Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Tuesday, September 8, 2009

Game Called: An Economic Parable in Nine Innings

The 2009 incarnation of the Portland Beavers ended their season yesterday afternoon.Thankfully.

This year's version of the AAA ballclub wasn't the worst - the old ragtime era Beavers still hold that record - but it was in the running. The current rubber dummy wearing a Beaver suit is a wholly owned subsidiary of the San Diego Padres, one of Major League Baseball's 2009 Queens of Suck, and among the worst franchises in the game. Their best player is Tony Gwynn, who hit an assload of singles and not much else. Gwynn, therefore, is the perfect embodiment of the San Diego Padres; anti-Zen baseball in which a hell of a lot of activity means absolutely nothing.

And this is who OWNS the Portland Beavers.

Now bear with me here, because I'm going to go a long way around to make a point.

First of all, the Portland Beavers' 2009 season encapsulates, in almost perfect awfulness, the state of professional baseball in the Stygian depths below the big leagues.

The Bevos lost 84 games this year. During this process they went through three managers and 69 - count 'em, sixty-nine, soixante-neuf - players. A grand total of about 370,000 people came to watch this debacle, this mutual fellatio of baseball ineptitude, almost 5,300 per home game. Despite this the owner of the Beavers, Merrit Paulson, is quoted as saying:
"I wouldn't say that losses have impacted us from a business standpoint, but that said, we were way below .500 in 2007, we're way below .500 now and 2006 wasn't a particularly good year either," he said. "You'd like to be able to compete."
Think about that for a moment.

This team finished dead last. They have now finished either last, or close to last, since winning the Pacific Coast League in 2004. Their 4-year record or 320 losses is second-worst in the PCL. And yet...and yet...the team owner says that he wouldn't say "that losses have impacted us from a business standpoint."

In other words...lose? Who gives a shit? We're making money!!

And why is this?

Because, simply stated, the Portland Beavers are slaves. They exist not as an independent entity free to succeed or fail on their own merits. They are compost, a creche' for ballplayers, the reeking humus from which San Diego Padres are grown. The ownership in San Diego has zero - absolutely no - interest in the piddly little PCL "pennant race" and neither do any of the other real PCL team owners, the big league clubs. They will continue to inject money into the corpse of baseball in Portland, Las Vegas and Modesto so long as the walking dead thing grows players for them.What is happening in Portland - and Little Rock, and in Boise, and in Wilmington, Delaware, and in Ossinning, New York and the other 18,415 cities, comunidades, towns, villages, urbanas and the one municipality (Anchorage, in case you're wondering) that don't enjoy one of the 28 teams that DO have the luxury of actually winning anything meaningful in the sport of baseball is a joke; a nasty, mean-spirited joke perpetrated by the Lords of Baseball and those in power who have accommodated their rapacious greed.

The Portland team exists only for its role in servicing the San Diego team; it is the whore, highly paid, lavishly compensated but whore nonetheless, of the Padres organization.

Is this right? Is this just? Should the peoples of Portland, and Boise, and Louisville, and all the other Portlands, Boises and Louisvilles, get a puppet show, a sham and an empty box, so that the people of San Diego can enjoy the Show?

For one thing, the slave minors, as presently organized, offer every player in them an orderly opportunity to make it to the Show. If you stay healthy and produce, you get moved up and, eventually, get a shot at the big club. The NFL, on the other hand, is all-or-nothing. If you get cut you might catch on in Canada, or picked up by another team. But the difference between getting a spot and getting cut may be a tenth of a second or a quarter pound of weight. When the owners fielded teams of scabs in 1987 it was pretty obvious that some of those players were within a reasonable distance of being a major leaguer. After three or four games, with the advantage of the weights, the 'roids, the coaching and the practice it was pretty clear that the end was in sight, with the "real" NFL players getting slower and smaller and their replacements getting stronger and faster. The NFLPA folded its hand and has never really been an effective advocate for the players since.

So freeing the minors wouldn't really be good for the superstars, and it wouldn't be good for the owners, the Lords of Baseball, or the sports networks, and it would be hard for the citizens of the 28 American cities that now have a big league team. Who would it be good for?

Well, the public, first of all, in all the non-MLB cities, who would have a chance to root for their own proud team, to compete as best they can at whatever level they can rise to. The model here might be the European football leagues, where every place has a local team and every local team has a chance to win their own silverware. The baseball fans in every locality, who will have a local team and local heroes, to inspire them and raise interest in the sport. Baseball players, who will have a chance to compete for more than just a promotion to the next level of an increasingly narrowing pyramid. The local newspapers and television, who will have genuine pennant races and local sports news stories to report.

Is this a perfect world? No. There will be lots of broken hearts and broken dreams, lots of chicanery and get-rich-quick schemes and goofy, idiotic promotional ideas. Baseball will become a lot less sleek, a lot less rich but at the same time a lot more lively, a lot more democratic, more part of more people's lives, and a lot more entertaining.

It might just become the National Pastime again.

Our 2009 national paradigm seems to be "bigger, richer, slicker". This seems to please the large, rich, slick components of our nation just fine. But I'm not so sure that its really in the best interest of our nation as a whole. I think that small, modest and versatile might be a better model for the 21st Century.

What do you think?

(Full version at GFT)

Wednesday, September 2, 2009

Embattled Farmers

So.

The topic we've chosen for this week is "whither labor"? Specifically, the implications for the national political and social contract we call the United States in the changes in the composition of our employment we've observed over the past 50 years. Even greater, the changes we've undergone since the turn of the last century.

1. If You White, You Right (well, sort of...)

The United States of 1791 was an overwhelmingly pastoral and agricultural nation; no surprise there - as the natural resource preserve of Great Britain the Brits had no interest in furthering American industry. Americans were, by and large, subsistence farmers, loggers, trappers and hunters. Our laboring and mercantile class was largely confined to a handful of coastal cities.

And this was just dandy with many of the Founders. The rural landowners of the Washington sort believed that republican virtues resided in themselves and the similar agricultural tenantry. The Rousseau admirers, Jefferson and his ilk, had a sort of mystical belief in the nobility of the soil. Even those of the Founders and Framers who saw commerce as the destiny of their nation - men like Hamilton - saw the nation as an overwhelmingly rural, agricultural polity.

And this entity was governed by a pretty narrow class. Women, of course, were ineligible for the franchise because having a vagina makes you stupid.

Um.

Or something.

There's 50% of your adult citizens right there. Anyone else not eligible to decide the fate of the nation? Hmmm...well, slaves, native Americans, almost all dusky-hued people...forget it, guys. You're not a Real American. We all know who THAT means, right?

White guy - you're in like Flynn?

Well, no. Most states had a property requirement, and without some means you were just as much a non-citizen as a (shudder!) woman.

Add to that little tricks like legislative appointment of Senators and the rudimentary party systems and you have a government that works in the fashion of the people who designed it: fairly well-off, landed or wealthy white guys.

2. I Hear You Knockin'

So the big story for me, politically, of the U.S. between 1791 and 1892 is the tug-of-war between the original elites and the brash newcomers to the political scene, the farm laborer and the factory worker, the immigrant, the store clerk and the women. The blacks, after 1865.

The story of the U.S. between the Constitutional Convention and the arrival of the modern political era is the story of the populists against the elitists, with the elite slowly losing ground while managing to keep most of the goodies for itself. Every decade, beginning in the 1820s with Jacksonian democracy saw an increase in the enfranchisement of the poor and the working class. This didn't translate into the betterment of those classes - even then, the people who these newly enabled voters elected were typically the "better" citizens of their town, city, or county.

Between 1850-1865, of course, everything takes a back seat to slavery. But after the war the increase in industrialization creates a huge new "class" of people, a working class, a proletariat that is unmoored from the land and unenamored of the traditional triumvirate of gentleman farmer-banker-captain of industry. The slow and complex process of fighting for political power begins to include people who would have been complete outsiders fifty years before.

I would opine that all this comes to a head in 1896, with the Bryan-McKinley election.

3. Money Makes The World Go Around

Bryan with his "free silver" and his populism scares the shit out of the wealthy characters who have been comfortably running the country in the Gilded Age. They are truly afraid that the proles, the small farmers, laborers and assorted riff-raff will get their man into the White House. So McKinley turns to his man Mark Hanna, who, in turn, orchestrates the first public relations election. He soaks the wealthy for "campaign contributions" and pulls in the media for the first swiftboating, associating Bryan with the radicals and anarchists of Europe and the poor niggers and wogs of...well, anyplace not America.McKinley pulls the skilled tradesmen, the kulaks, and the German-Americans into his camp of the rich and the well-born. The GOP holds the White House and much of the legislature for the next 32 years.

The importance here is that most Americans, in particular the poorest and least powerful Americans, are shoved into one party. And that party sees no reason to make things any easier for its enemies - so much so that within half a decade conditions for the urban working poor are SO fucking bad that an entire reform movement (the Progressives") that had been diddling around in the hustings pimping labor, health and safety laws (that were never enforced) since the mid-1870's found themselves voted into national power.

But the Progressives were torpedoed by WW1, and when the nation got back to work nobody wanted to hear jack shit about poor people and workers' rights when there was money to be made. So we speculated and bought on margin and pumped us up a nice big bubble that burst in 1929.

4. Bottom Rail On Top Now

Depression, and the resulting panic fear of Red Revolution, convinced the elites that ran the U.S. that a temporary loss of revenue and power were a fair trade to avoid the noose and the lamppost. Just as the Black Sox allowed Judge Landis to do to the Lords of Baseball what they never would have thought of allowing him to do before scandal threatened the foundation of their profit, the Crash allowed FDR to do to the Lords of Industry and Finance what they would never have allowed themselves to permit before, and have regretted ever since. WW2, making skilled labor at once a necessity and a limited commodity, and the Wagner Act, which finally gave the industrial worker a legal means to bargain with his or her employer for a position other than utter prostration, made the establishment of industrial laborers as a class of freeholders of a sort, no longer completely subject to the whims of employers and the vagaries of the market. Stakeholders, of a kind, in the companies they worked for and the country they lived in.

Not surprisingly, the unions then began ot behave as badly as the malefactors of great wealth they had been fighting. Featherbedding, ruinous contracts, shortsighted greed...by the Seventies and Eighties the union bosses had become like Orwell's pigs, looking and acting like the magnates they had been set up to oppose.

5. Back to the Future

And as luck would have it, the GOP finally found its way back from the political wilderness with a perfrect combination of panache in the form of a hack actor turned politician who had a folksy gift for telling people what they wanted to hear and a political imagination that began and ended with "cut taxes".

Since every idiot since Hobbes has wanted something for nothing, the American working class, that had finally begun to profit from things like universal sufferage, public-funded infrastructure from schools to freeways to airports, protective tariffs, labor and economic regulation, dove into this idiocy like microcephalic contestants on some sort of toxic reality TV show. They gleefully took down their own trousers and handed the paddle to their corporate and political masters. Free trade, deunionization, the wild tontine of easy credit and financial speculation...bring it on! Everything that the laboring classes had learned the hard way in the crashes of 1892 and 1929, in the Homestead Strike and the Haymarket "Riot" and the Taft-Hartley Act was forgotten.Why was this important? Why is it so much the worse now, that the ordinary American and ordinary worker is crammed down, is more "productive" and yet not better paid, is less willing and even less inclined to fight the wealthy and powerful that control his or her economic life?

6. Here's What I Think;

a. The original concept of the United States was a nation run by its wealthy, its landowners and its native aristocracy; the President was a mere functionary, the House was limited to the small elite defined by the franchise and the Senate was even more rarified, a playground of the powerful interests in each state in imitation of the Roman Senate.

The idea of the Framers was that this little group would exercise power in a thoughtful, deliberative way because of their very positions. The wealthy farmer and landowner, the rich merchant, the planter aristo - these people were beholden to nobody. They were truly "independent", and as such their vote, and their interest could, in theory, not be swayed but by their own rational self-interest and patriotic beliefs. The entire U.S. system rests on this; that the people making, enforcing, and interpreting the laws will be kept in check by other independent, cussed freeholders, in office and without, who have the time, the inclination and the means to do so. Most of the Framers were dead set against party or "faction" for the reason that it would cause their idealized American voters and leaders to conspire against each other - and, in theory, against the good of the nation - for personal political or economic gain.

b. Over time we have moved to a more egalitarian system. Now, as never before in U.S. history, what the individual American voter knows, thinks, says and does matters. Not, perhaps, individually, but in groups, as parts of parties and groups within parties. The "elites", now both personal and corporate, still have tremendous influence, with their control of the information and entertainment media and - especially now - their penetration of, corruption and cooption of the punditry. But at the moment the individual American has more potential influence than in about 95% of U.S. history.

c. But, at the same time, the U.S. voter has become LESS independent, less likely to have the time, the inclination and the means to take up an argument with his corporate, social, or economic master. That master, whether it is employer, lender, health insurance vendor, government agency, has an overwhelming advantage over him or her. Labor laws have been weakened, employment relations changed (and here we meet the pathetic "independent contractor" and "temporary worker" - only as "independent" as his or her corporate puppeteer is willing to pull on his paycheck string and a temporary as a thought) and economic pressures tightened (between cramdowns, offshoring, loosening of trade and tariff regulations and the race to the bottom of labor and environmental standards) to the point where the average American "workers" don't have time, education, willingness or ability to understand most of the issues put before them, let along make an informed decision.

d. Add to this that the entire composition of the U.S. economy has fallen off the table. There is not even a pretense of balance between the more self-reliant types that the Jeffersonians imagined would run the country; the farmer, the artisan, the mechanic, and the "sturdy yeoman" - hell, there's hardly a fucking yeo left in the country! - and the service industry types, from CEO to cube-rat, copy-shredder and mail sorter.Together the two make up barely a quarter of the electorate. The rest of us depend for our corn pone on the largesse of someone else; a boss, a consumer, a contractor. And we depend, to a great degree, for our opinions on someone else, too: an anchorman, a blogger, a Sunday morning political show.

Being in the "service sector" puts us in a particularly weak position. Even if we do everything "right", factors beyond our control can ruin us. This puts us in the position of the small farmer or unskilled laborer of the 19th Century - completely vulnerable and, as such, deeply fearful, suspicious and conservative. When you may teeter and fall at any moment, the inclination to take chances, to open the way for political, social or economic change, is highly circumscribed. We are, instead of the intelligent decision-makers envisioned by the Framers increasingly a nation of the Led, too worried about paying the mortgage, keeping our job and not getting sick than with where the country is going...

e. ...and a LOT of this has to do with the actions taken - principally by the GOP - to tilt the balance of power back to the employer, industrialist and financier. This has gone a long way to returning the U.S. to the pre-1932 status quo, where the government is a wholly-owned subsidiary of its wealthiest and more powerful "constituents". We have become, in all important aspects of the word, an oligarchy.

7. What Can We Do About This?

a. Not much, I think.

b. Historically the trend for oligarchies is, initially, stasis, and subsequently, desuetude. Once the collapse begins there are two typical opportunities: revolution, on the one hand, and tyranny, on the other.

c. Revolution, despite our mythic past, seems to me the least likely. Revolution comes from two motives: despair and hope. Despair, because at some point even the worst horrors of revolution aren't worse than the existing reality, and hope, because there comes a moment that the dreamer, the malcontent and the reformer look around and shrug - why wait? If not now, when?

The enemy of both despair and hope is cynicism. If there is anything that distinguishes our 21st Century U.S. today it is the plethora of cynics. We have been lied to and spun so often and so boldly that we believe in almost nothing. I believe that the most pernicious legacy of the purile gang of idiots that ran this country for the eight years after the turn of the century will be that they shat their stupidity-stool in everything all the time to the point where you can't look at chocolate cake anymore without wondering whether it's really Dick Cheney's used food.

We are too cynical to be good revolutionaries anymore. Besides, it'd require a whole bunch of us to live outdoors and eat infrequently. Can't have that.

d. Tyranny, though, if it was packaged and puffed right?

In a heartbeat.

Remember, we're now the country that is trained to ask not "Who shall imprison this torturer" but "Did the torture work?". That has been schooled to accept ID checks, background checks, taking our shoes off to board an airplane, the notion of soldiers in fatigues driving around off-post...OK, I'm kidding about the last one, but still - we're hardly a nation of cussed individuals. If properly wrapped in a flag, carrying a cross and promising safety, security, free Internet...could we refuse - more, could we even argue against it?

8. Conclusions

a. Economically, We the People are increasingly dependent on others for our livings.

b. Economic independence was considered by the Framers to be an essential criterion of political independence.

c. Ergo, if trends continue, and we are increasingly dependent on consumer debt, foreign manufacture and service jobs, I find it difficult to believe that we can continue to maintain even the limited self-government we retain. Eventually we will become what we were under Great Britain; subjects, hopefully of beneficent oligarchs and corporate rulers, but subjects nonetheless.

Saturday, August 29, 2009

Labor omnia vincit

I'd like to propose a "theme" for the coming week.Now let me preface by saying that I normally despise blog "themes". They are usually an excuse for the blogger to trot out some multiply-rejected article he or she is dying to inflict on the innocent reader. Or as a part of some sort of larger blogger sort of "Blog for..."that enables people who can't write their way out of a wet napkin to straphang on to better bloggers. And they're often a substitute for original thinking.

That said, I'd like to suggest the contributors here to think about, and write about, the present conditions of, prospects for, and place in the 21st Century United States (or the setting of their choice) of "labor"; the artisan, laborer and manual worker.

We live in an age where domestic manufacture and industry is declining in importance to a degree unknown since the rise of the United States as an industrial nation. Even the pastoralists among the Founders, who saw their creation as a nation of smallholders and sturdy farmers came to see the importance of domestic manufacture. Thomas Jefferson said in 1816:
"We have experienced what we did not [before] believe: that there exists both profligacy and power enough to exclude us from the field of interchange with other nations; that to be independent for the comforts of life we must fabricate them ourselves. We must now place the manufacturer by the side of the agriculturist... Shall we make our own comforts or go without them at the will of a foreign nation? He, therefore, who is now against domestic manufacture must be for reducing us either to dependence on that foreign nation or to be clothed in skins and to live like wild beasts in dens and caverns. I am not one of these."
It is doubtful that we can ever regain the dominance we owned in the period between 1945-1975 - we cannot hope to benefit from a world war destroying our competitors every generation. But we - the We of We the People - seem willing to allow our domestic labor and industry to slip to a mere shadow of itself in return for a largesse of cheap plastic geegaws from Asia.

Is this inevitable, or to be deplored? Is this irreversible, or merely temporary?

And what are the political, social and economic implications of the decline of Domestic Labor.

I suggest we spend the next week - before "Labor Day", itself an ingenious twist on what in the Old World is "May Day", a celebration of all things working class and Red - exploring the changes that have occurred, are occurring, and may occur, to our own laboring class here at home.

Tuesday, August 25, 2009

USA! USA!

Not that I wanted to break into the argument about MacArthur or anything...But I couldn't help grinning ruefully over this.

(h/t to Sven Ortmann over at Defence and Freedom for the image)

Tuesday, August 18, 2009

A Thousand Words

In case you were wondering why financial regulation, a public option for health care, an increase in domestic employment and a caesura to foreign adventurism aren't going to happen anytime soon.