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Meritocracy Harms Everyone - The Atlantic
“Escaping the meritocracy trap will not be easy. Elites naturally resist policies that threaten to undermine their advantages. But it is simply not possible to get rich off your own human capital without exploiting yourself and impoverishing your inner life, and meritocrats who hope to have their cake and eat it too deceive themselves. Building a society in which a good education and good jobs are available to a broader swath of people—so that reaching the very highest rungs of the ladder is simply less important—is the only way to ease the strains that now drive the elite to cling to their status.

How can that be done? For one thing, education—whose benefits are concentrated in the extravagantly trained children of rich parents—must become open and inclusive. Private schools and universities should lose their tax-exempt status unless at least half of their students come from families in the bottom two-thirds of the income distribution. And public subsidies should encourage schools to meet this requirement by expanding enrollment.

A parallel policy agenda must reform work, by favoring goods and services produced by workers who do not have elaborate training or fancy degrees. For example, the health-care system should emphasize public health, preventive care, and other measures that can be overseen primarily by nurse practitioners, rather than high-tech treatments that require specialist doctors. The legal system should deploy “legal technicians”—not all of whom would need to have a J.D.—to manage routine matters, such as real-estate transactions, simple wills, and even uncontested divorces. In finance, regulations that limit exotic financial engineering and favor small local and regional banks can shift jobs to mid-skilled workers. And management should embrace practices that distribute control beyond the C-suite, to empower everyone else in the firm.

The main obstacle to overcoming meritocratic inequality is not technical but political. Today’s conditions induce discontent and widespread pessimism, verging on despair. In his book Oligarchy, the political scientist Jeffrey A. Winters surveys eras in human history from the classical period to the 20th century, and documents what becomes of societies that concentrate income and wealth in a narrow elite. In almost every instance, the dismantling of such inequality has been accompanied by societal collapse, such as military defeat (as in the Roman empire) or revolution (as in France and Russia).

Nevertheless, there are grounds for hope. History does present one clear-cut case of an orderly recovery from concentrated inequality: In the 1920s and ’30s, the U.S. answered the Great Depression by adopting the New Deal framework that would eventually build the mid-century middle class. Crucially, government redistribution was not the primary engine of this process. The broadly shared prosperity that this regime established came, mostly, from an economy and a labor market that promoted economic equality over hierarchy—by dramatically expanding access to education, as under the GI Bill, and then placing mid-skilled, middle-class workers at the center of production.

An updated version of these arrangements remains available today; a renewed expansion of education and a renewed emphasis on middle-class jobs can reinforce each other. The elite can reclaim its leisure in exchange for a reduction of income and status that it can easily afford. At the same time, the middle class can regain its income and status and reclaim the center of American life.

Rebuilding a democratic economic order will be difficult. But the benefits that economic democracy brings—to everyone—justify the effort. And the violent collapse that will likely follow from doing nothing leaves us with no good alternative but to try.“
meritocracy  danielmarkovits  neoliberalism  capitalism  society  2019  competition  policy  privateschools  taxexemption  philanthropicindustrialcomplex  inequality  redistribution  governance  taxation  hierarchy  oligarchy  parenting  anxiety 
8 weeks ago by robertogreco
Opinion | The Rich Kid Revolutionaries - The New York Times
"Rather than repeat family myths about the individual effort and smarts of their forebears, those from wealthy backgrounds tell “money stories” that highlight the more complicated origins of their families’ assets. If their fortunes came from the direct dispossession of indigenous peoples, enslavement of African-Americans, production of fossil fuels or obvious exploitation of workers, they often express especially acute guilt. As a woman in her early 20s told me of the wealth generated by her family’s global business: “It’s not just that I get money without working. It’s that other people work to make me money and don’t get nearly as much themselves. I find it to be morally repugnant.”

Even those I have talked with whose family wealth was accumulated through less transparently exploitative means, such as tech or finance, or who have high-paying jobs themselves, question what they really deserve. They see that their access to such jobs, through elite schools and social networks, comes from their class (and usually race) advantages.

They also know that many others work just as hard but reap fewer rewards. One 27-year-old white woman, who stands to inherit several million dollars, told me: “My dad has always been a C.E.O., and it was clear to me that he spent a lot of time at work, but it has never been clear to me that he worked a lot harder than a domestic worker, for example. I will never believe that.” She and others challenge the description of wealth garnered through work as “earned.” In an effort to break the link between money and moral value, they refer to rich people as “high net wealth” rather than “high net worth.”

Immigrants who “make it” are often seen to exemplify the American dream of upward mobility. The children of immigrants I spoke with, though, don’t want their families’ “success stories” to legitimate an unfair system. Andrea Pien, 32, is a Resource Generation member and a daughter of Taiwanese immigrants who accumulated significant wealth in the United States. She spoke of refusing to be “the token that then affirms the capitalist meritocracy myth, the idea that ‘Oh, if Andrea’s family made it, we don’t need affirmative action, or we don’t need reparations.’”

In general, these young people don’t believe they are entitled to so much when others have so little. Many describe feeling guilt or shame about their privilege, which often leads them to hide it. One college student, a woman of color, told me that she worried what other campus activists might think of her. “What a fraud, right?” she said. “To be in those spaces and be acting like these are my struggles, when they’re not.” A white woman who lives on her inheritance of more than $15 million spoke of “deflecting” questions about her occupation, so that others would not know she did not do work for pay.

These progressive children of privilege told me they study the history of racial capitalism in the United States and discuss the ways traditional philanthropy tends to keep powerful people at the top. They also spend a fair amount of time talking about their money. Should they give it all away? Should they get a job, even if they don’t need the income? How much is it ethical to spend on themselves or others? How does money shape friendships and relationships? Resource Generation and its members facilitate these conversations, including one local chapter’s “feelings caucus.”

If you’re thinking, “Cry me a river,” you’re not alone. I have faced skepticism from other sociologists when discussing this research. One colleague asserted that rich young people struggling with their privilege do not have a “legitimate problem.” Others ask: How much do they really give, and what do they really give up? Aren’t these simply self-absorbed millennials taking another opportunity to talk endlessly about themselves?

I understand this view. There is certainly a risk — of which many of them are aware — that all this conversation will just devolve into navel-gazing, an expression of privilege rather than a challenge to it. It is hard for individual action to make a dent in an ironclad social structure. And it is impossible, as they know, to shed the class privilege rooted in education and family socialization, even if they give away every penny.

But like Abigail Disney, these young people are challenging fundamental cultural understandings of who deserves what. And they are breaking the social taboo against talking about money — a taboo that allows radical inequality to fade into the background. This work is critical at a moment when the top 1 percent of families in the United States owns 40 percent of the country’s wealth, and Jeff Bezos takes home more money per minute than the median American worker makes in a year.

As Holly Fetter, a Resource Generation member and Harvard Business School student, told me, “It’s essential that those of us who have access to wealth and want to use it to support progressive social movements speak up, to challenge the narrative that the 1 percent are only interested in accumulation, and invite others to join us.”

Wealthy people are more likely to convince other wealthy people that the system is unfair. And they are the only ones who can describe intimately the ways that wealth may be emotionally corrosive, producing fear, shame and isolation.

Class privilege is like white privilege, in that its beneficiaries receive advantages that are, in fact, unearned. So for them to conclude that their own wealth is undeserved, and therefore immoral, constitutes a powerful critique of the idea of meritocracy.

The fact that the system is immoral, of course, does not make individuals immoral. One person I spoke with, a white 30-year-old who inherited money, said: “It’s not that we’re bad people. It’s just, nobody needs that much money.” But judgments of systems are often taken as judgments of individuals, which leads white people to deny racism and rich people to deny class privilege.

So even the less-public work of talking through emotions, needs and relationships, which can seem self-indulgent, is meaningful. As Ms. Pien put it, “Our feelings are related to the bigger structure.”

One huge cultural support of that structure is secrecy around money, which even rich people don’t talk about.

Wealthy parents fear that if they tell their kids how much they will inherit, the kids won’t develop a strong work ethic. Yahya Alazrak, of Resource Generation, has heard people say, “My dad won’t tell me how much money we have because he’s worried that I’ll become lazy.” One man in his early 30s recounted that his parents had always told him they would pay for his education, but not support him afterward until they revealed that he had a trust worth over $10 million. Parents also have a “scarcity mentality,” Resource Generation members said, which leads them to “hoard” assets to protect against calamity.

Secrecy also often goes hand in hand with limited financial literacy. Women, especially, may not learn about money management growing up, thanks to gendered ideas about financial planning and male control of family assets. Some people I met who will inherit significant amounts of money didn’t know the difference between a stock and a bond.

When wealthy parents do talk about money, they tend to put forth conventional ideas about merit: They or their ancestors worked hard for what they have, scrimped and saved to keep and increase it, and gave some of it away. When their children reject these metrics, parents’ sense of being “good people” is challenged.

When one woman told her immigrant parents she wanted to give their millions away, it was like “a slap in the face” for them, she said, because they felt they had “sacrificed a lot for this money.”

Parents — and the financial professionals who manage family wealth — also tend to follow conventional wisdom about money: Never give away principal. Charitable donations should be offset by tax breaks. And the goal of investing is always to make as much money as possible. As one 33-year-old inheritor said, “No financial adviser ever says, ‘I made less money for the client, but I got them to build affordable housing.’”

Talking about how it feels to be rich can help build affordable housing, though. Once the feeling of being a “bad person” is replaced by “good person in a bad structure,” these young people move into redistributive action. Many talked about asserting control over their money, pursuing socially responsible investments (sometimes for much lower returns) and increasing their own or their families’ giving, especially to social-justice organizations. And eventually — like the people I have quoted by name here — they take a public stand.

Finally, they imagine an alternative future, based on a different idea of what people deserve. Ms. Pien, for example, wants to be “invested in collective good, so we can all have the basics that we need and a little more.” In her vision, this “actually makes everyone more secure and fulfilled and joyful, rather than us hiding behind our mountains of money.”"
abigaildisney  wealth  inequality  activism  legacy  2019  rachelsherman  affluence  security  disney  merit  meritocracy  inheritance  privilege  socialjustice  justice  redistribution  morality  ethics  upwardmobility  immigrants  capitalism  socialism  fulfillment  joy  charity  shame  guilt  charitableindustrialcomplex  philanthropicindustrialcomplex  philanthropy  power  hierarchy  secrecy  hoarding  scarcity  abundance  money  relationships  isolation  class 
may 2019 by robertogreco
The Philosophy of Poverty?: My Opening Statement - Econlib
To recap: I’ve offered no absolute objection to redistribution.  Instead, I’ve pointed to four moral hurdles to clear before we even consider it.  If we take these hurdles seriously, maybe you could salvage a tiny welfare state for indigent kids, the severely handicapped, refugees, and so on.  Before you make even this small exception, though, consider this: When someone has made awful decisions in the past, ironclad rules are often best even though a judicious decision-maker would make minor exceptions.  Given how badly all existing welfare states deviate from defensible moral principles, there’s a strong argument for keeping government out of poverty alleviation altogether.
welfare  redistribution  Caplan  debates 
february 2019 by HispanicPundit
How to Be an Anticapitalist Today
Give up the fantasy of smashing capitalism. Capitalism is not smashable, at least if you really want to construct an emancipatory future. You may personally be able to escape capitalism by moving off the grid and minimizing your involvement with the money economy and the market, but this is hardly an attractive option for most people, especially those with children, and certainly has little potential to foster a broader process of social emancipation.

If you are concerned about the lives of others, in one way or another you have to deal with capitalist structures and institutions. Taming and eroding capitalism are the only viable options. You need to participate both in political movements for taming capitalism through public policies and in socioeconomic projects of eroding capitalism through the expansion of emancipatory forms of economic activity.

We must renew an energetic progressive social democracy that not only neutralizes the harms of capitalism but also facilitates initiatives to build real utopias with the potential to erode the dominance of capitalism.
anti-capitalism  capitalism  politics  livingStandards  inequality  poverty  growth  productivity  environment  crisis  revolution  socialDemocracy  reform  regulation  redistribution  globalisation  neoliberalism  anarchism  utopias  cooperatives  libraries  P2P  wikipedia  UniversalBasicIncome  dctagged  dc:creator=WrightErikOlin 
february 2019 by petej

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