Leaders in the public and private sector in advanced economies, typically highly credentialed, have with very few exceptions shown abject incompetence in dealing with coronavirus as a pathogen and as a wrecker of economies. The US and UK have made particularly sorry showings, but they are not alone.
It’s become fashionable to blame the failure to have enough medical stockpiles and hospital beds and engage in aggressive enough testing and containment measures on capitalism. But as I will describe shortly, even though I am no fan of Anglosphere capitalism, I believe this focus misses the deeper roots of these failures.
After all the country lauded for its response, South Korea, is capitalist. Similarly, reader vlade points out that the Czech Republic has had only 2 coronavirus deaths per million versus 263 for Italy. Among other things, the Czech Republic closed its borders in mid-March and made masks mandatory. Newscasters and public officials wear them to underscore that no one is exempt.
Even though there are plenty of examples of capitalism gone toxic, such as hospitals and Big Pharma sticking doggedly to their price gouging ways or rampant production disruptions due to overly tightly-tuned supply chains, that isn’t an adequate explanation. Government dereliction of duty also abound. In 2006, California’s Governor Arnold Schwarznegger reacted to the avian flu by creating MASH on steroids. From the LA Times:
They were ready to roll whenever disaster struck California: three 200-bed mobile hospitals that could be deployed to the scene of a crisis on flatbed trucks and provide advanced medical care to the injured and sick within 72 hours.
Each hospital would be the size of a football field, with a surgery ward, intensive care unit and X-ray equipment. Medical response teams would also have access to a massive stockpile of emergency supplies: 50 million N95 respirators, 2,400 portable ventilators and kits to set up 21,000 additional patient beds wherever they were needed…
“In light of the pandemic flu risk, it is absolutely a critical investment,” he [Governor Schwarznegger] told a news conference. “I’m not willing to gamble with the people’s safety.”
They were dismantled in 2011 by Governor Jerry Brown as part of post-crisis belt tightening.
The US for decades has as a matter of policy tried to reduce the number of hospital beds, which among other things has led to the shuttering of hospitals, particularly in rural areas. Hero of the day, New York’s Governor Andrew Cuomo pursued this agenda with vigor, as did his predecessor George Pataki.
And even though Trump has made bad decision after bad decision, from eliminating the CDC’s pandemic unit to denying the severity of the crisis and refusing to use government powers to turbo-charge state and local medical responses, people better qualified than he is have also performed disastrously. America’s failure to test early and enough can be laid squarely at the feet of the CDC. As New York Magazine pointed out on March 12:
In a functional system, much of the preparation and messaging would have been undertaken by the CDC. In this case, it chose not to simply adopt the World Health Organization’s COVID-19 test kits — stockpiling them in the millions in the months we had between the first arrival of the coronavirus in China and its widespread appearance here — but to try to develop its own test. Why? It isn’t clear. But they bungled that project, too, failing to produce a reliable test and delaying the start of any comprehensive testing program by a few critical weeks.
The testing shortage is catastrophic: It means that no one knows how bad the outbreak already is, and that we couldn’t take effectively aggressive measures even we wanted to. There are so few tests available, or so little capacity to run them, that they are being rationed for only the most obvious candidates, which practically defeats the purpose. It is not those who are very sick or who have traveled to existing hot spots abroad who are most critical to identify, but those less obvious, gray-area cases — people who may be carrying the disease around without much reason to expect they’re infecting others…Even those who are getting tested have to wait at least several days for results; in Senegal, where the per capita income is less than $3,000, they are getting results in four hours. Yesterday, apparently, the CDC conducted zero tests…
[O]ur distressingly inept response, kept bringing to mind an essay by Umair Haque, first published in 2018 and prompted primarily by the opioid crisis, about the U.S. as the world’s first rich failed state
And the Trump Administration has such difficulty shooting straight that it can’t even manage its priority of preserving the balance sheets of the well off. Its small business bailouts, which are as much about saving those enterprises as preserving their employment, are off to a shaky start. How many small and medium sized ventures can and will maintain payrolls out of available cash when they aren’t sure when and if Federal rescue money will hit their bank accounts?
How did the US, and quite a few other advanced economies, get into such a sorry state that we are lack the operational capacity to engage in effective emergency responses? Look at what the US was able to do in the stone ages of the Great Depression. As Marshall Auerback wrote of the New Deal programs:
The government hired about 60 per cent of the unemployed in public works and conservation projects that
- planted a billion trees,
- saved the whooping crane,
- modernized rural America, and
- built such diverse projects as the Cathedral of Learning in Pittsburgh,
- the Montana state capitol,
- much of the Chicago lakefront,
- New York’s Lincoln Tunnel and Triborough Bridge complex,
- the Tennessee Valley Authority and
- the aircraft carriers Enterprise and Yorktown. It also
- built or renovated 2,500 hospitals,
- 45,000 schools,
- 13,000 parks and playgrounds,
- 7,800 bridges,
- 700,000 miles of roads, and
- a thousand airfields. And it
- employed 50,000 teachers,
- rebuilt the country’s entire rural school system, and
- hired 3,000 writers,
- sculptors and painters,
- including Willem de Kooning and Jackson Pollock.
What are the deeper causes of our contemporary generalized inability to respond to large-scale threats? My top picks are a lack of respect for risk and the rise of symbol manipulation as the dominant means of managing in the private sector and government.
Risk? What Risk?
Thomas Hobbes argued that life apart from society would be “solitary, poor, nasty, brutish and short.” Outside poor countries and communities, advances in science and industrialization have largely proven him right.
It was not long ago, in historical terms, that even aristocrats would lose children to accidents and disease. Only four of Winston Churchill’s six offspring lived to be adults. Comparatively few women now die in childbirth.
But it isn’t just that better hygiene, antibiotics, and vaccines have helped reduce the scourges of youth. They have also reduced the consequences of bad fortune. Fewer soldiers are killed in wars. More are patched up, so fewer come back in coffins and more with prosthetics or PTSD. And those prosthetics, which enable the injured to regain some of their former function, also perversely shield ordinary citizens from the spectacle of lost limbs.1
Similarly, when someone is hit by a car or has a heart attack, as traumatic as the spectacle might be to onlookers, typically an ambulance arrives quickly and the victim is whisked away. Onlookers can tell themselves he’s in good hands and hope for the best.
With the decline in manufacturing, fewer people see or hear of industrial accidents, like the time a salesman in a paper mill in which my father worked stuck his hand in a digester and had his arm ripped off. And many of the victims of hazardous work environments suffer from ongoing exposures, such as to toxic chemicals or repetitive stress injuries, so the danger isn’t evident until it is too late.
Most also are oddly disconnected from the risks they routinely take, like riding in a car (I for one am pretty tense and vigilant when I drive on freeways, despite like to speed as much as most Americans). Perhaps it is due in part to the illusion of being in control while driving.
Similarly, until the coronavirus crisis, even with America’s frayed social safety nets, most people, particularly the comfortably middle class and affluent, took comfort in appearances of normalcy and abundance. Stores are stocked with food. Unlike the oil crisis of the 1970, there’s no worry about getting petrol at the pump. Malls may be emptying out and urban retail vacancies might be increasing, but that’s supposedly due to the march of Amazon, and not anything amiss with the economy. After all, unemployment is at record lows, right?
Those who do go to college in America get a plush experience. No thin mattresses or only adequately kept-up dorms, as in my day. The notion that kids, even of a certain class, have to rough it a bit, earn their way up and become established in their careers and financially, seems to have eroded. Quite a few go from pampered internships to fast-track jobs. In the remote era of my youth, even in the prestigious firms, new hires were subjected to at least a couple of years of grunt work.
So the class of people with steady jobs (which these days are well-placed members of the professional managerial class, certain trades and those who chose low-risk employment with strong civil service protections) have also become somewhat to very removed from the risks endured when most people were subsistence farmers or small town merchants who served them.
Consider this disconnect, based on an Axios-Ipsos survey:
The coronavirus is spreading a dangerous strain of inequality. Better-off Americans are still getting paid and are free to work from home, while the poor are either forced to risk going out to work or lose their jobs.
Generally speaking, the people who are positioned to be least affected by coronavirus are the most rattled. That is due to the gap between expectations and the new reality. Poor people have Bad Shit Happen on a regular basis. Wealthy people expect to be able to insulate themselves from most of it and then have it appear in predictable forms, like cheating spouses and costly divorces, bad investments (still supposedly manageable if you are diversified!), renegade children, and common ailments, like heart attacks and cancer, where the rich better the odds by advantaged access to care.
The super rich are now bunkered, belatedly realizing they can’t set up ICUs at home, and hiring guards to protect themselves from marauding hordes, yet uncertain that their mercenaries won’t turn on them.
The bigger point is that we’ve had a Minksy-like process operating on a society-wide basis: as daily risks have declined, most people have blinded themselves to what risk amounts to and where it might surface in particularly nasty forms. And the more affluent and educated classes, who disproportionately constitute our decision-makers, have generally been the most removed.
The proximity to risk goes a long way to explaining who has responded better. As many have pointed out, the countries that had meaningful experience with SARS2 had a much better idea of what they were up against with the coronavirus and took aggressive measures faster.
But how do you explain South Korea, which had only three cases of SARS and no deaths? It doesn’t appear to have had enough experience with SARS to have learned from it.
A related factor may be that developing economies have fresh memories of what life was like before they became affluent. I can’t speak for South Korea, but when I worked with the Japanese, people still remembered the “starving times” right after World War II. Japan was still a poor country in the 1960s.3 South Korea rose as an economic power after Japan. The Asian Tigers were also knocked back on their heels with the 1997 emerging markets crisis. And of course Seoul is in easy nuke range of North Korea. It’s the only country I ever visited, including Israel, where I went through a metal detector to enter and saw lots of soldiers carrying machine guns in the airport. So they likely have a keen appreciation of how bad bad can be.
The Rise and Rise of the Symbol Economy
Let me start with an observation by Peter Drucker that I read back in the 1980s, but will then redefine his take on “symbol economy,” because I believe the phenomenon has become much more pervasive than he envisioned.
A good recap comes in Fragile Finance: Debt, Speculation and Crisis in the Age of Global Credit by A. Nesvetailova:
The most significant transformation for Drucker was the changed relationship between the symbolic economy of capital movements, exchange rates, and credit flows, and the real economy of the flow of goods and services:
…in the world economy of today, the ‘real economy’ of goods and services and the ‘symbol economy’ of money, credit, and capital are no longer bound tightly to each other; they are indeed, moving further and further apart (1986: 783)
The rise of the financial sphere as the flywheel of the world economy, Drucker noted, is both the most visible and the least understood change of modern capitalism.
What Drucker may not have sufficiently appreciated was money and capital flows are speculative and became more so over time. In their study of 800 years of financial crises, Carmen Reinhart and Ken Rogoff found that high levels of international capital flows were strongly correlated with more frequent and more severe financial crises. Claudio Borio and Petit Disyatat of the Banks of International Settlements found that on the eve of the 2008 crisis, international capital flows were 61 times as large as trade flows, meaning they were only trivially settling real economy transactions.
Now those factoids alone may seem to offer significant support to Drucker’s thesis. But I believe he conceived of it too narrowly. I believe that modeling techniques, above all, spreadsheet-based models, have removed decision-makers from the reality of their decisions. If they can make it work on paper, they believe it will work that way.
When I went to business school and started on Wall Street, financiers and business analysts did their analysis by hand, copying information from documents and performing computations with calculators. It was painful to generate financial forecasts, since one error meant that everything to the right was incorrect and had to be redone.
The effect was that when managers investigated major capital investments and acquisitions, they thought hard about the scenarios they wanted to consider since they could look at only a few. And if a model turned out an unfavorable-looking result, that would be hard to rationalize away, since a lot of energy had been devoted to setting it up.
By contrast, when PCs and Visicalc hit the scene, it suddenly became easy to run lots of forecasts. No one had any big investment in any outcome. And spending so much time playing with financial models would lead most participants to a decision to see the model as real, when it was a menu, not a meal.
When reader speak with well-deserved contempt of MBA managers, the too-common belief that it is possible to run an operation, any operation, by numbers, appears to be a root cause. For over five years, we’ve been running articles from the Health Renewal Blog decrying the rise of “generic managers” in hospital systems (who are typically also spectacularly overpaid) who proceed to grossly mismanage their operations yet still rake in the big bucks.
The UK version of this pathology is more extreme, because it marries managerial overconfidence with a predisposition among British elites to look at people who work hard as “must not be sharp.” But the broad outlines apply here. From Clive, on a Brexit post, when Brexit was the poster child of UK elite incompetence:
What’s struck me most about the UK government’s approach to the practical day-to-day aspects of Brexit is that it is exemplifying a typically British form of managerialism which bedevilles both public sector and private sector organisations. It manifests itself in all manner of guises but the main characteristic is that some “leader” issues impractical, unworkable, unachievable or contradictory instructions (or a “strategy”) to the lower ranks. These lower ranks have been encouraged to adopt the demeanour of yes-men (or yes-women). So you’re not allowed to question the merits of the ask. Everyone keeps quiet and takes the paycheck while waiting for the roof to fall in on them. It’s not like you’re on the breadline, so getting another year or so in isn’t a bad survival attitude. If you make a fuss now, you’ll likely be replaced by someone who, in the leadership’s eyes is a lot more can-do (but is in fact just either more naive or a better huckster).
Best illustrated perhaps by an example — I was asked a day or two ago to resolve an issue I’d reported using “imaginative” solutions. Now, I’ve got a a vivid imagination, but even that would not be able to comply with two mutually contradictory aims at the same time (“don’t incur any costs for doing some work” and “do the work” — where because we’ve outsourced the supply of the services in question, we now get real, unhideable invoices which must be paid).
To the big cheeses, the problem is with the underlings not being sufficiently clever or inventive. The real problem is the dynamic they’ve created and their inability to perceive the changes (in the same way as swinging a wrecking ball is a “change”) they’ve wrought on an organisation.
May, Davies, Fox, the whole lousy lot of ’em are like the pilot in the Airplane movie — they’re pulling on the levers of power only to find they’re not actually connected to anything. Wait until they pull a little harder and the whole bloody thing comes off in their hands.
Americans typically do this sort of thing with a better look: the expectations are usually less obviously implausible, particularly if they might be presented to the wider world. One of the cancers of our society is the belief that any problem can be solved with better PR, another manifestation of symbol economy thinking.
I could elaborate further on how these attitudes have become common, such as the ability of companies to hide bad operating results and them come clean every so often as if it were an extraordinary event, short job tenures promoting “IBG/YBG” opportunism, and the use of lawyers as liability shields (for the execs, not the company, natch).
But it’s not hard to see how it was easy to rationalize away the risks of decisions like globalization. Why say no to what amounted to a transfer from direct factory labor to managers and execs? Offshoring and outsourcing were was sophisticated companies did. Wall Street liked them. Them gave senior employees an excuse to fly abroad on the company dime. So what if the economic case was marginal? So what if the downside could be really bad? What Keynes said about banker herd mentality applies:
A sound banker, alas! is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional and orthodox way along with his fellows, so that no one can really blame him.
It’s not hard to see how a widespread societal disconnect of decision-makers from risk, particularly health-related risks, compounded with management by numbers as opposed to kicking the tires, would combine to produce lax attitude toward operations in general.
I believe a third likely factor is poor governance practices, and those have gotten generally worse as organizations have grown in scale and scope. But there is more country-specific nuance here, and I can discuss only a few well, so adding this to my theory will have to hold for another day. But it isn’t hard to think of some in America. For instance, 40 years ago, there were more midsized companies, with headquarters in secondary cities like Dayton, Ohio. Executives living in and caring about their reputation in their communities served as a check on behavior.
Before you depict me as exaggerating about the change in posture toward risks, I recall reading policy articles in the 1960s where officials wrung their hands about US dependence on strategic materials found only in unstable parts of Africa. That US would never have had China make its soldiers’ uniforms, boots, and serve as the source for 80+ of the active ingredients in its drugs. And America was most decidedly capitalist in the 1960s. So we need to look at how things have changed to explain changes in postures towards risk and notions of what competence amounts to.
1 One of my early memories was seeing a one-legged man using a crutch, with the trouser of his missing leg pinned up. I pointed to him and said something to my parents and was firmly told never to do anything like that again.
2 The US did not learn much from its 33 cases. But the lack of fatalities may have contributed.
3 Japan has had a pretty lame coronavirus response, but that is the result of Japan’s strong and idiosyncratic culture. While Japanese are capable of taking action individually when they are isolated, in group settings, no one wants to act or even worse take responsibility unless their is an accepted or established protocol.
At one point, Thomas Friedman pauses briefly but significantly in The World is Flat, his gushing endorsement for how technology is moving all kinds of American jobs to places like India. He chuckles, a little nervously. “Thank goodness I’m a journalist and not an accountant or a radiologist,” he writes. “There will be no outsourcing for me. . .”
But why not?
* Friedman has failed abysmally as a foreign affairs commentator.
* Accomplished columnists in India who are writing eloquently in English right now could replace him by tomorrow morning.
The New York Times is presumably paying Friedman for his knowledge and experience, but he has been wrong too often and for too long. He is supposedly an expert on the Middle East, but his analysis of the American invasion of Iraq and the calamitous, violent decade since then has been chronically misleading and worthless. Before the 2003 U.S. attack, while the genuine experts counseled diplomacy and caution, he told Americans: “My motto is very simple: give war a chance.” A few months after the invasion, he said that it “was unquestionably worth doing.” Some of his most offensive comments have been immortalized on Youtube, during an outburst in which he used a crude sexual metaphor that insulted people in the Middle East as part of an embarrassing rant that ended: “We hit Iraq because we could. And that’s the real truth.”
Let us set aside the immorality of cheerleading for a war in which nearly 4500 Americans and at least 160,000 (and possibly more) Iraqis have already died. Friedman failed to do his job – which was to accurately explain a far-off, foreign reality to his readers so that they could make informed choices. Among those he let down were: the U.S. voting public; business executives who may have been considering whether to invest in the Mideast; and, quite possibly even young people deciding if they should join the American army.
Friedman is fond of emphasizing that globalization is producing a competitive new world, which has no tolerance for inefficiency. If he worked for one of the big corporations that he likes to glorify, his blunders would have gotten him fired before the Iraq war had dragged into even its second year.
Fortunately, The New York Times would not suffer by losing him. There are newspaper columnists in India who could step right in immediately.
Palagummi Sainath, based in Mumbai, is the rural affairs correspondent for the English-language The Hindu. Sainath, who is one of India’s best known and respected reporters, is an elegant man in his late 50s, with a shock of gray hair. He has spent decades traveling through rural India, giving voice to the poor majority who have been left behind by the economic boom (which Friedman celebrates at every opportunity). Sainath spent part of 2012 in the United States, where he also wrote original columns about America. (His work is readily available on The Hindu’s website.) In today’s flat world, all he needs is his computer terminal, and his columns could be in the hands of his New York Times editors in nanoseconds.
Praful Bidwai, of New Delhi. Bidwai is a bearded bear of a man in his 60s, a tenacious, independent thinker. He spent years at the Times of India, but at present he freelances; thanks to the miracle of globalization, some of his work is instantly accessible at prafulbidwai.org. He writes about a broad range of subjects, including his regular indictments of India for developing nuclear weapons. By criticizing New Delhi’s atomic arsenal, he has shown the courage that a great newspaper columnist must have by speaking out about a subject on which the majority of India probably disagrees with him.
Arundhati Roy, of New Delhi. Americans who only know Roy through her remarkable novel The God of Small Things will be delighted to learn that she uses her mastery of the English language in outspoken essays on world politics, human rights, and war and peace. Some of her most effective articles denounced the 2002 anti-Muslim pogroms in the state of Gujarat, during which the state’s chief elected official stood by in complicit silence as mobs of Hindu extremists murdered 2000 people. (That official, Narendra Modi, is a strong candidate for India’s prime minister in this spring’s’s elections. Friedman’s 635-page-long The World is Flat is full of rejoicing about India’s high-tech industry, but he does not mention Modi and the mass killings once.)
This list of potential replacements for Friedman is only a beginning. Harsh Mander concentrates on hunger in India, which persists despite the much trumpeted economic miracle. Shubhranshu Choudhary spent seven years courageously reporting on the Maoist insurgency in east-central India, an uprising triggered partly by mining companies stealing land from the rural poor.
By replacing Friedman with one of these highly-qualified Indian candidates, The New York Times would not only improve its accuracy. The newspaper could also save money, which Friedman would agree is surely part of its responsibility to its shareholders. Back in 2005, he may have unwittingly composed his own pink slip.
“When the world is flat,” he wrote, “your company both can and must take advantage of the best producers at the lowest prices anywhere they can be found.”
Apple Inc. AAPL -0.51% is manufacturing its new Mac Pro computer in China, according to people familiar with its plans, shifting abroad production of what had been its only major device assembled in the U.S. as trade tensions escalate between the Trump administration and Beijing.
The tech giant has tapped contractor Quanta Computer Inc. to manufacture the $6,000 desktop computer and is ramping up production at a factory near Shanghai, the people said. Quanta’s facility is close to other Apple suppliers across Asia, making it possible for Apple to achieve lower shipping costs than if it shipped components to the U.S.
While the Mac Pro isn’t one of Apple’s bigger products, the decision on where to make it carries outsize significance. Apple’s reliance on factories in China to manufacture its products has been an issue for the company, especially under President Trump, who has pressured Apple and other companies to make more in the U.S.
With the previous Mac Pro model, released in 2013, Apple Chief Executive Tim Cook trumpeted plans to build it in the U.S. Apple invested $100 million in tooling and other equipment for a plant in Austin, Texas, run by contract manufacturer Flex Ltd. Each computer was stamped with “Assembled in the USA.”
.. “Final assembly is only one part of the manufacturing process,” the spokesman said, adding that the company’s investments support two million American jobs. The Mac Pro is Apple’s most powerful computer, used primarily by a small group of professionals working in industries such as film and videogames.
President Trump has pressured Apple to make some iPhones, Macs or iPads in the U.S. since the 2016 presidential campaign. He told The Wall Street Journal in 2017 that Mr. Cook promised to build “three big plants, beautiful plants” in the U.S., a claim Apple declined to comment on at the time. Last year, as his administration imposed tariffs on imports from China, Mr. Trump said the only way to ensure prices for Apple goods don’t increase would be to make products in the U.S.
Apple in the past two years has announced a second campus in Austin, Texas, to handle customer support and operations, and announced more than $500 million in new contractswith U.S. component suppliers that manufacture at home. But Apple hasn’t disclosed any plans to build new manufacturing facilities in the U.S.
Making the new model in China isn’t likely to affect many workers in Texas because demand for the old Mac Pro had fizzled years ago. The Flex workforce had shifted to refurbishing already-made computers, former Flex employees said. The Flex plant continues to make products for HP Inc. and other companies, they said.
American men do have genuine reasons for anxiety. The traditional jobs that many men have filled are disappearing, thanks to automation and outsourcing. The jobs that remain require, in most cases, higher education, which is increasingly difficult for non-affluent families to afford. We should indeed tremble for the future of both men and women in our country unless we address that problem, and related problems of declining health and well-being for working-class men.
.. Three emotions, all infused by fear, play a role in today’s misogyny. The most obvious is anger — at women making demands, speaking up, in general standing in the way of unearned male privilege. Women were once good mothers and good wives, props and supports for male ambition, the idea goes –but here they are asserting themselves in the workplace. Here they are daring to speak about their histories of sexual abuse at the hands of powerful men. It’s okay for women to charge strangers with rape, especially if the rapist is of inferior social status. But to dare to accuse the powerful is to assail a bastion of privilege to which men still cling.
.. Coupled with anger is envy. All over the world, women are seeing unprecedented success in higher education, holding a majority of university seats. In our nation many universities quietly practice affirmative action for males with inferior scores, to achieve a “gender balance” that is sometimes dictated by commitment to male sports teams, given Title IX’s mandate of proportional funding.
.. But men still feel that women are taking “their” places in college classes, in professional schools.
.. Envy, propelled by fear, can be even more toxic than anger, because it involves the thought that other people enjoy the good things of life which the envier can’t hope to attain through hard work and emulation. Envy is the emotion of Aaron Burr in Lin-Manuel Miranda’s “Hamilton”
.. And then, beneath the hysteria, lurks a more primitive emotion: disgust at women’s animal bodies.
.. In the United States, we observe this dynamic in racism, in homophobia and even in revulsion toward the bodies of people who are aging. But in every culture male disgust targets women, as emblems of bodily nature, symbolic animals by contrast to males, almost angels with pure minds.
.. Disgust for women’s bodily fluids is fully compatible with sexual desire. Indeed, it often singles out women seen as promiscuous, the repositories of many men’s fluids.
.. as with the apparent defamation of Renate Dolphin in Kavanaugh’s infamous yearbook, men often crow with pride over intercourse with a woman imagined as sluttish and at the same time defame and marginalize her.
.. Disgust is often more deeply buried than envy and anger, but it compounds and intensifies the other negative emotions.
.. Our president seems to be especially gripped by disgust: for women’s menstrual fluids, their bathroom breaks, the blood imagined streaming from their surgical incisions, even their flesh, if they are more than stick-thin.
Today, the profitable H.V.A.C. company, owned by United Technologies Corporation—a federal contractor whose climate, controls, and security division, of which Carrier is a part, reported three billion dollars in operating profit in 2016—is letting go of more than two hundred employees in its second and final wave of Indiana-based layoffs, which began last July.
In total, the company will be laying off more than five hundred employees as it moves manufacturing jobs to Monterrey, Mexico.
.. Donald Trump, who made saving Carrier’s “big, beautiful plant” one of his most repeated campaign promises
It was part of his broader preëlection claim that “A Trump Administration will stop the jobs from leaving America.”
.. “We took him serious,” Elliott said, tearing up as she sat in a booth at Sully’s, “because he did seem to be an entrepreneur. He knew this offshoring shit was gonna go down, and ‘I’m not gonna stand for it’ is the way he made it sound. Hillary never said a word to us or about us. Obama never flew Air Force One to our facility, like he did to one in Elkhart, Indiana, when he was campaigning. I thought, This man is not gonna be anybody’s puppet.”
.. Hundreds of Carrier jobs will remain in Indianapolis, but Elliott and others argue that those jobs—many of them office-based, not on the manufacturing line—were never in jeopardy.
.. . “Just don’t bullshit us. We never thought the office personnel was going anywhere, anyway. They’re not making units. We are. We’re the ones that made the $9.7 billion that they collected.” She went on, “We can understand companies having to go overseas if they’re losing money. We get it. But Carrier is the top A.C.- and furnace-making company in the nation, getting money hand over fist.”
.. It’s not just that I’m a lost paycheck away from homeless now. I will never find a job like this one again.”
.. “I voted for Trump,” he told me. “Financially, I thought he’s a genius. I said, ‘Well, America’s in debt; maybe he can do something and turn the economy around.’ Obviously, it’s not looking that way. Mr. Trump didn’t do his research and made himself look silly in front of the nation when these layoffs and early retirements began.”
.. He mentioned Senator Bernie Sanders .. “In retrospect, I would have voted for him if I could do it again.”
.. After that, his most likely path is to go back to school, he said, “for welding
.. The most pointed denunciation came from Chuck Jones, the former president of United Steel Workers Local 1999, in Indianapolis, who disputed Trump’s initial characterization of the Carrier deal and was targeted by Trump on Twitter as a result. “Trump is a liar and an idiot,” Jones told the crowd, adding, “He’s a con man, pure and simple, who sold us a bag of shit.”
the fact that a worker’s wealth and well-being is much more dependent upon her employer than the employer is on a given worker tilts things in the employer’s favor.
.. Two trends demonstrate the decline of labor and the ascent of business. Since 1979, after-tax corporate profits as a share of gross domestic product have grown by 22.8 percent, while the share of nonfarm business sector income going to labor has dropped by 10.3 percent.
The decline in worker bargaining power in the United States is the cumulative effect of numerous small and large changes over recent decades reaching into almost every area of law and policy. This combines with a decline in the enforcement of existing laws that could protect workers’ bargaining power — laws protecting unions, laws against wage theft, nondiscrimination laws, and more.
.. Among these changes is the requirement that employees sign what are known as “noncompete” and “no-raid” agreements, both of which restrict workers’ ability to extract pay hikes by threatening to take similar jobs at competing companies.
.. “less than half of workers who have non-competes also report possessing trade secrets.”
When entry-level workers at fast food restaurants are asked to sign two-year non-competes, it becomes less plausible that trade secrets are always the primary motivation for such agreements.
.. The treasury report estimated that 30 million American workers have signed noncompete agreements.
.. 94 percent of the net employment growth in the U.S. economy from 2005 to 2015 appears to have occurred in alternative work arrangements.
The growing emphasis on “shareholder value” has provided additional justification for all of these anti-worker developments.
.. “the shareholder value movement starting in the late 1980s and now institutionalized through industry analysts” was crucially important in the devaluation of employees:
.. Accounting in business is mainly about costs. Finance people hate fixed costs because of the challenges they raise to share price valuation when there is uncertainty, and the biggest fixed costs are labor. Simply moving the same labor costs from employees to outside staffing companies moves it from one part of the accounting ledger to another and makes analysts happier.
This mentality, in turn, encourages “the use of temps and contractors” to fill high-wage jobs because “that way the employer doesn’t have to raise wages for all their employees.”
.. Companies could outsource work to areas with cheaper labor and less of a union presence. This both weakened the union and ramped up competitive pressure on the companies that were unionized. The result was fewer unions.
.. In 2017, 6.5 percent of the private sector work force was unionized, down from 35 percent in 1955.
.. The contemporary weakness of organized labor and the threatened status of employees has roots in the breakdown in the 1970s of the postwar capital-labor accord — what A.H. Raskin, the legendary labor reporter for The Times, called a “live-and-let-live relationship” that held sway for 30 years.
.. First, they would alter antitrust enforcement to require consideration of the likely effect of mergers on concentration in the labor market, in order to prevent “too high a risk of wage suppression.”
.. Second, Krueger and Posner would support legislation making noncompete agreements “uniformly unenforceable and banned if they govern a worker who earns less than the median wage in her state.”
.. ban no-poaching arrangements altogether:
We propose a per se rule against no-poaching agreements regardless of whether they are used outside or within franchises. In other words, no-poaching agreements would be considered illegal regardless of the circumstances of their use.
.. In the 2016 election, Trump profited from the conviction of rural and working-class voters that they were on a downward trajectory. If anything, Trump appears to be gambling that letting those voters’ lives continue to languish will work to his advantage in 2020.
.. His administration has turned the executive branch, the federal courts and the regulatory agencies into the sworn enemy of workers, organized and unorganized. Trump is indisputably indifferent to the plight of anyone in the bottom half of the income distribution:
- look at his appointments,
- look at his record in office,
- look back at his business career and
- look at the man himself.
Ford’s production of its Focus compact for the U.S. market is now headed for China—not Mexico—as the car maker seeks cost savings globally even as the Trump administration works to keep automotive jobs at home. Last year, Ford said it would move its once-hot Focus to Mexico in 2018.
.. The auto maker, which already makes Focuses in China, said building the next-generation Focus there rather than in an existing plant in Hermosillo, Mexico, would save the company $500 million. Ford said relocating the Focus wouldn’t result in any job losses at the Michigan plant.