Can Capitalism Buy Happiness? [2]

smiley face

We’ve been looking at the zero-sum economy’s winners and losers — the new “meritocracy” vs. the “precariat” and the Millennials.

We’ve also seen that winners and losers find common ground in higher education, where students of all stripes are increasingly stressed to the point of mental ill-health  — not by the demands of higher learning, but by the enveloping culture of hyper-competitive capitalism.

One predictable response has been for the established, older, prosperous, and powerful to wag the shame finger and tell the kids to quit whining and buck up:

“Student protests and demands for better mental health services are frequently dismissed in the press. ‘We just can’t cope with essay deadlines, and tests stress us out, moan snowflake students,’ read a headline in the Daily Mail in November 2017. In September 2018, the Times described today’s students as ‘Generation Snowflake’ and suggested that ‘helicopter parents’ had ‘coddled the minds’ of young people.”

The way universities are run is making us ill: inside the student mental health crisis. The Guardian (Sept. 27, 2019).

Truth is, we just don’t like to talk about mental illness, and if we regard it at all, tend to shoo it away as a personal problem or character flaw. Plus, there are enduring cultural myths that capitalism and its marketplace are “free,” and that anyone can make it with enough gumption. Together, these attitudes foster the “snowflake” judgment.

Mental illness is ultimately about a clash between the “reality” of the individual deemed to be mentally ill and the “reality” of the prevailing culture.[i] Conventional thinking sides with the culture, and uses pharmaceutical and other therapeutic interventions to realign the individual. As a result, the list of economic stressors is accepted as part of the culture’s normal life to which individuals are expected to conform,

Meanwhile, viewed on its own terms — outside of its cultural context — the list itself is long and dismaying. For example:

  • There has been a forty-year drought in middle class real income growth, with most households drifting downward while an economic elite soars at the top.
  • The percentage of Americans who are considered to be poor by Federal standards is approaching 50% — meaning they have no or limited access to what were historically considered “public goods” such as shelter and sustenance, education and healthcare, etc.
  • Public support safety nets have been replaced by the privatization of essential services. The social services that remain are expensive for the government to administer and are demeaning and counter-productive for recipients;
  • Soaring educational costs mean soaring and strangling student loans.
  • Runaway housing costs have made conventional home ownership unaffordable for the lower economic classes.
  • Due to the rise of the “rentier” economy, the general public must increasingly pay capital holders for the use and enjoyment of essential resources and intellectual property.
  • Upward mobility for the lower 90% is now a thing of the past (the “glass ceiling”). Meanwhile the top 10% is protected against drifting downward (the “glass floor”).
  • Touted “job creation” is mostly “gig economy” contract work, with no assurances of sustainability and no benefits such as healthcare, retirement, etc.
  • Prospects for sustainable income are bleak, and the new job market requires the “hustle” and the “grind” and the monetization of everything in a state of “total work.”
  • Meanwhile, GDP “growth” is largely due to production increasingly shifted not just off-shore, but to intelligent machines. Benefits accrue to capital holders, not wage-earners.
  • These job trends have increasingly resulted in social isolation and an unfulfilled struggle to find meaning and purpose at work.
  • Meanwhile a new generation of huge and powerful “corporate nation-states” now challenge conventional notions of national sovereignty, democracy, and policy-making.
  • The same is true of “philanthrocapitalism” and “social entrepreneurship.”

And there’s more.

While “snowflake” judgments turn a blind eye, for the past several years there has been a counter commentary that looks at the list systemically:  it examines how the capitalistic over-culture creates social mental ill health which is then transmitted to the individual. I.e., it asks if the culture’s assimilation of contemporary capitalistic belief and practice has become toxic to the point that it is making both society and its individual members sick. This is a huge shift in perspective, which we’ll explore further.

[1] For more on how cultural beliefs create collective reality, you might take a look at this article, which evaluates mental health diagnosis and treatment in light of the Cartesian worldview that still dominates the western world:  i.e.,the dualistic thinking that separates the natural world, which can be known scientifically, from the realm of soul or spirit, which can’t. I have talked about how cultural beliefs created social reality in prior blog series in this forum. I also address it in my other blog.

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 Zero Sum Economy

The House Always Wins

“Zero sum” in game theory means somebody wins and somebody loses. Some people think that describes the economy.

This article chronicles current economic trends that only shift dollars from here to there, without adding value to the whole — for example workers job-hopping or companies e automating production. There are as many losers as winners, and nothing is gained.

Thomas Piketty’s classic Capital in the 21st Century extensively detailed how current economic practice is creating economic inequality at a record pace. Inequality means a tiny few at the top are the big winners while everybody else loses.

On the other hand, this explanation from Investopedia asserts that economic transactions are generally “positive sum”:

“When applied specifically to economics, there are multiple factors to consider when understanding a zero-sum game. Zero-sum game assumes a version of perfect competition and perfect information; that is, both opponents in the model have all the relevant information to make an informed decision. To take a step back, most transactions or trades are inherently non zero-sum games because when two parties agree to trade they do so with the understanding that the goods or services they are receiving are more valuable than the goods or services they are trading for it, after transaction costs. This is called positive-sum, and most transactions fall under this category.”

Similarly, this writer has an ideological bone to pick with the zero-summers — he’s frustrated that people just don’t get that every economic transaction is win-win and makes the pie bigger for everybody.

Meanwhile, this article first carefully describes the zero sum concept, then explains why you don’t want to win a zero-sum trade war.

And on it goes.

One thing is evident from all points of view:  there is no such thing as capitalism in the abstract; instead, capitalism is what economic policy makes it. As Investopedia explains:

“Nearly every proponent of capitalism supports some level of government influence in the economy. The only exceptions are anarcho-capitalists, who believe that all of the functions of the state can and should be privatized and exposed to market forces. Classical liberals, libertarians and minarchists argue that capitalism is the best system of distributing resources, but that the government must exist in order to protect private property rights through the military, police and courts.

“In the United States, most economists are identified as Keynesian, Chicago-school or classical liberal. Keynesian economists believe that capitalism largely works, but macroeconomic forces within the business cycle require government intervention to help smooth it out. They support fiscal and monetary policy, as well as other regulations on certain business activities. Chicago-school economists tend to support a mild use of monetary policy and a lower level of regulation.”

What Role Does The Government Play In Capitalism? Investopedia (June 26, 2019)

Therefore if the economy is zero sum, it’s not capitalism’s fault, it’s the capitalists’ fault. And if it’s positive sum, they should get the credit.

This article skips the debate and focuses on what the author sees as today’s biggest economic losers:

“For Millennials and the Gen Z who come after them, there are many disturbing signs of a transition to a new society, one based on wage stagnation, high debt to income levels and rising wealth inequality characterizing a capitalism that’s breaking down social economic mobility and the American dream at its core.

“It could be argued the middle class is being disrupted and the pain points of Millennials mean each subsequent generation of young Americans will feel these pains.

“These are some of the meta-trends that come to mind:

  • Wage stagnation
  • Student debt crisis
  • Part time and gig economy work imprisonment (like a glass ceiling for the lower middle class)
  • Rising costsof housing, healthcare and the affordability of the next milestone (home ownership, marriage, children)
  • Mental health issues surrounding technological addiction
  • Finding the right life-work balance while developing a career path that’s both economically and morally fulfilling
  • Loneliness epidemicwith isolation and unsubstantial support systems in place

“We are living in an era where an entire generation are ‘late bloomers’ by default, in a system that hasn’t just not just protected and empowered young people — but of a generation that suffer major disadvantages the youth of other generations didn’t even experience.

  • The affordability crisis millennials are dealing with is impacting their mental health at a time when they lack social support.
  • The affordability crisis and career uncertainty has made Millennials subject to dangerous combinations of vulnerability.
  • Financial struggles and ruthless capitalism has meant many Millennials have no hope of bettering their circumstances.
  • It’s scary but accurate to say ‘deaths of despair’ are increasing among young Americans.”

The  article has much more to say, and frankly it’s not the most carefully constructed piece of the hundreds (maybe thousands) I’ve reviewed in the past two and a half years, but I cite it because it captures the desperation of the “precariat” — a term economist Guy Standing applies to “millions of people obliged to accept a life of unstable labour and living, without an occupational identity or corporate narrative to give to their lives.”

My kids are members of the precariat, which makes them economic losers. So are their friends.

Never thought I’d see the day.

We’ll look more at the zero sum economy next time.

“What Do You Do?”

Anybody else remember when “networking” was something you did at cocktail parties? That was before it became a fact of computerized life — see this pictorial history . The idea of old-style networking mostly gets eye rolls these days — too much objectifying, I’d guess — but it’s not dead yet:  as this promo for Social Media Marketing World 2020 makes clear.

The standard cocktail party question is, of course, “What do you do?” Turns out we’ve been asking and answering that question the same way for 114 years — ever since German sociologist and political economist Max Weber published The Protestant Ethic and the Spirit of Capitalism.[1]

“We use the word ‘capitalism’ today as if its meaning were self-evident, or else as if it came from Marx, but this casualness must be set aside. ‘Capitalism’ was Weber’s own word and he defined it as he saw fit. Its most general meaning was quite simply modernity itself: capitalism was ‘the most fateful power in our modern life’. More specifically, it controlled and generated ‘modern Kultur’, the code of values by which people lived in the 20th-century West, and now live, we may add, in much of the 21st-century globe.

“The idea that people were being ever more defined by the blinkered focus of their employment was one he regarded as profoundly modern and characteristic.

“The blinkered professional ethic was common to entrepreneurs and an increasingly high-wage, skilled labour force, and it was this combination that produced a situation where the ‘highest good’ was the making of money and ever more money, without any limit. This is what is most readily recognisable as the ‘spirit’ of capitalism

“It is an extremely powerful analysis, which tells us a great deal about the 20th-century West and a set of Western ideas and priorities that the rest of the world has been increasingly happy to take up since [the end of WWII and the advent of neoliberal economics].”

What Did Max Weber Mean By The ‘Spirit’ Of Capitalism? Aeon Magazine (June 12, 2018)

“What do you do?” was culturally relevant for most of the 20th Century, when jobs as we normally think of them were still around — but not so much today, especially for the new socio-economic lower class known as “the precariat.”

 “Globalization, neo-liberal policies, institutional changes and the technological revolution have combined to generate a new global class structure superimposed on preceding class structures. This consists of a tiny plutocracy (perhaps 0.001 per cent) atop a bigger elite, a ‘salariat’ (in relatively secure salaried jobs, ‘proficians’ (freelance professionals), a core working class, a precariat and a ‘lumpen precariat’ at the bottom.

“The precariat, which ranks below the proletariat in income, consists of millions of people obliged to accept a life of unstable labour and living, without an occupational identity or corporate narrative to give to their lives. Their employers come and go, or are expected to do so.

“Many in the precariat are over-qualified for the jobs they must accept; they also have a high ratio of unpaid ‘work’ in labour — looking and applying for jobs, training and retraining, queuing and form-filling, networking or just waiting around. They also rely mainly on money wages, which are often inadequate, volatile, and unpredictable. They lack access to rights-based state benefits and are losing civil, cultural, social, economic and political rights, making them supplicants if they need help to survive.”

The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay, Guy Standing (2017)

I Googled “how to answer ‘what do you do?’” and got lots of articles about how to give your answer the right spin and turn the question into meaningful conversation — mostly directed at job applicants and people who hate their jobs — but the question’s relevance as an accurate reflection of Kultur is lost to the “gig economy” where the precariat hang out. It could be worse, though:  you could be a member of the “lumpen precariat.” Again from Guy Standing:

 “Below the precariat in the social spectrum is what might be called a ‘lumpen-precariat,’ an underclass of social victims relying on charity … Their numbers are rising remorselessly; they are a badge of shame on society.”

I’ve written before about how I made an ill-timed (at the height of the Great Recession) and otherwise disastrous exit from law practice for a new creative career that bombed,[2] while at the same time dealing with an as-yet-undiagnosed onset of “Primary Progressive MS” (the most degenerative kind you can get). During those years, I barely slowed down as I crashed through “precariat” on the way down from “salariat,” before ending up on the roles of the “disabled,”  a lumpen subclass. I did some awkward old-style networking during those years, and eventually developed my own Q&A. When asked “what do you do?” I would simply describe what I’d been doing that day. When it was my turn, I simply asked, “Who are you?”

Great conversation starters, as it turned out.

Photo is from Nimble Bar Co., re: how to throw an unforgettable party.

[1] Naturally there’s been lots of argument about whether the work ethic was Protestant or Catholic… and if Protestant, if it would be more properly “Calvinist” or “Puritan.” Sigh.

[2] For the full story, see my book Life Beyond Reason:  A Memoir of Mania, available here as a free download and on Amazon for cheap. It’s a short, quick read, I promise.

Whatever Happened to Working For a Living? (Cont’d.)

“Politically, every transformation has begun
with a repudiation of the certainties of the previous age.”

– Economist Guy Standing

Last time, I quoted at length from economist Guy Standing’s analysis of how the notion of working for a living has historically fared under the social democracy and neoliberalism economic models. Prof. Standing believes that, as a result of the developments chronicled there, a new class system now dominates the working world. Again, I’ll quote from his book The Corruption of Capitalism (2016):

“Globalization, neo-liberal policies, institutional changes and the technological revolution have combined to generate a new global class structure superimposed on preceding class structures. This consists of a tiny plutocracy (perhaps 0.001 per cent) atop a bigger elite, a ‘salariat’ (in relatively secure salaried jobs, ‘proficians’ (freelance professionals), a core working class, a precariat and a ‘lumpen precariat’ at the bottom. The plutocracy, elite, salariat, and proficians enjoy not just higher incomes but gain most (or an increasing part) of their income from capital and rental income.

“The three classes below them gain nothing in rent. Indeed, increasingly they pay rent in some form to the classes above them. First, there is the shrinking proletariat, relying mainly on labour in stable, mostly full-time jobs, with schooling that matches the skills their jobs require. The precariat, which ranks below the proletariat in income, consists of millions of people obliged to accept a life of unstable labour and living, without an occupational identity or corporate narrative to give to their lives. Their employers come and go, or are expected to do so.

“Many in the precariat are over-qualified for the jobs they must accept; they also have a high ratio of unpaid ‘work’ in labour — looking and applying for jobs, training and retraining, queuing and form-filling, networking or just waiting around. They also rely mainly on money wages, which are often inadequate, volatile, and unpredictable. They lack access to rights-based state benefits and are losing civil, cultural, social, economic and political rights, making them supplicants if they need help to survive.

“This precariat is all over the world… For instance, more Americans today see themselves as in the lower classes. In 2000, according to Gallup polls, 63 percent saw themselves as middle-class and 33 percent as lower-class. In 2015, 51 percent saw themselves as middle-class and 48 percent as lower-class. Similar trends have been reported elsewhere.

“Below the precariat in the social spectrum is what might be called a ‘lumpen-precariat,’ an underclass of social victims relying on charity, often homeless and destitute, suffering from social illnesses including drug addiction and depression. … Their numbers are rising remorselessly; they are a badge of shame on society.”

Prof. Standing’s unique contribution to the conversation about work, happiness, and meaning is his identification of the new social strata. The balance of his analysis is not unique — as he says above, it has been reported “all over the world.” In the coming weeks, we’ll look at various implications of these findings:

  • The old job market’s last stand — “bullshit jobs”;
  • Whether the middle class is truly vanishing;
  • Whether a rising tide truly does float all boats;
  • Why this might be a good time for a new vision of utopia; and
  • Why law firms might want to make their next associate hire a robot.

And much more. Stay tuned.