Showing posts with label Working Class. Show all posts
Showing posts with label Working Class. Show all posts

Wednesday, February 15, 2023

The Left Has Given Up on Ordinary Americans

From Batya Ungar-Sargon, at Spiked, "Batya Ungar-Sargon on how the working classes are being sacrificed to elite virtue-signalling":

The modern left hasn’t just abandoned its former working-class supporters – it has actively turned against them, too. More often than not, in elite leftist circles, ordinary working people are looked down upon with disdain, as having the wrong political views and the wrong cultural tastes. Worse still, many of the left’s preferences are clearly harmful to workers. The green agenda, in particular, shows little regard for the lives and livelihoods of vast swathes of the population. So how did we get here?

Batya Ungar-Sargon is the deputy opinion editor at Newsweek and author of Bad News: How Woke Media Is Undermining Democracy. She recently joined Brendan O’Neill on the latest episode of his podcast, The Brendan O’Neill Show. What follows is an edited extract from their conversation. Listen to the full episode here.

Brendan O’Neill: Whenever you talk about the working class nowadays, someone will accuse you of making a racist dog-whistle. Why are questions of class and economic inequality being dismissed in this way?

Batya Ungar-Sargon: I consider myself a left-wing populist. Routinely, people on the left would say that I’m a conservative and that the points I make are conservative talking points. I always laughed at this because, first of all, I don’t think ‘conservative’ is an insult. People expect you to act like somebody just called you fat.

The other point is that it’s basically an admission that caring about class is now a right-wing position, and that being on the left no longer means caring about class.

This comes out in some funny ways. For example, when Elon Musk fired a lot of Twitter staff. We now know that those people were totally superfluous to the operation of Twitter, because the site is still completely operational. It turned out that a large number of people who worked there did an hour or two of work a day and then spent the rest of the time drinking matcha lattes. The average pay was $160,000 per year, for these funny-sounding jobs that didn’t seem to entail much work at all. A lot of Twitter employees were also working from home, and when Musk demanded that they come in at least once a month, they refused to. When they were fired, the left took up their cause like it was some great labour catastrophe – as if the real working class is made up of content managers at Twitter.

You see this a lot in the media as well. They take their unionising very seriously at these knowledge-industry jobs, where the average pay is $100,000 per year. I’m not saying those jobs shouldn’t be unionised, but don’t tell me you’re the proletariat if you sit behind a desk and make $100,000 a year. You’re part of the elites, you’re in the top 20 per cent. You’ve taken a bigger share of the economic pie and, as a result, you believe you deserve a bigger share of the political pie. That’s really what it comes down to.

You shouldn’t speak up on behalf of working-class people just because you agree with their opinions – you should speak up because a democracy requires sharing power. Throughout history, shared power has been tied to shared economic success, to upward mobility and to the middle class. If you don’t have a working class that has access to a middle-class life, then all political power is going to get funnelled to the top, and to the elites. Unfortunately, that’s how the leftist elites like it.

O’Neill: We have a situation now where the elites expressly call for working-class people to be deprived of certain jobs. In the UK, the government has given the go-ahead to a coal mine, which will create hundreds of well-paid jobs for working-class people. But the progressive set is actively agitating against that. What does the ideology of environmentalism tell us about class?

Ungar-Sargon: The coverage of the World Economic Forum meeting at Davos last month comes to mind here. It was amazing to watch. In any other era the left would have seen Davos for the sort of disgusting display of conspicuous consumption and elite vanity that it was. But instead those claiming to be progressive looked at Davos and saw their values being represented there. In a way, it’s genius. Through the green movement, the elites have created what the left always accused the right of doing – they have created a value system that makes the difference between the billionaire class and the educated elites fungible. Both of these groups are on board with the idea of this apocalyptic vision. They agree that the most important thing is the climate, and that we’re all going to die if we don’t solve it.

Getting the top 20 per cent to see their interests as aligned with gazillionaires is what is greasing the wheels of the green movement.

O’Neill: Do the elites really believe in the green agenda? Or do they just benefit from it?

Ungar-Sargon: I think they definitely believe it. I don’t think you can look at Alexandria Ocasio-Cortez, for example, and not see somebody who is deeply sincere. The only thing that makes me think that they don’t believe it is the private jets. If you believed so deeply in man-made climate change, surely the first thing you would do is ban private jets. But on the whole I do think they believe it. It would be very hard to pull off at this scale if they didn’t.

The way the elites think of the economy is very related to green ideology. They picture an economy in which the top 20 per cent keeps making over $100,000 a year and lives in nice neighbourhoods and nice cities. All production is done in China. All service-industry jobs are performed by slave-wage Venezuelans brought in by cartels. And everybody making under $100,000 a year – who used to be the working class – is on universal basic income. That’s the view that a lot of so-called progressives consciously or unconsciously have of their ideal economic system.

Of course, this fits right into the green movement. You can’t have a middle class without cheap, affordable fuel and energy. And climate activists don’t believe in cars, they don’t believe in trucks, they don’t believe in farming. They don’t believe in the jobs that we actually rely on to survive. They’ve essentially given up on America. They’re definitely not proud of America, they’re ashamed of it. They hate conservatives, religious people, Republicans, people who voted for Trump. To them, those people are anathema to the good life...

 

Wednesday, October 5, 2022

Young and Homeless in Rural America

It's hard out there. 

At the New York Times, "Most social services come through the schools — but it can be impossible to get to them":

One evening in June, Scott Cooper, a high school football coach in rural southern Ohio, received a text from Blake, one of his linebackers. Blake, who was 17, would miss practice the next day, and so would his brother Lee Jr., who was 15. Another text followed with an explanation: Their family had to move, and right away. They didn’t know where, but it would probably mean leaving River Valley High School.

In Cooper’s view, the brothers, each soft-spoken, each over six feet tall, had real promise. They’re “good kids,” he said, “very respectful, and their upside as players is very high.” They would show up on weekends to help make goody bags for team fund-raisers or sandwiches for a charity event. Sometimes they would stay after scrimmages with their mom, dad, little sister and two younger brothers, helping Cooper’s wife hand out hot dogs from a flowered crock pot until the sky streaked pink and the stadium lights popped on.

The family, including an older brother who had graduated from high school, had left their last home suddenly as well, just 18 months earlier. Before moving to Gallia County, they lived in Portsmouth, about an hour’s drive west, where the boys’ father, Lee, worked in landscaping and their mother, LeAnn, collected workers’ compensation after injuring her back as a home health aide. With a population of about 20,000, Portsmouth was hit particularly hard by the opioid epidemic and its fallout. The family rented a government-subsidized house between an abandoned building and a house where drug deals took place at all hours, LeAnn said. The neighbors rummaged through their trash and dumped needles and buckets of human waste in their yard. The sexual trafficking of children for drugs had become a significant local problem. Fearing for their safety, the family fled in December 2020. (I have used middle names or initials to protect the privacy of the families I met.)

Once they left subsidized housing, the family, like an increasing number of Americans, struggled to find a place that they could afford. They crowded in with LeAnn’s mother, then her sister, and as they searched, the children tried to keep up with their studies at their old schools. They had switched to remote learning during the pandemic, but rural internet access is spotty, and they often couldn’t log on. After three months, the family gave up on finding a place of their own and reluctantly moved to Gallia County, to live with Lee’s dad. Lee had a very troubled relationship with his father, and the family was not optimistic about the move. “It was a last resort,” LeAnn said grimly.

For a while, the arrangement worked better than expected. The kids enrolled in new schools, with Blake and Lee Jr. landing at River Valley High. They got good grades, and Blake wowed everyone with his beautiful tenor voice in show choir. In the spring, he started dating a girl he met in rehearsals for a school production of “Bye Bye Birdie.” Over time, LeAnn said, they “got back into who they used to be.”

But the situation with Lee’s father became volatile. The night Blake texted Cooper, his grandfather had thrown the family out. They had nowhere to go. Cooper wanted to help but didn’t know where to start. He asked the principal what to do, and he said: Ask Sandy. She’ll know.

Sandra Plantz, an administrator at Gallia County Local Schools for more than 20 years, oversees areas as diverse as Title I reading remediation and federal grants for all seven of the district’s schools, including River Valley High. In recent years, though, she has leaned in hard on a role that is overlooked in many districts: homeless liaison. Her district serves just under 3,000 students but covers some 450 square miles of an area that doesn’t offer much in the way of a safety net beyond the local churches. The county has no family homeless shelters, and those with no place to go sometimes end up sleeping in the parking lot of the Walmart or at the hospital emergency room. As homelessness increased in the county in recent years, Sandra and her husband, Kevin, a juvenile probation officer, found themselves at the center of an informal advocacy team.

In 2018, Kevin and a few other local law-enforcement agents started a group they called Code 10 Ministries to raise money to pay for motel stays for families in immediate need of shelter. When Cooper reached out to Sandra, she asked Kevin to have Code 10 pay for two rooms for two nights for Blake’s family at the Travelodge, a grim hotel across from the county fairgrounds.

Sandra then introduced the family to the process of applying for HUD housing. Subsidized housing from HUD is effectively a lottery; nationally there are only 36 units available for every 100 families who qualify, and the requirements can be hard to navigate. Plantz told them that purchasing their own motel room could set back the clock on when they could qualify as “HUD homeless” — vulnerable enough for long enough to be eligible for housing assistance. She found a woman from her church who would pay for a few more nights instead.

No one could afford to keep paying for the motel rooms, but neither did anyone want to see the family move to a tent in a park, which was an option they had been weighing. Cooper’s wife wanted to let the littlest children sleep at their house, but Plantz advised that this, too, could compromise their status as officially homeless. Cooper had an old camper he was fixing up for the county fair in August — just to get out of the sun on long days — and he offered it to the family. It had no water, working bathroom or propane tank for the stove. The oldest boys had to duck their heads every time they stood up, and they all slept on the floor or in the family’s minivan. June became July, then August, and no better housing option emerged. When the new school year began, Blake and Lee Jr. headed back to River Valley High — and a few weeks later, the family finally moved into HUD housing.

Families like Blake’s don’t fit easily into the “homeless industrial complex,” as some advocates for homeless youth and families have taken to calling the funding mechanisms, rules and priorities that determine the fates of millions of Americans who struggle with housing insecurity every year. The system is focused largely on adults experiencing homelessness in cities, and it is not well equipped to address the types of homelessness experienced by children and families, especially in rural areas. The limited data that exists suggests that rural students face homelessness in roughly the same proportion as their urban counterparts — and with far less in the way of a support system. In this vacuum of resources, schools sometimes offer the only form of help available to homeless families. Over the course of reporting in rural Ohio, I spoke with school officials, homeless advocates, students and their families. I met young people living in trailers that stank of sewage, mothers sexually harassed by predatory landlords, families who could not take their children to the doctor because they could not afford gas for the long trip. For all of them, the stakes of precarious housing were high. Homeless students have the worst educational outcomes of any group, the lowest attendance, the lowest scores on standardized tests, the lowest graduation rates. They all face the same cruel paradox: Students who do not have a stable place to live are unable to attend school regularly, and failing to graduate from high school is the single greatest risk factor for future homelessness...

Wednesday, May 11, 2022

Biden's Incoming Press Secretary Laughs When Asked Who Is Handling Baby Formula Crisis

From Katie Pavlich, at Townhall, "Incoming White House Press Secretary Karine Jean-Pierre was asked onboard Air Force One Wednesday afternoon about the ongoing baby formula shortage rattling American parents."


Wednesday, May 4, 2022

Do We Need a Capitalist Civil War?

 From Joel Kotkin, at UnHerd, "The working class suffer when elites agree":

We Americans like to think of ourselves as a thoroughly modern people — living proof of what, with enough toil and grit, the rest of the free world can one day hope to be. And yet for all our progressivism and idealism, America’s political culture finds itself unable to escape the past. We may be living in a 21st century democracy, but that “democracy” increasingly resembles something that could have been plucked out of feudal Europe or, perhaps more accurately, feudal Japan.

For much of its history, Japanese politics was characterised by conflicts among its ruling daimyo, and later between the great industrial zaibatsu who replaced them as dominant powers. Similarly, America’s politics is now being shaped by a civil war not between classes, but within the ruling capitalist elite.

As the 2022 congressional elections approach, two sides are polishing their armour and fletching their arrows. In one corner stand the daimyo of the gentry corporate elite, largely drawn from the ranks of tech oligarchs and much of Wall Street. Their focus lies in the creation of a capitalist utopia rooted in paternalistic state control, much along the lines of the corporatist “Great Reset”. In the other corner, meanwhile, stand their opponents to the Right, largely made up of those who own private capital and are therefore anxious not to see their activities curbed.

These divisions reflect profound differences in industry, reminiscent of the 19th-century conflicts between aristocratic merchants and British manufacturers, or the one that broke out between the daimyo who embraced industry and those samurai who stubbornly hewed to traditional ways. Drawing on this, the French economist Thomas Piketty aptly divides our capitalist class into what he calls “the Brahmin Left” and the “merchant Right”. One side, as its caste association assumes, tends to see itself as more spiritually enlightened, as priests of the progressive secular religion. The merchant side, however, is more concerned with market competition (particularly from China), the cost of goods, and the impact of regulatory policies on their core businesses.

Today, the Brahmin Left has its base in large corporations and investors, and has allied itself with the academic and media establishments, financing non-profits and generally supporting increasingly intrusive government. By contrast, the merchant Right draws its natural support from the traditional middle class — skilled workers, high-street businesspeople, and small property owners — who also have become the bulwark of the Trumpian Republican Party...

Still more.

 

Monday, May 2, 2022

International Workers' Day

Yesterday, actually, May 1st.

According to Wikipedia,"the date was chosen in 1889 for political reasons by the Marxist International Socialist Congress, which met in Paris and established the Second International as a successor to the earlier International Workingmen's Association."

Here's more, "Workers of the World Unite! May Day Celebrates Working-Class Solidarity":

The origins of a holiday celebrating workers can be traced back to labor and trade union movements in the late 19th century. As dreadful working conditions in factories became highly publicized during this period, particularly in meat packing plants, through works such as Upton Sinclar’s The Jungle, movements to improve working conditions (both for workers and for public health and safety) grew in size and intensity. On May 3, 1886, as workers rallied to demand an eight-hour workday in Chicago’s Haymarket Square, mass confusion erupted when a bomb exploded in the crowd and the police opened fire on the crowd. The Haymarket Affair, as this event is remembered, was used as pretext for widespread repression of workers and for the arrests of labor organizers, radicals and immigrants.

Not coincidentally, as progressive organizations and labor parties around the world began to celebrate International Workers Day on May 1 in commemoration of the Haymarket Affair, Labor Day was established in 1894 in the U.S. on the first Monday of September with the support of the American Federation of Labor, in part to distance the labor movement from its more radical elements. May Day continues to be celebrated around the world; and in the US, it has taken on special significance for immigrants’ rights activists. The convergence of the demands of workers for better wages and working conditions, and the demands of immigrants for dignity and freedom from the violence imposed by the immigration enforcement regime, is a fitting tribute to the role that immigrants have played in the labor movement in the United States.

The history of the labor movement is largely the history of human beings, living at the margins of mainstream society, uniting in solidarity, asserting their rights and fighting for a better, more fair world. It unfortunately remains true that racism, xenophobia and white supremacy redound to the benefit of those with economic and political power. From racist appeals to white supremacy that destroyed radical efforts during Reconstruction towards true multiracial democracy, to the xenophobic red scare that followed Haymarket and the repression of the Black Panther Party, racism and anti-immigrant rhetoric represent not only an existential threat of violence for marginalized people, but also a powerful weapon used by the ruling class to undermine solidarity among working people. Immigrants and marginalized people continue to be used as scapegoats for crime, poverty and other societal problems which can rightly be attributed to systems of exploitation that entrench privilege and power, and not those oppressed by these same systems.

It is, in many ways, the time of monsters. The Trump presidency ushered in a new era of domestic repression of Black and brown people and brought violent white supremacist rhetoric back into American mainstream political discourse. President Biden was elected with broad progressive support but has largely failed to roll back the worst Trump-era immigration policies. The COVID pandemic laid bare the harsh reality facing American workers, forced to risk their health and livelihood, often without adequate workplace protections, while America’s billionaires added nearly $2 trillion to their net worth. The United States continues to spend more on its military than the next nine countries combined while millions of its people are unhoused.

And yet, a new generation of the working class—union members and unorganized workers alike, students, LGBTQIA+ people, immigrants, Black, brown, and Indigenous people—stands ready to meet this political moment and organize to demand a better future. Workers at the Amazon JFK8 warehouse in Staten Island recently won the first union victory at any Amazon facility, led by a Black supervisor who was fired after organizing a walkout to protest unsafe working conditions at the start of the pandemic. Activists throughout the state are mobilizing to shut down the ICE Processing Center in Folkston in solidarity with detainees on hunger strike in the facility. And here in Athens, a coalition of organizations are demanding Community Benefits Agreements for large public projects, and United Campus Workers of Georgia are campaigning for a living wage for UGA workers. This May Day, let their struggles be our struggles. The only way forward is with solidarity among the multiracial working class of the United States and workers of the world.

Yes, because our pampered and privileged "students" and LGBTQIQ+ plus activists are taking all the assembly line-workers' jobs, low-skill manual laborers' jobs, fast-food and retail workers' jobs, and those in cleaning and janitorial services, the food industry, construction labor, longshoreman, parking lot attendants and car washers, truck drivers, and low-level white-collar worker positions, and more! 

Down with the colonialist, racist, multi-phobic finance capitalists of the world! 

Hey, hey! Ho ho! Late-stage capitalism's got to go! 

Yes, these "industrious" purple-haired campus proletarians have joined in working class solidarity with all the world's expropriated and oppressed! *Yawn.*

More here, "Workers around the world mark May Day with rallies for better working conditions."


Friday, April 29, 2022

Stocks Skidded Friday, Dow Dropping More Than 900 Points in Broad Investor Selloff

Shoot, another week like this one and the Dow will be in correction territory. My funds squeaked out of the first quarter with a mild $500 loss, but if this keeps going, I'll be taken to the cleaners --- and imagine how everybody else feels! 

Oh boy this is going to be a rocky year, just in time for the November midterms!

At CNBC, "Dow plunges more than 900 points for its worst day since 2020, falls for a fourth straight week":

And at the Wall Street Journal, "Tech Rout Drags Nasdaq to Worst Month Since 2008":

Tech-heavy index slid more than 4% Friday, bringing its losses for month to 13%.

An April rout in technology stocks deepened Friday, dragging the Nasdaq Composite to its worst monthly performance in more than a decade, as soaring inflation and rising interest rates fanned worries of a recession.

The broad selloff has erased trillions of dollars in market value from the tech-heavy gauge, with investors souring on shares of everything from software and semiconductor companies to social-media giants.

The Nasdaq dropped 4.2% Friday, bringing its losses for the month to more than 13%, its worst showing since October 2008. The index is down 21% in 2022, its worst start to a year on record.

The broader S&P 500 has fallen for four consecutive weeks, shedding 8.8% in April and bringing its year-to-date losses to 13%. The Dow Jones Industrial Average fell 4.9% this month and is down more than 9% this year. Both indexes logged their worst months since March 2020.

The punishing declines in tech and growth stocks mark a dramatic shift from recent years. Investors have ditched shares of some of the biggest tech companies, which had been stock-market darlings for much of the past decade and propelled the indexes’ gains from the pandemic lows.

Within just a few months, some of the most reliable winners morphed into losers. Netflix dropped 49% in April. Nvidia fell 32%. And PayPal Holdings declined 24%. All three stocks are down more than 35% in 2022.

Worries about the Federal Reserve raising interest rates, soaring inflation and the path of the economy have brought stocks sharply lower from the record levels at which they started the year. Many pandemic-era winners also have come falling back to earth as consumer tastes have evolved since 2020. And recently, earnings season has been dotted with some high-profile disappointments, delivering head-spinning one-day stock moves following the reports.

“We’re going into a higher volatility regime, when fundamentals matter again,” said Aashish Vyas, investment director at Resonanz Capital. “It does seem like we are at a systemic shift.”

The FAANG stocks, consisting of the popular quintet of Facebook parent Meta Platforms, Apple, Amazon.com, Netflix and Google parent Alphabet, have collectively lost more than $1 trillion in market value this month, the most since Facebook started trading in May 2012.

Investors say they will be tracking the next batch of earnings results in coming days for signs of slowing growth from other companies. So far, corporate profits are on track to rise 7% for the quarter, according to FactSet, the lowest year-over-year earnings growth rate since the last quarter of 2020....

The latest gross domestic product data showed that the economy recently contracted for the first time since early in the pandemic. Meanwhile, inflation accelerated in March to its fastest pace since 1982, measured by the Federal Reserve’s preferred gauge.

Despite higher prices, U.S. consumer spending for March increased 1.1% from the prior month, showing that American households are absorbing high inflation. Some investors say shares of some tech companies look attractive after the recent selloff, and that they would consider stepping in to buy shares. The Nasdaq is now down 23% from its high and trading at levels not seen since 2020.

Friday’s losses in the stock market accelerated into the closing bell, which some traders attributed to technical factors such as hedging activity and trading by leveraged exchange-traded products. The Dow sank more than 900 points, or 2.8%, and the S&P declined 3.6%...

 

Thursday, April 28, 2022

College-Educated Workers Head to Amazon, Starbucks, Looking for Jobs

And REI as well.

Hey, "creative destruction," and all that!

The makings of a new American college-educated proletariat!

At the New York Times, "The Revolt of the College-Educated Working Class":

Over the past decade-and-a-half, many young, college-educated workers have faced a disturbing reality: that it was harder for them to reach the middle class than for previous generations. The change has had profound effects — driving shifts in the country’s politics and mobilizing employees to demand fairer treatment at work. It may also be giving the labor movement its biggest lift in decades.

Members of this college-educated working class typically earn less money than they envisioned when they went off to school. “It’s not like anyone is expecting to make six figures,” said Tyler Mulholland, who earns about $23 an hour as a sales lead at REI, the outdoor equipment retailer, and holds bachelor’s and master’s degrees in education. “But when it’s snow storming at 11:30 at night, I don’t want to have to think, ‘Is the Uber home going to make a difference in my weekly budget?’”

In many cases, the workers have endured bouts of unemployment. After Clint Shiflett, who holds an associate degree in computer science, lost his job installing satellite dishes in early 2020, he found a cheaper place to live and survived on unemployment insurance for months. He was eventually hired at an Amazon warehouse in Alabama, where he initially made about $17.50 an hour working the overnight shift.

And they complain of being trapped in jobs that don’t make good use of their skills. Liz Alanna, who holds a bachelor’s in music education and a master’s in opera performance, began working at Starbucks while auditioning for music productions in the early 2010s. She stayed with the company to preserve her health insurance after getting married and having children.

“I don’t think I should have to have a certain job just so I can have health care,” Ms. Alanna said. “I could be doing other types of jobs that might fall better in my wheelhouse.”

These experiences, which economic research shows became more common after the Great Recession, appear to have united many young college-educated workers around two core beliefs: They have a sense that the economic grand bargain available to their parents — go to college, work hard, enjoy a comfortable lifestyle — has broken down. And they see unionizing as a way to resurrect it.

Support for labor unions among college graduates has increased from 55 percent in the late 1990s to around 70 percent in the last few years, and is even higher among younger college graduates, according to data provided by Gallup. “I think a union was really kind of my only option to make this a viable choice for myself and other people,” said Mr. Mulholland, 32, who helped lead the campaign to unionize his Manhattan REI store in March. Mr. Shiflett and Ms. Alanna have also been active in the campaigns to unionize their workplaces.

And those efforts, in turn, may help explain an upsurge for organized labor, with filings for union elections up more than 50 percent over a similar period one year ago.

Though a minority at most nonprofessional workplaces, college-educated workers are playing a key role in propelling them toward unionization, experts say, because the college-educated often feel empowered in ways that others don’t. “There’s a class confidence, I would call it,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York. “A broader worldview that encompasses more than getting through the day.”

While other workers at companies like Starbucks and Amazon are also supportive of unions and sometimes take the initiative in forming them, the presence of the college-educated in these jobs means there is a “layer of people who particularly have their antennae up,” Ms. Milkman added. “There is an additional layer of leadership.”

That workers who attended college would be attracted to nonprofessional jobs at REI, Starbucks and Amazon is not entirely surprising. Over the past decade, the companies’ appetite for workers has grown substantially. Starbucks increased its global work force to nearly 385,000 last year from about 135,000 in 2010. Amazon’s work force swelled to 1.6 million from 35,000 during that period.

The companies appeal to affluent and well-educated consumers. And they offer solid wages and benefits for their industries — even, for that matter, compared with some other industries that employ the college-educated...

Still more.

 

U.S. Economy Shrank 1.4 Percent in Weakest Quarter Since 2020

Let's Go Brandon!

At the Wall Street Journal, "U.S. GDP Falls 1.4% as Economy Shrinks for First Time Since Early in Pandemic":

Supply disruptions weighed on the economy, but consumers and businesses continue to spend.

The U.S. economy shrank at a 1.4% annual rate in the first quarter as supply disruptions weighed on output, though solid consumer and business spending suggest growth will resume.

The decline in U.S. gross domestic product marked a sharp reversal from a 6.9% annual growth rate in the fourth quarter, the Commerce Department said Thursday. The first quarter was the weakest since spring 2020, when the Covid-19 pandemic and related shutdowns drove the U.S. economy into a deep—albeit short—recession.

The drop stemmed from a widening trade deficit, with the U.S. importing far more than it exports. A slower pace of inventory investment by businesses in the first quarter—compared with a rapid buildup of inventories at the end of last year—also pushed growth lower. In addition, fading government stimulus spending related to the pandemic weighed on GDP.

Consumer spending, the economy’s main driver, rose at a 2.7% annual rate in the first quarter, a slight acceleration from the end of last year. Businesses also poured more money into equipment and research and development, triggering a 9.2% rise in business spending.

“The most important aspects of the domestic economy held up better than they did at the end of 2021, when growth was soaring,” said Diane Swonk, chief economist at Grant Thornton, in a note.

Two years after the pandemic struck, the U.S. economy faces challenges, including supply disruptions related to the pandemic and Ukraine war, labor shortages and high inflation. Central bank officials lifted their benchmark rate in March by a quarter percentage point from near zero to tame inflation, and they have signaled more increases are likely to follow.

Many economists think that the economy can withstand higher interest rates and return to modest growth in the second quarter and beyond, in part because consumers and businesses are continuing to spend.

Americans are spending more on services amid lower Covid-19 case totals and the lifting of remaining pandemic restrictions. Travel is one key example: Hotel occupancy rates are up from January, and more people are also boarding planes.

George Lewis, co-owner of Brass Lantern Inn in Stowe, Vt., is seeing a surge in demand. Visits to his bed-and-breakfast on Maple Street are running strong with rooms selling out some weekends this spring, a sharp shift from earlier in the pandemic when the inn relied on small-business aid to survive.

“People have called up: ‘Are you really sold out?’ ” Mr. Lewis said. “I’m like, ‘Yeah, yeah, we’re really sold out.’ ”

Still, Mr. Lewis is more concerned about business next year. For one, it isn’t clear where inflation will be, he said. Prices have already risen briskly for heating oil to warm rooms, as well as for the cheddar cheese Mr. Lewis uses in egg strata, a breakfast casserole he serves up on Saturdays.

Consumer spending is another wild card, he added.

“We don’t know what people’s pocketbooks can accommodate after this year,” he said. “Some people are spending…independent of what the cost is.”

Looking ahead, economists surveyed by The Wall Street Journal estimate GDP rising 2.6% in the fourth quarter of 2022 from a year earlier, matching 2019 annual growth, but logging in well below 5.5% growth recorded last year.

The labor market is a key source of economic strength right now. Jobless claims—a proxy for layoffs—have been near historic lows and fell last week to 180,000 as employers clung to employees amid a shortage of available workers. Businesses are hiring and ramping up wages, supporting consumer spending.

High inflation, though, is cutting into households’ purchasing power. Consumer prices rose 8.5% in March from a year earlier, a four-decade high. Elevated inflation is wiping away pay gains for many workers: average hourly earnings were up 5.6% over the same period.

Fast-rising prices are also challenging many businesses...

 

Thursday, March 17, 2022

The Runaway Cost of Virtue-Signalling

From Batya Ungar-Sargon, at Spiked, "Working-class Americans are paying a heavy price for their elites’ moral posturing":

As gasoline prices in the US continue to surge to an unprecedented $7 a gallon in some places, President Joe Biden seems more interested in finding someone to blame than mitigating the problem. ‘Make no mistake, inflation is largely the fault of [Russian president Vladimir] Putin’, the president said on Friday at the House Democratic Caucus Issues Conference. The president then cited a ‘fact checker’ in the New York Times and a Washington Post op-ed to counter anyone daring to lay the blame for skyrocketing prices at the feet of the president of the United States.

As gasoline prices in the US continue to surge to an unprecedented $7 a gallon in some places, President Joe Biden seems more interested in finding someone to blame than mitigating the problem. ‘Make no mistake, inflation is largely the fault of [Russian president Vladimir] Putin’, the president said on Friday at the House Democratic Caucus Issues Conference. The president then cited a ‘fact checker’ in the New York Times and a Washington Post op-ed to counter anyone daring to lay the blame for skyrocketing prices at the feet of the president of the United States.

I guess if you’re going to gaslight working-class Americans who have been struggling with historic levels of inflation for over a year now, it’s good to have legacy media outlets backing you up.

Of course, Biden is right that his decision to ban Russian oil and gas from the US market – a popular move, which 80 per cent of Americans approved of – has exacerbated these trends. But in trying to lay the blame of a year-long trend entirely at Putin’s feet because of a war that started three weeks ago, Biden is erasing the ongoing struggle American families have been facing, enlisting a foreign foe to cover for his domestic failures.

And it’s the very people the Democratic Party claims to care about who are suffering the most as a result of those failures. A new Wall Street Journal poll found that 35 per cent of black, Hispanic and Asian-American voters were feeling the sting of inflation, compared to just 28 per cent of white voters. Among black women and Hispanic men, the proportion was even higher, at 44 per cent. And of course, for those making less than $60,000, it was the worst, with half feeling the pain of inflation – compared to just 13 per cent of those making over $150,000.

It’s perhaps no surprise that it’s those whose incomes protect them from the sting of inflation who are most vocal about how willing they are to pay more for petrol – lecturing those who can least afford it about the importance of doing so on moral grounds...

Keep reading.


 

Saturday, February 19, 2022

Police Clear Ottawa Truckers at Gunpoint (VIDEO)

Canada's a police state.

I can't ever recall --- in my 45 years as a political scientist --- such an unjust authoritarian crackdown in a Western democratic country. French truckers shut down the entire country nearly every year or two. It's just a thing. I mean, Black Lives Matter is a protected group in American politics (thanks to coastal/beltway elites in cahoots with the Democrat media complex), but it's still something that riots continued throughout 2020 --- at least from the moment of George Floyd murder, practically up until today --- without a nationwide crackdown, fucking martial law! Regardless of ideology, most American cities won't allow citizens to burn it all to the ground. (But then there's always Portland. *Eye-roll.*)

It's the working class that's a threat to global elites, and their only response is to call fed-up workers racists, Nazis, and the "fringe minority." And freezing all assets of lawfully protesting Canadians (soon coming to America) is Beijing-level totalitarianism. Canada is a pariah state. Expect a mass voters' revolt now, especially in the rest of the country --- outside dirtbag Ottawa --- among the manly agricultural, rustic burgs across the plains, as citizens everywhere refuse to surrender their God-given rights, regardless of what civil liberties Canada's worthless "Charter" allegedly protects. 

What a damned disgrace. A woman was purportedly trampled to death under hoof, as Trudeau's mounted assassins charged overwhelmingly protesters. 

The New York Times is bad enough, but I've already checked the bloodthirsty Canadian newspapers, and I just can't. 

So, at NYT, "Ottawa Protesters Cleared From Parliament Encampment":

OTTAWA — The center of a sprawling protest in the Canadian capital was cleared of demonstrators for the first time in three weeks on Saturday, following an aggressive push by armed police officers to drive out the protesters.

Starting about 10 a.m. police advanced on trucks that had been parked on Wellington Street, the thoroughfare in front of the Parliament building, drawing guns on some vehicles, and arresting protesters inside and nearby the trucks.

The operation was an escalation by the authorities to finally end the protests, which began with a convoy of truckers rallying against vaccine mandates, and later inspired demonstrations around the world.

Officers, some brandishing batons, others holding rifles, pushed to regain the area in front of Parliament, expanding an operation that began on Friday to remove demonstrators and parked trucks that have blocked the city’s downtown core.

In the heart of the encampment, the police pushed people back with batons and irritant spray. They advanced methodically truck by truck as demonstrators shouted, “Shame on you!” At points, officers trained guns on individual trucks, or pointed them at the vehicles’ windows. They banged on doors, opening them up in an attempt to check for or dislodge any occupants who were still inside.

A recording played in French and English, as the police advanced. “You must leave,” it said. “Anyone found in the zone will be arrested.”

The police operation appeared to be a final salvo in the government’s belated effort to break up the occupation. In recent weeks, the demonstrations have attracted a variety of protesters airing grievances about pandemic restrictions, claims of government overreach and Prime Minister Justin Trudeau’s stewardship of the country.

By midmorning, police had cleared the demonstrators from what had been the occupation’s core, Wellington Street, in front of the house of Parliament, and set up barricades. Most of the trucks entrenched there for the past three weeks drove off when the advance began; a few abandoned vehicles remained...

Keep reading


The Truth About the Ottawa Truckers' Convoy

As the cliche goes, if you read one thing about the Ottawa freedom convoy, make it this. 

From N.S. Lyons, at the Upheaval, "Reality Honks Back:About those truckers…":

To simplify [his thesis], let’s first identify and categorize two classes of people in society, who we could say tend to navigate and interact with the world in fundamentally different ways.

The first is a class that has been a part of human civilization for a really long time. These are the people who work primarily in the real, physical world. Maybe they work directly with their hands, like a carpenter, or a mechanic, or a farmer. Or maybe they are only a step away: they own or manage a business where they organize and direct employees who work with their hands, and buy or sell or move things around in the real world. Like a transport logistics company, maybe. This class necessarily works in a physical location, or they own or operate physical assets that are central to their trade.

The second class is different. It is, relatively speaking, a new civilizational innovation (at least in numbering more than a handful of people). This group is the “thinking classes” Lasch was writing about above. They don’t interact much with the physical world directly; they are handlers of knowledge. They work with information, which might be digital or analog, numerical or narrative. But in all cases it exists at a level of abstraction from the real world. Manipulation and distribution of this information can influence the real world, but only through informational chains that pass directives to agents that can themselves act in the physical world – a bit like a software program that sends commands to a robot arm on an assembly line. To facilitate this, they build and manage abstract institutions and systems of organizational communication as a means of control. Individuals in this class usually occupy middle links in these informational chains, in which neither the inputs nor outputs of their role has any direct relationship with or impact on the physical world. They are informational middlemen. This class can therefore do their job almost entirely from a laptop, by email or a virtual Zoom meeting, and has recently realized they don’t even need to be sitting in an office cubicle while they do it.

For our purposes here, let’s call these two classes the Physicals and the Virtuals, respectively.

When considering the causes and character of the current protest, and the response to it, I would say the divide between Physicals and Virtuals is by far the most relevant frame of analysis available. In fact I’d say this is among the most significant divides in all of Western politics today.

Much has rightly been made of the “working class” and their alienation from “the elite.” But this phrasing comes mixed up with associations about material wealth and economic class that aren’t necessarily helpful. Many (though not all) of those who support “populist” politics in opposition to the elite tend to frequently be either fairly solidly middle-class skilled tradesmen, relatively successful small businessmen, or land-holders (e.g. farmers, ranchers, real estate entrepreneurs) who are often actually relatively well-off. It is the character of their work that seems to shape the common identity and values of each side of the class divide more than income.

So too does this difference appear to widen – and perhaps even help explain the root of – the huge and growing gender divide in politics, given the fairly well-established preference (on average) by men to work with “things” (more concrete) and women to work with “people” (more abstract).

Meanwhile, this class divide also maps closely onto another much-discussed political wedge: the geographic split between cities, where most of the Virtuals are concentrated, and the outlying exurbs and rural hinterlands, where the Physicals remain predominant. I would suggest the nature of these two classes plays a significant role in shaping the local cultures of these places. And as anyone following events in the United States, U.K., Australia, or Europe over the last few years (such as Brexit, or the Yellow Vest protests in France) could tell you by now, partisan differences between urban metropolitan cores and provinces seem to have become one of the defining features of politics across the Western democratic world.

Below is a map of the eastern half of the United States showing at very high detail the geographic distribution of votes cast in the 2016 presidential election. The urban-rural divide between political parties couldn’t be more stark.

Differences in the Canadian electoral system mean I can’t show you a similar map for Canada, but you can be assured that the urban-rural divide there is just as significant.

But the most relevant distinction between Virtuals and Physicals is that the Virtuals are now everywhere unambiguously the ruling class. In a world in which knowledge is the primary component of value-added production (or so we are told), and economic activity is increasingly defined by the digital and the abstract, they have been the overwhelming winners, accumulating financial, political, and cultural status and influence.

In part this is because the ruling class is also a global class, and so has access to global capital. It is global because the world’s city-brains are directly connected with each other across virtual space, and are in constant communication. Indeed their residents have far more in common with each other, including across national borders, than they do with the local people of their own hinterlands, who are in comparison practically from another planet.

But the Virtual ruling class has a vulnerability that it has not yet solved. The cities in which their bodies continue to occupy mundane physical reality require a whole lot of physical infrastructure and manpower to function: electricity, sewage, food, the vital Sumatra-to-latte supply chain, etc. Ultimately, they still remain reliant on the physical world.

The great brain hubs of the Virtuals float suspended in the expanse of the Physicals, complex arterial networks pumping life-sustaining resources inward from their hosts. So when the Physicals of the Canadian host-body revolted against their control, the Virtual class suddenly faced a huge problem.

When the truckers rolled their big rigs, which weigh about 35,000 pounds, up to the political elite’s doorstep, engaged their parking breaks (or removed their wheels entirely), and refused to leave until their concerns were addressed, this was like dropping a very solid boulder of reality in the Virtuals’ front lawn and daring them to remove it without assistance. And because the Virtuals do not yet actually have the Jedi powers to move things with their minds, the truckers effectively called their bluff on who ultimately has control over the world.

It turns out that not only do the Physicals still exist, and are (for now) still able to drive themselves into the heart of the cities, they actually still have power – a lot of power. In the middle of a supply chain crisis, those truckers represent the total reliance of the ruling elite on the very people they find alien and abhorrent. To many of the Virtuals, this is existentially frightening.

The reaction of the Virtual ruling class – represented by the absolutely archetypal modern progressive male, Justin Trudeau – to this challenge has been extremely telling, and rather predictable...

RTWT. 

 

Thursday, February 17, 2022

Justin Trudeau: A liberal Despot

This is from Megan Murphy, the righteous Canadian anti-trans feminist who was kicked off Twitter a couple of years back for violating Jack's politically incorrect diktats. She's in Mexico now, it turns out, in exile and flying under the radar. I miss her voice --- a voice of sanity in a world of madness.

At Spiked, "The Canadian PM has invoked emergency powers to crush the truckers’ peaceful protest":

The Emergencies Act has never been used before in Canadian history. Its predecessor, the War Measures Act, was invoked only once during peacetime – by Justin’s father, then prime minister Pierre Trudeau, in the 1970s. The War Measures Act was used to give sweeping powers of arrest and internment to the police in response to a Quebecois separatist group, Front de libération du Québec (FLQ), which, in 1970, kidnapped and murdered the deputy premier of Quebec, Pierre Laporte. At the time the powers were invoked, 23 members of the FLQ were already in prison, including four who had been convicted of murder. This was an actual terrorist group, responsible for illegal activities, including bombings, kidnapping and murder – not tens of thousands of happy Canadians, peacefully protesting by playing street hockey, singing the national anthem, dancing, barbequeing and setting up bouncy castles for kids, as we see in Ottawa today.

The Emergencies Act defines a national emergency as an ‘urgent and critical situation’ that ‘seriously endangers the lives, health or safety of Canadians and is of such proportions or nature as to exceed the capacity or authority of a province to deal with it’. The Act cannot be applied to lawful advocacy, protest or dissent.

Tellingly, even when the War Measures Act was invoked by Pierre Trudeau in the 1970s, in response to a group causing actual violence and perpetrating illegal acts, this was widely criticised as an infringement on civil liberties. During what was called the October Crisis, the military was deployed in Quebec and about 400 people were arrested under the measure.

Invoking the Emergency Act now, in response to peaceful Canadians engaging in legal protest, is a stretch of epic and frightening proportions. Yet many progressive Canadians seem relieved at Trudeau’s decision and thankful he is finally ‘taking action’ against the nuisance of having to confront diversity of opinion in their country, after having spent the past two years in a virtual bubble, away from people who hold different views and perspectives to themselves.

The response to the convoy and its supporters has, from the get go, been both inspiring and appalling. Across Canada people have expressed a long forgotten sense of pride in their country. So many – myself included – had lost faith that Canadians would ever push back against the Liberal government’s ongoing abuse of power against its citizens. At the same time, progressives and the mainstream media have engaged in an abhorrent and endless deluge of hateful and defamatory attacks on their neighbours. Claims that protesters are white nationalist, violent terrorists continue to dominate the narrative, without evidence, fuelled by a prime minister intent on pitting Canadians against one another and on ignoring our charter rights.

Ironically, considering the claims of those who insist the Freedom Convoy is a dangerous movement, it is the protesters and their supporters who have faced the most vicious attacks. For instance, GiveSendGo – the crowdfunding platform convoy organisers began using to fundraise in support of the truckers for things like food, lodging and fuel – was hacked this week after it refused to comply with an order from the Superior Court of Justice in Ontario to prevent disbursement of funds. Tammy Giuliani, the owner of a gelato café in Ottawa, was forced to close this week after a list of donors to the convoy’s fundraising campaign was leaked via the hack and those opposing the protests began threatening Giuliani, her staff and the shop. Major banks have frozen accounts collecting funds for the truckers, and the Canadian government has threatened to freeze the bank accounts and suspend the vehicle insurance of truckers who continue to participate in the protests.

Trudeau’s decision to invoke the Emergency Act is nothing less than an attack on democracy...

RTWT. 

As Ottawa Tries to Stop the Flow of Money to Protesters, Questions Remain on Who Will Be Targeted – and Whether the Tactics Will Work (VIDEO)

Totalitarians.

At Blazing Cat Fur:

Ottawa’s new emergency law enlists a huge range of financial players in a bid to cut off funds to protesters tied to the trucker blockades, but questions remain about who will be targeted and whether it will even work.

A new order and regulations under the Emergencies Act, which the federal government invoked on Monday, requires a long list of entities — this includes banks, insurance companies, credit unions, trust and loan companies, payment processors and online fundraising platforms — to continuously determine whether they should freeze accounts and halt services for individuals or companies tied to illegal assemblies and blockades that have gripped the country for weeks...

Tuesday, February 15, 2022

The World's Proletarian Working-Class Has Awoken! (And Progressive-Socialist Elites Won't Stand For It.)

Following up, "Prime Minister Justin Trudeau Invokes Canada's 'Emergencies Act' to Shut Down Truckers' Protest (VIDEO)."

The radical left in power is crushing dissent? Burying the working-class, the alleged dialectical-historic force now driving the world's workers toward the proletarian utopia? 

You don't say? 

Here's Batya:

The workers of the world are literally uniting. And yet these truckers have not been embraced by the left. Instead they have been tagged as fascists and racists by progressive pundits, activists, and politicians—those who tweeted “Stay Home! Slow the Spread!” while truckers delivered their Amazon Prime packages.

This spectacle—of workers fulfilling Marx’s fantasy, only to be smeared by the very people who claim to prioritize the working class—captures in stark relief the split emerging between the working class and the left that used to represent them...

Well, everything's upside down, so what the fuck? The populist-nationalists are gaining the upper hand, and idiot left-progressives are basically propelling the "far right" that they so much hate straight into power. 

Idiots. Bloody idiots, the lot of them.




Friday, January 28, 2022