Category Results: economy


Neoliberalism, White (Male) Privilege & the Current Financial Crisis

by Jessie on Sep 30, 2008 at 11:29 am

Make no mistake, all the available evidence suggests that the American political economy is headed for a major crash.  Some are even speculating that this is the end of American economic dominance in the world’s financial market.  But don’t be deceived by the blame-the-victim rationalizing that’s being floated now.   Let’s be clear about what policies and which people are behind the current financial crisis: neoliberal policies and the overwhelmingly majority of economically privileged white men (photo from same link) who created, implemented and benefited from those policies.

Neoliberalism refers to a set of policies that encourage “less government” and unfettered (and unregulated) capitalism.   The key elements of neoliberalism include: 1) the rule of the market, 2) reducing government expenditures on social services, 3) deregulation, 4) privatization, and 5) gutting the notion of “the public good.”    While this may strike some readers as sounding astonishingly similar to any recent Republican stump speech, neoliberalism has infected Democratic politics as well, and either Clinton’s policies (and way too many of Obama’s, for my tastes), fit neatly within the framework of neoliberalism.  Remember, “welfare reform” was a large part of what got Bill Clinton elected, and that’s a quintessential neoliberal policy.   Now, it seems self-evident to me what the connection is between neoliberalism and the current financial crisis, but allow me to connect a few of the dots here.   As those in the White House and Congress, including John McCain, touted the benefits of deregulation (link opens video of interview with McCain) of the financial markets and passed legislation “freeing” up those industries from any sort of government oversight, whole new markets developed and a few people got very, very rich.   Many of those who got very, very rich did so in financial services that are obtuse at best and an elaborate shell game at worse.   Others got very, very rich by targeting minority communities for subprime mortgages, the new version of “redlining.”  Now, those who conceived of, established and profited from these businesses have either cashed out or, if they’re still in the game, are looking to the U.S. tax-payers (some of the same people who’ve been fleeced by these schemes) for a $700 billion bailout, making the U.S. government the insurer-of-last-resort for these highly risky capitalist ventures.    The end result of neoliberal policies is that while a handful of people get very, very rich, these policies simultaneously exacerbate the suffering of just about everyone else and increase domestic and international instability.    So, what we’re seeing now is just the logical, perhaps inevitable, result of these policies.

Economically privileged white men have had a disproportionate level of involvement in the development, administration and profit from neoliberalism.  If you look at the roster of those in power on Wall Street and in the financial services sector more broadly in the U.S., what you will see is overwhelmingly white men who have gone to elite schools and, for the most part, come from upper-middle class and upper-class backgrounds.   Granted, there are token women (usually white) and people of color (some African American men), but these exceptions highlight the prevailing demographic fact about the industry.   While the “secret societies” of the wealthy occasionally make the news, the fact is, the power elite has been a feature of American life since before C. Wright Mills wrote about it in the 1950s, yet it rarely gets discussed in any meaningful way in the mainstream news. Instead, we get a lot of reporting about how the bailout failure was the result of partisanship - certainly part of the story, but doesn’t explain why conservative republicans and democrats rejected the plan.  Instead, what we need is more reporting, more information about how the state is working to protect the interests of the power elite.

Fortunately, critics on the left have pointed out the elite interests behind this crisis and the proposed bailout.   The reality is that bailout or not, the worsening economic landscape is not going to affect everyone in the U.S. - and the world - evenly.   Instead, people of color, women, and particularly women of color, are going to get laid off, not have health care, lose their homes and be forced into bankruptcy, while privileged white men may have to sell one of their vacation homes.  It’s time to shift this burden back onto the shoulders of the people who created it.

categories: Contexts, White privilege, economy, gender, government action, women| Permalink| Comments (0)

Immigration to the U.S. Slowing Down

by C.N. on Sep 29, 2008 at 8:43 am

Most of the news these days is on the economy — the recent financial institution crisis and how it will affect the presidential elections and American society going forward. But as an example of interconnections between social issues, as CBS News reports, the number of immigrants coming into the U.S. (both legal and unauthorized), significantly declined in the past year, with the economy being a big reason:

The wave of immigrants entering the United States slowed dramatically last year as the economy faltered and the government stepped up enforcement of immigration laws. The nation added about a half million immigrants in 2007, down from more than 1.8 million the year before. . . .

The Census Bureau’s’ estimates for immigrants include those in the country legally and illegally because the agency does not ask about legal status. . . .

One other obstacle could be the 69 percent increase last summer in citizenship fees, about 281,000 immigrants applied to become U.S. citizens in the first half of 2008 - less than half the number of applicants in the same period last year. . . .

Much of the nation experienced a housing boom in the first half of the decade, providing jobs that attracted immigrants. The housing bubble burst last year, sending housing markets tumbling and contributing to a slumping economy that some economists believe is in recession.

It should not come as a surprise that with the economy slumping that there are fewer economic opportunities for immigrants (both legal and unauthorized), so that the numbers of immigrants entering the U.S. has declined significantly in the past year.

Of course, the political controversy over unauthorized immigration and high-profile efforts to round up and deport undocumented workers have also contributed to a less-hospitable climate in general. Critics of unauthorized immigration are undoubtedly rejoicing at these numbers, but as sociologists have tried to point out, these issue exist in a larger context of institutional and historical factors that require a longer-range focus if we want true and fair immigration reform.

To go along with the Census’s latest report, the Congressional Budget Office has put together a list of Congressional reports and publications relating to immigration, both legal and unauthorized.

Of particular interest is their report released in December 2007 on “The Impact of Unauthorized Immigrants on the Budgets of State and Local Governments.” For those who are too impatient to read the whole report, it basically confirms what previous research has suggested:

  • State and local governments incur costs for providing services to unauthorized immigrants and have limited options for avoiding or minimizing those costs.
  • The amount that state and local governments spend on services for unauthorized immigrants represents a small percentage of the total amount spent by those governments to provide such services to residents in their jurisdictions.
  • The tax revenues that unauthorized immigrants generate for state and local governments do not offset the total cost of services provided to those immigrants.
  • Federal aid programs offer resources to state and local governments that provide services to unauthorized immigrants, but those funds do not fully cover the costs incurred by those governments.

So in other words, on a national level, unauthorized immigration constitutes a slight positive benefit for the American economy but on the state and local governments have to bear a disproportionate share of the financial costs, so at the state and local levels, unauthorized immigration constitutes a slight net loss on their budgets.

That is also a big reason why opposition to unauthorized immigration is so vehement — people situate themselves at the local setting, within their own city, town, or neighborhood — not at the national level. So they mainly see what is immediately around them, rather than taking a national-level perspective.

In that sense, it’s easy to see why people are opposed to the costs of unauthorized immigration that their city or state must bear, rather than recognizing the net benefit at the national level.

As sociologists have also pointed out, part of the solution needs to include the federal government sharing more of those net benefits with the state and local levels, to offset the disproportionate burden of costs that states and cities have to bear. Unfortunately, in today’s financial climate, that’s probably not going to happen anytime soon.

categories: Census, General, economy, illegal immigration, impacts, unauthorized| Permalink| Comments (0)