Sunday, June 23, 2013

The Decline of American Society and the Revolt of the Global Middle Class


As the parent of three adult children it is interesting that none of my children expect to do as well financially or to have the life style that my late parents achieved.  Admittedly, my parents died as millionaires, but neither I nor my siblings can be assured of the same financial success in our lifetimes and for our children the deck is stacked even more decidedly in favor of the truly wealthy as social mobility in America falls behind that of Europe and wealth disparities exceed those of former banana republics.  It is little wonder why the Republican Party is faring poorly with younger voters.   But the phenomenon is not limited to  America as we see unrest in Brazil and Turkey and other nations as well.  Sadly, the status quo favors the few and the rest of us are increasingly expected to be satisfied with the table scraps that are left over.  A piece in The Guardian looks at what has happened to America.  Here are highlights:

In or around 1978, America's character changed. For almost half a century, the United States had been a relatively egalitarian, secure, middle-class democracy, with structures in place that supported the aspirations of ordinary people. You might call it the period of the Roosevelt Republic. Wars, strikes, racial tensions and youth rebellion all roiled national life, but a basic deal among Americans still held, in belief if not always in fact: work hard, follow the rules, educate your children, and you will be rewarded, not just with a decent life and the prospect of a better one for your kids, but with recognition from society, a place at the table.

This unwritten contract came with a series of riders and clauses that left large numbers of Americans – black people and other minorities, women, gay people – out, or only halfway in. But the country had the tools to correct its own flaws, and it used them: healthy democratic institutions such as Congress, courts, churches, schools, news organizations, business-labour partnerships.

The large currents of the past generation – deindustrialisation, the flattening of average wages, the financialisation of the economy, income inequality, the growth of information technology, the flood of money into Washington, the rise of the political right – all had their origins in the late 70s.  ..

The institutions that had been the foundation of middle-class democracy, from public schools and secure jobs to flourishing newspapers and functioning legislatures, were set on the course of a long decline. It as a period that I call the Unwinding.

Once American pre-eminence was challenged by international competitors, and the economy hit rough seas in the 70s, and the sense of existential threat from abroad subsided, the deal was off. Globalisation, technology and immigration hurried the Unwinding along, as inexorable as winds and tides. It is sentimental at best, if not ahistorical, to imagine that the social contract could ever have survived – like wanting to hang on to a world of nuclear families and manual typewriters.

But there was nothing inevitable about the aftermath – an unmanaged free-for-all in which unemployed workers were left to fend for themselves, while corporate raiders bought the idle hulks of the mills with debt in the form of junk bonds and stripped out the remaining value. It may have been inevitable that the constraints imposed on US banks by the Glass-Steagall Act of 1933 would start to slip off in the era of global finance. But it was a political choice on the part of Congress and President Bill Clinton to deregulate Wall Street so thoroughly that nothing stood between the big banks and the destruction of the economy.

Much has been written about the effects of globalisation during the past generation. Much less has been said about the change in social norms that accompanied it. American elites took the vast transformation of the economy as a signal to rewrite the rules that used to govern their behaviour: a senator only resorting to the filibuster on rare occasions; a CEO limiting his salary to only 40 times what his average employees made instead of 800 times; a giant corporation paying its share of taxes instead of inventing creative ways to pay next to zero. There will always be isolated lawbreakers in high places; what destroys morale below is the systematic corner-cutting, the rule-bending, the self-dealing.
It is little wonder that many younger voters have little faith in America and the future.  But the phenomenon is not limited to America as noted in a piece in The Atlantic which notes that what has happened in America is happening elsewhere - e.g., Brazil and Turkey.  Here are excerpts from that article:

From Turkey to Brazil to Iran the global middle class is awakening politically. The size, focus and scope of protests vary, but this is not unfolding chaos -- it is nascent democracy. Citizens are demanding basic political rights, accountable governments and a fairer share of resources.  

Overall, though, Americans jaded about world affairs should see the activism as positive. The protesters are performing the same role as middle classes have in developed nations. As their standard of living rises, so do their expectations of government.

The political dynamic in each country is different, of course. In Turkey, the protests are not the equivalent of the Arab Spring demonstrations that toppled governments across the Middle East. Nor are they simply a pitched battle between religious conservatives and secular liberals. Instead, they are deeply Turkish -- and hugely important.

Brazil presents a different dynamic.The ruling Workers' Party is left-leaning and its economic reforms have helped the poor and middle class. But now a souring economy, corruption scandals and $12 billion in government spending on 2014 World Cup stadiums has sparked one million people to take to the streets.

Marcelo Ridenti, a leading Brazilian sociologist, said reduced inequality and increased education have raised expectations. The number of university students in Brazil, for example, doubled from 2000 to 2011.

"This generates huge changes in society, including changes in expectations among young people," he told the New York Times . "They expect to get not only jobs, but good jobs."  

Pro-reform and urban Iranians frustrated with the country's weak economy, isolation and conservative monopoly on power apparently handed Rohani the presidency. Rohani may prove to be more conservative than expected, but his victory prompted thousands of Iranians to take to the streets.

"I am hopeful about the future," Hoda, a 26-year-old who asked that her last name not be used, told Reuters. "Hopeful that we will have more social freedoms, more stability in Iran, better relations with other countries and hopefully a much better economy.".

[O]bservers see parallels between Brazil's protests, India's anti-corruption movement , austerity protests in Europe, the U.S. Occupy Movement and similar demonstrations in Israel. 

First, the explosive spread of social media played a role in the movements. Networks of like-minded people were able to immediately communicate with one another -- and potential recruits. Some online information has been false orrestricted, but technological change has unquestionably sped up the pace of political organizing.

Second, all three movements are demanding basic individual rights and accountable government. They want non-corrupt leaders who respect their right to protest, gather and speak freely. From minority rights in Turkey, to fair elections in Iran, to better policing, healthcare and transit in Brazil, protesters want improved governance. 

That's right. These overseas movements want many many Americans want. especially an accountable government.  Barack Obama and Congressional Republicans, are you listening??  History has a lesson: when the majority of citizens are finding it harder and harder to survive, their interest in supporting the current political structure declines and governments fall, be it in ancient Rome or elsewhere.rest in supporting the

No comments: