LBO News from Doug Henwood

Rasmus responds

Jack Rasmus has filed this remarkable response to my post yesterday criticizing his criticism of the GDP revisions. I’m posting this unedited (including leaving his Twitter handle, which he’s coded as a hashtag). I’ll respond shortly in the next post.

TO Doug Henwood: Here’s my reply to your personalized polemic to my recent article on GDP revisions, which is published on my blog and elsewhere. Jack Rasmus

“On Wednesday, July 31, the Bureau of Economic Analysis, undertook a major revision of GDP statistics. The result was a major upward revision of GDP numbers for the 2nd quarter and for 2012. While the BEA revises numbers and its methods every five years, this time the revisions were extraordinary and particularly significant.

GDP for 2012, as I pointed out in my prior article, ‘Economic Recovery by Statistical Manipulation’, was raised by almost 33% as a result of the BEA revisions–from the 2.1% annual growth to 2.8%. Moreover, the consensus forecasts by economists for the recent 2nd quarter 2013, which averaged 0.9% according to the Reuters survey, came in at nearly twice that, at 1.7%, due to the revisions. This is not a normal upward revision, most of which made in previous years by the BEA had very little effect on GDP numbers.

Changes made by the BEA to the contribution of investment to GDP were especially important. As I noted in my previous article, nearly all other areas of economic sectors that make up GDP were flat or declining in the 2nd quarter. In other words, the massive upward revision to GDP in the 2nd quarter, as reported by the BEA, appears largely attributable to its revisions to how investment is defined. If how we define investment can have that big an impact on GDP, the changes should not be accepted without challenge.

My article has raised some hackles in some quarters, including among some segments of the ‘liberal left’ that continues to be apologetic for the Obama administration despite its abysmal record economically, in terms of civil rights, wars, concessions to corporations, and so forth for the past five years.

Some among them claim I am arguing there is a ‘conspiracy’ to falsely boost GDP by the Obama administration. But I nowhere raise the charge of conspiracy in my article. Notwithstanding that, those who charge me with such are rather naïve if they think that the BEA bureaucrats, before they reported such numbers, didn’t check it out first with the Obama administration and get its ok. And that it is quite likely there was even more to it than mere reporting of things to come. Who knows for sure. But with what’s going on with data these days in Washington, it’s not realistic to assume the BEA changes had nothing to do with politics. Perhaps not overtly, but tacitly and maybe even covertly.

Much of the increase in investment by the BEA’s redefinition is associated with research and development expenditures by business. The BEA previously considered R&D an ‘expense’. Now it’s an investment. Where does the slippery slope of redefining expenses as investment stop? Obama has proposed in his 2014 budget to significantly increase tax credits to businesses for R&D expenses. That will significantly boost R&D investment. That spending in turn will boost GDP still further in months to come. Does anyone naively think the two developments are completely unrelated? It’s not paranoid to raise the point. Nor is it conspiratorial. It’s just politics, in this day and age when Washington is intent on providing benefit after policy benefit to its corporate friends.

Nevertheless, my critics—some New York left liberal types in particular—insist on defending the BEA and the administration. My insistence that the 33%-50% boost to GDP numbers is not a ‘normal’ revision is dismissed as ‘paranoid’ and ‘conspiracy’ theory. They argue that the changes to investment by the BEA, producing the 33%-50% GDP increase, are reasonable. But are they?

These critics think that adding more than $500 billion to 2012 GDP is normal. They point out that the BEA revisions had little effect on long run GDP since the 1960s. That’s true. But the changes have had a big impact on GDP since the so-called end of the Great Recession in 2009, and especially in the latest 18 months. They are ‘frontloaded’, in other words, having their greatest effect on GDP during the ‘recovery’ period since 2009, during which time it has become clear neither fiscal or monetary policies have done much to generate a sustained economic recovery. So that the 33%-50% boost to GDP in the last 18 months does result in making the failure at recovery appear significantly less so. To point that out is to engage in ‘agitprop’, I’m told.

Critics also pooh pooh my point that gross domestic income, GDI, is rising faster than GDP, even though the likes of Bernanke, chair of the Federal Reserve, does not think the trend is unimportant—as I quoted him in my original article. Something of import is going on here, between gross domestic income (GDI) and gross domestic product (GDP). The historical ratios between the two are changing in the last decade. But why so, we should ask? In reply to my critics, of course incomes from capital gains, dividends, etc. are not directly included in GDP calculations. But the BEA revisions, by increasing investment, do raise corporate profits (as Dean Baker has correctly pointed out, by more than $250 billion in 2012 alone). Corporate profits then get distributed to shareholders in the form of dividends and other capital gains. Raising investment by redefinition raises profits, which raises the distribution of those profits in the form of dividends, capital gains, etc. Ok, that direction of causation is clear.

But should we raise the possibility that the direction may be reversed as well? To explore that point: it is a fact that multinational corporations, for example, now earn on average 25% of their total profits from what is called ‘portfolio investment’—i.e. from financial speculation. Some like General Electric even more. Could it be that corporations are counting more of such profits in the totals reported to the BEA, that then gets reported in GDP-GDI calculations? Doing so might permit them to claim tax reductions on those portfolio profits, just as they do on production profits. So there could be a motive for counting profits from financial speculation as part of GDI, which might explain why BEA corporate profits (and GDI) are running ahead of GDP in recent years. It’s a legitimate question to raise, and doing so is not to suggest ‘conspiracy’ or reflect ‘paranoia’.

There are serious problems with GDP reporting if GDI is somehow rising faster than the value of those goods and services themselves. But critics of my view believe that to raise such questions is to ‘insult their friends at the BEA who are all skilled and honest servants’, as one of my ‘left liberal’ critics puts it in a recent reply to my article.

There are many things wrong with GDP as a measure of how the US economy is doing. But when GDP is revised upward by a stroke of the pen by such a significant amount, we should not be overly defensive of those responsible, or of the politicians who either collude in the process or let it happen.

To say now, as the BEA is saying with its recent GDP revisions, that ‘expenses’ constitute investment is a major shift of definition of GDP. It has resulted in a record upward revision of the numbers, and a slippery slope to further false upward revisions that will follow no doubt. Perhaps the ‘expenses’ incurred in derivatives investing by multinational corporations will soon be considered ‘investment’ in the next round of BEA revisions.
Government data should not be accepted on its face value. We should be challenging it, especially when changes to it are so significant as the case of the recent GDP revisions. Doing so should not critiqued on a personal level, calling those who raise challenges ‘paranoid’ and ‘conspiracy theorists’. That’s just juvenile. We should debating these issues, not polemicizing over them.

Jack Rasmus, August 2, 2013
Jack is the author of the 2012 book, ‘Obama’s Economy: Recovery for the Few’, Pluto Press, and host of the weekly radio show, ‘Alternative Visions’, on the Progressive Radio Network. His website is www.kyklosproductions.com, and blog, jackrasmus.com. His twitter handle is #drjackrasmus.

GDP revisions: not a conspiracy, Jack

The irrepressible Jack Rasmus, who never tires of displaying his ignorance, has a piece up on Counterpunch (“Economic Recovery by Statistical Manipulation”) on the recent revisions to the U.S. national income and product accounts (NIPAs). No doubt speaking for legions of paranoids, left and otherwise, Rasmus describes the revisions as yet another politically driven scheme to make the economy look better than it is—“rewrit[ing] the numbers to make the failure ‘go away.‘” They’re not, and they don’t.

Like almost all economic stats, the national income numbers—GDP and its supporting cast—are revised frequently as better data replace early estimates. In order to produce timely data—the first estimates of GDP et al come out less than a month after the quarter ends—some components have to be estimated. Over time, as more definitive numbers come into the Bureau of Economic Analysis (BEA), which produces the NIPAs, earlier estimates are revised. First takes are revised over the two subsequent quarters, and then every summer there’s an annual revision to the NIPAs that goes back several years. Every five years there’s a so-called benchmark revision, which involves not only the incorporation of better underlying data, but often conceptual rethinks as well. If Rasmus has any idea of this revision schedule, he doesn’t let on—not surprisingly, because it might interfere with the conspiracy theory (sorry, hate that cliché, but it’s earned in this case) he’s trying to weave. You can read all about the machinery behind the NIPAs yourself by following the links on this page: BEA National Economic Accounts; revisions are specifically addressed here.

With this benchmarking exercise, the 14th iteration, the major rethink was the reclassification of expenditures on research & development as well as the creation of original works of art and entertainment as investment; previously they were classed as routine business expenses. These new categories, along with software (previously counted along with investment in machinery and equipment), form a new aggregate, intellectual property (IP) products. The difference is that investment adds to GDP and routine expenses don’t. You can argue with the details, but this change is not conceptually outrageous. R&D that leads to a new drug or processor chip is a lasting commitment that produces income over time, which is what investment is all about. Ditto the creation of a new movie, even if it’s dumb. (Valuing these things can be very hard, but that’s more a practical than theoretical problem.) The effect of this change is to add about $470 billion to 2012’s GDP (which, by the way, is the total value of goods and services produced in the U.S.). Other conceptual changes add another $55 billion or so, and better source data, another $34 billion. You can find plenty of details in the news release.

But these changes were applied to previous years as well—more in recent years, as IP products have grown in importance, but the revisions go all the way back to when the NIPAs begin in 1929. So while the level of GDP was revised upward by 3.6%, earlier years were also revised upwards, meaning that growth rates weren’t affected all that much. The average growth rate for the 2000–2012 period was revised up all of 0.1 point, from 1.6% to 1.7%. That’s still a very weak number, half the 3.1% average since 1960 in fact. And that average was unaffected by the revisions. The Great Recession was marked down somewhat in severity, from a loss of 4.7% in real GDP to 4.3%, but it remains the worst recession since the 1930s by a considerable margin. And the recovery since 2009 has been upgraded a bit, but it remains the weakest upturn in modern history. In other words, Rasmus is completely wrong about revising failure away.

He’s wrong about many other things as well. The entire passage about Gross Domestic Income (GDI) is deeply wrong. Note that the full name of the accounts is the national income and product accounts. That is, there are two sets of books, one for income and one for product. Income, by definition, has to be earned in production (like wages or profits—leaving aside the theoretical question of whether capitalists “earn” their profits). In theory, the two estimates, income and product, are supposed to match. In practice, they don’t, because real life is never as neat as a textbook. Often the income estimate has run ahead of product, which Rasmus wrongly attributes to income earned in speculation. Speculative incomes, like capital gains, have nothing to do with production, and are therefore excluded from the NIPAs. But income doesn’t always run ahead of product; sometimes it lags. If Rasmus knows this, he doesn’t let on about this either. Of course, doing so would have undermined his agitprop.

That’s not all Rasmus is wrong about. He asserts that the GDP revisions may lead to revisions to the employment numbers. In fact they won’t, since the two are computed separately. (Actually the employment numbers are an input to GDP estimates, not the other way around.) He repeats the baseless claim that Reagan revised the unemployment numbers to make them look lower; in fact, there have been only minor changes to these stats over the decades, and the changes have been in both directions (though always in small magnitudes).

The people who produces economic and other statistics are skilled and honest civil servants. I’ve been talking to these people for over 20 years—they’re very open about what they do, and the virtues and limitations of the numbers they produce. You could argue—as I would—that GDP is only a very partial measure of economic welfare. It says nothing about distribution or quality, and takes no accounting of the degradation of the natural environment nor of unpaid domestic labor. You could argue that Iron Man 3 is not a positive contribution to human welfare, so counting it as an “investment” is some sort of cruel joke. You could argue that the whole idea of IP is a subtraction from human welfare, since information wants to be free (though that’s not how capitalism works, alas). But Rasmus doesn’t make these arguments. Instead, he just makes stuff up.

Official stats will show you that chronic unemployment is a major and lingering problem, that the U.S. income distribution is horribly unequal and has gotten worse over the last three or four decades, and that poverty remains scandalously high. Official stats, as they are, without the ministrations of Jack Rasmus. In fact, it’s amazing how much damning information the government publishes about American society almost every business day. You don’t need to spice it up with phantasmic plots.

Some unions complain about Obamacare, discreetly

A friend of LBO’s sent this along—a letter from three unions to the Democratic Congressional leadership complaining about Obamacare. It was not meant to be public, though it got leaked and is making the rounds—though not vigorously enough. In an effort to speed up the circulation, I’m posting it here. The unions are worried that their multiemployer plans are going to take a hit, a fact that the Obama administration seems not to care about despite all that unions did for them, and that employers are going to cut back on full-time workers and replace them with part-timers to evade the (postponed) employer mandate.

Dear Leader Reid and Leader Pelosi:

When you and the President sought our support for the Affordable Care Act (ACA), you pledged that if we liked the health plans we have now, we could keep them. Sadly, that promise is under threat. Right now, unless you and the Obama Administration enact an equitable fix, the ACA will shatter not only our hard-earned health benefits, but destroy the foundation of the 40 hour work week that is the backbone of the American middle class.

Like millions of other Americans, our members are front-line workers in the American economy. We have been strong supporters of the notion that all Americans should have access to quality, affordable health care. We have also been strong supporters of you. In campaign after campaign we have put boots on the ground, gone door-to-door to get out the vote, run phone banks and raised money to secure this vision.

Now this vision has come back to haunt us.

Since the ACA was enacted, we have been bringing our deep concerns to the Administration, seeking reasonable regulatory interpretations to the statute that would help prevent the destruction of non-profit health plans. As you both know first-hand, our persuasive arguments have been disregarded and met with a stone wall by the White House and the pertinent agencies. This is especially stinging because other stakeholders have repeatedly received successful interpretations for their respective grievances. Most disconcerting of course is last week’s huge accommodation for the employer community—extending the statutorily mandated “December 31, 2013” deadline for the employer mandate and penalties.

Time is running out: Congress wrote this law; we voted for you. We have a problem; you need to fix it. The unintended consequences of the ACA are severe. Perverse incentives are already creating nightmare scenarios:

First, the law creates an incentive for employers to keep employees’ work hours below 30 hours a week. Numerous employers have begun to cut workers’ hours to avoid this obligation, and many of them are doing so openly. The impact is two-fold: fewer hours means less pay while also losing our current health benefits.

Second, millions of Americans are covered by non-profit health insurance plans like the ones in which most of our members participate. These non-profit plans are governed jointly by unions and companies under the Taft-Hartley Act. Our health plans have been built over decades by working men and women. Under the ACA as interpreted by the Administration, our employees will treated differently and not be eligible for subsidies afforded other citizens. As such, many employees will be relegated to second-class status and shut out of the help the law offers to for-profit insurance plans.

And finally, even though non-profit plans like ours won’t receive the same subsidies as for-profit plans, they’ll be taxed to pay for those subsidies. Taken together, these restrictions will make non-profit plans like ours unsustainable, and will undermine the health-care market of viable alternatives to the big health insurance companies.

On behalf of the millions of working men and women we represent and the families they support, we can no longer stand silent in the face of elements of the Affordable Care Act that will destroy the very health and wellbeing of our members along with millions of other hardworking Americans.

We believe that there are common-sense corrections that can be made within the existing statute that will allow our members to continue to keep their current health plans and benefits just as you and the President pledged. Unless changes are made, however, that promise is hollow.

We continue to stand behind real health care reform, but the law as it stands will hurt millions of Americans including the members of our respective unions.

We are looking to you to make sure these changes are made.

James P. Hoffa
General President
International Brotherhood of Teamsters

Joseph Hansen
International President
UFCW

D. Taylor
President
UNITE-

Fresh audio product

Just added to my radio archives:

July 18, 2013 Kathi Weeks, author of The Problem With Workon less work, more money • Steve Horn, author of this article, on the Obama-linked liberal foundation at the heart of public school privatization

Fresh audio product

Just added to my radio archives:

July 11, 2013 Gilbert Achcar of SOAS on the uprising and coup in Egypt • Adolph Reed on the new generation of (neoliberal) black politicians (with a coda on how poverty came dominate American discourse on inequality)

Tim Wise’s game

by John Halle

As the mask comes off, revealing the Obama administration’s reactionary face, the spin deployed by its much vaunted media team is beginning to lose its power to confuse and misdirect.  And with this, those whose business model involves selling Obama as a species of “pragmatic liberal” are gradually finding themselves parading their factual bankruptcy and rhetorical dishonesty for all to see.

A recent piece  by Bruce Dixon excellently takes down two of the worst of this variety: MSNBC’s Joy-Ann Reid and Melissa Harris Perry. But it is important to recognize that they are not the only ones who have made careers for themselves in the marketing, sales and distribution of the Obama brand. One of the most successful, and arguably a more effective marketer than the MSNBC cheerleading squad is the self described anti-racist Tim Wise.

Wise would, of course, vehemently object to being characterized as an Obama apologist, though, as we shall see, the ultimate effect of most of his work is to promote a multicultural form of neoliberalism fully consonant with the administration’s views and which thereby strongly serves its political interests.  His real beat is as an “anti-racist educator” with several books to his credit, a full schedule of speaking appearances at university campuses, public high schools and police departments leading racial sensitivity workshops as well as increasingly high profile media appearances including on mainstream national cable outlets.

Being attuned to racial sensitivity is a job Wise takes seriously, as can be seen in Wise’s blog entries and numerous tweets.  A large fraction of these involve policing the left for any claim, phrase, indeed, any word which could be construed as insufficiently informed by the historical injustices and atrocities visited on POCs (to use Wise’s preferred acronym).    Wise does not merely make note of these. Acting as judge and jury, Wise reaches a verdict, imposes a sentence on those he has found guilty, and the sentence is often death.

This is, unfortunately, not an exaggeration.  When those who raised concerns-soon borne out-of the potential of objectively reactionary governance from the Obama administration enabled and aggravated by its deadening effect on mass movements, they were described by Wise as having “become such an encumbrance as to render (them) all but useless to the liberation movement” prospective recipients of “a burning they will richly deserve.”

The hanging judge

This is not the only death threat to be found in Wise’s oeuvre.  Another was addressed to those who “insist they aren’t racist because they have black friends.  I am going to shoot them,” Wise declared. While these were among the more unvarnished instances of eliminationist rhetoric, the violent tone of his discourse suggests that Wise fantasizes his targets being subjected to lynching, or at least necklacing, as poetic justice for what he takes as their complicity in crimes against peoples of color.

That Wise grants himself the authority to judge other’s motives and actions naturally raises the question of what his qualifications are to do so. These are often virtually non-existent with Wise simply inventing facts which are subsequently used to attack, denigrate or belittle.

A recent example found Wise charging Glenn Greenwald with “never hav[ing] sa[id] shit about racial profiling, or surveillance of POC/Muslims.” In reality, Greenwald has a long history of speaking out on this issue-easily obtained by a simple google search, as Greenwald noted in a 100 character rejoinder. This interaction subsequently revealed a third salient feature of Wise: neither a retraction or apology from Wise was extended.  Having mounted his high horse, Wise not only exempts himself from the requirements of factual accuracy but from basic decency.

Wise’s tone and sloppiness might be rationalized as understandable overreactions to right wing provocations until one recognizes that these attacks are not directed towards the right, actual racists or those who promote objectively racist policies.  Rather Wise reserves much of his ire for those whom Obama’s former Press Secretary famously referred to as the “professional left”.  Included among these are left critics of Obama such as Greenwald, Paul Street, and other “barbituate leftists” who “preen as moral superiors because (they’ve) read Bakunin, and Zerzan, and Chomsky, or because (they) once called a cop a pig to his face in Seattle or some such thing.”

The purity of Wise’s animus towards the left was impressively displayed in a recent series of tweets provoked by the NSA disclosures and the Obama administrations efforts to retaliate.  Rather than welcome the revelations, Wise was quick to minimize their importance, basing his dismissal on a transparently absurd claim by Wise that “NO people of color (are) shocked by Snowden’s revelations. None. POC assume this shit. #whiteprivilege lets u ignore till now.” When those who objected to this gross distortion responded, they were red baited as “white Marxists” who fail to appreciate that “white supremacy is the glue that holds the U.S. class system together, and if you don’t KNOW that, yr an idiot.”

These same “white leftists” according to Wise should congratulate themselves “on their irrelevance & wonder why most POC apparently think they r full of crap…” According to Wise, “I’d be effing amazed if any white leftists enamored of Snowden actually new shit about movement building and how its done.” And “Let’s b [sic] clear: Glenn Greenwald was a moderately decent college debater who thinks this is his moment. It isn’t. You nor Snowden r heroes.”

Smearing Snowden & Occupy

This final tweet removed the veil from the game being played by Wise.

As those who have followed the matter are aware, the  “no heroes” designation of Snowden and Greenwald has been a staple of Obama’s apologists, Reid, Harris-Perry, and others, almost certainly circulating a focus group tested talking point devised by White House media specialists.  By blandly parrotting this well worn establishment smear, Wise revealed his membership within this cohort, with the only difference between Wise and the others inhering in Wise’s primary demographic being not the liberal MSNBC left but the radical left associated with Zmag, Democracy Now and the Nation.  For this constituency, full throated defenses of Obama’s policies have long since failed to pass the laugh test.  And so Wise is always careful to note his disagreement with Obama’s policies, his service to the administration deriving from his reliable attacks on the “white privilege” of left critics providing an easy rationalization for complacency and inaction.

Wise’s political services were provided not only in the wake of the Snowden disclosures but, more predictably, in response to the Occupy movement about which Wise has had very little to say.  Wise’s silence was predictable given that OWS seeks to reconstruct a unified movement directed against the plutocratic 1%, unifying rather than dividing, as Wise would, the 99%.   Rather than participate in OWS, Wise contributed to a collection of essays entitled Occupying Privilege in which “readers will learn about white supremacy, media’s spin control, (mis)education, the criminal IN-justice system, cultural appropriation, and racism’s continued impact on people of color and white people.” No mention of Wall Street banks, housing foreclosures overwhelmingly impacting POCs, trillion dollar bailouts,  as this would distract from the question of  “So, um, what the hell is white privilege anyway, and do I have it?” According to Wise, “The short answer is if you’re white, yeah, you do.”  By helping circulate the OWS/white privilege meme, Wise helped develop a much brandished rhetorical bludgeon for the defenders of plutocracy against what was the most successful attack on its foundations in many years.

Not just a potato chip

The above is somewhat misleading in that it suggests that Wise’s central priority is the promotion of the Obama brand.  Rather it should be understood that the main product Wise is selling is himself, specifically his “racial sensitivity” franchise which he has indeed successfully marketed and profited from handsomely, as noted above. There is a connection between these two objectives: in order to be regarded as legitimate by mainstream institutions from which his bread and butter income derives, Wise’s criticisms need to remain within legitimate boundaries, which in practice means narrowly directed towards race.  Attacks against white privilege are, for reasons mentioned above, welcomed by the establishment. In contrast, those directed against the real power in the hands of what is now an increasingly multicultural elite are out of bounds. Wise understands these rules of the game very well, and he plays it expertly.

That said, it should be noted that Wise’s rise to a position of public prominence was crucially aided by the alternative media, especially at the initial stages, most notably by Zmag where Wise first established a media perch some two decades ago.   This brings up the issue of why was a figure who has so consistently expressed his contempt, or at best, a distinct lack of enthusiasm for leftists and core aspects of the left agenda continues to be welcomed by it with open arms.

I won’t attempt to address this here, as the subject is perhaps best left alone, though with the understanding that a similar trajectory was followed by Melissa Harris Perry who began her rise accessing authentic left outlets such as Democracy Now!, Laura Flanders’s GritTV, and The Nation. By this point, neither Wise nor Harris Perry has any need of the ladder which was provided for them, and so both are free to consolidate their positions by joining in establishment attacks on the left agenda.

While it is probably by now too late to matter in their cases, it is encouraging that a first flicker of recognition of the reactionary character of the Wise/Harris Perry brand of multicultural neoliberalism is beginning to be visible.  As it has in many other quarters, the disclosures of Greenwald and Snowden provided the impetus for a broader examination of which side Wise is on.   A good indication unearthed by Doug Henwood was Wise’s having been engaged by Teach for America a group which, as anyone with a minimal political awareness understands, is devoted to the undermining of inner city education and the whole sale layoffs of African American teachers to be replaced by TFA’s overwhelmingly white, underqualified, non-union recruits.

Wise’s having “Stamp(ed) TFA’s Anti-Racist Ghetto Pass” provoked a sharp response from Bruce Dixon at Black Agenda Report who circulated a petition calling for Wise to cancel his scheduled engagement with TFA. Unsurprisingly, Wise has rejected Dixon’s request. More significantly, Dixon went further, raising doubts about Wise’s competence, awareness and, ultimately, underlying agenda: “If this is how ‘anti-racism education’ works—giving cover to organizations and policies that hurt people of color more than anybody else—it might be time to re-think that whole contraption as well.”

From Bruce Dixon’s lips to all of our ears.  It is indeed time to consider what use is served by the “anti-racist education” industry and for one of its main operators, Tim Wise, to find a new, preferably honest, and less destructive line of work.

John Halle is a professor of music at Bard as well as a political writer and activist. 

Fresh audio product

Just uploaded to my radio archives:

June 27, 2013 Rachel Kushner on art, politics, and her novel The Flamethrowers • Mark Mizruchi, author of The Fracturing of the Corporate Eliteon the rot of the managerial class

New college grads: could be worse

It’s become an article of faith lately that there’s little point in going to college—you just end up deep in debt and unemployed. That’s not really true, at least the unemployed part.

The Federal Reserve Bank of New York—which has shown an unusual interest in the state of the youth lately, having also developed its own data on student debt—is just out with a presentation on how recent college grads have been faring in the job market. (It’s part of a longer presentation that begins on p. 11 of this PDF.) The soundbite is: they’re not thriving, but things could be a lot worse.

Highlights:

• Recent college grads have an unemployment rate about 2 points below the national average.

• The youngest grads have the highest unemployment rate, but things improve markedly by the age of 25 or so.

• The underemployment rate (the share of college grads holding jobs for which bachelor’s degrees are not required) is high, but—surprisingly—below early 1990s levels and comparable to early 2000s levels. In other words, there’s no unprecedented surge of the college educated young into the latte-serving and pants-folding job categories.

• Earnings for recent grads are higher than those without bachelor’s degrees. This is especially true of those who majored in technical fields like engineering and computer science, but it’s even true for liberal arts majors.

So while it’s not a pretty picture for recent college grads, they’re still better off on average than the un-degreed.

Fresh audio product

Just added to my radio archives:

June 20, 2013 Chase Madar, author of The Passion of Bradley Manning (out in this new edition) on Manning & Edward Snowden • Mark Dery, author of All The Young Dudeson glam rock & straight male sexuality

Is NYC really the city of the 1%?

A column in the weekend Financial Times by Simon Kuper (“Priced out of Paris”) has gotten lots of attention for its claim that the world’s great cities have been grabbed by the 1% to the exclusion of everyone else. For support, Kuper turned to Saskia Sassen, a distinguished Professor of Breathless Generalizations at Columbia, who concludes: “The capture by a very small number of cities of a lot of the excitement and wealth produced by the system – this is a problem.”

Well yeah, but…. I can’t speak about the other cities, but this rather flattens the detail about New York City, the place I know best. Yes, the rich have been running rampant over the place, and in a particularly rich bit of symbolism, it’s been governed by a member of the 1% of the 1% of the 1%, Michael Bloomberg (net worth: $27 billion, which is about half the city’s annual budget), for a dozen years. I even wrote recently about how the elite plans the physical and social environment of New York City very effectively, as it has for many decades (“How the 1 Percent Rules”—not my proposed title, which was “Planning the Imperial City”). But, really, there are a lot of the 99% here too, and it does no one any good to overlook that.

As I wrote back in December 2011 (“NYC: more unequal than Brazil”), for all the glitz, New York City is full of people with very modest incomes. The city’s median income a couple of years ago was $28,213, on a par with Greece. The poorest tenth of the city’s population has a cash income (not counting public benefits) of under $1,000.

What are the rest of us? Chopped liver? One of the crimes of the 1% is effacing the lives of the 99%, and it’s not helpful to repeat this sort of thing uncritically.

Fresh audio product

Just added to my radio archives (click on the date to get to the audio links):

June 13, 2013 Alan Finlayson on the ideology of Bonoism (which is the ideology of hip capitalists) • Betsy Hartmann on the durable toxic appeal of Thomas Malthus

Zizek on the limits of self-organization, etc.

This splendid rant by Slavoj Zizek is from the Subversive Festival, Zagreb, May 15, 2013. I excerpted some bits Zizek delivered during a joint session with Alexis Tsipris, president of Syriza, the Greek left party (which is now a formal party, and not a loose coalition) for my June 6 radio show. For those who don’t want to listen to the whole show, here’s an MP3 of Zizek proclaiming the limits of spontaneous self-organization and autonomous zones, and calls for a reinvention of the state that provides a basic structure to allow social movements to flourish and also allow him to do his crazy philosophy.

Here’s the audio file (length: 6:33):

The full video—which is quite good—is here.

Fresh audio product

Just added to my radio archives:

June 6, 2013 Sungur Savran on the Turkish uprisings • Slavoj Zizek on the limits of spontaneity (excerpt from a conference talk—full video here) • Lee Badgett on LGB poverty (paper here)

Fresh audio product

Now in my radio archives:

May 30, 2013 Harry Browne, author of Frontman: Bono (In the Name of Power), on the dreadfulness that is Paul Hewson • Eamonn Fingleton on how Japan isn’t as bad off as they’d like you to think

Fresh audio product

Just added to my radio archives:

May 23, 2013 David Cay Johnston, columnist for Tax Analysts, on the IRS scandal • Richard Katz, editor of The Oriental Economist Reporton the long Japanese slump and the prospects for Abenomics