July 15, 2010

Preying on those who can least afford it: On Broke, USA: From Pawnshops to Poverty, Inc.How the Working Poor Became Big Business

In the last thirty years, real wages for the majority of America have either remained stagnant or even fallen when tracked against inflation. Some parts of the economy have grown their costs at a much faster pace than the usual consumer good: education, health care, housing. If you were to chart a graph, you could easily see the growing chasm between what the status quo was and where the people really are.

This growing chasm is part of what drove the recent economic calamity. Borrowing of all sorts was at unstable highs, and each personal liquidity crisis snowballed onto the next one. The majority of the destruction is, I hope, at this point finished. What we have now to do is imagine a way to recovery.

_Broke, USA_ is not about the recovery, nor is it necessarily about the collapse. What it is about is the industries that grew and profited from the growing inequity: rent-to-own, check cashing, pawnshops, payday loans, money transfers, pre-paid credit cards, subprime loans. Each of these industries has their defenders, whom usually are also the ones making the profits. Rivlin presents a rather even hand in examining both sides of the issue, talking to both the moguls of the industries and the consumer advocates fighting against the industries.

With the even hand though, he still comes out on the side of reform and restriction. Many of these industries represent the free market at its worst, preying on those who can least afford it, and then telling their victims they should be grateful for the attention. The debt trap is real and scary and a direct effect not of greed necessarily on the part of the victims, but perpetuated by a rapacious system.

I read this book quickly and enjoyed it. I enjoyed it not because it was a nice story to hear, but because Rivlin is a fantastic storyteller.

On The Lonely Crowd

Learned people knew that the earth was round long before Columbus sailed the ocean blue. The ancient Greeks were able to make a good approximation of the earth's circumference. What everyone in the west thought for a long time was that the earth was at the center of the universe. In the Ptolemaic, geocentric model, the stars and the planets and the sun and the moon revolved around the earth. Broadly, this view was reinforced by the dogma of the church. You did not question it.

However, many intelligent men and women could look in the sky and notice that there was something wrong. Most of the stars did rotate as if they were attached to the inside of a giant globe, but others behaved strangely. They would slow down relative to the other stars and even go in reverse. To work with this, the astronomers had to change the model. Instead of sliding along a rail, these stars acted and rotated on a second orbit inside of the larger orbit, known as `epicycles'. The models built on these central tenants were highly powerful. They could use the models to predict the future position of stars, they could navigate with the stars, and they could please the church with the models.

The models, however, were wrong. We are not at the center of the universe, and we have had to refigure our astronomy based off a heliocentric solar system. At this point, I ask: What do we make of the old model? Do we mock it, or can we study it for the elegance it was able to show under the constraints given?

I ask these questions because they come in while studying _The Lonely Crowd_. We have less perspective on the changes tracked by Riesman and his collaborators. In many places they were right. A fundamental change in how people see the world and act and react it was going on. In many ways, the book is prescient, as it foreshadows the whole of the text of Bowling Alone: The Collapse and Revival of American Community. We are (have) shifting from a work-based definition of the self to a leisure-based definition. Power has in many ways moved from a strict hierarchy to nodes of influence, called by Riesman `veto groups.'

But they were wrong. I am sure much has been written about this, as the text is well known in the field, but they got the `why' wrong. The whole explanatory basis of the book is predicated on the idea that capitalism, especially the upper-middle class American version of the culture created by capitalism, was peaking the population. Impending improvements in the mode of production would make population less necessary. Thus, the framework is based on the idea of `incipient population decline.'

The problem here is that while they were prescient on the cultural changes going about, and that we are heirs of, they missed the reason it was happening. They saw much, but not the baby boom that was happening as they were writing. At this point, I ask: What do we make of their model? Do we mock it, or can we study it for the elegance it was able to show under the constraints given?

I still enjoyed reading the book, but with the causation so easily missed, I did not always follow through on the thread of the argument. Instead, I found myself at length reflecting on ideas presented without the context of the greater argument. Even if they were wrong, I can say at least, `This book makes you think.'

Belgians in the Congo!: On King Leopold's Soliloquy

In Billy Joel's song _We Didn't Start the Fire_, there are a lot of lyrics that seem nonsensical unless you can get a hold of a written copy of the lyrics. One of the lines that you don't an interpreter to understand is the words: "Belgians in the Congo". When I was younger I just thought that that was a key word for a generalized dislike of all imperialism.

Naturally, as a product of the American school system, I did not have my earlier ideas refuted. I have learned only tangentially of the horrors that stands behind the idea of what "Belgians in the Congo" really means. It means more than imperialism. What it means is one of the first stabs at genocide in the world, decimating the people of central Africa to take advantage of the natural resources.

King Leopold of Belgium's reign in the Congo was lamentable for many, and a point of inspitation for too many. The actions taken prefigured a bloody twentieth century where the powerful make the powerless submit or be disfigured or killed. As one of the main human rights issues of the time (as the nineteenth century turned into the twentieth), not just King Leopold was at fault, but the entire industrialized was complicit in allowing its continuance.

Twain saw the hypocrisy in allowing this to continue, and penned this fine text against the atrocities of the Congo. He takes the persona of King Leopold himself, embattled by the reformers who wish him to change. By taking this voice, or master satirist shows why he in many ways is still the conscious of our country. The argument is made with such force I wanted to go out and do what I could to stop them, even if they are too far away to reverse.

The Soliloquy itself is short, and padded out with extra explanatory detail and historical context the book is still under a hundred pages. I read through it quickly and enjoyed the contextual material. I might search out more of this untold history, but nothing can have the voice Twain gives Leopold.