Showing posts with label the Recession. Show all posts
Showing posts with label the Recession. Show all posts

Monday, April 07, 2014

My father is no longer optimistic...

Had a long conversation with my father the other day. At 85, he remains one of the most intelligent men I know, and the only one whose predictions about the future are consistently on the money. This is unfortunate because he is (for the first time since I've known him) no longer optimistic about the short-term future of the nation.

In particular, it concerns him that the Baby Boom generation (i.e., mine) is now cranking slowly into old age. As a result of the financial crisis of a few years back, very few of them have anything like the savings required to provide for them, or to pay for their medical care.

This means, he says, that society is effectively passing the bill for that care to the younger generation. Now, in prosperous times, that would not matter. If we knew something like the wealth of the 1960s or 1950s, then young people could afford to pay the tab without suffering themselves.

The problem is that we are not prosperous. We are in a Depression, even if we call it a Recession. Further, after decades of offshoring, downsizing, and "right-sizing" that Recession is simply not going to go away in a hurry.

Ah, but there is more. There were a great many Baby Boomers (that's why we were called the "boom"), but we tended to have relatively small families. Our children and grandchildren, in turn, had smaller families still—often one child or none. This means that a large and aging population has to be supported by a smaller and (in fact) dwindling one.

Alas, we are not finished yet. That smaller population of young people is in the midst of a vast social-economic-industrial transformation. For the first time ever, white-collar jobs are being automated. Machines are taking the place of "brain workers." Quite simply, as a nation we are not going to have many of the well-paying professional jobs that once guaranteed the existence of the Middle Class.

Then, finally, there are our wealthy. If the last few years have proved anything, it is that our economic leadership is incapable of seeing beyond its own bank accounts. Our wealthy will do anything to save themselves a few pence, even if that means the total impoverishment of the rest of the nation. (Yes, I know what Libertarians will say in response to that. But it is true all the same. Greed is not always good. Free markets do not inevitably lead to prosperity. Someday, travel through New England or visit Detroit and look at the abandoned mills, the shuttered buildings, and the shattered lives…the fruit of Neo-Liberal economies.)

All of this together makes my father …unhappy. He worries about the world his son and grandson will inhabit.

Which troubles me no end. I am used to being a bit despairing myself. But not him.

When a man of his vast spirit is daunted, I am afraid.

Saturday, January 22, 2011

Note to the Rich and Powerful

Two questions for the Rich and the Powerful. Plus a comment.

The comment: in case you’ve missed it, there’s a new genre out there…in film, and TV, and books. I call it “Tales of Off-Shoring Blues.”

These are stories of ordinary, average Americans who find themselves without jobs, without hope, and without dignity when suddenly some CEO or corporate executive decides that it will increase his or her bonus by a few cents more if they move the factory or the office to India, or China, or Mexico.

Right now, for instance, there’s a new movie in the theaters. It’s called “Company Men.” It’s all about a bunch of guys who get downsized, and then we watch as they wither, as their self-esteem collapses, their sense of themselves of as men declines, and they struggle to find a place in a new and alien world which holds them in contempt.

It’s supposed to be quite good. The critics all love it. I’m told the men in the story do come to terms with their plights. Or at least some of them do. Sort of. But I don’t think I’ll be able to go see it. It would cut a little close to the bone for me. I’m employed (if somewhat underemployed) at the moment, but I’ve been there. And I know a lot of other people who are there still.

What interests me about this new genre, though, is that it succeeds because it taps into something deep and powerful in the culture. It resonates with people because they know it is saying something true.

Specifically, they know that they are being hurt. They know that they are being stripped of their dignity. They know that their increased rates of suicide and heart attack are not accidental. They know that, in some place, even in middle class suburbs, children are starting to go hungry.

Or, to put it another way, they know they are being murdered. Not with guns and knives. Not quickly. But murdered all the same. Slowly. With a thousand, thousand humiliations and deprivations.

So, now my two questions to the Rich and Powerful.

First, if you continue your present course of action…if you keep downsizing and off-shoring and not making any effort to create jobs for Americans…if you keep letting them die…

What do you think will happen when Americans then quite rationally decide that it is either you or them? That they cannot survive if you continue to rule?

And, second, if that should occur…

How long do you think you can run? How well do you think you can hide?

Just asking.

Sunday, October 24, 2010

What Isn't Being Said

Hello, Everyone,

I'm shopping a shorter version of the material below to op-ed pages at various newspapers. So far, no one has taken the bait. But, you never can tell…

In the meantime, here it is, submitted for your approval.



[head] What isn't being said

By Michael Jay Tucker





It is what they don't say that freaks me out.

I mean the debate in Washington (and everywhere else) on the current Recession. Like you, and probably like everyone else in America, I've been watching while Right, Left, and Center battle about it. It's rather awe-inspiring, really. Economists and scholars and pundits and people who look really, really good on Fox TV are slugging it out big time, and all of knows exactly What Is To Be Done.

But, have you noticed? They all disagree with one another, very loudly. Some of them invoke Ayn Rand, others Baron Keynes, but no matter what their ideological orientation, they are united on a single premise. To wit, they hold the Recession is (for lack of a better word) a managerial issue. Their underlying assumption is that the crisis was brought about by unwise policies on the part of someone in office—the Republicans under George W. Bush by failing to properly police Wall Street, or the Democrats under Barack Obama through deficit spending (which seems somewhat improbable, given that Recession began before Obama's election, but that's beside the point).

But, this is followed by an equally fascinating corollary—i.e., that having been created by one set of policies, the Recession can be made to go away again by the imposition of another, wiser set. Once we reduce taxes or increase them, introduce more regulation or less of it, things will "get back to normal."

In other words, everyone in the debate—everyone!—seems to hold that our current crisis is subject to bureaucratic pressure, and that the proper group of experts could end it by changing the regulatory environment of the economy.

That's comforting, because it seems to give us the power over our situation. We just keep trying to various solutions on offer—Republic, Democratic, Tea Party, Socialist Workers, whoever—until one of them works. And surely, they can't ALL be wrong. Can they?

But…what if they are? All wrong, that is.

What if the Recession has nothing to do with policy? What if it in fact reflects material, structural problems in the nation as whole? And nothing we can do—no matter who's Chairman of the Fed, no matter how much we fiddle with capital gains or impose new regulations on Wall Street—is going to change things? What if, in short, we're screwed?

For instance, let's talk about energy costs. There are other problems as well (like de-industrialization) but, for the moment, let's just stick with energy.

It doesn't take a genius to notice that energy costs have been going up consistently for the last half century.

Which is a problem, because our society is based on fuel. Consider food. Any time you eat, you eat fossil fuels. You were able to ease your hunger because our society has the oil, gas, coal, or whatever to power the pumps that irrigate our fields, the tractors that harvest our crops, the trucks and trains that carry that food to our cities, and the freezers and stoves that we use to preserve and cook it. Oh, and by the way, once we've eaten it, we need still more pumps, and still more energy, to carry it all away again…or else we drown in our own sewage.

Which means, in turn, that each time energy costs go gone up, so too does the cost of everything we use that energy to produce, refine, transport, or prepare. Which is pretty much everything. And, so, every time energy costs go up, we get a little poorer.

And, it has only just begun. You can argue about whether we've reached "peak oil production," but what is undeniably true is that we've pumped out all the oil that was easy, safe, and convenient to get. From now on, we're going to get our fuels from places that are hard to reach, politically unstable, or just flat out dangerous. Oil is going to go get more expensive, and everything else is too.

And there's absolutely nothing we can do about it.

Not…that is… until we can push energy prices back down.

I'm not sure how we're going to do that. Maybe we'll invent a 100% efficient solar cell. Maybe we'll get clean nukes. Maybe we'll finally get fusion power up and running. But, until we do, things are going to be hard. We will only know the sort of prosperity we knew in the 1950s and the 1960s when the cost of energy is, again, measured in fractions of cents, rather than multiples of dollars.

Which is what scares me. Nothing I've said here is a secret. We all know this.

But, have you heard anyone say it? I mean, among the People Who Know Best? Our Leaders? Our elites? Have you heard any of them say, "Here's the grim reality: if we are to survive, we must invest in alternatives to fossil fuels. It is going to take time and money. We will have to develop basic technologies and build considerable infrastructure. We will solve the problem eventually, but it may be twenty years before we even start to see results, and over that period there were be far fewer resources to do other things. It isn't going to be pleasant, but that's the choice we've got."

No. We haven't heard them because they haven't said it.

I certainly haven't heard them say this. And that scares me to death. Because someone…some man or woman among them…needs to say these things to us, and needs to say them soon.

The alternative, and I fear it is all too likely, is that we awaken one morning to discover that the sun, in fact, has not arisen. And we are condemned, forever, to that famous darkling plain, wondering only which ignorant army will claim us next.







Copyright © Michael Jay Tucker 2010