American academia — liberal in name but conservative in practice

The Daily Beast: The academy might seem like a bastion of American liberalism but an extensive database of faculty salaries compiled by The Chronicle of Higher Education paints a damning picture of gender inequality at U.S. colleges and universities.

Not only does the data reveal a substantial gender pay gap at both private and public schools, it also shows that male-dominated college faculties disproportionately rely on the labor of women in instructor and lecturer positions.

Women may keep our colleges running but the American university is still an old boys’ club.

The Chronicle of Higher Education’s new tool displays faculty and staff salary data from over 4,700 colleges and universities stretching from 2003 to 2013. The federal data powering the database isn’t brand new but it provides the starkest and most accessible visualization yet of the gendered distribution of labor in the American academy.

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CEO sets minimum wage of $70,000 for all his employees

The New York Times reports: The idea began percolating, said Dan Price, the founder of Gravity Payments, after he read an article on happiness. It showed that, for people who earn less than about $70,000, extra money makes a big difference in their lives.

His idea bubbled into reality on Monday afternoon, when Mr. Price surprised his 120-person staff by announcing that he planned over the next three years to raise the salary of even the lowest-paid clerk, customer service representative and salesman to a minimum of $70,000.

“Is anyone else freaking out right now?” Mr. Price asked after the clapping and whooping died down into a few moments of stunned silence. “I’m kind of freaking out.”

If it’s a publicity stunt, it’s a costly one. Mr. Price, who started the Seattle-based credit-card payment processing firm in 2004 at the age of 19, said he would pay for the wage increases by cutting his own salary from nearly $1 million to $70,000 and using 75 to 80 percent of the company’s anticipated $2.2 million in profit this year. [Continue reading…]

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Self-segregation by affluent whites in contemporary America

The Atlantic reports: Last summer, the Michigan town of Grosse Pointe Park erected a farmer’s market in the middle of one of the few remaining streets that allowed cars to pass between the tony suburb and the urban Detroit neighborhoods at its border. It was the latest of many attempts by Grosse Pointe Park residents to close off roads and block traffic between what has become a predominantly white, affluent suburb, and its poorer, urban neighbor.

There were protests about the border, and Grosse Pointe Park later said it would tear down the farmer’s market and re-open the road, but the incident speaks volumes to the segregation that exists in Detroit, and the tensions that can grow as a result.

The fact that these two areas are so close is unique — the border between Grosse Pointe Park and the city of Detroit is the only place in any of America’s biggest cities where a very wealthy, predominantly-white area abuts a very poor, black one, according to research from a new working paper from the University of Minnesota. But the existence of self-segregated wealthy white areas close by low-income minority ones isn’t unique, according to the Minnesota researchers. They have sorted census tracts in 15 of America’s 20 biggest cities into “racially concentrated areas of affluence” and “racially concentrated areas of poverty,” and find that many cities have more areas of segregated affluence than they do poverty.

Racially concentrated areas of affluence, by the researchers’ definition, are census tracts where 90 percent or more of the population is white and the median income is at least four times the federal poverty level, adjusted for the cost of living in each city. Racially concentrated areas of poverty, by contrast, are census tracts where more than 50 percent of the population is non-white, and more than 40 percent live in poverty.

Detroit has 55 racially concentrated areas of affluence and 147 racially concentrated areas of poverty, according to the research, done by Ed Goetz, Tony Damiano, and Jason Hicks. Detroit’s racially concentrated areas of affluence are just 1.1 percent black. It’s racially concentrated areas of poverty, by contrast, are 76 percent black. [Continue reading…]

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How California’s wealthiest homeowners are sucking the state dry

The San Jose Mercury News reports: Despite having the second-highest per capita consumption in the Bay Area, the Bear Gulch District serviced by the California Water Service Co. has cut water use only 11.3 percent since 2013. The district includes Woodside, Portola Valley, Atherton and portions of Menlo Park and Redwood City.

In the Alameda County Water District, water use plummeted 20.5 percent compared with 2013.

“We can turn off their water if we need to,” said Stephanie Nevins, the Alameda district’s water conservation supervisor. “But we haven’t had to. We’re delighted about how responsive customers have been.”

A National Science Foundation-funded research study by UCLA scientists confirms the Bay Area pattern. Analyzing 10 years of data that linked water consumption with socioeconomic demographics, prices and other factors, the study concluded:

• Income is the primary driver of water consumption. Wealthier neighborhoods consume three times the amount of water that less affluent neighborhoods use.
• Single-family residential households overwater their grass, flowers and shrubs.
• “Tier pricing,” which sharply increases the cost of water as usage goes up, encourages conservation.

The greatest reduction of water use results from a combination of mandatory restrictions and price increases, supported by incentives and outreach, according to the UCLA study.

Woodside is filled with large estates owned by Silicon Valley luminaries that have included, in addition to Ellison, venture capitalist John Doerr, Intuit founder Scott Cook, investor Charles R. Schwab and Internet entrepreneur Jeffrey Skoll.

Landscape irrigation accounts for 70 percent of the district’s water usage, internal data show. The state average is about 50 percent.

Menlo Country Club in the Bear Gulch District, which uses potable water on its fairways, says it is seeking a recycled water source.

About 300 Woodside households use more than 75,548 gallons a month, according to Cal Water. Many of those residents use more than a million gallons of water a year — for just one home. [Continue reading…]

The Los Angeles Times reports: Water usage in Los Angeles was 70 gallons per capita. But within the city, a recent UCLA study examining a decade of Department of Water and Power data showed that on average, wealthier neighborhoods consume three times more water than less-affluent ones.

With Gov. Jerry Brown’s order requiring a 25% cut in water consumption, upscale communities are scrambling to develop stricter laws that will work where years of voluntary standards have not. Many believe it’s going to take a change in culture as well as city rules to hit the goal.

“Some people — believe it or not — don’t know we are in a drought,” said George Murdoch, general manager of utilities in Newport Beach, which is beginning to fine chronic water wasters. “We have people that own a home here but aren’t around a lot, so they could miss a leak.”

Stephanie Pincetl, who worked on the UCLA water-use study, said wealthy Californians are “lacking a sense that we are all in this together.”

“The problem lies, in part, in the social isolation of the rich, the moral isolation of the rich,” Pincetl said. [Continue reading…]

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Warren Buffett’s mobile home empire preys on the poor

The Center for Public Integrity and the Seattle Times report: Denise Pitts walked into the pawn shop not far from where she bought her mobile home in Knoxville, Tennessee, and offered up her wedding rings for $100. Her marriage wasn’t over, but her husband was battling cancer and, Pitts said, her mortgage company told her the only way to keep a roof over his head would be to sell everything else.

Across the country in Ephrata, Washington, Kirk and Patricia Ackley sat down to close on a new mobile home, only to learn that the annual interest on their loan would be 12.5 percent rather than the 7 percent they said they had been promised. They went ahead because they had spent $11,000, most of their savings, to dig a foundation.

And near Bug Tussle, Alabama, Carol Carroll has been paying down her home for more than a decade but still owes nearly 90 percent of the sale price — and more than twice what the home is worth.

The families’ dealers and lenders went by different names — Luv Homes, Clayton Homes, Vanderbilt, 21st Mortgage. Yet the disastrous loans that threaten them with homelessness or the loss of family land stem from a single company: Clayton Homes, the nation’s biggest homebuilder, which is controlled by its second-richest man — Warren Buffett.

Buffett’s mobile home empire promises low-income Americans the dream of homeownership. But Clayton relies on predatory sales practices, exorbitant fees, and interest rates that can exceed 15 percent, trapping many buyers in loans they can’t afford and in homes that are almost impossible to sell or refinance, an investigation by The Center for Public Integrity and The Seattle Times has found. [Continue reading…]

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Steve Fraser: Mongrel firebugs and men of property

“The past is a foreign country.  They do things differently there.” So wrote British playwright Harold Pinter.  How apt that seems when one compares life in our own “second Gilded Age” to the way things were done in the original Gilded Age of a century ago.  True, there are some striking similarities between the two moments, including the rise to power of crony capitalism, the staggering growth of inequality, the exiling of democracy, and the spread of Darwinian rationales to justify and camouflage the embedding of plutocracy at the heights of our world.

What is strikingly different, however, is the way Americans of the nineteenth century reacted to all of this.  They managed to mount a kind of sustained economic, political, and cultural resistance to plutocratic rule that is simply unimaginable today.  Masses of our ancestors refused to accept that tooth-and-claw capitalism was their fate and that they should submit to it without a whimper of protest.  Instead, they imagined new, more civilized ways of living together and then took to the streets in staggering numbers and with remarkable persistence, even in the face of the armed power of corporations and the state, to make their points felt.  We can hardly say the same about our more recent past.

How did they manage that? Novelist William Faulkner viewed the past differently than Pinter. As he famously observed, “The past is not dead; it is not even past.” Those confronted by the iniquities and inequities that ran rampant in the first Gilded Age stood up to exploitation and oppression by reaching into their varied pasts. There they were able to find the moral, intellectual, and even organizational wherewithal to defy the prevailing capitalist order of things. At the same time, with a creativity that would amaze us, they looked far into alternative futures to imagine ways of escaping a fate their overlords insisted was both right and inevitable, envisioning worlds that seemed far more inviting to everyone but the plutocrats.

Today, we are faced with a double dilemma: How do we once again make Pinter’s “foreign country,” that rich world of resistance to capitalism that now seems lost in the mists of time, a familiar part of our lives? And how, in doing so, do we make what now seems, in Faulkner’s terms, so undead — all the brutishness, mayhem, inequality, and injustice that so disfigures the present — finally die? While you’re considering that, here’s a glimpse (from my new book, The Age of Acquiescence: The Life and Death of American Resistance to Organized Wealth and Power) of the two worlds of the first Gilded Age and the chasm that lay between them. Steve Fraser

Plutocracy the first time around
Revisiting the great upheaval and the first Gilded Age
By Steve Fraser

[The following passages are excerpted and slightly adapted from The Age of Acquiescence: The Life and Death of American Resistance to Organized Wealth and Power (Little, Brown and Company).]

Part 1: The Great Upheaval

What came to be known as the Great Upheaval, the movement for the eight-hour day, elicited what one historian has called “a strange enthusiasm.” The normal trade union strike is a finite event joining two parties contesting over limited, if sometimes intractable, issues. The mass strike in 1886 or before that in 1877 — all the many localized mass strikes that erupted in towns and small industrial cities after the Civil War and into the new century — was open-ended and ecumenical in reach.

[Read more…]

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Lured by marriage promises, climate victims fall into trafficking trap

Reuters reports: When the handsome young man came courting her, Sunetra could not believe her luck.

Born into a desperately poor family in India’s southern Sundarbans region – one of the parts of the world hardest hit by climate change – the lanky 18-year-old had few prospects. A flood the previous year had destroyed her home and left her family struggling financially.

A new start was what she needed, and her out-of-town suitor’s offer of marriage seemed ideal. He was content to wed without her family providing a dowry, and the pair quickly eloped.

But soon after their marriage, on a visit to Hyderabad, her new husband locked her in an apartment, in preparation for handing her to sex traffickers from Dubai. It quickly became apparent that the marriage had been a ruse.

“I had lost my face having ran away from my family, trusting this man,” she said, weeping at the betrayal of her “husband,” who she had believed was an insurance agent in Baruipur, a town about 30 km from Kolkata.

Sunetra is just one of more than 5,000 people who went missing in 2012 from the state of West Bengal, where the Sundarbans sits on a low, shifting delta where South Asia’s great rivers empty into the Bay of Bengal, crime records show.

The forested islands of the Sundarbans are increasingly considered a trafficking hotspot as climate change impacts – such as worsening cyclones, sea level rise and loss of land to erosion and saltwater – mean worsening poverty and living conditions, and more desperation. [Continue reading…]

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Silicon Valley likes to promise ‘digital socialism’ — but it is selling a fairytale

Evgeny Morozov writes: The outside world might regard Silicon Valley as a bastion of ruthless capitalism but tech entrepreneurs fashion themselves as believers in solidarity, autonomy and collaboration.

These venture humanitarians believe that they – and not the wily politicians or the vain NGOs – are the true champions of the weak and the poor, making the maligned markets deliver material benefits to those on the fringes of society. Some of the valley’s in-house intellectuals even cheer the onset of “digital socialism,” which – to quote digital thinker and environmentalist Kevin Kelly’s 2009 cover story in Wired – “can be viewed as a third way that renders irrelevant the old debates.

Leaving aside the battles over the true meaning of “sharing” in buzzwords like “the sharing economy”, one can discern an intriguing argument in all this self-congratulatory rhetoric. The magnanimous Silicon Valley really wants to be the perfect antidote to the greedy Wall Street: if the latter yields an ever greater increase in income inequality, the former helps to bridge the gap in consumption inequality. [Continue reading…]

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Silicon Valley’s fake philanthropists

Maria Bustillos reports: The Puente de la Costa Sur community center sits at the end of a quiet street in Pescadero, an isolated farming town of about 5,000 nestled amid green hills just inland from California’s Pacific Coast. It’s a beautiful, lively place to be at sunset, right before the kids will be picked up from day care.

Rita Mancero is the petite program director who assists local immigrant and migrant farm workers with learning English and preparing tax returns; the center also offers college scholarships, helps with writing resumes, getting children vaccinated, applying for citizenship, even with Zumba classes. Mancero, who holds a master’s degree in education from Universidad YMCA in Mexico City, is a Red Cross instructor certified in CPR, a paralegal, a trained tax preparer. And a ham radio operator. Her biggest priority?

“The famous ‘Education Gap,’” she says. Her affection for the children in her care is direct and immediate.

Some of the grant money that funds the Puente de la Costa Sur center comes through the Silicon Valley Community Foundation, the largest such foundation in the country. Its assets have ballooned in recent years, from just over $2.9 billion in 2012 to more than $6 billion today. But the foundation’s direct grants to Silicon Valley’s surrounding communities last year amounted to just $8 million.

There have been many news stories about the vast sums contributed to philanthropy by Silicon Valley tech tycoons. Where does this money finally wind up? The short answer is that most of it stays put. Most of that $6 billion in assets at the Silicon Valley Community Foundation isn’t under the foundation’s real control, nor should the money be understood as even remotely intended to provide direct assistance to the residents of Silicon Valley. It might not even be money: It might be real estate, or stock, as in the case of the Zuckerbergs’ recent donation of 18 million Facebook shares, then valued at $991 million, according to the Wall Street Journal.

Donations like this one are, first and foremost, a wealth management tool: Assets are parked at the designated charity in order to obtain tax breaks, and these days they generally stay under the control of the donor. That is, the donor can’t take the money back, he’s “given” it, but he can direct its granting and its investment. [Continue reading…]

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Greece’s solidarity movement: ‘it’s a whole new model — and it’s working’

The Guardian reports: “A long time ago, when I was a student,” said Olga Kesidou, sunk low in the single, somewhat clapped-out sofa of the waiting room at the Peristeri Solidarity Clinic, “I’d see myself volunteering. You know, in Africa somewhere, treating sick people in a poor developing country. I never once imagined I’d be doing it in a suburb of Athens.”

Few in Greece, even five years ago, would have imagined their recession- and austerity-ravaged country as it is now: 1.3 million people – 26% of the workforce – without a job (and most of them without benefits); wages down by 38% on 2009, pensions by 45%, GDP by a quarter; 18% of the country’s population unable to meet their food needs; 32% below the poverty line.

And just under 3.1 million people, 33% of the population, without national health insurance.

So, along with a dozen other medics including a GP, a brace of pharmacists, a paediatrician, a psychologist, an orthopaedic surgeon, a gynaecologist, a cardiologist and a dentist or two, Kesidou, an ear, nose and throat specialist, spends a day a week at this busy but cheerful clinic half an hour’s drive from central Athens, treating patients who otherwise would not get to see a doctor. Others in the group accept uninsured patients in their private surgeries.

“We couldn’t just stand by and watch so many people, whole families, being excluded from public healthcare,” Kesidou said. “In Greece now, if you’re out of work for a year you lose your social security. That’s an awful lot of people without access to what should be a basic right. If we didn’t react we couldn’t look at ourselves in the mirror. It’s solidarity.” [Continue reading…]

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If France is to build a new identity, it must address its apartheid

Francis Ghiles writes: Some French intellectuals and leading figures in the media argue that terrorism is the inevitable and extreme expression of a “true” Islam which entails the denial of the other, the imposition of strict rules in the guise of sharia law and ultimately jihad. Olivier Roy, a lucid analyst of his country’s politics, says that Muslims in France today are viewed as having Qur’anic software hardwired in their sub-conscious, which renders them incapable of assimilation into French society. Their only salvation lies in repeating their allegiance to France’s Republican values, preferably when pushed to do so on a live television show.

It is little understood, however, that the Republic’s cherished values of secularism and freedom of speech historically have a darker side. The civil liberties now idealised emerged during a period of colonial rule. As the historian Arthur Asseraf reminds us, France’s iconic freedom of the press law, passed in 1881 and still enforced today, was designed in part to exclude France’s Muslim subjects. The law protected the rights of all French citizens, explicitly all those in Algeria and the colonies, but excluded the subjects who were the majority of the population. In colonial Algeria, “citizens” were all those who were not Muslims, and the terms musulman or indigène usually overlapped. Muslim was a racialised legal category stripped of any religious significance.

Maybe the banlieues of today could be best understood as the Algeria of the 19th century: the legacy of French apartheid must be borne in mind when considering the problems of minorities. In the starkest indictment ever of French society by a senior government official, Valls said on Wednesday that “a geographic, social, ethnic apartheid has developed in our country”. The furious reaction to his remark hardly augurs well for a reasoned debate. Yet, in the banlieues of Paris, more than 50% of young people, often Muslim, are unemployed. They are hitting the glass wall between them and the workplace; prisoners with a north African father outnumber prisoners with a French father by nine to one for the 18-29 age group, and six to one in the 20-39 age group. This points to a massive failure of French society to integrate minority groups. [Continue reading…]

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French PM says ‘apartheid’ is leaving minorities on the fringe

The New York Times reports: Prime Minister Manuel Valls of France on Tuesday cited a deep divide in the country, likening it to a state of “territorial, social, ethnic apartheid” that has left part of the population on the cultural fringe.

Mr. Valls, often regarded as the most popular politician in the leftist government of President François Hollande, has been known for his outspokenness and tough stance on radical Islam. A day after the end of the attacks in the Paris area that left 17 people dead at the hands of three Muslim extremists from France, Mr. Valls spoke of waging a war “against terrorism, against jihadism, against radical Islam, against everything that is aimed at breaking fraternity, freedom, solidarity.”

But during a traditional New Year’s speech on Tuesday, Mr. Valls acknowledged that France had a deeply rooted problem that, he implied, had resulted in a divided society.

“These last few days have emphasized many of the evils which have undermined our country from within, or challenges we have to face,” he said. “To that, we must add all the divisions, the tensions that have been brewing for too long and that we mention sporadically.”

“A territorial, social, ethnic apartheid has spread across our country,” he said.

Mr. Valls avoided singling out Muslims, but it was clear that his remarks were a response to the terrorist attacks this month and addressed growing concerns about the situation of “two Frances” that, he said, has relegated the poor and heavily immigrant population to ghetto-like suburbs of Paris, where many Muslims from North African backgrounds live. [Continue reading…]

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Inequality among women is rising much faster than inequality among men

Alison Wolf writes: Feminist cries for action have seen a resurgence of late, notably in calls for quotas on company boards. Large numbers of very successful women feel that life is profoundly sexist and unfair. Feminism has always and inevitably been driven by the educated and well-connected, but today’s feminists are also obsessed with their own elite, metropolitan lives. This is deeply depressing. It is also having a pernicious effect on politicians and policy-making.

Take the 30% Club – the campaign for at least 30% of board members in large public companies to be female. This has attracted huge publicity and traction. Top women campaign for it, politicians line up to sing the importance of such “diversity”. It is received wisdom that this policy is good for women in general, and important to them – and also good for the benighted companies themselves.

This is simplistic, and it is nonsense. A number of countries have introduced quotas for large public companies; but only one, to date, has enacted major sanctions for miscreants, and has a good many years’ experience with quotas. That is Norway, where 40% representation is required and enforced.

And the result? The policy has done nothing whatsoever for the female labour market generally. It has had no impact on female pay and promotion prospects in the companies concerned. It has had no positive impact on company profits either: replacing privileged men with privileged women doesn’t seem to pay any “diversity” benefits. [Continue reading…]

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Richest 1% soon to own 50% of global wealth

The New York Times reports: The richest 1 percent are likely to control more than half of the globe’s total wealth by next year, the charity Oxfam reported in a study released on Monday. The warning about deepening global inequality comes just as the world’s business elite prepare to meet this week at the annual World Economic Forum in Davos, Switzerland.

The 80 wealthiest people in the world altogether own $1.9 trillion, the report found, nearly the same amount shared by the 3.5 billion people who occupy the bottom half of the world’s income scale. (Last year, it took 85 billionaires to equal that figure.) And the richest 1 percent of the population, who number in the millions, control nearly half of the world’s total wealth, a share that is also increasing.

The type of inequality that currently characterizes the world’s economies is unlike anything seen in recent years, the report explained. “Between 2002 and 2010 the total wealth of the poorest half of the world in current U.S. dollars had been increasing more or less at the same rate as that of billionaires,” it said. “However since 2010, it has been decreasing over that time.”

Winnie Byanyima, the charity’s executive director, noted in a statement that more than a billion people lived on less than $1.25 a day.

“Do we really want to live in a world where the 1 percent own more than the rest of us combined?” Ms. Byanyima said. “The scale of global inequality is quite simply staggering.” [Continue reading…]

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2014: A year of feminist insurrection against male violence

“We don’t see things as they are, we see things as we are.” [Source]

Rebecca Solnit writes:

I have been waiting all my life for what 2014 has brought. It has been a year of feminist insurrection against male violence: a year of mounting refusal to be silent, refusal to let our lives and torments be erased or dismissed. It has not been a harmonious time, but harmony is often purchased by suppressing those with something to say. It was loud, discordant, and maybe transformative, because important things were said – not necessarily new, but said more emphatically, by more of us, and heard as never before.

It was a watershed year for women, and for feminism, as we refused to accept the pandemic of violence against women – the rape, the murder, the beatings, the harassment on the streets and the threats online.

Further into her essay, Solnit says:

Sometimes at big political demonstrations – against the war in Iraq in early 2003, for example – the thousands of placards with handwritten statements, jokes, and facts, for all their brevity, constitute a cumulative critique that covers a lot of angles. Social media can do the same, building arguments comment by comment, challenging, testing, reinforcing and circulating the longer arguments in blogs, essays and reports. It’s like a barn-building for ideas: innumerable people bring their experiences, insights, analysis, new terms and frameworks. These then become part of the fabric of everyday life, and when that happens, the world has changed. Then, down the road, what was once a radical idea becomes so woven into everyday life that people imagine that it is self-evident and what everyone always knew. But it’s not; it’s the result of a struggle – of ideas and voices, not of violence.

Strangely, in a piece that runs close to 5,000 words, the women who have been the targets of ISIS’s violence and the women who have been fighting against ISIS earned not a single mention.

Silence leaves a vacuum that can only be filled with speculation, but the reason for this omission seems to be spelt out in the terms by which Solnit describes effective political activism: it is defined by the absence of violence.

But did this Yazidi girl betray feminism by picking up an AK-47?


Since the battle for Kobane began and due to its convenient location right next to the Turkish border gained several weeks of intense international media attention — the battle continues but the media has mostly lost interest — the heroism of Kurdish women has been highlighted.

Zîlan Diyar, a Kurdish guerrilla fighter, wrote last month:

The whole world is talking about us, Kurdish women. It has become a common phenomenon to come across news about women fighters in magazines, papers, and news outlets. Televisions, news sites, and social media are filled with words of praise. They take photos of these women’s determined, hopeful, and radiant glances. To them, our rooted tradition is a reality that they only recently started to know. They are impressed with everything. The women’s laughter, naturalness, long braids, and the details of their young lives feel like hands extending to those struggling in the waters of despair. There are even some, who are so inspired by the clothes that the women are wearing, that they want to start a new fashion trend! They are amazed by these women, who fight against the men that want to paint the colors of the Middle East black, and wonder where they get their courage from, how they can laugh so sincerely. And I wonder about them. I am surprised at how they noticed us so late, at how they never knew about us. I wonder how they were so late to hear the voices of the many valiant women who expanded the borders of courage, belief, patience, hope, and beauty.

The fact that Solnit is not talking about Kurdish women, seems to imply that for her and perhaps many other activists in the West, the use of violence can never be defended.

If this interpretation is correct, this dedication to the principle of non-violence seems to me less a matter of principle than a luxury only available to those whose own lives are not under immediate threat.

I also have to wonder whether those who have chosen to ignore the Kurds, failed to notice that in Rojava — the Kurdish-controlled part of Syria — a political experiment has been underway for the last three years that deserves the interest and support of anyone who believes in the creation of an egalitarian and truly democratic society.

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Greece’s Syriza can transform the EU from within – if Europe will let it

Costas Lapavitsas writes: The Greek parliament has failed to elect a new president and the country’s constitution dictates that there should now be parliamentary elections. These will be critical for Greece and also important for Europe. A victory for Syriza, the main leftwing party, would offer hope that Europe might, at last, begin to move away from austerity policies. But there are also grave risks for Greece and the European left.

The rise of Syriza is a result of the adjustment programme imposed on Greece in 2010. The troika of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) provided huge bailout loans, with the cost of unprecedented cuts in public expenditure, tax increases and a collapse in wages. It was a standard, if extreme, austerity package, with one vital difference: austerity could not be softened by devaluing the currency as, for instance, had happened in the Asian crisis of 1997-98. Greek membership of the euro had closed all escape routes.

Brutal austerity succeeded in stabilising Greece and keeping it in the economic and monetary union by destroying its economy and society. The budget deficit has been drastically reduced, the current account deficit has turned into a surplus and the prospect of default on foreign debt has receded. But GDP has contracted by 25%, unemployment has shot above 25%, real wages have fallen by 30% and industrial output has declined by 35%. The human cost has been immeasurable, amounting to a silent humanitarian crisis. Homelessness has rocketed, primary healthcare has collapsed, soup kitchens have multiplied and child mortality has increased. [Continue reading…]

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Apple ‘failing to protect Chinese factory workers’

BBC News reports: Poor treatment of workers in Chinese factories which make Apple products has been discovered by an undercover BBC Panorama investigation.

Filming on an iPhone 6 production line showed Apple’s promises to protect workers were routinely broken.

It found standards on workers’ hours, ID cards, dormitories, work meetings and juvenile workers were being breached at the Pegatron factories.

Apple said it strongly disagreed with the programme’s conclusions.

Exhausted workers were filmed falling asleep on their 12-hour shifts at the Pegatron factories on the outskirts of Shanghai.

One undercover reporter, working in a factory making parts for Apple computers, had to work 18 days in a row despite repeated requests for a day off. [Continue reading…]

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The engine of the Uber economy: inequality

Leo Mirani writes: Of the many attractions offered by my hometown, a west coast peninsula famed for its deep natural harbor, perhaps the most striking is that you never have to leave the house. With nothing more technologically advanced than a phone, you can arrange to have delivered to your doorstep, often in less than an hour, takeaway food, your weekly groceries, alcohol, cigarettes, drugs (over-the-counter, prescription, proscribed), books, newspapers, a dozen eggs, half a dozen eggs, a single egg. I once had a single bottle of Coke sent to my home at the same price I would have paid had I gone to shop myself.

The same goes for services. When I lived there, a man came around every morning to collect my clothes and bring them back crisply ironed the next day; he would have washed them, too, but I had a washing machine.

These luxuries are not new. I took advantage of them long before Uber became a verb, before the world saw the first iPhone in 2007, even before the first submarine fibre-optic cable landed on our shores in 1997. In my hometown of Mumbai, we have had many of these conveniences for at least as long as we have had landlines—and some even earlier than that.

It did not take technology to spur the on-demand economy. It took masses of poor people.

In San Francisco, another peninsular city on another west coast on the other side of the world, a similar revolution of convenience is underway, spurred by the unstoppable rise of Uber, the on-demand taxi service, which went from offering services in 60 cities around the world at the end of last year to more than 200 today.

Uber’s success has sparked a revolution, covered in great detail this summer by Re/code, a tech blog, which ran a special series about “the new instant gratification economy.” As Re/code pointed out, after Uber showed how it’s done, nearly every pitch made by starry-eyed technologists “in Silicon Valley seemed to morph overnight into an ‘Uber for X’ startup.”

Various companies are described now as “Uber for massages,” “Uber for alcohol,” and “Uber for laundry and dry cleaning,” among many, many other things (“Uber for city permits”). So profound has been their cultural influence in 2014, one man wrote a poem about them for Quartz. (Nobody has yet written a poem dedicated to the other big cultural touchstone of 2014 for the business and economics crowd, French economist Thomas Piketty’s smash hit, Capital in the Twenty-First Century.)

The conventional narrative is this: enabled by smartphones, with their GPS chips and internet connections, enterprising young businesses are using technology to connect a vast market willing to pay for convenience with small businesses or people seeking flexible work.

This narrative ignores another vital ingredient, without which this new economy would fall apart: inequality. [Continue reading…]

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