Trucking companies sell them on the idea that they’ll be their own boss and set their own hours, but they don’t emphasize that they will pay significantly more taxes, their own expenses, and the lease on a truck. Viscelli interviews one man who took home the equivalent of 50 cents an hour one week; another week he’d ended up owing the company $100. As independent contractors, he writes, truckers “end up working harder and earning far less than they would otherwise.”

If truckers want to get out of these contracts, the companies can hold their lease over their heads. Truckers sign a years-long contract to lease their truck along with a promise not to work for anyone else. If the contract is violated, the worker is on the hook for the entire lease. This could be tens of thousands of dollars, so the trucker can’t afford to quit. He’s no longer working, in other words, to make money; he’s just working, sometimes for years, to avoid debt.

The decimation of this once strongly middle class job is just one story among many. Add them all up — all of those occupations that no longer provide a middle class income, and the rise of lower paying jobs — and you get the shrinking of the middle class. Since 1970, fewer and fewer Americans qualify as middle income, defined as a household income that is between two-thirds of and double the median, or middle, household income.

You can see it shrink in this graphic by Deseret News using data from the Pew Research Center:

4

Part of the reason is that we have transitioned to an industrial economy to one that offers jobs primarily in service (low paying) and knowledge/information (high paying), but the other part is the restructuring of work to increasingly benefit owners, operators, and investors over workers. As the middle class has been shrinking, the productivity of American workers has been climbing, but the workers haven’t been the beneficiaries of their own work. Instead, employers have just been taking a larger and larger share of the value added that workers produce.

Figure from the Wall Street Journal with data from the Economic Policy Institute:

5

Between 1948 and 1973, productivity and wages increased at close to the same rate (97% and 91% respectively), but between 1973 and 2014, productivity has continued to climb (increasing by 72%), while wages have not (increasing by only 9%).

This is why so many Americans are struggling to stay afloat today. We’ve designed an economy that makes it ever more difficult to land in the middle class. Trucking isn’t the job it used to be, that is, because we aren’t the country we used to be.Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

One of the concerns of environmental sociologists is the way that harm is unequally distributed. The way, for example, that poor people and people of color are more likely to live with high levels of lead, near toxic release facilities, with bad air quality, and in the paths of airborne pesticides.

I thought of this research when I saw Time‘s 1-minute illustration of the rise of earthquakes in Oklahoma. To sum, thanks to the particular type of oil drilling done there, the state is now “one of the most seismic places on the planet.” There were 21 earthquakes in 2005. In 2015, there were 5,957. Nine hundred of these were magnitude 3 or higher.

5

Click here to watch the video.

I am trying to imagine what would happen if an industry caused almost 6,000 extra earthquakes annually (and growing) in or near a city America cared about. I’ve lived in Los Angeles and New York and, I can’t be sure but, I suspect politicians there might be quicker to interfere with business practices. And, if they weren’t, the political power of residents of those cities might force them to.

“But it’s just Oklahoma,” is apparently the refrain. Who cares if the oil companies’ saltwater disposal wells are causing the houses of hillbillies to shake? Apparently Okies don’t have anything — aren’t anybody — worth protecting. At least, not over the rights of corporations.Lisa Wade, PhD is an Associate Professor at Tulane University. She is the author of American Hookup, a book about college sexual culture; a textbook about gender; and a forthcoming introductory text: Terrible Magnificent Sociology. You can follow her on Twitter and Instagram.

“That’s private equity for you,” said Steve Jenkins. He was standing outside the uptown Fairway grocery at 125th St. about to go to breakfast at a diner across the street. He no longer works at Fairway.

Steve was one of the early forces shaping Fairway back when it was just one store at 74th and Broadway. He hired on as their cheese guy. “What do you want that for?” he growled at me one day long ago when he saw me with a large wedge of inexpensive brie. “That’s the most boring cheese in the store.” He was often abrasive, rarely tactful. I tried to explain that it was for a party and most of the people wouldn’t care. He would have none of it. He cared. He cared deeply – about cheese, about food generally.

He helped Fairway expand from one store to two, then four. He still selected the cheeses. He wrote the irreverent text for their signs, including the huge electric marquee that drivers on the West Side Highway read. And then in 2007 Fairway got bought out by a private equity firm. The three original founders cashed out handsomely. Steve and others stayed on. Much of their their share of the deal was in Fairway stock, but with restrictions that prevented them from selling.

Fairway kept expanding – stores in more places around New York – and they aimed more at the median shopper. Gradually, the store lost its edge, its quirkiness. With great size comes great McDonaldization – predictability, calculability. “Like no other market,” says every Fairway sign and every Fairway plastic bag. But it became like lots of other markets, with “specials” and coupons. Coupons! Fairway never had coupons. Or specials.

The people who decided to introduce coupons and specials were probably MBAs who knew about business and management and maybe even research on the retail food business. They knew about costs and profits. Knowing about food was for the people below them, people whose decisions they could override.

“I gotta get permission from corporate if I want to use my cell phone,” said Peter Romano, the wonderful produce manager at 74th St. – another guy who’d been there almost from the start. He knew produce like Steve knew cheese. Peter, too, left Fairway a few months ago.

Maybe this is what happens when a relatively small business gets taken over by ambitious suits. Things are rationalized, bureaucratized. And bureaucracy carries an implicit message of basic mistrust:

If we trusted you, we wouldn’t make you get approval. We wouldn’t make you fill out these papers about what you’re doing; we’d just let you do it. These procedures are our way of telling you that we don’t trust you to do what you say you’re doing.

The need for predictability, efficiency, and calculability leave little room for improvisation. The food business becomes less about food, more about business. It stops being fun. The trade-off should be that you get more money. But there too, Fairway’s new management disappointed. They expanded rapidly, putting new stores in questionable locations. In the first months after the private equity firm took Fairway public in 2013, the stock price was as high as $26 a share. Yesterday, it closed at $1.04. The shares that Steve Jenkins and others received as their part of the private equity buyout are practically worthless.

4

Steve Jenkins will be all right. He’s well known in food circles. He’s been on television with Rachel Ray, Jacques Pepin. Still, there he was yesterday morning outside the store whose cheeses and olive oils had been his dominion. “I’m sixty-five years old, and I’m looking for a job.”

Originally posted at Montclair SocioBlog; re-posted at 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.