-- E.P. Thompson, The Making of the English Working Class
The “other men” (and of course women) in the current American class
alignment are those in the top 1% of the wealth distribution -- the
bankers, hedge-fund managers, and CEOs targeted by the Occupy Wall
Street movement. They have been around for a long time in one form or
another, but they only began to emerge as a distinct and visible group,
informally called the “super-rich,” in recent years.
Extravagant levels of consumption helped draw attention to them:
private jets, multiple 50,000 square-foot mansions, $25,000 chocolate
desserts embellished
with gold dust. But as long as the middle class could still muster the
credit for college tuition and occasional home improvements, it seemed
churlish to complain. Then came the financial crash of 2007-2008,
followed by the Great Recession, and the 1% to whom we had entrusted our
pensions, our economy, and our political system stood revealed as a
band of feckless, greedy narcissists, and possibly sociopaths.
Still, until a few months ago, the 99% was hardly a group capable of
(as Thompson says) articulating “the identity of their interests.” It
contained, and still contains, most “ordinary” rich people, along with
middle-class professionals, factory workers, truck drivers, and miners,
as well as the much poorer people who clean the houses, manicure the
fingernails, and maintain the lawns of the affluent.
Tomgram: Barbara Ehrenreich and John Ehrenreich, The Fall of the "Liberal Elite"
You might almost think the news was good. The Europeans, so headlines tell us, have at least a “partial solution”
to the Euro-zone crisis (until, of course, the next round of panic is
upon us); the stock market has sort of rebounded (until the next
precipitous plunge); the unemployment rate “dropped sharply” to 8.6% in November, the lowest it’s been in more than two years (thanks in part to the strangest category around -- the 315,000
people who grew too discouraged last month to look for work and so were
no longer considered unemployed but out of the labor force); and talk
of a double-dip recession seems on holiday. So why pay attention to the modest-sized Associated Press story you were likely to find, if at all, deep inside your newspaper (as on page 21 of last Friday's Washington Post)?
It was headlined “Household wealth down in 3rd quarter,” with the
telling subhead, “Corporate cash continues to grow, Fed report says.”
Still, if you wanted to sum up the growing gap between the 1% and the
99%, you couldn’t ask for better. In fact, household wealth wasn’t
just “down” 4%, it was the “biggest loss of wealth” for Americans “in
more than two years,” and those corporate cash stockpiles didn’t simply
continue to grow, they reached “record levels” at $2.1 trillion. Since
American wealth is deeply linked to homeownership, the fact that “most
economists expect home prices to keep falling” wasn’t exactly good
news, nor when it came to pensions and retirement was the
July-to-September 12% drop in “the average balance in 401(k) plans
managed by Fidelity Investments, the largest workplace savings plan
provider.” In sum, the average American household managed to lose $21,000 dollars in those three months, a total loss in household wealth of $2.4 trillion.
You might think that would make front pages nationwide, but we’re
evidently too busy dealing with complex subjects like whether the $10,000 bet offered by Mitt Romney, the $202 million man, during Saturday’s Republican debate meant he was “out of touch” with normal Americans. In the meantime, TomDispatch regular
Barbara Ehrenreich and John Ehrenreich unerringly home in on a
fast-changing American reality first brought to national attention by
Occupy Wall Street: that, as the middle class goes down the chute, we're
left in a world in which 99% "R" Us. This is a joint TomDispatch/Nation article and will appear in print in the latest issue of that magazine. Tom
The Making of the American 99%:
And the Collapse of the Middle Class
It was divided not only by these class differences, but most visibly by race and ethnicity -- a division that has actually deepened
since 2008. African-Americans and Latinos of all income levels
disproportionately lost their homes to foreclosure in 2007 and 2008, and
then disproportionately lost their jobs in the wave of layoffs that
followed. On the eve of the Occupy movement, the black middle class had
been devastated. In fact, the only political movements to have come out
of the 99% before Occupy emerged were the Tea Party movement and, on
the other side of the political spectrum, the resistance to restrictions on collective bargaining in Wisconsin.
But Occupy could not have happened if large swaths of the 99% had not
begun to discover some common interests, or at least to put aside some
of the divisions among themselves. For decades, the most stridently
promoted division within the 99% was the one between what the right
calls the “liberal elite” -- composed of academics, journalists, media
figures, etc. -- and pretty much everyone else.
As Harper’s Magazine columnist Tom Frank has brilliantly explained,
the right earned its spurious claim to populism by targeting that
“liberal elite,” which supposedly favors reckless government spending
that requires oppressive levels of taxes, supports “redistributive”
social policies and programs that reduce opportunity for the white
middle class, creates ever more regulations (to, for instance, protect
the environment) that reduce jobs for the working class, and promotes
kinky countercultural innovations like gay marriage. The liberal elite,
insisted conservative intellectuals, looked down on “ordinary” middle-
and working-class Americans, finding them tasteless and politically
incorrect. The “elite” was the enemy, while the super-rich were just
like everyone else, only more “focused” and perhaps a bit better
connected.
Of course, the “liberal elite” never made any sociological sense. Not
all academics or media figures are liberal (Newt Gingrich, George Will,
Rupert Murdoch). Many well-educated middle managers and highly trained
engineers may favor latte over Red Bull, but they were never targets of
the right. And how could trial lawyers be members of the nefarious
elite, while their spouses in corporate law firms were not?
A Greased Chute, Not a Safety Net
“Liberal elite” was always a political category masquerading as a
sociological one. What gave the idea of a liberal elite some traction,
though, at least for a while, was that the great majority of us have
never knowingly encountered a member of the actual elite, the 1% who
are, for the most part, sealed off in their own bubble of private
planes, gated communities, and walled estates.
The authority figures most people are likely to encounter in their
daily lives are teachers, doctors, social workers, and professors. These
groups (along with middle managers and other white-collar corporate
employees) occupy a much lower position in the class hierarchy. They
made up what we described
in a 1976 essay as the “professional managerial class.” As we wrote at
the time, on the basis of our experience of the radical movements of the
1960s and 1970s, there have been real, longstanding resentments between
the working-class and middle-class professionals. These resentments,
which the populist right cleverly deflected toward “liberals,”
contributed significantly to that previous era of rebellion’s failure to
build a lasting progressive movement.
As
it happened, the idea of the “liberal elite” could not survive the
depredations of the 1% in the late 2000s. For one thing, it was
summarily eclipsed by the discovery of the actual Wall Street-based
elite and their crimes. Compared to them, professionals and managers, no
matter how annoying, were pikers. The doctor or school principal might
be overbearing, the professor and the social worker might be
condescending, but only the 1% took your house away.
There was, as well, another inescapable problem embedded in the
right-wing populist strategy: even by 2000, and certainly by 2010, the
class of people who might qualify as part of the “liberal elite” was in
increasingly bad repair. Public-sector budget cuts and
corporate-inspired reorganizations were decimating the ranks of decently
paid academics, who were being replaced by adjunct professors working
on bare subsistence incomes. Media firms were shrinking their newsrooms
and editorial budgets. Law firms had started outsourcing their more routine tasks to India. Hospitals beamed
X-rays to cheap foreign radiologists. Funding had dried up for
nonprofit ventures in the arts and public service. Hence the iconic
figure of the Occupy movement: the college graduate with tens of
thousands of dollars in student loan debts and a job paying about $10 a hour, or no job at all.
These trends were in place even before the financial crash hit, but
it took the crash and its grim economic aftermath to awaken the 99% to a
widespread awareness of shared danger. In 2008, “Joe the Plumber’s”
intention to earn a quarter-million dollars
a year still had some faint sense of plausibility. A couple of years
into the recession, however, sudden downward mobility had become the
mainstream American experience, and even some of the most reliably
neoliberal media pundits were beginning to announce that something had
gone awry with the American dream.
Once-affluent people lost their nest eggs as housing prices dropped
off cliffs. Laid-off middle-aged managers and professionals were
staggered to find that their age made them repulsive to potential
employers. Medical debts plunged middle-class households into
bankruptcy. The old conservative dictum -- that it was unwise to
criticize (or tax) the rich because you might yourself be one of them
someday -- gave way to a new realization that the class you were most
likely to migrate into wasn’t the rich, but the poor.
And here was another thing many in the middle class were discovering:
the downward plunge into poverty could occur with dizzying speed. One
reason the concept of an economic 99% first took root in America rather
than, say, Ireland or Spain is that Americans are particularly
vulnerable to economic dislocation. We have little in the way of a
welfare state to stop a family or an individual in free-fall.
Unemployment benefits do not last more than six months or a year, though
in a recession they are sometimes extended by Congress. At present,
even with such an extension, they reach only about half the jobless.
Welfare was all but abolished 15 years ago, and health insurance has
traditionally been linked to employment.
In fact, once an American starts to slip downward, a variety of
forces kick in to help accelerate the slide. An estimated 60% of
American firms now check applicants' credit ratings,
and discrimination against the unemployed is widespread enough to have
begun to warrant Congressional concern. Even bankruptcy is a
prohibitively expensive, often crushingly difficult status to achieve.
Failure to pay government-imposed fines or fees can even lead, through a
concatenation of unlucky breaks, to an arrest warrant or a criminal
record. Where other once-wealthy nations have a safety net, America
offers a greased chute, leading down to destitution with alarming speed.
Making Sense of the 99%
The Occupation encampments that enlivened approximately 1,400 cities
this fall provided a vivid template for the 99%’s growing sense of
unity. Here were thousands of people -- we may never know the exact
numbers -- from all walks of life, living outdoors
in the streets and parks, very much as the poorest of the poor have
always lived: without electricity, heat, water, or toilets. In the
process, they managed to create self-governing communities.
General assembly meetings brought together an unprecedented mix of
recent college graduates, young professionals, elderly people, laid-off
blue-collar workers, and plenty of the chronically homeless for what
were, for the most part, constructive and civil exchanges. What started
as a diffuse protest against economic injustice became a vast experiment
in class building. The 99%, which might have seemed to be a purely
aspirational category just a few months ago, began to will itself into
existence.
Can the unity cultivated in the encampments survive as the Occupy
movement evolves into a more decentralized phase? All sorts of class,
racial, and cultural divisions persist within that 99%, including
distrust between members of the former “liberal elite” and those less
privileged. It would be surprising if they didn’t. The life experience
of a young lawyer or a social worker is very different from that of a
blue-collar worker whose work may rarely allow for biological
necessities like meal or bathroom breaks. Drum circles, consensus
decision-making, and masks remain exotic to at least the 90%. “Middle
class” prejudice against the homeless, fanned by decades of right-wing
demonization of the poor, retains much of its grip.
Sometimes these differences led to conflict in Occupy encampments --
for example, over the role of the chronically homeless in Portland or
the use of marijuana in Los Angeles -- but amazingly, despite all the
official warnings about health and safety threats, there was no
“Altamont moment”: no major fires and hardly any violence. In fact, the
encampments engendered almost unthinkable convergences: people from
comfortable backgrounds learning about street survival from the
homeless, a distinguished professor of political science discussing
horizontal versus vertical decision-making with a postal worker,
military men in dress uniforms showing up to defend the occupiers from
the police.
Class happens, as Thompson said, but it happens most decisively when
people are prepared to nourish and build it. If the “99%” is to become
more than a stylish meme, if it’s to become a force to change the world,
eventually we will undoubtedly have to confront some of the class and
racial divisions that lie within it. But we need to do so patiently,
respectfully, and always with an eye to the next big action -- the next
march, or building occupation, or foreclosure fight, as the situation
demands.