A longer version is cross-posted at Montclair SocioBlog.

Long before the Freakonomics guys hit the best seller list by casting their economic net in sociological waters, there was Gary Becker.  If you want to explain why people (some people) commit crimes or get married and have babies, Becker argued, just assume that people are economically rational.  Follow the money and look at the bottom line.  You don’t need concepts like culture or socialization, which in any case are vague and hard to measure.*

Becker wrote no best-sellers, but he did win a Nobel.  His acceptance speech: “The Economic Way of Looking at Behavior.”

In a Wall Street Journal op-ed Friday about the recession, Becker started off Labor Day weekend weighing in on unemployment and the stalled recovery.  His explanation: in a word, uncertainty.

These laws [financial regulation, consumer protection] and the continuing calls for additional regulations and taxes have broadened the uncertainty about the economic environment facing businesses and consumers. This uncertainty decreased the incentives to invest in long-lived producer and consumer goods. Particularly discouraged was the creation of small businesses, which are a major source of new hires.

There’s something curious about this.  Becker pushes uncertainty to the front of the line-up and says not a word about the usual economic suspects – sales, costs, customers, demand.  It’s all about the psychology of those in small business, their perceptions and feelings of uncertainty.  Not only are these vague and hard to measure, but as far as I know, we do not have any real data about them.  Becker provides no references.  The closest thing I could find was a small business survey from last year, and it showed that people in small business were far more worried about too little demand than about too much regulation.

Compared with Regulation, twice as many cited Sales as the number one problem.  (My posts on uncertainty from earlier this summer are here and here.)

In addition, the sectors of the economy that should be most uncertain about regulation – finance, mining and fuel extraction, and medical care – are those where unemployment is lowest.

More, as David Weidner writes in the Wall Street Journal, taxes, interest rates, and regulation at an all-time low.

[The uncertainty-about-taxes-and-regulation argument] would make more sense if, say, taxes were already high and might be going higher or regulatory burdens were heavy and might be getting heavier. But when taxes are at a 60-year low and the regulations are pretty much the same as they were in the 1990s boom, the argument makes no sense at all (Mark Thoma quoting an e-mail from Gary Burtless).

If it’s really uncertainty caused by these things that causes a reluctance to hire, the time to invest and hire should be now.

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* This is an oversimplified version, but it will do for present purposes.

This seems like a good time to reiterate a simple truth: It can be art/fashion/satire/cutting edge etc. and… and and and it can be offensive, trivializing, and triggering.

Eight readers sent in links to an ad for a hair salon called Fluid. The salon, which has a history of using “shocking” ads (like this one after the Gulf oil spill), is attracting criticism for an ad featuring a woman being offered jewelry by a man; she appears to have a black eye.  Six more sent in a link to a Glee star, Heather Morris, in a photoshoot by Tyler Shields, also with a black eye.

Responding to the criticism, Fluid said it was being “cutting-edge,” “satirical,” “high fashion,” and “editorial,” and “artistic.”  It doesn’t matter what you call it, what tradition it references, or whether you’re trying to get a reaction; your product is still part of a wider cultural context.  Accordingly, you may get called out for being insensitive to other people’s pain. In which case, probably best not to call the critics hypocrites and suggest that there are bigger problems in the world than the trivialization of domestic violence.  Or go right ahead, I guess.

Thanks to Eric S., Kristina V., YetAnotherGirl, Dave S., Caitlin R., @CreativeTweets, Meghan H., Dave S., Judith B., Olivia G., Alexis W., Theresa W., and an anonymous reader for the tips!

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.

Cross-posted at Reports From the Economic Front.

The media generally talk about the economy in national terms — as if economic trends affect us all equally and we all share a common interest in supporting or opposing the same economic policies.  This comforting view tends to promote political passivity — since we are all in the same “boat,” it makes sense to leave policy making to the experts.

A recently published study on income distribution by economists Anthony Atkinson, Thomas Piketty and Emmanuel Saez stands as a welcome corrective.  Uwe E. Reinhardt discusses some of the main implications of their work in his New York Times blog.

Reinhardt’s Figure 1 shows average annual income growth for households in the United States and the different experiences of the top 1% and the bottom 99%.  From 1976 to 2007, average household income grew at an average annual rate of 1.2%.  Over the same period, the top 1% of households experienced an average annual income gain of 4.4% while the bottom 99% of households gained only 0.6% a year.  Household income gains were higher in both subperiods (1993-2000 and 2002-2007), in large part because these subperiods were recession free.

Figure 2 shows the share of total income growth in each time period that was captured by the top 1% of households.  Over the years 1976 to 2007, these households captured 58% of all income generated.  Their share was an astounding 65% in the period 2002 to 2007.

This skewed income distribution means that average income figures present a highly misleading picture of the American experience.  As Reinhardt explains:

So if an American macroeconomist — a specialist who tends to think of nations as people — or high-level government officials or politicians mimicking a macroeconomist boasted on a television talk show that “average family income grew by 3 percent during 2002-7, more than in most European economies,” about 99 percent of American viewers, reflecting on their own experience, would probably scratch their heads and wonder, “What is this guy talking about?”

Figure 3 highlights the growth in real GDP per capita and median household income from 1975 to 2007.  The data show a growing divergence between what working people produced and what the average household received from that production.  Real GDP per capita rose by an annual compound rate of 1.9% while real median household income increased by less than 0.5%.

As Reinhardt points out: “Other than national pride in league tables, that 1.9 percent average economic growth does not mean much for the experience of the median household in the United States.”

This brings us back to the issue of whether it makes sense to talk in “national” terms, especially given the dominance of the top 1% of households.  According to Anthony Atkinson, Thomas Piketty and Emmanuel Saez:

Average real income per family in the United States grew by 32.2 percent from 1975 to 2006, while they grew only by 27.1 percent in France during the same period, showing that the macroeconomic performance in the United States was better than the French one during this period. Excluding the top percentile, average United States real incomes grew by only 17.9 percent during the period while average French real incomes — excluding the top percentile — still grew at much the same rate (26.4 percent) as for the whole French population. Therefore, the better macroeconomic performance of the United States and France is reversed when excluding the top 1 percent.

None of this is to suggest that U.S. society is best understood in terms of a simple division between the top 1% and the bottom 99%; the latter group is far from homogeneous.  Still, this division alone is big enough to establish that talking in simple national terms hides more than it illuminates about the American experience.  Said differently, just because the top 1% of U.S. households have reason to celebrate the U.S. economic model doesn’t mean that the rest of us should join in the celebration.

In honor of Labor Day here in the U.S., my coworker Pete posted this video someone put together of images from various labor strikes, protests, etc., set to the Dropkick Murphy’s version of “Which Side Are You On?”, originally written by Florence Reece in 1931 in response to intimidation of her family during struggles between workers and coal mine owners in Harlan County, Kentucky:

The Dropkick Murphys’ “Worker’s Song” seems equally apropos:

Let’s analyze this one to death, shall we?  Comments are open…

It’s after the jump because you can see a woman naked from the waist up.

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At his great blog, Work that Matters, Tom Megginson highlighted a pretty stunning commercial.  In it, a woman in a dilapidated mansion looks disgustedly at a mildly repulsive carpet covering a giant room. She resigns herself to pulling it up, revealing a smooth hardwood floor beneath. And she hauls the mass of fibers to the street, only to return to a room newly covered again.

It’s a metaphor for the Sisyphean task of hair removal, of course. So what’s the solution? Well, it’s not rejecting the obviously unrealistic task of being female and hair-free. No. The solution is laser hair removal.

*I stole this fantastic title from Tom.

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.

College is a good investment. Yes, still.  But, as this graph sent in by Deeb shows, entry level wages for college graduate, controlled for inflation, have shown quite a bit of variance over the last 30 years.  Starting salaries are consequential.  For many jobs raises are calculated as a proportion of your existing salary, such that starting salaries have cumulative effects over the lifetime.

Today’s college graduates, according to the Economic Policy Institute, will have an average starting salary of $1.00 less than ten years ago:

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.

This video, made as part of a marketing campaign for a new shopping center in East London, is a fun overview of a century of some trends in clothing, music, and dance styles, all in 100 seconds. Enjoy!

Via The Hairpin.

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