“just a means to that end”

Dirty Jobs and Macro Questions
by Patrick Watson, Mauldin Economics

“Serving others is always honorable work. Every major religion teaches this. If the work itself is honorable, why don’t we honor those who do it?”

That sounds nice. The only problem is it’s total bullshit. I doubt he wants an honest answer to his question.

Our society does not value serving others and never has. If you are working some crap job serving others, our society makes it very clear that you are a loser in the game of capitalism and Social Darwinism. This is supposedly a meritocracy and so those on the bottom of society are assumed to be those without merit. That is the entire justification for our society, the story we have to believe in to maintain the social order.

“Answer: Because we would rather spend our money in other ways. When we consumers take our demand signals elsewhere, the market efficiently reduces restaurant wages to match what we’ll pay. It’s the invisible hand at work.”

There is no invisible hand, as if divine intervention were determining the Elect. No more than there is a Santa Claus. If there is a hand manipulating the system, it is most definitely visible and all too human. Get up in the middle of the night on Christmas Eve and I guarantee you’ll see that it isn’t Santa who is stuffing money into the pockets of the plutocrats.

We don’t have a free market, as is obvious to anyone who pays attention. What we have is a corporatist system where big government colludes with and to some degree is controlled by big business. Some go so far as to call it inverted totalitarianism.

“Jobs don’t disappear because greedy capitalists replace people with robots. Businesses turn to robots because consumers want lower prices than can be achieved with human workers.

“The robots are just a means to that end.”

Yeah, well…

The feudal rights of the commons didn’t disappear because greedy aristocrats privatized and enclosed land by having replaced serfs with slaves. Plantations turned to slaves because consumers wanted lower prices than could be achieved with free citizens.

The slaves are just a means to that end.

Okay. So, I guess that means everything is perfectly fine and morally justified. Quit your complaining. It’s the invisible hand responding to market forces that stole your job. It’s no one’s fault that, as surplus labor, you are now a worthless human and a useless eater. Progress marches on, with or without you.

This attitude is strange. It’s a fatalism built on capitalist realism, which is no better than communist realism. The attitude is that we are helpless before forces greater than us. All we can hope to do is adapt to the inevitable. But if failing that, then we better get out of the way or else get run over as we deserve.

Oddly, after all the clueless blather, the author almost comes to a decent conclusion.

“I think our twisted ideas about money, work, and education are the real problems. They’re distorting supply and demand. The root causes aren’t so much economic as cultural and psychological.”

Sort of. The problem is that people like this author hold such ideas and will defend them, no matter the costs. He isn’t suggesting we fundamentally change our thinking, just maybe tinker a bit around the edges.

Otherwise, the system itself is just fine. The real problem is the people, which is to say all those poor people complaining. Sure, the root causes are cultural and psychological. I’d add that indeed they are also economic, as all of it is inseparable. Improving the bad attitudes of poor people isn’t going to solve the systemic failure.

“This year’s US election, contentious though it was, brought important issues to the surface. Ditto events around the world, like Brexit. The economy isn’t working like we think it should. People are tired of asking questions and getting no good answers.”

That is to put it lightly. Important issues were brought to the surface, in the way that magma is brought to the surface when a volcano erupts. Just wait until that volcano really blows its top, turns the sky black with smoke, blocks out the sun, covers the land in ash, and sends the population fleeing in all directions. Then questions and answers will be moot.

“I don’t have all the answers. I suspect no one person does. But the answers are out there, and we won’t find them unless we look for them.”

At least, he is admitting this much. After writing all that, he states he doesn’t actually have all the answers. Yet, as an economic analyst writing for a investment newsletter, it’s his job to have answers or else pretend he has answers. He belongs to the upper class intellectual elite who are supposed to be telling the rest of us losers what we should be doing.

“That awkward, uncomfortable search will be the global macro story in 2017 and probably beyond.”

Well, it will surely be continuing into the coming generations, assuming mass catastrophe and collapse doesn’t happen before then. What is up ahead on the road might not be a pothole to easily drive around. That very well might be a sinkhole that could swallow us whole. Society continues to move forward. Some think this means progress. But what are we moving towards?

Maybe we should slow down a bit and get our bearings.

Our Bleak Future: Robots and Mass Incarceration

My friend last night dropped me off a copy of Time magazine (September 9, 2013). There was an article he wanted me to read which I just now finished reading. It’s about robotics and human employment.

Winners and Losers in the New Robot Economy
by David Von Drehle

I wouldn’t highly recommend the article. The author doesn’t offer any deep insights. Still, it is always an interesting topic to think about. The article is worthwhile n terms of a conversation starter, and indeed conversation(s) needs to be started.

There is disagreement about how quickly this robotic revolution will transform society. I suspect it will happen sooner than most people realize. It has already begun, that is for sure. Robots taking over jobs here and there, doing minor functions that no one cares about. But so far it has been fairly isolated. At some point, though, all the pieces will come together and whole job sectors will disappear almost over night. It has been a gradual process, but the final result will feel like it came out of nowhere because the average person isn’t paying attention (neither are many above average people).

This really is an extension of deindustrialization which has been going on for a half century. Before that, industrialization had been an equivalent replacement for an agricultural society. As the article points out, half the population was employed in farming a little over a century ago. Most of those people moved to the cities and found factory jobs. That seemed like progress. But things have been quite different with deindustrialization for there has been fewer jobs created than destroyed.

This connects to my recent preoccupation with mass incarceration. Black communities have been hit hardest as blacks have been concentrated in the inner cities. Racist houing and home loan practices and sundown town policies forced blacks into the inner cities. Housing projects, highway bypasses, poverty, underfunded schools and general ghettoization (along with other aspects of structural racism) have trapped them there. And now they are less than desirable places to live. But that wasn’t always the case.

During the early 20th century, the inner cities were thriving communities. This is where many of the early factories were located and so blacks were highly employed. Deindustrialization, along with globalization, decimated these communities. In the 80s and 90s, much of the American population was doing great, but blacks were being hit by unemployment rates not seen by whites since probably the Great Depression. Most of the jobs left and with them the hope of escaping the inner city. Poor blacks became surplus humans. At least under slavery, they were necessary to the economy. Now they had become useless eaters, a problem to be solved or eliminated.

The War on Drug became the perfect solution and so it was purposely targeted at the victims of deindustrialization. Since we had no jobs to offer poor blacks in this brave new world of globalization, we decided to wharehouse them in prisons and housing projects or else concentrate them in isolated inner city ghettoes. That way at least they would be hidden from sight where the rest of us wouldn’t have to acknowledge this evidence of our society’s failure and dysfunction.

Whites who aren’t impoverished might ask, what does this have to do with me? Screw those losers in the game of life. It’s a jungle out there. Eat or be eaten. If you are useless to our society, then you should count yourself lucky to be imprisoned where we good taxpayers will pay for your room and board.

To this, I’d point out that poor blacks are the canary in the coal mine. What has been happening to them for a half century is now beginning to happen to the rest of us. We are all slowly but surely becoming less-than-useful, all of us accept the upper classes that is. This is why unemployment, poverty and economic inequality is growing and why socio-economic mobility is shrinking. The jobs are disappearing and we have no reason to expect them ever to return.

Do you really think it can’t happen to you?

Back when blacks had high employment, they had healthy and thriving communities. Their marriage rates were very high and their families were stable. They saw socio-economic mobility like never before seen for blacks in America. Economic inequality was decreasing for all Americans. It was what we once referred to as living the “American Dream”

Now, whites are starting to have worse marriage rates than blacks had back then. Also, consider the fact that blacks now with all the problems inflicted on them have a higher average IQ than whites had a half century ago, and presently the black/white IQ gap is quickly closing. Those low IQ whites of the oldest generation lived the American Dream, despite lacking much in the way of education or even formal training of any sort. In order to find work, all that was required was a willingness to work. That world is quickly disappearing for many Americans.

What makes those not a part of the upper class think they are somehow special, somehow exempt from the forces of brutal capitalism?

The future provides us with two basic options. We might all become part of the under-caste like poor blacks. In that case and if we are lucky, the majority of the population will be ghettoized and incarcerated. If we aren’t so lucky… well I don’t want to think about that. The only other option is a massive welfare state like portrayed in Star Trek, specifically Next Generation. In that show, all poverty and related problems have been solved. Anyone is free to do what they want without fear of homelessness, starvation and sickness. But everyone knows that isn’t the American way. We’d rather let people suffer and die than to create such a welfare state. So, I guess that means mass incarceration (or its equivalent) for us all will be on its way.

That is my happy thought for the day. You’re welcome!