Tag Archives: economics

Modern Politics, the Slave Economy, and Geological Time

Flashback Friday.

I have borrowed the information and images below from Jeff Fecke at Alas A Blog.  His discussion, if you’re interested, is more in depth.

There is a winding line of counties stretching from Louisiana to South Carolina, a set of states that largely voted for McCain in 2008, that went for Obama.  The map below shows how counties voted in blue and red and you can clearly see this interesting pattern.

 

These counties went overwhelmingly for Obama in part because there is large black population.  Often called the “Black Belt,” these counties more so than the surrounding ones were at one time home to cotton plantations and, after slavery was ended, many of the freed slaves stayed.  This image nicely demonstrates the relationship between the blue counties and cotton production in 1860:

 

But why was there cotton production there and not elsewhere?  The answer to this question is a geological one and it takes us all the way back to 65 million years ago when the seas were higher and much of the southern United States was under water.  This image illustrates the shape of the land mass during that time:

I’ll let Jeff take it from here:

Along the ancient coastline, life thrived, as usually does. It especially thrived in the delta region, the Bay of Tennessee, if you will. Here life reproduced, ate, excreted, lived, and died. On the shallow ocean floor, organic debris settled, slowly building a rich layer of nutritious debris. Eventually, the debris would rise as the sea departed, becoming a thick, rich layer of soil that ran from Louisiana to South Carolina.

65 million years later, European settlers in America would discover this soil, which was perfect for growing cotton.

So there you have it: the relationship between today’s political map, the economy, and 65 million years ago.

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. Jobs Are Back, but They’re No Match for Population Growth

Last week CNN triumphantly reported that the job market has recovered to its 2008 peak.  Here’s the headline:

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Not so fast, though.

Sociologist Philip Cohen observes that the real news is hidden in the fourth paragraph. There the author of the piece acknowledges that the job data are numbers, not proportions.  The numbers have bounced back but, because of the addition of almost 12 million people to the U.S. population, the percent of Americans who have jobs or are in school remains lower than it was in 2008.

From CNN:

Given population growth over the last four years, the economy still needs more jobs to truly return to a healthy place. How many more? A whopping 7 million, calculates Heidi Shierholz, an economist with the Economic Policy Institute.

Using the Bureau of Labor Statistics, Cohen offers us a clearer look at where we’re at:

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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 Way for Feminism to Overcome its “Class Problem”: Unions

The Nation sparked a robust discussion last week with its incisive online conversation, Does Feminism Have a Class Problem? The panelists addressed the “Lean In” phenomenon, articulating how and why Sheryl Sandberg’s focus on self-improvement – rather than structural barriers and collective action to overcome them – angered quite a few feminists on the left.

While women of different economic backgrounds face many different realities, they also share similar work-life balance struggles. In that vein, the discussants argue that expanding family-friendly workplace policies – which would improve the lives of working women up and down the economic ladder – could help bridge the feminist class divide.

A growing body of research indicates that there are few other interventions that improve the economic prospects and work-life balance of women workers as much as unions do. A new report from the Center for Economic and Policy Research (CEPR), which I co-authored with my colleagues Janelle Jones and John Schmitt, shows just how much of a boost unions give to working women’s pay, benefits and workplace flexibility.Photo Credit:Minnesota Historical Society

For example, all else being equal, women in unions earn an average of 13 percent – that’s about $2.50 per hour – more than their non-union counterparts. In other words, unionization can raise a woman’s pay as much as a full year of college does. Unions also help move us closer to equal pay: a study by the National Women’s Law Center determined that the gender pay gap for union workers is only half of what it is for those not in unions.

Unionized careers tend to come with better health and retirement benefits, too. CEPR finds that women in unions are 36 percent more likely to have health insurance through their jobs – and a whopping 53 percent more likely to participate in an employer-sponsored retirement plan.

Unions also support working women at those crucial times when they need time off to care for themselves or their families. Union workplaces are 16 percent more likely to allow medical leave and 21 percent more likely to offer paid sick leave. Companies with unionized employees are also 22 percent more likely to allow parental leave, 12 percent more likely to offer pregnancy leave, and 19 percent more likely to let their workers take time off to care for sick family members.

Women make up almost half of the union workforce and are on track to be in the majority by 2025. As women are overrepresented in the low-wage jobs that are being created in this precarious economy – they are 56.4% of low-wage workers and over half of fast food workers – unions are leading and supporting many of the campaigns to improve their situations. In an important sense, the union movement already is a women’s movement.

Education and skills can get women only so far. It’s a conundrum that women have surpassed men when it comes to formal schooling, yet women have made little progress catching up on pay. Many women who do everything right — getting more education and skills — still find themselves with low wages and no benefits.

With unions already playing a central role in helping to meet the needs working women and their families in the 21st century economy, anyone concerned about the well-being of women should also care about unions.

Nicole Woo is the director of domestic policy at the Center for Economic and Policy Research.  This post is based on her new study,  “Women, Working Families, and Unions,” and originally appeared at Girl w/ Pen!

The Hidden Culprit Behind Rising Tuition: Wall Street

In the lasts 15 years, student debt has grown by over 1,000% and the debt held by public colleges and universities has tripled.  Where is the money going?

The scholars behind a new report, Borrowing Against the Future: The Hidden Costs of Financing U.S. Higher Education, argue that profit is the culprit.  They write:

Scholars have offered several explanations for these high costs including faculty salaries, administrative bloat, and the amenities arms race. These explanations, however, all miss a crucial piece of the puzzle.

Sociologist Charlie Eaton and his colleagues crunched the numbers and found that spending on actual education has stagnated, while financial speculators have been taking an increasing amount of money off of the top.

Higher education fills the pockets of investors in three ways:

  • Interest on student loans, paid by students and parents.
  • Interest paid by colleges who take out loans to fund projects — everything from new academic buildings to luxury dorms and stadiums — ultimately repaid with tuition hikes and higher taxes.
  • And profit from for-profit colleges (with “dismal graduation rates, by the way).

Take a look at this figure breaking down the sources of the rise in the cost of higher education.  Interest on debt — taken on by both students and the colleges they attend — has risen.  Meanwhile, direct profits from for-profit colleges have skyrocketed.

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Overall, Eaton and his colleagues found that Americans are spending $440 billion dollars a year on higher education and that 10% of that goes into the pockets of investors who are skimming profit off of all forms of higher education.

Want more?  Read their report or watch their summary:

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.

Becoming Wealthy: The Myth of Meritocracy

Flashback Friday. 

How do people in the U.S. become wealthy?  According to the myth of meritocracy, they do so by hard work: blood, sweat, tears, a trace of talent, and a tad bit of luck.  This is the story told in this two-page ad for U.S. Trust in The New Yorker:

On the first page we learn she’s rich, but she’s still a home-town girl at heart. On the second page, we learn a little about how she might have gotten so wealthy:

Note the first few sentences:

Who’s to say how it happened. A big idea. A gutsy work ethic. A lucky break here and there.

Well, uh…what about, “She inherited it”? That’s a pretty common way to end up with a whole bunch of houses and in need of a wealth management team.

The notion that rich people are rich because their parents are rich, however, interrupts the American mystique, the one where we are a country of self-made immigrants who pulled ourselves up by our bootstraps.  People, even people who inherited wealth, like to think that they’re rich because they worked hard.  Hence, the romanticization of the self-made millionaire in the ad and the corresponding invisibility of the inheritance loophole.

On the flipside, this narrative also supports the converse idea that the poor are poor because of their lack of personal efforts and merits.  Perhaps they didn’t have a “big idea’ or the “gutsy work ethic” that enabled them to profit from the lucky break that they inevitably encountered, right?

This ad is just one drop in the sea of propaganda that makes it seem right and normal that a small proportion of our population is able to hoard wealth and property.

This post originally appeared in 2008.

Gwen Sharp is an associate professor of sociology at Nevada State College. You can follow her on Twitter at @gwensharpnv.

Insurance Companies and the Cost of Health Care

When my primary care physician, a wonderful doctor, told me he was retiring, he said, “I just can’t practice medicine anymore the way I want to.” It wasn’t the government or malpractice lawyers. It was the insurance companies.

This was long before Obamacare.  It was back when President W was telling us that “America has the best health care system in the world”; back when “the best” meant spending twice as much as other developed countries and getting health outcomes that were no better and by some measures worse. (That’s still true).

Many critics then blamed the insurance companies, whose administrative costs were so much higher than those of public health care, including our own Medicare. Some of that money went to employees whose job it was to increase insurers’ profits by not paying claims.  Back then we learned the word “rescission”  – finding a pretext for cancelling the coverage of people whose medical bills were too high.   Insurance company executives, summoned to Congressional hearings, stood their ground and offered some misleading statistics

None of the Congressional representatives on the committee asked the execs how much they were getting paid. Maybe they should have.

Health care in the U.S. is a $2.7 trillion dollar business, and the New York Times has an article about who’s getting the big bucks.  Not the doctors, it turns out.  And certainly not the people who have the most contact with sick people – nurses, EMTs, and those further down the chain.  Here’s the chart from the article, with an inset showing those administrative costs.

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As fine print at the top of the chart says, these are just salaries – walking-around money an exec gets for showing up.  The real money is in the options and incentives.

In a deal that is not unusual in the industry, Mark T. Bertolini, the chief executive of Aetna, earned a salary of about $977,000 in 2012 but a total compensation package of over $36 million, the bulk of it from stocks vested and options he exercised that year.

The anti-Obamacare rhetoric has railed against a “government takeover” of medicine. It is, of course, no such thing. Obama had to remove the “public option”; Republicans prevented the government from fielding a team and getting into the game. Instead, we have had an insurance company takeover of medicine. It’s not the government that’s coming between doctor and patient, it’s the insurance companies. Those dreaded “bureaucrats” aren’t working for the government of the people, by the people, and for the people. They’ve working for Aetna and Well-Point.

Even the doctors now sense that they too are merely working for The Man.

Doctors are beginning to push back: Last month, 75 doctors in northern Wisconsin [demanded] . . . health reforms . . . requiring that 95 percent of insurance premiums be used on medical care. The movement was ignited when a surgeon, Dr. Hans Rechsteiner, discovered that a brief outpatient appendectomy he had performed for a fee of $1,700 generated over $12,000 in hospital bills, including $6,500 for operating room and recovery room charges.

That $12,000 tab, for what it’s worth, is slightly under the U.S. average.

Cross-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.

Majority of “Stay-at-Home Dads” Aren’t There to Care for Family

At Pew Social Trends, Gretchen Livingston has a new report on fathers staying at home with their kids. They define stay at home fathers as any father ages 18-69 living with his children who did not work for pay in the previous year (regardless of marital status or the employment status of others in the household). That produces this trend:

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At least for the 1990s and early-2000s recessions, the figure very nicely shows spikes upward of stay-at-home dads during recessions, followed by declines that don’t wipe out the whole gain — we don’t know what will happen in the current decline as men’s employment rates rise.

In Pew’s numbers 21% of the stay at home fathers report their reason for being out of the labor force was caring for their home and family; 23% couldn’t find work, 35% couldn’t work because of health problems, and 22% were in school or retired.

It is reasonable to call a father staying at home with his kids a stay at home father, regardless of his reason. We never needed stay at home mothers to pass some motive-based criteria before we defined them as staying at home. And yet there is a tendency (not evidenced in this report) to read into this a bigger change in gender dynamics than there is. The Census Bureau has for years calculated a much more rigid definition that only applied to married parents of kids under 15: those out of the labor force all year, whose spouse was in the labor force all year, and who specified their reason as taking care of home and family. You can think of this as the hardcore stay at home parents, the ones who do it long term, and have a carework motivation for doing it. When you do it that way, stay at home mothers outnumber stay at home fathers 100-to-1.

I updated a figure from an earlier post for Bryce Covert at Think Progress, who wrote a nice piece with a lot of links on the gender division of labor. This shows the percentage of all married-couple families with kids under 15 who have one of the hardcore stay at home parents:

SHP-1. PARENTS AND CHILDREN IN STAY-AT-HOME PARENT FAMILY GROUPS

That is a real upward trend for stay at home fathers, but that pattern remains very rare.

See the Census spreadsheet for yourself here.  Cross-posted at 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.

$291,978 Spent in Philadelphia to Make Poverty Pretty

We have the money and the know how to tackle most of our social problems.  Certainly unemployment, houselessness, and poverty.  So, why don’t we?

In large part it is because our socially created wealth remains outside social control.  Critical economic decisions are driven by private interests not the public good.  One result is hipster economics.

If you are not familiar with the concept, I recommend Sarah Kendzior’s The Perils of Hipster Economics. Here is the first part:

On May 16, an artist, a railway service and a government agency spent $291,978 to block poverty from the public eye.

Called psychylustro, German artist Katharina Grosse’s project is a large-scale work designed to distract Amtrak train riders from the dilapidated buildings and fallen factories of north Philadelphia. The city has a 28 percent poverty rate – the highest of any major U.S. city – with much of it concentrated in the north. In some north Philadelphia elementary schools, nearly every child is living below the poverty line.

Grosse partnered with the National Endowment of the Arts and Amtrak to mask North Philadelphia’s hardship with a delightful view. The Wall Street Journal calls this “Fighting Urban Blight With Art.” Liz Thomas, the curator of the project, calls it “an experience that asks people to think about this space that they hurtle through every day.”

The project is not actually fighting blight, of course – only the ability of Amtrak customers to see it.

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“I need the brilliance of colour to get close to people, to stir up a sense of life experience and heighten their sense of presence,” Grosse proclaims.

“People,” in Grosse and Thomas’s formulation, are not those who actually live in north Philadelphia and bear the brunt of its burdens. “People” are those who can afford to view poverty through the lens of aesthetics as they pass it by.

Urban decay becomes a set piece to be remodeled or romanticised.

The rest of the article is here.

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