Category: Economies

Ecce Douchebag: Richard Cohen on Tipping

Richard Cohen has a…I’m not sure what to call it. Formally, it’s an oped in the Washington Post.* In defense of tipping. In reality, it’s more like an overheated entry from his diary. In which Cohen confesses that his feelings of noblesse oblige toward waiters are really a cover for his fantasies of discipline and punish. Where there’s no safe word. Except, maybe, “check please.” The context for Cohen’s musings is that Danny Meyer, the restauranteur, has decided to eliminate tipping at his restaurants. This has prompted a spate of articles, praising Meyer and criticizing the anti-democratic elements of tipping. Enter Cohen. I love tipping. The practice originated with European aristocracy… And he’s off. Now remember, in DC parlance, Cohen is considered a liberal. There are four moments […]

On the Other 9/11: Pinochet, Kissinger, Obama

Today is the anniversary of two 9/11’s. The one everyone in the US talks about, and the one not everyone in the US talks about. Greg Grandin, who’s got a new book out on Kissinger that everyone should read, writes in The Nation today about Pinochet’s violent coup against Allende—fully backed by Kissinger and Nixon—and how Obama’s Trans-Pacific Partnership (TPP) is completing the work that Kissinger, Nixon, and Pinochet began. Forty-three years ago today. The TPP includes one provision that will, if activated, complete the 1973 coup against Allende: its Investor-State Dispute Settlement mechanism. ISDS allows corporations and investors to “sue governments directly before tribunals of three private sector lawyers operating under World Bank and UN rules to demand taxpayer compensation for any […]

The Petty Pilfering of Minutes: Wage Theft in Contemporary America

Northwestern University political scientist Daniel Galvin has an eye-opening post in The Washington Post about wage theft, a topic I’ve written about before. Based on extensive research, he’s made the following findings (my summary here is abbreviated; for the fuller findings, read Galvin’s excellent piece): 1. Percentage of low-wage workers who have suffered wage theft: 16%. (Other studies report higher percentages.) 2. Average percentage of a worker’s wages lost to wage theft: 26%. 3. Where wage theft tends to happen: private homes, nail salons, food service industries. 4. Whom it tends to happen to: women, people of color, people under 30, non-citizens, non-union members, people who didn’t finish high school or who live in the South. 5. How it happens: “employers often commit […]

Nietzsche on the Situation in Greece

On the Genealogy of Morals: The debtor made a contract with the creditor and pledged that if he should fail to repay he would substitute something else that he “possessed,” something he had control over; for example, his body, his wife, his freedom… Let us be clear as to the logic of this form of compensation: it is strange enough. An equivalence is provided by the creditor’s receiving, in place of a literal compensation for an injury (thus in place of money, land, possessions of any kind), a recompense in the form of a kind of pleasure—the pleasure of being allowed to vent his power freely upon one who is powerless, the voluptuous pleasure “de faire le mal pour le plaisir […]

Aladdin and Value

I found a free copy of The Arabian Nights on a stoop yesterday, so I spent the morning reading its version of the Aladdin story to my daughter. It’s a “junior” version of the story that was published by Grosset & Dunlap in 1946, but it appears to hew closer to earlier versions of the story than do the more popular and contemporary versions we see in the movies and such. In any event, it’s an interesting snapshot of its moment, whatever moment that may be. Two things of note about this version of the Aladdin story. First, it’s very much about the value form. Aladdin begins the story as a total naif about value: the genie gives him a silver plate, which he foolishly […]

The Liberating Power of the Dismal Science

I’m reading Thomas Sowell’s Race and Economics (1975), which had a major influence on Clarence Thomas. Sowell is a black conservative economist. In his chapter on slavery, Sowell writes: Although a slave-owner’s power to punish a slave was virtually unlimited by either law or custom, there were economic limits on the profits to be derived in this way. In many respects unremarkable, the passage nevertheless gives a sense of what a disenchanted black radical like Thomas, searching in the 1970s for a way past the impasse of the Black Freedom movements, might have found in Sowell’s conservative and economistic mode of thinking. For what Sowell is suggesting is that the one power that stood above or beyond that of the white slaveholder was the power of economics itself. While law […]

How Corporations Control Politics

In my Salon column today, I look at new research examining how corporations influence politics. Money talks. But how? From “Mr. Smith Goes to Washington” to Citizens United, the story goes like this: The wealthy corrupt and control democracy by purchasing politicians, scripting speech and writing laws. Corporations and rich people make donations to candidates, pay for campaign ads and create PACs. They, or their lobbyists, take members of Congress out to dinner, organize junkets for senators and tell the government what to do. They insinuate money where it doesn’t belong. They don’t build democracy; they buy it. But that, says Alex Hertel-Fernandez, a PhD student in Harvard’s government department, may not be the only or even the best way […]

Frederick Douglass in and on Baltimore

It occurred to me Friday morning that Frederick Douglass spent quite a bit of time in Baltimore as a slave. So I re-read his Narrative and wrote a column for Salon: Across the street from Baltimore’s Mondawmin Mall, where violent protests erupted last Monday afternoon, stands Frederick Douglass High School. It was from that school that students emerged at 3 p.m., only to find themselves in the crosshairs of the police. The school is named after the famed abolitionist who spent 10 years a slave in Baltimore. Anyone familiar with Douglass’ most famous work—”Narrative of the Life of Frederick Douglass, An American Slave, Written by Himself“—cannot but feel a bitter irony in that juxtaposition of Douglass High and the riots […]

Splendor in the Nordic Grass

Once upon a time, the Swedes taught Americans how to have good sex, make great films, and build socialism. Not anymore: Four vacationing Swedish police officers helped out after two homeless men began fighting on a New York City subway – and showed it’s possible to subdue violent suspects without hurting them. The officers — Samuel Kvarzell, Markus Asberg, Eric Jansberger and Erik Naslund — were riding an uptown No. 6 train Wednesday on their way to see “Les Miserables” when they responded to the subway driver’s call for help, reported the New York Post. A bystander began recording cell phone video after the officers pulled the pair apart. The video shows one of the brawlers sitting calmly on the floor, flanked by two of the Swedish police officers, […]

Counterrevolutionary Backsliding, from the Golden Calf to Keynes

One of the elements of the Exodus story I’ve always been interested in is the backsliding; it fits with my interest in counterrevolution, I suppose. The Israelites flee Egypt, bondage, and Pharaoh, but while they wander in the desert, they’re constantly tempted to go back. Literally, to Egypt, and figuratively, to bondage, to false gods, to idol worship. The Bible often speaks of these “murmurings” of the people of Israel. And the whole congregation of the children of Israel murmured against Moses and against Aaron in the wilderness; and the children of Israel said unto them: “Would that we had died by the hand of the Lord in the land of Egypt, when we sat by the flesh-pots, when we did eat […]

David Ricardo: Machiavelli of the Margin

In my course this semester at the Graduate Center, “The Political Theory of Capitalism,” we’ve been exploring how some of the classics of modern political economy translate, traduce, transmit, efface, revise, and/or sublimate traditional categories of and concepts in Western political theory: consent, obedience, rule, law, and so forth. Through economic thinkers like Smith, Ricardo, Keynes, Schumpeter, Jevons, and the like, we try and read political economy as the distinctively modern idiom of political theory. In the same way that religion provided a distinctive language and vocabulary for political thought after Rome and before the Renaissance, might not economics provide modern political theory with its own distinctive idiom and form? In other words, our interest in the political moment of […]

Smith/Brecht

Adam Smith, The Theory of the Moral Sentiments: The poor man, on the contrary, is ashamed of his poverty. He feels that it either places him out of the sight of mankind, or, that if they take any notice of him, they have, however, scarce any fellow-feeling with the misery and distress which he suffers. He is mortified upon both accounts. For though to be overlooked, and to be disapproved of, are things entirely different, yet as obscurity covers us from the daylight of honour and approbation, to feel that we are taken no notice of, necessarily damps the most agreeable hope, and disappoints the most ardent desire, of human nature. The poor man goes out and comes in unheeded, […]

Copyrights and Property Wrongs

Jeffrey Toobin has an interesting piece in this week’s New Yorker on the effort of individuals to get information about themselves or their loved ones deleted from the internet. Toobin’s set piece is a chilling story of the family of Nikki Catsouras, who was decapitated in a car accident in California. The images of the accident were so terrible that the coroner wouldn’t allow Catsouras’s parents to see the body. Two employees of the California Highway Patrol, however, circulated photographs of the body to friends. Like oil from a spill, the photos spread across the internet. Aided by Google’s powerful search engine—ghoulish voyeurs could type in terms like “decapitated girl,” and up would pop the links—the ooze could not be […]

A UI Trustee Breaks Ranks! We Have an Opening!

In another bombshell, UI trustee James D. Montgomery tells Ali Abunimah, well, I’ll just quote from Ali’s piece: A trustee of the University of Illinois has added to public criticism over the decision to fire Palestinian American professor and Israel critic Steven Salaita. “I think it would have been far better had it been dealt with differently and had it been done with more consultation with faculty,” James D. Montgomery told The Electronic Intifada today. He also acknowledged the “adverse” impact that a growing boycott was having on the university’s ability to function. Montgomery, a prominent Chicago attorney, echoed the regrets expressed by Chancellor Phyllis Wise over her own role in the affair. Montgomery was careful, however, to say that […]

Capitalism and Slavery

I’ve mentioned Greg Grandin’s book Empire of Necessity on this blog before. It’s basically the true story—and more!—behind Melville’s Benito Cereno, which if you haven’t read, you should read right away. And then read Greg’s book. In any event, Alex Gourevitch has a wonderful interview with Greg up today at Jacobin. It’s got all sorts of gems in it, but I thought readers here would be especially interested in this: Scholars have long examined the ways in which slavery underwrites capitalism. I thought this story, though, allowed attention to slavery’s role in shaping not so much the social or financial dimensions of capitalism but its psychic and imaginative ones. Capitalism is, among other things, a massive process of ego formation, […]

Why Aren’t the Poor More Responsible?

MIT economist Esther Duflo: We tend to be patronizing about the poor in a very specific sense, which is that we tend to think, “Why don’t they take more responsibility for their lives?” And what we are forgetting is that the richer you are the less responsibility you need to take for your own life because everything is taken care for you. And the poorer you are the more you have to be responsible for everything about your life….Stop berating people for not being responsible and start to think of ways instead of providing the poor with the luxury that we all have, which is that a lot of decisions are taken for us. If we do nothing, we are […]

The Calculus of Their Consent: Gary Becker, Pinochet, and the Chicago Boys

The economist Gary Becker has died. Kieran Healy has a great write-up on Foucault’s engagement with Becker; Kathy Geier has a very smart treatment of, among other things, feminist critiques of Becker’s theory of the family. And some more personal reminiscences of taking a class with Becker. Kathy mentions this article that Becker wrote in 1997 about the Chicago Boys who worked with the Pinochet regime. Becker’s conclusion about that episode? In retrospect, their willingness to work for a cruel dictator and start a different economic approach was one of the best things that happened to Chile. No real surprise there. Many free-marketeers, including Hayek, either defended the Pinochet regime or defended those who worked with it. But the Becker […]

Has There Ever Been a Better Patron of the Arts Than the CIA?

Countering Thomas Piketty’s critique of inherited wealth, Tyler Cowen suggests that such dynastic accumulations of private wealth may be a precondition of great art: Piketty fears the stasis and sluggishness of the rentier, but what might appear to be static blocks of wealth have done a great deal to boost dynamic productivity. Piketty’s own book was published by the Belknap Press imprint of Harvard University Press, which received its initial funding in the form of a 1949 bequest from Waldron Phoenix Belknap, Jr., an architect and art historian who inherited a good deal of money from his father, a vice president of Bankers Trust. (The imprint’s funds were later supplemented by a grant from Belknap’s mother.) And consider Piketty’s native […]

Classical Liberalism ≠ Libertarianism, Vol. 2

Antoine Louis Claude Destutt de Tracy,  A Treatise on Political Economy (1817): The truly sterile class is that of the idle, who do nothing but live, nobly as it is termed, on the products of labours executed before their time, whether these products are realised in landed estates which they lease, that is to say which they hire to a labourer, or that they consist in money or effects which they lend for a premium, which is still a hireling.—These are the true drones of the hive… … Luxury, exaggerated and superfluous consumption, is therefore never good for any thing, economically speaking. It can only have an indirect utility. Which is by ruining the rich, to take from the hands […]

Tyler Cowen is one of Nietzsche’s Marginal Children

Tyler Cowen reviews Thomas Piketty: Piketty fears the stasis and sluggishness of the rentier, but what might appear to be static blocks of wealth have done a great deal to boost dynamic productivity. Piketty’s own book was published by the Belknap Press imprint of Harvard University Press, which received its initial funding in the form of a 1949 bequest from Waldron Phoenix Belknap, Jr., an architect and art historian who inherited a good deal of money from his father, a vice president of Bankers Trust. (The imprint’s funds were later supplemented by a grant from Belknap’s mother.) And consider Piketty’s native France, where the scores of artists who relied on bequests or family support to further their careers included painters […]