economics

Originally posted at the Huffington Post.

In the 21st century, it is perhaps time to rethink the American Dream of owning a house. The feasibility of this dream was in the back of my mind the entire time I read Matthew Desmond’s Evicted, the highly praised ethnography of landlords and renters in Milwaukee. Dr. Desmond flips the relationship between poverty and housing instability on its head: eviction is a cause, not a symptom, of poverty.

2 To make a long, well-put, and worth-reading argument short: eviction isn’t rare as many policymakers and sociologists might assume; it is actually a horrifyingly common phenomenon. Urban sociologists have missed the magnitude of the eviction phenomenon because they have traditionally used neighborhoods as the unit of analysis, studying issues such as segregation and gentrification. Because eviction is rarely studied, we don’t have good data on eviction. Establishing a dataset of eviction is not a simple data collecting task, given that there are many forms of informal eviction. The consequences of eviction are devastating and have a profound, negative, and life-long impact on subsequent trajectories: worse housing, more eviction, and homelessness, all disproportionately affecting women of color with children (“a female equivalent of mass incarceration,” Desmond argued at a talk at the University of Pennsylvania last week).

The solution is a universal housing voucher program that is funded using money that currently goes to the mortgage interest tax deduction, a $170 billion program for homeowners that benefits mostly the upper-middle class.

Let’s set the economics of a universal voucher program aside — Desmond and many economists on both sides of the political spectrum (including Harvard economist Edward Glaeser) have already addressed the effects on the market, the argument that such a program will be a disincentive to work, and the fear of the lag time that a program will create in the housing market increasing search times. At the heart of public policy are norms and values, and the existence of the mortgage interest tax deduction — the largest housing assistance program in the country — is not a reflection of an inherent American preference for the rich over the poor. Rather, it is a reflection of an inherent American preference for the homeowner over the renter.

To implement the universal voucher program that Desmond argues for, we need to rethink the way we conceive of homeownership in American culture. As I read Evicted, the work of Robert K. Merton came to mind. In 1938, Merton, one of the contenders for the title “founder of modern sociology,” published a paper titled “Social Structure and Anomie.” In the paper, Merton argues that every society has cultural goals, “a frame of aspirational references,” and institutionalized means, “permissible and required procedures for attaining these ends.”

In American society, the institutionalized means are study hard/work hard (and maybe go to church every so often), and the cultural goals are accumulate wealth and own a house. Obviously, the vast majority of Americans don’t achieve these goals and it is extremely hard to argue that the institutionalized means will actually lead them there. But that’s okay; it just makes for a nation of ritualists. Ritualism is devotion to the means without achieving the goals. These ritualists are everywhere in American society, or at least in the way we perceive our society. We romanticize a fictional poor person that takes pride that s/he never took welfare, for example, no matter how tough times were. Welfare is not one of the institutionalized means, and the ritualist prefers to stay farther away from the goal than to cross the line to non-institutionalized means.

According to City Lab, 41% of all US households are residing in a rental unit. Are these households inhabited by ritualists, trying to achieve the goal but without the means? Maybe, but Merton offers another option – they could be rebels. The rebel may or may not conform to the cultural goals and may or may not use the means. The condition for rebellion, according to Merton, is that “emancipation from the reigning standards, due to frustration or to marginalist perspectives, leads to the attempt to introduce ‘a new social order.’”

If one of the American cultural goals is homeownership, the mortgage interest tax deduction is a tool to maintain this social order. The goal’s support structure recognizes in a sense that, with only the purist version of the institutionalized means (hard work with no government assistance), the goal is out of reach. If that support system is taken away, if we shift funding from the mortgage interest tax credit to a universal housing voucher program, we must recognize that we are supporting a cultural rebellion.

It is time to call for a change in the norms and values that are at the heart of our public policy. That is not a simple task. When I think of the “American,” I think about Ron Swanson from the TV show Parks and Recreation. In one of the show’s episodes, Swanson explains America to a little girl, “Let’s get started. Life, liberty, and property. That’s John Locke. This is your lunch.” Matthew Desmond, by calling for a universal voucher program, challenges this status quo and attempts to put habitability, stability, and opportunity at the heart of our value system and not as byproducts of homeownership and hard work. He also challenges the institutionalized means by calling for an increase in the number of people achieving this new goal — a stable home — specifically through quality rental housing, with government assistance, rather than through hard work alone.

The United States is nation of renters that views itself as a nation of homeowners. The millions of rental households deserve to be a part of the group that achieves the American cultural goal. They deserve government support, they deserve stability, and they don’t deserve to have to break away from the American institutionalized means. We must not shy away from the size of this task. The country might not be ready to think of itself as the nation of renters that it is. The United States is undergoing a housing and eviction crisis, and as Matthew Desmond said in his talk at Penn this week, “This is not us, there is nothing American about this.” It is time for a new social order, for the rise of the renter class as more than ritualists and rebels.

Originally from Tel Aviv, Abraham Gutman is currently at the Center for Public Health Law Research at Temple University. He is an aspiring sociologist working on econometrics, race, policing, and housing. He blogs at the Huffington Post and you can follow him on Twitter.

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:

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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.

Today is Labor Day in the U.S. Though many think of it mostly as a last long weekend for recreation and shopping before the symbolic end of summer, the federal holiday, officially established in 1894, celebrates the contributions of labor.

Here are some SocImages posts on a range of issues related to workers, from the history of the labor movement, to current workplace conditions, to the impacts of the changing economy on workers’ pay:

The Social Construction of Work

Work in Popular Culture

Unemployment, Underemployment, and the “Class War”

Unions and Unionization

Economic Change, Globalization, and the Great Recession

Work and race, ethnicity, religion, and immigration

Gender and Work

The U.S. in International Perspective

Academia

Just for Fun

Bonus!

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.

Originally posted at Reports from the Economic Front.

For years now the wealthy and their media have hammered on the need for lower taxes on their income, arguing that this would encourage investment, job creation, and growth.  The tax burden on the wealthy has indeed been lowered in one way or the other, but only the wealthy have benefited. In particular, our public sector and the activities it supports — public infrastructure, education, health care and human services, etc. — have suffered.

Apparently, people are starting to draw the right lesson from this experience.  As the Washington Post reports:

The results from the Public Religion Research Institute and the Brookings Institution [survey] show that 54 percent of Republicans support increasing taxes on those with incomes over $250,000 a year, an increase of 18 percentage points since the last presidential election in 2012. Among Americans as a whole, 69 percent support an increase.

tax increase

While the change in opinion was greatest for Republicans, as the figure above shows, the survey also found increased support for greater taxes on the rich among both Democrats and Independents.  The fact that this support began spiking early in the year suggests that the change is tied to the election process, although it is unclear whether the campaigns are driving the growing support for higher taxes on the wealthy or people are just taking advantage of the process to express their desire for change.

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

Flashback Friday. 

Outlet malls are often in the middle of nowhere, in places that are hard to get to, or in places that you wouldn’t think of as retail magnets. For instance, you’ve got the outlet mall in Barstow, California:

Barstow is roughly mid-way between L.A. and Las Vegas, so locating it there might be a smart move to try to get some of the weekend traffic between the two cities. And there are some logical reasons you might want to locate outlets in places like Barstow: by putting them in outlying cities, you make sure they don’t overlap too much with the customer base for the main stores, potentially stealing customers who would otherwise pay full-price for new products rather than going to the outlet. You want the outlet to be complement the regular store, not compete with it.

And aside from that, surely real estate is cheaper in Barstow than in either L.A. or Las Vegas, which would keep costs down for building or renting retail space.

That’s part of the story. But there’s some interesting psychology going on, too, as Ellen Ruppel Shell explains in Cheap: The High Cost of Discount Culture. It turns out that being difficult to get to is, in fact, part of the appeal of outlet malls. The fact that they often require a drive of an hour or more signals to consumers that they must have really good deals. That’s the payoff for inconvenience — it’s harder and more time-consuming than going to your local mall, but in return you’re getting a great bargain. Right?

Well… not really. I remember driving two hours once to go to this outlet mall I had heard so much about — friends would go and come back with bags full of clothes, telling me about all the money they’d saved. I got there and was shocked by the prices; they didn’t strike me as particularly cheap at all. I ended up going home without buying anything, trying to figure out how I had missed the great sales racks.

According to Shell, though, that’s pretty typical of outlet malls: they often don’t really provide great bargains. Instead, they provide the illusion of bargains, and a motivation for thinking you’re finding them.

It turns out that the more trouble people go through to get to an outlet, the more they overestimate the amount of savings compared to prices at regular stores. The very fact that it was hard to get to convinces people that it must provide something fantastic; if you aren’t saving a lot of money by going there, why on earth would it be so far out of the way? And the more remote it is, the cheaper the products must be!

Our efforts to understand the placement of outlet malls actually leads us to think we’re getting better deals than we are, because we must be. Otherwise it doesn’t make sense for them to be where they are. And so the location of outlet malls becomes proof that they’re cheap. Why else would they be there?

We have another powerful motivation to believe this. If you’ve driven an hour or more one-way to get great deals at the outlet mall, you are primed to believe you’re getting bargains because otherwise you just wasted a lot of time, effort, and gas for nothing. Once you get there, you’re psychologically motivated to believe your effort was worth it, and you do that by buying stuff and thinking the price is a steal.

As a result of these two factors, research shows that people perceive merchandise found at out-of-the-way outlet malls as being more of a bargain than they do if they see similarly-priced items closer to home. We overestimate what the original value of the item must have been and focus on the difference between that hypothetical price and the outlet price, rather than on the objective price itself. And consumers tend to discount the cost of getting to the outlet, not including the cost of gas and their time into the price of the items they buy.

So the placement of outlet malls isn’t just a simple reaction to real estate prices or an effort to not compete with the regular-priced store. The placement itself is an important element of marketing, signaling to consumers that wonderful bargains await those who are willing to accept a little inconvenience. When you combine this with the meaningless discount, you have a powerful marketing tool, a way to convince consumers they are saving more money, or getting higher-quality products, than they actually are.

Originally posted in 2010.

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

It’s all harmless political shenanigans until a racist mob murders Vincent Chin.

It’s amazing how the new figureheads of both major parties are now pretending to oppose globalization, outsourcing, and the corporate “free trade” agenda that they both have spent their professional lives furthering. It wasn’t long ago that I taught in my stratification class that this agenda was the one thing we could be sure both parties and the big money behind them wouldn’t give up. Never say never, but I’m still pretty sure that’s still true.

There are humans that are hurt by this agenda, but most of them aren’t Americans. If politicians want to talk about slave labor, exploitation, and environmental degradation in the new manufacturing centers of the world, then I would be happy to listen to them talk about the harmful effects of those practices “here at home” too. But if they just want to bash China, then that’s racist, and no thank you.

Case in point, Pennsylvania Senator Bob Casey at the Democratic National Convention the other day. Here’s his speech, followed by some of the text and my comments:

Casey quoted his father, the former governor:

The sweat and blood of working men and women who built Pennsylvania forged the industrial revolution in our country, and outproduced the world.

How touching, attributing the industrial revolution the efforts of the working class and not the capitalists. It reminds me of when another Pennsylvania governor, Democrat Robert Pattison, reached across the aisle, helping out Republican industrialists by lending them the National Guard to attack striking steelworkers.

I assume today’s Democratic politician will now go on to recognize the working class of today’s manufacturing centers, who, through their sweat and blood, are outproducing the world and building the middle class in their countries. Oh right, Senator Casey is an American.

What about Donald Trump? Donald trump says he stands for workers, and that he’ll put American first, but that’s not how he’s conducted himself in business. Where are his, quote, tremendous products made? Dress shirts: Bangladesh. Furniture: Turkey. Picture frames: India. Wine glasses: Slovenia. Neckties: China. China! Why would Donald Trump make products in every corner of the world, but not in Altoona, Erie, or here in Philadelphia? Well, this is what he said, quote, outsourcing is not always a terrible thing. Wages in America quote, are too high. And then he complained about companies moving jobs overseas because, quote, we don’t make things anymore. Really? … [examples of stuff made in America]. Donald Trump hasn’t made a thing in his life, except a buck on the backs of working people. If he is a champion of working people, I’m the starting center for the 76ers! The man who wants to make America great, doesn’t make anything in America! If you believe that outsourcing has been good for working people, and has raised incomes for the middle class, then you should vote for Donald Trump. … We need to making good paying jobs for everyone here at home, so that everyone who works hard can get ahead and stay there.

The great conflict of our time is between “China” and “working people”? Maybe we should all link arms and together put down striking Chinese workers to keep the price down on our iPhones and Wal-Mart junk.

The Democratic National Convention was very on-message. In Hillary Clinton’s acceptance speech the next day, she said:

If you believe that we should say “no” to unfair trade deals, that we should stand up to China, that we should support our steelworkers and autoworkers and homegrown manufacturers — join us.

She gave no definition of what it means to “Stand up to China,” though her website says she will insist on trade deals that raise wages and create good-paying jobs (presumably in the US). That’s not important — the important thing communicated to her audience is she’s against China and for American workers. Then she went through the same list of Trump production locations that Casey did, before concluding, “Donald Trump says he wants to make America great again – well, he could start by actually making things in America again.” The current U.S. trade deficit in goods (as opposed to services) is about $62 billion — per month. Virtually all Americans are dependent on imported goods (including, apparently, Clinton, whose Nina McLemore suits are made from European and Asian fabrics). No major politician is seriously against this. Trump hiring U.S. workers to make his ties would make about as much difference as Clinton buying clothes with U.S. fabrics, which is basically none. It’s just symbolism, and the symbolism here is “China is bad.” Unless you join this kind of talk with explicit concern for the suffering and exploitation of Chinese workers, this just feeds American racism.

Decades later, Vincent Chin’s murder still resonates with me. There is debate about whether racism was the real motivation behind his murder, and it wasn’t as simple as a random lynch mob. Despite the legend, it is not the case that the auto workers just killed him because they falsely believed he was Japanese. But a witness at the bar said they blamed him for them being out of work before they fought. She said:

I turned around and I heard Mr. Ebens say something about the “little motherfuckers.” And Vincent said, “I’m not a little motherfucker,” and he said, “Well, I don’t know if you’re a big one or a little one.” Then he said something about, “Well, because of y’all motherfuckers we’re out of work.”

After losing the first round, Ronald Ebins and his stepson, Michael Nitz, hunted Chin down and killed him with a baseball bat, a crime for which they ultimately served no jail time.

My 8-year-old Chinese immigrant daughter, who learns all about how racism and bullying are bad and MLK is great in her neoliberal public American elementary school, is routinely offended and hurt by the China-bashing she hears from Democrats as well as Trump (she supported Bernie but is willing to back Hillary to stop Trump).

Hillary says we should protect our children from having to listen to Trump’s nastiness — she even has ad on that, which I’ve personally witness liberals tearing up over:

So, what about the people making speeches at the Democratic convention, spitting out the word China! like it’s a disease? “What example will we set for them?”

If the new normal of politics is both parties bashing foreigners  while they pretend to oppose globalization — and then pursuing the same policies anyway (which, face it, you know they will), then what have we gained? It seems to me there is a small chance Clinton will negotiate better trade deals to the benefit of workers (U.S. or Chinese), alongside a much greater chance that her rhetoric will stoke nativism and racism. Trump’s megaphone may have drawn the White supremacists out from under their rocks, but the new anti-TPP Hillary is bellowing the same obnoxious chauvinism.

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

Nowadays, women are much more likely to earn more income than their spouse than they used to. But this is a shift, not a revolution, because very very few women are the kind of breadwinner that some men used to be.

Using data on 18-64 year-old married wives and their spouses (95.5% of which were men) from Decennial Censuses and the 2014 American Community Survey, here are some facts from 2014:

  • In 2014, 25% of wives earn more than their spouses (up from 15% in 1990 and 7% in 1970).
  • The average wife-who-earns-more takes home 68% of the couple’s earnings. The average for higher-earning men is 82%.
  • In 40% of the wife-earns-more couples, she earns less than 60% of the total, compared with 18% for higher earning men.
  • It is almost 9-times more common for a husband to earn all the money than a wife (19.6% versus 2.3%).

Here is the distribution of income in married couples (wife ages 18-64; the bars add to 100%):

coupincdist

Male and female breadwinners are not equivalent; making $.01 more than your spouse doesn’t make you a 1950s breadwinner, or the “primary earner” of the family.

Philip N. Cohen is a professor of sociology at the University of Maryland, College Park, and writes the blog Family Inequality, where this post originally appeared. You can follow him on Twitter or Facebook.

Jane Mayer’s recent book Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right is a powerful account of how the Right influences public opinion via a network of think-tanks, lobbyists and other forms of direct and indirect funding in the guise of objectivity, but which in fact support right-wing values.

As someone with an interest in masculinity, one name that jumped out of Mayer’s book at me was Harvey Mansfield, a Harvard professor of government and author of Manliness published in 2006 by Yale University Press. Mansfield’s book is a lament to the loss of manliness in contemporary society (a state of being he traces back to the ancient Greeks and follows through to Rick in Casablanca), which is being eradicated by a “gender neutral” ideology. In short, Manliness is a manifesto for normative masculinity.

It always seemed curious to me why Manliness was ever taken seriously by such a prestigious publisher as Yale University Press when its argument was so outdated relative to most academic discourse on masculinity, combined with the fact that Mansfield had little research track record in the subject. Mayer’s book offers two facts that can be speculatively connected to address this curiosity.

Mansfield is cited in Dark Money as being one of numerous professors who received funding from the Olin Foundation, a trust established to promote freemarket ideology and other conservative ideas on America’s campuses. Mayer does not state that Manliness was funded by the Olin Foundation, but later she quotes Steve Wasserman of Yale University Press, who noted how the Right saw the value of funding books, whereas the philanthropic Left did not assign the same value.

In general, funding, either in full or in part, can make a substantial difference to the economic viability of a book for a publisher. In normal circumstances this is called a “subvention,” and while many believe this to be a sign of vanity publishing, it is a reality of academic publishing. Academic books in some circumstances (and in particular, some subjects), can be fully funded, which can only have a positive influence on whether or not the book sees the light of day.

But what of it? What does it really matter if a book peddling antiquated ideas about masculinity is published? First, anything published by Yale University Press is going to be taken seriously. Further still, the support network around Mansfield and his ideas made sure that his book received more media attention than most other books on the subject that were of greater merit. Second, if we look at Google search trends we can see some interesting changes, keeping in mind that correlation does not (necessarily) imply causation. Consider the following chart that looks at the popularity of the term “masculinity” relative to “manliness”:

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In 2005 there was a high usage of the term “masculinity” and very little usage of the term “manliness.” In 2006 there was a massive spike in the term “manliness” which immediately matches that of “masculinity.” 2006 was the year of publication of Mansfield’s Manliness. Certainly, that spike of activity swiftly drops off, but it slowly builds again until around 2011 when manliness again surpasses masculinity and this remained the case until very recently.

It is reasonable to assume that the 2006 spike in search activity using “manliness” was down to Mansfield’s book. It is less reasonable to say that the slow increase in the use of the term was discussion of Mansfield’s book, but it may well have planted a seed that might not otherwise have grown.

Do not make the mistake of thinking these are different but value-free words for describing the same thing. In general, people who use the term “manliness” are referring to a fixed and essentialist idea of sex and gender (usually glossing over the distinction between the two), whereas the use of the term “masculinity” accommodates a critique as well as celebration of normative masculinity.

And do not make the mistake of thinking this is just about sex and gender. In his book The Political Mind, George Lakoff shows how manliness (which he describes as the “strict father model”) is one of the most basic metaphors we use for constructing national identity. Lakoff actually cites Mansfield’s Manliness as being written to cement the conservative strict father model in order to consolidate conservative political power.

Locating the strict father model as one of the core metaphors of the political mind adds further understanding to how masculinity has played out in the 2016 presidential campaign. Numerous articles on this subject are chronicled at the excellent Presidential Gender Watch project which mostly argue how Trump has appealed to a specific model of masculinity in his speeches. Yes, these speeches reveal an unsavory streak of misogyny in Trump, and yes, they reveal him to be capitalizing upon a perceived crisis of masculinity, particularly among the working class. However, an explicit appeal to masculinity also mobilizes that strict father model, which enables Trump to draw on the traditional conservative base even as he critiques it.

It is also worth considering how these deep metaphors play out in the Democratic imagination. Opposite the strict father model of the conservatives, Lakoff identifies the “nurturing parent model” of the progressives. According to Lakoff, Democrats should appeal to the nurturing parent metaphor at all times. However, one could argue that despite Clinton’s playing the “woman card” her style is more that of the strict father than the nurturing parent, again appealing to that traditional conservative base. So who is the nurturing parent? As Obama quipped in his final correspondents’ dinner speech about Malia wanting to go to Burning Man, “Bernie might have let her go. Not us.”

Joseph Gelfer, PhD is a researcher of men and masculinities. He is the editor of Masculinities in a Global Era and 2012: Decoding the Countercultural Apocalypse.