The Making of the American 99%

nickanddimed  

By Barbara Ehrenreich and John Ehrenreich 

This post originally appeared at TomDispatch/The Nation.   

***

Class happens when some men, as a result of common experiences (inherited or shared), feel and articulate the identity of their interests as between themselves, and as against other men whose interests are different from (and usually opposed to) theirs.

-- E.P. Thompson, The Making of the English Working Class 

The “other men” (and of course women) in the current American class alignment are those in the top 1% of the wealth distribution -- the bankers, hedge-fund managers, and CEOs targeted by the Occupy Wall Street movement. They have been around for a long time in one form or another, but they only began to emerge as a distinct and visible group, informally called the “super-rich,” in recent years.

Extravagant levels of consumption helped draw attention to them: private jets, multiple 50,000 square-foot mansions, $25,000 chocolate desserts embellished with gold dust. But as long as the middle class could still muster the credit for college tuition and occasional home improvements, it seemed churlish to complain. Then came the financial crash of 2007-2008, followed by the Great Recession, and the 1% to whom we had entrusted our pensions, our economy, and our political system stood revealed as a band of feckless, greedy narcissists, and possibly sociopaths.

Still, until a few months ago, the 99% was hardly a group capable of (as Thompson says) articulating “the identity of their interests.” It contained, and still contains, most “ordinary” rich people, along with middle-class professionals, factory workers, truck drivers, and miners, as well as the much poorer people who clean the houses, manicure the fingernails, and maintain the lawns of the affluent.

It was divided not only by these class differences, but most visibly by race and ethnicity -- a division that has actually deepened since 2008. African-Americans and Latinos of all income levels disproportionately lost their homes to foreclosure in 2007 and 2008, and then disproportionately lost their jobs in the wave of layoffs that followed.  On the eve of the Occupy movement, the black middle class had been devastated. In fact, the only political movements to have come out of the 99% before Occupy emerged were the Tea Party movement and, on the other side of the political spectrum, the resistance to restrictions on collective bargaining in Wisconsin.

But Occupy could not have happened if large swaths of the 99% had not begun to discover some common interests, or at least to put aside some of the divisions among themselves. For decades, the most stridently promoted division within the 99% was the one between what the right calls the “liberal elite” -- composed of academics, journalists, media figures, etc. -- and pretty much everyone else.

As Harper’s Magazine columnist Tom Frank has brilliantly explained, the right earned its spurious claim to populism by targeting that “liberal elite,” which supposedly favors reckless government spending that requires oppressive levels of taxes, supports “redistributive” social policies and programs that reduce opportunity for the white middle class, creates ever more regulations (to, for instance, protect the environment) that reduce jobs for the working class, and promotes kinky countercultural innovations like gay marriage. The liberal elite, insisted conservative intellectuals, looked down on “ordinary” middle- and working-class Americans, finding them tasteless and politically incorrect. The “elite” was the enemy, while the super-rich were just like everyone else, only more “focused” and perhaps a bit better connected.

Of course, the “liberal elite” never made any sociological sense. Not all academics or media figures are liberal (Newt Gingrich, George Will, Rupert Murdoch). Many well-educated middle managers and highly trained engineers may favor latte over Red Bull, but they were never targets of the right. And how could trial lawyers be members of the nefarious elite, while their spouses in corporate law firms were not?  

A Greased Chute, Not a Safety Net 

“Liberal elite” was always a political category masquerading as a sociological one. What gave the idea of a liberal elite some traction, though, at least for a while, was that the great majority of us have never knowingly encountered a member of the actual elite, the 1% who are, for the most part, sealed off in their own bubble of private planes, gated communities, and walled estates.

The authority figures most people are likely to encounter in their daily lives are teachers, doctors, social workers, and professors. These groups (along with middle managers and other white-collar corporate employees) occupy a much lower position in the class hierarchy.  They made up what we described in a 1976 essay as the “professional managerial class.” As we wrote at the time, on the basis of our experience of the radical movements of the 1960s and 1970s, there have been real, longstanding resentments between the working-class and middle-class professionals. These resentments, which the populist right cleverly deflected toward “liberals,” contributed significantly to that previous era of rebellion’s failure to build a lasting progressive movement.

As it happened, the idea of the “liberal elite” could not survive the depredations of the 1% in the late 2000s. For one thing, it was summarily eclipsed by the discovery of the actual Wall Street-based elite and their crimes. Compared to them, professionals and managers, no matter how annoying, were pikers. The doctor or school principal might be overbearing, the professor and the social worker might be condescending, but only the 1% took your house away.

There was, as well, another inescapable problem embedded in the right-wing populist strategy: even by 2000, and certainly by 2010, the class of people who might qualify as part of the “liberal elite” was in increasingly bad repair. Public-sector budget cuts and corporate-inspired reorganizations were decimating the ranks of decently paid academics, who were being replaced by adjunct professors working on bare subsistence incomes. Media firms were shrinking their newsrooms and editorial budgets. Law firms had started outsourcing their more routine tasks to India. Hospitals beamed X-rays to cheap foreign radiologists. Funding had dried up for nonprofit ventures in the arts and public service. Hence the iconic figure of the Occupy movement: the college graduate with tens of thousands of dollars in student loan debts and a job paying about $10 a hour, or no job at all.

These trends were in place even before the financial crash hit, but it took the crash and its grim economic aftermath to awaken the 99% to a widespread awareness of shared danger. In 2008, “Joe the Plumber’s” intention to earn a quarter-million dollars a year still had some faint sense of plausibility. A couple of years into the recession, however, sudden downward mobility had become the mainstream American experience, and even some of the most reliably neoliberal media pundits were beginning to announce that something had gone awry with the American dream.

Once-affluent people lost their nest eggs as housing prices dropped off cliffs. Laid-off middle-aged managers and professionals were staggered to find that their age made them repulsive to potential employers. Medical debts plunged middle-class households into bankruptcy. The old conservative dictum -- that it was unwise to criticize (or tax) the rich because you might yourself be one of them someday -- gave way to a new realization that the class you were most likely to migrate into wasn’t the rich, but the poor.

And here was another thing many in the middle class were discovering: the downward plunge into poverty could occur with dizzying speed. One reason the concept of an economic 99% first took root in America rather than, say, Ireland or Spain is that Americans are particularly vulnerable to economic dislocation. We have little in the way of a welfare state to stop a family or an individual in free-fall. Unemployment benefits do not last more than six months or a year, though in a recession they are sometimes extended by Congress. At present, even with such an extension, they reach only about half the jobless. Welfare was all but abolished 15 years ago, and health insurance has traditionally been linked to employment.

In fact, once an American starts to slip downward, a variety of forces kick in to help accelerate the slide. An estimated 60% of American firms now check applicants' credit ratings, and discrimination against the unemployed is widespread enough to have begun to warrant Congressional concern. Even bankruptcy is a prohibitively expensive, often crushingly difficult status to achieve. Failure to pay government-imposed fines or fees can even lead, through a concatenation of unlucky breaks, to an arrest warrant or a criminal record. Where other once-wealthy nations have a safety net, America offers a greased chute, leading down to destitution with alarming speed.

Making Sense of the 99% 

The Occupation encampments that enlivened approximately 1,400 cities this fall provided a vivid template for the 99%’s growing sense of unity. Here were thousands of people -- we may never know the exact numbers -- from all walks of life, living outdoors in the streets and parks, very much as the poorest of the poor have always lived: without electricity, heat, water, or toilets. In the process, they managed to create self-governing communities.

General assembly meetings brought together an unprecedented mix of recent college graduates, young professionals, elderly people, laid-off blue-collar workers, and plenty of the chronically homeless for what were, for the most part, constructive and civil exchanges. What started as a diffuse protest against economic injustice became a vast experiment in class building. The 99%, which might have seemed to be a purely aspirational category just a few months ago, began to will itself into existence.

Can the unity cultivated in the encampments survive as the Occupy movement evolves into a more decentralized phase?  All sorts of class, racial, and cultural divisions persist within that 99%, including distrust between members of the former “liberal elite” and those less privileged. It would be surprising if they didn’t. The life experience of a young lawyer or a social worker is very different from that of a blue-collar worker whose work may rarely allow for biological necessities like meal or bathroom breaks. Drum circles, consensus decision-making, and masks remain exotic to at least the 90%. “Middle class” prejudice against the homeless, fanned by decades of right-wing demonization of the poor, retains much of its grip.

Sometimes these differences led to conflict in Occupy encampments -- for example, over the role of the chronically homeless in Portland or the use of marijuana in Los Angeles -- but amazingly, despite all the official warnings about health and safety threats, there was no “Altamont moment”: no major fires and hardly any violence.  In fact, the encampments engendered almost unthinkable convergences: people from comfortable backgrounds learning about street survival from the homeless, a distinguished professor of political science discussing horizontal versus vertical decision-making with a postal worker, military men in dress uniforms showing up to defend the occupiers from the police.

Class happens, as Thompson said, but it happens most decisively when people are prepared to nourish and build it. If the “99%” is to become more than a stylish meme, if it’s to become a force to change the world, eventually we will undoubtedly have to confront some of the class and racial divisions that lie within it. But we need to do so patiently, respectfully, and always with an eye to the next big action -- the next march, or building occupation, or foreclosure fight, as the situation demands.

Barbara Ehrenreich, TomDispatch regular , is the author of Nickel and Dimed: On (Not) Getting By in America (now in a 10th anniversary edition with a new afterword ). 

John Ehrenreich is p rofessor of psychology at the State University of New York, College at Old Westbury. He wrote The Humanitarian Companion: A Guide for International Aid, Development, and Human Rights Workers .  

This is a joint TomDispatch/Nation article and appears in print at the Nation magazine.

Copyright 2011 Barbara Ehrenreich and John Ehrenreich

Poor Americans

Poverty-grafitti 

The data on the poor in this country announced Tuesday by the Census Bureau was not good, and due to measures already taken by Congress and those likely to come, the outlook doesn’t provide much reason for hope. Stephanie Mencimer at Mother Jones gives some of the “lowlights”:

The overall poverty rate has reached a record high and the number of people living in deep poverty—that is, below 50 percent of the poverty level, or $11,000 for a family of four—is the highest it’s been since 1975. Experts are predicting that things are only going to get worse in the years to come….

Median income has sunk lower than it was almost 15 years ago. The number of people living without health insurance is up slightly. The number of kids under the age of six living in extreme poverty is up to nearly 12 percent. The recession has been especially hard on women and people of color. The extreme poverty rate for women is more than 6 percent, the highest recorded in 22 years, and the poverty rate for black women is up a percentage point from 2009, to more than 25 percent.

In These Times’ David Moberg continues:

But it is especially painful because it follows what many are calling a “lost decade” for the majority of Americans. The median household income peaked in 1999 at $53,252, then dropped in most of the following years, never recovering its pre-recession high. Likewise, even during the recovery of the Bush years, poverty levels crept upwards. The big exception was the very rich, who captured most of the new income generated as productivity of the economy rose and inequality continued to grow.

All this while we learn, as associate editor Margret Aldrich wrote on her Sweet Pursuit blog last week, “Economic equality equals happiness. So suggests a new study to be published in a forthcoming issue of Psychological Science. In order for Americans to be truly blissed out, it finds, we need to close the gap between our wealthiest and poorest citizens.”

Unfortunately we see that’s not happening, leaving The Take Away this morning to ask the discouraging question, “Does America Care About Its Poor?” Though The Take Away left it up to listeners, the answer seems to be, for the most part, no. That said, Moberg at In These Times does point out that “bad as these numbers are, they would have been much worse if many government programs and policies had not been in place,” including unemployment insurance, The Earned Income Tax Credit, food stamps, and the Obama administration’s stimulus programs. (I don’t know how many times economists and others have to point out that the only problem with Obama’s stimulus was that is simply wasn’t big enough before it will be okay to use the word “stimulus” again. But I digress.) Still, “welfare” programs aren’t what they used to be. “Evidence suggests,” writes Jarret Murphy in City Limits, “that today’s needy families are, in large measure, not getting the help to which they are legally entitled. In 1996, for every 100 families that were in poverty, 79 were on welfare. In 2010, the figure was 28, according to the CBPP [Center on Budget and Policy Priorities].” LaDonna Pavetti, the vice president for family income support policy at the CBPP is quoted as saying, “It’s just truly people are not being served. And it’s not because we’ve had this incredible decline in poverty.” Point proven by the recent Census data.

But now the conversation in Washington is switching back to jobs, so everything should be just fine, right? We’ve gotten our priorities straight, so we can figure out how to fix the problem. Not so fast. Writing about the declining middle class in The Atlantic, Don Peck writes that the jobs that are coming down the pike will be low-skill, low-wage jobs, jobs like the ones highlighted a decade ago by Barbara Ehrenreich in Nickel and Dimed and now touted (though not in so many words) by the possible Republican presidential candidate from Texas. In short, jobs that won’t bring people up out of poverty and back into any sort of middle class. “[T]he overall pattern of change in the U.S. labor market suggests,” Peck writes,

that in the next decade or more, a larger proportion of Americans may need to take work in occupations that have historically required little skill and paid low wages. Analysis by David Autor indicates that from 1999 to 2007, low-skill jobs grew substantially as a share of all jobs in the United States. And while the lion’s share of jobs lost during the recession were middle-skill jobs, job growth since then has been tilted steeply toward the bottom of the economy; according to a survey by the National Employment Law Project, three-quarters of American job growth in 2010 came within industries paying, on average, less than $15 an hour. One of the largest challenges that Americans will face in the coming years will be doing what we can to make the jobs that have traditionally been near the bottom of the economy better, more secure, and more fulfilling—in other words, more like middle-class jobs.

Peck’s article offers a number of suggestions about how to regain a middle class and avoid further separation between those at the top and those at the bottom. Unfortunately, nothing so serious as his article seems to be on the table in Washington discussions. And it’s Americans who are paying for it.


Audio from The Take Away with guest Photojouranlist Steve Liss, director of AmericanPoverty.org: 
 

Source: Mother Jones, In These Times, The Take Away, City Limits, The Atlantic 

Image by sylvar, licensed under Creative Commons 




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