Is COVID-19 Capitalism’s Berlin Wall?

Salus rei publicae suprema lex
(the safety of the republic is the supreme law)

Cicero‘s De Legibus (book III, part III, sub. VIII)[1]

Mikhail Gorbachev had been pressing his perestroika (reform) agenda through a policy of glasnost (openness) and the Soviet fist was releasing its grip on Eastern Europe, setting the stage for Berliners to bring down their wall – which they did not because the Kremlin planned it, but because a flustered bureaucrat made up an answer to a question he wasn’t prepared for and a middle manager adlibbed a policy decision after senior management left him hanging.

“On the evening of Nov. 9, 1989, Gunter Schabowski, an East German government official, made a surprising announcement at a press conference.

“‘Permanent relocations,’ he said, ‘can be done through all border checkpoints between the GDR [East Germany] into the FRG [West Germany] or West Berlin.’ This news was set out as an incremental change in policy. But, after reporter Riccardo Ehrman asked when the regulations would take effect, Schabowski replied, ‘As far as I know, it takes effect immediately, without delay.’

“Schabowski’s press conference was the lead story on West Germany’s two main news programs that night, at 7:00 pm and 8:00 pm, with the takeaway being that the Wall, while it still stood, was no longer the firm dividing line it had long been. Since the late 1950s, the two stations broadcast to nearly all of East Germany, and the programs appeared there as well. That night, anchorman Hanns Joachim Friedrichs proclaimed, ‘This 9 November is a historic day. The GDR has announced that, starting immediately, its borders are open to everyone. The gates in the Wall stand open wide.’

“This was all the East German populace needed to hear. Citizens flocked to the border en masse sometime around 9:00 pm and found that, after initial confusion, the border guards were indeed letting people cross. This was a crucial flashpoint in the history between the two sides, as the guards could have easily fired on the crowd. However, according to historian Mary Elise Sarotte in her book The Collapse: The Accidental Opening of the Berlin Wall, no one among the East German authorities wanted to take the personal authority of issuing orders leading to the use of lethal force.

“By 11:00 pm, Harald Jager, the commander of the Bornholmer Strasse border crossing, let the guards open the checkpoints, allowing people to pass without their identities checked.

“To Jager, it was obvious that the five dozen men guarding the border were grossly outnumbered. He repeatedly attempted to contact his superior, Rudi Ziegenhorn, in order to ascertain how to handle the increasingly chaotic situation, as more and more people gathered at the gates. He was unable to get any clear guidance on how to proceed, but a superior in the background called Jager a coward for being unable to handle the situation. After 25 years of loyal service to the regime, according to Sarotte, Jager felt insulted and pushed to his limit.

“Jager was instructed by his superiors to let the biggest troublemakers through on a one-way ticket. But many of these so-called troublemakers were students and other young individuals who briefly entered West Berlin and then returned to the checkpoint for re-entry into East Berlin. However, the GDR was serious in its warnings that this was a one-way ticket. Their angry parents began to plead with officials not to keep them separated from their children, and by that point Jager was unwilling to argue on behalf of his superiors. After Jager made an exception for the parents, others demanded the same treatment as well. Having gone that far, it was simply too late. Thousands of people were demanding that the gates be opened. He was facing a momentous decision — open fire on the civilians, or let them through.

“At 11:30 pm, Jager phoned his superior and reported his decision: he would open all the remaining gates and allow the crowds to stream across the border.

“West Berliners greeted their counterparts with music and champagne. Some citizens began to chip away at the physical barrier with sledgehammers and chisels. The crowd began to chant “Tor auf!”—Open the gate! By midnight, the checkpoints were completely overrun.”[2]

Schabowski and Jager made history: Berlin reunited, Germany reunited, the Soviet Union finished, Russia re-established as a sovereign nation, a whole raft of new independent Balkan states created, Soviet-style Communism struck down, the Cold War ended, and capitalism crowned the winner of the economic ideology derby.

Not a bad night for a couple middle managers.

Capitalism’s Berlin Wall?

These days, history is being made just as suddenly, accidentally, randomly, unpredictably, and overwhelmingly, thanks to a microscopic mutant that preys on the body’s natural metabolic processes, turning nucleic acid into poison. Its impact is not on a divided city but on a divided world, bringing a sudden halt to life and business as usual.

The agent of change, of course, is COVID-19 –officially “severe acute respiratory syndrome coronavirus 2, or SARS-CoV-2” – the common cold gone bad, very bad.

“Coronaviruses are a large family of viruses that usually cause mild to moderate upper-respiratory tract illnesses, like the common cold, in people. However, three times in the 21st century coronavirus outbreaks have emerged from animal reservoirs to cause severe disease and global transmission concerns.

“There are hundreds of coronaviruses, most of which circulate among animals including pigs, camels, bats and cats. Sometimes those viruses jump to humans—called a spillover event—and can cause disease. Seven coronaviruses are known to cause human disease, four of which are mild: viruses 229E, OC43, NL63 and HKU1. Three of the coronaviruses can have more serious outcomes in people, and those diseases are SARS (severe acute respiratory syndrome) which emerged in late 2002 and disappeared by 2004; MERS (Middle East respiratory syndrome), which emerged in 2012 and remains in circulation in camels; and COVID-19, which emerged in December 2019 from China and a global effort is under way to contain its spread. COVID-19 is caused by the coronavirus known as SARS-CoV-2.”[3]

Yes, this is a defining moment in human history. And no, things will never be the same. Some people think one of those things is capitalism;

“The wheels are rapidly coming off of capitalism’s runaway train, and we’re in a collective, televised race to repair it.

“A highly contagious virus is rapidly debilitating and killing some of the most vulnerable people in communities across the world.

“The problem is, stopping the spread means hitting the pause button on global capitalism while we repair its machinery. Unfortunately, the system was built without one. And that means that bringing it to an unceremonious, grinding halt now has catastrophic human and economic consequences.”[4]

The capitalism that’s been infected by COVID-19 is the free market strain, as practiced for the past four decades principally in the USA and UK. There are and have been other versions of capitalism – for example the Keynesian economics that bailed us out of the Great Depression.

Soviet Communism was an economic ideology that didn’t deliver what it promised, instead enslaving citizens to a callous and brutal elite. Free market capitalism has similarly failed the people who go to work every day, who were supposed to prosper along with the capitalists, but haven’t.

Moments like tearing down the Berlin Wall, storming of the Bastille, or breaching the Winter Palace involved mobs overrunning cultural icons – physical structures. But how do you overrun a virus? And who would do the overrunning? Amazingly, the people most damaged by free market capitalism – the working middle class and the poor – continue to staunchly support the politicians who perpetuate it. The mob is simply unwilling to form. How do you make a revolution out of inexplicable indifference?

“…having discussed already how Coronavirus exposes and reveals the need for global systems, a radically reimagined world economy, the response from the average Westerner has been…a kind of deafening silence…mixed with a baffled pause, combined…sometimes, with an outraged ‘What?!!’”[5]

The Public Welfare Goes Missing

Free market capitalism is vulnerable because it eliminated what is most needed in a pandemic: a commitment to public welfare – which, as we’ve seen previously,[6] has been systematically eliminated from economic policy-making.

“The pandemic was not unexpected. But reality always differs from expectations. This is not just a threat to health. It may also be a bigger economic threat than the financial crisis of 2008-09.

“Dealing with it will require strong and intelligent leadership. Central banks have made a good start. The onus now falls on governments. No event better demonstrates why a quality administrative state, led by people able to differentiate experts from charlatans, is so vital to the public.

“The pandemic risks creating a depression. Salus rei publicae suprema lex (the safety of the republic is the supreme law). In war, governments spend freely. Now, too, they must mobilise their resources to prevent a disaster. Think big. Act now. Together.”[7]

Looking Out For The Common Good

In contrast to the USA and the UK, there are countries whose economic systems are built on “the safety of the republic is the supreme law.” Norway, for example.

“Norway’s readiness for health emergencies comes from its choice, all along, to prioritize the well-being of the people as a whole.

“As someone who has lived and worked in Norway, I see several ways in which the Norwegians’ prompt and efficient response draws on the advantages of what economists call “the Nordic model”—a design much different from that of the U.S.

“Meanwhile in the U.S., a recent survey by the First National Bank of Omaha found that 49% of Americans live paycheck to paycheck. What is to be done if those people can’t get to the jobs that keep them barely afloat? What does “self-quarantine” mean in that context? Or if employees receive no paid sick leave and can’t afford to stop working when they get sick? And what about the many who haven’t even had a job lately and find each day a struggle for food, including food-insecure college students whose colleges are closing?

“Such conditions are nearly inconceivable in Norway, where the social safety net is intact. A century ago, poverty was widespread but mass movements waged a successful nonviolent revolution in the 1920s and ’30s. By the time I got there, 1959, poverty had already been nearly eradicated, with everyone’s basic needs being met.”[8]

The missing public in the USA and UK is principally composed of capitalism’s key source of fuel: the people who go to work every day. Those workers both produce and consume, which makes them indispensable to both supply and demand.

Supply Side: Production

On the supply side,

“The primary issue is that late capitalism is not designed to be stopped, ever. In fact, the spectacular success of capitalist economics has only ever traditionally been measured by one north-star metric — growth —which is essentially just another term for infinite ‘value’ extraction— and in a general sense, it’s designed to self-organise, resource and innovate at a pace that requires machine-like commitment from a biologically volatile primary resource — human beings.

“In late capitalism’s fundamental design flaw, it is absolutely critical that the relative poor — the workers that create the value and deliver the results — remain healthy and active in order to hold the pieces together, because there is so little built-in redundancy for widespread personal crisis. This form of capitalism assumes that there will never be an unravelling serious enough to threaten it, which is why it’s got no proper killswitch….

“And at the back-end of 40 years of neoliberal, free-market economics, some of the world’s most ‘advanced’ political environments have either removed, privatised or hollowed out the basement machinery needed to stabilise capital markets by providing comprehensive, not-for-profit health, welfare and social services that step in to take the weight when crisis strikes.

“The loss of the working class is capitalism’s great nightmare. Alongside a terrible human cost, we’re watching entire industries that previously seemed indestructible falter – food service, hospitality, aviation and retail expecting massive state support in order to keep afloat — let alone make a profit. But the people are sick, and all dominos fall together, eventually.”[9]

Demand Side: Consumption

And on the demand side.

“Consumer sentiment, as measured by the University of Michigan’s monthly survey, saw its sharpest drop since October 2008 during the Great Recession.

“And even then, analysts said, the current decline significantly understated the coronavirus toll as two-thirds of the survey interviews were conducted before lock-down and physical distancing orders in mid-March shut down hundreds of thousands of shops, restaurants, offices and other large parts of the American economy.

“‘The economics of fear are now in plain sight,’ said Oxford Economics, a British economic research firm, noting that the pandemic ‘is dealing a major blow to confidence that will lead to a sharp retrenchment in consumer spending ‘

“That is especially worrisome because high levels of consumer confidence have consistently buoyed the U.S. economy in recent years, despite scant growth in spending power for most Americans.

“Some 70% of total U.S. economic output, or gross domestic product, is tied directly to consumer spending.”[10]

The Rentier Economy Takes The Hit

Particularly squeezed by the loss of a healthy and economically robust working class is the newly dominant “rentier economy” (a topic we’ve looked at before[11]), which drives prosperity to corporations and wealthy individuals through the extraction of rents from assets made artificially scarce by economic policy – affordable housing, for example.[12].

“It’s the end of the month, the rent is due, and a government-issued ban on going to work means a chunk of Britain is already broke, and another chunk is on borrowed time. If thousands aren’t running on fumes by the end of this month, they will be within weeks, and as the layoffs accelerate (which has its very own curve), it’ll be even worse by May.

“This is problematic for reasons commonly known as ‘maths’ — particularly given how the lower/middle access their income. The vast proportion of people’s access to money is through the kaleidoscope of an economy whose leadership won’t stop talking about how ‘wealth is zero sum’ but don’t address that wealth is not income, wages of which are a subtraction on a business’s finite cash reserve.

“This does not favour the working poor in an economy designed, incentivised and explicitly rewarded for its ability to maximise the return on everything. Personal wealth is a pipe dream in a world where the cost of living is always slightly too high, and personal income is slightly too low, and in the gig, self-employment or services economy, unstable, too.

“The profound explosion in UK housing prices in the last 15 years has created a rental market that now props up ownership as an exclusive club, and one that is often (but not always) only accessible via certain personal circumstance or privilege. It’s not uncommon for renters, particularly young, city-based renters (where the majority of the work is) to have to pay out more than half of their income in rent — before factoring in other arbitrary fees or securities. This significant, artificial increase in major, fixed costs against wages, means breaking out of the rental cycle is either a very long, very slow grind — or impossible.”

Although written specifically about the U.K., this analysis is applicable in the U.S. as well.

What’s next for capitalism?

About a year ago, economics Nobel laureate Joseph E. Stiglitz, offered a “progressive capitalism” alternative based on “the power of the market to serve society.”[13]

“The United States has the highest level of inequality among the advanced countries and one of the lowest levels of opportunity — with the fortunes of young Americans more dependent on the income and education of their parents than elsewhere.

“There is a broader social compact that allows a society to work and prosper together, and that, too, has been fraying. America created the first truly middle-class society; now, a middle-class life is increasingly out of reach for its citizens.

“We confused the hard work of wealth creation with wealth-grabbing (or, as economists call it, rent-seeking).

“The prescription follows from the diagnosis: It begins by recognizing the vital role that the state plays in making markets serve society.

“Progressive capitalism is based on a new social contract between voters and elected officials, between workers and corporations, between rich and poor, and between those with jobs and those who are un- or underemployed.

“Part of this new social contract is an expanded public option for many programs now provided by private entities or not at all

“This new social contract will enable most Americans to once again have a middle-class life.

“The neoliberal fantasy that unfettered markets will deliver prosperity to everyone should be put to rest.

“America arrived at this sorry state of affairs because we forgot that the true source of the wealth of a nation is the creativity and innovation of its people.”

A year after Stiglitz’s article, we have the COVID-19 lockdown. Will politicians act to restore the missing public welfare to economic policy-making, as Stiglitz urges? And, if they don’t, is the electorate willing to storm and overthrow the economic status quo ? Paradigms only shift when culture does, and a new economic paradigm requires more of a global perspective than we had before worldwide populist movements retrenched to aggressive nationalism. This trend leads one commentator to doubt voters will respond to the global pandemic with a newly expanded globalism.[14]

Changing the world means…changing the world. That might sound like a cliche. I assure you it’s not. The average white American liberal is concerned with a thing, maybe, if they’re really caring and intelligent, like healthcare for some of their society. But even that’s not nearly big enough. Without actually changing the world, the world doesn’t change. Westerners attempt to change their broken societies, without really grasping the fact that they need to put the world first.

“That means: without building global systems, nothing much will change. Every single existential threat of now, from pandemic to climate change to inequality to fascism, will simply rage on and continue. But you yourself probably think building global systems is either foolish, idealistic, unnecessary, or dangerous. You yourself are the thing stopping the world from changing — as much as you imagine you want to change the world. That’s true of almost every Western intellectual I can think of, and it’s true of most people, too.

“Our first task this century is therefore building a global consciousness. Teaching the world, especially the rich West, to care about the world. Why does that hedge funder live a better life than that poor Chinese dude, by sheer privilege of birth, because of a long history of violence and exploitation by one’s side against the other? Equality, freedom, justice, truth, selfhood — these notions have no meaning whatsoever at the global level yet in human history.”

“Surveillance Capitalism”

If we’re not willing to “think globally, act locally,” then what will fill the void? Some thinkers have suggested a much more chilling outcome: “surveillance capitalism” or the “surveillance economy.”[15] As bestselling author Uval Hoah Harari (Sapiens, Homo Deus, 21 Lessons for the 21st Century) explained in an article last week, the same technology that supports capitalism has been supercharged to fight the Plague. [16]

“In order to stop the epidemic, entire populations need to comply with certain guidelines. There are two main ways of achieving this. One method is for the government to monitor people, and punish those who break the rules. Today, for the first time in human history, technology makes it possible to monitor everyone all the time. Fifty years ago, the KGB couldn’t follow 240m Soviet citizens 24 hours a day, nor could the KGB hope to effectively process all the information gathered. The KGB relied on human agents and analysts, and it just couldn’t place a human agent to follow every citizen. But now governments can rely on ubiquitous sensors and powerful algorithms instead of flesh-and-blood spooks.

“In their battle against the coronavirus epidemic several governments have already deployed the new surveillance tools. The most notable case is China. By closely monitoring people’s smartphones, making use of hundreds of millions of face-recognising cameras, and obliging people to check and report their body temperature and medical condition, the Chinese authorities can not only quickly identify suspected coronavirus carriers, but also track their movements and identify anyone they came into contact with. A range of mobile apps warn citizens about their proximity to infected patients.

“You might argue that there is nothing new about all this. In recent years both governments and corporations have been using ever more sophisticated technologies to track, monitor and manipulate people. Yet if we are not careful, the epidemic might nevertheless mark an important watershed in the history of surveillance. Not only because it might normalise the deployment of mass surveillance tools in countries that have so far rejected them, but even more so because it signifies a dramatic transition from ‘over the skin’ to ‘under the skin’ surveillance.

“Hitherto, when your finger touched the screen of your smartphone and clicked on a link, the government wanted to know what exactly your finger was clicking on. But with coronavirus, the focus of interest shifts. Now the government wants to know the temperature of your finger and the blood-pressure under its skin.”

Few would argue that using state-of-the-art technology to slow an international pandemic is a bad thing, but the implications for expanded future use on consumers are deeply disturbing.

But it’s too easy to assume the worst.

It’s possible that the pandemic will catalyze economic reform, demanded by the neglected working class.[17]

“As my colleague Annie Lowrey wrote, the economy is experiencing a shock ‘more sudden and severe than anyone alive has ever experienced.’ About one in five people in the United States have lost working hours or jobs. Hotels are empty. Airlines are grounding flights. Restaurants and other small businesses are closing. Inequalities will widen: People with low incomes will be hardest-hit by social-distancing measures, and most likely to have the chronic health conditions that increase their risk of severe infections.

“Pandemics can also catalyze social change. People, businesses, and institutions have been remarkably quick to adopt or call for practices that they might once have dragged their heels on, including working from home, conference-calling to accommodate people with disabilities, proper sick leave, and flexible child-care arrangements. ‘This is the first time in my lifetime that I’ve heard someone say, Oh, if you’re sick, stay home,’ says Adia Benton, an anthropologist at Northwestern University.

“Perhaps the nation will learn that preparedness isn’t just about masks, vaccines, and tests, but also about fair labor policies and a stable and equal health-care system. Perhaps it will appreciate that health-care workers and public-health specialists compose America’s social immune system, and that this system has been suppressed.”

As the lead to Prof. Harari’s article says, “This storm will pass. But the choices we make now could change our lives for years to come.”

And some of us, at least, will live to see it.

[1] Wikipedia.

[2] The Gates in the Wall Stand Open Wide.’ What Happened the Day the Berlin Wall Fell. Time, November 9 2019. See also this article from the History Channel.:

[3] Coronaviruses, National Institutes of Health/ National Institute of Allergy and Infectious Diseases.

[4] Thomas K R, Coronavirus : How a global pandemic is single-handedly unravelling capitalist economics, Medium (Mar. 19, 2020).

[5] Hague, Umair, Will Coronavirus (Really) Change the World? Medium (Mar. 31, 2020)

[6] We previously explored this topic in this blog — see Free Market Capitalism’s Assault on the Public Good.

[7] The Virus Is An Economic Emergency Too, Financial Times (Mar. 17, 2020)

[8] The Nordic Secret to Battling Coronavirus: Trust, Yes! Magazine (March 17, 2020)

[9] Thomas, Coronavirus, op cit.

[10] American Consumers, Once Bulwark Of Economy, Are Rapidly Losing Confidence, MSN Monery (Mar. 27, 2020)

[11] For an introduction, see here and here.

[12] Thomas, K R, The Rent’s Due, but Britain’s Broke, Medium (Mar. 22, 2020)

[13] Progressive Capitalism Is Not an Oxymoron: We can save our broken economic system from itself, New York Times (April 19, 2019).

[14] Hague, Umair, op. cit.

[15] For an introduction to this topic, see The Age of Surveillance Capitalism by Shoshana Zuboff Review, The Guardian (Feb. 2, 2019).

[16] Harari, Yuval Noah: The World After Coronavirus, Financial Times (Mar. 20, 2020)

[17] How the Pandemic Will End, The Atlantic (Mar. 25, 2020)

Economics 000: Addiction, Belief, Bible, and Bad Financial and Career Advice

My name is Kevin and I’m a belief addict. Here’s my story.

The Widow’s Mite

I once told a friend who was a legend in the financial planning industry how I was attempting to follow the advice of the Bible story known as “the Widow’s Mite”:

[Jesus] looked up and saw the rich putting their gifts into the treasury,  and He saw also a certain poor widow putting in two mites. So He said, “Truly I say to you that this poor widow has put in more than all; for all these out of their abundance have put in offerings for God, but she out of her poverty put in all the livelihood that she had.”

Luke 21:1-4 (NKJV)

“That’s dangerous advice,” my friend said, always blunt, “It makes no sense today. It will hurt you.”

Did he just say Jesus gave bad advice?

I had no comeback. I was an evangelical Christian at the time, trying to follow all kinds of Biblical advice in my career and finances. “Dangerous advice.” “Makes no sense today.” “Will hurt you.” How could that be? I mean, we’re talking Jesus here. And anyway, doesn’t God’s advice move with the times?

If you start wondering if Jesus gave bad advice or that something he said is outdated, you’re not an evangelical Christian anymore. You violated the Protestant Reformation doctrine of sola scriptura – the belief that anybody can get all the truth they need from the Bible.

“[Martin Luther] insisted that clergymen have no special access to God or Jesus or truth. Everything a Christian needed to know was in the Bible. So every individual Christian believer could and should read and interpret Scripture for himself or herself. Every believer, Protestants said, was now a priest.

“Apart from devolving religious power to ordinary people — that is, critically expanding individual liberty — Luther’s other big idea was that belief in the Bible’s supernatural stories, especially those concerning Jesus, was the only prerequisite for being a Christian.”[1]

You can’t be an evangelical without the Bible, especially the parts about Jesus. Question either, and you’re out. You’re no longer a believer.

The Economics of Faith

Further, I saw in the Gospel an alternate economic system, to which believers were automatically subscribed.  In this alternate economic system, things like the widow’s mite and other counter-intuitive and counter-cultural ways ot approaching economics and personal financial planning made sense.  It was the “Kingdom of God” economy, and you activate it in your life by believing in it.  Once activated, this alternate economy allows you to take an unconventional approach to money and career, because God himself has your back.

Jesus himself set up the primacy of belief:

“Truly, I say to you, whoever says to this mountain, ‘Be taken up and thrown into the sea,’ and does not doubt in his heart, but believes that what he says will come to pass, it will be done for him.”

Mark 11:23 (ESV)

Obviously, belief is a completely different paradigm for approaching economics and finance.  And it’s not enough just to believe – you also have to not doubt. Plus there’s one more implicit clause in there:  if the mountain doesn’t move, it’s all you fault. If you start out believing but then have your doubts, belief won’t work for you. Jesus’ disciple James made sure we got the point:

If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it w”ill be given him. But let him ask in faith, with no doubting, for the one who doubts is like a wave of the sea that is driven and tossed by the wind. For that person must not suppose that he will receive anything from the Lord; he is a double-minded man, unstable in all his ways.

James 1:5-8 (ESV)

Okay, I think I get it — God gives generously, but if you doubt you can’t receive. Right? God does His part, but you can screw it up. Does that strike anyone else as sort of… unfair?… lopsided? If nothing else, God doesn’t seem to be very effective in the way He “generously” hands out advice. And why do I keep calling God “He” anyway?

But you don’t think that way when you’re in the grip of belief.

You are always the problem.

Belief seeks its own purification by cleansing itself from doubt. It does that by making the believer the problem. To stay on the right side of belief, you need to believe your way through your doubts. Belief is a closed loop — you either believe or you don’t – you start in belief and end in belief. Thus belief disposes of every criticism against it. You’re either in or out, either with us or against us. Or, as a friend of mine used to say, “The Bible says it, I believe it, and that settles it!”

I wandered intellectually my first couple years of college, then had to declare a major. Okay, let’s see… I’m a Jesus Freak… I know, I’ll be a religion major! Studying the world’s religions, I was soon swimming in doubt. I told that to my “that settles it” friend. He handed me a Bible and said, “Read Luke 6: 62.”

Jesus said to him, “No one who puts his hand to the plow and looks back is fit for the kingdom of God.”

Luke 9: 62  (ESV)

End of discussion.

I can still see the hardness on his face. Religions venerate those who long endure and despise those who don’t. My character and commitment were suspect. I declared a new major the following quarter. Lesson learned: you don’t entertain doubt, you double down on belief.

Belief’s endless loop is what snared me, got me addicted. It played directly into a tendency I’d demonstrated all my short life: be exceptional, take everything to the extreme, out-commit, out-work everybody. Decades later, I would learn where that came from. But as a kid, an adolescent, and a young adult, it was my identity, my calling card. Eventually it would also be my ruin.

After we graduated, we missed the intensity of our college experience, and looked for ways to replicate it. Our leaders — zealous young men like me, only a few years older but they seemed so much wiser — started writing books about how to create authentic new testament churches, meeting in small groups and homes, teaching the Bible and doing miracles. We called this “church planting” and prided ourselves on the idea that we were doing just as the early apostles had done.

That’s who I was when I had the “that’s dangerous advice” encounter. In the face of that blunt dismissal, I needed to prove up my beliefs by pushing them to the limit, one more time.

And so I did.

Belief reminds you that if your doubts persist, there are consequences. Turns out there are also consequences to not doubting when you really ought to – which was how my life played out for the next couple decades, as I set about to prove that Jesus’s financial advice was doable.

My education in bad financial and career advice started early.

Everybody went to church where I grew up: mostly Scandinavian Lutherans, enough German Catholics to make up a parish, plus the “other” — Baptist, Episcopal, Presbyterian, Dutch Reformed, Methodist…. My family was “other” – we went to the Congregational Church, where we were into the 60’s Revolution. We read poetry, played guitars, thought believing everything the Bible said was anti-intellectual. Our Sunday bulletins from HQ advocated social justice. I can still see one of them like it was yesterday: stacks of coins like poker chips, with the words “and God said to him, you fool!” – that was from the Bible, the back cover said.[2]

The Parable of the Rich Fool

One of the multitude said to him, “Teacher, bid my brother divide the inheritance with me.” But he said to him, “Man, who made me a judge or divider over you?” And he said to them, “Take heed, and beware of all covetousness; for a man’s life does not consist in the abundance of his possessions.” And he told them a parable, saying, “The land of a rich man brought forth plentifully; and he thought to himself, ‘What shall I do, for I have nowhere to store my crops?’ And he said, ‘I will do this: I will pull down my barns, and build larger ones; and there I will store all my grain and my goods. And I will say to my soul, Soul, you have ample goods laid up for many years; take your ease, eat, drink, be merry.’ But God said to him, ‘You fool! This night your soul is required of you; and the things you have prepared, whose will they be?’ So is he who lays up treasure for himself, and is not rich toward God.”

Luke 12: 13-21 (RSV)

Powerful stuff. I was an impressionable 7th grader. I pinned the bulletin up in my room, and kept it with me for years.

Consider the lilies…

About that same time, my older sister was into art and calligraphy. She made a poster with some watercolor lilies and these lines:

Consider the lilies of the field, how they grow: they neither toil nor spin, yet I tell you that even Solomon in all his Glory was not arrayed like one of these.

Luke 12: 27 (RSV)

I loved it, memorized it, used to sneak into her room to look at it when she wasn’t around. The text comes right after the Parable of the Rich Fool:

And he said to his disciples, “Therefore I tell you, do not be anxious about your life, what you will eat, nor about your body, what you will put on. For life is more than food, and the body more than clothing. Consider the ravens: they neither sow nor reap, they have neither storehouse nor barn, and yet God feeds them. Of how much more value are you than the birds! And which of you by being anxious can add a single hour to his span of life? If then you are not able to do as small a thing as that, why are you anxious about the rest? Consider the lilies, how they grow: they neither toil nor spin, yet I tell you, even Solomon in all his glory was not arrayed like one of these. But if God so clothes the grass, which is alive in the field today, and tomorrow is thrown into the oven, how much more will he clothe you, O you of little faith! And do not seek what you are to eat and what you are to drink, nor be worried. For all the nations of the world seek after these things, and your Father knows that you need them. Instead, seek his kingdom, and these things will be added to you.

Luke 12:22-32 (ESV)

That was the sum total of my financial education growing up: don’t worry about money, don’t worry about making it, don’t worry about saving it, don’t worry about where it comes from or what it’s for, and whatever you do, don’t ever get rich or you’ll end up like the guy with his new barns full of harvest and the grim reaper at his door. And the best part was that if you just keep your priorities straight – i.e., you keep believing what the Bible says — everything you need will just show up – food, drink, the whole deal.

When I read that now, I think it’s crazy. I agree with my friend: it makes no sense. But as a pre-teen I thought it was the ultimate in cool.

I never grew up.

My financial education was fixed at age 12. It survived intact through college economics, a few years in insurance and financial planning, an MBA program, all the way into a career in law. There was plenty of fodder for doubt all that time, but it never touched me.

Never mind that my radical Biblical economics didn’t have much company. Most Christians seemed to know it didn’t work. Maybe that’s what the Book said, but… well never mind. But I minded a lot. I had something to prove. I was a commando Christian, living on the edge, taking belief to the extreme, going where weak belief dared not go, out if front showing everybody else back there that Jesus’s unorthodox advice really did work.

Hmmm, no ego in that…

I was committed. I probably should have been… committed, that is.

One Career and Financial Disaster After Another

The first couple decades of my adult life followed a pathetic pattern of first doing well in my career and then dropping out to pursue some kind of Christian vision. Making a living always came in second to the important stuff and besides God would provide, just like Jesus said. The result was a series of financial disasters about every two or three years, followed by me sulking back to work until I had enough savings to afford getting inspired and trying again. It helped that I was smart and worked hard, so new employers kept forgiving my patchwork resume.

After yet one more disaster to end all disasters, I finally started to learn self-awareness, started asking questions, started doubting. I didn’t know yet that to doubt at all is to end belief – that’s all it takes to break the spell.

A couple decades later, and I was what I am today: an atheist. I didn’t see that coming, didn’t set out to become one, resisted for a long time, finally just sort of drifted into it. I’ve read others who’ve told the same story. We’re not as alone as we think we are.

Self-Help Economics

Along the way, I spent considerable time hanging out in the world of self-help. I am going to write separately about that, so I won’t say much at this time, just that after a few years I finally saw the remarkable similarity between self-help and Jesus’s teachings on belief. I had never heard so much God language since my early Christian days, although people often substituted “The Universe.” Create your own financial and career reality by believing it into existence, and God/The Universe will back you up. But you do need to believe, and keep believing, keep intending and reminding yourself first thing in the morning and before going to sleep at night, and you need to make a vision board and read this book and especially that one, and you need to go to these seminars, and lay your money down everywhere you go… all to stay pumped up, to keep believing. And if it didn’t work for you, well you are responsible for everything in your life, so if it’s not what you want then you need to up your belief commitment – do more, more, more.

Believe, believe, believe… Christianity and self help were indistinguishable. Life as a “believer” –- religious or secular -– worked the same way: believe and don’t doubt, and you get the goods.

A couple key experiences kept repeating, and the lessons I drew from them started to loosen the tether.

One was that belief was never about the thing you were trying to believe into existence — the mountain you were telling to get up and jump into the sea. Instead, belief was one long exercise in the dynamics of belief itself. Belief was about believing. You spent all your energy believing and believing in your belief. You never got out of the loop.

Another – the hardest lesson of all — was that believing was the culprit, not me. It wasn’t all my fault after all. Gospel Finance 101 truly was lousy advice, even when it was recast as self help. It truly didn’t work in today’s world. It truly was dangerous. It truly did hurt me – and my family.

The over-arching problem was how belief operates in the human brain, and in human culture.[3] When you start to doubt, you drop out of the cultural context that’s been supporting your belief system. Without constant reinforcement, the neural pathways that run your belief fall into disuse and eventually go dormant as you start looking elsewhere for answers, which requires new neural pathways, and in time your new skeptical neural pathways take over.

No, belief isn’t all bad.

Belief is inspiring and motivating. It throws off the restraints of normal and mundane, replaces them with a world of new possibilities. The brain hormone dopamine is what’s behind all the punch and pizzazz. Dopamine makes the unreasonable and impossible worth doing. It’s the crowd chanting “go for it!” We get a rush of it when we break out, try new things, take risks.

Larry Smith is an economics professor at Waterloo University in Ontario, and a career inspiration Meister. As of this writing, his combative, tongue-in-cheek TED Talk “Why You Will Fail to Have a Great Career” has been viewed closing in on seven million times. Here’s the Amazon blurb for Prof. Smith’s book No Fears, No Excuses: What You Need To Do To Have A Great Career:

“This book captures the best of his advice in a one-stop roadmap for your future. Showcasing his particular mix of tough love and bracing clarity, Smith itemizes all the excuses and worries that are holding you back—and deconstructs them brilliantly. After dismantling your hidden mental obstacles, he provides practical, step-by-step guidance on how to go about identifying and then pursuing your true passion. There’s no promising it will be easy, but the straight-talking, irrepressible Professor Smith buoys you with the inspiration necessary to stay the course.”

Scott Barry Kaufman is another inspiration Meister, and his own weather system. His website says he’s a “psychologist at Barnard College, Columbia University, exploring the depths of human potential.” These are his books. He wrote the following in a Harvard Business Review article entitled “Why Inspiration Matters.”[4]

“In a culture obsessed with measuring talent and ability, we often overlook the important role of inspiration. Inspiration awakens us to new possibilities by allowing us to transcend our ordinary experiences and limitations. Inspiration propels a person from apathy to possibility, and transforms the way we perceive our own capabilities. Inspiration may sometimes be overlooked because of its elusive nature. Its history of being treated as supernatural or divine hasn’t helped the situation. But as recent research shows, inspiration can be activated, captured, and manipulated, and it has a major effect on important life outcomes.”

Good for dopamine: it gets us moving, and that’s usually a good thing.

But it might be too much of a good thing.

“I need to get motivated.”

You might want to rethink that.

Google “how to motivate yourself” and you get lots of self-help inspirational quotes and to do lists. They’re okay as far as that goes, but they’re not the whole inspiration story. We need inspiration to get going, but all that dopamine can be too much of a good thing. The following is from Larry Howes — “lifestyle entrepreneur” and former arena football player and member of the USA men’s national handball team.[5]

“One of the most dangerous drugs an entrepreneur can become addicted to is motivation.

“I’ve heard far too many entrepreneurs say,  “I just need to get more motivated” in order to start a project or achieve a goal.  This usually means they’ll spend a few hours reading or listening to other people’s success instead of creating their own.

“This is how the motivation addiction begins.

“Don’t get me wrong – motivation is great.  It’s nature’s reward for achievement, but it can easily become your “drug” of choice if it’s misused.

“This may sound a little funny, but one of the best drug dealers in the world is your brain. Your brain is wired to release a shot of dopamine each time you … achieve goals, take risks, try something new. They’re all natural highs and designed to keep us coming back for more.

“It’s great to be goal driven and to have feelings of fulfillment following our achievements, but the moment we began wanting those feelings before doing the work we’re in HUGE trouble.”

The issue is dependence: the motivated feeling isn’t easily summoned; and reliance on it is dicey. Plus, dopamine acts like any addictive substance: each successive time you reach for a shot, you need more than last time:

“Once again, there’s nothing wrong with motivation or learning from the success of others, but that moment we need the ‘reward feeling’ of motivation in order to get started, we’re in serious trouble.

“Not only does it take away from precious time you should spend working, it also means that you’ll need a higher dosage of motivation as time progresses.”

And don’t fall for the line that you can be anything you want, adds “journalist, author, and broadcaster” Leslie Garrett: your brain will hurt you if you do, this time because of the “stress hormone” cortisol.[6]

“As long ago as the fourth century BCE, the Greek philosopher Aristotle celebrated the value of a meaningful goal when he coined the term eudaimonia (‘human flourishing’). The concept re‑emerged in the 16th-century Protestant concept of a ‘calling’. More recently, in the 1960s, a whole generation of young people brought up at the height of an economic boom began asking whether work could amount to more than just paying the bills. Couldn’t it have something to do with meaning and life, talents and passions?

“It was then that the episcopal clergyman Richard Bolles in California noticed people grappling with how to choose that special, meaningful career, and responded by publishing What Color is Your Parachute? (1970), which has sold more than 10 million copies, encouraging job‑hunters and career-changers to inventory their skills and talents. Bolles bristles at the suggestion that he’s telling people to be ‘anything’ they want to be. ‘I hate the phrase,’ he says. ‘We need to say to people: Go for your dreams. Figure out what it is you most like to do, and then let’s talk about how realistically you can find some of that, or most of that, but maybe not all of that.’

“The situation even endangers health. In 2007, psychologists from the US and Canada followed 81 university undergraduates for a semester and concluded that those persisting in unattainable goals had higher concentrations of cortisol, an inflammatory hormone associated with adverse medical outcomes….”

Dopamine is why belief is addictive, why belief always wants more, more, more. It’s not a legally controlled substance, but it ought to be – especially for people like me.

Use it at your own risk.

I kind of wish somebody had told me that. But I doubt I would have listened. I was enthralled with the alternative gospel economy.  It was unquestionably good news.  I just couldn’t make it work.  Money and career ultimately suffered as a result.

Addict? Who me?’

 

[1] Fantasyland: How American Went Haywire, a 500-Year History, Kurt Andersen (2017)

[2] Apparently it was okay to use the Bible for our social causes, even if we dismissed it for other purposes.

[3] See this blog’s series on Belief Systems and Culture, also Knowledge, Conviction, and Belief.

[4] Harvard Business Review (Nov. 8, 2011).I tried to provide a link, but it wouldn’t work. Google “Harvard Business Review Scott Barry Kaufman Why Inspiration Matters” and it will come up.

[5] “Why Motivation is Hurting your Productivity (And How to Fix It” Forbes (Aug. 20, 2012). I tried to provide a link, but it wouldn’t work. Google “Larry Howes Forbes Why Motivation is Hurting your Productivity,” and the article will come up.

[6]You Can Do It, Baby! Our Culture Is Rich With Esteem-Boosting Platitudes For Young Dreamers, But The Assurances Are Dishonest And Dangerous,” Aeon Magazine (July 17, 2015)

Horatio Alger is Dead, America Has a New Class Structure, and it’s Not Your Fault

horatio alger

January 23, 2020

The member of the month at the gym where I work out is a guy who looks like he’s in his early 20’s. One of the “get to know me” questions asks “Who motivates you the most?” His answer: “My dad, who taught me that hard work can give you anything, as long as you can dedicate time and effort.”

The answer is predictably, utterly American. “Hard work can give you anything” — yes of course, everybody knows that. Parents tell it to their kids, and the kids believe it. America is the Land of Opportunity; it gives you every chance for success, and now it’s up to you. “Anything you want” is yours for the taking – and if you don’t take it, that’s your problem, not America’s.

Except it’s not true, and we know that, too. We know that you can work really, really hard and dedicate lots and lots of time and effort (and money), and still not get what you want.

Why do we keep saying and believing something that isn’t true? Why don’t we admit that things don’t actually work that way? Because that would be un-American. So instead we elevate the boast: America doesn’t just offer opportunity, it gives everybody equal opportunity — like Teddy Roosevelt said:

“I know perfectly well that men in a race run at unequal rates of speed.
I don’t want the prize given to the man who is not fast enough to win it on his merits, but I want them to start fair.”

Equal opportunity means everybody starts together. No, not everybody wins, but still… no matter who you are or where you’re from, everybody has the same odds. None of that landed gentry/inherited wealth class system here.

Except that’s not true either, and we know that, too.

But we love the equal opportunity myth. We love the feeling of personal power – agency, self-efficacy – it gives us. It’s been grooved into our American neural circuits since the beginning:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the .pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.”[1]

We’re all equals here in America, divinely ordained to pursue the good life. That’s our creed, and we – “the governed” — declare that we believe it.

Even if it’s not true.

Equal opportunity is a foundational American cultural belief. Cultural myths are sacred – they’re afforded a special status that makes them off limits to examination. And national Founding Myths get the highest hands-off status there is.

Never mind that the Sacred doesn’t seem to mind being doubted – it’s the people who believe something is sacred you have to watch out for. And never mind that history and hindsight have a way of eventually outing cultural myths – exposing them as belief systems, not absolute truths. But it’s too late by the time history has its say: the fraud is perpetrated in the meantime, and attempts to expose it are shunned and punished as disloyal, unpatriotic, treasonous.

If we can’t out the myth, what do we do instead? We blame ourselves. If we don’t get “anything you want,” then we confess that we didn’t work hard enough, didn’t “dedicate the time and effort,” or maybe we did all that but in the wrong way or at the wrong time. Guilt, shame, embarrassment, frustration, depression… we take them all on as personal failings, in the name of preserving the myth.

You may have seen the Indeed commercial. (Go ahead, click it – it’s only 30 seconds.)

Indeed advert

It brilliantly taps the emotional power of the equal opportunity myth.

“With no choice but to move back home after college, they thought he’d be a little more motivated to find a job.”

The kid is glued to his phone, and it’s driving his parents crazy. He’s obviously a slacker, a freeloader. Household tensions mount. The phone dings at the dinner table. Dad snatches it up.

“Turns out, they were right.”

He’s using it to find a job! Faith and family harmony restored! That’s our hard-working boy!

Heartwarming, but still untrue.

But What About the Strong Job Numbers?

Yes, unemployment is low. But consider this analysis of those numbers[2], just out this month:

“Each month, the Bureau of Labor Statistics releases its Employment Situation report (better known as the ‘jobs report’) to outline the latest state of the nation’s economy. And with it, of late, have been plenty of positive headlines—with unemployment hovering around 3.5%, a decade of job growth, and recent upticks in wages, the report’s numbers have mostly been good news.

“But those numbers don’t tell the whole story. Are these jobs any good? How much do they pay? Do workers make enough to live on?

“Here, the story is less rosy.

“In a recent analysis, we found that 53 million workers ages 18 to 64—or 44% of all workers—earn barely enough to live on. Their median earnings are $10.22 per hour, and about $18,000 per year. These low-wage workers are concentrated in a relatively small number of occupations, including retail sales, cooks, food and beverage servers, janitors and housekeepers, personal care and service workers (such as child care workers and patient care assistants), and various administrative positions.

“Just how concerning are these figures? Some will say that not all low-wage workers are in dire economic straits or reliant on their earnings to support themselves, and that’s true. But as the following data points show, it would be a mistake to assume that most low-wage workers are young people just getting started, or students, or secondary earners, or otherwise financially secure:

      • Two-thirds (64%) of low-wage workers are in their prime working years of 25 to 54.
      • More than half (57%) work full-time year-round, the customary schedule for employment intended to provide financial security.
      • About half (51%) are primary earners or contribute substantially to family living expenses.
      • Thirty-seven percent have children. Of this group, 23% live below the federal poverty line.
      • Less than half (45%) of low-wage workers ages 18 to 24 are in school or already have a college degree.

“These statistics tell an important story: Millions of hardworking American adults struggle to eke out a living and support their families on very low wages.”

When the kid got a text at the dinner table, it was about one of these jobs. Mom and Dad better get used to the idea that he’ll be around for awhile. Even if he gets that job, it won’t offer benefits, could end at any moment, and won’t pay him enough to be self-sustaining. That’s not how Mom and Dad were raised or how things went for them, but that’s how the economy works nowadays.

Economics Begets Social Structure

The even bigger issue is that the equal opportunity myth has become a social norm: uber-competitive free market economics controls the collective American mindset about how adult life works, to the point that it’s become a nationalist doctrine.

The Chicago School of Economics – the Vatican of free marketism — believed so ardently in its on doctrines that its instructional approach took on the dynamics of fundamentalist indoctrination:

“Frank Knight, one of the founders of Chicago School economics, thought professors should ‘inculcate’ in their students the belief that economic belief is ‘a sacred feature of the system,’ not a debatable hypothesis.’”[3]

Free market ideology preaches that capitalism promotes both economic and social opportunity. It has had the past four decades to prove that claim, and has failed as spectacularly as Soviet-style communism failed to benefit the workers it was supposed to redeem. Instead, free market ideology has given America what it wasn’t ever supposed to have: a stratified socio-economic class system that skews rewards to the top 10% and leaves the rest in the grip of the dismal statistics listed above.

But we don’t see that – or if we do, we don’t say anything about it, we just keep reciting the “trickle down” mantra. Member of the month and his Dad and the parents in the Indeed commercial and most Americans still believe the myth. Ironically the ones who see through it are the top 10% members who got in before they closed the gates. Meanwhile, the lower 90% — the decimated middle class, the new poor, the hard-working wage-earners – keep blaming themselves.

Even though it’s not their fault. If the kid in the commercial can’t find a job to support himself, it’s not his fault.

“I can’t pay my bills, afford a house, a car, a family. I can’t afford healthcare, I have no savings. Retirement is a joke. I don’t know how I’ll ever pay off my student loans. I live paycheck to paycheck. I’m poor. But it’s not my fault.”

Try saying that to Dad at the dinner table.

But unlike “anything you want,” “it’s not your fault” is true: current economic policy and its companion social norms do not deliver equal opportunity. Horatio Alger is dead, but the equal opportunity myth lives on life support as we teach it to our children and elect politicians who perpetuate it, while all of us ignore the data.

Horatio Alger is Dead

There’s no more enduring version of the upward mobility ideal than the rags-to-riches story codified into the American Dream by Horatio Alger, Jr. during the Gilded Age of Andrew Mellon, John D. Rockefeller, Cornelius Vanderbilt, Andrew Carnegie, and the rest of the 19th Century Robber Barons. If they can do it, so can the rest of us, given enough vision, determination, hard work, and moral virtue — that was Alger’s message. Except it never worked that way, especially for the Robber Barons – opportunists aided by collusion and chronyism carried out in the absence of the antitrust and securities laws that would be enacted under the New Deal after history revealed the fraud.[4]

But never mind that — according to Roughrider Teddy and politicians like him, government’s job is to guarantee equal opportunity for all, then get out of the way and let the race to riches begin. Thanks to our devotion to that philosophy, a fair start has become is a thing of the past — so says Richard V. Reeves in his book Dream Hoarders.

Reeves begins by confessing that his disenchantment over the demise of the Horatio Alger ideal will no doubt seem disingenuous because he didn’t grow up American and is now a member of the economic elite himself:

“As a Brookings senior fellow and a resident of an affluent neighborhood in Montgomery County, Maryland, just outside of DC, I am, after all, writing about my own class.

“I am British by birth, but I have lived in the United States since 2012 and became a citizen in late 2016. (Also, I was born on the Fourth of July.) There are lots of reasons I have made America my home. But one of them is the American ideal of opportunity. I always hated the walls created by social class distinctions in the United Kingdom. The American ideal of a classless society is, to me, a deeply attractive one. It has been disheartening to learn that the class structure of my new homeland is, if anything, more rigid than the one I left behind and especially so at the top.

“My new country was founded on anti-hereditary principles. But while the inheritance of titles or positions remains forbidden, the persistence of class status across generations in the United States is very strong. Too strong, in fact, for a society that prides itself on social mobility.”

Reeves also wrote a Brookings Institute monograph called Saving Horatio Alger: Equality, Opportunity, and the American Dream, in which he said the following:

“Vivid stories of those who overcome the obstacles of poverty to achieve success are all the more impressive because they are so much the exceptions to the rule. Contrary to the Horatio Alger myth, social mobility rates in the United States are lower than in most of Europe. There are forces at work in America now — forces related not just to income and wealth but also to family structure and education – that put the country at risk of creating an ossified, self-perpetuating class structure, with disastrous implications for opportunity and, by extension, for the very idea of America.

“The moral claim that each individual has the right to succeed is implicit in our ‘creed,’ the Declaration of Independence, when it proclaims ‘All men are created equal.’

“There is a simple formula here — equality plus independence adds up to the promise of upward mobility — which creates an appealing image: the nation’s social, political, and economic landscape as a vast, level playing field upon which all individuals can exercise their freedom to succeed.

“Many countries support the idea of meritocracy, but only in America is equality of opportunity a virtual national religion, reconciling individual liberty — the freedom to get ahead and “make something of yourself” — with societal equality. It is a philosophy of egalitarian individualism. The measure of American equality is not the income gap between the poor and the rich, but the chance to trade places.

“The problem is not that the United States is failing to live up to European egalitarian principles, which use income as a measure of equality. It is that America is failing to live up to American egalitarian principles, measured by the promise of equal opportunity for all, the idea that every child born into poverty can rise to the top.”

There’s a lot of data to back up what Reeves is saying. See, e.g., this study from Stanford, which included these findings:

“Parents often expect that their kids will have a good shot at making more money than they ever did…. But young people entering the workforce today are far less likely to earn more than their parents when compared to children born two generations before them, according to a new study by Stanford researchers.”

The New American Meritocracy

Along with Richard Reeves, philosopher Matthew Stewart and entrepreneur Steven Brill cite the same economic and related social data to support their conclusion that the new meritocrat socio-economic class has barred the way for the rest of us. I’ll let Matthew Stewart speak for the others[5]:

“I’ve joined a new aristocracy now, even if we still call ourselves meritocratic winners. To be sure, there is a lot to admire about my new group, which I’ll call—for reasons you’ll soon see—the 9.9 percent. We’ve dropped the old dress codes, put our faith in facts, and are (somewhat) more varied in skin tone and ethnicity. People like me, who have waning memories of life in an earlier ruling caste, are the exception, not the rule.

“By any sociological or financial measure, it’s good to be us. It’s even better to be our kids. In our health, family life, friendship networks, and level of education, not to mention money, we are crushing the competition below.

“The meritocratic class has mastered the old trick of consolidating wealth and passing privilege along at the expense of other people’s children. We are not innocent bystanders to the growing concentration of wealth in our time. We are the principal accomplices in a process that is slowly strangling the economy, destabilizing American politics, and eroding democracy. Our delusions of merit now prevent us from recognizing the nature of the problem that our emergence as a class represents. We tend to think that the victims of our success are just the people excluded from the club. But history shows quite clearly that, in the kind of game we’re playing, everybody loses badly in the end.

“So what kind of characters are we, the 9.9 percent? We are mostly not like those flamboyant political manipulators from the 0.1 percent. We’re a well-behaved, flannel-suited crowd of lawyers, doctors, dentists, mid-level investment bankers, M.B.A.s with opaque job titles, and assorted other professionals—the kind of people you might invite to dinner. In fact, we’re so self-effacing, we deny our own existence. We keep insisting that we’re ‘middle class.’

“One of the hazards of life in the 9.9 percent is that our necks get stuck in the upward position. We gaze upon the 0.1 percent with a mixture of awe, envy, and eagerness to obey. As a consequence, we are missing the other big story of our time. We have left the 90 percent in the dust—and we’ve been quietly tossing down roadblocks behind us to make sure that they never catch up.”

Two Stories, One Man

In a remarkable display of self-awareness and historical-cultural insight, Stanford professor David Labaree admits that his own upward mobility story can be told two ways — one that illustrates the myth and one that doesn’t, depending on your point of view.[6]

“Occupants of the American meritocracy are accustomed to telling stirring stories about their lives. The standard one is a comforting tale about grit in the face of adversity – overcoming obstacles, honing skills, working hard – which then inevitably affords entry to the Promised Land. Once you have established yourself in the upper reaches of the occupational pyramid, this story of virtue rewarded rolls easily off the tongue. It makes you feel good (I got what I deserved) and it reassures others (the system really works).

“But you can also tell a different story, which is more about luck than pluck, and whose driving forces are less your own skill and motivation, and more the happy circumstances you emerged from and the accommodating structure you traversed. As an example, here I’ll tell my own story about my career negotiating the hierarchy in the highly stratified system of higher education in the United States. I ended up in a cushy job as a professor at Stanford University.

“Is there a moral to be drawn from these two stories of life in the meritocracy? The most obvious one is that this life is not fair. The fix is in. Children of parents who have already succeeded in the meritocracy have a big advantage over other children whose parents have not. They know how the game is played, and they have the cultural capital, the connections and the money to increase their children’s chances for success in this game.

“In fact, the only thing that’s less fair than the meritocracy is the system it displaced, in which people’s futures were determined strictly by the lottery of birth. Lords begat lords, and peasants begat peasants. In contrast, the meritocracy is sufficiently open that some children of the lower classes can prove themselves in school and win a place higher up the scale.

“The probability of doing so is markedly lower than the chances of success enjoyed by the offspring of the credentialed elite, but the possibility of upward mobility is nonetheless real. And this possibility is part of what motivates privileged parents to work so frantically to pull every string and milk every opportunity for their children.”

Pause for a moment and wonder, as I did, why would the new meritocrats write books and articles like these? Is it a case of Thriver (Survivor) Guilt? Maybe, but I think it’s because they’re dismayed that their success signals the end of the American equal opportunity ideology. You don’t trample on something sacred. They didn’t mean to. They’re sorry. But now that they have, maybe it wasn’t so sacred after all.

The new socio-economic class system was never supposed to happen in America. We weren’t supposed to be like the Old World our founders left behind. But now we are, although most of us don’t seem to know it, and only a few brave souls will admit it. Meanwhile the Horatio Alger mansions are all sold out, and the gate to the community is locked and guarded. That kind of thing just doesn’t happen in America.

Until it did.

[1] The Declaration of Independence.

[2] Low Employment Isn’t Worth Much if the Jobs Barely Pay, The Brookings Institute, Jan. 8, 2020.

[3] The Shock Doctrine: The Rise of Disaster Capitalism, Naomi Klein (2017).

[4] The best source I’ve found for the American history we never learned is Americana: A 400-Year History of American Capitalism, Bhu Srinivasan (2017).

[5] Matthew Stewart is the author of numerous books and a recent article for The Atlantic called The 9.9 Percent is the New American Meritocracy. Steven Brill is the founder of The American Lawyer and Court TV, and is the author of the book Tailspin: The People and Forces Behind America’s Fifty-Year Fall–and Those Fighting to Reverse It and also the writer of a Time Magazine feature called How Baby Boomers Broke America. The quoted text is from Stewart’s Atlantic article.

[6] Pluck Versus Luck, Aeon Magazine (Dec. 4. 2019) –“Meritocracy emphasises the power of the individual to overcome obstacles, but the real story is quite a different one.”

School’s Out, What’s Next?

Mini bua

In November 2016, one of my daughters and I shared an espresso and a big life conversation at the Minibus Café in Gangnam, Seoul. (Yes, as in Gangnam Style.) At one point, I told her someone in her generation ought to go to grad school (probably in London, I guessed) and develop an economic model to make sense of the new economy and its new paradigm job market.

“Maybe you should,” she replied.

So I did, but minus grad school, London. and the economic model. Instead, “maybe you should” became the ultimate autodidactic independent study, touching nearly all academic disciplines. By now, three years later, I’ve gotten the college education I was too clueless to get when I was there. (I was definitely a case for “college is wasted on the young.”) The learning got personal, too – it explained my own economic and work history in surprising ways that put to rest several career ghosts,

All that, from studying economics and jobs! Who would have thought?!

I started reading and researching in January 2017, and started blogging half a year later. Each post was a 750-1,000 word paper due every week, quoting experts and citing sources. I had no intention of becoming an economist, and did my best to dodge political polarizing. I just wanted to understand the world my kids were growing up in (the same world I was growing old in). Jobs and careers and surviving in the “real world” weren’t the same — I knew that much; I wanted to know more.

Today’s post is #128. Even that many hasn’t emptied my research files. Plus, I’d seen over and over how much economic conversation relies on long-held ideas that don’t work anymore. To move on, we need to challenge our cherished but outdated beliefs and institutions. So I started another blog whose goal is to do that in areas other than economics.

I decided early on to keep studying economics and jobs only until I stopped uncovering new topics – kind of like when Bono said U2 would stop making albums when they became irrelevant. Last summer, I thought I was close to that point, but things kept coming up … until the past two “Reckoning” posts, when I thought surely this is it, surely school’s finally out.

But now I’m not so sure.

All told, I’ve been blogging for nearly nine years on a series of topics that usually last 1-3 years. A couple were collected into books (free to download here, or available from Amazon for a price here and here). But another cut and paste job from this blog didn’t feel right. Blog posts are about the topic du jour, which is great for learning and keeping up, but lacks continuity. Meanwhile, as I’ve been researching this series, I’ve developed a fondness for “long reads” – articles 3-4 times longer than the ones I’ve been writing. They invite both writer and reader to slow down, be more thorough.

I’ve therefore decided to keep my promise and stop blogging – both here and in my other blog – and instead write longer, less frequent, more developed articles. In this forum, I’ll go back, organize past material thematically, update the research, find out what the authors I quoted have to say now, find new people with new things to say, and generally follow new rabbit trails as I’ve done before.

School’s out, but I’m not done learning.

That’s what’s next for 2020. Thanks for reading, following, and sharing.

Click the image below, have a listen, and remember what it’s like to be a kid on June 1st.

Alice Cooper

Out for summer, out ‘til fall,
We might not go back at all

School’s Out, Alice Cooper

Progressive Capitalism

torn dollar bill

Torn dollar bill image source and license.

We’ve been looking at economic winners and losers in the zero-sum economy — particularly in the context of higher education, where cultural belief in the importance of college and post-graduate degrees on upward mobility and success in the job market is driving behavior that harms both parents (the college admissions scandal) and the economic and mental health of their children (student loan debt, general anxiety disorder, depression, suicide).

This series of blog posts is now in its third year — throughout, we’ve seen how hyper-competitive capitalism and its staunch faith in the implicit justice of the “free” market is causing other economic loses. For example:

  • the stagnation of middle class real incomes;
  • the rise of the numbers of statistically poor people in the U.S.;
  • the dismantling of compassionate social safety nets in favor of expensive, counterproductive, and humiliating replacements;
  • the rise of the “rentier” economy in which formerly public benefits have been privatized, making them accessible only to those who can afford them through the payment of economic “rents”;
  • the end of the American ideal of upward social and economic mobility;
  • the high cost of housing and the death of the American dream of home ownership;
  • the elimination of “normal” jobs through off-shoring, outsourcing, and the delegation of productivity to intelligent machines;
  • the advent of the short-term, contract-based “gig economy” with its lack of fringe benefits and its precarious prospects for sustainable income;
  • economic inequality that favors the wealthiest of capitalists at the expense of the bottom 90% (or 99%, or 99.9%, depending on your data and point of view);
  • the creation instead of an insular top-level “meritocrat” socio-economic class;
  • the new state of “total work” and the “monetization” of goods and services;
  • rising rates of career burnout, mental illness, and suicide resulting from social isolation and the vain struggle to find meaning and purpose at work;
  • the rise of corporate nation-states with economic and policy-making power that dwarfs that of many governmental nation-states;
  • the private (non-democratic) social policy-making initiatives of the wealthiest elites;
  • and much, much more.

Nobody meant economic policy to do this, but it has, for roughly the past 30-40 years. Good intentions; unplanned results.

We’ve seen that both plutocrats and progressives advocate for systemic change, while status quo inertia weighs in on the side of those who don’t see what all the fuss is about, since capitalism is undeniably the best economic option and always has been, and besides it’s still working just fine, thank you very much. Instead of meaningful discourse, we have a predominant nostalgic, populist doubling down on the neoliberal socio-economic cultural ideology that jet-propelled post-WWII recovery but finished running its course in the 1970s, while the retrenchers and the media slap those who beg to differ with the kiss-of-death label “progressive.” As a result, we’re left with incessant lobbing from one end of the polarized spectrum to the other of ideological bombs that originate in data and analysis skewed by cognitive biases, intentional blindness, and fake news . Economic policy-making resembles WWI trench warfare — a tactical grinding down of the opposition and the numbing and dumbing of everyone else. It was a bad idea then, and it’s still a bad idea now.

I had no idea this is what I was getting into when I decided three years ago to research and write about the new economy and the future of work.

It’s in the context of this toxic environment that Economics Nobel Laureate Joseph E. Stiglitz, offered his “progressive capitalism” alternative, based on “the power of the market to serve society.” Progressive Capitalism Is Not an Oxymoron: We can save our broken economic system from itself, New York Times (April 19, 2019). His article, like virtually all of the economics books and articles I read these days, begins with a long parade of evils and ends with a handful of policy ideas. His version of the former is by now quite familiar:

“Despite the lowest unemployment rates since the late 1960s, the American economy is failing its citizens. Some 90 percent have seen their incomes stagnate or decline in the past 30 years.

“This is not surprising, given that the United States has the highest level of inequality among the advanced countries and one of the lowest levels of opportunity — with the fortunes of young Americans more dependent on the income and education of their parents than elsewhere.

“There is a broader social compact that allows a society to work and prosper together, and that, too, has been fraying. America created the first truly middle-class society; now, a middle-class life is increasingly out of reach for its citizens.

“We confused the hard work of wealth creation with wealth-grabbing (or, as economists call it, rent-seeking).

“Just as forces of globalization and technological change were contributing to growing inequality, we adopted policies that worsened societal inequities.

“Even as economic theories like information economics (dealing with the ever-present situation where information is imperfect), behavioral economics and game theory arose to explain why markets on their own are often not efficient, fair, stable or seemingly rational, we relied more on markets and scaled back social protections.

“Politics has played a big role in the increase in corporate rent-seeking and the accompanying inequality.

“Markets don’t exist in a vacuum; they have to be structured by rules and regulations, and those rules and regulations must be enforced.

“We are now in a vicious cycle: Greater economic inequality is leading, in our money-driven political system, to more political inequality, with weaker rules and deregulation causing still more economic inequality.

“If we don’t change course matters will likely grow worse, as machines (artificial intelligence and robots) replace an increasing fraction of routine labor, including many of the jobs of the several million Americans.

“The prescription follows from the diagnosis: It begins by recognizing the vital role that the state plays in making markets serve society.

“Progressive capitalism is based on a new social contract between voters and elected officials, between workers and corporations, between rich and poor, and between those with jobs and those who are un- or underemployed.

“Part of this new social contract is an expanded public option for many programs now provided by private entities or not at all

“This new social contract will enable most Americans to once again have a middle-class life.

“The neoliberal fantasy that unfettered markets will deliver prosperity to everyone should be put to rest.

“America arrived at this sorry state of affairs because we forgot that the true source of the wealth of a nation is the creativity and innovation of its people.”

His point seems to be that merely reciting litanies of economic woes won’t bring about systemic relief — for that, we need to embrace an essential factor:

Paradigms only shift when culture  shifts:
new ideas require new culture to receive them,
and new culture requires new belief systems.

Systemic change requires cultural change — remodeled institutions and revised social contracts that tether ideas to real life. Trying to patch policy ideas into the existing socio-economic system is like what would happen if a firm were to abruptly change its products, services, and strategic and marketing plans without bothering to change its mission statement, values and beliefs, and firm culture.

Like that’s going to work.

Coming up, we’ll look beyond policy bombs to the higher ground of revised cultural beliefs, starting with next week’s search for the “public” that’s gone missing from the Republic.

Can Capitalism Buy Happiness?

smiley face

Over two years ago, the first blog post in this series asked, “Can money buy happiness?” Today’s question looks past the medium of economic exchange to the more foundational sociological and psychological implications of contemporary hyper-competitive capitalism — a good example of which is the “meritocracy trap” we looked at last time, which clearly is not making capitalism’s elite happy, but instead is driving maladaptive behavior like the college admissions scandal.

The scandal evokes the kind of horrified fascination you get from reading the National Enquirer headlines in the checkout line:

“A teenage girl who did not play soccer magically became a star soccer recruit at Yale. Cost to her parents: $1.2 million.

“A high school boy eager to enroll at the University of Southern California was falsely deemed to have a learning disability so he could take his standardized test with a complicit proctor who would make sure he got the right score. Cost to his parents: at least $50,000.

“A student with no experience rowing won a spot on the U.S.C. crew team after a photograph of another person in a boat was submitted as evidence of her prowess. Her parents wired $200,000 into a special account.”

Actresses, Business Leaders and Other Wealthy Parents Charged in U.S. College Entry Fraud, New York Times (March 12, 2019)

What the…?

The parents who wrote those big checks now face a stiff legal price, but why did they do it in the first place? An ongoing discussion over the past several years[i] suggests an answer:  they did it because of the “meritocracy trap” as evident in higher education, — an economic necessity for more than just the elite — where the current dynamics of of how capitalism is practiced are a significant contributor to mental ill health.

A long article on that topic came out last weekend:  The Way Universities Are Run Is Making Us Ill’: Inside The Student Mental Health Crisis. The Guardian (Sept. 27, 2019). The subhead reads “A surge in anxiety and stress is sweeping UK campuses. What is troubling students, and is it the universities’ job to fix it?” The article’s U.K. examples mirror those that prompted the USA’s college admission scandal,. Predominant mental health issues on both sides of the Atlantic include general anxiety disorder, depression, and “an alarming number of suicides.” What’s behind all this? Consider these quotes from the article:

“In the drive to make universities profitable, there is a fundamental confusion about what they are for. As a result, there has been a shift from prizing learning as an end in itself to equipping graduates for the job market, in what for some can be a joyless environment.

“Studies have looked at the impact of social media, or lack of sleep caused by electronic devices, as well as the effects of an uncertain job market, personal debt and constricted public services.

“In his book Kids These Days: The Making of Millennials, Malcolm Harris … identifies the pressures of the labour market, rising student debt and a target-driven culture as contributing to steep increases in anxiety and depression among young people.

“Driving our universities to act like businesses doesn’t just cannibalise the joy of learning and the social utility of research and teaching; it also makes us ill,’ wrote Mark Crawford, then a postgraduate student union officer at UCL, in a 2018 piece for Red Pepper magazine… ‘It’s self-worth being reduced to academic outcomes, support services being cut, the massive cost of housing,’ he says.

“[Mental health authorities] have noticed a fall in participation. It’s getting harder to fill up events, most likely a symptom of the sharp increase in students living far away from campus to save money… Others have limited time as they juggle studies with paid work.

“For [Sean Cullen, a student featured in the article], money worries have been a grinding and ever-present aspect of his university experience. In his first year, he socialised more than he does now. But given that a single night out costs as much as a weekly food shop, he soon began to think twice about going out with friends. To complicate matters, the amount he receives from Student Finance England, the body responsible for student loans, changed year by year, with unpredictable amounts and repayment terms. “The financial aid is getting worse and worse, even though the cost of living is going up,” he says.

“In 2017, Cullen was elected as the student union’s disability officer… He heard accounts of mental health problems from hundreds of other students, many of whose experiences chimed with his own. ‘I’ve not yet met a student that hasn’t experienced high levels of stress while studying, whether it’s because of deadlines, balancing paid work, or problems with housing,’ he says.

“While many students survive more or less on their overdrafts, …many have mental health problems in their final year. ‘Nowadays, getting a degree doesn’t necessarily guarantee you a job, or not a better job than without one,’ he says.

“[The need to work many hours per week] has an impact not only on academic performance but on students’ ability to fully participate in university life.

“Students exhausted from working while studying full time, and still struggling to cover their basic living costs, are bound to be more anxious about deadlines and exams. ‘It’s all the environmental stuff that makes it more stressful… If you’re tired, you haven’t had time to study, you have to make a long journey to university, it’s all cumulative.’”

Cuts in social services, educational and housing costs, social isolation, student loans, constricted access to upward mobility, a stingy job market, precarious prospects for sustainable income, a struggle to find meaning and purpose at work… these are economic issues, not education issues. This series has looked at all of them. Next time we’ll look further into what’s behind them..

[1] See, for example, this NCBI study:  “Anxious? Depressed? You might be suffering from capitalism: Contradictory class locations and the prevalence of depression and anxiety in the United States.”

The End is at Hand

the end is at hand

… but you still might want to check out the bus schedule for your ride home.

I’ve been studying jobs and the new economy for nearly three years, and blogging about them for two. For reasons I’ll talk about later, I’ll be drawing this blog series to a close at the end of September. In the meantime, I thought this might be a good time to invite you to check out my other blog — here’s a link to its About page.

I say that because I just started a new “consciousness and the self” series there, and today I’m drafting an installment that borrows from an earlier post here, on the topic of “finding your true calling” in your vocation.

The other blog has a different focus than this one, but there’s some overlap in content, and I write it in the same style, with a commitment to research and letting the pros offer their opinions. If you like that approach, you might like what you find over there.

That’s all. Just wanted to give you a heads up. See you on Thursday with the next installment of “homo economicus.”

Burnout at the Top:  Trust in the Age of Artificial Intelligence

Fire

The late Paul Rawlinson, former Global Chair of Baker McKenzie, left a multifaceted  career legacy:

“Rawlinson, an intellectual property lawyer, achieved a number of triumphs in his professional career, including becoming the first British person to lead the global firm as chairman and overseeing a run of outstanding financial growth during his tenure.

“But a key part of Rawlinson’s legacy is also his public decision to step down from the chairman’s role in October, citing “medical issues caused by exhaustion.” He and his firm’s relative openness about the reasons for taking leave helped stimulate a wider discussion about the mental and physical stresses of the profession.”

Baker McKenzie Chairman Helped Erode Taboos About Attorney HealthThe American Lawyer (April 15, 2019)

Inspired by Rawlinson’s decision to step down, several other similarly-situated leaders went public with their own struggles.[1] Among their stressors was the challenge of how to lead their firms to meet the commercial demands of an era when artificial intelligence has already established its superiority over human efforts in legal research, due diligence, and discovery.[2] It’s not just about efficiency, it’s about the erosion of a key aspect of the attorney-client relationship:  trust. As Rawlinson wrote last year:

‘‘‘The robots are coming’. It’s fast becoming the mantra of our age. And it comes with more than a hint of threat. I’ve noticed especially in the last year or so the phrase has become the go-to headline in the legal news pages when they report on technology in our industry.

“For our profession – where for thousands of years, trust, diligence and ‘good judgement’ have been watchwords – the idea of Artificial Intelligence ‘replacing’ lawyers continues to be controversial. From law school and all through our careers we are taught that the Trusted Advisor is what all good lawyers aspire to become.

“The fundamental issue is trust. Our human instinct is to want to speak to a human. I don’t think that will change. Trust is what we crave, it’s what separates us from machines; empathy, human instinct, an ability to read nuances, shake hands, and build collaborative relationships.”

Will Lawyers Become Extinct In The Age Of Automation? World Economic Forum (Mar. 29, 2018)

Rawlinson acknowledged that clients are often more concerned with efficiency than preserving the legal profession’s historical trust-building process, demanding instead that “lawyers harness AI to make sure we can do more with less… Put simply, innovation isn’t about the business of law, it’s about the business of business.” As a result, Rawlinson’s goal was to find ways his firm could “use AI to augment, not replace, judgement and empathy.”

Speaking from the client point of view, tech entrepreneur and consultant William H. Saito also weighed in on the issue of trust in an AI world.

“As homo sapiens (wise man), we are ‘wise’ compared to all other organisms, including whales and chimpanzees, in that we can centralize control and make a large number of people believe in abstract concepts, be they religion, government, money or business. .. This skill of organizing people around a common belief generated mutual trust that others would adhere to the belief and its goals.”

“Looking back at our progress as a species, we can distinguish several kinds of trust that have evolved over time.

“There is the ability to work together and believe in others, which differentiates us from other animals, and which took thousands of years to develop;

“trust associated with money, governments, religion and business, which took hundreds of years;

“trust associated with creating the “bucket brigade” of passing packets of data between unfamiliar hosts that is the internet, which took decades; and

“network trust that has enabled new business models over the past few years.

“Not only is this rate of change accelerating by an order of magnitude, but the paradigm shifts have completely disrupted the prior modes of trust.”

This Is What Will Keep Us Human In The Age Of AI, World Economic Forum (Aug. 4, 2017)

Rawlinson asked, “will lawyers become extinct?” Saito asked, “Are we humans becoming obsolete?” Both men wrote from a globalized perspective on big policy issues, and the stress of facing them took its toll. Rawlinson’s case of burnout was ultimately terminal. As for Saito, a fter writing his article on trust, he was discredited for falsifying his resume — something he clearly didn’t need to do, given his remarkable credentials. That he would do so seems appropriate to his message, which was that trust in the AI age is not about human dependability, instead it’s about cybersecurity. I.e., in the absence of human judgment and collaboration, your technology had better be impeccable.

Most of us don’t live at the rarified level of those two men. We live where trust still means “empathy, human instinct, an ability to read nuances, shake hands, and build collaborative relationships.”

Or, as my daughter summed it up when I told her about this article, “Buy local, trust local.”

Photo by Ricardo Gomez Angel on Unsplash.

[1] On May 12, 2019, The American Lawyer introduced a year-long initiative Minds Over Matters: A Yearlong Examination of Mental Health in the Legal Profession “to more deeply cover stress, depression, addiction and other mental health issues affecting the legal profession.”

[2] It’s also changing appellate practice, which makes it easy to predict we’ll soon see AI court opinions.

Burned Out? Try a Little Tenderness

otis redding

Thanks to Julian Izbiky for sharing “Does Taking Time For Compassion Make Doctors Better At Their Jobs?NPR (April 28, 2019). It’s about doctor burnout, but its lessons apply equally to lawyers[1] and anyone else who might benefit from the “helper therapy principle” — the idea that helping someone helps yourself — something research shows is especially useful as an antidote to career burnout.

The article profiles the research of Dr. Stephen Trzeciak and Dr. Anthony Mazzarelli, colleagues in a major medical system looking to improve patient care. They started with a question:  “Can treating patients with medicine and compassion make a measurable difference on the wellbeing of both patients and doctors?” 1,000 scientific abstracts and 250 research papers convinced them the answer was a resounding yes.

“When health care providers take the time to make human connections that help end suffering, patient outcomes improve and medical costs decrease. Among other benefits, compassion reduces pain, improves healing, lowers blood pressure and helps alleviate depression and anxiety.”

The two c-authored Compassionomics: The Revolutionary Scientific Evidence that Caring Makes a Difference to describe their findings and to prescribe how compassion can be learned. And once it’s learned, a little goes a long way:

“One study they cite shows that when patients received a message of empathy, kindness and support that lasted just 40 seconds their anxiety was measurably reduced.”

Plus, it was as blessed to give as to receive:

“But compassion doesn’t just benefit its recipients … Researchers at the Wharton School of the University of Pennsylvania found that when people spent time doing good for others … it actually changed their perception of time to make them feel they had more of it.

“For doctors, this point is crucial. Fifty-six percent say they don’t have time to be empathetic.

“‘The evidence shows that when you invest time in other people, you actually feel that you have more time, or that you’re not so much in a hurry,’ Trzeciak says.”

Did you catch that? Taking a moment to connect human-to-human “actually changed their perception of time to make them feel they had more of it” — an astonishing concept for doctors and lawyers enslaved to a clock that measures time, money, and productivity in six-minute increments.[2]

That’s not the only paradigm-shifting implication of Trzeciak and Mazzarelli’s findings:

“‘We’ve always heard that burnout crushes compassion. It’s probably more likely that those people with low compassion, those are the ones that are predisposed to burnout,’ Trzeciak said. ‘That human connection — and specifically a compassionate connection — can actually build resilience and resistance to burnout.’

“Trzeciak and Mazzarelli hope their evidenced-based arguments will spur medical schools to make compassion part of the curriculum.”

How about we add it to the law school curriculum, too?

And thanks to “helper’s high,” the benefits of compassion and connection extend to non-professional work as well. Just think what that would do for “customer service.” (Those Discover commercials are the good, this is the bad and the ugly — and the funny.) And according to this Psychology Today article, you can feel the benefits:

“Helpers report a distinct physical sensation associated with helping; about half report that they experienced a “high” feeling, 43 percent felt stronger and more energetic, 28 percent felt warm, 22 percent felt calmer and less depressed, 21 percent experienced greater feelings of self-worth, and 13 percent experienced fewer aches and pains.”

Emily Esfahani Smith’s widely-cited book, The Power of Meaning:  Crafting a Life That Matters (2017), makes the same point:  relationships and helping create meaning and chase away burnout. That’s was also the message of a 1997 classic on the subject, The Truth About Burnout: How Organizations Cause Personal Stress and What to Do About It, which also observed that burnout is both endemic and epidemic in workplace culture:

“Burnout is reaching epidemic proportions among North American workers today. It’s not so much that something has gone wrong with us but rather that there have been fundamental changes in the workplace, and the nature of our jobs.

“The conventional wisdom is that burnout is primarily a problem of the individual. That is, people burn out because of flaws in their characters, behavior, or productivity. According to this perspective, people are the problem, and the solution is to change them or get rid of them.

“But our research argues most emphatically otherwise, As a result of extensive study, we believe that burnout is not a problem of the people themselves but of the social environment in which people work. The structure and functioning of the workplace shape how people interact with one another and how they carry out their jobs. When the workplace does not recognize the human side of work, then the risk of burnout grows, carrying a high price with it.”

Dr. Trzeciak used his research findings to turn around his own career burnout. Here’s his TEDxPenn talk. He also “prescribes the same for anyone, not just health care providers, suffering from mental or emotional exhaustion.”

“‘Look around you and see those in need of compassion and give your 40 seconds of compassion,’ he says. ‘See how it transforms your experience.’”

Julian Izbiky wrote this when he emailed me the article:  “I’ve always thought that the practice of law was about more than the documents and that the joy of the practice was connecting with the clients and the other participants in the deals.”

Got 40 seconds to give it a try?

And now, if you’re like me, Otis Redding’s “Try a Little Tenderness” has been playing in the background. How about a listen? Here’s his version. And here’s the Three Dog Night cover.

[1] As I’ve said before, burnout is legion in the professions. I Googled “burnout doctors lawyers” and got tons of hits, including this one:  “I Fought The Law And The Law Won: My Burnout Story,” Forbes (May 17, 2018).

[2] Here’s a brief history of the billable hour in legal practice. The rationale for it might have seemed sound 60 years ago; my personal view is we could move on. Nobody kept timesheets at my firm.

“Find Your Passion” — Smooth Ride or Train Wreck?

train trestle

You follow an interest to a career. If you’re really interested, your career might become your passion. So why not go straight for your passion as a career strategy?

It depends whether you operate with a “fixed” or “growth” theory about what interests you. “Follow your passion” might work if you’re a growth theory person. But if you’re a ‘fixed theory” person, it could be a disaster.

That’s the message of “The Truth About Finding a Satisfying Career:  Why Linking Your Work to Your Interests Can do More Harm Than Good.” Medium (Jan. 22, 2019).

“You hear it everywhere. It’s on graduation cards, in motivational speeches, and practically wallpapers the halls of Silicon Valley: ‘Find your passion.’ As if each of us was born with one ideal pursuit that will fulfill us until our final day on Earth. All we need to do is locate it, and everything else will fall into place.

“The problem isn’t just that this is totally unrealistic; according to psychologist Paul O’Keefe, a professor at Yale-NUS College in Singapore, it’s also selling us short in our careers, our studies, and how we interact with the world. In a recent study titled Implicit Theories of Interest, O’Keefe and his co-authors, two psychologists from Stanford, identified a compelling case against the idea of finding your one true passion.”

“We got inspired because of the saying ‘find your passion,’” O’Keefe said in an interview with the article’s author.

“It’s something you hear all the time, and we were thinking a potentially unintended consequence is that it’s suggesting to people that a passion is there somewhere, like buried treasure: You just need to awaken it, or find it, or reveal it in some way.

“So we started thinking, well, what is the consequence of believing that it’s there waiting to be uncovered? That’s essentially the idea of a fixed theory of interest, the belief that interests are inherent and relatively unchanging. If you’ve already found your interest, and you think you have these limited, inherent interests, then there’s no reason, logically, to keep searching or exploring for other interests.

“But if you have a growth theory, you believe interests are developed. So even if you already have a very strong interest or passion, it wouldn’t preclude you from exploring new things or developing new interests.”

A fixed theory means you believe there’s a career passion out there with your name on it. If you don’t find it, you’ll be frustrated. In fact, “the rallying cry to ‘find your passion’ may actually be the blind spot that ultimately cripples your resume.” Better for you to stay where you are and deepen your expertise instead of chasing after a passion you’ll never find.

On the other hand, if you operate from a growth theory, you’ll “expect [your career] to be a developmental process that has difficulties from time to time.” As a result you’ll accept career disenchantment as part of “the nature of things,” and be energized, not demoralized, by the need to try something new — a useful outlook in today’s job marketplace:

“Growth theory, we think, is extremely advantageous for people’s careers. The world is becoming more globalized, it’s becoming more complex, and it’s about seeing how information is integrated, and how solutions can be much more interdisciplinary. We think people with a growth mindset might be drawn to these interdisciplinary careers, while people with a fixed theory might just want to live in their silo of interest.”

O’Keefe and his collaborators are unequivocal that “the idea that people must find their passion [is] sending, we think, a pretty terrible message to people.” Sure, “if a career can align with your interests or passions, that is the best-case scenario.” The trick to getting that best-case alignment is to know your theory of interest. But how would you find out?

You might try one of the study’s experiments:

“In one experiment, the researchers observed self-identified ‘techies’ and ‘fuzzies,’ Stanford lingo for liberal arts geeks, as each group read an article that pertained to their field. Not surprisingly, the participants enjoyed the articles relevant to their interests. But when they switched to read the less relevant article, the researchers made a discovery: Those [with a fixed theory] were less interested in learning about an unfamiliar field. By contrast, those [with a growth theory] were more engaged with the article outside their expertise.”

Your response might explain your patchwork resume — and maybe also why you’re okay with it.

Or it might save you from a career train wreck.