economics

Last month the cast of Jersey Shore rang the opening bell at the New York Stock Exchange (NYSE). The public responded negatively.  Says one snarky observer on the NYSE’s Facebook page:

The kids of the Jersey Shore rang the opening bell at the New York Stock Exchange this week.  In a related story, civilization is down 500 points.

The trouble, it seems, comes from the weirdness of bringing together trivial-and-fake-“reality”-stars with the very-important-and-really-real-U.S.-financial-market.

Economic sociologist Brooke Harrington, however, thinks the two are less incongruent than they seem.  She writes:

I’d like to suggest that what seems so wrong with that picture of Snooki and company ringing the opening bell actually makes a lot of sense sociologically. If this meeting of worlds—entertainment and the stock market—seems strange, it may be because we’re so used to regarding the markets as “real,” rather than as a performance (or even as entertainment in their own right).

Markets, she explains, aren’t “more ‘real’ than ‘reality TV.'”  Instead, both the characters on Jersey Shore and markets are playing themselves.   The reality show stars respond to expectations of “Guido” and “Guidette” personalities.  Likewise, the market responds to  economists whose predictions often create the very reality that they anticipate.

Harrington brings in a fancy concept:

Both are engaged in producing what French sociologist and cultural theorist Jean Baudrillard calls “the simulacrum:” a copy without an original, a pretense that replaces and ultimately negates “reality” so successfully that we no longer care about what is real.

She finishes:

Theorized through this lens, the image of the Jersey Shore cast ringing the opening bell at the NYSE persists in memory not because it is represents a collision of worlds, but because it brings together two genres of performance whose entertainment value depends on their purported “reality.”

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.

In the game of Monopoly, as the title implies, the object is to get as much money as possible, ideally bankrupting all the other players until you are the only player left.  The game, then, socializes children into a particular version of economic interaction, one quite compatible with capitalism as we know it.

The idea that Monopoly is a socializing agent is brought into stark relief by The Landlord’s Game (from which, it is believed, Monopoly was derived).

Patented by Elizabeth Magie in 1904, the object of this game was to illustrate the economic inequality inherent in the renter/owner relationship.  From Wikipedia:

Magie based the game on the economic principles of Georgism, a system proposed by Henry George, with the object of demonstrating how rents enrich property owners and impoverish tenants. She knew that some people could find it hard to understand why this happened and what might be done about it, and she thought that if Georgist ideas were put into the concrete form of a game, they might be easier to demonstrate.

The game was manufactured beginning in 1910.  In 1935 the patent was ultimately purchased, ironically, by Parker Brothers; they wanted to buy the patents of all competing economy-based board games so as to have a monopoly on the genre.

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.

U.S. unemployment numbers only begin to describe how U.S. workers have suffered in this recession.  The Pew Research Center has some additional data on this experience.

Twenty-six percent of full-time workers who became re-employed currently only work part-time.  Thirteen percent moved from part-time to full time work.  So, among the employed, there are 13 percent fewer full-time workers.

Americans who lost their jobs and became re-employed during this recession say that they’re making about the same, that the benefits are about equal, and many like their new job better:

Still, the re-employed are more likely than the still-employed to say that they are overqualified for their current job:

People that moved from full- to part-time work are significantly less likely to be satisfied with their new position:

Forty-seven percent of part-time workers would like a full-time job:

The term “underemployed” refers to this 47 percent of the population.   Men, young people, the less educated, lower income, and non-whites are more likely to be underemployed:

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.

French sociologist Pierre Bourdieu is famous for helping us understand how economic elites reproduce their own wealth across generations.  It takes money to make money, and that is certainly true.  But as Bourdieu noticed, it wasn’t just money.  Upper-class people had entire ways of living that excluded people without money and people who were newly rich.  They knew the right people (and knew them in common), the right things (e.g., how to talk about yachts), and the right way to act (e.g., which fork to use first).  Other people’s ignorance of these things exposes them to the elite as “not our kind of people.” Even when the elite aren’t biased towards their own on purpose, they’re still more likely to hire the guy who can chat about the most lauded vintage that year, and their children are more likely to marry the children of others who summered alongside them, and so on.  All of these little things — mannerisms, interests, languages, sartorial choices — send messages that distinguish the elite from the non-elite, preserving the group as distinctly advantaged.

In other words, Countess Luann is right:

Thanks to RGR for linking to this video in our recent birthday post for Pierre!  More Bourdieu-ian posts: taste, dumb vs. smart books, and the Evangelican habitus.

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.

An article at Colorlines, and the accompanying video interview below, illustrates the way that employment policy virtually ensures that some people will remain excluded from the above-ground economy.  Fourteen months ago, the interviewee, Vincent, lost his job as a maintenance technician, just days before he would be eligible for unemployment, when his boss ran a criminal background check and discovered that Vincent had a 25-year-old record for breaking and entering.

Since then, he’s been unemployed.  When he applies for jobs, he’s frequently told that his application can’t be accepted because of  his criminal background. Accordingly, he is having a terribly difficult time finding a job.  “It’s real hurtful,” he says, “to know that your chances are so broke down to zero.”

Seventy-five percent of people who have left prison are currently unemployed.  When we see criminal recidivism, or the return to crime after release from prison, we should consider the possibility that we are essentially forcing people to turn to the “underground economy” by shutting them out of the “above ground” one.

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.

Martin Hart-Landsberg, at Reports from the Economic Front, offers a provocative hypothesis.  He observes that job loss in the U.S. has been tremendous. One in 20 jobs has disappeared.  Still, Congress drug its feet approving an extension of unemployment benefits.  The extension has been approved, but benefits are hardly generous (on average, $309 a month week).  Further, millions of unemployed people are not collecting unemployment because they’re not eligible under current policy.

Hart-Landsberg asks why there is a lack of “meaningful national efforts” to address the suffering of workers and their families?

His hypothesis:  Economic policy is not responsive to workers’ needs.  Instead, it is heavily driven by what is best for corporations.  And, it turns, out, corporations are doing swimmingly during the recession.  They took a beating at first, but their profits are up.  Downsizing appears to have benefited them.  Consider this chart from the Economic Policy Institute (EPI):

The EPI concurs with Hart-Landsberg.  Looking at this data, Lawrence Mishel concludes:

When employers are able to recover their profits many years before their employees can even hope to attain the income and employment levels they had  prior to recession’s devastation, economic policy is clearly skewed in favor of corporations and not workers.

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.

According to research by economists, sociologists, and psychologists, for challenging cognitive tasks, large rewards means worse performance.  So all of those GIANT bonuses going to workers on Wall Street are not necessary for the health of our economy, they may actually be hurting it.

Or so Dan Pink argues in this 11-minute illustrated lecture from Cognitive Media:

Choice quote: “When the profit motive gets unmoored from the purpose motive, bad things happen.”

* Hyperbole!

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.

Rachel C. sent in a video that shows changes in unemployment rates by U.S. county between January 2007 and May 2010, based on Bureau of Labor Statistics data. Here’s a youtube version, but there’s a larger, less distorted version here:

Note that while the other colors all represent a range of 0.9% (say, from 2.0 to 2.9%), purple is a wider interval, from 7.0 to 9.9%, so there’s going to be more variation in unemployment rates in counties colored purple than those that are in the yellow or red range (but presumably less than gray, since that’s anything over 10.0%). Not sure why that particular interval division was used.

Depressing graphic, no?