OpEdge Redux: More from the speech I gave connecting the attack on public unions to 30 years of taking from everyone to give to the wealthy

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on April 16, 2011.

More from the speech I gave two nights ago at the monthly meeting of the Pittsburgh Area Jewish Committee (PAJC):

To belabor what is probably obvious, shrinking the percentage of the workforce covered by unions shifts money up the economic ladder because the non-unionized workers make less for the same or comparable jobs, leaving the difference for executives, owners and shareholders. It’s not a coincidence that the period in which the United States had the most equal distribution of wealth was the same age in which the economy was the strongest and that unions were also the strongest: after World War II through most of the 70s.  Unions turn low wage jobs into middle class jobs—they always have and they always will.

Here are some other trends that have helped to concentrate more of our income and wealth in relatively fewer hands:

  • Tax policy: We can describe our tax policy since Ronald Reagan took office as “Reverse Robin Hood.”  In Reagan’s first year, Congress cut income taxes to historically low levels, that are nevertheless still higher than today.  A year later, Congress raised taxes, but the new increases fell heavy on the middle class and the poor. And for more than 30 years, that’s the way it’s gone:  tax cuts that primarily benefit the wealthy alternating with tax increases that primarily take more form the middle class. The Bush II cuts that have recently been extended have the highest incomes paying the lowest rates and the lowest percentage of total government revenues in the history of the modernized West.  But even as we have lowered taxes, we have borrowed more money, creating safe havens and investment opportunities in which the rich can stash the money they have saved in taxes.
  • The movement to privatize what have been traditional government services such as running prisons and educating our youth: Whether for schools, prisons, or cooking and delivering meals to soldiers, when a private company does it, it intends to make profit for its key executives and shareholders.  As many studies have shown, low level government workers, many of whom are unionized, typically make more money than their peers in the private sector, most of whom aren’t unionized, whereas private sector presidents, officers and senior management make far more than department heads and other civil service executives.   Some government contracting makes sense, for example, to manufacture tents for soldiers or provide a special social service to an “at-risk” population; these functions have historically been outsourced.  But the new outsourcing of the recent past has usually not worked well for our citizens. Virtually all studies on charter school performance demonstrate that charter schools almost always fail to improve student performance and often worsen it. It is also well documented that the privatization of our prisons over the past 25 years has been a festering scandal of prisoner abuse and fraud.  When the government loans money to students for college and career training, the terms have been significantly better than when the private sector was allowed to do so between the early 90’s and this year. And let me ask you this—did you prefer how our wars went when we used relatively few contractors as in World War I and II, or now that we’re making massive use of military contractors in Iraq and Afghanistan?   Again, keep in mind that when the government gives a contract out instead of doing it with its own workforce, it is taking money from lower paid employees, who tend to be middle class, and giving it to executives and investors, who tend to be wealthy.
  • Shrinking of social welfare programs: We don’t have to spend much time here. It’s clear that a social welfare program, whether it’s food stamps, healthcare for poor children or support of state universities, represents a transfer payment down the economic ladder.  When we used to provide more money for these programs, we had a more equitable distribution of wealth than we do now.
  • The attack on social security: The first step in the 30-year attack on Social Security came when the administration of Ronald Reagan changed the government accounting system and rolled the Social Security Trust Fund into the general budget and then claimed that the Trust Fund was near bankruptcy when all it needed to remain strong was to get back the money that it had lent the federal government. Since then, almost every “fix” that has been made to the system has taken benefits away, for example, by raising the age or retirement, or to collect more Social Security revenues by increasing the percentage of what people pay.  In the same time, the cap on wages to be assessed Social Security taxes has crept up very little when inflation is considered.  Because of the graying of the baby boom generation, we do face a minor shortfall in the Trust Fund in about 30 or so years, not a grave one, but our elected officials seem to avoid the obvious solution—to take the cap off the income which is assessed the Social Security tax.    
  • For example, President Obama’s National Commission on Fiscal Responsibility & Reform proposes eventually raising the retirement age to 69 and raising the cap on income assessed by the Social Security tax only to $170,000.  The lawyers, accountants and writers in this room could work well into our 70’s or 80’s, but the age of 69 seems pretty old for retirement from most jobs: think of janitors, warehouse workers, retail clerks, factory workers, truck drivers, and most hospital staff. Why couldn’t the National Commission have knocked a few years off that proposed retirement number and taken the cap off the income to be taxed for Social Security?
  • Its treatment of Social Security is one of just many ways that President Obama’s National Commission wants to accelerate the movement of income and wealth up the ladder. Although not asked to mess with the tax system, the Commission gave a detailed recommendation for changing it.  Paul Krugman is just one of many economists who, upon analyzing the series of tax increases and decreases proposed by the commission, recognized that if the commission’s plan passed, the wealthy would be paying even fewer taxes.  Meanwhile, the National Commission proposed draconian cuts to social welfare and education programs, again taking money from the poor and middle class who benefit from these programs and giving it to the wealthy, who will get the benefit of the proposed tax breaks.
  • Right-wingers, primarily Republicans, are on the move in many states to take more away from the working and middle classes. Republicans in Missouri, Michigan, Arkansas and Florida have all taken steps to cut the time that the unemployed can receive unemployment benefits. And nationally, the right-wing has begun a legislative assault on Medicare and Medicaid’s funding and fundamental structure.

Now that I have shown you how this massive net transfer of money—almost a heist, as it were—occurred, I want to close with two questions: why should we care and what can we do about it?

Why should we care?  I think most of us are fairly well off, and statistically speaking many of us would qualify as wealthy.  Many of us are among the ones who have done quite well over the past three decades.

But we should all care because one of the hard lessons of economic history is that nations in which equality of wealth increases over time always thrive economically whereas those in which the equality of wealth decreases tend to decline.  I first read of this idea from Fernand Braudel, usually considered the great historian of the 20th century after Toynbee, who brilliantly analyzes Spain’s decline during the 16th century because of the growing unequal distribution of wealth fueled by the growth of predatory tax policies that had the poor and middle classes paying more and the wealthy paying less. A positive historical example is Western Europe after the Black Plague, an age of rapid economic growth and the highest average wage compared to total wealth in western history. Closer to home, we can compare our nation’s condition from the end of World War II to the late 70’s to what it has become since, save for the Clinton boom, which also saw a temporary reversal of the trend towards greater wealth inequality. If we don’t reverse the trend, the economy and quality of life in the United States will decline quickly and permanently.

I want to pose and then give my answer to one other question: What to do to reverse the three decade trend of greater wealth inequality in the United States?  The following are some actions that I would submit we should demand from our elected officials and those who want our vote and support in primaries:

  • Raise taxes on the wealthiest five percent of incomes and use the funds to provide simple wealth-shifting programs such as lowering the cost of tuition at public universities or increasing food stamp payouts.
  • Remove the $106,800 cap on individual and employer payments to the Social Security Trust Fund (known sometimes as SSI or payroll taxes), so that everyone pays on all income but keep the cap on maximum benefits, which would secure the Social Security system well into the future.
  • Raise the minimum wage.
  • Foster unions by lowering barriers to unionization, ending “right to work” laws and requiring that charter school teachers join unions in areas in which the public school teachers are unionized.
  • End government outsourcing for ongoing non-manufacturing, non-research government functions such as operating prisons and public parking and providing military services. Government pays lower paid workers more and higher paid workers less than the private sector does, so when the government does it, there is a more equitable distribution of wealth.

All of these actions will raise wages and redistribute wealth down the economic ladder.  The experience of Western Europe suggests that these moves would not threaten our competitiveness in global markets.

We won’t be able to fix in one election, or even in one decade the grave harm which three decades of taking from the middle class and poor and giving to the wealthy has inflicted on our society.  But if we don’t get started now we will continue along the same sorry path that in 50 short years turned Spain from the most powerful nation in the world into Europe’s backwater for four long and hard centuries.

OpEdge Redux: The speech I gave connected the attack on public unions to 30 years of taking from everyone to give to wealthy

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on April 15, 2011.

I gave the following remarks yesterday evening at the monthly meeting of the Pittsburgh Area Jewish Committee (PAJC). My topic was “putting the Attaack on Public Unions in Perspective.”  I spoke after Sam Williamson, Associate Manager of the Pennsylvania Joint Board of Workers United, SEIU, spoke on the significance of the 1911 Triangle Shirtwaist Fire.

In this speech I pull together a number of ideas that have populated by blog over the past 18 months, so I thought I would publish it on the blog for my readers. It’s pretty long, so I’ll split it up over two days:

Over the next 15 minutes, I’m going to put the current attempt in many states to reduce pensions and curtail the collective bargaining rights of unionized public employees into two broad contexts: one—the 30-year war against labor unions and, two—the role that war has played in the broader movement of income and wealth up the ladder from the middle class and the poor to the wealthy, also a phenomenon of the last 30 years. 

My interest in these matters began when I was a television news reporter working for the national news program, “Business Today” and covered the air traffic controllers’ strike of 1981.  During that time I was the first mass media journalist to report about the impact of the graying of the baby boom generation on the economy and society, and also the first to report on our development into a nation of rich and poor.  Today, among other things, I write the blog, OpEdge, which has investigated and analyzed the right-wing war against unions as one of its continuing themes. 

Let’s get started, because we’re talking about class warfare, which as Betty Davis might have said, is always a bumpy ride.

The attempt of Governor Scott Walker and the Republican legislators to end important collective bargaining rights in Wisconsin is the tip of the iceberg of what is an all-out assault on public workers occurring before our very eyes.  Here are some other examples that have not received as much ink nationally:

  • In Indiana, Democrats legislators also walked off the job to slow down Republican efforts to ram through laws that weaken Indiana’s prevailing wage and collective bargaining laws.
  • In Florida, there are three bills moving through the legislature that weaken the teacher’s union, restrict political activity by public unions and reduce benefits to state workers.
  • Republicans in Iowa, New Jersey, Maine and Ohio are all trying to restrict collective bargaining rights of state employees
  • Meanwhile, the governor of Ohio wants to exempt universities from a requirement that they pay union-level wages on construction projects.
  • Even Democrats are getting into the “attack the unions” game. Connecticut’s new Democratic Governor is demanding $2 billion in public union concessions over two years.
  • Let’s cap this review of anti-union activity across the country with a little Alice in Wonderland thinking that many have been doing, including the New York Times this past January. It seems as if certain policy makers are considering ways to enable states to enter bankruptcy in a new and as yet illegal way that would allow the states to keep paying municipal bond holders while breaking all union contracts.

If you think all this activity against public unions sprang up overnight as a collective expression of the anger or frustration of a country riddled with economic problems, then you haven’t been paying attention.  Right-wingers, primarily from the Republican Party, have been aggressively trying to curtail unionism and union political activity since the ascension to the presidency of the patron saint of union-busting, Ronald Reagan:

  • Symbolically, the 30-year war against unions began when President Ronald Reagan fired more than 11,000 air traffic controllers—85% of all air traffic controllers—because they did not return to work as ordered during a strike in August of 1981. Reagan also banned the fired employees from all future federal work, a move that the Clinton Administration rescinded in 1993.
  • Reagan packed the National Labor Relations Board with management representatives. Prior NLRB boards settled only one third of all cases in favor of employers, even under Nixon. Reagan’s NLRB settled three-quarters of all complaints in favor of employers.  The NLRB under Reagan also took more time to settle union complaints, which made it harder to organize and easier for management to pursue decertification campaigns.
  • Both Reagan and Bush II’s Labor Departments were anti-union. Reagan’s Labor Department, for example, declined to ask union-busting consultants and the companies that hired them for the financial disclosure statements the law demands, but it did ask unions to provide this documentation. Though the Labor Department cut its overall budget by more than 10 percent, it increased the budget for investigating union finances by almost 40 percent. 
  • Under Bush II, the budget was again eviscerated, with funding stripped from every enforcement operation: workplace health and safety, minimum wage, fair hours, and even child labor. But no surprise, funding for investigations of labor unions increased.
  • Now we come to that odd confection called charter schools. Although many well-intentioned people now support charter schools, make no bones about it—the inception of the charter school movement and the continued advocacy by the right-wing has from the start derived from anti-union motives. For the most part, charter schools replace unionized teachers with non-unionized ones, who, of course, make less money, a necessity if the charter school is going to make a profit for its organizers.  The list of long-time financial supporters of the charter school movement reads like a who’s who of union haters, including the Walton family and the Koch brothers.  And supporting charter schools is part of the anti-union panoply of policy recommendations by such anti-union think tanks as the Heritage Foundation, the Pacific Research Foundation and the Goldwater Institute. By the way, virtually all studies of the matter show that the charter school movement has yielded disappointing results in the area of student performance both in school and on standardized tests.

The war on unions is just part of a larger trend over the last 30 years to transfer both income and wealth up the economic ladder.  This period has seen incomes and overall wealth of the middle class and poor stagnate while those for the upper 5% and 1% grow steadily.

Before I lay out some of the key events in this transfer of income and wealth up the economic ladder, let me first convince you that it has occurred.  Most of my facts were supplied by Professor William Domhoff, author of Who Rules America Now and The Powers that Be:

  • The top 1% now owns 34% of all the wealth in the United States, compared to only 20.5% in 1979, for a gain of almost 70% in the past 30 years!
  • Income of the top 1% was only about 13% of total income in 1982 and today  it’s about 21.5%—a gain of two-thirds!
  • The chief executive officers and presidents of companies now make many more times the money than their average full-time worker does.  In 1980, CEOs made about 42 times what the average worked was paid; CEOs now make 475 times the income of the average worker in the United States.  By the way, in Europe and Japan, it’s anywhere from only eleven times as much to 22 times as much
  • The top 1% of S. households owns nearly twice as much of America’s corporate wealth as they did just 15 years ago.
  • And only the top 5 percent of S. households have earned additional income to match the rise in housing costs since 1975.

I think it’s reasonable to say that all ideology and philosophy aside, the past 30 years have seen the rich taking more of the pie and leaving less for everyone else. 

OpEdge Redux: Why would a science writer go on a campaign to belittle education and celebrate ignorance?

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on August 14, 2012.

Tooling around the Internet, I found two Forbes articles by a science writer named David DiSalvo that denigrate education and knowledge. Both are lists, one of do’s and the other of don’ts. But instead of just titling the articles, “Some stuff, I’ve learned along the way,” DiSalvo prefers to take pot shots at those with degrees and smarts.

The names of the two articles say it all:

Ten Smart Things I’ve Learned from People Who Never Went to College

10 Dumb Things I’ve Learned From Brilliant People

The aphorisms on the two lists mostly come down to ways to get along with people: “Don’t talk down to others” and “You can learn something useful from everyone,” although the specific pearls of advice do take occasional snide sideswipes at learning, such as “Learning is good; doing is better” (which turned out not to be true in the case of the atom bomb). Basically, it’s Horatio Alger-Dale Carnegie kind of advice.

So why did DiSalvo tie both lists together with insults to the educated? It is possible that he learned the positive lessons he lists from people who didn’t go to college, just as it’s possible that he saw people he considers brilliant do the dumb things he lists. But that’s his anecdotal experience. Most of the stuff on DeSalvo’s do-this list I learned from people who went to college. His don’t-do list seems to apply equally to people of all intelligence and educational levels in my experience. Those are my anecdotes.

As a science writer, DiSalvo should know that anecdotes don’t prove a thing. If he wants to show some trait that we usually admire, such as brilliance or the discipline to complete college, may be tied to something unadmirable or dangerous, he should cite a study. That’s what a science writer usually does, even when sharing something personal. For example, a recent series of studies gave strong evidence that wealthy people behave less ethically. Of course, no Forbes writer would ever allude to these particular studies, since the Forbes ideology glorifies the wealthy as deserving masters of the universe.

Thus DiSalvo uses a very unscientific approach to make assertions that undercut his profession, since both doing and writing about science require education and a certain modicum of intelligence.

In all of these attacks on intellectualism in the American mass media is a certain smugness, as if to say, we don’t have to read and we don’t have to study. I can understand climate change deniers or those who don’t want to teach evolution in the classroom having such an attitude. But someone who writes about science? You’d think DiSalvo would find another way to unify his lists of disparate homilies. For example, he could have just as easily written, “Ten Smart Things You Don’t Have to Go to College to Learn,” which is less confrontational and not overtly anti-intellectual.

I would be hard pressed to limit to 10 or even 25 the important things that I learned at college and graduate school—important principles of my profession of writing, ways to deal with people especially in big bureaucracies, success strategies for the real world, the scientific method and other ways of thinking. I’m just listing the topic areas, not the lessons.

And don’t get me started about the things I have learned from the many brilliant people among my relatives, professors, clients, colleagues and friends.

I bet DiSalvo’s list of things he learned from brilliant people and things he learned in college would be as long as mine.

Of course, no one would pay him to write an article about a list that praises science, at least not in the current mass marketplace of ideas, which prefers to celebrate ignorance.

OpEdge Redux: One lesson from the Tang Dynasty: the wealthy always find a way to control things

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on December 23, 2010.

I’ve been reading an excellent history of the Tang Dynasty, which ruled most of China from 618-907, during which time China experienced a Renaissance in literature and the arts, especially poetry.  It’s China’s Cosmopolitan Empire: The Tang Dynasty by Mark Edward Lewis.

Many books pad their pages past the direct subject to one degree or another.  For example, one writer will relate her factual tale with her reaction to it, another will reference the rock music and movie stars popular at the time.  Lewis’s padding adds richness to his story.  He projects the narrative both backward to the dynasties before the Tang and forward to the dynasties afterwards, especially the Song and Ming.  The result is a wonderful encapsulation of all of Chinese history, which of course gives an added level of meaning to the story of the Tang.

What I love about reading history is the many parallels I find to our current society and situation.  I have written before, for example, about the similarities between the United States in the post-War era and Spain in the 16th century under Phillip II.

Here’s the most interesting parallel between Tang and our current society that I’ve come across so far:  It was during the 300-year reign of the Tang that examination replaced coming from a wealthy family as the primary means of attaining a good government job.  We could call it the ascendancy of the meritocracy and it sounds a little like what happened in the United States beginning with establishment of the civil service in the 1880s.  The SAT and other standardized tests have in many ways become a similar gateway to a promising career that the examination system was in Imperial China.

And yet by the end of the Tang, virtually all the good government jobs were filled by the children of the wealthy.  How did it happen that a meritocracy developed that resulted in rewarding the rich rather than the inherently talented?  Lewis says (pages 203-204) that:

  • The wealthy were more able than others to spend a lot of money preparing their children for the exams.
  • The exams were given only in the expensive and often faraway capitals, which put a financial burden on the poor students and their families, but not on the wealthy.
  • The little public education that existed in China eroded with the growth of the importance of the examination. Convenient for the wealthy, who were also starting to pay fewer taxes, we learn elsewhere in the book
  • Many of the examiners knew the families of the wealthy applicants taking the exams. Let’s call it the Imperial Chinese version of being a legacy at an Ivy League university.

Sounds familiar.  I imagine all the nicely situated but not super-wealthy Tang-era  families churning with anxiety as they tried to keep up with the wealthy in preparing their children for the examinations and ingratiating themselves with the examiners.  Do you think the mothers compared the benefits of the various private tutors over tea at the local Qĭ-Jiă (Star-buck in Chinese according to one online dictionary)? Do you suppose that among the voluminous output of poetry during the Tang there were guides to studying for the examination?

OpEdge Redux: We should be asking more of business owners and executives than merely creating wealth for themselves

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on October 21, 2010.

I’ve been thinking lately about the idea of business ethics, and specifically about the actions that ethical business owners should and should not take in the course of running their businesses.  I’m not talking about what’s legal, but instead about what’s right, which is something altogether different. For example, we know that it was mostly legal for banks and mortgage brokers to write all those subprime loans, but it turns out that it wasn’t right because it ended up hurting our economy and our society.  In the same way, businesses make all kinds of “business” decisions that are legal, but which may not be helping society.

All the time we read public businesses extolling the fact that their job is to maximize value for their shareholders. But don’t they have a responsibility to the communities that buy their products and services, build their roads, sewers and infrastructure, and protect their assets and employees?

Many corporations and businesses talk about their social responsibility, and what they usually mean is contributing to nonprofit organizations, serving on boards and exhorting their employees to do the same. All good, but what I’m talking about is not what a business does with its excess profits and the executives’ and other employees’ time, but how you run the business.

Those who have been following my blog for even a few weeks know that I take a fairly left-leaning stance on most political and social issues, and that I believe that as a society we need to address the related environmental issues of global warming, pollution and depletion of our natural resources.  So it won’t surprise you to see that a concern for social equity and environmental protection drives the following principles, which I am recommending to all businesses, large and small.

So here is the OpEdge “Pledge to America” that I believe owners of private companies and leaders of public companies should take:

  1. Subsidize mass transit for employees, but do not pay for parking for any employee who does not absolutely require an automobile to do the job.
  2. Recycle and insist that the buildings in which you have operations or offices be “green,” which means making the facilities more energy efficient, recycling building waste and using recycled and recyclable building materials.
  3. Pay all of the premiums for the most benefits-rich healthcare plan available for your employees.
  4. Make sure that it is clearly understood that the company will not tolerate any discrimination against employees, prospective employees, vendors or customers because of a person’s race, age, sex, sexual orientation, religion, disability, illness, obesity or lifestyle. By the way, besides being the right thing to do, it’s also the law of the land.
  5. Make sure that all employees, regardless of location across the globe, are paid the same rates for the same work and enjoy the same safety protections and that all facilities hew to the highest environmental standards, even if located in a country with relatively low standards.
  6. Do not mandate overtime as a way of life. Getting rid of overtime not only helps the employee, but it helps the business as well.  People who work too much get tired and start making mistakes.  Everyone needs to get away from the office or factory floor to refresh and pursue their own interests.
  7. Do not pay the owner or executives a total compensation package more than 20 times what the average full-time employee makes. That seems like a lot (and by the way, my share of the take is smaller than 20 times the average of my employees), yet the ratio is much higher than that in the United States.  In fact in the United States, the average CEO makes about 350 times what her or his employee makes; it was about 42 times as great as the average worker in 1960.

I am guessing that many of my readers, including most of the business owners in the audience, are going to get angry at me for making these recommendations, especially the last one.  On the surface, it seems to be patently un-American to limit one’s pay, and almost all of these recommendations take money out of the pockets of owners and operators. After all, isn’t it the owner who invests in the business, takes the risk, knows the most, has created the product or service and has to take responsibility for what the organization does? Doesn’t the owner therefore deserve all she or he can get?

But how much is the business owner’s position based on nothing more than luck.  I’ve gone over this line of thinking before. Business owners work hard, but so do most other people.  The business owner, though, has usually had a lot of luck.  Here are some of the luck factors that make some people wealthy and others not so well off:

  • Having a wealthy or prominent family.
  • Being born with a special skill or more intelligence than the average person. No matter how hard a 5’0’’ male athlete works on his game, he’s not going to be able to keep up with the 7-foot Shaquille O’Neal.  No matter how much a person of average intelligence studies, he or she won’t be able to keep up with someone with a photographic memory.
  • Marrying into a wealthy or prominent family.
  • Growing up in a family that has not been devastated by substance abuse, criminality or mental illness.
  • Being in the right place at the right time.
  • Meeting a mentor or someone connected who will take a special interest.
  • Not having an accident or dying young in a war.

In other words, as the philosopher Daniel Robinson points out in Praise and Blame: Moral Realism and Its Application, very successful people typically deserve much less credit for their success than we give them.  Much of their success is based on factors beyond their control.

I’m really just asking the question that many ask all the time when hearing that Alex Rodriguez is making $25 million a year to play baseball or that Lady Gaga made tens of millions from a concert tour.  Does he, or she, deserve it?  And my answer is, yes, but only to a certain point.  After that, it’s a matter of the luck of the draw or the social conditions.

Another argument against my recommendations is that it will raise business costs so much that the owner or executive will have to lay off employees or even close down the business.   My answer to that is that in theory there may be some businesses that could be threatened if they implemented all my recommendations, and in those cases, I suggest that you start by limiting your income and then see what else you can do.  Remember: if your average employee is making $50,000 a year, I’m asking you to limit your total compensation to a maximum of $1.0 million a year.  I think that’s quite enough for anyone, even if the spouse isn’t working.

OpEdge Redux: Day after day, news and entertainment media make unstated assumptions which define the American ideology

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on August 11, 2010

Of the several definitions of ideology in Merriam-Webster’s Unabridged Dictionary, one is relevant to a discussion of communications and propaganda: “a manner or the content of thinking characteristic of an individual, group, or culture.”

What I call the ideological subtext of communications, be it in a TV ad, a news article, a billboard, a website or a movie, are the unspoken “content of thinking” assumed to be true in these media.  We can also call them the basic beliefs and values that the mainstream media share and advocate.  These assumptions color the selection of details of virtually all the media that we experience.  They are hammered into us from childhood to the point of brainwashing.

Over my first year of blogging, I have uncovered eight ideological principles that writers, advertisers and other “media workers” want us to take for granted.  Often asserting one or more of these tenets is the true purpose of a story; for example, all those articles a few months ago advocating that people with money walk away from underwater mortgages were really thinly veiled attempts to uphold several of these core assumptions.

I’m not pretending that these eight core tenets represent the entire American ideology.  These are just the ones that I have discovered time and again in the news and entertainment media and have discussed at length in my blog entries over the past year.  If anyone knows some others, please send them along to me, either as a response to the blog or to the OpEdge page on Facebook.

And just in case it does not go without saying, I want to be clear that I in fact disagree with all of these core tenets, which may be the reason I have identified them so easily.

Eight Core Tenets of the American Ideology:

  1. The market solution is always good, whereas solutions to social problems involving the government are always bad.
  2. The best solution always is acting selfishly in one’s own best interest, whether it’s telling your kids to pay for their own college or walking away from a mortgage when you can make the payments; often called “the politics of selfishness.”
  3. The commercial transaction, that is, buying something, is the basis of all relationships, celebrations, manifestations of love, respect or all other emotional states, and every other emotional component of life.
  4. All values reduce to money—if it makes money it’s good and the only measure of value is how much money you have or earn.
  5. Learning and school are bad and all intellectual activity is to be despised or mocked.
  6. The most admirable people and most worthy of emulation are celebrities, especially movie, Internet and television entertainers.
  7. Suburbs are good and cities are bad.
  8. As a nation, we need the guidance of experts before making virtually all decisions, but only those experts whose advice is always the same: to buy something.

The fact that most of these core tenets have to do with money probably results from the source material: the news and entertainment media which to a large degree have dedicated themselves to selling the products and services of their advertisers and sponsors.

OpEdge Redux: Again a writer uses accurate facts to propose something that isn’t true

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on July 27, 2010.

Over the weekend, Yahoo’s home page linked to an article titled “The Middle Class in America is Radically Shrinking.  Here Are the Stats to Prove It.” on Yahoo! Finance.

The article originally appeared in “The Business Insider,” and was written by Michael Snyder, editor of a website called theeconomiccollapseblog.com, which builds a case for a coming economic meltdown while selling survivalist paraphernalia.  The menu bar selections on Snyder’s website include Gold Coins, Silver Coins, Emergency Food and Water Filters, all leading to portals with links to articles and a display of products for sale, gold at Gold Coins, silver at Silver Coins, et. al.

The article lists 22 statistics that demonstrate that the middle class is shrinking.  While none of the stats cited references, I am fairly confident that all 22 are correct, as I have seen many of these facts before, for example at the Who Rules America website.

Some of Snyder’s stats:

  • 82 percent of S. stocks are in the hands of 1 percent of the people.
  • The top 1% of S. households owns nearly twice as much of America’s corporate wealth as they did just 15 years ago.
  • Only the top 5 percent of S. households have earned additional income to match the rise in housing costs since 1975.

All well and good, until we come to Snyder’s conclusion, which is to blame the growing inequities in wealth in the United States on globalization and free trade.  For example, Snyder writes that “It turns out that they didn’t tell us that the ’global economy’ would mean that middle class American workers would eventually have to directly compete for jobs with people on the other side of the world where there is no minimum wage and very few regulations. The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough.”

There’s one big problem, though: other Western-style industrialized nations have not seen the same growing inequality.  The economies in Germany, France and the other EU democracies are saddled with the same high labor costs and safety regulations, yet there has not been the same pulling apart of incomes, not the same gutting of the middle classes, not the same transfer of wealth upwards that we have seen over the past 30 years in the United States.  Even Japan, which has suffered through two decades of stagflation, still has less wealth concentrated at the top than the United States does.

Why is that?

Unlike these other democracies, the United States has been on an active program to redistribute wealth upwards over the past 30 years.  I’ve written about this trend before, but here are some examples of actions that our nation has taken that move money upwards:

  • A series of tax cuts, the most substantial of which being those of Bush II, have significantly decreased what the wealthy pay while giving only token cuts to the middle class and poor.
  • The outsourcing of government functions to private sector companies, whose executives tend to make more money than public-sector executives and whose lower level employees tend to make less money than public workers.
  • The gutting of our safety net for the poor.
  • The uptick in anti-union activity, such as the hammering of the air traffic controllers union, the reshaping of the National Labor Relations Board, the charter school movement (which seeks to substitute low-paid nonunion teachers for higher-paid unionized ones), and the current war on the salaries of public sector employees. Remember that unionization creates middle class jobs, especially for blue and pink collar workers.

None of these things have happened in Japan or Western Europe.  Looking at the pay of CEOs you can see clearly why there is a greater inequality of wealth in the United States than in any other industrialized nation.  These particular numbers come from a PBS special of a few years:

Nation CEO Pay Compared To Average Worker
Japan 11 times as great
Germany 12  “              “
France 15 “              “
Italy 20  “              “
Canada 20  “              “
Britain 22  “              “
United States 475!!  “          “

By the way, in 1960, the average CEO in the United States made a mere 45 times what the average worker did.

All of these other nations are among the wealthiest in the world.  All have willingly globalized their economies.  All pay higher wages and have higher safety standards than third-world competitors.  But it is only in the United States that there has been a significant redistribution of wealth upwards from the middle class and the poor.

Snyder got his facts right about the U.S. becoming a nation of rich and poor, but his explanation that globalization is the sole cause does not hold water.

FYI, the first time I wrote about the U.S. becoming a nation of rich and poor was in five-part TV news miniseries called “To Have and Have Not,” which I did while a television news reporter in 1982 for “Business Today,”  a now-defunct national business news show.

OpEdge Redux: What is missing in the new movie version of Robin Hood other than the original myth and lead character?

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on May 14, 2010.

I won’t be seeing the new Robin Hood until I can get it on Netflix, but people are talking about it now and I do want to get my three cents worth in.  I will refrain from comment on the quality of this new Robin Hood, except to note that for my money, the Errol Flynn version is the greatest adventure film of all time.  But I do want to comment on its historical place, and I mean beyond movies but in the history of myths.

Before anything else, Robin Hood is a myth.

Generations and societies reanimate specific myths when the myth reflects its current ideology and concerns.  Some myths are so powerful that all societies expropriate them, sometimes changing them completely.  The longer a myth is around the more likely it will mutate beyond recognition.

But every myth will have a classic retelling.  For example, the classic retelling of the Trojan War is Homer.  In the variation by Stesichorus of Sicily, the gods secretly transfer Helen to Egypt and send a dream version to Paris at Troy.  But in every version, a woman causes a war.

Let’s enumerate the central elements of the Robin Hood myth:

  • Steals from the rich and gives to the poor
  • Revolt against oppression
  • Loyal to the King, but not to the King’s ministers
  • Involves an interesting group of fighters, each of whom represents a different class in society, and in most retellings, different archetypal caricatures, e.g., the strong man or the man of the cloth who takes to action

Before moving on, I want to note that in one way or another, this enumeration of themes reveals how myths borrow from each other.  These four elements are central to the Chinese classic novel—and my nominee as the greatest novel of all time—Outlaws of the Marsh (also known as The Water Margin, Marsh Chronicles and All Men are Brothers.  In it, there are 108 finely etched Robin, Little John and Friar Tuck type characters.  Under their charismatic leader, Song Jiang, this ragtag gang remains loyal always to the Emperor while waging ruthless (and brilliant) war against his armies, which are controlled by corrupt and oppressing ministers.  Remember that Robin Hood and his men never waiver in their loyalty to King Richard the Lion Hearted.  The myths of Song Jiang and his bandits and of Robin Hood and his merry men emerged roughly around the same time, 1,000-1,400 of the common era.

Now some might say that another element of the Robin Hood myth (again shared with the myth of the Chinese outlaws of the marsh) are the episodes that define its episodic quality—it is told as a series of “set pieces,” each one elaborating a different lesson or personality: Robin meets the Friar; Robin meets Little John; Robin wins the archery competition in disguise; Robin feeds the poor; Robin demonstrates allegiance to the King.  Another aside: demonstration of allegiance to the King is what makes the story palatable to the ruling elites: it’s not the system that’s corrupt, just a couple of bad apples.

I’m not sure if these set pieces are inherent to the myth or not.  What after all do we remember about Oedipus except that he killed his father and slept with his mother? What do we remember about Prometheus or Sisyphus other than their punishments?  Over time, most myths lose the messy details of the first or classic tellings and reduce, like a fine sauce, to one or a few symbolic themes.  The fact that any given retelling of Robin Hood does not hew to the episodes of the classic Errol Flynn version doesn’t  mean that the creators are not being true to the myth.

But it does do a great violence to the original myth by turning Robin Hood from proto-socialist to libertarian as the current Russell Crowe version does according to virtually every review (New York Times and Pittsburgh Post-Gazette reviews).  It makes you wonder why they bother to deface the Robin Hood myth instead of selecting another myth more in keeping with the ideology of the creators and financial backers?  Or why not create a brand new story of a rag-tag group of citizens rebelling against steep taxation?

I think the answer is in the commercial need to keep cranking out new narrative art that can serve as a platform for selling a multitude of ancillary products.  The economics of the entertainment system return more to investors through creating a new Robin Hood—even one in which the character does not resemble the myth—than in rereleasing the Errol Flynn version.

The myth machine in our post-Industrial leisure society is voracious and takes everything, but remakes it into its own image.  The myth is sent through the Hollywood homogenization machine which involves:

  • Updating the ideology, which in this case Reaganizing it—the demons are not corrupt officials of the King who steal from the poor but an unfair taxation system
  • Expanding the market by using techniques of other genres, e.g., adding a strong woman warrior
  • Showing more explicit violence
  • Creating sequences that resemble video games.

The reviews tell us that the new version of Robin Hood has gone through this homogenization process.  The result of course is that the details of all these contemporary sci fi and adventure movies tend to resemble each other, just as the menus at Outback, Damon’s, Chili’s and other casual upscale dining chains tend to look alike despite the fact that one is vaguely Australian in its visual presentation, one Mexican, one “classic ribs,” etc.  The brand is nothing more than a name that conjures weak associations with myths that people associate with one sentence or one theme, or in the case of the restaurants, an ethnic cuisine.

OpEdge Redux: In Stouffer’s post-modern America, you don’t eat because you’re hungry, but to have a relationship with your spouse

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on April 8, 2010.

My entry into frozen food giant Stouffer’s “Let’s Fix Dinner” marketing campaign came via a two-page, full-color ad in  AARP Magazine, the bimonthly slick lifestyle magazine of the American Association of Retired People, which claims to have the largest circulation of any magazine in the entire world.  So before taking a look at why “Let’s Fix Dinner” is a  prime example of the commercialization of relationships in contemporary society, I want to first describe the ad, which is the sizzle to the sizzle, that is, the whistle-buzzer that makes us notice the twisted messaging that is supposed to entice us to buy the product.

The right page of this two-page ad is a sexy pose of an overweight couple in their 40s, fully dressed in front of an abstract aquamarine background, but looking like they’re about to take off their clothes and do it, except she’s wearing an oven mitt.  The “VH1 pop-up video” style headline is “Are oven mitts the key to a successful relationship?” followed by a smaller headline in another typeface and different pop-up balloon, “Dinner is a great time for couples to reconnect, and catch up with each other face to face.”  At the bottom of the page is a short paragraph that starts “Amazing the difference a real meal can make,” then proceeds to sell Stouffer’s frozen “Mac & Cheese.”  The most striking thing about the ad is the carnality in the expressions of these two truly chunky people.

In the left hand ad, Stouffer’s takes a more conventional approach to advertising prepared food:  It’s a very copy-heavy ad with a photo in the top third of another middle-aged couple—very fit, light-skinned African-Americans—in the kitchen embracing while she handles pair of tongs.  The rest of the ad is brimming with words, including four paragraphs about the four steps to connecting with your partner.  Here are the headlines for each step:

  1. Slow down to reconnect
  2. Make conversation
  3. Keep it simple, sweetheart
  4. Join the Stouffer’s challenge

“Keep it simple,” of course, means buy Stouffer’s “solutions for delicious, nutritious meals without the fuss.”  The challenge is to make a personal commitment to have dinner with your spouse more often.  For help in meeting this commitment, Stouffer’s sends you to www.letsfixdinner.com.  This left-side full-page ad also crowds in small photos of the frozen lasagna and the ever-popular, ever-chic macaroni & cheese.  As the ad says, “Add a little candlelight and you’ve got a romantic meal for two.”

While the two-page ad focuses on the romantic needs of the empty-nester, the website really is for families with children.  It is a very infotaining website, i.e., it mixes information and entertainment in a light-hearted, happy kind of way.  Among the whistles and buzzers are pages of factoids; features on real families in a kind of “reality” webcasting; a survey to take; and of course product information.  There is also a page to sign-up for the Stouffer’s “Let’s Fix Dinner” Challenge.  Once you’re signed up, you get points and entries into a sweepstakes every time you record another dinner that the entire family had together.  Last time I was on the website, it stated on the homepage that people in the challenge have reported making 98,974 family dinners.

The home page is very easy on the eyes:  the centerpiece is a rotating wide-screen box that consists of a happy image of a family or family member and three pop-up balloons, in which there are three pieces of highly structured copy, as we will see in this example:

  • Balloon #1/A provocative statement: “Can placemats keep your kids off drugs?”
  • Balloon #2/A factoid: “Studies show that teens in families that have dinner together five times a week are 45% less likely to drink and 66% less likely to take drugs.”
  • Balloon #3/A squib of real-life conversation from one of the “real” families featured on the website: “‘Okay, I’m resolving to clear all my stuff off the dining room table so we can actually use it!’ Sarah, San Diego, CA”

There are five of these billboards that rotate onto the home page, one after the other. Four of them focus on families with children.  The empty nester one features a photo of the chubby but horny couple from the AARP Magazine ad.

Stouffer’s and its advertising mavens and mavessess put a lot of work into creating a marketing campaign and website in which every detail down to the last factoid and image focuses on making the message.

And what’s the message?  That Stouffer’s frozen dinners are delicious? No.

That Stouffer’s meals are nutritious? No.

That these food products can contribute to a healthy weight-loss program? No.

That Stouffer’s gives you a way to feed a family cheaply? Again, no.

That Stouffer’s is a fast way to chow down? Not exactly.

No, in fact, the central message is not about food at all.  It’s about the benefits of the family eating dinner together (something that my always busy family did about six nights a week, both when I was a child and a father).  The way that Stouffer’s facilitates this togetherness is pretty much unexplained.  It’s taken for granted that the post-modern 21st century consumer knows the product-related benefits of frozen dinners, (which in the old days used to be called TV dinners because they were used to bring the family together for the Ed Sullivan  and Dinah Shore shows).

Once again, the U.S. people face an urgent social problem, or in this case a knot of related social problems that include the transmission of basic middle class values, school performance, teenaged substance abuse and conjugal sex.  And once again, U.S. industry and commerce come up with an answer.

And it’s always the same answer: Buy something.

Beneath Stouffer’s sophisticated attempt to attach the values of family life and interfamilial relationships to its frozen dinners is the basic ideological subtext that a commercial transaction will solve your problem, whatever it is.  And it’s so simple!  You don’t have to spend any time together chopping meat or sautéing vegetables.  No need to even boil water.  Just pop it in the microwave and serve, with candles or hip-hop music or maybe both.

And therein lies the significance of featuring macaroni and cheese so prominently.  Mac & cheese represents the epitome of comfort food that makes us feel nice and warm inside about family life.  It is also about the easiest meal there is to make from scratch.   But it does require boiling water, chopping cheese and measuring out some milk.  And those things can be great distractions when you’re trying to work on a family relationship.  But Stouffer’s makes it even easier than making mac & cheese from scratch.  All you do is pop it in the microwave.  And now you’ve got food preparation out of the way, that’s the hard part.  The rest of building strong family relationships will be easy, because you’ve done all the hard work already – you’ve bought something.

OpEdge Redux: The ideological subtext of just accepting that unregulated market forces rule the textbook publishing industry

While OpEdge is on a two-week hiatus, we are running some of the more evergreen columns from past years. This blog entry originally appeared on March 19, 2010.

Most of the first round of hand-ringing about the Texas Board of Education’s decision to infuse inaccuracies in social science textbooks is over.  I’ve noticed a very interesting fact about the comments in the main stream news media.  Here is a sampling of what four mainstream and four regional media said about the Texas school board.  Most but not all are against the school board’s reckless pushing of one point-of-view, but for or against, they all make one assumption.

First the sample stories:

  • Washington Post reports historians hate the changes.
  • Wall Street Journal has an opinion piece by Thomas Frank that looks on the school board’s actions as a much needed anodyne to liberalism.
  • The New York Times bemoans the decision of the Texas School Board to introduce so many distortions into the study of history.
  • The Economist cheerfully reviews what happened in a half-satirical tone, ending with a note that even Texas Republicans are “growing weary of the board’s antics.”
  • Kansas City Star columnist also bemoans the decision.
  • Washington Monthly reporter gives a good history of what happened in Texas
  • Columnist for the Toledo Blade likes the move to reconsider standards but is concerned that the Texas curriculum was “deliberately dumbed down by hard-core ideologues tweaking textbooks to indoctrinate instead of inform.”

The assumption all these opinion-makers take for granted is that the textbook industry will bend over and say “yes sir” to Texas.  The underlying ideological subtext is unregulated free marketplace in which it is natural and appropriate for there always to be a seller for the buyer.

Let’s take a look at that assumption: When a corporation or individual wants an attorney to help in creating a fraudulent business structure or covering up a crime, don’t we assume that virtually all lawyers will turn down the work?  What about when a client asks a PR agency to knowingly lie?  My agency would turn the work down and so would most agencies I know, which is the expectation stated in the industry’s ethical standards.  Accountants asked to fudge the numbers? An architect asked to cut costs by substituting unsafe materials?  A food store asked to sell unsafe food?  All against ethical standards of the industry, and mostly against the law.

Now I know that corrupt people and organizations can always find corrupt professionals to do their bidding, unethical and/or illegal as it might be.

But the textbook industry is much smaller.  There are perhaps a handful of publishers, whereas there are millions of lawyers, so many that you could even find one or two who would write that torture is legal.

Additionally, textbooks are typically written by experts in the field: historians, sociologists, psychologists, anthropologists.  These professionals all have standards of ethics.  If the small number of textbook publishers hewed to these standards of expertise in the writing and revision of textbooks, then a body of elected no-nothings like the Texas Board of Education would not be able to dictate changes that introduce inaccuracies and lies into textbooks.

Companies and industries walk away from “bad business” all the time.  Certainly, if the textbook industry walked away from Texas, someone would fill the void.  But that would take time and a greater outlay of resources by Texas, as new books would need to be written.  The resulting impact on the rest of the country would be smaller, because the new or rogue publisher wouldn’t have the contacts and database required to sell to the thousands of school districts across our 50 states.  I understand that the voters of Texas hate new taxes more than they like right-wing myths and homilies, so facing the need to recreate the industry in its own image, there might suddenly be a lot of pressure on the Texas Board of Education to reconsider its lunacy.

But did one of these columnists chide the textbook publishers for rolling over and playing dead?  Did one of these columnists advocate that publishers close ranks against Texas?  Or did any of them suggest publishers’ create a voluntary set of standards that prevent any from publishing what are known to be historical inaccuracies in textbooks for public schools?  Did any of them call for associations of historians take action?  Did any even recommend that school districts outside Texas refuse to buy Texas-poisoned texts? No, no, no, no and no.

No, because to do so would be to question, even if it’s only in a small way, the total dominance of the free market ideology in all thinking about all social issues.  The assumption that everything is for sale and that the market dictates all decisions by economic entities is so engrained in the ideologies of those who write for the mainstream media that the idea of exercising a little ethical self-control would never occur to any of them.