Tag Archives: economics

$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.

Saturday Stat: Salaries on University Campuses

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- PhD Comics.

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.

The U.S. is Replacing Good Jobs with Bad Ones

In a fancy bit of marketing, U.S. capitalists have been reborn as “job creators.”  As such, they were rewarded with lower taxes, weaker labor laws, and relaxed government regulation. However, despite record profits, their job creation performance leaves a lot to be desired.

According to the official data the last U.S. recession began in December 2007 and ended in June 2009. Thus, we have officially been in economic expansion for almost five years.  The gains from the expansion should be strong and broad-based enough to ensure real progress for the majority over the course of the business cycle.  If not, it’s a sign that we need a change in our basic economic structure.  In other words, it would be foolish to work to sustain an economic structure that was incapable of satisfying majority needs even when it was performing well according to its own logic.

A recent study by the National Employment Law Project titled The Low-Wage Recovery provides one indicator that it is time for us to pursue a change.  It shows that the current economic expansion is transitioning the U.S. into a low wage economy.

The figure below shows the net private sector job loss by industries classified according to their medium wage from January 2008 to February 2010 and the net private sector job gain using the same classification from March 2010 to March 2014. As we can see, the net job loss in the first period was greatest in high wage industries and the net job creation in the second period was greatest in low wage industries.

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As the study explains:

 The food services and drinking places, administrative and support services (includes temporary help), and retail trade industries are leading private sector job growth during the recent recovery phase. These industries, which pay relatively low wages, accounted for 39 percent of the private sector employment increase over the past four years.

If the hard times of recession disproportionately eliminate high wage jobs and the “so called” good times of recovery bring primarily low wage jobs, it is time to move beyond our current focus on the business cycle and initiate a critical assessment of the way our economy operates and in whose interest.

Cross-posted at Pacific Standard.

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

On the False Idea that Money is a Resource

I am so pleased to have stumbled across a short excerpt from a talk by Alan Watts, forwarded by a Twitter follower.  Watts makes a truly profound argument about what money really is.  I’ll summarize it here and you can watch the full three-and-a-half minute video below if you like.

Watts notes that we like to talk about “laws of nature,” or “observed regularities” in the world.  In order to observe these regularities, he points out, we have to invent something regular against which to compare nature. Clocks and rulers are these kinds of things.

All this is fine but, all too often, the clocks and the rulers come to seem more real than the nature that is being measured.  For example, he says, we might think that the sun is rising because it’s 6AM when, of course, the sun will rise independently of our measures.  It’s as if our clocks rule the universe instead of vice versa.

He uses these observations to make a comment about wealth and poverty. Money, he reminds us, isn’t real. It’s an invented measure.  A dollar is no different than a minute or an inch.  It is used to measure prosperity, but it doesn’t create prosperity any more than 6AM makes the sun rise or a ruler gives things inches.

When there is a crisis — an economic depression or a natural disaster, for example — we may want to fix it, but end up asking ourselves “Where’s the money going to come from?”  This is exactly the same mistake that we make, Watts argues, when we think that the sun rises because it’s 6AM.  He says:

They think money makes prosperity. It’s the other way around, it’s physical prosperity which has money as a way of measuring it.  But people think money has to come from somewhere… and it doesn’t. Money is something we have to invent, like inches.

So, you remember the Great Depression when there was a slump?  And what did we have a slump of?  Money.  There was no less wealth, no less energy, no less raw materials than there were before. But it’s like you came to work on building a house one day and they said, “Sorry, you can’t build this house today, no inches.”

“What do you mean no inches?”

“Just inches!  We don’t mean that… we’ve got inches of lumber, yes, we’ve got inches of metal, we’ve even got tape measures, but there’s a slump in inches as such.”

And people are that crazy!

This is backward thinking, he says.  It is allowing money to rule things when, in reality, it’s just a measure.

I encourage you to watch:

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.

Stay-at-Home Mothers on the Rise among Low-Income Families

“Stay-at-home mother” evokes black and white images of well-coiffed women in starched aprons. Rather than a vestige of a bygone era, stay-at-home moms are on the rise, according to the findings of a new Pew Research study. In 2012, 29% of women with children under the age of 18 stayed home, a number that has been on the rise since 1999 and is 3% higher than in 2008.

However, while more women are staying home with their children, the face of the stay-at-home mom has changed dramatically since the 1950s “Leave It to Beaver” days. Stay-at-home moms today are less educated and more likely to live in poverty than working moms. Younger mothers and immigrant mothers also make up a good portion of stay-at-home moms.

The story of why mothers are staying home is more complex than you may imagine and has more to do with the poor labor market, the exorbitant price of child care, and the contemporary structure of work. In a recent interview with Wisconsin Public RadioBarbara Risman, a sociologist at the University of Illinois at Chicago, spoke about how this report has been picked up by the mainstream media:

What’s surprising to me is the headlines and how it’s portrayed in the news. Although the numbers are going up, when you look at what mothers say, 6% of the mothers in this study say they are home because they can’t find a job. When you take those 6% of mothers out, the results are rather flat. Part of the real story here then is that it’s hard to find a job that allows you to work and covers your child care, particularly if you have less education and your earning potential isn’t very high.

These days stay-at-home moms, who are more likely to be less educated, are not able to make enough money for working to even be worthwhile. Many times, their pay wouldn’t actually cover the cost of child care. Beyond these important financial considerations, lower wage shift work makes it extremely difficult to coordinate child care in the midst of work schedules that change on a weekly basis.

Erin Hoekstra is pursuing a PhD in Sociology at the University of Minnesota. This post originally appeared on Citings and Sightings and you can read all of Erin’s contributions to The Society Pages here.  Cross-posted at Pacific Standard.

Money as a Social Construction

We all know that, on some basic level, money is purely symbolic.  It only works because everyone collectively agrees to participate in the fantasy that a dollar bill is worth a dollar, whatever that is.  Moreover, most of our money these days is purely electronic, represented by ones and zeros and real only in the most abstract sense possible.

Christopher Ingraham at the Washington Post offered another way of thinking about money as a social construction: how much it costs to make it.  None of our coins are actually worth what they cost, and pennies and nickels are worth quite a bit less.

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The excess cost of producing pennies and nickels means a budget deficit for the Treasury. In 2013, producing the coins cost the government $105 million dollars above and beyond the coins’ value.

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Interestingly, moves to eliminate pennies have been successfully opposed by the zinc industry for years, illustrating another sociological phenomenon: the power of corporations to shape government decisions.

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.

Saturday Stat: The U.S. is a “Low Tax Country”

This chart comes from Chuck Marr at the Center on Budget and Policy Priorities.  As Marr explains:

The United States is a relatively low-tax country, as the chart shows.  When measured as a share of the economy, total government receipts (a broad measure of revenue) are lower in the United States than in any other member of the Organization for Economic Co-operation and Development (OECD), even after accounting for the modest revenue increases in the 2012 “fiscal cliff” deal and the taxes that fund health reform.

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

Where Did Your 2013 Tax Dollars Go?

Each  year the National Priorities Project releases a visual illustrating how our tax dollars are spent.  This is the one for 2013, sans medicare and social security taxes.

1At the end of Sociology 101, I like to ask my students: “What is the state for?”  This often takes them aback, as most of them have never considered the question before.  Is it for defense?  It is to maximize happiness or reduce misery?  Is it for maximizing GDP?  Protecting private property?  Do we want to use it to influence other countries?  How?

There are many questions to ask and they are not purely theoretical.  I like how the spending of our tax dollars helps make the conversation more concrete.

Cross-posted at Business Insider.

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.