Category Archives: The Working Class and the Economy

The Fissured (Working-Class) Workplace

One of my favourite exercises when teaching the sociology of work is to ask my students about the concept of a ‘job for life’. I started doing this a decade and a half ago at the beginning of my lecturing career. I asked the eighty odd twenty-somethings in the class in front of me ‘who’s heard of the phrase “a job for life” ’? When I first did this, maybe half the hands went up. I then asked, ‘Who here expects one’? That first time, and in subsequent trials, no hand went up. One guy did shout out, ‘But who would want one’? Over the years I’ve often tried this experiment with different classes, even asking it during open-day presentations for prospective students where the presence of their parents give an intergenerational frisson and a knowing look from the greyer heads in the audience. The receding knowledge of the term and the expectations that went with it speaks volumes about what has happened to our contemporary ideas about work.

I was thinking about that experience reading David Weil’s book The Fissured Workplace, a thoughtful and thought provoking reflection on the contemporary US workplace. By ‘fissured’ Weil means the wide range of ways in which work has been desiccated. Where traditional work was stable and intelligible, increasingly one is never sure who is responsible for the product supplied or service purchased. Weil outlines a number of types of fissuring, from subcontracting to outsourcing to franchising. Weil persuasively groups together a range of diverse strategies through which ownership and control are exercised through layer upon layer of intermediaries. The book offers a litany of corporate attempts to squeeze more profit from the bottom-line by laying-off risk and responsibility, citing examples from industries as diverse as cell phones, hotels, and coalmining. Fissuring is about saving money and restricting liability, ideally removing it all together.

Many of the instances of fissuring that Weil gives are not new for working-class people. Many working-class and trade union struggles have been over the attempt to secure at least some kind of work stability. The interesting thing about Weil’s metaphor is that it transcends blue-collar work, where poor conditions are more common, and increasingly affects traditionally middle-class white-collar environments such as journalism and publishing. This idea of fissuring adds to the emerging lexicon describing the contemporary and potential future nature of work. Like the idea of precarity that Guy Standing has talked about, fissuring makes sense of the common features and patterns that cross industries, sectors, and whole labour markets. The concept describes the splitting apart and the simultaneous corrosion or erosion of workplace sociability and culture. Fissuring gets to the heart of how contemporary work offers workers, their families, and whole communities even less of the limited stability that they enjoyed in the past.

For working-class people on both sides of the Atlantic, the ability to access good work is important for a number of obvious and perhaps less obvious reasons. Ask anyone why they work, and as like as not they will say ‘money’ and give you a look as if to say ‘are you crazy’? But dig deeper and it becomes apparent that while the cash is vital, so too are a whole range of other features of work that Studs Terkel described as things that ‘make the day go faster’. To some extent, all work socialises us, and that, in turn, allows us to play our part in socialising others. When I interview workers, the older ones especially, they often reflect on the significant people who have marked out times of transitions in their life — the most obvious moment being the initial move from school or college to their first place of employment. It often takes a whole lifetime of work before the subtlety of what they enjoyed becomes apparent to them, the way people and places helped to shape them as humans. It is only in the reminiscence that they see the value of workplace culture, even though their younger self may have ignored or hated the experience at the time. In various ways it moulded them, and they in turn help to cultivate and mature others. I am not saying that all work in the past was great, nor that ‘good work’ was accessed by all. Rather, I think a critical mass of working-class people experienced a level of stability that made a difference to their lives inside and outside the workplace. I’d go further and say that critical mass made a difference to the quality of work elsewhere, too. It afforded some working-class people the space to think and grow through employment.

When I read the David Weil’s book, I thought of the effect this fissuring has on working-class employment. The patterns of workplace culture have been undermined and changed hugely over the last three decades, but the shifts explored in The Fissured Workplace add a new and urgent dimension. What Weil describes is nothing less than the breaking down of any sort of medium or long term stability for workers. In the fissured workplace, relationships are contractual rather than social. The ability of people to join together, to socialise and be socialised, becomes increasingly limited.

For the young people I teach, The Fissured Workplace probably reads like a description of their experience of the world of work rather than as a critical analysis. We should not to romanticise the work of the past, indulge in ‘smokestack nostalgia’, but equally we need to acknowledge a world we may be losing. While the ‘job for life’ may have been a fleeting experience for a few, the social patterns that that stability engendered were profound for generations of workers and can still be seen working their way through the contemporary workplace. As for my student’s question about who would want a job for life, I would probably answer now that many working-class people would at least like the option of one.

Tim Strangleman

Getting By: The Fight for Community

Over the years, I have been involved in many community projects and campaigns, but not since the 1980s have I experienced the militancy and anxiety among working-class people that I see today. At first glance, you may miss it, or misinterpret their anger and rising class-consciousness as the way members of an underclass exclude themselves from British society. But these are the simplistic, stigmatizing, and cruel critiques that the mainstream media, and mainstream politicians, choose to deliver about the poorest members of our society.

In Getting By, my book about the council estate in Nottingham where I lived and raised my family for more than 20 years, I map my life from very poor housing close to the mines where my family worked, to the city centre of Nottingham, where I lived in public housing as a single mother with my mixed-race son, to finding myself at the University of Nottingham as a thirty-something working-class, mature student. I spent eight years researching the neighborhood where I lived for 25 years and writing about the consequences of de-valuing people and communities. I map how working-class people in the United Kingdom have become de-valued by successive governments and policies in the last thirty years. I show and explain how people who live in social housing have become problematized in the public psyche, stigmatized, and reduced to figures of ridicule, and hate. In particular I examine what it means to be a working-class woman, and how you learn at a very young age that shame will be part of your life – and that your respectability has to be sacrificed in order to ‘get by.’ The book is set within one neighborhood within the United Kingdom, although stigmatization and the de-valuing of working-class people is embedded throughout the country. For the last 18 months, I have lived in east London, continuing my academic research and also becoming involved in campaigns in London, where the de-valuing process of working-class people is stark, particularly around issues of housing. Rents within the capital are so high it is becoming impossible for poor families to stay in London.

unnamedWe can see one vivid example in the Focus E15 mothers, a group of young women with small children who, in 2013, were forcibly evicted from a homeless hostel that sits in the shadow of the billion pound developments of the Olympic Park and the Westfield Shopping Centre. Their evictions were treated with a complete lack of empathy for their welfare by the local authority and Mayor (both Labour Party). They were told that the only social housing available was in other cities around the UK where they have no connections or family — a crude form of class cleansing.

The Focus E15 mothers have gone on to support other families being made homeless in their neighborhood, leading to the group being labelled ‘agitators’ and ‘band wagon jumpers.’ This is what happens when powerless and de-valued women fight back — refuse to ‘know their place’ — without deference to an organized top-down political party.

Meanwhile, multi-million pound housing developments in London are segregating less well-off tenants from wealthy home-buyers by forcing them to use separate entrances. A Guardian newspaper investigation discovered that in upmarket apartment blocks, which are required to include affordable homes in order to win planning permission, poorer residents are increasingly being forced to use alternative access, which some have dubbed “poor doors.” Even bicycle storage spaces, rubbish disposal facilities, and postal deliveries are being separated to avoid class mixing. When I first read about one of these buildings, ‘One Commercial Street,’ I immediately knew that this was wrong. I didn’t need to consider whether de-valuing a person and making them walk round the back was better than providing no home at all, an argument levelled at those of us who spent 20 weeks protesting outside this symbolic monument to capitalism. But this sort of social Apartheid is wrong and needs to be called out for what it is.

It seems that social cleansing, social apartheid, and social inequality have been accepted as ‘common sense’ by the political elites, whether that means social cleansing the poor out of London altogether, providing different entrances to buildings to ensure that the rich don’t need to meet the poor, or de-humanizing people through ridiculing the places where they live, their culture, and their lives.

Perhaps ironically, this kind of hard-line neo-liberal thinking can generate class consciousness born out of a sense of unfairness . Grass-roots activism is thriving among groups united in their experience of being treated harshly and having very little or no power. They are fighting for their lives and the futures of their children as we fought in 1984 against pit closures. Many think the fight in 1984/5 was about coal and the closure of mines, and to some extent it was. In truth, our struggle as a striking family was much greater than coal and mines. It was about safeguarding our community, our way of life, and our culture — everything that made us proud working-class men, women, and children. We lost that fight, the mines were closed, 193,000 miners lost their livelihoods, and thousands more local jobs connected to the industry also disappeared. We lost our communities, we lost our families as each generation had to move out of the mining towns to find work elsewhere, and we lost our collective politics and our strong proud culture. This is what happens when thriving and tight knit communities are destroyed and de-valued.

The fight in London is also about saving working-class communities, and this fight has become especially apparent among mothers in the UK who were not politically active, perhaps, until they faced eviction, like the Focus E15 women. Recently, I have met women with their children on protests who have never been involved in politics before, who are now organizing solely by their class and their experiences.

Getting By shows how important community, family, and neighborhood still are to working-class people. Although there is an absence- a void left by professional politicians in how working class people ‘do politics,’ the book shows that there is a collective and a political identity emerging out of the concept of ‘belonging and community’. I feel confident that energy and class consciousness are rising among people who even a year ago had little interest in politics. Working-class people are becoming angry at the levels of inequality they see and the unfairness and injustice they are experiencing. I am hopeful because the discontent and change in working-class politics are coming from the grass roots, from mothers with babies on their hips, connected to no organized political party, shouting ‘shame on you’ at the police protecting the buildings and the power of the elites. The energy and the fight-back in the capital has both overwhelmed and inspired me to the point where even I — a very cynical working-class academic — believe that change is not only coming, but is happening.

Lisa Mckenzie

Lisa Mckenzie is a research fellow in the Department of Sociology at the London School of Economics and Political Science, working on issues of social inequality and class stratification through ethnographic research.

 

Taskers: The Precariat in the On-Demand Economy (Part One)

Revolutionary changes are taking place in the global labor process, creating new labor relations while expanding the ranks of the precariat. Informed observers predict that within the next decade, one in every three labor transactions will be done online as part of the “on-demand,” “sharing,” “gig,” or “crowd labor” economy.

New words are creating a new vocabulary of work and labor, often meaning something quite different from what they might imply. As I have explained elsewhere, whereas labour has exchange value and is usually remunerated, work consists of many activities that are productive or reproductive that mostly have use value, although many are done out of necessity because we are obliged to do them. We will overcome the confusion, but it may take time.

Essentially, the emerging labor process revolves around three entities: (1) Rentier corporations (labor brokers), which control the technological apparatus, the apps; (2) Labor “requesters”, the middlemen; and (3) Taskers, those who do the jobs. The apps and smartphones are the equivalent of the old labor hall, without the bustle that at least indicated the bargaining position of brokers and laborers. Taskers are basically piece-rate workers, but they should be distinguished both from employees, who are covered by labor law and collective bargaining, and the self-employed. Taskers come in three forms, each posing challenges to those concerned with the world of work.

First, in the on-demand – or, more cruelly, ‘concierge’ – economy, labor-broking corporations are bypassing old forms of market transaction, connecting final customers with taskers who supply services, such as taxi driving, bed-sharing, food delivery, shopping, legal advice, or medical care. These service providers (or errand boys or “task-rabbits”) should be distinguished from workers, since the broker treats them as self-employed, thereby excluding them from entitlements or protections that the state supposedly grants employees.

On-demand taskers must be available at most times of day and night or risk losing income or future opportunities. Unlike the classic proletarian employee, they own the means of production, in the form of a car, apartment, bicycle, machine tools, or whatever. And they do not have fixed or even known hours of labor. They must do a lot of work-for-labor, work neither compensated nor even recognized as work. They must wait around, unable to devote themselves to other activities in case the iPhone calls them to do a task.

On-demand taskers are usually isolated, without bargaining power. They are in a buyer’s market, having to accept a price set by the buyer. While many may feel “grateful” for the opportunity to earn a little, they must bear all the risks – accidents, ill-health from stress, loss of friendships, non-payment, repairs to vehicles or tools, replacement of stained carpets, health insurance, and so on. They face constant uncertainty — of income, tasks, costs, and personal comforts. And they are in constant competition with other unknown taskers.

A second type of tasker is part of the crowd-labor pool, an expanding phenomenon already involving over 12 million people, a third in the USA. Here, labor intermediaries are pivotal. Direct producers contract with a brokering corporation, such as Amazon Turk, ODesk, or eLance, which in turn utilize requesters to sub-contract tasks to successful bidders — taskers — from a potentially global crowd-labor pool. This involves a Dutch auction, in which requesters announce on line that so many such-and-such tasks are up for bid, to be completed within a stipulated period, and that bidding will close within, say, five days. Often the requester announces at the outset a maximum price or piece-rate, and taskers then bid each other down. Taskers can bid to undertake as many tasks as they think feasible at a price they think is right for them. At the end, requesters select from the lowest bids. So, somebody in Boston can be bidding against someone from Bangalore, Dakar, or Manchester. This is invidious, because the most insecure will tend to bid the lowest.

Because crowd-labor taskers do not know how many people are bidding or where they are, they may easily believe competition is more intense than it is. For the broker, that is ideal. But tasks may turn out to be more complex or time-consuming than taskers had been led to believe, resulting in even more self-exploitation. Many worry about their ability to finish tasks on time or satisfy the quality demanded, especially when they have no means of seeing what others are achieving. And in practice they have no means of redress should the broker decide not to pay or to delay payment on some pretext.

The larger the global crowd-labor pool, the easier it will be for brokers to impose demands and penalties on individual taskers. For instance, if a requester in New York unilaterally decides that a tasker in Dakar did not do something well enough and refuses to pay, the solitary tasker probably will not be able, or be confident enough, to try to recover her money. The scope for scams is enormous.

A third type of tasker is someone hired as a nominal full-time employee but who is on a zero-hours contract. This growing ruse involves paying only for the hours they are actually required to labor. They must be on stand-by at all times and travel to and from workplaces without compensation, often not knowing if they will get work or for how long. Over 1.4 million people in the UK are on such contracts.

All these taskers face insecurity, low and fluctuating incomes, chronic uncertainty, and lack of control over time. They have no fixed hours or workplaces. Unlike workers in the industrial time regime, where life could be measured in blocks of time, they live in a tertiary time regime, in which labor and work blur into each other, without payment for downtime, waiting, retraining, networking, and so on. They have illusion of freedom while also feeling that they are under incessant control. This is debilitating, with psychological consequences that we have only begun to explore.

The process depresses wage rates, whether taskers are paid on a piece-rate or time-rate basis. The decline is greater than is measured, since much of the tasker’s work is unrecorded, including time for rest, preparing, and waiting. The process also increases the precariat’s volatility of earnings, leaving them without non-wage or state benefits.

Driving down wages in general creates even more profits for the broker corporations. In this respect, Uber has set the bar for ruthless opportunism, and in spite of protests by licensed taxi drivers, it is operating in over 200 cities in 51 countries. It is decimating the ranks of licensed taxis, and depressing the earnings of taxi drivers. Critics fear that once Uber has succeeded in marginalizing taxis, it will raise its rates, especially in surge periods.

The process also accentuates the dismantling of occupational communities. Occupational guilds defined working life for hundreds of years, setting standards, codes of ethics, means of training, and sources of social protection. They stood against the market. The neo-liberal agenda hinges on dismantling them, and the on-demand economy is both a consequence and an accelerator of that. The costs include loss of occupational ethics and routes of social mobility through professions and crafts

The on-demand economy also reverses a capitalist mantra. Instead of capitalists, or firms, owning the means of production, they are ‘owned’ by the precariat. The former maximize profits through patents and other forms of intellectual property. They draw investment from venture capital, which thrives on short-lived, high rates of profit.

The precariat in this zone is isolated, in permanent competition with each other. The atomization drives down wages and transfers risks, hazards, shocks, and uncertainty onto the precariat. Taskers have minimal means or opportunities to coalesce.

Dangers for taskers include under-insurance, due partly to the difficulty of working out the risks with any insurer, especially where the potential insurer could not presume that the supplier would be properly qualified or be able to take due care.

The “sharing economy” has a cultural dimension, as well. When someone “shares” for money a car, apartment, or utensils, they convert zones of privacy and use value into alienated commodities with exchange value. It is an instance of the “Lauderdale Paradox,” in which the act of commodification is one of privatization that contrives scarcity of space or time.

These forms of labor intensify the pressure to commodify one’s life. It is a sad way for the precariat to respond to adversity, intensifying self-exploitation. It is how those experiencing declining wages and living standards cover up the decline, for a while.

In the upcoming weeks in Working-Class Perspectives, I will consider what can be done to improve the long-term income and economic security of taskers and the precariat.

Guy Standing

Guy Standing is a Professor of Economics, SOAS, University of London.

Crossroads: American Labor, the Freelancers Union, and Precarity

Several weeks ago, I attended the “The American Labor at a Crossroads: New Thinking, New Organizing, New Strategies” Conference in Washington, DC, sponsored by The American Prospect, the Sidney Hillman Foundation, and the Albert Shanker Institute. It was nice to see many old friends with whom I had worked as a Labor Studies Professor for 35 years. It was especially nice see David Moberg, labor journalist at In These Times.

We recalled the many “Labor at the Crossroads” conferences we had attended beginning with the crisis in the steel industry and the beginnings of deindustrialization in the 1970s. Most of these conferences accomplished little and had minimal impact on union leaders who rarely attended and were sometimes overwhelmed by the pace of change and the forces arrayed against them. But the program for last week’s conference looked different, and the conference ultimately felt different. As I said to the organizers, the panels and discussions were unusually frank, and some of the best were led by young people, women, and people of color.

Some both within and outside of the American labor movement have pronounced its impending death. But as Lance Compa has pointed out, plenty of successful union organizing is happening in traditional, largely stable industries and companies in manufacturing, transportation, communication, health care, food processing, and the public sector. Further, unions are a potent political force in advancing labor and civil rights in coastal and Midwest battleground states where urban density is the greatest. They have been powerful advocates for minimum wage increases and the expansion of health care for all working people. Taken together, Compa estimated that about 20% of all workers who are able to organize under US labor law are organized. The struggle for labor movement lies with the other 80%, especially those with those who experience unstable wages and working conditions and even those who embrace intermittent employment.

In the past, unions largely ignored these workers, finding them difficult to organize under current labor law and union strategies. But these workers have begun to organize themselves, in some cases with union backing. At the conference, we heard speakers from National Guest Workers Alliance, the Texas Workers Defense Project, the fast food worker campaign, and many “alt-union” organizing efforts involving day laborers, adjunct faculty, domestic workers, home healthcare workers, and regional and national worker centers.

One the most important speakers was Sara Horowitz, executive director of the Freelancers Union. The Freelancers Union (FU) wants to organize the 53 million self-employed workers, a growing portion of the labor market as the structure of work is changing. FU researchers found that 40% of these workers were true independent contractors, while another 23% were moonlighters trying to make ends meet. Put differently, the self-employed sector is diverse, ranging from members of the professional managerial class (salariat) to the working classes, and all experience some degree of casualization and/or precarity.

Horowitz believes the labor movement must recognize that both work and individuals are changing in cultural and economic ways. Some people, she argues, embrace flexibility and reject traditional work organizations and consumption patterns. They do not accept the work-spend cycle and are comfortable living with less. Instead of aspiring to home or car ownership, they prefer to rent or share. They seek a fuller life away from work, based on communities, networks, and neighborhoods. Horowitz calls this Freelance 360,which embraces a “new mutualism” that includes building “smarter solutions to health care, retirement, wage security, and other broken systems.” The FU’s goal is to develop sustainable work communities, networks, and co-ops in the growing informal and unstable work environment through “a spirit of collaboration and mutual support” and “building meaningful connected lives and thriving local communities.” This vision of a sharing economy has attracted both interest and critique.

In the last 15 years, FU has organized various networking events as well as an on-line freelancers network to share information, ideas, and potential collaborations. Its website provides important information for freelancers on health-related issues and insurance, taxes, wage rates and fringe benefits, business models, and marketing strategies. Participants also share information on clients. The FU has also published a Freelancers Bible that provides career information and a clever YouTube video that explains what it is trying to accomplish and why.

Some mainstream unionists at the conference may have felt threatened by Horowitz’s remarks. I think this fear is misguided. The FU is not challenging traditional organizing at brick and mortar sites with fixed hours and working conditions. Rather, it is simply suggesting that traditional methods and issues are inappropriate when work has become more informal, flexible, and episodic. Given the history of the labor movement, the tension was not unexpected even at a conference built around experimentation in thinking, organizing, and strategies.

The shift in thinking that FU advocates suggests the value of a broader definition of “working class,” one that includes the precariat along with more traditional workers. Over the last few years on Working-Class Perspectives, Guy Standing, Tim Strangleman and I have considered the definitions, conditions, and issues associated with the growing precariat. In the coming months, we will continue to examine changes in work and the growth of the precariat. For example, Guy Standing will comment on how we might define workers and the labor process in the on-demand economy. Tim Strangleman will look at some corporate origins of the fissuring workplace that has become a source of precarity. Sherry Linkon will consider cultural representations of precarity.

We have not abandoned our focus on working-class life and culture. Rather, we recognize that a growing number people, including many who once saw themselves as part of a privileged middle class, are now experiencing working-class insecurity and have found that they are one job from poverty. And just as we have long argued for the value (and values) of working-class life and culture while also tracing its struggles, we need to examine both the opportunities and costs of the new economy, in individual and political terms.

John Russo

Class War in the Tax Code

I know that taxes are a really boring subject, as is talking about billions and trillions of dollars as if any of us could understand such magnitudes. But a one-sided class war is being fought every day in the U.S. tax code, and getting even a glimpse of the amounts of money involved can change our sense of why taxes matter. If the government would stop redistributing income through the tax code and instead tax investors the way it does workers, homeowners, and consumers, many things that we can’t afford today would be easily affordable.

California, for example, doesn’t have enough money to pay home care workers (who are basically state employees) both minimum wage and overtime – the state is short some $350 million. Those workers average about $17,000 a year, with lots of overtime that is paid at straight wages. In Chicago there’s not enough money to have guidance counselors and social workers in the schools where they are most needed or librarians to staff most of the libraries. The Chicago Teachers Union estimates that it would cost about $300 million to remedy these and other deficiencies, but doing so would have a big impact on educational results. In order to save the Detroit Institute of Arts’ collection from being sold to get Detroit out of bankruptcy, city workers with $19,000 annual pensions had to give up about $900 each while the state of Michigan found $200 million for a one-time contribution to the city’s pension fund.

These amounts seem very large from an individual perspective. Even the smallest, $200 million, is more than 100 times what an average professional worker earns in a lifetime. The cumulative total of $850 million could fund the payrolls of six top teams in the National Football League. But in the world’s largest economy, whose national government now spends about $4 trillion a year, these hundreds of millions of dollars are the equivalent of nickels and dimes.

I have chosen these state and local situations at random, but thousands of state and local governments are similarly “taxed out” politically, if not economically. States and municipalities compete with each other to keep taxes low in order to attract businesses that, they hope, will create more jobs; few of them are in a position to initiate new taxes on investors. The federal government, on the other hand, has lots of room to run in taxing the top income earners and wealth holders.   Local governments tax property wealth, which is widely distributed among the population, but nobody taxes financial wealth, which is greatly concentrated in the top 10% and 1%. Likewise, state and local governments are highly dependent on sales taxes for things like clothes and meals at Appleby’s, which nearly everybody buys, but there is no sales tax when you buy a stock or bond.

This is how class war is waged in the tax code. If financial wealth were taxed like property wealth, and if buying a stock or bond were taxed like buying a shirt or skirt, all underfunded public pensions could be funded; home care workers could make a living wage; we could have the kind of massive infrastructure program we need; veterans wouldn’t have to wait months to be seen by Veterans Administration doctors; and we could cut our debt and deficit at the same time as we cut other taxes. And if income made from investing rather than working were taxed at the same graduated rates as earned income, we could do even more. We could have smaller class sizes and more teachers. We could staff government agencies at levels that would enable them to actually fulfill their functions – including enforcing our labor laws. Add it all up, and millions more workers could have decent jobs.

So why do we tax income you work for at higher rates than income you don’t work for? Because investors are winning a class war that most workers don’t know is being fought. Why does it seem natural to tax real property (houses, buildings and land) but not financial property (cash, stocks and bonds)? Because investors long ago won a class war that home owners don’t realize was ever fought. And why are meals at Burger King taxed but not stocks and bonds? Because investors are winning a class war that consumers don’t know is being waged.

How much additional money would the government have if unearned income were taxed at the same rates as earned income, if financial wealth were taxed at the same rate as property wealth, and if a sales tax was levied when buying a corporate stock the way it is when buying a pair of shoes? I did a little research and found out that it’s quite a lot – at least $800 billion a year. While implementing an equitable system of federal taxation would involve many administrative, legal, and political difficulties, it could solve financial problems at the state and local as well as the federal levels. None of the difficulties is insurmountable, but first we need to simply ask why investors get discounts and free passes in the tax code. Maybe they really are more valuable and important than the rest of us. But let’s discuss that in public rather than simply assuming it in the tax code.

In the meantime it’s clear that if the government taxed investors like it taxes workers, home owners, and consumers, we’d have more than enough money to do all the things I list above. After all, providing what’s needed for home care workers in California, school children in Chicago, and pensioners and art museums in Detroit would only cost $850 million (with an “m”). We could raise nearly 1,000 times that much — at least $800 billion (with a “b”) — if the government would declare a cease fire in the class war and stop redistributing income.

Jack Metzgar
Chicago Working-Class Studies

____________

For those who want to check my homework, here’s how I arrived at these big numbers.

Unearned income (capital gains and dividends) is currently taxed at 20% regardless of income level. If it were taxed at the same graduated rates as earned income, United for a Fair Economy estimates it would produce $160 billion in additional federal revenue.

Local governments live off wealth taxes, but these are applied only to “real property” (houses, buildings and land) not to financial property (cash, stocks or bonds).   The average property tax rate is 1.38%. According to Dean Baker at the Center for Economic and Policy Research, the total value of outstanding U.S. corporate stocks in 2014 is about $28 trillion. Thus, a 1.38% “property” tax on stocks would produce $386 billion in new revenue. I could not find a number for the total value of bond holdings in the U.S., but a 1.38% tax on bond wealth would surely add enough for a financial property tax to produce at least $500 billion a year.

The Tax Foundation does not compute an average for “combined state & average local sales tax rates,” but among the 47 states that have a sales tax (3 states do not have any), almost all are above 6%. So using 6% as a sort-of-average sales tax and applying it to the $60 trillion in stock trades in 2013, it would produce an astounding $3.6 trillion – nearly enough to fund the entire U.S. Government. This would be wildly unrealistic, as it would wreck the stock market and kill investment, but it gives you a notion of how lucrative even a very small sales tax on stock transactions could be. HR 1000, introduced by Rep. John Conyers, would impose a sales tax of 0.25% on stock trades (that’s a tax of 25 cents on a purchase of $100 in stocks), and that would produce $150 billion in new revenue. This much more modest amount is what I used to get a total of “at least $800 billion.”

 

The Precariat: The New Dangerous Class

Across the world, more and more people realize they are in the precariat – or may be soon – and that they are not alone. That is bringing a change of mood, from being defeated and dispirited to being defiant and demanding. Old sociologists may be bewildered, but precariat groups are moving from mass occupations to political re-engagement. They know there is no unified working class and do not want to go back in search of a phoney unity. We need an alternative progressive future, forged for and by the precariat.

Most fundamentally, the 20th century income distribution system has collapsed. The share of income going to profits has rocketed and will continue to rise, the share going to rent will rise even more. Real wages will continue to stagnate.

In pursuit of competitiveness, governments have implemented policies of labor flexibility, making labor more insecure, leaving millions without health care, pensions or other benefits. Governments have turned to means-tested social assistance and to workfare. The welfare state has withered.

Meanwhile, a global class structure has been taking shape, superimposed on national structures. At the top is a tiny plutocracy, many with criminal backgrounds. Their economic and political power is awesome; they have no responsibility to any nation state.

Below them is an elite who also gain from capital, some from what Thomas Piketty calls patrimonial capitalism. Below them is a salariat, with employment security, pensions, paid holidays, and other non-wage perks. They are what American scholars in the 1960s and 1970s expected to become the norm. But although a salariat will persist, it is shrinking.

Alongside it is what I call proficians, project-oriented, self-entrepreneurs, not seeking employment security. Many work frenetically, but suffer from burn-out sooner or later. They too are uninterested in defending wages. They obtain their money elsewhere.

Then comes the old proletariat, for which welfare states as well as labor relations and regulations were constructed. The proletariat was oriented to a lifetime of stable full-time labor, in which entitlements, ‘labor rights,’ were built up. But it is dwindling, along with its capacity, and even desire, to defend welfare institutions. Its achievements should not be romanticized. The proletariat favored and benefited from a sexist, often racist hierarchical laborism. Its labor unions epitomised that. There have been few more reactionary figures in American history, for example, than the old leaders of the AFL-CIO.

It is below the proletariat where the precariat is growing. It is not an under-class. That is the lumpen-precariat, victims eking out an existence in the streets, sad souls going to an early death. The precariat, by contrast, is regarded by global capital as pivotal, and the neo-liberal state is shaping it. Recent estimates suggest that the precariat makes up about 40% of the adult population in Japan, Korea, Greece, Spain, Italy, Australia, and Sweden, still seen as the nirvana of social democracy. The biggest precariat is in China.

Defining the Precariat

The precariat should be defined in three dimensions. First, it has distinctive relations of production. Those in it have unstable labor, in ‘flexible’ contracts, working as temps, casuals, ‘freelance,’ part-time, or intermittently for employment agencies. The most rapidly growing form of unstable labor is “crowd work.” Many commentators wrongly presume insecure labor is all that defines the precariat, and then dismiss it as nothing new.

There was always unstable labor. But today it is becoming the norm. Just as historians analyzed the process of proletarianisation as disciplining workers to the norms of stable labor, internalizing that as a duty, a compact with capital, so the precariat is being habituated to unstable labor.

Crucially, the precariat has no secure occupational identity, no narrative to give to their lives. And they have to do a lot of work that does not count and is not paid. They are exploited off the workplace as well as on it, outside working hours as well as in them. This is also the first working class in history expected to have more education than their jobs require.

Second, the precariat has distinctive relations of distribution. It relies on money wages, without pensions, paid holidays, retrenchment benefits or medical coverage. It has been losing those benefits, which is why conventional statistics understate growing inequality.

The precariat also lacks rights-based state benefits. That was heralded in Bill Clinton’s 1996 declaration that he was ending “welfare as we know it.” The punitive Wisconsin workfare model has since gone global. Meanwhile, with wages volatile and falling, the precariat lives on the edge of unsustainable debt. Debt has become a systematic mechanism of exploitation, as people struggle to maintain yesterday’s standard of living.

Third, the precariat has distinctive relations to the state. Those in it are losing rights granted to citizens, becoming denizens without civil, cultural, political, social, and economic rights. Increasingly, they are supplicants, pleading for benefits or services, relying on discretionary decisions of bureaucrats making moralistic judgments on whether their behavior or attitude is deserving.

These three dimensions produce a consciousness of relative deprivation, a combination of anxiety, anomie (despair of escape), alienation (having to do what they do not wish to do while being unable to do what they are capable of doing), and anger.

Varieties of Precariat

At present, the precariat consists of three factions, which is why it is a class-in-the-making, not yet a class-for-itself. The first faction consists of those falling into the precariat from working-class communities. They lack schooling and feel deprived by reference to a lost past. Their predecessors had employment security, pensions and so on. They want that past. Many listen to populists and neo-fascists attributing their insecurity to migrants and minorities. Across Europe and elsewhere, many are voting for nationalistic, xenophobic, and racist agendas.

The second faction consists of migrants and minorities, who feel denied a home, a viable present. Mostly, they keep their heads down, concentrating on survival. But when policies threaten even that, they rebel in days of rage (as in Stockholm in 2013) or join some fundamentalist cause. They are the ultimate denizens, denied rights everywhere.

The third group consists of the educated, mostly young. They suffer relative deprivation by being denied a future, a life of dignity and fulfilment. But they do not listen to neo-fascists; they look to recover a future, aspiring to create a good society based on equality, freedom, and ecological sustainability.

The Emerging Struggles

Fortunately, partly due to the mass protests in and since 2011, more people have come to recognize that they belong to the precariat, which is an essential starting point for a counter-movement. Among the third group, a feeling is growing that they are not just victims but can fight back. This part of the precariat wants to struggle for a transformative agenda designed to abolish itself through overcoming the conditions that define it.

However, the precariat is the new dangerous class because all in it reject mainstream political establishments. Many have not been voting. This does not mean they are politically apathetic, merely that mainstream parties and politicians have not understood their needs or aspirations.

The protests since 2011 have been mostly the actions of what historians call primitive rebels, symbolizing a time when the emerging class is more united around what it is against than around what it wants instead. But the protests are helping the precariat move closer to being a class-for-itself. It is ready to move to a struggle for Representation and Redistribution.

Unlike the old socialist project, the struggle will be for a redistribution of resources needed for personal development in an ecologically sustainable society: security, control over time, quality space (including the commons), liberating education, financial knowledge, and capital. All are more unequally distributed than income. The precariat has no security, no control over time, is crowded into impoverishing space and is losing the commons (cause of the Geci Park occupation), is subject to commodifying schooling, lacks financial knowledge, and is denied access to capital.

A counter-movement is taking shape. The precariat is re-engaging in democratic politics. After the neo-liberal dystopia, the Future is back on the agenda. The precariat must be the vanguard of a new progressive era.

Guy Standing

Guy Standing is a Professor of Economics, SOAS, University of London. He will present his new book, A Precariat Charter, at CUNY (November 4), the New School (November 5), and Cornell (November 7).

Precariat of the World Unite?

The term “Precariat” has been bandied around for some time now as a convenient catchall for a growing sense of employment insecurity in the U.S. and Europe. It has really gained traction in the wake of British social scientist Guy Standing’s 2011 book The Precariat, provocatively subtitled ‘The New Dangerous Class’. Standing argued that all Western countries were seeing a growing band of workers at the margins of the labor market. The precariat includes the young and old, the unskilled and unqualified who, for whatever reason, are locked out of ‘good jobs’ with higher pay, pensions and other benefits, and prospects of advancement. The book made Standing something of a darling of those fighting for better conditions or questioning some of the worst effects of neoliberalism in economic life. His ideas have been debated and scrutinized on both left and right of the political spectrum.

The success of The Precariat has led Standing to write a sequel, A Precariat Charter: From Denizens to Citizens. If his first book diagnosed the problem, this one offers a prescription for change in twenty-nine articles aimed at reforming work and the conditions that give rise to precarity. The ideas in Standing’s charter range from a complete redefinition of what counts as work to suggestions for reforming education.

Standing’s books have some profound implications for the way we think about the class system in general and the working class in particular. His initial volume’s subtitle ‘The New Dangerous Class’ echoed Marx and Engels’s ideas of the Lumpenproletariat – a dispossessed group at the very bottom of society who at times could be brought into the labor market as part of the reserve army of labor. In Standing’s twenty-first century version, the precariat has the potential to undermine working-class conditions in employment in similar ways and as a group has little or no connection to mainstream society. In his Precariat Charter, Standing attempts to forge new bonds between the precariat and the rest of society.

What I find most interesting about this latest book is what it says about work and what work can, and more importantly, cannot provide. Like a number of social commentators such as the late French social theorist Andre Gorz or British sociologist Zygmunt Bauman, Standing seems resigned to the idea that work has little or no value for most people. Standing criticises politicians and unions for holding on to all work at any cost regardless of whether it is rewarding work or drudge labor, carried out simply for money. This attitude, he argues, compounds the problem of the precariat by creating the conditions where workers are seen as drones and are increasing conceptualised as denizens (people who reside in a place to work with few if any rights) rather than full and active citizens of a state. He calls, instead, for a radical recasting of economic life. Undoubtedly these are powerful ideas, and it’s especially important for someone with Standing’s profile to raise these issues and offer solutions to the problems identified.

However, when we dismiss unattractive drudge work as Standing and others do, we enact a kind of violence on those who are engaged in it, and, in the process, deny agency and voice –a working-class voice. For sure, in a perfect world all work would be incredibly meaningful and fulfilling all the time. But a number of writers take a working-class perspective and find value in basic manual labor. For example, in The Mind at Work, Mike Rose shows the skill and thought that goes into what many consider the most menial of jobs – waitressing. Other great writing on so-called low-end labor, such as Studs Terkel’s Working and the lesser known How to Tell When You’re Tired by U.S. author Reg Theriault, explores the cultures of work that emerge among workers in those jobs. Both of these volumes show workers as fully filled-out people who have ideas, opinions, aspirations, hopes, dreams, and fears. Rose, Terkel, and Theriault write about working-class people with whom you could share a beer. They seem like us, because they are people like us.

In contrast, because they lack voice and agency, the workers Standing’s two books seem somehow distant. Reading his books, I don’t feel like I have anything in common with the people he describes, however worthy they are of my attention. This may be the product of the book’s big picture ambition, but I find it problematic.

Precariat_Charter_coverThis stance towards the subjects of Standing’s writing extends to the covers of both books. While in A Precariat Charter, the subjects are obviously protesting actively, on both covers the workers’ faces are digitized out, so we literally cannot see them as fully human. And on the cover of the original book we gaze upon three young guys in Hi Viz jackets slumped against a wall eating a fast food meal, images that speak to resignation, passivity, and defeat reinforcing one of the themes of the first book.

tumblr_lo50e28RP31qe6laxI applaud Standing’s commitment and passion in raising the profile of workers at the margin, but it’s important that we don’t just see working-class people as passive victims of neoliberalism. Often it is precisely workers occupying the lowest rungs of the labor market who exercise both voice and agency. After all, the labor movement on both sides of the Atlantic drew its strength in part from precisely the sectors of the economy and the types of workers that Standing defines as the precariat. So I want to propose one more article for Standing’s charter: the recognition of a shared humanity working-class people hold in common.

Tim Strangleman